1. Materials Sector Ticker: XLB Frank McLaughlin Walter Nabarrete

2. Overview  Includes companies that are involved with the discovery and processing of raw materials  Ranges from chemical producers to forestry product manufacturers to companies that mine and refine metals  Largest holdings: Mansanto – 11.34%, DuPont – 9.11% and Dow Chemical – 8.41%

3. MAT – Last Semester 08/20/2012 – 1/24/2013

4. XLB vs S&P 500

5. Current State of Sector  Professional Viewpoint: Slightly Bullish  Good performer in 2012 & off to quick start in 2013  Relying heavy on chemical sector  Currently outperforming S&P  Macroeconomic Threats  Crude oil prices could rise  Gold & mining companies not performing well  Sector depends heavily on strong economy

6. Biggest Movers  Positive:  Monsanto +15.02%  Dow Chemical +13.90%  Negative:  Newmont Mining Corp. -17.95%  Freeport-McMoran Copper & Gold -16.74% (Past 3 Months)

7. Recent Headlines  China Rallying Economic Strength  Great news for manufacturing & raw materials  Monsanto Ends Patent Dispute with Brazilian Farmers  Dow Chemical Resigns from National Association of Manufacturers (NAM)  Opposes natural gas exports

8. Key Drivers  Increase in World Population  More Food  World Population 9.3 Billion by 2050  Health of Economy  Increased Consumption  Available Land  New Crop Growing Technology

9. Key Drivers  Cost of Energy  Natural Gas  Government Regulation  Safety of Product  Supply and Demand

10. Relevant Valuation Matrices  P/E Ratio  P/S Ratio  Materials Sector is Sensitive to the Business Cycle  Keep Debt and Profit Margins in Mind  P/B Ratio  A lot of Capital

11. The Mosaic Company (MOS)  Date Presented: Oct. 16 th  Recommendation: No  Vote: N/A  Price Then: $54.49  Price Now: $59.46  MOS announced it has plans to open a $700 million Ammonia plant.  Expanding its Potash operation.

12. The Mosaic Company

13. Freeport-McMoRan Copper & Gold Inc. (FCX)  Date Presented: Nov. 1 st  Recommendation: No  Vote: N/A  Price Then: $40.50  Price Now: $35.02  Merger with Plains Exploration & Production Company and McMoRan Exploration Co. on December 5, 2012.

14. Freeport-McMoRan Copper & Gold

15. Sigma-Aldrich Corporation  Date Presented: Nov.27 th  Recommendation: No  Vote: N/A  Price Then: $72.20  Price Now: $76.91  Agreed to 50/50 joint venture with Soulbrain Co. Ltd. On December 21, 2012. (Ticker: SIAL)

16. Sigma-Aldrich Corporation

17. Sources  http://finviz.com/map.ashx?t=sec&st=w13 http://finviz.com/map.ashx?t=sec&st=w13  Finance.yahoo.com  Reuters.com  http://seekingalpha.com/article/1123161-macroeconomics-technicals-and- seasonality-all-pointing-to-higher-crude-prices?source=yahoo http://seekingalpha.com/article/1123161-macroeconomics-technicals-and- seasonality-all-pointing-to-higher-crude-prices?source=yahoo  http://seekingalpha.com/article/1111171-is-manufacturing-getting-ready-to-save- us-again?source=yahoo http://seekingalpha.com/article/1111171-is-manufacturing-getting-ready-to-save- us-again?source=yahoo  http://www.bizjournals.com/stlouis/blog/2013/01/monsanto-offers-compromise- to.html http://www.bizjournals.com/stlouis/blog/2013/01/monsanto-offers-compromise- to.html  http://www.forbes.com/sites/jonentine/2013/01/24/odd-couple-will-dow-chemical- and-ed-markeys-opposition-to-natural-gas-exports-cripple-americas-energy- advantage/  https://www.fidelity.com/viewpoints/materials-sectors-2012 https://www.fidelity.com/viewpoints/materials-sectors-2012  http://www.investopedia.com/articles/fundamental/03/032603.asp http://www.investopedia.com/articles/fundamental/03/032603.asp  http://www.investopedia.com/terms/c/capitalintensive.asp#axzz2IqZOVAIT http://www.investopedia.com/terms/c/capitalintensive.asp#axzz2IqZOVAIT  http://www.investopedia.com/articles/basics/10/profit-with-pe- power.asp#axzz2IqZOVAIT  http://finance.yahoo.com/news/sigma-aldrich-form-joint-venture-130000776.html