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					                                          Americas Morning Summary
                                          August 13, 2010



The Goldman Sachs Group, Inc.
                                           Focus Items
This document contains comments
related to the following stocks:           Precious Metals: Gold market poised for a rally as US real rates head lower                                                        1
                                           Americas: Asset Managers: Money manager barometer: Bond fund flows remain
                                                                                                                                                                              2
Abercrombie & Fitch (ANF)                  strong, equity outflows slow
Advance Auto Parts Inc. (AAP)              Eli Lilly & Company (LLY): Strattera loss cuts into cushion                                                                        3
Aeropostale (ARO)
American Eagle Outfitters Inc.             Hospira, Inc. (HSP): Framing the potential outcomes for Taxotere and 2011E EPS                                                     4
(AEO)
Ann Taylor Stores Corp. (ANN)              Americas: Retail: Specialty Apparel & Accessories: Apparel 2Q Preview: Expect a
                                                                                                                                                                              5
Autodesk Inc. (ADSK)                       sloppier quarter with more challenges ahead
Bally Technologies, Inc. (BYI)
Banco de Chile (BCH)
Banco Santander Chile (SAN)
                                           Key Data Changes
BM&F Bovespa (BVMF3.SA)                    Rating and price target changes
BR Properties (BRPR3.SA)                                                               Rating/
CBS Corp. (CBS)                                                                       Coverage                Price Target                             Estimates
CCR (CCRO3.SA)                                                                          view
Chico's FAS, Inc. (CHS)                                                              New     Old        New            Old      % chg
                                                                                                                                           Current          Next     Fiscal
Cielo (CIEL3.SA)                           Company                          Ticker                                                          Year            Year      y/e
Credicorp (BAP)                            Advance Auto Parts Inc.          AAP      N/N     unch    ↑ $61.00     $60.00        1.7%           $3.86        $4.30    Dec
The Walt Disney Company (DIS)              Autodesk Inc.                    ADSK     N/A     unch    ↑ $31.00     $30.00        3.3%           $1.05        $1.30     Jan
Eli Lilly & Company (LLY)
EnerSys Inc. (ENS)                         Banco de Chile                   BCH      S/A     unch    ↑ $72.70     $65.50        11.0%          $5.78        $6.22    Dec
Express, Inc. (EXPR)                       Banco Santander Chile            SAN      S/A     unch    ↑ $82.10     $74.10        10.8%          $5.46        $6.08    Dec
Gap Inc. (GPS)
                                           Hospira, Inc.                    HSP      B/N     unch    ↓ $64.00     $66.00        (3.0%)         $3.43        $4.15    Dec
Hospira, Inc. (HSP)
J. Crew Group, Inc. (JCG)                  Lojas Renner                   LREN3.SA   N/N     unch   ↑ R$61.30 R$56.60           8.3%       R$2.32         R$2.69     Dec
The Estee Lauder Companies Inc.
                                           Nvidia Corp.                     NVDA     N/A     unch    ↓ $11.00     $12.00        (8.3%)         $0.65        $0.90     Jan
(EL)
Limited Brands, Inc. (LTD)                 OGX Petróleo e Gás
                                                                         OGXP3.SA    B/A     unch   ↑ R$24.00 R$23.00           4.3%       R$0.06         R$0.08     Dec
                                           Participações S.A.
Lojas Renner (LREN3.SA)
lululemon athletica inc. (LULU)            Usiminas                       USIM3.SA   N/N     unch   ↓ R$53.00 R$62.00 (14.5%)              R$2.52         R$6.05     Dec
The News Corp. (A) (NWS__A)                Usiminas                       USIM5.SA   N/N     unch   ↓ R$53.00 R$62.00 (14.5%)              R$2.52         R$6.05     Dec
The News Corp. (B) (NWS)
Nordstrom, Inc. (JWN)                      Estimate changes
Nvidia Corp. (NVDA)                                                                   Rating/              Current Year                         Next Year            Fiscal
OGX Petróleo e Gás Participações                                                     Coverage                                                                         y/e
S.A. (OGXP3.SA)                            Company                        Ticker       view          New         Old         % chg       New       Old      % chg
OHL Brasil (OHLB3.SA)                      Advance Auto Parts Inc.         AAP         N/N          ↑ $3.86     $3.80        1.7%    ↑ $4.30      $4.25      1.1%    Dec
Perrigo Co. (PRGO)
                                           Ann Taylor Stores Corp.         ANN         N/N          ↓ $1.15     $1.19    (3.7%)      ↓ $1.27      $1.31     (3.5%)    Jan
Redecard (RDCD3.SA)
Rossi (RSID3.SA)                           Autodesk Inc.                  ADSK         N/A          ↑ $1.05     $0.91        15.5%   ↑ $1.30      $1.27      2.3%     Jan
rue21, inc. (RUE)                          Banco de Chile                  BCH         S/A          ↑ $5.78     $5.14        12.4%   ↓ $6.22      $6.41     (2.8%)   Dec
Sara Lee Corp. (SLE)
The Buckle, Inc. (BKE)                     Banco Santander Chile           SAN         S/A          ↑ $5.46     $4.88        11.9%   ↑ $6.08      $5.90      3.1%    Dec
Time Warner Inc. (TWX)                     Chico's FAS, Inc.               CHS         S/N          ↓ $0.63     $0.65    (3.9%)      ↓ $0.73      $0.76     (2.9%)    Jan
For further product information,
contact:

New York Investment Research
(212) 902-1000

Analysts employed by non-US                The Goldman Sachs Group, Inc. does and seeks to do business with companies covered in its research
affiliates are not registered/qualified    reports. As a result, investors should be aware that the firm may have a conflict of interest that could
as research analysts with FINRA in         affect the objectivity of this report. Investors should consider this report as only a single factor in making
the U.S.                                   their investment decision. For Reg AC certification, see the end of the text. Other important disclosures
                                           follow the Reg AC certification, or go to www.gs.com/research/hedge.html.
Global Investment Research
Tractebel (TBLE3.SA)           Eli Lilly & Company            LLY        S/N      ↓ $4.59   $4.63   (0.8%)   ↓ $4.56   $4.67   (2.4%)   Dec
Urban Outfitters Inc. (URBN)
Usiminas (USIM3.SA)            EnerSys Inc.                   ENS        B/N      ↓ $2.08   $2.12   (2.1%)    $2.41    unch      --     Mar
Usiminas (USIM5.SA)            Express, Inc.                 EXPR        B/N      ↑ $1.29   $1.28   0.8%     ↑ $1.52   $1.51   0.8%     Jan
Viacom Inc. (VIA__B)
                               Hospira, Inc.                  HSP        B/N       $3.43    unch      --     ↑ $4.15   $4.09   1.4%     Dec
                               The Estee Lauder Companies
                                                               EL        N/N      ↓ $2.97   $3.12   (4.7%)   ↓ $3.48   $3.52   (1.1%)   Jun
                               Inc.
                               Lojas Renner                 LREN3.SA     N/N      ↑ R$2.32 R$2.29   1.3%     R$2.69    unch      --     Dec
                               Nordstrom, Inc.                JWN        N/N      ↑ $2.60   $2.57   1.2%     ↑ $2.95   $2.93   0.7%     Jan
                               Nvidia Corp.                  NVDA        N/A      ↓ $0.65   $0.70   (7.6%)    $0.90    unch      --     Jan
                               OGX Petróleo e Gás
                                                            OGXP3.SA     B/A      ↑ R$0.06 R$0.05   21.2%    R$0.08    unch      --     Dec
                               Participações S.A.
                               Perrigo Co.                   PRGO        S/N      ↑ $3.46   $3.14   10.4%    ↑ $3.82   $3.50   9.1%     Jun
                               Sara Lee Corp.                 SLE        NR       ↑ $1.09   $1.08   1.4%     ↓ $1.11   $1.13   (1.2%)   Jun
                               Usiminas                     USIM3.SA     N/N      ↓ R$2.52 R$3.27 (23.0%) ↓ R$6.05 R$7.01 (13.6%)       Dec
                               Usiminas                     USIM5.SA     N/N      ↓ R$2.52 R$3.27 (23.0%) ↓ R$6.05 R$7.01 (13.6%)       Dec


                               Other Headlines
                               Basic Materials
                               Usiminas (USIM3.SA): Lowering 2010E EBITDA by 15%; retain Neutral rating                                        6

                               Consumer Cyclicals
                               Nordstrom, Inc. (JWN): 2Q and guidance in line; inventory build leaves little room for error                   7
                               Bally Technologies, Inc. (BYI): First Take: Results and guidance support our bearish call                       8
                               Americas: Entertainment: Goldman Sachs Weekly Entertainment Playlist                                            9
                               Advance Auto Parts Inc. (AAP): It has operating leverage, too; raising estimates further                       10
                               Lojas Renner (LREN3.SA): Openings and SSS growth take centre stage as margins stabilize                        11
                               The Buckle, Inc. (BKE): Tweaking BKE model                                                                     12
                               Americas: Retail: Specialty Apparel & Accessories: Tweaking select specialty apparel models                    13

                               Consumer Staples
                               Sara Lee Corp. (SLE): Adjusting estimates post FY4Q10 EPS                                                      14
                               The Estee Lauder Companies Inc. (EL): Let it lie; less leverage limiting eleven                                15

                               Energy
                               EnerSys Inc. (ENS): EnerSys build quarter portends stronger 2H11; 2Q review                                    16
                               OGX Petróleo e Gás Participações S.A. (OGXP3.SA): OGX poised to break the range on the
                                                                                                                                              17
                               upside? We remain buyers

                               Financial Services
                               BR Properties (BRPR3.SA): BR Properties acquires unique AAA office building in Rio de Janeiro                  18
                               BM&F Bovespa (BVMF3.SA): First Take: 2Q beat on lower expenses and higher financial income                     19
                               Rossi (RSID3.SA): First Take: 2Q10 impressively strong on growth and profitability                             20
                               Credicorp (BAP): First Take: 2Q2010 in line; lower provisions offset by flattened NIM                          21
                               Latin America: Banks: More constructive on 2010, but multiples seem rich; retain Sell on SAN
                                                                                                                                              22
                               and BCH
                               Brazil: Specialty Finance: Diversified: RDCD3 and CIEL3: Looking back and looking forward; two
                                                                                                                                              23
                               key questions yet unanswered

                               Healthcare
Perrigo Co. (PRGO): Post F4Q - outlook unchanged, under-appreciated risk remains                 24

Technology
Nvidia Corp. (NVDA): Margin outlook better than expected, revenue momentum still weak            25
Autodesk Inc. (ADSK): Pent-up demand still in command, though macro challenges loom              26
Autodesk Inc. (ADSK): Strong P&L, in-line guidance                                               27

Transportation
OHL Brasil (OHLB3.SA): First Take: In line operating results; 2Q capex up, but still below GSe   28
CCR (CCRO3.SA): First Take: Weak 2Q results impacted by higher operating expenses                29

Utilities
Tractebel (TBLE3.SA): First Take: Solid 2Q2010 results, slightly below consensus                 30
Americas Morning Summary                                                                                                           August 13, 2010




Focus Items

Precious Metals: Gold market poised for a rally as US real rates head lower                                                                     1

                                 David Greely (New York): david.greely@gs.com, (212) 902-2850
                                 Goldman Sachs & Co.
                                 Damien Courvalin (New York): damien.courvalin@gs.com, (212) 902-3307
                                 Goldman Sachs & Co.

