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FAMILY-OWNED BUSINESSES DELIVER Molson Coors is one of the oldest family controlled publicly listed companies. It is ranked 34th in Credit Suisse’s 2018 “Family 1000 Report”*. Investors are increasingly intrigued on why family controlled businesses have substantially better long-term returns and superior margins versus non-family controlled businesses, as illustrated by the two charts below. Credit Suisse suggests that the outperformance is due “to the longer time horizon that family-owned companies adopt in their decision making”:

■■

Table 2: The largest family-owned companies in CS family 1000

Top 50 companies by market cap. “Having a longer-term investment focus provides companies with Company Mkt. cap. the flexibility to move away from the quarter-to-quarter earnings (USD bn) calendar and instead focus on through-cycle growth, margins and returns. This also allows for a smoother cash-flow profile, thereby lowering the need for external funding. In turn, all of this has supported the share-price outperformance of family-owned companies since 2006.” - Credit Suisse 2018 Family 1000 Report*

AMIL O NED COMPANIES HA E OUTPER ORMED NON AMIL O NED COMPANIES SINCE

Alphabet

856.5

Facebook

536.1

Alibaba

463.0

Berkshire Hathaway

277.4

Samsung Electronics

266.8

Walmart

264.6

Anheuser-Busch Inbev

201.5

Oracle

193.8

Lvmh

174.2

Roche Holding

172.2

Comcast

161.8

Ping An Insurance

161.6

L'Oreal

137.7

Nike 'B' AMIL

O

Kering

66.9

Hermes Intl.

66.5

Keyence

65.8

Enterprise Prds.Ptns.Lp.

63.5

Oil Company Lukoil

59.9

Heineken

59.1

Bmw

58.1

Tesla

58.1

13% 12% 11%

Non-family universe

2008

Ford Motor

47.8

Richemont

45.6

Fresenius

45.0

20%

Fast Retailing

43.7

19%

Ck Hutchison Holdings

43.6

18%

Continental

43.2

Pernod-Ricard

43.0

Blackstone Group

42.5

China Evergrande

42.4

Jardine Strategic Hdg.

42.2

Carnival

41.1

Bank Central Asia

40.6

Sands China

39.4

Dassault Systemes

38.9

America Movil

38.2

2017

2016

2015

2014

2013

2012

2011

2010

2009

2008

2007

2006

Jan-18

May-17

2007

49.1

AMIL O NED COMPANIES ENERATE BETTER MAR INS THAN NON AMIL O NED COMPANIES

10% Jan-16

52.3

49.6

11% Sep-16

16.1

Federated Invrs.'

Jeronimo Martins

1792

9.4

Emami

Bucher Industries

1807

3.3

Bajaj

Wiley John & Sons

1807

3.1

1&1 Drillisch

Merck Kgaa

1827

13.7

Silverlake Axis

Exmar

1829

0.4

H & H Intl. Hdg.

Bossard 'B'

1831

1.3

Partners Group H

Hermes Intl.

1837

66.5

Kone

Oeneo

1838

0.7

Qiwi Ads B

Carlsberg 'B'

1847

18.3

Great Wall Movie

Robertet

1850

1.2

Godrej Consume

Non-family owned

* https://www.credit-suisse.com/corporate/en/articles/news-and-expertise/the-family-business-premium-201809.html

Cts Eventim

1853

1.2

Cyberagent

Kws Saat

1856

2.6

Discovery Series

Wheelock

1857

14.3

China Med.Sy.Hd

Davide Campari

1860

10.0

Coloplast

DORMA KABA HOLD

1862

2.7

Page Industries

Solvay

1863

14.0

Largan Precision

Bombay Burmah Trading

1863

1.6

Marico

Immobel

1863

0.6

Cyfrowy Polsat

Dksh Holding

1865

4.8

Anheuser-Busch

Hongkong & Shai.Htls.

1866

2.2

Hero Motocorp

Scotts Miracle-Gro

1868

4.3

Tata Consultancy

Sainsbury J

1869

9.5

Eicher Motors

Brown-Forman 'B'

1870

16.7

Symphony

5.5

Tpg Telecom

1871

43.2

Li & Fung

1873

59.1

Moncler

Heidelbergcement

1873

16.3

Rollins

Hal Trust

1873

14.7

Hcl Technologies

Molson Coors Brewing 'B'

1873

13.5

Flow Traders NV

Schindler 'P'

1874

24.6

Britannia Inds.

Watts Water Techs.

1874

2.9

Ca

Henkel Preference

1876

51.2

Ajanta Pharma

Greif 'A'

1877

1.4

Diplomat Pharma

Elringklinger N

1879

0.8

Sunny Optical Te

Bekaert (D)

1880

1.6

Alibaba

Kering

1881

66.9

Henkel Preferenc

Nippon Paint Holdings

1881

14.1

Rational

Beiersdorf

1882

26.4

Jiangsu Yanghe B

Weston George

1882

10.5

Check Point Sftw

Berli Jucker

1882

6.7

Hexagon

Alfa Laval

1883

11.4

Coty Cl.A

Dabur India

1884

11.4

Facebook

Haverty Frtr.Cos.

1885

0.4

Assa Abloy

Wharf Holdings

1886

10.1

Dmg Entm.&.Md

Bosch

1886

8.5

Surya Citra Media

Sartorius

Continental Heineken

Source: Company data, Credit Suisse estimates

Family owned

Expedia Group

Bonduelle

Family owned

Jardine Matheson

12%

May-15

54.2

Estee Lauder

13%

Jan-14

54.5

51.2

14%

Sep-14

54.8

Henkel

15%

May-13

Las Vegas Sands Jd.Com

16%

Jan-12

Simon Property Group Banco Bradesco Pn

17%

Sep-12

2006

Jan-18

May-17

Jan-16

Sep-16

May-15

Jan-14

Sep-14

May-13

Jan-12

Sep-12

May-11

Jan-10

Sep-10

May-09

Jan-08

Sep-08

May-07

Jan-06

Sep-06

10%

May-11

1758

1870

Non-family owned

2017

77.9

14%

0

Jan-10

Amerisourceberg

Man

2016

Christian Dior

15%

50

Sep-10

Hargreaves Lans

174.2

2015

80.1

16%

100

May-09

6.6

1743

2014

81.2

Itau Unibanco

17%

150

82

1704

Lvmh LVMH

2013

Baidu

18%

200

Non-family universe

Wendel

2012

99.2

Company

(USD bn)

2011

Inditex

2010

99.4

2009

Softbank Group

19%

250

mily universe

Founding Mkt. cap.

127.3 NED COMPANIES MAR INS BankENERATE Of The Philp. BETTER 1851 8.2 NON109.1 AMIL Anheuser-Busch O NED COMPANIES Inbev 1852 201.5

20%

300

COMPANIES HA E OUTPER ORMED O NED COMPANIES SINCE

Company

50 most profi

THAN Reliance Industries

Global overall

Family universe

50 oldest companies

Profile for Richard

Elevation Capital Research Annual 2018  

Elevation Capital Research Annual 2018