CMBS RMBS 750 institutional investors $1.7 trillion outstanding collateral* 250 institutional investors $820 billion outstanding collateral* Realpoint is expanding to cover residential mortgage-backed  securities (RMBS)—a larger market than commercial mortgage- backed securities (CMBS). $48.3 million U.S. Research Purchase price Location Business focus 2010 Acquisitions Realpoint Our largest deal of the year was the $48 million purchase of Realpoint, a Nationally Recognized Statistical  Rating Organization ( NRSRO) that specializes in structured finance. This builds on our recent entry into the  corporate credit ratings market. We believe there’s a large need for new voices and competition among credit  raters. We continue to invest in this area and think it represents a major opportunity for Morningstar. Realpoint rates commercial mortgage-backed securities ( CMBS)—a market that had significant problems during  the financial crisis. But Realpoint does its work the right way. Its analysts visit each property contained in  a  CMBS issue and understand the associated cash flows. It’s solid, bottom-up research. Realpoint earns the bulk  of its revenue by selling its research to buy-side institutional clients—proof its research has value.  Rob Dobilas leads Realpoint and has a deep knowledge of the  CMBS industry. Rob started Realpoint as a unit  of  GMAC Commercial Holding in 2001. In 2007, Rob and Realpoint’s senior team bought the business from  GMAC (then called Capmark). One of our senior managers met Rob at an industry event. She was impressed and  recommended we talk to Rob. We met with him, were also impressed, and agreed it made sense to acquire  Realpoint. We’re providing growth capital to expand Realpoint’s business, and this year we plan to enter  the residential mortgage-backed securities market ( RMBS). The RMBS market is larger than the CMBS market  and a natural extension of Realpoint’s capabilities.  * Source:IntexSolutions,Inc. Morningstar, Inc. 2010 Annual Report 17