Media- Equity Market Apr 10 2013 Christopher G. Gilmour-Investment Analyst

Global Markets Company confidential

US Equity Market-S&P 500 Index-Long series Company confidential

S&P 500 and 200-day moving average Company confidential

S&P 500 deflated by US CPI Company confidential

S&P 500 PE Ratio (x) Company confidential

US Yield Gap Company confidential

US Corporate Earnings Growth Company confidential

Nikkei 225 Index-Long series Company confidential

Local Markets Company confidential

The long term case for equities YTD 2013 2.36% Company confidential

JSE All Share Index-Very Long Term YTD 2013 2.36% Company confidential

JSE ALL Share Index YTD Company confidential

JSE Alsi still looking attractive in USD and in real terms Company confidential 14

FTSE/JSE All Share PE Ratio (x) Company confidential

FTSE/JSE FINDI PE Ratio (x) Company confidential

FTSE/JSE Resources PE Ratio (x) Company confidential

FTSE/JSE FINDI Earnings Growth ( YoY % Change) Company confidential

Alsi & its Underlying Earnings Growth Company confidential

Consumption: Real retail sales Company confidential 20

Conclusion Company confidential

Conclusion In immediate future, possibility of a correction in the US equity market. US economy grudgingly gaining traction, with China maintaining momentum. Medium term, things looking distinctly better in the US. Much improved home sales and falling unemployment (apart from Friday 5 April’s figure!). But US equity market discounting far higher economic growth than is likely to be the case. Japanese market likely to perform well on the back of a significantly weaker yen Demand for commodities still remaining reasonably high, though more subdued than in recent years. Single commodity stocks remain vulnerable. JSE Resources index PE ratio still high historically. Company confidential

Conclusion-continued Against this background, difficult to see how SA can maintain a high economic growth path. Interest rates staying at current levels until 2014 at earliest. Sluggish economic growth at best and far below that of our African peers. Financial and Industrial index earnings growth looking much better and sustaining the rarefied level of the index. But investors have bought quality stocks for the longer term, pushing valuations up. Deep value in quality stocks increasingly difficult to find. Retail sales growth looks vulnerable to local cost input shocks, such as a weaker rand and higher food, fuel and administered prices. Our favourite retail stocks remain Mr Price, Shoprite and Woolworths. The African growth story will continue to sustain many retail shares. . Company confidential

Thank You Company confidential