9th annual Spring value investing congress

April 4, 2014 Las Vegas, NV Hidden in Plain Sight

Isaac Schwartz, Robotti & Company

www.ValueInvestingCongress.com

VALUE INVESTING CONGRESS 2014

Isaac Schwartz, Robotti & Company Advisors LLC

Disclaimer
The Firm is not providing investment advice through this material. This presentation is provided for informational purpose as an illustration of the firms investment philosophy and shall not be considered investment advice or a recommendation or solicitation to buy or sell any securities discussed herein. As of the date of this presentation the firm continues to own the securities discussed herein. These opinions are not intended to be a forecast of future events, a guarantee of future results, or investment advice. Past performance is not indicative of future results, and no representation or warranty, express or implied, is made regarding future performance. Robotti & Company Advisors, LLC or its affiliates may engage in securities transactions that are inconsistent with this communication and may have long or short positions in such securities. The information and any opinions contained herein are as of the date of this material and the firm does not undertake any obligation to update them. Information contained in this presentation has been obtained from sources which we believe to be reliable but we do not make any representation as to its accuracy or its completeness and it should not be relied on as such. This material does not take into account individual client circumstances and is not intended as a recommendation to any person who is not a client of the firm. Securities, financial instruments, products, or strategies mentioned in this material may not be suitable for all investors. Robotti & Company Advisors, LLC does not provide tax advice. Investors should seek tax advice based on their particular circumstances from an independent tax advisor.

GEM IN KAZAKHSTAN

HALYK SAVINGS BANK VIC 2013 REDUX

Kazakhstans Wealth
Thousand Barrels / Day 1,600 USD Billion 200

1,200

150

800

oil production

100

gdp
400 50

0 1992 1994 1996 1998 2000 2002 2004 2006 2008 2010 2012

Source: US EIA, Robotti & Co adjustments, World Bank, Bloomberg

Kazakh Main Equity Index

Index Price 2,500

Down 70%
2,000

Up 2,500%

1,500

1,000

500

still, up by 900% over a dozen years

0 2002 2004 2006 2008 2010 2012 2014

Source: Bloomberg

Kazakh Banking System

KZT trillion 12

deposits
4

loans

0 1998 2000 2002 2004 2006 2008 2010 2012 2014

Source: National Bank of Kazakhstan

Timeline of Kazakh Banks

Halyk Bank IPO Buyer: KNG Seller: ATF

PB 6.2

Buyer: UniCredit Seller: ATF

PB 3.5
Buyer: KKB Seller: BTA Kazakommertsbank IPO Buyer: Kookmin Bank Seller: CenterCredit

PB 1.0

PB 5.3

PB 0.5

Buyer: Halyk Seller: HSBC Kaz

PB 3.1

PB 1.0

Source: company press releases, Robotti & Co. adjustments

Halyk Savings Bank (LSE: HSBK)

Price on 3/31/14 Shares Market Cap Total Assets Equity Net Income (TTM)
in USD million USD 30

8.30 278 2,307 16,261 2,295 475

PE PB Yield ROE ROA

4.9 1.0 3.5% 20.7% 2.9%

Halyks Stock Price vs. Book Value Per Share

price
20

book
10 0 2007

2008

2009

2010

2011

2012

2013

2014

Source: Bloomberg

Economic Growth and Banking Penetration

Source: International Monetary Fund

ON THE GROUND FLOOR OF GLOBAL GROWTH

Investment Highlights
Developed-market company selling to emerging markets Family-owned with history of smart capital allocation

Global leader in an industry with good economics, growth

Overlooked, in out-of-favor markets, at discount to peers We think the stock can double in five years

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Tarkett The Ultimate Flooring Experience

Ticker Exchange Price (at 3/31/14) Shares out Market Cap EV Revenues Net Income PE ROCE
in EUR million

TKTT Euronext-Paris 25.77 64 1,641 2,141 2,516 100 16 18%

Tarkett Shareholders Deconinck family KKR Management Strategic Shareholders Float

