Director, Pearl Hill Advisors

Nicholas Tanner

Director

Pearl Hill Advisors

Equity Bottom-Up

<p>The business is maturing and becoming less exposed to market volatility. Its securities business is becoming of less importance to the financial division as insurance and banking profits grow. This trend will continue. Asset management profit volatility has been reduced by the adoption of IFRS accounting as investments (half of which are its own) are valued at market quarterly, and the SBI Savings Bank in Korea (at some stage to be sold) is now seeing good profits growth. Even its bio business…</p>

The business is maturing and becoming less exposed to market volatility. Its securities business is becoming of less importance to the financial division as insurance and banking profits grow. This trend will continue. Asset management profit volatility has been reduced by the adoption of IFRS accounting as investments (half of which are its own) are valued at market quarterly, and the SBI Savings Bank in Korea (at some stage to be sold) is now seeing good profits growth. Even its bio business…

SBI Holdings (8473), Too Cheap in Our View and with Good Growth Prospects