                                 Gold prices have sold off on lower speculative positioning …
                                 After rallying to a record high in June, gold prices have declined on a sell-off in speculative futures positions
                                 and gold-ETF holdings. Although the sell-off in speculative positions might not be surprising given the rise to
                                 a record-high price and decreased concerns over European sovereign debt, it stands in sharp contrast to the
                                 movements in US real interest rates, which have fallen to near-decade lows.
                                 … however significantly lower US real rates point to higher prices
                                 Under our gold framework, COMEX gold market positioning tends to reflect US real interest rates, with low
                                 US rates driving a high level of net speculative length in gold futures. Consequently, the recent decline in gold
                                 net speculative length, even as 10-year US TIPS yields fall below 1.00%, suggests that the gold market is
                                 now oversold, and we expect increasing speculative long positions to carry gold prices back toward our 6-
                                 month COMEX gold price forecast of $1,300/toz.
                                 Renewed quantitative easing measures by the US Fed would be an effective catalyst to drive gold
                                 prices higher
                                 We expect the current low real interest rate environment to continue as our US economics team recently
                                 lowered their US growth outlook for 2011, with the implication that the US Federal Reserve will likely keep
                                 short-term US interest rates low through 2011. This should provide further upside support to gold prices and
                                 raise the upside risk to our current gold price forecasts. In addition, our US economics team also expects that
                                 the US Federal Reserve will return to quantitative easing measures in late 2010 or early 2011. We believe
                                 that a return to quantitative easing could act as a strong catalyst to carry gold prices to higher levels.



Americas: Asset Managers: Money manager barometer: Bond fund flows remain strong, equity outflows                                               2
slow

                                 Marc Irizarry (New York): marc.irizarry@gs.com, (212) 902-4175
                                 Goldman Sachs & Co.
                                 Alexander Blostein, CFA (New York): alexander.blostein@gs.com, (212) 357-9976
                                 Goldman Sachs & Co.

                                 Equity outflows slow, bond fund flows strong, while MMF’s inflow
                                 Our preliminary estimates and Lipper FMI data suggest equity fund outflows for the current week slowed to
                                 $375 mn, versus -$2.9 bn for the prior week. This was led by inflows in the non-US funds, slightly offsetting
                                 the outflows in the domestic funds. Bond fund inflows came in at $7.9 bn, driven by solid inflows in the
                                 corporate IG and international & global debt funds. This compares to +$7.8 bn in the prior week. MMF’s
                                 inflowed for the third consecutive week, with $3.5 bn, compared to +$18.7 bn in the prior week. This takes the
                                 4-week moving average to +$1.6 bn.
                                 ETF flow update
                                 Equity ETF’s (ex-comm) outflowed for the week of 8/11 with $190 mn, compared to inflows of $2.9 bn in the
                                 prior week, led by weakness in the growth value funds. Commodity ETF’s continue to outflow with $160 mn
                                 compared to -$181 mn last week. Bond ETF’s were flat with $83 mn of inflows, compared to -$76 mn last
                                 week.
                                 Equity and fixed income fund performance
                                 3Q10TD equity asset weighted performance for the group was +5.0%, versus the S&P500 at +5.1%. CNS
                                 ranks at the top with +9.0% in equity asset-weighted performance, followed by AB and EV with 7.1% and
                                 5.7% respectively. FI performance for the group 3QTD is +1.8%.
                                 Positive on our BUY-rated alternative asset managers
                                 We believe that an increase in sponsor-led M&A’s, coupled with the decline in average equity contribution in




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                     August 13, 2010



                                           LBO transactions create favorable dynamics for PE firms to deploy capital. This will benefit alternative asset
                                           managers who are sitting on c. $500 bn of dry powder. Further, valuations look attractive, with the alternative
                                           managers trading 7.7X vs. the traditional managers at 13.7X (2011 estimates). We continue to be positive on
                                           our Buy-rated BX (CL), KKR and FIG, as we believe that the performance fee potential is not priced into the
                                           stock price, with the stocks trading below management fee plus net cash and investments value. For more
                                           details, please refer to our note “Misunderstood and mispriced. Still see significant value in alternative asset
                                           managers”, published on 8/11.



Eli Lilly & Company (LLY): Strattera loss cuts into cushion                                                                                               3

LLY, $36.60                                Jami Rubin (New York): jami.rubin@gs.com, (212) 357-7536
Market cap                 $40,224 mn
                                           Goldman Sachs & Co.
                                           Florence Tsang, CFA (New York): florence.tsang@gs.com, (212) 357-3567
Target price                     $32.00
                                           Goldman Sachs & Co.
Fiscal y/e Dec         2010E     2011E     Sebastian Paquette, CFA (New York): sebastian.paquette@gs.com, (212) 902-5306
EPS ($)                   4.59     4.56    Goldman Sachs & Co.
P/E                       8.0X     8.0X

EPS Quarter/Interim*      1.24     1.12
                                           What's changed
                                           Today, the NJ District Court ruled against LLY, declaring its 2017 method of use patent on Strattera invalid
Investment Lists                           due to lack of enablement/utility. The decision opens the door for at-risk launches from the 10 generic
                   Americas Sell List      companies that have filed ANDAs for generic Strattera. LLY plans to appeal, but a lower court ruling against
Coverage view                    Neutral   LLY prevents treble damages – giving generic companies incentive to launch at-risk. LLY is lowering 2010
                                           revenue guidance today to low-mid-single digits (from mid-single) but maintains its 2010 EPS guidance. We
*Current and a year ago
                                           estimate US Strattera represents $0.15 in EPS, and generics to launch in Sept. We are reflecting the impact
                                           of generic Strattera in the US in our model and now model 2010E/2011E/ 2012E EPS of $4.59/$4.56/$4.02
                                           from $4.63/$4.67/$4.15.
                                           Implications
                                           While Strattera did not represent a mega blockbuster (US Straterra sales at an annual run-rate of $400 mn),
                                           this was an unexpected product loss not anticipated until 2017. Moreover, this is now the second patent court
                                           case loss (Gemzar) this year, which the market largely shrugged off. LLY’s stock has rallied 11% since July 1
                                           vs. 6% for rest of the sector due its 5.4% dividend yield. The loss of Strattera puts additional pressure on
                                           LLY’s ability to maintain its dividend – a key investor concern, given the overhang of the impending patent
                                           cliff. Additionally, it restricts business development capacity, which is critical to bolstering its long-term
                                           outlook. We continue to prefer Buy-rated PFE ($16.20) over LLY due to its increasingly divergent outlooks,
                                           which we see as not reflected in valuations. PFE trades at 7.4X on our 2010 EPS vs. LLY’s 8.0X. However,
                                           this widens to PFE trading at 6.8X on our 2015 EPS vs. LLY’s 13.9X despite respective 2011E-2015E EPS
                                           CAGRs of +2% and -13%.
                                           Valuation
                                           We maintain our Sell rating and our 12 month PT of $32 (7X 2011E EPS).
                                           Key risks
                                           Ability to turn around LT growth through pipeline and business development.




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                     August 13, 2010




Hospira, Inc. (HSP): Framing the potential outcomes for Taxotere and 2011E EPS                                                                              4

HSP, $51.71                                 David H. Roman (New York): david.roman@gs.com, (212) 902-7839
Market cap                   $8,584 mn
                                            Goldman Sachs & Co.
                                            Nikhil Hanmantgad (New York): nikhil.hanmantgad@gs.com, (212) 357-4031
Target price                      $64.00
                                            Goldman Sachs & Co.
Fiscal y/e Dec            2010E   2011E     Kunal Singh, CFA (Bangalore): kunal.singh@gs.com, (212) 934-6546
EPS ($)                    3.43     4.15    Goldman Sachs & Co.
P/E                       15.1X    12.5X

EPS Quarter/Interim
                      *
                           0.72     0.90
                                            What's changed
                                            With a court ruling expected in the next three months on generic Taxotere (docetaxel), our patent experts
Investment Lists                            have assessed the potential outcomes of the trial (Sanofi Aventis vs. Hospira and Apotex) and suggested
                      Americas Buy List     that the most likely outcome is that the patents are invalidated, paving the way for generic competition
Coverage view                     Neutral   following pediatric exclusivity expiration on November 14. As of now, Hospira is the only company with
                                            tentative approval for the drug, and we would not expect Sun or Sandoz to gain approval until at least mid-
*Current and a year ago
                                            2011.
                                            Implications
                                            Based on an analysis of normalized EPS, the company’s restructuring program, and potential outcomes for
                                            Taxotere, we raise our 2011E EPS from $4.09 to $4.15 based on higher margins associated with new
                                            products and restructuring. This compares to consensus of $4.03. Separately, we lower our 2012 and 2013
                                            numbers from $4.91/$5.51 to $4.82/$5.40 on higher R&D spending associated with generic biologics,
                                            increased price competition on certain generics in 2012, and a higher tax rate. Overall, we see recent
                                            weakness as a buying opportunity in HSP, as shares are down 9.2% vs. the S&P 500 -2.7%, and our long-
                                            term thesis is intact. We expect to learn more on the generic biologics opportunity at Hospira’s “Biosimilars
                                            101” investor day on August 19, 2010.
                                            Valuation
                                            We lower our 12-month price target from $66 to $64 (based on P/E, DCF and GS M&A framework) as a
                                            result of lower projected growth and a decline in peer group multiples. From a risk/reward perspective, we
                                            see downside to $47 (based on 2011E EPS of $3.90) and potential upside to $72 (based on 2011E EPS of
                                            $4.50).
                                            Key risks
                                            Risks to our view and price target include delays in new product launches, contract loss in Medication
                                            Management Systems, and failure to execute on Project FUEL initiatives.



