CFA INSTITUTE RESEARCH CHALLENGE IN SOUTHERN CALIFORNIA HOSTED

CFA INSTITUTE RESEARCH CHALLENGE IN SOUTHERN CALIFORNIA HOSTED BY THE CFA SOCIETIES OF LOS ANGELES AND ORANGE COUNTY KICKOFF MEETING – 4 NOVEMBER 2013 Nathaniel Downes, CFA Associate Portfolio Manager Jitendra Motwani, CFA Senior Associate Chad Noorani Retirement Plan Consultant

CFA SOCIETIES OF LOS ANGELES & ORANGE COUNTY 2

SPONSOR ACKNOWLEDGMENT We would like to offer a special thank you to our sponsors for the 2013 -2014 CFA Institute Research Challenge in Southern California 3

2013 GLOBAL CHAMPIONS Wrocław University of Economics representing the CFA Society Poland 4

WHAT IS THE CFA INSTITUTE RESEARCH CHALLENGE? • How is it organized? - Worldwide intercollegiate competition between teams of students - Organized by local CFA Institute volunteers – usually through CFA member societies - At least 4 teams of 3 -5 students participate • What does it involve? - Analysis of a publicly-traded company - Interviews with company management - Mentoring by a CFA charterholder - Research report writing - Presentation of research 5

2013 RESEARCH CHALLENGE NETWORK 6

2013 TOURNAMENT DIAGRAM Global Final AP Regional EMEA Regional Americas Regional ~20 Teams ~25 Teams ~48 Teams 90+ LOCAL LEVEL CHALLENGES 7

BENEFITS FOR STUDENTS • Best practices in research and report writing • Real-life learning experience as an Equity Analyst • Access and exposure to leading industry professionals • Professional report and experience to use on resume/CV and job interviews • Experience presenting to top financial professionals • Individual and team prizes • Opportunity for travel • Potential for media exposure • Network of over 10, 000 students and 2, 200 volunteers worldwide 8

GLOBAL NETWORK OF THE WORLD’S TOP BUSINESS AND FINANCE STUDENTS 9

PARTICIPATING TEAMS (CFALA) University Faculty Advisor California Polytechnic State, San Luis Obispo Cyrus Ramezani, Ph. D Pepperdine University Edward Fredericks, Ph. D CSU, Los Angeles James Refalo, Ph. D UCLA Anderson School of Management TBD Drucker School of Management, CGU TBD USC Marshall School of Business Suh-Pyng Ku, Ph. D Loyola Marymount University Chun Lee, Ph. D 10

PARTICIPATING TEAMS (CFAOC) University Faculty Advisor California Polytechnic, Pomona Majed Muhtaseb, CFA California State University, Long Beach Peter Ammermann, Ph. D Chapman University Fadel Lawandy Claremont Mc. Kenna College Eric Hughson University of California, Irvine Todd Richey, CFA 11

COMPETITION TIMELINE Today Kick-Off TBD (Nov. /Dec. ) Company Presentation 24 January 2013 Register with CFA Institute N/A* 1 st Draft Due to Mentor 31 January 2014 Final Report Due 21 February 2014 Local Final Presentations 18 -19 March 2014 Regional Final (Denver, CO) 25 April 2014 Global Final (Bangkok, Thailand) *This date is at the discretion of both the team and mentor. 12

RULES OVERVIEW • Each team consists of 3 -5 students (undergraduate or graduate) • Mentors and faculty may NOT contact the company • Only one team may represent each university • Mentors, faculty, and subject company may NOT provide material non-public information • Students must be enrolled in the university they represent and registered for at least a part-time course load at the time of the kickoff meeting • Reports and presentations must be the students’ original work • Students may not have contact with the subject company outside of organized events • Students may not enlist the help of any professionals other than the mentor or faculty advisor • Written reports must conform to the guidelines set forth by CFA Institute and include the cover and back pages provided by CFA Institute • Teams may not use props in their oral presentations • Students, mentors, and faculty must all agree to abide by the CFA Institute Code of Ethics and Standards of Professional Conduct 13

