PROPRIETARY RESEARCH MARKET COMMENTARY REPORTING ANALYST: Amitesh Kumar June 11, 2010 amitesh.kumar@thomsonreuters.com Volume VI Issue 12 EARNINGS THOMSON REUTERS IBES ESTIMATES SHOW HEALTHY GROWTH IN Q2 2010 AFTER A ROBUST Q1 (SEE ALSO: APPENDIX, EXHIBITS 11-13) The Q1 2010 blended earnings growth rate (combines actual results for companies that have reported and estimates for companies yet to report) for the Dow Jones STOXX 600 Index once again slightly improved, to 56.0% from 55.7% two weeks ago. The estimated growth rate was 42.7% on March 31, 2009. Improvement over the last fortnight can be attributed to better-than-expected earnings results in Basic Materials. Actual earnings growth in Basic Materials improved to 693% from 652% in the previous fortnight. Consumer Goods (3,939%), Basic Materials (539%), and Technology (213%) continue to lead the growth rates in blended earnings. Financials and Industrials are each also showing substantial growth, at 125% and 67%, respectively. The actual earnings growth rate for Q1 2010 slightly declined to 37.1% from 37.3%, based on 288 companies actual results. The decline in actual earnings from last fortnight is attributed to a slight decline in Consumer Services and Industrials. The actual growth rates for these sectors are down to 35.3% and 15.6% from 45.3% and 15.8%, respectively, from the previous fortnight. Through June 11, 2010, 288 companies in the DJ STOXX 600 have reported Q1 2010 earnings. Of these, 65.5% reported earnings above analyst expectations, 1% reported in line with expectations, and 33.5% reported below expectations. Overall, Q1 2010 reported earnings thus far beat estimates by 9.5% compared to 9.4% two weeks ago. The estimated growth rate for Q2 2010 earnings continued to improve, and once again advanced, to 44.2% from 43.5% two weeks ago. The improvement could mainly be attributed to higher expected growth in Consumer services, which rose to 16% from 8% for the previous fortnight. Financials is expected to lead with an improved estimated earnings growth rate, at 120% from the previous fortnight s 124%, followed by Consumer Goods, at 56%, down from 57%. Technology and Oil & Gas are expected to record robust growth of 90% and 42%, respectively. The expected earnings for Basic Materials also slipped to 102% from 105% in the previous fortnight. Utilities continue to be the weakest sector, with an 8% fall. The outlook for full-year 2010 DJ STOXX 600 earnings growth slipped, for the first time since the beginning of Q2 2010, to 33.5% from the 34.2% forecasted two weeks ago, while 2011 is expected to see 20.5% growth, slightly down from 20.9%. Basic Materials, Financials, Technology and Consumer Goods are expected to drive the 2010 growth rate, with anticipated earnings growth rates of 79%, 75%, 54% and 55%, respectively. ECONOMICS ECB AND BOE TO KEEP HANDS TIGHT, THOUGH PUT A WATCH ON INFLATION DYNAMICS The incoming data continues to suggest that the recovery is progressing at a tepid pace. However, the concerns have been over the growth outlook and the risks of a double-dip recession globally. For the Eurozone, these risks manifest themselves via the fiscal austerity that many Eurozone nations are being asked to deliver. As the fiscal stimulus reverses, and the European Central Bank (ECB) looks to shorten the duration of its liquidity operations, the risks are certainly real. We do not look for the ECB to be in a position to hike interest rates at least until Q1 2012. The double-dip risks are greater for the UK, as the growth there has been bumping along the bottom. Delivering fiscal austerity, and plans for more are a real threat to the recovery. As with the ECB, the Bank of England (BoE) is not expected to hike rates until Q1 2012, but we would keep an eye on inflation dynamics and the risks to inflation expectations as these may force the BoE's hand and deliver early tightening. We do not see UK inflation below 3.0% this year. Europe Market Commentary, published fortnightly, recaps and reviews recent European economic and financial markets action. It compiles the latest data and cross-content insights of Thomson Reuters market experts, highlighting key activity of the previous two weeks, and previewing noteworthy developments for the coming fortnight for corporate earnings estimates, economic data, fixed income analysis, M&A, private equity, director dealings, market valuation metrics, and more. Thomson Reuters Datastream, ThomsonONE.com Investment Banking, Thomson ONE Analytics, and Thomson Reuters StreetEvents are used to create the tables. View all Thomson Reuters Proprietary Research subscription channels. 2010 Thomson Reuters. All marks herein are used under license.