Americas: Retail: Specialty Apparel & Accessories: Apparel 2Q Preview: Expect a sloppier quarter with                                                       5
more challenges ahead

                                            Michelle Tan, CFA (New York): michelle.tan@gs.com, (212) 902-3099
                                            Goldman Sachs & Co.
                                            Nicole Shevins (New York): nicole.shevins@gs.com, (212) 902-9884
                                            Goldman Sachs & Co.
                                            Kamal Suri (Bangalore): kamal.suri@gs.com, (212) 934-6797
                                            Goldman Sachs India SPL

                                            2Q10: Expect sloppier results and guidance
                                            From 1Q09-1Q10, sales trends accelerated in virtually every quarter and earnings seasons were marked by a
                                            high percentage of positive revisions. In fact it has been three quarters since we have seen a headline miss.
                                            In 2Q10, we expect sales deceleration to result in a much more mixed picture, with misses matching beats
                                            and very few upward revisions to FY10 consensus.
                                            More challenges ahead as sales poised to decelerate and inventories build
                                            While stocks already reflected 2Q softness, we do not believe we have seen the trough in sector trends on an
                                            absolute basis, or relative to consensus expectations. From a top-line perspective, underlying demand drivers
                                            look soft, in our view, suggesting very moderate growth as tougher 2H compares are lapped; From a margin
                                            perspective the outlook is even more challenging, with notably bigger 2H inventory bets and product costs
                                            shifting from a tailwind to a headwind. We estimate at least 80% of our coverage has planned inventory/ft up




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                         August 13, 2010



                                            vs. increases for only 55% and 15% for the last 2 quarters respectively.



                                            Stay very selective
                                            We remain wary of sector/cyclical plays in the group. Our Buys (ANF, LULU, EXPR), focus on company
                                            specific drivers can drive earnings growth and help buck sector trends in coming quarters. With 2Q prints, we
                                            see potential for positive news from all three with most upside for LULU given strong momentum from young
                                            stores ramping up the maturity curve, the relative attractiveness of LULU’s growth profile in a slow growth
                                            environment, and very high short interest.
                                            While the bad news is largely out on 2Q, we see continuing downside risk to estimates and stocks in 2H. Our
                                            Sells (CHS, GPS, BKE) focus on relatively mature brands with specific drivers of above trend growth that are
                                            now fading; here we see the greatest risk of 2H misses as reversion to more normal sales/margin trends add
                                            a layer of deceleration on top of broader sector softness. With the 2Q print, we see the biggest potential for
                                            disappointment from CHS, as GPS and BKE have already reported sales; CHS has not yet commented on
                                            top-line and promotions suggest meaningful deterioration through the quarter.




Other Headlines
Basic Materials

Usiminas (USIM3.SA): Lowering 2010E EBITDA by 15%; retain Neutral rating                                                                                      6

USIM3.SA, R$48.59                           Marcelo Aguiar (Sao Paulo): marcelo.aguiar@gs.com, +55(11)3371-0771
Market cap                R$23,984 mn
                                            Goldman Sachs Brasil Bco Múlt S.A.
                                            Pedro Grimaldi (Sao Paulo): pedro.grimaldi@gs.com, +55(11)3371-0743
Target price                     R$53.00
                                            Goldman Sachs Brasil Bco Múlt S.A.
Fiscal y/e Dec         2010E      2011E     Tais Correa (Sao Paulo): tais.correa@gs.com, +55(11)3371-0833
EPS (R$)                  2.52      6.05    Goldman Sachs Brasil Bco Múlt S.A.
P/E                    19.3X        8.0X

EPS Quarter/Interim*      0.53      0.92
                                            What's changed
                                            We revise our Usiminas valuation model to incorporate 2Q2010 results. In our view, 2H2010 will present a
Investment Lists                            challenging environment for steel companies in Brazil and elsewhere due to higher cost pressure vs. lower
                                  Neutral   demand growth/weaker price environment. Brazilian steel distributors’ inventories are above normalized
Coverage view                     Neutral   levels, imports remain at a high level, and domestic price premiums have widened lately. These factors will
                                            likely curtail domestic price hikes and could lead to a reduction of domestic market exposure during 3Q. The
*Current and a year ago
                                            good news is that international steel prices seems to be at trough, but visibility of sustainable recovery is still
                                            poor due to weaker demand in some regions and higher steel output.
USIM5.SA, R$48.15                           Implications
Market cap                R$23,767 mn       The investment case for steel stocks in the short term does not look appealing, given the weaker earnings
                                            trend. Weaker domestic steel markets will likely force USIM to export a higher percentage of its production
Target price                     R$53.00    with margins close to 0% on low international steel prices. For 2011, we expect both domestic and
Fiscal y/e Dec         2010E      2011E     international steel prices to recover on higher raw material costs and a better sales mix (with a higher
EPS (R$)                  2.52      6.05
                                            percentage of domestic sales) leading the EBITDA margin to recover from a 2010E average of 21% to 33%
                                            in 2011. We cut our 2010E EBITDA/EPS by 15%/23% on lower realized prices and a worse sales mix.
P/E                    19.1X        8.0X    Usiminas’ ore business remains poorly priced even after the Sumitomo deal, but progress on the port project
EPS Quarter/Interim*      0.53      0.92    by year’s end could be an important driver of re-valuation.
Investment Lists                            Valuation
                                            Our 12-month target price (DCF and EV/EBITDA) goes to R$53 from R$62 on lower estimates. Our
                                  Neutral
                                            2010/2011/2012 EPS go to R$2.52/R$6.05/R$6.75 from R$3.27/R$7.01/R$7.85 due to lower average
Coverage view                     Neutral   realized prices.
*Current and a year ago                     Key risks
                                            Risks to our price target include weaker domestic and international steel prices, higher raw material prices,
                                            and worse-than-expected sales mix.




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                     August 13, 2010



Consumer Cyclicals

Nordstrom, Inc. (JWN): 2Q and guidance in line; inventory build leaves little room for error                                                              7

JWN, $33.44                                 Adrianne Shapira (New York): adrianne.shapira@gs.com, (212) 357-4174
Market cap                   $7,342 mn
                                            Goldman Sachs & Co.
                                            Morry Brown, CFA (New York): morry.brown@gs.com, (212) 357-0648
Target price                      $38.00
                                            Goldman Sachs & Co.
Fiscal y/e Jan            2011E   2012E     Stephen Grambling, CFA (New York): stephen.grambling@gs.com, (212) 902 7832
EPS ($)                    2.60     2.95    Goldman Sachs & Co.
                                            Scott Kaufman-Ross (New York): scott.kaufman-ross@gs.com, (212) 934-4206
P/E                       12.9X    11.4X
                                            Goldman Sachs & Co.
                      *
EPS Quarter/Interim        0.49     0.38

Investment Lists
                                            What's changed
                                  Neutral   JWN reported 2Q EPS of $0.66 in line with GS/consensus of $0.66. A gross margin higher than our estimate
Coverage view                     Neutral   was offset by higher SG&A and a slightly lower share count. Management reiterated prior fiscal year
                                            guidance of $2.50-$2.65 on a 4%-6% SSS increase, with modest alterations to items below the top line
*Current and a year ago
                                            (lower credit revenues, lower credit SG&A, but higher retail SG&A). We are modestly increasing our
                                            2010/2011/2012 EPS to $2.60/$2.95/$3.25 from $2.57/$2.93/$3.20 based on higher 3Q SSS.
                                            Implications
                                            JWN’s 2Q results and FY guidance were almost entirely in line with expectations, aside from offsetting
                                            guidance shifts within the credit segment and SG&A. We do, however, note the following points.
                                            (1) SSS guidance implies a +2% comp in 2H. The high end of the company’s +4%-6% guidance implies a
                                            roughly +2% comp for 2H. While 3Q is likely to come in stronger than 4Q given easier compares, comps in
                                            the low-single-digit range are substantially below 2Q’s +8.4% comp increase.
                                            (2) Inventory increase adds risk. Inventories ended the quarter up 8.7% on a per square foot basis.
                                            Management acknowledged that some pockets of the Anniversary sale performed below inventory plan,
                                            leading to the increase. While the company believes it can move through this merchandise without needing
                                            incremental markdowns, the increase leaves little margin for error should 3Q sales get off to a slow start.
                                            With SSS growth decelerating and inventory above plan, we remain Neutral on JWN, as we do not see a
                                            near-term catalyst to push shares higher.
                                            Valuation
                                            Our $38, 12-month price target is based on 13X our FY2011 EPS estimate.
                                            Key risks
                                            Risks include macro-induced SSS volatility and inventory overages.



Bally Technologies, Inc. (BYI): First Take: Results and guidance support our bearish call                                                                 8

BYI, $31.18                                 Steven Kent, CFA (New York): steven.kent@gs.com, (212) 902-6752
Market cap                   $1,590 mn
                                            Goldman Sachs & Co.
                                            Eli Hackel (New York): eli.hackel@gs.com, (212) 902-9672
Target price                      $31.00
                                            Goldman Sachs & Co.
Fiscal y/e Jun            2010E   2011E

EPS ($)                    2.10     2.33    News
P/E                       14.8X    13.4X    After the close, Bally reported 4QFY10 EPS of $0.48 (excluding a $0.38 gain on the sale of Rainbow Casino,
                                            $0.02 for taxes, $0.02 for FX and $0.03 for discontinued ops) below our $0.51 estimate and consensus of
EPS Quarter/Interim*       0.51     0.58
                                            $0.56. Revenues beat us by $12mn ($195mn vs. our estimate of $183mn) driven by gaming equipment
Investment Lists                            (higher prices and number of machines) and gaming operations (higher installed base and yields). However,
                      Americas Sell List    EBIT margins were 100 bp below our forecast (24.8 % vs. GS 25.8 %) due to higher SG&A and gaming
Coverage view                  Cautious
                                            operations expense. A higher tax rate drove the $0.03 miss.
                                            Bally initiated FY2011 EPS guidance of $2.05 to $2.40 below consensus of $2.46 and vs. our $2.33 estimate.
*Current and a year ago                     The tepid guidance assumes the weak replacement cycle (see “Downgrade Slots to Cautious; downgrade
                                            IGT and Bally to Sell” on 6/15/2010) will continue and assumes that the incremental new markets of Italy and
                                            Illinois will contribute to revenues in 2H2011. Separately, Bally announced that its well respected CFO Robert
                                            Caller was retiring and will be replaced by Neil Davidson, who investors are familiar with and is well regarded.
                                            Analysis




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                             August 13, 2010



                                 The operating results of this quarter were slightly better than our below consensus forecast but management
                                 commentary about the weak replacement cycle coupled with our own channel checks suggest that the
                                 industry may experience slow growth for an extended period of time. In addition the company on its call
                                 cautioned about a slow adoption of its Alpha2 and indicated it could take nine to twelve months to ramp up
                                 which could put pressure on its market share.
                                 Implications
                                 We believe shares will trade lower tomorrow given the below consensus guidance and the weak outlook. No
                                 change to our estimates or price target.



Americas: Entertainment: Goldman Sachs Weekly Entertainment Playlist                                                                              9

                                 Drew Borst (New York): drew.borst@gs.com, (212) 902-7906
                                 Goldman Sachs & Co.
                                 James Mitchell, CFA (New York): james.mitchell@gs.com, (212) 357-1849
                                 Goldman Sachs & Co.
                                 Brian Karimzad (New York): brian.karimzad@gs.com, (212) 357-1745
                                 Goldman Sachs & Co.
                                 Grace Huan (New York): grace.huan@gs.com, (212) 357-8280
                                 Goldman Sachs & Co.

