SUMMARY

• Intangibles are a Significant Portion of Capital
• Companies with High-EVA Intangibles x Goodwill/Capital Outperform
• The Market Rewards Companies that Build Intangibles, but not if They Buy Them
• Combining Level of EVA Intangibles with Good Governance is Even Better
• Level of EVA Intangibles is Positively Correlated with ESG
• Growth in EVA Intangibles is Negatively Correlated with Governance, which is a Good Thing Since It is Negatively Correlated with Future EVA Momentum