Exhibit 1. Key Forthcoming European (EUR) Economic Releases Date Region Releases Unit Period IFR Est. Previous Estimate Median Jun 14 EUR Ind Prod y/y % Apr -- 6.9 -- Jun 15 EUR Employment y/y % Q1 -- -2.0 -- Jun 15 EUR Foreign Trade b Apr -- 4.5 -- Jun 15 GER ZEW Current Idx Jun -- -21.6 -- Jun 15 GER ZEW index Idx Jun -- 45.8 -- Jun 16 EUR HICP x f&e y/y % May -- 0.7 -- Jun 16 EUR HICP final y/y % May -- 1.6 -- Jun 16 EUR Labour cost y/y % Q1 -- 2.2 -- Jun 16 EUR Wages % Q1 -- 2.0 -- Jun 18 GBP Money Supply % May -- 0.0 -- Jun 14 EUR Ind Prod y/y % Apr -- 6.9 -- Jun 15 EUR Employment y/y % Q1 -- -2.0 -- Source: Thomson Reuters IFR Markets. BONDS EUROPEAN GOVERNMENT BONDS COME OFF THE ROPES, THOUGH CONFIDENCE REMAINS FRAGILE European government bonds remain beholden to the tone in risk markets which have come off the ropes in recent sessions, but, despite this, confidence remains fragile. Deep-rooted concerns over the health of both sovereigns and also the financial sector are yet to be put to bed, and while this remains the case, safe havens such as bunds are likely to retain an underlying bid. Levels are extremely elevated, however, with 10-year yields dipping as low as 2.50% this week, and therefore are vulnerable to a setback on any improvement in risk tone. Two-year yields are essentially stuck in a range, pivoting around 0.5%, which suggests a top is forming. Exhibit 2. Europe Debt Issuance (YTD Issuance) Year Proceeds Amount ($M) Total Issuance 2005 $1,147,267 2,399 2006 1,407,274 2,410 2007 1,603,048 2,778 2008 1,039,219 1,709 2009 1,236,197 1,434 2010 991,070 1,677 Source: ThomsonONE.com Investment Banking. MERGERS & ACQUISITIONS EUROPEAN DEALS ACTIVITY SHOWS DECENT 47% GROWTH FROM PREVIOUS YEAR In the largest deal of the fortnight, Austria s Raiffeisen International Bank acquired stakes in Cembra Beteiligungs GmbH, an Austrian holding company, for $1.8B. European deals proceeds quarter-to-date in Q2 2010, managed to grow a healthy 35.2% from the same span in the previous quarter, despite a lower number of deals. Year-over-year deal activity recorded significant growth of around 46.7% quarter-to-date in Q2 2010. The year-to-date M&A proceeds, however, are $194B, down around 20% from 2009, and the lowest for this period in the last five years. 2010 Thomson Reuters. All marks herein are used under license. TRPR_83800_16 2
Exhibit 3. Quarterly Deal Values, All European Involvement Quarter Total Deal Value ($M) Through quarter s 11 TH week Total Deal Numbers Through quarter s 11 TH week Total Deal Value ($M) For quarter Total Deal Numbers For quarter Q2 2010 $89,399 2,521 $89,399 2,521 Q1 2010 66,103 2,571 104,242 3,319 Q4 2009 112,867 2,780 142,978 3,764 Q3 2009 121,389 2,604 152,296 3,285 Q2 2009 60,922 2,612 113,675 3,386 Source: ThomsonONE.com Investment Banking. Exhibit 4. Annual Deal Values, All European Involvement Year Total Annual Deal Value, YTD ($M) Total Deal Numbers, YTD Total Annual Deal Value ($M) Total Annual Deal Numbers 2010 $193,641 5,840 $193,641 5,840 2009 242,239 5,942 590,265 13,765 2008 516,064 6,126 1,171,403 13,909 2007 833,914 6,675 1,595,529 14,759 2006 562,272 5,332 1,324,143 12,769 Source: ThomsonONE.com Investment Banking. THOMSON REUTERS MARKET MODEL A slight increase in the DJ STOXX 600 price level and the 12-month forward earnings was offset by a slight drop in the 10-year Treasury rate, resulting in the Thomson Reuters Market Model Risk Premium staying at 13.9%, the same as the previous fortnight. The United Kingdom and Germany saw a drop of 0.1 ppt in the Thomson Reuters Market