50% 22% 2% 74% 26%

Source: Bloomberg

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Tarketts Share since November 2013 IPO

Source: BigCharts.com

13

From Floor to Shining Floor

Source: Tarkett 2013 results presentation

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Ive Got Flooring Under My Skin

Globally consolidated Segmentation through cultural, climatic differences Low price elasticity

Decennial purchase
Contractors muddy prices

Significant demand in Russia and emerging markets

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Floors-eye View

in USD, ttm

Mohawk Forbo J Halstead Armstrong Interface Average Tarkett Discount

Market Cap 9,796 2,411 1,019 2,872 1,299

EV* 12,070 2,199 966 3,823 1,237

Revenues EBITDA Net Income EV/EBITDA 7,689 1,034 473 11.7 1,357 195 125 11.3 362 2,720 960 72 371 121 51 101 48 13.5 10.3 10.2 11.4 6.9 (39.3%)

PE 20.7 19.3 20.0 28.4 26.9 23.1 15.8 (31.5%)

2,185

2,953

3,468

427

138

*Enterprise value includes net pension liabilities

Source: Bloomberg, Robotti & Co. adjustments

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Tarketts Powerful Position in Russia

Two-thirds share in most popular category, vinyl Price leader 85% homeownership with two-thirds in need of substantial renovation Barriers to entry

Worlds largest vinyl factory (8x closest competitor)

Decade to build distribution and brand

Source: Tarkett management comments

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The Good Life

18

Anticipated Margin Improvement

Rolled-up twelve companies, 2009-2013 Management promoted from acquirees World Class Manufacturing Addressing margins vs. competitors Scale increase

Ongoing integration, move to low-cost areas

Localized manufacturing

Source: Tarkett prospectus

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North America: If These Floors Could Talk

Mostly residential until 2012 Tandus Collins & Aikman via Oaktree Capital

Five years of market share gains

Exposure to commercial Significant scale and cross-selling

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Sports Surfaces and Other Prospects

Sports: highly consolidated 50% market share in certain products Two recent acquisitions by Berkshire Hathaway Shaw Rebound from recessionary underinvestment Asia and Latin America

Central Europe

Source: Tarkett prospectus

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Guide to Naysaying
Russia/CIS is a troubled region deserving a low multiple

USA commercial recovery distant

Sports is a bad business just look at the last decade

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Our View
Russian growth can continue Scale, branding built over a decade Lots of old houses need refurbishment A non-discretionary purchase North America Opportunistic acquisition

Commercial market has yet to recover

Improvement in Sports Surfaces
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Tarketts Potential
Multiple paths to 50% EBITDA growth in five years Sustainable volume, price increases in Russia Margin improvement, industry recovery in US Upside optionality through sports, Europe, Asia Family did not sell in IPO, bought additional 9 mil worth

Sells at 35-40% discount to peers

Source: Robotti & Co. projections, Tarkett prospectus

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About Robotti & Company Advisors, LLC

Established in 1983 by Robert Robotti We manage more than $700 million of equities in separate accounts and partnerships on behalf of institutions and individuals We are long-term investors in businesses and are constitutionally acclimatized to being contrarian We are based in New York and travel extensively, especially throughout the Northern Hemisphere
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Disclosure: Ownership Information

Disclosures Isaac Schwartz and/or members of his household have a financial interest in the following securities Robotti or its affiliates beneficially own common equity of the following securities Robotti or its affiliates beneficially own 1% or more of any class of common equity of the following securities Isaac Schwartz serves as a Director or Officer or Advisory Board Member of the following securities

Halyk Savings Bank (HSBK LI)

Tarkett SA (TKTT FP)

Yes

Yes

Yes

Yes

No

No

No

No

Companies have been chosen solely as a case study to illustrate the investment process and approach of Robotti & Company Advisors, LLC. This information should not be interpreted as a performance record or as an indication of future performance results.

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Robotti & Company Advisors, LLC

6 East 43rd Street 23rd Floor New York, NY 10017

For more info, contact Susan Kaplan at +1-646-442-6729 skaplan@robotti.com www.robotti.com