General Body Meeting

Mutual Investment Club of Cornell Agenda  Announcements  News Updates  Real Estate Sector Pitch 2

Mutual Investment Club of Cornell External Relations Committee  Managing relationships with companies  Marketing events to campus  Work directly with Director of PR & President Applications open until Saturday at 8:00pm 3

Mutual Investment Club of Cornell Wall St. Training  M&A and LBO Modeling on Excel  Saturday, 3/6: 12pm-6pm Sunday, 3/7: 12pm-8pm  No Previous WST experience necessary 4

Mutual Investment Club of Cornell African Stock Competition  Virtual Trading Competition on Johannesburg Stock Exchange  Time frame: February-September  Prizes: $$$  MICC Teams of

Mutual Investment Club of Cornell News Updates 6

Mutual Investment Club of Cornell Boardwalk Pipeline Partners (NYSE: BWP)  Earnings of $0.45 > Analyst expectation of $.0.35  Net Income increased 60% compared to previous two quarters. Operating Income 37% higher. Income pattern may be seasonal – High for the 1 st and 4 th quarters; Low for the 2 nd and 3 rd quarters.  PE Ratio – – One of the highest among the industry. 7

Mutual Investment Club of Cornell 8 Philip Morris PMIndustrySectorS&P 500 P/E Yield EPS Growth Rate Current Ratio ROE

Mutual Investment Club of Cornell 9 Reported diluted earnings per share of $3.92, up by 21.0% Repurchased 97.1 million shares of its common stock for $5.0 billion Increased the regular quarterly dividend during 2010 by 10.3% In Asia, net revenues increased by 21.6% to $7.9 billion 2010 in Review

Mutual Investment Club of Cornell Q and 2011 Reported diluted earnings per share of $0.96, up by 20.0% In the EU, net revenues decreased by 7.3% to $2.2 billion In EEMA, net revenues increased by 0.3% to $1.9 billion In Asia, net revenues increased by 22.9% to $2.1 billion In Latin America & Canada, net revenues increased by 12.6% to $860 million Announces planned share repurchases in 2011 of approximately $5.0 billion

Mutual Investment Club of Cornell Reallocation Pitch Real Estate Sector 11

Mutual Investment Club of Cornell Overview  Sell off:  General Growth Properties: $  Howard Hughes Corporation: $  Invest in:  SCANA Corporation  Otter Tail Corporation 12

Mutual Investment Club of Cornell Rationale for GGP  Taking profits  Bought GGP ~4.50  Lessening Risk  Beta of 4.00  Extreme Volatility with rapid price movements  Underperforming the market  Stabilized  No news or growth to look forward to 13

Mutual Investment Club of Cornell GGP 14

Mutual Investment Club of Cornell Rationale for HHC  Over-speculation  80% rise in stock price over past months  No news  Headquarters in Dallas 15

Mutual Investment Club of Cornell Portfolio Maintenance  Decrease Volatility  Risk adverse  Choose positions that will provide stability  Market Tracking  High Yielding Dividends 16

Mutual Investment Club of Cornell Stability and Tracking 17

Mutual Investment Club of Cornell Stability  SCANA  Beta: 0.59  4.50% Forward Dividend Yield 18

Mutual Investment Club of Cornell Tracking  OTTR  Five year arbitrage 19

Mutual Investment Club of Cornell Portfolio Allocation  Achieve a balance in tracking market growth  OTTR  Achieve stability and solid growth  SCG 20

Mutual Investment Club of Cornell Otter Tail 21

Mutual Investment Club of Cornell Thesis “Strong foundation, bright future”  Foundation  Monopoly  Growth Potential  Renewable Energy  Manufacturing 22

Mutual Investment Club of Cornell Otter Tail  Electrical Power Provider  Minnesota, North Dakota, South Dakota  Dominant in market 23

Mutual Investment Club of Cornell Growth Potential 24

Mutual Investment Club of Cornell Otter Tail  Wind Power 25

Mutual Investment Club of Cornell Otter Tail Wind Infrastructure  Flatbed Hauling  Electrical Contractor  Energy Service 26

Mutual Investment Club of Cornell Otter Tail Health Services  dms Imaging  Imaging Services  dms Health Technologies  Sales and service of medical equipment Food Processing  Idaho Pacific  Fourth Largest Potato Provider 27

Mutual Investment Club of Cornell Otter Tail  Dividends since

Mutual Investment Club of Cornell Financials Price/Earnings Ratio  P/E (ttm):  P/E (five year average): ; 17.8 average Enterprise Value to Free Cash Flow  EV/FCF (ttm):  EV/FCF (ttm): not significant (negative) 29

Mutual Investment Club of Cornell Financials Stock Price  52 week high: $25.39  5 year high: $46.20 Other:  Quarterly growth revenue: 9.00%  Gross margin: stable over past 5 years  Current ratio:

Mutual Investment Club of Cornell Competitors OTTER TAIL ALLETECATERPILLARCLECO P/E (5 YR) EV/FCF Dividend Yield 5.31%4.69%1.67%3.23% 31  Allete: Energy services in upper midwest, primarily Minnesota  Caterpillar: Industrial power systems and generation, engine/turbine production  Cleco: Energy services company situated in Louisiana

Mutual Investment Club of Cornell Otter Tail  Valuation  Discounted Cash Flow Using 22% Growth rate for Earnings per Share Zack’s Investment Conservative 7% Perpetual Growth afterwards Traditional 11% Benchmark Rate  Valuation: $

Mutual Investment Club of Cornell SCANA Corporation

Mutual Investment Club of Cornell Industry Overview  Electrical Energy Provider  South Carolina- SCE&G  North Carolina- PSNC  Georgia- SEGA  SCANA umbrella  Economies to Scale  Low Corporate Overhead

Mutual Investment Club of Cornell Operations  North Carolina  Raleigh/Durham  Asheville  South Carolina  Columbia  Charleston  Myrtle Beach  Georgia  Savannah

Mutual Investment Club of Cornell Operations 36

Mutual Investment Club of Cornell Earnings

Mutual Investment Club of Cornell Estimation

Mutual Investment Club of Cornell Estimation  General Upward Consensus in all circles  Price Earnings at 14.07; Middle of the road

Mutual Investment Club of Cornell Competitors 40

Mutual Investment Club of Cornell Risks  Nuclear Plant  37% Milestone Completion

Mutual Investment Club of Cornell Past Share Performance

Mutual Investment Club of Cornell Thesis  Stable with Solid Growth  Estimations all tend upwards  Low Beta  Dividend Yield  4.5% Yield  Opportune Buying Time  Below Bollinger Band

Mutual Investment Club of Cornell Proposal  OTTR: 68.33%  SCG: 31.67%  Portfolio  9.8% OTTR  4.54% SCG 44

Mutual Investment Club of Cornell Questions? 45

Mutual Investment Club of Cornell Thanks for coming by! You have two fuses, each which burns in exactly one hour. How can you time exactly 45 minutes? 46