Model Risk Premium, a gauge of investors risk perception and required rate of return to invest in the market, while the model rose 0.1 ppt for France. This is the first time when the market premium saw almost a halt in upward movement since the debt problem in Europe caught the attention of the market in March 2010. Exhibit 5. Equity Risk Premiums Index Current Historical Average Historical Low Historical High STOXX 600 13.9% 11.0% (Since 1999) 5.8% (Jan 20, 2000) 16.6% (Oct 17, 2008) FTSE 100 14.0% 9.3% (Since 1987) 4.4% (Aug 20, 1987) 17.8% (Oct 17, 2008) CAC 40 14.2% 9.8% (Since 1988) 5.0% (Feb 17, 2000) 17.2% (Oct 17, 2008) DAX 30 13.3% 10.0% (Since 1991) 4.9% (Jan 20, 2000) 17.6% (Oct 17, 2008) Source: Thomson Reuters. 20.0% THOMSON REUTERS MARKET MODEL - DJ STOXX 600 16.0% 12.0% 8.0% 4.0% 0.0% Nov-99 May-00 Nov-00 May-01 Nov-01 May-02 Nov-02 May-03 Nov-03 May-04 Nov-04 May-05 Nov-05 May-06 Nov-06 May-07 Nov-07 May-08 Nov-08 May-09 Nov-09 May-10 2010 Thomson Reuters. All marks herein are used under license. TRPR_83800_16 3
APPENDIX EXHIBITS 6-16 Exhibit 6. DJ STOXX 600 Market Valuation Metrics 5 Exhibit 7. Major European Indices Key Market Valuation Metrics 5 Exhibit 8. Major National Indices Closing Values 5 Exhibit 9. Key Country Economic Data 6 Exhibit 10. Currency Exchange Matrix 6 Exhibit 11. DJ STOXX 600 Blended Earnings Summary Current Quarter 7 Exhibit 12. DJ STOXX 600 Next-Quarter Estimated Earnings Growth 7 Exhibit 13. DJ STOXX 600 Blended Earnings Growth Current and Next Calendar Years 7 Exhibit 14. DJ STOXX 600 Country-Based Earnings Current and Next Calendar Years 8 Exhibit 15. Europe Blended Earnings Growth Current and Next Calendar Years 8 Exhibit 16. Major Upcoming Earnings Releases 9 Data Tables Methodology 12 2010 Thomson Reuters. All marks herein are used under license. TRPR_83800_16 4
Exhibit 6. DJ STOXX 600 Market Valuation Metrics Industry Earnings Weight Price Weight Current Dividend Yield EPS Growth LTG Forward- 12M P/E PEG YTD Price Change 2009 Price Change Basic Materials 6% 9% 2.3% 13% 10 0.8-1.3% 71.4% Consumer Goods 11% 15% 3.0% 12% 15 1.2 11.1% 31.5% Consumer Services 7% 7% 3.3% 12% 13 1.1 6.1% 24.6% Financials 33% 22% 3.3% 18% 9 0.5-10.8% 35.2% Health Care 6% 10% 4.4% 6% 10 1.6 2.0% 13.2% Industrials 9% 12% 2.8% 13% 14 1.1 7.2% 37.0% Oil & Gas 12% 9% 6.4% 14% 9 0.6-13.0% 24.2% Technology 2% 3% 2.4% 16% 14 0.9 8.9% 20.5% Telecommunications 8% 6% 6.4% 5% 9 1.7-6.2% 11.3% Utilities 6% 6% 6.2% 5% 10 2.1-12.2% 1.0% STOXX 600 3.9% 12.3% 10.8 0.9-2.1% 28.0% Source: Thomson Reuters Datastream. Exhibit 7. Major European Indices Key Market Valuation Metrics Index Current Dividend Yield EPS Growth LTG Forward 12M P/E PEG Ratio (P/E-to-Growth) FTSE 100 4.1% 12.6% 9.9 0.8 CAC 40 5.5% 11.0% 10.3 0.9 DAX 30 3.2% 11.7% 11.2 1.0 Source: Thomson Reuters Datastream. Exhibit 8. Major National Indices Closing Values YTD Change (%) 2008 Change (%) MTD Change (%) Two-Week Change (%) Index Last High YTD Low YTD AEX 325.42 357.43 305.03-3.0 36.3% -5.5 1.3 ASX 200 4435.30 5001.90 4265.30-8.9 30.8% -9.0 1.3 CAC 40 3516.64 4065.65 3331.29-10.7 22.3% -11.5-0.3 DAX 30 6056.59 6332.10 5434.34 1.7 23.8% -1.6 2.0 FTSE 100 5132.50 5825.01 4940.68-5.2 22.1% -9.6-1.2 FTSE 250 9609.68 10690.08 9010.37 3.3 46.3% -5.5-0.4 IBEX 35 9198.20 12222.50 8669.80-23.0 29.8% -15.4-1.5 OMX Copenhagen 20 401.82 414.41 336.69 19.3 35.9% 4.9 3.1 OMX Helsinki 25 2170.15 2297.87 1979.65 6.8 34.1% -3.4 3.3 OMX Stockholm 30 1017.74 1067.90 923.37 6.9 43.7% -0.3 4.0 SWX 30 6376.66 6967.56 6091.55-2.6 18.3% -7.2 1.1 Dow Jones STOXX 600 248.46 272.15 232.11-2.1 28.0% -5.7 1.5 Dow Jones Industrials 10172.53 11205.03 9816.49-2.5 18.8% -6.3-0.8 S&P 500 1086.84 1217.28 1050.47-2.5 23.5% -7.1-1.5 Source: Thomson Reuters Datastream. 2010 Thomson Reuters. All marks herein are used under license. TRPR_83800_16 5