ADVISOR AND MENTOR INVOLVEMENT Faculty Advisor Industry Mentor • Insight and guidance on research methods and tools as taught in academia • Insight and guidance on industry practice • 10 hours maximum of productive time • Face to face or virtual • Access to faculty for other projects unrelated to the Research Challenge is permitted • All work must be the original work of the students • 6 hours maximum of productive time • Company management question development • Review first draft of research report • Presentation development assistance 14

ETHICS RESOURCES • Ethical Standards for Investment Professionals: An Interactive Case. Based Course • Ethics Course Module 2: Standard II —Integrity of Capital Markets • Ethics Course Module 3: Standard III —Duties to Clients • Ethics Course Module 6: Standard VI—Conflicts of Interest • Ethics Course Module 7: Standard VII—Responsibilities as a CFA Institute Member or CFA Candidate 15

SAMPLE REPORT 16

REPORT SCORING 17

PRESENTATION SCORING 18

SUBJECT COMPANY : MATTEL INC TICKER: MAT Mattel, Inc. , together with its subsidiaries, designs, manufactures, and markets various toy products. The company operates in three segments: North America, International, and American Girl. Its products comprise fashion dolls and accessories, vehicles and play sets, and games and puzzles. The company also publishes advice and activity books, as well as magazines. It offers its products under the Mattel Girls and Boys brands, including Barbie, Polly Pocket, Little Mommy, Disney Classics, Monster High, Hot Wheels, Matchbox, Tyco R/C, CARS, Radica, Toy Story, Max Steel, WWE Wrestling, Batman, and Superman; Fisher-Price brands comprising Fisher-Price, Little People, Baby. Gear, Imaginext, Dora the Explorer, Go Diego Go!, Bubble Guppies, Thomas & Friends, Mike The Knight, Octonauts, Mickey Mouse Clubhouse, Disney � s Jake and the Never Land Pirates, See � N Say, and Power Wheels; and American Girl Brands, such as My American Girl, Bitty Baby, Mc. Kenna, and the newest Girl of the Year. The company sells its American Girl products directly to consumers through catalog, Website, and proprietary retail stores in the United States and Canada. Mattel sells its other products directly to retailers, including discount and free-standing toy stores, chain stores, department stores, and other retail outlets; to wholesalers; and through agents and distributors worldwide. The company was founded in 1945 and is headquartered in El Segundo, California. 19

SUBJECT COMPANY (CFAOC) Reed’s, Inc. (NYSE: REED) makes the top-selling natural sodas in the natural foods industry sold in over 13, 000 natural food markets and supermarkets nationwide. Its six award-winning non-alcoholic Ginger Brews are unique in the beverage industry, being brewed, not manufactured and using fresh ginger, spices and fruits in a brewing process that predates commercial soft drinks. The Company owns the top-selling root beer line in natural foods, the Virgil’s Root Beer product line, and a top-selling cola line in natural foods, the China Cola product line. In 2012, the Company launched Reed’s Culture Club Kombucha line of organic live beverages. Other product lines include: Reed’s Ginger Candies and Reed’s Ginger Ice Creams. In 2009, Reed’s started producing private label natural beverages for select national chains. Reed’s products are sold through specialty gourmet and natural food stores, mainstream supermarket chains, retail stores and restaurants nationwide, and in Canada, as well as through private label relationships with major supermarket chains. Website: http: //www. reedsinc. com Founded: 1987 Total Worldwide Employees: Approx. 61 Chairman and CEO: Christopher J. Reed 20

WHERE TO BEGIN • Visit the CFA Institute Research Challenge website: www. cfainstitute. org/researchchallenge • Register for the competition - Peruse educational materials selected specifically for participants - Watch videos of past presentations - View past reports from winning teams • Students MUST register on the CFA Institute website using the registration form provided by the local host. 21

QUESTIONS? 22

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