1. JAMAICA STOCK EXCHANGE 38A Harbour Street

2. Economic Overview  The challenges facing the Jamaican economy are: high debt, crime, high unemployment and slow growth.  Foreign exchange is derived mostly from tourism, remittances and bauxite/alumina. Tourism revenues account for roughly 10% of GDP, Remittances account for nearly 15% of GDP and Bauxite and alumina account for about 10% of GDP.  Jamaican dollar is relatively stable, in 2011, the dollar depreciated marginally by J$0.74 or 0.86%  Inflation rate in 2011 was 6.0%, which was a decline in comparison to the inflation rate of 11.7% in 2010.

3. Economic Overview  Real GDP grew by 1.5% in 2011, the first full year of growth realized since calendar year 2007.  Total public debt is J$1.63 trillion or 131% of GDP  Interest rates continue on a downward trend as the average yields of the Treasury Bills rates in December 2011 were: 28-Day – 6.48%, 90-Day – 6.21% and 180-Day – 6.46%  Net International Reserves as at the end of January 2012 was US$1.88 billion

4. Fiscal Policy The government is committed to a fiscal adjustment and the medium term programme projects a fiscal deficit of 4.6% of GDP towards a balanced Budget in FY2015/2016

5. Fiscal Policy  Reduce spending  Tax Reform – subsidies in health care and education along with other tax incentives As a result of the ballooning debt, in 2010, the Jamaican government took the initiative to execute a liability management exercise with the objective of realigning the domestic debt portfolio in relation to the maturity structure, which involved a voluntary debt exchange.

6. Jamaica Debt Exchange Programme (JDX) The main characteristics of the JDX, which sought to exchange all market issued Jamaica and United States Dollar local securities were:  A par-for-par exchange offer with no “haircuts”;  Voluntary exchange of over 350 market issued domestic bonds valued at approximately $701.5 billion for 25 new benchmark bonds; approximately $701.5 billion for 25 new benchmark bonds;  Voluntary exchange of short dated high yielding interest bearing securities for longer dated securities with significantly lower yields;  Extension of the maturity profile of the domestic debt portfolio in order to lower the refinancing risks;  Achievement of substantial cost savings;  Issue of an appropriate mix of fixed, variable and USD securities; and  The introduction of new CPI-Indexed Investment Bonds. Following execution of the JDX, the results revealed a participation rate of 99.2% from investors. This included 100% participation from the financial institutions and represented $695.60 billion of the total eligible bonds.

7. Monetary Policy  The monetary based expanded by $11.2 billion or 14.0% during the December 2011 quarter, relative to $9.4 billion or 20.8% in the December 2010 quarter.  30-Day Certificate of Deposit remained at 6.25% throughout the December 2011 quarter  Cash Reserve and Liquid Assets requirements were maintained at 12.0% and 26.0% respectively in December 2011 quarter.

8. Monetary Policy  For the December 2011 quarter, broad Jamaica Dollar money supply (M3J) increased by 9.3 per cent. This expansion was well above the increase of 3.4 per cent in the corresponding quarter of 2010 as well as the average growth of 6.0 per cent for the last five December quarters.  The main source of expansion in M3J for the review quarter was a net unwinding of BOJ Certificates of Deposit (CDs) of $22.6 billion, or 18.6 per cent, relative to the net unwinding of $7.0 billion or 5.2 per cent in the December 2010 quarter.  The acceleration in the money supply during the review quarter was reflected in increases of 7.9 per cent and 18.2 per cent in local currency deposits and currency in circulation, respectively.

9. Monetary Policy

10. Government Policy’s and the JSE  Tax benefits – dividends (for residents) are tax free  Tax benefits – capital gains are tax free  Tax benefits – no transfer or stamp duty tax  Junior Market – corporate tax is zero for the first 5 years after listing and years 6 to 10, corporate tax is 50% of the rate.