Exhibit 9. Key Country Economic Data Country QoQ Annualized GDP Benchmark Rate Unemployment Rate Australia Q1 2010 2.0 5.35 5.2 Denmark Q1 2010 2.6 2.69 4.1 Finland Q1 2010-1.8 2.93 9.3 France Q1 2010 0.5 3.06 9.5 Germany Q1 2010 0.6 2.61 7.7 Ireland Q4 2009-8.8 5.16 13.7 Italy Q1 2010 1.7 4.04 8.9 Netherlands Q1 2010 1.0 2.90 3.1 Spain Q1 2010 0.3 4.49 19.1 Sweden Q1 2010 5.9 2.37 9.1 Switzerland Q1 2010 1.6 1.54 4.0 United Kingdom Q1 2010 1.2 3.50 7.9 United States Q1 2010 3.0 4.11 9.7 Source: Thomson Reuters Datastream. Exhibit 10. Currency Exchange Matrix Currency Australian Dollar China Yuan Euro GB Pound Japanese Yen Swiss Franc US Dollar Australian Dollar 1.000 6.665 0.699 0.577 75.570 0.960 0.847 China Yuan 6.324 1.000 0.121 0.100 15.295 0.155 0.146 Euro 1.430 8.269 1.000 0.826 109.900 1.383 1.211 GB Pound 1.732 10.017 1.211 1.000 134.355 1.676 1.470 Japanese Yen 0.013 0.065 0.009 0.007 1.000 0.013 0.011 Swiss Franc 1.042 6.446 0.723 0.597 79.883 1.000 0.875 US Dollar 1.181 6.831 0.826 0.680 91.240 1.143 1.000 Source: Thomson Reuters Datastream. 2010 Thomson Reuters. All marks herein are used under license. TRPR_83800_16 6
Exhibit 11. DJ STOXX 600 Blended Earnings Summary Q1 2010 Industry Number of Companies in Index Available Q1 2010 Number of Companies Blended Earnings Growth Number of Companies Reported to Date Surprise Diff % Actual vs. Estimate Diff % Actual vs. YA Actual Basic Materials 48 27 538.7% 26 9.5% 693.3% Consumer Goods 68 29 3939.2% 27 7.0% 4009.1% Consumer Services 72 25 54.1% 25 15.1% 35.3% Financials 143 60 124.6% 58 11.2% 80.0% Health Care 36 28 18.8% 28 2.7% 11.2% Industrials 119 54 66.4% 54 45.3% 15.6% Oil & Gas 39 26 34.3% 26 10.2% 19.3% Technology 24 15 213.0% 15-19.4% 299.7% Telecommunications 20 14 8.8% 13 3.3% 4.2% Utilities 31 16-18.4% 16 2.3% -20.2% STOXX 600 600 294 56.0% 288 9.5% 37.1% STOXX ex-energy 561 268 61.9% 262 9.3% 41.9% STOXX ex-financials 457 234 38.8% 230 8.4% 25.9% Source: Thomson ONE Analytics. Exhibit 12. DJ STOXX 600 Q2 2010 Estimated Earnings Growth Industry Number of Companies in Index Q2 2010 to Date Number of Company Estimates Q2 2010 to Date Earnings Growth Estimate Basic Materials 48 37 102% Consumer Goods 67 36 56% Consumer Services 72 35 16% Financials 142 74 120% Health Care 36 34 8% Industrials 119 67 19% Oil & Gas 39 34 42% Technology 24 19 90% Telecommunications 20 14 11% Utilities 31 13-8% STOXX 600 598 363 44.2% Source: Thomson ONE Analytics. Exhibit 13. DJ STOXX 600 Blended Earnings Growth CY 2010 & 2011 Number of 2010 CY 2011 CY Industry Companies in Index Blended Earnings Growth Blended Earnings Growth Basic Materials 48 79% 30% Consumer Goods 67 53% 23% Consumer Services 72 10% 20% Financials 142 75% 32% Health Care 36 10% 6% Industrials 119 28% 21% Oil & Gas 39 34% 20% Technology 24 54% 25% Telecommunications 20-4% 4% Utilities 31-4% 5% DJ STOXX 600 598 33.5% 20.5% Number of Companies 600 589 584 Source: Thomson ONE Analytics. 2010 Thomson Reuters. All marks herein are used under license. TRPR_83800_16 7
