Southeastern Asset Management &

Longleaf Partners Funds

Webcast

November 2015

Longleaf US Fund Disclosures

Before investing in any Longleaf Partners fund, you should carefully consider the Funds investment objectives, risks, charges,
and expenses. For a current Prospectus and Summary Prospectus, which contain this and other important information, visit
longleafpartners.com. Please read the Prospectus and Summary Prospectus carefully before investing.
RISKS
The Longleaf Partners Funds are subject to stock market risk, meaning stocks in the Funds may fluctuate in response to developments at
individual companies or due to general market and economic conditions. Also, because the Funds generally invest in 15 to 25 companies,
share values could fluctuate more than if a greater number of securities were held. Mid-cap stocks, held particularly in the Partners Fund,
may be more volatile than those of larger companies. Smaller company stocks, held particularly in the Small-Cap Fund, may be more
volatile than those of larger companies. Particularly for the International Fund and Global Fund, investing in non-U.S. securities may entail
risk due to non-US economic and political developments, exposure to non-US currencies, and different accounting and financial standards.
These risks may be higher when investing in emerging markets.
Funds distributed by ALPS Distributors, Inc.
P/V (price to value) is a calculation that compares the prices of the stocks in a portfolio to Southeasterns appraisal of their intrinsic
values. The ratio represents a single data point about a Fund and should not be construed as something more. P/V does not guarantee
future results, and we caution investors not to give this calculation undue weight.
The S&P 500 Index is an index of 500 stocks chosen for market size, liquidity and industry grouping, among other factors. The S&P is
designed to be a leading indicating of U.S. equities and is meant to reflect the risk/return characteristics of the large cap universe. An index
cannot be invested in directly.
The Russell 2000 Index measures the performance of the 2,000 smallest companies in the Russell 3,000 Index, which represents
approximately 10% of the total market capitalization of the Russell 3000 Index. An index cannot be invested in directly.
MSCI EAFE Index (Europe, Australasia, Far East) is a broad based, unmanaged equity market index designed to measure the equity
market performance of 22 developed markets, excluding the US & Canada. MSCI World Index is a broad-based, unmanaged equity market
index designed to measure the equity market performance of 24 developed markets, including the United States. An index cannot be
invested in directly.
MSCI World Index is a broad-based, unmanaged equity market index designed to measure the equity market performance of 24 developed
markets, including the United States. An index cannot be invested in directly.
LLP000386
The statements and opinions expressed are those of the author and are as of the date of this report.
Expiring 1/31/16

Longleaf US Fund Disclosures

Average annual total returns for the Funds and their benchmarks for the one, five, and 10-year and since inception periods ended
September 30, 2015 are as follows:
Partners Fund (04/08/87)
S&P 500
Small-Cap Fund (02/21/89)
Russell 2000
International Fund (10/26/98)
MSCI EAFE
Global Fund (12/27/12)
S&P 500

1 Year

5 Year

-21.89%
-0.61
-8.84%
1.25
-17.15%
-8.66
-21.36%
-5.09

5.96%
13.34
12.66%
11.73
0.11%
3.98
na
na

10 Year

2.81%
6.80
8.05%
6.55
0.96%
2.97
na
na

Since Inception

9.96%
9.28
10.58%
9.16
6.63%
3.92
-0.68%
8.47

Returns reflect reinvested capital gains and dividends but not the deduction of taxes an investor would pay on distributions or share
redemptions. Performance data quoted represents past performance; past performance does not guarantee future results. The
investment return and principal value of an investment will fluctuate so that an investors shares, when redeemed, may be worth more
or less than their original cost. Current performance of the Longleaf Partners Funds may be lower or higher than the performance
quoted. Performance data current to the most recent month-end may be obtained by visiting longleafpartners.com
The total expense ratios for the Longleaf Partners Funds are: Longleaf Partners Fund 0.91%, Longleaf Small-Cap Fund
0.91%, Longleaf Partners International Fund 1.25%, Longleaf Partners Global 1.58%. The Partners and Small-Cap Funds
expense ratios are subject to a fee waiver to the extent a Funds normal annual operating expenses exceed 1.5% of average
annual net assets. The Longleaf International Funds expense ratio is subject to a fee waiver to the extent the Funds normal
annual operating expenses exceed 1.75% of average annual net assets. The Longleaf Global Funds expense ratio is subject
to a fee waiver to the extent the Funds normal annual operating expenses exceed 1.65% of average annual net assets.

