1. December 2014 Investment review

2. Market Review 2 Oil Price crash  Implications  Impact on portfolio

3. Oil Price -Reasons for Fall 3  OPEC is trying to pressure high cost producers  Demand a little softer  Speculators exiting the market

4. Oil Price - Fundamentals 4  Low prices solve low prices  Supply will be cut and demand will rise but will take time.

5. Oil Price - Implications 5  Global growth – adds 1% to global growth – a massive transfer of wealth  US manufacturing remains strong and will be assisted by low oil price  Negative for Australian terms of trade – feeds into Australia via terms of trade and lower A$  Positive for the consumer

6. Oil Price - Changes to the Portfolio 6  Have not sold oil exposure as market is factoring in a continuation of low oil prices  Adding to Consumer exposure via Flight Centre  High quality business with excellent management and no debt  Down 20% on the year due to softer consumer environment in the past six months but still growing solidly  Lower oil price can drive lower flight costs  Earns profits offshore which will benefit from lower A$  via terms of trade and lower A$  Considering the best exposures to improved global growth – eg revisit Brambles  Topped up BHP into weakness

7. 7 Disclaimer DISCLAIMER This document has been prepared by Dalton Nicol Reid Pty Ltd, AFS Representative - 294844 of DNR AFSL Pty Ltd ABN 39 118 946 400, AFSL 301658. It is general information only and is not intended to be a recommendation to invest in any product or financial service mentioned above. Whilst Dalton Nicol Reid has used its best endeavours to ensure the information within this document is accurate it cannot be relied upon in any way and recipients must make their own enquiries concerning the accuracy of the information within. The general information in this document has been prepared without reference to any recipients objectives, financial situation or needs. Before making any financial investment decisions we recommend recipients obtain legal and taxation advice appropriate to their particular needs. Investment in a Dalton Nicol Reid individually managed account can only be made on completion of all the required documentation.