Exhibit 14. DJ STOXX 600 Country-Based Earnings CY 2010 & 2011 Country Number of Companies in Index Blended Earnings Growth CY2010 Blended Earnings Growth CY2011 Austria 10 5.8% 42.7% Belgium 16 49% 14.1% Denmark 17 46.8% 37.1% Finland 18 29.7% 20.4% France 80 31.7% 20.1% Germany 56 54.9% 19.3% Greece 10-19.2% 21.9% Ireland 10-58.0% -212.8% Italy 30 13.8% 20.1% Luxembourg 4 194.5% 51.0% Netherlands 32 45.8% 20.9% Norway 12 31.2% 28.2% Portugal 9 0.9% 16.3% Spain 33-1.5% 11.1% Sweden 35 12.1% 21.1% Switzerland 45 31.2% 13.0% United Kingdom 161 48.5% 21.3% Europe, ex.-uk 417 18.7% 19.5% Source: Thomson ONE Analytics. Exhibit 15. Europe Blended Earnings Growth CY 2010 & 2011 Index Number of Companies in Index Blended Earnings Growth CY2010 Blended Earnings Growth CY2011 DJ STOXX 600 600 33.5% 20.5% FTSE 100 100 38.2% 19.1% DAX 30 30 41.0% 17.5% CAC 40 40 28.9% 21.8% Source: Thomson ONE Analytics. 2010 Thomson Reuters. All marks herein are used under license. TRPR_83800_16 8
Exhibit 16. Major Upcoming Earnings Releases IBES Local Ticker Company Name Report Date Currency CQ Estimate Year-Ago Actual @SXJ SGC.GB STAGECOACH GROUP PLC Jun 22 BPN -- 9.40 @HM3 HMB.SE HENNES & MAURITZ AB Jun 23 SEK 3.04 2.54 @BGP BKG.GB BERKELEY GROUP HOLDINGS PLC Jun 23 BPN -- 52.57 @WPO CCL.GB CARNIVAL PLC Jun 14w USD 0.28 -- @POR PAH3.DE PORSCHE AUTOMOBIL HOLDING SE Jun 14w EUR -- 7.19 @DNX DCO.DK DANISCO Jun 16w DKK 4.78 3.35 @X3K KESA.GB KESA ELECTRICALS Jun 17w BPN -- -- @POR PAH3.DE PORSCHE AUTOMOBIL HOLDING SE Jun 17w EUR -- 7.19 Source: Thomson Reuters StreetEvents. 2010 Thomson Reuters. All marks herein are used under license. TRPR_83800_16 9
DATA TABLES METHODOLOGY Exhibit 1. Key Forthcoming European (EUR) Economic Releases Exhibit 2. Europe Debt Issuance Exhibit 3. Quarterly Deal Values, All European Involvement Exhibit 4. Annual Deal Values, All European Involvement Exhibit 5. Equity Risk Premiums The Thomson Reuters Market Model is an objective mathematical estimate of the level of risk premium currently imbedded in the European equity market, as benchmarked by the Dow Jones STOXX 600 Index. Our calculated risk premium seeks to estimate the level of anticipated returns currently required by investors to justify investing in European equities as opposed to the risk-free 10-year Treasury note. When investors anticipate a low-risk environment, they are willing to accept the prospect of lower equity market returns relative to what is available in bonds, and vice versa. All Thomson Reuters Market Model-related return calculations are purely hypothetical simulated returns, which do not include any transaction-based costs, such as commissions, brokerage fees, execution slippage, or advisory fees. Hypothetical returns also exclude the possibility of reinvestment of dividends, but do include the compounding of hypothetical capital gains. The model utilizes the Thomson Reuters 12-month forward earnings estimate mean for the STOXX 600 to compute the earnings yield, adds the historical earnings growth rate, and then subtracts the 10-year Treasury note yield. The methodology assumes the following: Ignoring capital gains or losses, the earnings yield approximates the rate of return expected by investors from the stock market, which is directly comparable to bond yields. Investors expected equity market capital gains are assumed to grow at a rate similar to the rate of shortterm earnings growth. The Thomson Reuters Market Model is foremost a relative market valuation tool comparing investors expected rates of return from the European equity market to the available yield to maturity in risk-free Treasuries. The model is not a product of market backtesting or any portfolio optimization exercises. While the model is periodically updated to include hypothetical performance results based on a number of base-case scenarios, past performance is not