Longleaf US Fund Disclosures

Top 10 Holdings at 9/30/2015
Partners Fund
Level 3 Communications
CK Hutchison
Aon
Google
FedEx
McDonald's
Scripps Networks
Loews
Cheung Kong Property
CNH Industrial

Percent
11.9%
8.6%
7.5%
6.4%
6.4%
5.5%
5.1%
5.1%
5.0%
5.0%

Small Cap Fund

Percent
Level 3 Communications
9.8%
Graham Holdings
6.6%
DreamWorks Animation
6.5%
ViaSat
5.9%
Rayonier
5.7%
Vail Resorts
5.0%
Hopewell
5.0%
Everest Re
4.9%
Wynn Resorts
4.7%
OCI
4.5%

International Fund
EXOR
adidas
LafargeHolcim
CK Hutchison
Melco International
K. Wah International
OCI
Cheung Kong Property
CEMEX
Philips

Percent
8.4%
8.3%
6.9%
6.9%
6.3%
5.7%
5.4%
5.1%
5.0%
4.9%

Global Fund
Level 3 Communications
EXOR
FedEx
CK Hutchison
LafargeHolcim
adidas
McDonald's
Philips
Google
Melco International

Percent
9.0%
7.1%
6.2%
6.0%
5.9%
5.8%
5.1%
5.1%
4.9%
4.4%

Fund holdings are subject to change and holding discussions are not recommendations to buy or sell any security. Current and
future holdings are subject to risk.
Earnings Per Share is the portion of a company's profit allocated to each outstanding share of stock.
EBITDA is a companys earnings before interest, taxes, depreciation and amortization.
Net present value (NPV) is the difference between the present value of cash inflows and the present value of cash outflows.
Free Cash Flow (FCF) is a measure of a companys ability to generate the cash flow necessary to maintain operations. Generally, it
is calculated as operating cash flow minus capital expenditures.
EV/EBITDA is a ratio comparing a companys enterprise value and its earnings before interest, taxes, depreciation and amortization
per share (EPS) is the portion of a company's net income allocated to each share of common stock.
CAGR is an acronym for Compounded Annual Growth Rate
G&A is an acronym for General & Administrative and are expenses pertaining to the operational expenses of a company
HKD is an acronym for Hong Kong Dollar at 11/13/15 the exchange rate was 7.7512 Hong Kong Dollars = 1 US Dollar

Agenda
Performance Perspective

Lee Harper

Our Time-Tested Value

Approach

Mason Hawkins, CFA

Confident in Future Results

Staley Cates, CFA

Q&A

Research Team

Head of Client Portfolio Management

Chairman
Chief Executive Officer
Co-Portfolio Manager-All Funds

President
Chief Investment Officer
Co-Portfolio Manager-All Funds

Performance Perspective
Lee Harper
Head of Client Portfolio Management

Outperformance Not a Straight Line

The magnitude of our outperformance has offset underperforming years over time.
Cumulative Total Return

Magnitude of Yearly Return Difference

4/8/87 to 10/31/15

Longleaf Partners Fund minus S&P 500

Partners
Fund
1,533.31%

Partners Fund
Outperforms

S&P 500
1,258.93%
Partners Fund
Underperforms

Return Difference
>500 basis points

Beat the Index*

Trailed the Index*

14 years
15 years

11 years
10 years

*Includes partial years of 1987 (initial public offering 4/8/87) and 2015 Year-to-Date (YTD) at 10/31/15