                                 In the spotlight
                                 US video game software sales fell 8% yoy in July, according to NPD, vs. consensus expectations for a 10%
                                 yoy decline. This compares to a year-ago comp of -26% yoy. Sales were primarily driven by major titles
                                 including NCAA Football 11 and Crackdown 2, though sales of July’s biggest release, Activision Blizzard’s
                                 StarCraft 2, were excluded from July video game results (NPD includes it in PC Games data). Year-to-date,
                                 video game software sales trends have only turned positive in March and May.
                                 Box office snapshot
                                 Last weekend’s domestic box office finished 9% lower yoy. Quarter-to-date the domestic box office is up 8%
                                 yoy and YTD it is up 4% yoy.
                                 In theaters: Rocky vs. Pretty Woman
                                 The Expendables (R, Lionsgate) – Written and directed by Sylvester Stallone, this action flick features a
                                 large, testosterone fueled cast, including “Transporter” star Jason Statham, Dolph Lundgren, Jet Li, Terry
                                 Crews, and UFC fighter Randy Couture. Bruce Willis and Arnold Schwarzenegger even make brief cameos.
                                 In the film, Stallone leads a rag tag group of mercenaries on a dangerous mission to save an island nation.
                                 Consensus calls for a ~$30 mn opening weekend in ~3,300 theaters.
                                 Eat Pray Love (PG-13, Sony) – Adapted from Elizabeth Gilbert’s 2006 memoir of the same name, this film
                                 features Julia Roberts as a writer who decides to travel around the world after her marriage collapses. Italy,
                                 India, and Bali provide gorgeous backdrops for Roberts as she indulges her senses and struggles to get over
                                 her divorce. Despite average reviews, this film will likely attract a large female audience, including fans of the
                                 original book. Opening in ~3,100 theaters, “Eat Pray Love” may gross ~$25 mn.
                                 Scott Pilgrim vs. the World (PG-13, Universal) – This comic book-inspired comedy features Michael Cera as
                                 Scott Pilgrim, a sarcastic, socially awkward guy who goes to great lengths to pursue the girl of his dreams (a
                                 role he knows all too well). When Scott meets Ramona Flowers, a delivery girl with hot-pink hair, he’s
                                 instantly smitten. But first, he must battle her “seven evil exes.” With several video game flourishes (points
                                 totals pop up on the screen during fight sequences), this film will likely appeal to young male audiences.
                                 Opening in ~2,900 theaters, this film may gross ~$20 mn.




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                     August 13, 2010




Advance Auto Parts Inc. (AAP): It has operating leverage, too; raising estimates further                                                                10

AAP, $54.62                                  Matthew J. Fassler (New York): matt.fassler@gs.com, (212) 902-6740
Market cap                   $4,599 mn
                                             Goldman Sachs & Co.
                                             Ryan Brinkman (New York): ryan.brinkman@gs.com, (917) 343-9516
Target price                       $61.00
                                             Goldman Sachs & Co.
Fiscal y/e Dec            2010E    2011E     Mark-Andre Saucier-Nadeau (New York): mark-andre.saucier-nadeau@gs.com, (212) 902-3668
EPS ($)                    3.86      4.30    Goldman Sachs & Co.
                                             Robert Higginbotham, CFA (New York): robert.higginbotham@gs.com, (212) 902-4611
P/E                       14.1X     12.7X
                                             Goldman Sachs & Co.
                      *
EPS Quarter/Interim        0.89      0.69    Jonathan Baucom (New York): jonathan.baucom@gs.com, (212) 934-4213
Investment Lists                             Goldman Sachs & Co.
                                   Neutral

Coverage view                      Neutral   What's changed
*Current and a year ago
                                             We are further raising our forecast for AAP, having also hiked estimates after our initial read of the numbers
                                             Wednesday night, based on signs that expense growth is poised to moderate, enabling more potent
                                             operating leverage. To date, the story was based on same-store growth – solid, along with the sector, gross
                                             margin expansion, and cash flow from better working capital management. That said, expense management
                                             was elusive, and operating leverage was typically limited relative to same-store sales growth. In 2Q2010,
                                             AAP beat our cost forecast and spoke to less SG&A growth ahead. The firm is still investing, more so than
                                             most, giving us confidence in the sustainability of the operating story. AAP has yet to prove that it can
                                             generate sustainable outsized sales growth without investing, but we think this period of harvesting, with
                                             leverage in marketing, commercial sales, and distribution, proves lucrative.
                                             Implications
                                             We see a stronger margin story developing at AAP, as the improvement in gross margin is now augmented
                                             by slower investment spending. We lowered our SG&A forecast to reflect slower investment growth, in part
                                             offset by higher incentive compensation expense in the back half of the year. Our 2010 estimate goes to
                                             $3.86, up $0.06 from last night and $0.20 since before the print; 2011 goes to $4.30 from $4.25 ($4.10 before
                                             the print); and, 2012 goes to $4.85 from $4.75 ($4.55 before the print).
                                             Valuation
                                             We are raising our 12-month price target to $61 from $60 to reflect our upwardly revised forecast and the
                                             mark-to-market of the variable component of our valuation framework. Our price target is derived from a
                                             blend of risk/reward analysis on P/E and DCF valuation.
                                             Key risks
                                             Downside risks to our view and price target include moderating sales trends; upside risks include strong
                                             expense disciplines.



Lojas Renner (LREN3.SA): Openings and SSS growth take centre stage as margins stabilize                                                                 11

LREN3.SA, R$55.40                            Irma Sgarz (Sao Paulo): irma.sgarz@gs.com, +55(11)3371-0728
Market cap                  R$6,753 mn
                                             Goldman Sachs Brasil Bco Múlt S.A.
Target price                      R$61.30
                                             What's changed
Fiscal y/e Dec            2010E    2011E
                                             We update estimates for better-than-expected 2Q10 results (reported July 29) and revised macro forecasts
EPS (R$)                   2.32      2.69    (softer hikes in SELIC rate; slightly lower GDP growth). Our 2010E/2012E EPS are up 2% on average to
P/E                       23.8X     20.6X    R$2.32/R$3.23.
EPS Quarter/Interim
                      *
                           0.34      0.25    Implications
                                             Renner delivered impressive margins in 2Q10, extending gains that started with the rebound in sales late last
Investment Lists
                                             year and glazing over an average same-store sales performance (7%). While improvements in sourcing, mix,
                                   Neutral   and demand planning should lead to sustainable gross margin gains, we expect part of this to be offset by
Coverage view                      Neutral   start-up expenses from accelerated store openings. Renner’s stores have a longer maturity curve (3-5 years
                                             vs. 1.5 for Lojas Americanas and less than 3 for Drogasil), which should limit EBITDA margin expansion from
*Current and a year ago
                                             operating leverage in the near term. We therefore expect growth beyond 2010 to be driven predominantly by
                                             the top line (2011E-2013E CAGR of 21% vs. 22% for EBITDA). This shifts the focus of expectations to
                                             execution in same-store sales and store openings. Both appear on track for now, with SSS growth trending




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                  August 13, 2010



                                           toward double-digits (GS 2010E +10.1%) and locations/ timing for the year’s remaining nine store openings
                                           are set.
                                           Valuation
                                           Our only concern is valuation: after 26% outperformance in three months, shares trade at a 12% and 6%
                                           premium to historic trading averages for forward EV/EBITDA and P/E. We raise our 12-month price target to
                                           R$61.30 (from R$56.60), as we raise sales and EBITDA estimates in the out years (from 2012) on
                                           sustainable gains in sourcing, inventory management and expense control. Our valuation is based on an
                                           equal-weighted blend of a DCF and a target multiple of 11X forward EV/EBITDA.
                                           Key risks
                                           Risks to the up/(down)side include (1) better (worse) same-store sales growth, driving greater (smaller)
                                           margin gains from operating leverage; and (2) execution risks in the accelerated opening plan with small
                                           formats.



The Buckle, Inc. (BKE): Tweaking BKE model                                                                                                             12

BKE, $26.42                                Nicole Shevins (New York): nicole.shevins@gs.com, (212) 902-9884
Market cap                  $1,242 mn
                                           Goldman Sachs & Co.
                                           Michelle Tan, CFA (New York): michelle.tan@gs.com, (212) 902-3099
Target price                     $25.00
                                           Goldman Sachs & Co.
Fiscal y/e Jan         2011E     2012E     Kamal Suri (Bangalore): kamal.suri@gs.com, (212) 934-6797
EPS ($)                   2.56     2.10    Goldman Sachs India SPL
P/E                    10.3X      12.6X

EPS Quarter/Interim*      0.48     0.54
                                           Changes and Implications
                                           We have updated our BKE model slightly. We do not view these changes as material, and there is no change
Investment Lists                           to our investment thesis, rating or price target.
                   Americas Sell List      For methodology and risks associated with our price target, please see our previously published research.
Coverage view                    Neutral

*Current and a year ago




Americas: Retail: Specialty Apparel & Accessories: Tweaking select specialty apparel models                                                            13

                                           Michelle Tan, CFA (New York): michelle.tan@gs.com, (212) 902-3099
                                           Goldman Sachs & Co.
                                           Nicole Shevins (New York): nicole.shevins@gs.com, (212) 902-9884
                                           Goldman Sachs & Co.
                                           Kamal Suri (Bangalore): kamal.suri@gs.com, (212) 934-6797
                                           Goldman Sachs India SPL

                                           Tweaking ANN, CHS, EXPR, and RUE models
                                           Following same-store sales trends reported by peers for July, we are tweaking our models for ANN, CHS,
                                           EXPR, and RUE. We do not view these changes as material, and there is no change to our investment
                                           thesis, rating or price target.
                                           For methodology and risks associated with our price target, please see our previously published research.