11. Overview of JSE  The Jamaica Stock Exchange began operations on February 3, 1969  Private company, full demutualization in 2008  JCSD – subsidiary of the JSE, keeps the share certificates for investors  Junior Market  US Dollar Equities Market

12. Overview of the JSE  JSE mandate is to provide a fair and efficient and transparent stock market  JSE is obliged to protect the investors  JSE operates and monitors trading activity  Responsible for ensuring that timely material information is disclosed to allow investors to make prudent decisions  If listed companies fail to do so - the JSE will take action within the Rules

13. Overview of the JSE The JSE:  Ensures brokers meet the fit and proper standard for operation of a brokerage  Operate Compensation Fund to secure investors  Has regulatory responsibility to ensure that: Companies meet basic criteria at the time of listing Companies meet basic criteria at the time of listing Companies continue to meet these criteria throughout Companies continue to meet these criteria throughout Companies comply with Rules, including Companies comply with Rules, including Provision of timely information to investors Provision of timely information to investors Encourage good corporate governance practices Encourage good corporate governance practices

14. New Listings Year No. of ListingsCapital RaisedIndustry 200211.02 BillionFinance 20031626.14 MillionFinance 20051911.2 MillionFinance 20062519 MillionFinance & Gaming 200864,266 MillionFinance & REIT 20091100 MillionFinance 2010101,302.6 Million Finance, Manufacturing, Retail & Tourism 201163,028.2 Million Finance, Manufacturing, Retail & Insurance

15. Additional Capital Raised Year Rights Issues Capital RaisedIndustry 20041258.7 MillionCommunications 200531,823.8 Million Finance, Retail & Insurance 20071501 millionFinance 20081127 MillionOther

16. Benefits for Listing  Raise capital for refinancing of debts, expansion projects, development of new products, etc.  Enhance corporate profile, as such the ability to secure additional financing  Provide liquidity for shareholders  Share options are available to employees  Market valuation

17. Movement in the Indices From 2006 to 2011, the JSE Index depreciated on average by 0.09%. However, from 2008 the JSE Main Index has gradually increased by 6.02% on average.

18. Movement in the Indices  The Business Insider ranked the JSE as one of the 11 Best Performing Stock Markets of 2011.  They calculated yearly returns for some 100 global exchanges to see how indexes compared to each other.  Findings: less than 15% of markets are in positive territory.  JSE ranked 6 th, up 12.8% Read more: http://www.businessinsider.com/11-best-performing- stock-markets-2011-2011-12?op=1#ixzz1pyJLKd70 http://www.businessinsider.com/11-best-performing- stock-markets-2011-2011-12?op=1#ixzz1pyJLKd70http://www.businessinsider.com/11-best-performing- stock-markets-2011-2011-12?op=1#ixzz1pyJLKd70

19. Top 20 Stocks for 2011 2011 Top Twenty Price Appreciation WinnersLosers Company%OpenCloseCompany%OpenClose Jamaica Money Market Brokers210.00%4.0012.40Trinidad Cement Limited(65.45%)53.0018.31 Barita Investments Limited136.68%1.994.71Cable & Wireless (Jamaica)(39.39%)0.330.20 Pegasus Hotel87.26%12.0122.49Salada Foods Jamaica(31.77%)13.008.87 Ciboney Group66.67%0.030.05Guardian Holdings Limited(25.00%)220.00165.00 Berger Paints (Jamaica)59.20%2.013.20Lascelles, deMercado & Co(4.10%)305.00292.50 Kingston Wharves48.00%4.005.92Caribbean Cement Company(2.28%)3.073.00 National Commercial Bank Jamaica45.24%19.3228.06Jamaica Broilers Group(1.50%)6.015.92 Desnoes & Geddes42.90%3.595.13 Supreme Ventures38.25%2.173.00 Sagicor Life Jamaica38.12%7.2410.00 Capital & Credit Financial Group37.88%3.304.55 Pan Caribbean Financial Services36.28%19.4926.56 Mayberry Investments Limited31.98%2.473.26 Scotia Investments Jamaica31.32%22.0028.89 Gleaner Company29.41%1.702.20 Pan Jamaican Investment Trust27.65%47.0160.01 Hardware & Lumber26.88%4.655.90 GraceKennedy Limited23.51%51.0062.99 Jamaica Producers Group18.57%20.2524.01 Carreras Limited15.92%53.0761.52

20. Performance of the Securities on the Junior Market in 2011 SECURITIES% Change Access Financial Services Limited(8.00%) Blue Power Group Limited29.57% Cargo Handlers Limited0.38% Dolphin Cove Limited68.51% Jamaican Teas Limited25.25% Lasco Distributors Limited284.29% Lasco Financial Services Limited140.93% Lasco Manufacturing Limited142.26% Average Price Appreciation(%)85.40%

21. Appreciation in Price Since Listing Securities Year Listed % Change in Price JMMB Limited2002198.80% Mayberry Investments Limited2005-35.45% Supreme Ventures Limited2006-37.63% Carlton Savannah REIT (Jamaica) Ltd.2008-23.52% Access Financial Services Limited2009150.82%

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