1. 55 South Lake Avenue Suite 750 Pasadena, CA 91101 Phone (626) 568-2792 55 West Monroe Street Suite 3125 Chicago, IL 60603 Phone (312) 269-1062 L OMBARDIA C APITAL P ARTNERS LLC CONTRARIAN INVESTING Al Polit, CFA Managing Director Portfolio Manager, International & Global Value Equities

2. DISCLOSURES Lombardia Capital Partners LLC was previously known as Valenzuela Capital Partners LLC. It changed its name to Lombardia Capital Partners LLC on July 17, 2006. This was solely a name change and the firm did not change its investment process or personnel at that time. The Lombardia Capital Partners Large Cap Value Equity Strategy is an actively managed Lombardia Capital Partners LLC and employees shall have no obligation to update or amend any information or opinion contained herein, and the frequency of subsequent publications, if any, remain in the discretion of the author and the Firm. This material is provided for educational purposes only and should not be construed as investment advice or an offer or solicitation to buy or sell securities. This information discusses general market activity, industry or sector trends, or other broad-based economic, market, or political conditions and should not be construed as investment advice. This publication does not constitute an offer or solicitation of any transaction in any securities referred to herein. Any recommendation contained herein may not be suitable for all investors. Although the information contained in the subject report (not including disclosures contained herein) has been obtained from sources we believe to be reliable, the accuracy and completeness of such information and the opinions expressed herein cannot be guaranteed. This publication and any recommendation contained herein speak only as of the date hereof and are subject to change without notice. This report may not be reproduced, distributed, or published without the prior consent of Lombardia Capital Partners LLC. Page 2

3. “Even the intelligent investor is likely to need considerable willpower to keep from following the crowd.” - Benjamin Graham Page 3

4. The Basics...  Intrinsic Value  Margin of Safety The key to investment success is to look at stocks like small pieces of a business that are up for sale like a rationale businessperson. Offering...  Downside Protection  Capital Appreciation Potential ABSOLUTE VALUE INVESTING - BASIC FOUNDATIONS ABSOLUTE VALUE INVESTING - BASIC FOUNDATIONS Page 4

5. “...many shall be restored that now are fallen; and many shall fall that are now in honor...” - Horace, Ars Poetica Page 5

6. “BURGERNOMICS” Page 6 Country Big Mac Price Implied PPP rate + Today's Exchange Rate 1 USD = Over(+) / Under(-) Valuation against the USD, % ++ in Local Currency in US dollars United States$ 3.733.7300---1.0000--- ArgentinaPeso 143.41013.754.1054-8.6569 AustraliaA$ 4.354.61341.170.942924.0853 BrazilReal 8.715.50922.331.581047.3751 Britain£ 2.293.63670.610.6297-3.1285 CanadaC$ 4.174.29941.120.969915.4758 ChilePeso 17503.7444469467.3610.3507 ChinaYuan 13.22.04023.546.4698-45.2842 ColombiaPeso 82004.596521961783.9623.0969 Costa RicaColones 20003.9588536505.2006.0966 Czech RepKoruna 67.63.895318.117.35434.2969 DenmarkDK 28.55.34097.635.336242.9856 EygptPound 132.17533.485.9761-41.7680 EstoniaKroon 322.72568.5711.7405-27.0048 Euro area€ 3.384.72460.910.715427.2016 Hong KongHK$ 14.81.89903.967.7936-49.1891 HungaryForint 7403.8509198192.1643.0370 IndonesiaRupiah 227802.658461028568.98-28.7897 IsraelShekel 14.94.31003.993.457115.4147 Japan¥ 3204.008185.779.83907.3410 LatviaLats 1.553.04820.420.5085-17.4041 LithuaniaLitas 7.32.95451.962.4708-20.6735 MalaysiaRinggit 7.052.32661.893.0302-37.6279 MexicoPeso 322.71058.5711.8060-27.4098 New ZealandNZ$ 54.09971.341.21969.8721 NorwayKroner 458.082612.15.5675117.3327 PakistanRupee 2102.422656.3086.6826-35.0504 PeruNew Sol 103.60432.682.7745-3.4060 PhilippinesPeso 1022.362727.343.1702-36.7619 PolandZloty 8.32.88292.222.8790-22.8899 RussiaRouble 712.506819.028.3227-32.9160 Country Big Mac Price Implied PPP rate + Today's Exchange Rate 1 USD = Over(+) / Under(-) Valuation against the USD, % ++ in Local Currency in US dollars Saudi ArabiaRiyal 102.66622.683.7506-28.5448 SingaporeS$ 4.233.44631.131.2274-7.9355 South AfricaRand 18.52.68794.946.8827-28.2258 South KoreaWon 34003.19199111065.19-14.4754 Sri LankaRupee 2101.914556.3109.690-48.6735 SwedenSKr 48.47.340113.06.593997.1519 SwitzerlandSFr 6.57.78541.740.8349108.4082 TaiwanNT$ 752.598720.128.8609-30.3556 ThailandBaht 702.301418.830.4158-38.1900 TurkeyLire 5.953.60281.591.6515-3.7239 UAEDirhams 112.99452.953.6734-19.6929 UkraineHryvnia 14.51.78723.888.1131-52.1761 UruguayPeso 794.158621.118.997011.0702

7.  Euro integration or disintegration  High public debt levels & anemic economic growth  Default insurance costs soaring  Liquidity issue or insolvent  Sovereign buyers strike  Sovereign default or restructuring  Italian & Spanish contagion  Bank capital and funding options  Upcoming bank stress tests  A second “euro” Page 7 EUROPE - MARKET CONCERNS Italian VS. German 10-yr Bond Spreads General Government Debt to GDP Ratio

8. Page 8 EUROPE - OPPORTUNITIES  Increased transparency  Market discipline  Increasing privatization of state assets  ATTRACTIVE EQUITY VALUATIONS

9.  High public debt levels (most domestically-funded)  Nuclear shutdown  Political circus  Public financial institutions  Deflation  Inefficient utilization of corporate balance sheets  Lifetime employment  “Amakudari”  Poor corporate governance Page 9 JAPAN - CONCERNS

10.  Public financial institutions reform  Adoption of shareholder-friendly practices  Some unwinding of cross-shareholdings  Increased loan demand  ATTRACTIVE EQUITY VALUATIONS Page 10 JAPAN - OPPORTUNITIES

11.  The unknown  Use of shell companies  Inflationary pressures  Negative real rates  Labor constraints  Chinese “white elephant” projects  Unbalanced economies  Undisciplined spending  Poor corporate governance Page 11 EMERGING MARKETS - CONCERNS

12.  In general, expensive valuations  Growth, but what is the cost and return  Conflicts of interest  Poor disclosure  Limited shareowner rights Page 12 EMERGING MARKETS – OPPORTUNITIES?

13. Page 13 THE NEXT EMERGING MARKET?

14. Value has underperformed Growth last 7 years Value has outperformed Growth over long periods Note: Results greater than one year have been annualized and data is net of withholding taxes ending 6/30/11. MSCI EAFE VALUE VS. GROWTH Page 14

15. “Conventional wisdom is the surest path to underperformance.” Page 15

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