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                      August 13, 2010



Consumer Staples

Sara Lee Corp. (SLE): Adjusting estimates post FY4Q10 EPS                                                                                                 14

SLE, $14.37                                 Judy E. Hong (New York): judy.hong@gs.com, (212) 902-0490
Market cap                  $10,259 mn
                                            Goldman Sachs & Co.
                                            Tyler Walling (New York): tyler.walling@gs.com, (212) 934-0495
Fiscal y/e Jun            2010E   2011E
                                            Goldman Sachs & Co.
EPS ($)                    1.09     1.11

P/E                       13.2X    13.0X    Changes and Implications
EPS Quarter/Interim
                      *
                           0.22     0.27    We have updated our estimates for FY2010, FY2011, and FY2012 to $1.09, $1.11, and $1.19. We note our
                                            estimates do not include share buybacks associated with the cash from the possible asset sales scheduled to
Investment Lists
                                            close this year. We do not view these changes as material, and there is no change to our investment thesis
                             Not Rated      or rating.
                                            For methodology and risks associated with our price target, please see our previously published research.
*Current and a year ago




The Estee Lauder Companies Inc. (EL): Let it lie; less leverage limiting eleven                                                                           15

EL, $58.80                                  Andrew Sawyer, CFA (New York): andrew.sawyer@gs.com, (212) 902-5488
Market cap                  $11,671 mn
                                            Goldman Sachs & Co.
                                            Stephanie Whited (New York): stephanie.whited@gs.com, (212) 855-9812
Target price                      $58.00
                                            Goldman Sachs & Co.
Fiscal y/e Jun            2011E   2012E

EPS ($)                    2.97     3.48    What's changed
P/E                       19.8X    16.9X    June 4Q2010 EPS of $0.29 matched our estimate but was helped by $0.09 from a lower tax rate. We are
                                            lowering our June FY11 estimate by $0.15 to $2.97 to reflect (1) flow-through of the 4Q10 pre-tax miss with a
EPS Quarter/Interim*       0.75     0.85
                                            normalized FY11 tax rate, and (2) higher spend on R&D and on-line platforms in FY11. Our FY12/FY13
Investment Lists                            estimates go to $3.48/$4.02 from $3.52/$3.97 for better expected operating leverage in the out years on the
                                  Neutral   lower FY11 base.
Coverage view                     Neutral   Implications
                                            We maintain our Neutral rating on the stock, as we see balanced risks.
*Current and a year ago
                                            On the plus-side, Estee’s turnaround efforts are on a solid trajectory. The company is over-delivering on cost
                                            savings, FY10 cash generation was 50% above prior peak, and marketing investments have driven healthy
                                            market share. Margin growth may be more tempered in FY11 due to stepped-up re-investment. But even so,
                                            we remain comfortable with a forecast for 50 bp-70 bp out-year margin gains since EL should get solid
                                            leverage from sales growth due to better demonstrated cost control.
                                            That said, the solid multi-year outlook appears to be reflected in the stock price even after the pullback. Estee
                                            is at 18X CY2011E EPS, or a 20%-25% premium to other high-quality HHPC stocks such as Colgate and
                                            P&G. We see limited likelihood that the company will over-deliver on FY2011 EPS to help support its P/E
                                            premium. Estee set a relatively high organic sales growth bar of 5%-7% in a still-choppy consumer
                                            environment.
                                            Valuation
                                            We maintain our 12-month, P/E- and DCF-based price target of $58. This implies a 16X-17X multiple of June
                                            FY2012 EPS, which is a 10% premium to P&G and Colgate.
                                            Key risks
                                            The key upside risk is better-than-expected operating margins as part of restructuring. The key downside risk
                                            is a more muted sales recovery.




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                     August 13, 2010



Energy

EnerSys Inc. (ENS): EnerSys build quarter portends stronger 2H11; 2Q review                                                                             16

ENS, $22.52                                  Mark Wienkes, CFA (New York): mark.wienkes@gs.com, (212) 357-1986
Market cap                   $1,108 mn
                                             Goldman Sachs & Co.
                                             David Lefty (New York): david.lefty@gs.com, (212) 902-9429
Target price                       $29.00
                                             Goldman Sachs & Co.
Fiscal y/e Mar            2011E    2012E

EPS ($)                    2.08      2.41    What's changed
P/E                       10.8X      9.3X    EnerSys reported 1Q11 results of $435 mn in revenue, a sequential decrease of $15.6 mn and below our
                      *                      estimate and consensus of $450 mn. Revenue was below expectations mostly due to order push-outs and
EPS Quarter/Interim        0.45      0.26
                                             FX. Adjusted, non-GAAP EPS was $0.48, at the low end of the targeted range and $0.02 below our estimate,
Investment Lists                             but a record high for fiscal 1Q earnings. EnerSys targets 2Q2010 adj. EPS of $0.49-$0.53, excluding an
                      Americas Buy List      expected $0.06 restructuring charge. Also notable was the qoq 12% increase in backlog, to what now stands
Coverage view                      Neutral
                                             at a record level. With a current order run rate of about $8 mn per day, or $2 bn in annual revenue, EnerSys
                                             should enjoy a much improved 2HFY11. Fiscal 2011 remains an investment year, with capex of $60 mn-$65
*Current and a year ago                      mn, due to spending on the new manufacturing plant in China. We maintain our adjusted FY11 EPS estimate
                                             of $2.15.
                                             Implications
                                             EnerSys missed consensus and came in at the low end of its expected EPS range, particularly notable given
                                             solid historical performance vs. its own and consensus expectations. The stock reacted with a 5.3% decline
                                             today, incorporating the sluggish start to the year vs. expectations. We remain Buy rated on ENS based on
                                             good visibility into a 2H11 rebound in revenue and in fundamentals. With revenue growth set to accelerate,
                                             2H operating margins should expand as the restructuring program is completed and benefits flow through the
                                             financials. We believe that EnerSys’s strategy of targeting higher-margin opportunities in the US and Europe,
                                             at the potential expense of market share, should help to preserve long-term profitability in an otherwise
                                             commoditized market.
                                             Valuation
                                             Our six-month price target of $29 is based on a DCF valuation. At the current share price of $22.52, the stock
                                             trades at a FY2011 P/E of 10.5X.
                                             Key risks
                                             Slowing industrial production, increasing lead prices, unfavorable FX.



OGX Petróleo e Gás Participações S.A. (OGXP3.SA): OGX poised to break the range on the upside? We                                                       17
remain buyers

OGXP3.SA, R$18.75                            Arjun N. Murti (New York): arjun.murti@gs.com, (212) 357-0931
Market cap                 R$60,608 mn
                                             Goldman Sachs & Co.
                                             Stephen Graham (Sao Paulo): stephen.graham@gs.com, +55(11)3371-0831
Target price                      R$24.00
                                             Goldman Sachs Brasil Bco Múlt S.A.
Fiscal y/e Dec            2010E    2011E     Joe Citarrella (New York): joe.citarrella@gs.com, (212) 902-6787
EPS (R$)                   0.06      0.08    Goldman Sachs & Co.
P/E                          --         --

EPS Quarter/Interim
                      *
                           0.01     (0.01)
                                             What's changed
                                             OGX reported 2Q 2010 EPS of R$0.02/share, in-line with our R$0.01 estimate. It also provided an
Investment Lists                             operational update, which included an indicated success at its first well in the Parnaíba Basin and
                      Americas Buy List      encouraging results on its second well on block BM-C-40 on its northern Campos Basin acreage. We have
Coverage view                 Attractive     updated EPS estimates based on 2Q10 financials and operational updates from R$0.05 to R$0.06 in 2010E,
                                             2012E from R$0.60 to R$0.55, 2013E from R$1.05 to R$0.90, and introduced 2011 quarterly projections. We
*Current and a year ago
                                             introduce 2014, 2015 EPS of R$1.72 and R$2.64. We continue to assume OGX achieves first production in
                                             2011, with meaningful oil production growth thereafter.
                                             Implications
                                             While the heart of OGX’s success remains its three golden blocks in the southern Campos Basin (BM-C-
                                             41/42/43), we are encouraged to see increasingly broad-based drilling success in the Parnaíba Basin, the
                                             northern Campos, and in the Santos Basin. We have raised our mid-point discovered resource estimate to




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                     August 13, 2010



                                           4.65 billion BOE from 4.05 bn BOE to reflect recent successes, though have not changed our estimate of
                                           total discovered resource plus risked exploration of 7.5 bn BOE. As a result of assuming a greater amount of
                                           discovered resources, our mid-case net asset value increases to R$22 from R$19, and our overall mid-case
                                           net asset value (including risked exploration) is now R$27 vs R$26 before. Given ongoing drilling success
                                           and our updated valuation, we believe OGX should break through its recent R$17-R$18 trading range.
                                           Valuation
                                           We have raised our asset value-based 6 month target price to R$24 (from R$23) to reflect our updated
                                           analysis. We continue to set our target price in between our “discovered reserves only” and “all-in” net asset
                                           value.
                                           Key risks
                                           Key risks include (1) disappointing drilling results; (2) oil price volatility; (3) Brazil country risk; and (4)
                                           dependence on key executive, Mr. Eike Batista.



Financial Services

BR Properties (BRPR3.SA): BR Properties acquires unique AAA office building in Rio de Janeiro                                                            18

BRPR3.SA, R$13.80                          Leonardo Zambolin (Sao Paulo): leonardo.zambolin@gs.com, +55(11)3371-0727
Market cap                R$1,920 mn
                                           Goldman Sachs Brasil Bco Múlt S.A.
                                           Bianca C.M. Cassarino (Sao Paulo): bianca.cassarino@gs.com, +55(11)3371-0721
Target price                     R$17.20
                                           Goldman Sachs Brasil Bco Múlt S.A.
Fiscal y/e Dec         2010E      2011E

EPS (R$)                  0.41      0.86   News
P/E                    33.8X       16.0X   BR Properties, Brazil’s largest real estate investment company focused on office buildings and warehouses,
                                           announced on August 12 the acquisition of 82% of one of Rio de Janeiro’s most important AAA buildings for
EPS Quarter/Interim*      0.09      0.17
                                           R$680 mn (about US$384 mn) through a 50/50 JV with a financial institution. The building was acquired from
Investment Lists                           Tishman Speyer and Camargo Correa and paid in cash. We estimate a double-digit cap rate for the related
                   Americas Buy List       acquisition.
Coverage view                Attractive    Analysis
                                           Strengthening leadership in downtown Rio de Janeiro. The acquired office building (named “Ventura
*Current and a year ago
                                           Corporate Tower II”) is part of a AAA office complex of two towers, one of the largest in Rio. It adds 21,500
                                           m2 to BR Properties’ existing portfolio of assets and a parking facility with 495 spots. The company has now
                                           more than 1,000,000 m2 in gross leasable area (GLA), with about 108,000 m2 GLA in downtown Rio.
                                           Strategic location. The Ventura building is located in the downtown area of Rio de Janeiro city, a region with
                                           strong infrastructure, and close to the domestic airport Santos Dumont. According to CBRE, as one of the
                                           only AAA buildings in the region, leases are at about R$150/m2 monthly, 50% above the average price of
                                           high-end office buildings in Rio de Janeiro, and well above the average price of BR Properties’ existing
                                           portfolio.
                                           BR Properties will manage the building, enabling it to apply expense-reduction programs to reduce
                                           condominium expenses. This could mean higher leases without increasing the overall costs for tenants.
                                           Office complex opened today, but occupancy already at 55%. BNDES is the largest occupant, but the
                                           company is close to sign with other tenants.
                                           Implications
                                           We view BR Properties as the best way to invest in Brazil’s commercial-property sector, trading at 22%
                                           discount to our conservative NAV. BRP is delivering on its IPO plans quickly and consistently, having spent
                                           84% of its budget in only five months (R$1.5 bn bought in 2010). We expect R$160 mn to be used by year’s
                                           end. We retain our rating, estimates, and price target.




