。31 January 2019 Global Equity Themes 2 Table of contents Investing for growth – our core themes3 Executive summary4 Thematic investing: our approach6 Key Focus Articles17 I Finding medium-term growth opportunities18 II Asia in transition: Undisrupted growth26 III 5G: An Infrastructure theme with momentum31 IV Adjuvant Immuno-Oncology37 Our core growth themes42 I Consumer Connectivity43 II Content46 III Automation49 IV Big Data51 V Ageing54 VI Healthy Living57 VII Infrastructure59 VIII New Energy61 Appendix A: Theme Scatters63 Appendix B: Small Cap Theme Exposure78 The team wishes to acknowledge the contributions made to this report by Akanksha Kharbandaand Amit Philips, employees of CRISIL Global Research and Analytics, a business division ofCRISIL Limited, a third-party provider of research services to Credit Suisse. 31 January 2019 Global Equity Themes 3 Investing for growth – our core themes Figure 2: Key Summary of our Core Growth Themes Consumer Connectivity Our theme of consumer connectivity covers the entire supply chain exposed to the B-2-C online experience. This therefore relatesto all companies that enable consumers to transact online. The drivers for this theme include i) access: wireline and more importantlywireless access continues to rise globally, ii) greater spending power (especially in case of EM) and iii) increased convenience (whichincludes an expanding online product and service offering as well as more advanced delivery optionality) Big Data Digital data creation continues to grow exponentially which makes Data Analytics the most compelling component of our Big Datatheme. At the forefront are Data or Cyber Security and Artificial Intelligence and Machine Learning. Looking ahead, the viability of 5Gwireless connections will become a key future catalyst for the theme as network bandwidth and transmission velocity is significantlyenhanced. Content Our Content theme focusses on 3 specific areas of, largely, digital content: Audio & Video, Gaming and Education. Growth in globalmusic streaming continues to gain momentum and notably, EM potential is largely untapped with Brazil, Russia, India, China andIndonesia representing <10% of the total market. Looking ahead, the sustainability of streaming growth and strategic deals under waywill be a focus. Gaming growth is secular as younger consumers move away from traditional TV and Sports viewing towards gamingand Esports. Tighter regulation, however, has challenged growth prospects more recently. Demand for online education is supportedby consumers located in emerging markets. We see further upside from a growing need to retrain employees in DM as automationincreasingly disrupts more traditional labor markets. Automation The theme of automation is closely associated with robotics and industrial end markets. Demand for robots and the industrial Internetof Things continue to grow, mitigating labour cost inflation over the long run and driving the theme. Increasingly, however, we alsonote that automation and robotics in particular become increasingly relevant in other end markets including healthcare and consumer.Chinese suppliers for robots remain a threat to incumbent international OEMs. ‘Cobots’ are also gaining traction. Risks ahead includeshort-cycle momentum rolling over and related tech capex slowing down.Ageing The long-term drivers for ageing are increasing life expectancy coupled with a decline in fertility rates. Both drivers impactdemographics across developed and emerging markets, making this a truly global theme. End markets impacted by this are many,including medical devices (hearing aids, dental implants and reconstructive implants), managed care facilities and private hospitalsbut also financial services including asset managers and insurance companies. We have a particular focus on companies exposed toEM as the rate of ageing there is stronger than in DM and EM generally have less developed public support systems (e.g. healthcarefunding or pension systems), requiring greater private involvement. Healthy Living Obesity worldwide has tripled since 1975, driven by growing spending power, a change from a manufacturing to a (less physicallyintense) service economy, increasing per capita calorie intake and worsening diets more generally.Regulation remains a key issueas governments around the world introduce legislation such as sugar taxes in order to change consumer behavior. The need and/ordesire to start leading a healthier lifestyle supports companies exposed to areas such as healthy food, sporting goods and fitnessequipment & gyms. Infrastructure Our infrastructure theme covers four areas: Power, Transport, Buildings and Communication. Transport infrastructure typicallyreceives most interest not least owing to the need to replace or repair ageing infrastructure in DM and a requirement of building firstgeneration infrastructure assets in EM. Both require significant initial and ongoing capital commitments. Regulatory uncertainties,however, make transport infrastructure a challenge for DM. We believe that the outlook for Communication infrastructure (not leastbecause of the topic of 5G) is more promising. Overall though we highlight that the growth dynamics for the theme, although secular,are less dynamic than for some of our other themes. New Energy Global warming coupled with growing demand for energy out of EM provide the backdrop for our theme of New Energy which coversEnergy Efficiency, Renewables and Energy Storage. The expectation that cleaner power generation technologies will soon becheaper than traditional fossil-fuel based technologies underpins the investment case for the theme, in our view. Energy storagetechnologies also continue to develop, which in our view will improve its characteristics and cost of storage. This will change thebusiness of power generation and supply and traditional utility business models. Looking ahead, we see a move to competitivetendering helping to lower prices and a combination of batteries and wind/solar which will optimize power flows.Source: Credit Suisse research31 January 2019 Global Equity Themes 4 Executive summary Investing for Growth 5.0 This publication ofInvesting for Growthis the fifth in our series on investing in themes thatwe believe should offer structural, long term, 'GDP-plus' top line growth. The core of ourwork is based on a disciplined investment framework that aims to identify which of ourgrowth themes have the most attractive investment characteristics on a 12-month horizon.By applying the HOLT back-tested factors of Quality and Momentum, we also highlightwhich companies within our most preferred themes have the most compelling 'here andnow' characteristics. We also select our analysts' 30 most preferred stocks across allthemes in what we call the 'Thematic 30' list. Our most preferred themes here and now Equity market volatility rose sharply in H2 of last year, which had a clear impact onaverage Momentum readings for our themes. Based on year-end data, we find that thetheme of 'Big Data / AI' still ranks highest, followed by 'Healthy Living', then 'Ageing'.Figure 14 highlights the key companies exposed to these themes. 'Infrastructure' and 'NewEnergy' remain our two lowest-ranked themes on Quality and Momentum; however, wenote that 'Infrastructure' would be ranked third if we included valuation as a parameter.Figure 20 highlights the best scoring infrastructure stocks on Quality, Momentum andValuation. 5G: Who benefits and when Within the theme of infrastructure we explore the topic of '5G'. We expect 5G-relatedinvestments to rise going forward but a full-scale consumer deployment is still years away.Key companies across the 5G supply chain are shown in Figure 49. Quality and Momentum drove 790bps of outperformance in 2018 With the caveat that past performance is no guarantee of future returns, we note that ourwholly sy