indicative of expected future results, and hypothetical returns may differ from reported results depending on the starting date of other performance simulations. Exhibit 6. DJ STOXX 600 Market Valuation Metrics Earnings Weight Earnings weight of each industry in the STOXX600 index for the current year. Price Weight Price weighting of each industry for the current year. Current Dividend Yield Weighted annualized dividend yield. EPS Growth LTG Weighted median value for long-term growth rate. F12M P/E Price/Earnings ratio based on earnings for the next 12 months. PEG (P/E-to-Growth) Based on the F12M P/E and EPS Growth LTG, the PEG allows for a comparison of P/E and LTG rates across industries. YTD Price Change Change in price since January 1. Previous Year Price Change Change in price for the previous year. Exhibit 7. Major European Indices Key Market Valuation Metrics 2010 Thomson Reuters. All marks herein are used under license. TRPR_83800_16 10
Exhibit 8. Major National Indices Closing Values Columns are Last close, High for the year, Low for the year, Percentage change since January 1, Last year's percentage change, Percentage change for the month to date, and Percentage change since the last Europe Market Commentary was published, two weeks ago. Exhibit 9. Key Country Economic Data Exhibit 10. Currency Exchange Matrix Exhibit 11. DJ STOXX 600 Blended Earnings Summary Current Quarter Industry Based on Industry Classification Benchmark (ICB). Number of companies in each index. Available [current quarter] Number of Companies Number of companies for which either the actual or estimated EPS is available in our database for the quarter. Blended Earnings Growth Earnings growth rate, which combines actual numbers for companies that have reported and estimates for companies yet to report. Number of Companies Reported to Date Number of companies that have reported their quarterly actual earnings. Surprise Differential % Actual vs. Estimate Also known as the surprise factor, it describes how analyst estimates compare to company actuals. Exhibit 12. DJ STOXX 600 Next-Quarter Estimated Earnings Growth Industry Based on Industry Classification Benchmark (ICB). Number of companies in each index. [Next-Quarter] to Date Number of Company Estimates Number of companies used in calculating the next quarter s estimated earnings growth. [Next-Quarter] to Date Earnings Growth Estimate Growth rate based on estimated net income to be reported by companies. Exhibit 13. DJ STOXX 600 Blended Earnings Growth Current and Next Calendar Years Industry Based on Industry Classification Benchmark (ICB). Number of companies in each index. 2010 CY Blended Earnings Growth Growth rate based on aggregate net income estimated to be reported for CY2010 vs. CY2009 actuals. 2010 CY Blended Earnings Growth Growth rate based on aggregate net income estimated to be reported for CY2011 vs. CY2010 estimates. Exhibit 14. DJ STOXX 600 Country-Based Earnings Current and Next Calendar Years Country Key European countries. Number of companies in each country index. Blended Earnings Growth CY 2010 Growth rate based on aggregate net income estimated to be reported for CY2010 vs. CY2009 actuals. Blended Earnings Growth CY 2010 Growth rate based on aggregate net income estimated to be reported for CY2011 vs. CY2010 estimates. Exhibit 15. Europe Blended Earnings Growth Current and Next Calendar Years Exhibit 16. Major Upcoming Earnings Releases 2010 Thomson Reuters. All marks herein are used under license. TRPR_83800_16 11
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