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                     August 13, 2010




BM&F Bovespa (BVMF3.SA): First Take: 2Q beat on lower expenses and higher financial income                                                              19

BVMF3.SA, R$12.74                            Carlos G. Macedo (Sao Paulo): carlos.macedo@gs.com, +55(11)3371-0887
Market cap                 R$25,574 mn
                                             Goldman Sachs Brasil Bco Múlt S.A.
                                             Jason B. Mollin (Sao Paulo): jason.mollin@gs.com, +55(11)3371-0871
Target price                      R$16.70
                                             Goldman Sachs Brasil Bco Múlt S.A.
Fiscal y/e Dec            2010E    2011E     Wesley Okada (Sao Paulo): wesley.okada@gs.com, +55(11)3371-0875
EPS (R$)                   0.58      0.77    Goldman Sachs Brasil Bco Múlt S.A.
P/E                       22.0X     16.6X

EPS Quarter/Interim
                      *
                           0.14      0.11
                                             News
                                             BM&F Bovespa reported 2Q2010 adjusted net income of R$307 mn, (R$0.15 per share, 5.8% above our
Investment Lists                             estimate). Recurring EBITDA was R$343mn, 1.3% below our estimate. Management will host conference
                      Americas Buy List      calls on Friday, August 13th at 1:00pm ET (Portuguese, +55 11 4688 6361) and 10:00am ET (English, +1-
Coverage view                 Attractive     800-860-2442). Code for both: BMFBOVESPA).
*Current and a year ago
                                             Analysis
                                             Revenue growth supported by derivatives trading. Revenues for derivatives increased 8.1% qoq, as
                                             expected, and revenues for equities increased 1.4% qoq. Pricing in equity trading declined 0.1 bp qoq, in line
                                             with expectations. Other revenues were 0.9% weaker qoq, and 8.9% below our estimate, on market data and
                                             listing fees.
                                             Expenses still below expectations. IT expenses increased 15.9% qoq, but were 7.3% below our estimate.
                                             Personnel expenses, on the other hand, increased only 1.0% qoq and were also 8.2% below our estimate.
                                             These were offset in part by an 85.2% qoq increase in marketing expenses, but total expenses increased
                                             9.2% qoq, 2.4% below our estimate.
                                             Financial income surprises positively. Financial income increased 14.6% qoq, as returns on cash increased
                                             to 115% of the base rate, the highest return since 4Q2008.
                                             Stock buyback plan approved. The Board approved the buyback of 31 million shares (1.6% of total shares)
                                             by the end of 2010. At current prices, that would be equal to R$395 million. This is roughly equivalent to the
                                             annual amount provisioned by the company for the deferred tax liability.
                                             Implications
                                             Expenses came in below expectations once again and, along with strong financial income, supported the
                                             EPS beat for the quarter. This provides good momentum going into 2H2010, increasingly necessary as
                                             volume in July and August have been low. More importantly, the company restarts its stock buyback
                                             program, which we believe could be an important positive catalyst for shares. We maintain our target,
                                             estimates and Buy rating.



Rossi (RSID3.SA): First Take: 2Q10 impressively strong on growth and profitability                                                                      20

RSID3.SA, R$14.99                            Leonardo Zambolin (Sao Paulo): leonardo.zambolin@gs.com, +55(11)3371-0727
Market cap                  R$3,994 mn
                                             Goldman Sachs Brasil Bco Múlt S.A.
                                             Bianca C.M. Cassarino (Sao Paulo): bianca.cassarino@gs.com, +55(11)3371-0721
Target price                      R$17.00
                                             Goldman Sachs Brasil Bco Múlt S.A.
Fiscal y/e Dec            2010E    2011E

EPS (R$)                   1.48      2.10    News
P/E                       10.1X      7.1X    Rossi, one of Brazil’s largest homebuilders, released solid 2Q10 results on August 12 after the close. Net
                                             income of R$109 mn (+114% yoy, R$0.41/sh) significantly beat GSe and consensus of R$81 mn
EPS Quarter/Interim*       0.31      0.27
                                             (R$0.31/sh).
Investment Lists
                                             Analysis
                                   Neutral   Solid operating figures. As pre-released on July 19, contracted sales totaled R$711 mn (+76% yoy), and new
Coverage view                 Attractive     launches R$757 mn (+101% yoy), supported by broad geographic and product diversification. Sales velocity
                                             increased for the sixth quarter consecutively, reaching 26%. The economic segment is scaling up quickly,
*Current and a year ago
                                             and represented about 50% of these figures.
                                             Revenue recognition stronger than GSe. Revenues of R$649 mn (+76% yoy) were 17% above GSe,
                                             although our contracted-sales estimate was in line with Rossi’s reported number. In our view, this could be
                                             explained by a faster-than-expected pace of construction in progress.
                                             Profitability improves. The faster revenue recognition, combined with strict cost/expense control and better
                                             efficiency, resulted in significant margin expansion, from gross to net results. All of them showed strength,




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                      August 13, 2010



                                           and came ahead of expectations and previous quarters of 2009 and 2010.
                                           Cash burn of R$265 mn seems high vs. operations’ size. Yet, Rossi has R$251 mn in receivables ready to be
                                           securitized, which would have reduced its cash burn to only R$14 mn in the quarter.
                                           Solid balance sheet position. Rossi improved its debt profile, with now only 27% maturing in the short term
                                           vs. 41% in 1Q10. Net debt position is at R$681 mn, with plenty of room for further leverage.
                                           Implications
                                           Rossi’s 2Q10 results were remarkably strong, showing impressive growth and profitability. We think it is
                                           important to understand if Rossi’s current profitability is sustainable going forward, since its backlog margin of
                                           28.5% is considerably lower than its reported gross margin of 33.9%. We retain our 12-month price target
                                           and Neutral rating, as we see lower upside to Rossi's target price when compared to our Buy-rated stocks.



Credicorp (BAP): First Take: 2Q2010 in line; lower provisions offset by flattened NIM                                                                     21

BAP, $97.46                                Jason B. Mollin (Sao Paulo): jason.mollin@gs.com, +55(11)3371-0871
Market cap                  $7,773 mn
                                           Goldman Sachs Brasil Bco Múlt S.A.
                                           Carlos G. Macedo (Sao Paulo): carlos.macedo@gs.com, +55(11)3371-0887
Target price                     $102.90
                                           Goldman Sachs Brasil Bco Múlt S.A.
Fiscal y/e Dec         2010E      2011E    Wesley Okada (Sao Paulo): wesley.okada@gs.com, +55(11)3371-0875
EPS ($)                   7.36      8.92   Goldman Sachs Brasil Bco Múlt S.A.
P/E                    13.3X      10.9X

EPS Quarter/Interim*      1.83      1.44
                                           News
                                           Credicorp reported 2Q2010 recurring net income of US$144 mn, slightly below our estimate of US$ 146 mn
Investment Lists                           (US$1.80 per share, 9.0% above consensus). Management will host a conference call tomorrow (August 13)
                                 Neutral   at 10:30 a.m. ET (+1-866-788-0545 or +1-857-350-1683, code #19073511) to discuss results.
Coverage view                Attractive    Analysis
*Current and a year ago
                                           Solid loan portfolio growth. Total loans grew 6.5% qoq and 19.7% yoy. Foreign-currency-denominated loans
                                           reported higher growth, mainly led by corporate segment (+8.4% qoq), which reflects the significant
                                           investment activity in Peru. In the local currency portfolio, highlights were SME (+6.3% qoq); mortgages
                                           (+7.4% qoq) and Edyficar, the micro lending subsidiary, (+5.8% qoq).
                                           Margins remain flat. NIM remained at 4.9%, reflecting the aforementioned loan growth, but offset by weaker
                                           mix of products such as corporate and mortgage.
                                           Asset quality shows some improvement. NPL ratio decreased 12 bp in 2Q2010, to 1.7%. The improvement
                                           was driven by re-rating of some clients in wholesale as well as better asset quality from the SME segment.
                                           Also, recoveries accelerated in the 2Q10 (+76% qoq), leading to significant decline in provision expenses, to
                                           US$31.1 mn from US$43.4 mn in 1Q10.
                                           Lower-than-expected expenses. Efficiency ratio posted a decrease of 185 bp qoq, to 46.8%, mainly related to
                                           lower personnel expense growth. Fee income came in line with our estimate, rising 2.5% on the back of
                                           higher fees from corporate finance and advisory fees.
                                           Implications
                                           Credicorp’s 2Q2010 EPS was in line with our estimate primarily due to lower provision expenses offset by
                                           lower-than-expected NII growth. We maintain our Neutral rating based on valuation, as BAP is currently
                                           trading at 2.4X 2011E book value and 11.0X 2011E P/E. We maintain our price target and estimates.



Latin America: Banks: More constructive on 2010, but multiples seem rich; retain Sell on SAN and BCH                                                      22

                                           Jason B. Mollin (Sao Paulo): jason.mollin@gs.com, +55(11)3371-0871
                                           Goldman Sachs Brasil Bco Múlt S.A.
                                           Carlos G. Macedo (Sao Paulo): carlos.macedo@gs.com, +55(11)3371-0887
                                           Goldman Sachs Brasil Bco Múlt S.A.
                                           Wesley Okada (Sao Paulo): wesley.okada@gs.com, +55(11)3371-0875
                                           Goldman Sachs Brasil Bco Múlt S.A.

                                           Chilean banks show limited effects of earthquake-related weakness
                                           The impact of the earthquake on Chile’s economy, as well as on the operations of Santander Chile and
                                           Banco de Chile, was less severe than we anticipated. We initially projected a slowdown and a sharp recovery




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                              August 13, 2010



                                 in 2011, with most disruption occurring during 1H2010. However, operations for both banks have proven
                                 resilient, as shown in 2Q2010 results.
                                 2Q2010 results:
                                 Loan growth: strong and consistent, more than 3% qoq, with yoy growth accelerating at least 800 bp yoy.
                                 NIM: Increasing qoq to reflect the higher inflation print and the slightly higher base rates.
                                 Asset quality: Resilient, showing no significant signs of deterioration.
                                 Fee income: Strong growth qoq, particularly in insurance and collection.
                                 Admin expenses were somewhat higher than expected, in part reflecting the (limited) effects of the
                                 earthquake on the banks’ results.
                                 Adjusting estimates
                                 We are softening the impact of the earthquake, largely by forecasting better asset quality in 2010E and
                                 2011E. This is partially counterbalanced by higher expense forecasts. As a result, we increase our 2010E-
                                 2012E EPS for Santander Chile by 11.9%, 3.1% and 3.2%, respectively. For Banco de Chile, we raise 2010E
                                 EPS by 12.4%, but lower 2011E-2012E by 2.8% and 1.4%, respectively.
                                 Valuation: higher TP on higher estimates
                                 We determine our 12-month target prices using our 3-stage DDM. Based on the changes to our estimates
                                 and updated risk metrics for our cost of equity, we increase our price targets on Santander Chile by 10.8%, to
                                 US$82.10, and on Banco de Chile by 11.0%, to US$72.70.
                                 Maintain Sell ratings on valuation
                                 Santander Chile and Banco de Chile trade at among the highest P/E and P/B multiples in our Latam bank
                                 universe. While, we think operating performance justifies the high multiples, we see better value elsewhere
                                 (particularly Brazil banks).