Average annual total returns for the Fund and its benchmark for the one, five, ten year and since 4/8/87 inception periods ended September 30, 2015
are as follows: Partners Fund: -21.89%, 5.96%, 2.81%, and 9.96%; S&P 500: -0.61%, 13.34%, 6.80%, and 9.28%Because S&P 500 was available only at
month-end in 1987, we used the value at 3/31/87 to calculate S&P 500 performance since inception. Returns reflect reinvested capital gains and dividends but not
the deduction of taxes an investor would pay on distributions or share redemptions. Performance data quoted represents past performance; past performance
does not guarantee future results. The investment return and principal value of an investment will fluctuate so that an investor's shares, when redeemed, may be
worth more or less than their original cost. Current performance of the fund may be lower or higher than the performance quoted. Performance data current to the
most recent month end may be obtained by visiting longleafpartners.com. The total expense ratio for the Longleaf Partners Fund is 0.91%. The Partners
Funds expense ratios is subject to a fee waiver to the extent a Funds normal annual operating expenses exceed 1.5% of average annual net assets.

Our Time-Tested Value Approach

Mason Hawkins, CFA
Chairman - Chief Executive Officer

Performance Update Since 9/30/15

Longleaf Partners Funds and Indices (9/30/15 to 11/13/15)
U.S. Large-Cap

U.S. Small-Cap

Global

Non-U.S.

Returns reflect reinvested capital gains and dividends but not the deduction of taxes an investor would pay on distributions or share redemptions. Performance
data quoted represents past performance; past performance does not guarantee future results. The investment return and principal value of an investment will
fluctuate so that an investor's shares, when redeemed, may be worth more or less than their original cost. Current performance of the funds may be lower or
higher than the performance quoted. Performance data current to the most recent month end may be obtained by visiting longleafpartners.com.

Rapid Change in Market Perception

Momentum can change quickly. Almost a third of our holdings have posted
double-digit returns since September, and many are up over 15%.
Returns from 9/30/15 to 11/13/15
Company

Total Return
(in Local Currency)

Baidu

41.1%

DuPont

39.9%

DreamWorks Animation

33.1%

Melco International

24.6%

Actuant Corporation

23.2%

SoftBank

21.3%

adidas

19.1%

Wynn Resorts

18.0%

Alphabet (Google)

17.8%

DSM

16.1%

Philips

15.9%

Scripps Networks Interactive

15.5%

Highlighted securities have been purchased since 12/31/14

Past performance does not guarantee future results

U.S.
Large-Cap

Mandates Where Owned

U.S.
Global
Non-U.S.
Small-Cap

Asia Pacific

P
P
P
P

P
P
P

P
P
P
P

P
P
P
P

P
P

P
P

Confident in Future Results

Staley Cates, CFA
President - Chief Investment Officer

Strong Execution at Overweight Holdings

Our confidence is based on the positive fundamentals, value growth and
management action at the companies we own.
CK Hutchison

Completed value-additive restructuring

adidas

Organic revenue growth at brand adidas in last quarter of 14%*

EXOR

Successful spin-off of Ferrari, purchase of PartnerRe

LafargeHolcim Completed merger; powerful global oligopoly going forward

FedEx

Continuing double-digit% annual EPS growth

Alphabet (Google) Organic revenue growth of mid-teens+% at Search and 30+% at YouTube
Level 3

High-teens% free cash flow growth

DreamWorks

TV and Over-the-Top businesses growing rapidly

*based on local currency

Status Report: Macau

Traveled to Macau in October

Mass vs. VIP Gross Gaming Revenue

Visited all six gaming operators

Met with various consultants,
analysts, non-Macau competitors and
co-investors
Takeaway: Mass gaming has
stabilized
Source: Goldman Sachs; Bernstein; Southeastern Asset Management
Amounts shown for 2015 to 2018 are estimates and may not be met

Status Report: Energy

Spot prices are worse, not better:
Crude Oil
Natural Gas

9/30/15

11/13/15

$45.09

$40.74

2.52

2.36

10%
6%

Our appraisals reflect the reduced

futures strip pricing, and the discounts to
those conservative values remains wide

Acreage and producing assets still have value, even with spot prices at multi-year lows:
Antero Resources bought Utica acreage for $7,000/acre (above our model estimates)
Hess sold Utica acreage at $9,000+/acre
Encana sold Rockies and Haynesville producing assets above our carrying value for
CHKs assets in similar regions
Chesapeake Energy is operationally stronger
today with excellent cost performance:

Source: 3Q15 Earnings Presentation

CONSOL Energy
CONSOL Energys base plan, coupled with additional asset sales, will result in
significant flexibility, including the ability, if appropriate, to separate its coal
and E&P businesses by means of a spin transaction. CONSOL Q3 2015 Earnings Presentation
Per Share

Parameters
Low-end: Public comps1
High-end: Commodity rebound

E&P Division

$ 20 - 30

Coal Division

10

Value implied by CNX Resources a publicly traded

coal company + conservative met coal appraisal

Other Pieces

5+

NAV of Pipeline, Port, and Carries

Closing Price:
(11/13/15)

Total Assets
Less: Net Debt
Value Range

$ 35 - 45
(15)
$ 20 - 30

1 Exploration & Production (E&P) public comps: Range Resources (RRC), EQT Corp (EQT), Antero Resources (AR) and Rice Energy (RICE)

$7.40

Wynn Resorts
Wynn Resorts is a conservatively managed casino operator with a highly
recognizable brand targeting affluent customers.
Strong Business
Las Vegas: Highest grossing properties in Las Vegas
Boston: Development moving forward
Macau: High barriers to entry
Good People
Steve Wynn, CEO
9.9% ownership
Generated ~25% total return CAGR* over 20+ years at Mirage
Generated ~15% total return CAGR over 10+ years at Wynn Resorts

Wynn Resorts: Valuation Scenario #1

At Wynns current stock price, investors are paying less than $13 per share for
>$70 of value in Macau.
U.S. Business
Per Share Parameters

Wynn Las Vegas & Encore $ 60

Las Vegas land
12
Boston
15
U.S. Value
$ 87
Less: U.S. Net Debt
(37)
U.S. Value
$ 50

12.5x EBITDA
$7.5 million/acre
NPV based on filings
Closing Price:
(11/13/15)

Macau Business
72% Wynn Macau Stock

Net NPV of Macau Free

Macau Fees
Total Macau Value

50

.32
Diluted
( !.#$ & '()*+, ./012
) Fully
WYNN Shares
$#.#$15

20+ Cash Flow

$

70+

Appraisal:

$62.20
$120+

Wynn Resorts: Valuation Scenario #2

The companys non-earning assets are worth more than the companys current
stock price and are completely missed in earnings screens.
Non-Earning Assets
Cotai Palace Investment (to date)

Per Share
$ 25

Boston

15

Las Vegas Land

12

Cash on Balance Sheet (U.S. & Macau)

19

Value of Non-Earning Assets

$ 71

Closing Price:
(11/13/15)

$62.20

We get current operating assets that produced ~$10/share of

trailing 12 month property-level EBITDA, net of debt against them,
for less-than-free

Q&A

P/V (Price-To-Value) Ratios

U.S. Large-Cap

U.S. Small-Cap

Global

At 9/30/15

Low-60s%

At 9/30/15

At 9/30/15

At 11/13/15

High-60s% At 11/13/15

Non-U.S.

Low-60s%

High-60s% At 11/13/15

Low-60s%
Mid-60s%

Asia Pacific

At 9/30/15

High-50s%

At 9/30/15

Mid-50s%

At 11/13/15

Mid-60s%

At 11/13/15

Low-60s%

Q&A with Our Global Research Team

Mason Hawkins, CFA

Chairman
Chief Executive Officer
Co-Portfolio Manager-All Funds

Memphis, TN
Ross Glotzbach, CFA

Deputy Director of Research

Co-Portfolio Manager Small-Cap Fund

Jim Thompson, CFA

Senior Analyst

Lowry Howell, CFA

Senior Analyst

Brandon Arrindell, CFA

Analyst

Staley Cates, CFA

President
Chief Investment Officer
Co-Portfolio Manager-All Funds

London
Scott Cobb

Head of Europe
Co-Portfolio Manager International Fund

Josh Shores, CFA

Senior Analyst

Singapore
Ken Siazon

Head of Asia
Co-Portfolio Manager International Fund

Manish Sharma, CFA

Senior Analyst