Quantamental Investing to beat Benchmarks

A. Stotz Investment Research

We pick stocks. We construct portfolios. All our effort is focused on how to better pick stocks and construct portfolios. We serve fund management companies, family offices, and high net worth individuals.

CEO, A. Stotz Investment Research

Dr. Andrew Stotz, CFA

Equity Bottom-Up

<ul><li>Good price momentum and earnings on an upcycle trend relative to its sector</li><li>NESZ sales should keep growing with better consumer sentiment and higher disposable income in Malaysia, up by 4% YoY in 2017</li><li>E-commerce trend should keep boosting NESZ’s sales through Lazada, Shoppee and 11street. While still at low contribution to total sales, e-commerce sales grew by 300% in 2017</li><li>Trades at premium PB to ASEAN sector but delivers above 100% in ROE</li><li>Risks: Intense competition and higher-than-expected commodity prices</li></ul><p><em>* Consensus Estimates</em></p>

Good price momentum and earnings on an upcycle trend relative to its sectorNESZ sales should keep growing with better consumer sentiment and higher disposable income in Malaysia, up by 4% YoY in 2017E-commerce trend should keep boosting NESZ’s sales through Lazada, Shoppee and 11street. While still at low contribution to total sales, e-commerce sales grew by 300% in 2017Trades at premium PB to ASEAN sector but delivers above 100% in ROERisks: Intense competition and higher-than-expected commodity prices* Consensus Estimates

NESZ: 100% ROE in Malaysian Consumer Staples

Nestle (Malaysia)

NESZ: 100% ROE in Malaysian Consumer Staples