Brazil: Specialty Finance: Diversified: RDCD3 and CIEL3: Looking back and looking forward; two key                                                23
questions yet unanswered

                                 Carlos G. Macedo (Sao Paulo): carlos.macedo@gs.com, +55(11)3371-0887
                                 Goldman Sachs Brasil Bco Múlt S.A.
                                 Jason B. Mollin (Sao Paulo): jason.mollin@gs.com, +55(11)3371-0871
                                 Goldman Sachs Brasil Bco Múlt S.A.
                                 Wesley Okada (Sao Paulo): wesley.okada@gs.com, +55(11)3371-0875
                                 Goldman Sachs Brasil Bco Múlt S.A.

                                 Looking back at the Brazilian card sector
                                 The developments of the last four years have completely transformed the Brazilian card sector. Much of the
                                 change was driven by fear of tighter regulation, and has led the sector to open up and become more
                                 competitive.
                                 Looking forward: EPS under pressure
                                 We expect Redecard and Cielo to lose market share and margins as the new competitive process intensifies,
                                 especially in 2011. We forecast that EPS in 2012 will be 17% lower than in 2010.
                                 Do market prices reflect downturn?
                                 Our 2012E EPS is 20% below consensus for both companies. However, we believe most investors share our
                                 outlook for the sector, and that our view rather than consensus is reflected in valuations.
                                 When will the worm turn?
                                 At some point, margins and market shares stabilize, and structural growth returns to 20% yoy, allowing P/E
                                 multiples to expand to the high teens. We believe that will happen in 2012E.
                                 Uncertainty rules
                                 There is very little visibility with respect to how the market will develop post exclusivity. While it seems that
                                 Cielo is slightly ahead by virtue of its strong distribution capabilities, the market has still to determine exactly
                                 how it will function.
                                 Updating earnings after 2Q2010
                                 Similar trends in 2Q2010 were slower transaction value growth and higher earnings from receivables
                                 discounting. Different were expenses (low for Cielo, high for Redecard) and net MDRs (lower for Cielo, higher
                                 for Redecard). We think Cielo came out ahead, and increase estimates for the company while reducing for
                                 Redecard.
                                 Valuation favors Redecard slightly




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                   August 13, 2010



                                           We updated our 12-month target prices for both companies. Based on our models, we believe Cielo should
                                           trade at 2% premium on 2010E P/E to Redecard, while it trades at a 5% premium. We maintain Neutral rating
                                           for both Redecard and Cielo. We also highlight that the short interest in both companies doubled in the last
                                           two months.



Healthcare

Perrigo Co. (PRGO): Post F4Q - outlook unchanged, under-appreciated risk remains                                                                      24

PRGO, $59.21                               Randall Stanicky, CFA (New York): randall.stanicky@gs.com, (212) 357-3292
Market cap                  $5,506 mn
                                           Goldman Sachs & Co.
                                           Stephan Stewart (New York): stephan.stewart@gs.com, (212) 934-4218
Target price                     $50.00
                                           Goldman Sachs & Co.
Fiscal y/e Jun         2011E     2012E     Gregory Waterman, CFA (New York): gregory.waterman@gs.com, (212) 855-7725
EPS ($)                   3.46     3.82    Goldman Sachs & Co.
                                           Baneesh Banwait (Bangalore): baneesh.banwait@gs.com, (212) 934-6193
P/E                    17.1X      15.5X
                                           Goldman Sachs India SPL
EPS Quarter/Interim*      0.77     0.66

Investment Lists
                                           What's changed
                   Americas Sell List      We would take profit on today’s result and share strength with F4Q EPS of $0.71 (GS/Street at $0.65/$0.68),
Coverage view                    Neutral   and new FY2011 EPS GAAP guidance of $3.08-$3.28 versus Street $3.23. Pushback we heard from
                                           investors: (1) guidance is conservative, & (2) manufacturing issues are moving past. We do not view
*Current and a year ago
                                           guidance as conservative and hold concerns around the core CHC and PBM deal opportunity and based on
                                           ensuing consultant discussions today continue to see risk around warning letter remediation that we think is
                                           under-appreciated. Slowing growth with ongoing risk on still-heightened valuation (more so today) keeps our
                                           view unchanged and we maintain our Sell rating and 12-month $50 PT, implying 16% downside.
                                           Implications
                                           No change to our adj fiscal 2011-14E EPS, but we officially move to cash-EPS (to reflect the add-back of
                                           amortization, in line with mgmt reporting – and closest peer comps). Our FY2011-14 cash-EPS estimates are
                                           $3.46, $3.82, $4.05 and $4.35, implying a 9% EPS CAGR. We also introduce fiscal 2012 quarterly estimates
                                           of $0.90/$0.99/$0.97/$0.95. Several key variables remain to the outlook, mainly: (1) remediation cost and
                                           timing per FDA warning letter, with management still expecting an October / November resolution (our
                                           consultant sees as unlikely); (2) upside from the JNJ recalls where we question sustainability given capacity
                                           constraints and competitor initiatives; and (3) PBM outlook where run rate from the quarter (per 10k review)
                                           implies risk. The Rx business was the bright spot and well above our forecast, though a more limited driver at
                                           11% of revenue.
                                           Valuation
                                           Our 12-month $50 price target, (50/50 P/E and EV/EBITDA), implies shares can trade at 13.5X our C2011E
                                           cash-EPS. Shares currently trade at 16.0X C2011, a 51% premium to generic peers with similar growth
                                           outlooks.
                                           Key risks
                                           Upside risks are: (1) manufacturing resolution, and (2) product surprises.




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                    August 13, 2010



Technology

Nvidia Corp. (NVDA): Margin outlook better than expected, revenue momentum still weak                                                                  25

NVDA, $8.96                                 James Schneider, Ph.D. (New York): james.schneider@gs.com, (917) 343-3149
Market cap                   $5,219 mn
                                            Goldman Sachs & Co.
                                            James Covello (New York): james.covello@gs.com, (212) 902-1918
Target price                      $11.00
                                            Goldman Sachs & Co.
Fiscal y/e Jan            2011E   2012E     Ian Eigenbrod (New York): ian.eigenbrod@gs.com, (212) 902-0695
EPS ($)                    0.65     0.90    Goldman Sachs & Co.
P/E                       13.8X     9.9X

EPS Quarter/Interim
                      *
                           0.16     0.15
                                            What's changed
                                            Nvidia reported 2Q revenues of $811 mn (-19% qoq), in line with GS at $815 mn and lowered guidance of
Investment Lists                            $800 mn-$820 mn. Operating EPS (including ESO) was $0.03, well below GS/Street at $0.11. Downside was
                                  Neutral   driven by a lower gross margin (excluding material charges but including an inventory write down) partially
Coverage view                 Attractive    offset by lower opex and lower taxes. 3Q guidance is for sales to be up 3% to 5% qoq ($835 mn-$852 mn),
                                            below GS at $883 mn and the Street at $889 mn. The gross margin is expected to be up (46.5% to 47.5%),
*Current and a year ago
                                            with GAAP opex guided to $300 mn. Nvidia cited consumer PC weakness in Europe and China as the reason
                                            for the revenue shortfall.
                                            Implications
                                            While we believe that the stock could trade up in the short term as Street estimates are reset lower and that
                                            Nvidia’s gross margin guidance was likely significantly better than many investors expected, we would
                                            continue to avoid the stock. Our view is that the stock is unlikely to move sustainably higher until investors
                                            gain clarity on (1) Nvidia’s ability to improve its discrete notebook and desktop market share with its new
                                            Optimus technology and Fermi-based products, (2) the size and timing of Tegra design wins, (3) the prospect
                                            of opex reductions in light of lower expectations for the consumer and chipset businesses, and (4) the
                                            potential impact of the recent FTC/Intel ruling. We are lowering our near-term estimates, given a weaker
                                            revenue outlook, but our out-year estimates are unchanged, as we believe that a stronger margin mix is likely
                                            to offset weaker revenues: FY11/12/13 to $0.65/$0.90/$1.00 from $0.70/$0.90/$1.00.
                                            Valuation
                                            We lower our six-month price target to $11 from $12, based on a P/E of 12X (down from 13X, given lower
                                            multiples for PC-exposed peers) applied to normalized EPS estimate of $0.70 (down from $0.75) plus $3 in
                                            net cash.
                                            Key risks
                                            Risks include excess inventory, weak PC demand, and market share shifts.



Autodesk Inc. (ADSK): Pent-up demand still in command, though macro challenges loom                                                                    26

ADSK, $27.45                                Derek R. Bingham (San Francisco): derek.bingham@gs.com, (415) 249-7435
Market cap                   $6,418 mn
                                            Goldman Sachs & Co.
                                            Geo John (Bangalore): geo.john@gs.com, (212) 934-6386
Target price                      $31.00
                                            Goldman Sachs India SPL
Fiscal y/e Jan            2011E   2012E

EPS ($)                    1.05     1.30    What's changed
P/E                       26.2X    21.1X    Post Autodesk’s F2Q results, we lift our near-term estimates meaningfully due to upside in the quarter,
                      *                     though our out-year estimates are little changed due to a more conservative top-line view in light of macro
EPS Quarter/Interim        0.26     0.17
                                            risks to next year. Our revised FY11, FY12, and FY13 non-GAAP EPS estimates are $1.34, $1.56, and $1.89
Investment Lists                            (prior $1.20, $1.53, and $1.88). We lift our 12-month price target to $31.00 from $30.00 due to our increased
                                  Neutral   estimates for FY2012.
Coverage view                 Attractive    Implications
                                            Autodesk reported a good quarter, with licenses up greater than typical seasonality adjusting for the
*Current and a year ago
                                            promotional activity in 1Q, affirming our view of some ongoing amount of pent-up demand. Interestingly, the
                                            quarter also included an unusually large deal from the US Air Force (~$5 mn). Maintenance renewal rates
                                            have finally recovered to pre-downturn levels, though neither maintenance revenue nor deferred revenue
                                            built as strongly as we would have expected, even after accounting for the FX hit in the quarter. Greater than
                                            expected cost controls accelerated the margin expansion pace, though spending is expected to start ramping




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                 August 13, 2010



                                           again somewhat in the back half of the year. We remain positive on the strength of the franchise and
                                           continue to expect near-term upside to the guided range. However, we remain guarded on the intermediate-
                                           term top line outlook given our view of current deceleration of the global economy.
                                           Valuation
                                           Based on after-market levels, Autodesk trades at 18X CY2011E non-GAAP EPS vs. the software group
                                           median of 17X. Our revised 12-month price target of $31.00 is based on historical P/E, target EV/adjusted
                                           FCF/growth multiples, and DCF.
                                           Key risks
                                           Upside risks include pent-up demand and macro improvement. Downside risks are sluggishness or
                                           retrenchment in core end markets.



