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Southeastern Asset
Managem
Longleaf Partners Funds
November 2015 Webcast
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Longleaf US Fund Disclosures
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Performance Perspective Lee Harper Head of Client Portfolio M
Our Time-Tested Value Approach
Mason Hawkins, CChairmanChief Executive OfficerCo-Portfolio Manager-Al
Confident in Future Results Staley Cates, CFA President Chief Investment OfficerCo-Portfolio Manager-Al
Q&A Research Team
Agenda
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Performance Perspective
Lee Harperc'.6 */ I-
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Our Time-Tested Value Approach
Mason Hawkins, CFA I&.
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Performance Update Since 9/30/15Longleaf Partners Funds and Indices (9/30/15 to 11/13/15)
970:%7E=)= F%&G$D8%. E=)= )6%77D8%.
!'251+3 1'/-'92 1'
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Rapid Change in Market PerceptionMomentum can change quickly. Almost a third of our holdings have posteddouble-digit returns since September, and many are up over 15%.
Returns from 9/30/15 to 11/13/15
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Confident in Future Results
Staley Cates, CFA 01'3
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Strong Execution at Overweight HoldingsOur confidence is based on the positive fundamentals, value growth andmanagement action at the companies we own.
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Status Report: Macau
h Traveled to Macau in October
h Visited all six gaming operators
h Met with various consultants,analysts, non-Macau competitors andco-investors
h Takeaway: Mass gaming hasstabilized
Mass vs. VIP Gross Gaming R
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Status Report: Energyh Spot prices are worse, not better:
h Acreage and producing assets still have value, even with spot prices at multi-year l! Antero Resources bought Utica acreage for $7,000/acre (above our model estim! Hess sold Utica acreage at $9,000+/acre!
Encana sold Rockies and Haynesville producing assets above our carrying valuCHKs assets in similar regions
h Chesapeake Energy is operationally strongertoday with excellent cost performance:
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Our appraisals reflect the redu futures strip pricing, and the disco
those conservative values remain
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CONSOL Energy
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Wynn Resorts Wynn Resorts is a conservatively managed casino operator with a highlyrecognizable brand targeting affluent customers.
Strong Businessh Las Vegas: Highest grossing properties in Las Vegash Boston: Development moving forwardh Macau: High barriers to entry
Good Peopleh Steve Wynn, CEO! 9.9% ownership! Generated ~25% total return CAGR * over 20+ years at Mirage! Generated ~15% total return CAGR over 10+ years at Wynn Resorts
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Macau Business
Wynn Resorts: Valuation Scenario #1 At Wynns current stock price, investors are paying less than $13 per share >$70 of value in Macau.
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Wynn Resorts: Valuation Scenario #2The companys non-earning assets are worth more than the companys currestock price and are completely missed in earnings screens.
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Non-Earning Assets
We get current operating assets that produced ~$10/share oftrailing 12 month property-level EBITDA, net of debt against them,
for less-than-free
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Q & A
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P/V (Price-To-Value) Ratios
U.S. Large-Cap
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Memphis, TN
Ross Glotzbach, CFA Deputy Director of ResearchCo-PortfolioManager Small-Cap Fund
Jim Thompson, CFA Senior Analyst
Lowry Howell, CFA Senior Analyst
Brandon Arrindell, CFA nalyst
Singapore
Ken Siazon Head of AsiaCo-Portfolio Manager Internatio
Manish Sharma, CFA Senior Analyst
London
Scott Cobb Head of EuropeCo-Portfolio Manager Internatio
Josh Shores, CFA Senior Analyst
Q&A with Our Global Research TeamMason Hawkins, CFA ChairmanChief Executive OfficerCo-Portfolio Manager-All Funds
Staley Cates, CFA President Chief Investment OfficerCo-Portfolio Manager-All Funds
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