2011 Global Champions Politecnico di Milano – Milan, Italy

3. 2011 Global ChampionsPolitecnicodi Milano – Milan, Italy

4. What is the CFA Institute Research Challenge? • Worldwide intercollegiate competition between teams of students • Organized by local CFA societies • Analysis of a publicly traded company • Interview company management • Mentoring by a CFA charterholder • Research report writing • Presentation of research

5. 2011 Research Challenge Network • 2500 Students • 546 Universities • 1200 Industry Volunteers • 102 Local CFA Societies

6. 2012 Tournament Diagram Global Finals EMEA Regional 25 Teams • New York • Regional • 20 Teams Asia-Pacific Regional 19 Teams Americas Regional 47 Teams 91 LOCAL LEVEL CHALLENGES

7. 2011 Tournament Results

8. Benefits for Students • Learn best practices in research and report writing • Real-life learning experience as a Sell-Side Equity Analyst • Gain access and exposure to leading industry professionals • Professional report and experience can be featured on resume/CV and on job interviews • Experience presenting to top financial professionals • Individual and team prizes • Opportunity for travel (all expenses paid) • Potential for media exposure • Join a network of over 5000 students & 2000 volunteers worldwide

9. Participating Teams

10. Timeline

11. Teams of 3-5 students Only 1 team per University Enrolled in school at time of kick off meeting Original work of students No contact with company outside of organized events No purchased or professional research reports may be used Rules Overview • Mentors and faculty may NOT contact the company • Mentors and faculty may NOT provide inside information or company reports • Students, Mentors,and Faculty all agree to the CFA Institute Code of Ethics and Standards of Professional Conduct

12. Insight and guidance on research methods and tools as taught in academia 10 hours of productive time maximum Access to faculty for other projects unrelated to the Research Challenge is permitted All work must be the original work of the students Insight and guidance on industry practice 6 hours of productive time maximum prior to Written Report Face to face or virtual Company management question development Review first draft of research report Presentation development assistance Advisor and Mentor Involvement • Faculty Advisor • Industry Mentor

13. Ethical Standards for Investment Professionals: An Interactive Case-Based Course Online Ethics Case Study

14. Sample Report

15. Section Investment Summary Valuation Business Description Other Headings Industry Overview & Competitive Positioning Financial Analysis Investment Risks Total Report Scoring • Maximum 20 20 5 5 15 20 15 100

16. Section Argument Questions Financial, Valuation & other Analysis Team Involvement Poise Materials Total Presentation Scoring Maximum 25 25 20 15 10 5 100

17. Subject Company • Garmin - Creates navigation and communication devices for the automotive, aviation, marine, fitness, outdoor recreation, and wireless applications industries • IR Packet, Company Presentation, Follow-Up Conference Call for Questions • MANY MANY THANKS to Garmin Management!

18. Designated Officers ONLY Organized Meetings ONLY Industry Mentor or Faculty Advisor must be present for ALL student-Garmin interactions Students may contact company suppliers, customers, vendors, etc. Interacting with Garmin

19. Comments from 2011 Challenge • Teams not meeting deadlines subject to elimination • Must not change any formatting on the Written Report (including size, font and colors) • Grammar, sentence structure , word use & argument logic are important • Look at Written Report, Presentation & Video of 2011 Winner • Level of competition is high • Univ of Wisconsin research example • Sensitivity analysis and slides to support (hyperlinked slides) • Support for your thesis • Don’t simply trend forecasts – revenue & expense drivers • Identify risks to investment thesis • Presentation skills must be polished and practiced • Clarify questions being asked if unclear

20. Additional Resources Available www.researchchallenge.org/Pages/educationalresources.aspx

21. Additional Resources Available www.researchchallenge.org/Pages/educationalresources.aspx

22. Additional Resources Available www.researchchallenge.org/Pages/educationalresources.aspx Multimedia Resources

23. Questions

24. CFA Institute Research Challenge Team Brian Stype – Manager Amanda Quinn – Program Coordinator Amy Strunk – Administrator • www.researchchallenge.org • email: researchchallenge@cfainstitute.org

25. James A Reed II, JD, CFA Lead Portfolio Manager & Senior Vice President Scout Investments • Over 19 years of investment experience • Three years as a private attorney • Has been a security analyst, portfolio manager and director of research • Bachelor’s – Dartmouth College • Law Degree – Washington & Lee University

26. Logic & Sentence Structure Logic must be sound: Statement used to support a hold rating: “Although there are many concerns with Great Plains, the company still maintains strong prospects for the future.” Use proper sentence structure: “Overall, we think market has overstated regulatory and environmental risks and undervalued GSP’s stock price. We believe it is irrational to trade GXP’s stock below its book value, which is significantly lower than its historical book value. Go Back

27. Word Use & Grammar Proper use of words is important: “In the coming years, federal litigation will set out to enforce the reduction of carbon emissions among fossil fuel burning facilities.” Poor grammar distracts the reader: “Thus, the Gordon growth model gave us a negative valuation, which is practically not feasible. “ Go Back