Autodesk Inc. (ADSK): Strong P&L, in-line guidance                                                                                                  27

ADSK, $27.92                               Derek R. Bingham (San Francisco): derek.bingham@gs.com, (415) 249-7435
Market cap                  $6,550 mn
                                           Goldman Sachs & Co.
                                           Geo John (Bangalore): geo.john@gs.com, (212) 934-6386
Target price                     $30.00
                                           Goldman Sachs India SPL
Fiscal y/e Jan         2011E     2012E

EPS ($)                   0.91     1.27    News
P/E                    30.8X      22.0X    Autodesk reported 2QFY11 revenue of $473 million (up 14% year over year), ahead of our/Street estimates
                                           of $462/$459 million. Upside was all in license revenue, coming in at $281 million (up 22% yoy) vs. our $266
EPS Quarter/Interim*      0.20     0.18
                                           million. Non-GAAP EPS of $0.36 was significantly better than our/Street $0.28/$0.27 estimate, on operating
Investment Lists                           margin of 25% vs. our 19% estimate. Operating expenses were $17 million below our estimate, mostly on the
                                 Neutral   sales and marketing line. Cash flow from operations of $112 million exceeded our estimate of $83 million.
Coverage view                Attractive
                                           Deferred revenue of $526 million was down 3% sequentially, below our estimate of $552 million. A
                                           conference call with investors is scheduled for 5:00 p.m. ET; the webcast can be accessed at
*Current and a year ago                    www.autodesk.com/investors.
                                           Analysis
                                           October revenue guidance is $450-475 million, about in line with the Street’s $464 million at the mid-point,
                                           though below our $472 million. Non-GAAP EPS guidance of $0.28-$0.33 brackets our/Street estimate of
                                           $0.30. The company did not provide official guidance for the full fiscal year, though now expects non-GAAP
                                           operating margin expansion of 400-450 bp for FY2011.
                                           Implications
                                           Strong license and margin result. Sequential dip in deferred revenue and maintenance will draw questions.
                                           Our estimates and price target are unchanged.




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                      August 13, 2010



Transportation

OHL Brasil (OHLB3.SA): First Take: In line operating results; 2Q capex up, but still below GSe                                                           28

OHLB3.SA, R$46.01                            Eduardo Siffert Couto, CFA (Sao Paulo): eduardo.couto@gs.com, +55(11)3371-0764
Market cap                  R$3,170 mn
                                             Goldman Sachs Brasil Bco Múlt S.A.
                                             Tais Correa (Sao Paulo): tais.correa@gs.com, +55(11)3371-0833
Target price                      R$40.00
                                             Goldman Sachs Brasil Bco Múlt S.A.
Fiscal y/e Dec            2010E    2011E

EPS (R$)                   3.82      3.45    News
P/E                       12.0X     13.3X    OHL Brasil released 2Q2010 results on August 12 after market close. Net revenues reached R$ 358mn, in
                      *                      line with our estimates. Reported EBITDA of R$ 224mn was 2% below GSe of R$ 230mn. EPS at R$
EPS Quarter/Interim        1.08      0.66
                                             0.91/share was 16% short of our R$ 1.08 number. Total capex in 2Q2010 of R$176mn was 34% above the
Investment Lists                             1Q2010 but still 20% below our estimate of R$219mn.
                      Americas Sell List     Analysis
Coverage view                 Attractive     OHL’s 2Q2010 operational performance was in line with our numbers. Total traffic at 140.1mn vehicles grew
                                             4% qoq and was 2% lower than GSe.
*Current and a year ago
                                             On the positive side, OHL continues to postpone mandatory investments in the federal concessions. The
                                             company spent R$307mn on its roads during the 1H2010, which represents only 29% of the company’s initial
                                             expectations for full year capex of R$1,062mn (R$880mn on the federal roads and R$182mn in the state
                                             concessions). However, capex expenses accelerated on the 2Q versus the previous quarter by 34%.
                                             On the negative side, OHL delayed the launch of its last non-operational toll plaza on the federal highways
                                             (toll plaza number 1 of Fernão Dias) to the beginning of September, which was previously scheduled for
                                             2Q2010. OHL faced serious problems in launching its federal toll plazas in 2009, but there is now only one of
                                             a total of 29 federal toll plazas yet to start collection. OHL’s bottom line was negatively impacted by higher-
                                             than-expected financial expenses.
                                             Implications
                                             In our view, OHL’s 2Q2010 results are not a catalyst for the stock. OHL’s short-term capex has been lower
                                             than expected, which is positive for valuation. However, according to our estimates, more than R$5bn of
                                             mandatory capex on the federal roads still need to be done, which limits OHL’s ability to participate in future
                                             auctions and to generate positive cash flow in coming years. We maintain our estimates, rating and target
                                             price.



CCR (CCRO3.SA): First Take: Weak 2Q results impacted by higher operating expenses                                                                        29

CCRO3.SA, R$39.70                            Eduardo Siffert Couto, CFA (Sao Paulo): eduardo.couto@gs.com, +55(11)3371-0764
Market cap                 R$17,523 mn
                                             Goldman Sachs Brasil Bco Múlt S.A.
                                             Tais Correa (Sao Paulo): tais.correa@gs.com, +55(11)3371-0833
Target price                      R$44.00
                                             Goldman Sachs Brasil Bco Múlt S.A.
Fiscal y/e Dec            2010E    2011E

EPS (R$)                   1.68      2.06    News
P/E                       23.6X     19.3X    The Brazilian toll road operator CCR released 2Q2010 results after the market close on August 12. Net
                                             revenues of R$900 mn were in line with our estimate and up 22% yoy. EBITDA at R$555 mn is 5% lower
EPS Quarter/Interim*       0.43      0.45
                                             than GS at R$583 mn and 3% above the 1Q2010. EPS on the 2Q2010 was R$0.35, 17% below our R$0.43
Investment Lists                             estimate. Total road traffic reached 212 mn vehicles, 2% lower than our forecast.
                                   Neutral   Analysis
Coverage view                 Attractive     CCR’s 2Q2010 operating results were below our estimates. Higher operating expenses in the 2Q2010
                                             related mainly to third-party services and personnel costs negatively impacted operating results and net
*Current and a year ago
                                             income. CCR highlighted that headcount addition due to the startup of SP subway line 4 and to the toll plaza
                                             split on ViaOeste pressured labor costs. Besides that higher maintenance, operations and conservation costs
                                             pushed third-party services up by 27% qoq. Another negative is the Rodoanel West traffic that remains below
                                             initial estimates with 29.2 mn equivalent vehicles in the 2Q2010, 7% below our estimate. The Rodoanel West
                                             traffic may close 2010 almost 20% below CCR’s expectations after the auction in 2008. On the positive side,
                                             capex of R$311 mn in the 2Q2010 was 9% below our estimate. CCR’s 1H2010 investments represented only
                                             39% of its total capex guidance for the year.
                                             Implications




Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                         August 13, 2010



                                            We do not see CCR’s weak 2Q2010 results as the main catalyst for the stock. Investors will likely remain
                                            focused on updates of CCR’s recent acquisition of SPVias. This acquisition is under completion by CCR with
                                            the purchase of a 26.5% minority stake still pending. Potential overhang from Brisa’s divestment of its 16%
                                            stake on CCR (6% acquired by the other controllers) is another concern. We maintain our Neutral rating,
                                            estimates, and target price .



Utilities

Tractebel (TBLE3.SA): First Take: Solid 2Q2010 results, slightly below consensus                                                                              30

TBLE3.SA, R$23.14                           Francisco Navarrete (Sao Paulo): francisco.navarrete@gs.com, +55(11)3372-0103
Market cap                R$15,104 mn
                                            Goldman Sachs Brasil Bco Múlt S.A.
                                            Andre Gaeta (Sao Paulo): andre.gaeta@gs.com, +55(11)3371-0825
Target price                     R$22.40
                                            Goldman Sachs Brasil Bco Múlt S.A.
Fiscal y/e Dec         2010E      2011E

EPS (R$)                  1.54      1.85    News
P/E                    15.0X       12.5X    Brazilian power generator Tractebel reported solid 2Q2010 adjusted EBITDA of R$575 mn, up 4% yoy, in line
                                            with our estimate and slightly below Bloomberg consensus. The operating performance was mainly driven by
EPS Quarter/Interim*      0.38      0.36
                                            volume sales growth of 13% yoy, in line with our estimate, on new capacity and favorable hydrology in
Investment Lists                            2Q2010. Excluding a one-off pre-tax net gain of R$26 mn, net income of R$254 mn was in line with our
                                  Neutral   estimate and slightly below consensus.
Coverage view                     Neutral
                                            Tractebel announced dividends of R$286 mn for 1H2010, (annualized yield of 4%), in line with our estimate
                                            (ex-dividend on Oct. 1st). On Oct. 1st, Tractebel will announce corporate governance initiatives on
*Current and a year ago                     transactions involving related parties. We think the current business model in which Tractebel’s parent
                                            company builds power plants and sells them to Tractebel, is one of the main overhangs for the stock.
                                            Analysis
                                            Net revenue, up 16% yoy, and in line with our estimate: (i) start-up of new power plants, adding 139 firm MW;
                                            and (ii) higher revenues on increasing power dispatch on good hydrology. The average price of contracts was
                                            virtually flat yoy on lower selling prices of short-term contracts.
                                            Opex was up 31% yoy, and was slightly below our estimate: (i) higher purchased energy of 300 firm MW
                                            already sold in 30-year contracts; and (ii) favorable hydrology also reduced “spot” market adjustments (R$37
                                            mn expense in 2Q2009 and almost zero in 2Q2010), which were partially offset by; (iii) higher hydro royalties
                                            on increasing power dispatch.
                                            One-offs: R$46 mn operating gain on a favorable tax revenue litigation; and (ii) R$20 mn financial loss on
                                            unfavorable income tax litigation.
                                            Implications
                                            Our Neutral rating, estimates and price target are unchanged. We believe the stock is fairly valued at 7.6x
                                            2011E EV/EBITDA, a 37% premium vs. the sector average.



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Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                               August 13, 2010




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Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                            August 13, 2010



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Goldman Sachs Global Investment Research
Americas Morning Summary                                                                                                                                  August 13, 2010



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