1. Roger Jones, Co-Head of Commodities
Kevin Norrish, Director, Commodities Research
Bharath Manium, Director, Commodities Investor Solutions
Monday 10 March 2008

2. Roger Jones, Co-Head of Commodities
Welcome

3. Our commodities business operates globally across a broad range of asset classes
Energy
Crude Oil
Refined Products
European Power & Gas
US Power & Gas
Coal
Other Speciality Markets
Forest Products
Weather
Environmental products
Agricultural products
Softs
Freight
Industrial Materials
Base Metals
Precious Metals
Plastics
Investor Products
Swaps
Commodity Bonds
Funds

4. Introductions Kevin Norrish, Director, Commodities Research
- Commodity market investment outlook
- Results of conference audience survey
- Comparison with 2007 results
Bharath Manium, Director, Commodities Investor Solutions
- Latest evolution in investor products

5. Kevin Norrish, Director, Commodities Research
Commodity market investment outlook
Survey findings

6. In the wake of the credit crisis, commodity investments have outperformed

7. Demand for commodity investments continues to gather pace
Commodity market investments hit $178bn
in 2007
Launch of new commodity investor products has soared in early 2008

8. Key fundamental drivers

9. Depletion of the resource base
Steep decline in mature non-OPEC oil output continues
Copper reserves relative to demand are very low

10. Costs escalation is rampant
Oil project capital costs rising as fast as prices
- tar sands capital costs +300% since 2001
Costs of aluminium smelters are more than double the previous decade

11. Commodity market trends are increasingly interlinked
Climate change/carbon costs
Rising Asian living standards
& industrialisation
Higher gold prices
Inflation concerns & weaker dollar
Inflation
concerns
Inflation
concerns
Rising energy prices
Higher grain prices
Higher livestock prices
Boost demand
for biofuels & raise
production costs
Higher animal feed costs
Higher food prices raise labour costs
Higher food prices raise labour costs
Higher industrial metals prices
Producer policy
Resource scarcity

12. It’s not too late!
The prices of many commodities have set new records in nominal terms in recent months. But relative to inflation-adjusted benchmarks, price rises look more modest. Many commodities are still trading a long way below their 1970/80s “real” price highs.

13. Carbon: New opportunities for Investors
Analysis of the relative economics of different emissions-cutting measures is still in its infancy and cost curves like that shown below come in many different shapes and sizes. But one way or another the incorporation of carbon emission costs will be an important factor impacting future energy costs and prices.

14. Barcelona Annual Conference Survey Results

15. In turbulent financial conditions, investors are raising their
commodities exposure…

16. What do you think is the most attractive aspect of investing in commodities?
Today
2007
55% 8%
33% 4%
2006
48%
15%
33% 4%
Question 1

17. In 2006/2007, what percentage of your portfolio was in commodities?
Today
2007
33%
37%
11%
19%
2006
50%
31% 7%
12%
Question 2

18. Over the next 3 years, what percentage of your portfolio will be in commodities?
Today
2007 6%
35%
37%
22%
2006 7%
38%
19%
36%
Question 3

19. Investors view commodities as long-term exposures…

20. How long, typically, would you expect to hold your commodity exposure?
Today
2007 9%
20%
29%
42%
2006
12%
21%
40%
28%
Question 4

21. What is currently your greatest concern with investing in commodities?
Today
2007
43%
21%
23%
13%
2006
54%
17%
15%
13%
Question 5

22. What do you think the average price of oil will be over the next five years?
54%
27%
16% 2%
New York Conference Results December 2007
Today
Question 6

23. Investor strategy…

24. How are you currently investing in commodities?
Today
2007
18%
25%
13%
45%
2006
16%
20%
49%
Question 7

25. Over the next 3 years, how do you expect to be investing in commodities?
Today
2007 3%
21%
27%
50%
2006
11%
28%
15%
46%
Question 8

26. Which markets do investors favour…?

27. Which commodity sector do you expect will give the highest returns in 2008?
New York Conference Results December 2007
18%
19% 8%
45%
10%
Today
Question 9

28. What, in your opinion is the best way of getting exposure to the climate change theme?
33%
16%
40%
12%
New York Conference Results December 2007
Today
Question 10

29. Bharath Manium, Director, Commodities Investor Solutions
Product innovations

30. Product Innovations New asset underlyings New payoff structures
- Carbon
- Coal and Freight
Agriculturals
New payoff structures
The quest for alpha
- CORALS
- Everest Alpha

31. Questions & Answers