MATERIALS COMPANIES Tyler Hone Jian Huang

Agenda Sector Overview Stock Recommendations Mosaic Crown Potash SIM Weight Recommendations Q&A

OVERVIEW - Currently in-line relative to S&P 500

OVERVIEW Source: https://www.google.com/finance?catid=TRBC%3A51&sort=MARKET_CAP&ei=vtljWfH9OYST2AaG24CgDQ Source: http://markets.on.nytimes.com/research/markets/usmarkets/sectors.asp?sector=51

STOCK RECOMMENDATIONS Current Price Target Price Upside/Downside SIM Weights Proposed SIM Weights Recommendation Mosaic (MOS) $24.18 $31.80 31.53% 1.26% 1.50% HOLD/BUY Crown (CCK) $59.19 $60.87 2.8% 1.59% HOLD Potash Corp (POT) $17.99 $21.57 19.88% 0.00% 0% Increase Mosaic weight by 0.24%, increasing the overall Materials weight to 3.09% Overweight compared to the S&P 500

MOSAIC Co. Company Overview: - A world leader in production and sale of phosphate and potash crop nutrients - Employ nearly 9000 people in 6 countries - Largest Phosphate producer - Sell to 40+ countries Segments: - Potash - Phosphate - International Distribution

MOSAIC Co. Pros: - Global operations and expansion - Recent acquisitions of CF Industries, Inc (phosphate) and Archer Daniels Midland company’s fertilizer distribution in Brazil and Paraguay (2014) Cons: - Increased Supply, Decrease in demand - Raw Material prices and economic environment - Government regulation - Potential Merger between Potash (POT) and Agrium (AGU) called Nutrien

MOSAIC Co. COMPETITOR COMPARISON

MOSAIC Co. VALUATION: - Terminal Discount Rate = 11% - Terminal Growth Rate = 3% - Target Price = $31.80 ($33.00 Morningstar) - Upside = 31.53%

MOSAIC Co.

CROWN Company Overview - Company operated 146 plants in 36 countries Approximately 24,000 employees. Found in 1892 Make metal beverage and food cans, metal aerosol containers, metal closures and specialty packing. Segments - Americas Beverage - North America Food - European Beverage - European Food - Asia Pacific Division

CROWN Pros - Steady operation margin growth - Revolutionary technologies for Cans - Defensive stock price - Increasing demand in developing countries Cons - The Company's international operations generated approximately 77% of sales - Raw Material prices and economic environment - Government regulation

CROWN Operation margin

CROWN COMPETITOR COMPARISON

CROWN VALUATION: - Terminal Discount Rate = 11% - Terminal Growth Rate = 3.0% - Target Price = $60.87 (Range $58.05-$64.03) - Upside = 4.5% Crown sensitivity analysis

CROWN

POTASH Company Overview: - World leader in fertilizer by capacity, producing Potash, Nitrogen, and Phosphate - Canadian potash is primary operation, represent more than 1/5 of global capacity - Investments in potash-related businesses in South America, the Middle East, and Asia - Operations and business in 7 countries

COMPETITOR COMPARISON POTASH COMPETITOR COMPARISON

POTASH

SIM RECOMMENDATIONS FINAL RECOMMENDATIONS Stock Current Price Target Price Upside/Downside SIM Weights Proposed SIM Weights Recommendation Mosaic (MOS) $24.18 $31.80 31.53% 1.26% 1.50% HOLD/BUY Crown (CCK) $59.19 $60.87 2.8% 1.59% HOLD Potash Corp (POT) $17.99 $21.57 19.88% 0.00% 0% Increase Mosaic weight by 0.24%, increasing the overall Materials weight to 3.09% Overweight compared to the S&P

Q&A