1. Alliance Trust PLC Economic update Shona Dobbie Chief Economist 3 May 2013

2. Source: INKCINCT Cartoons

3. US – housing and labour markets 0 10 20 30 40 50 60 70 80 03040506070809101112 NAHB Index Prospective Buyers Source: Reuters EcoWin Housing MarketFull-time/Part-time Employment IndexRatio 9800020406081012 3.9 4.1 4.3 4.5 4.7 4.9 5.1

4. US – corporate profitability Source: Reuters EcoWin Corporate profits and GDPUS Corporate profits as % GDP Index% 00020406081012 75 100 125 150 175 200 225 250 Corporate Profits GDP 6 8 10 12 14 50607080900010 Rebased Jan 2000 = 100

5. US – weak fiscal position Source: Reuters EcoWin Outlays and receiptsFederal debt USD (billions)USD (thousand billions) 0203040506070809101112 125 150 175 200 225 250 275 300 325 Federal Outlays Federal Receipts 00020406081012 5 7 9 11 13 15 17 Federal Debt Outstanding GDP Current Debt Ceiling

6. US government debt and financing Source: Reuters EcoWin Government bond yield (10 year)Quantitative easing %USD (thousand billions)GBP (billions) 07080910111213 1.0 2.0 3.0 4.0 5.0 6.0 US UK 080910111213 0 50 100 150 200 250 300 350 400 1.00 1.50 2.00 2.50 3.00 3.50 Fed Total Assets (LHS) BoE Gilt Purchases (RHS)

7. Japan – poor economic performance Source: Reuters EcoWin Household spending and investmentGovernment spending and exports Index 0203040506070809101112 85 90 95 100 105 110 115 Households Investment GDP 020406081012 90 110 130 150 170 190 Government Spending Exports GDP

8. Japan – ‘Abenomics’ Source: Reuters EcoWin Monetary baseConfidence and asset prices JPY (thousand billions)Index (diffusion)Index 96980002040608101214 50 75 100 125 150 175 200 225 250 275 600 800 1000 1200 1400 1600 15 25 35 45 55 65 06070809101112 Confidence (LHS) Topix (RHS)

9. Japan – the end of deflation? 88909294969800020406081012 -0.75 0.00 0.75 1.50 -1.5 0.0 1.5 3.0 Labour Force (RHS) Core CPI ( LHS) 5yr smoothing Target CPI Source: Reuters EcoWin Yoy % change

10. Abenomics – impact on currency Source: Reuters EcoWin Index Rebase end June 2012 = 100 Jun 12 JulAugSepOctNovDecJan 13 FebMarApr 75 80 85 90 95 100 105 110 Sterling Dollar Yen Euro

11. Europe – unemployment rates Source: Reuters EcoWin Periphery economiesCore economies % 07080910111213 5.0 12.5 20.0 27.5 Spain Greece Eurozone 070809101112 6 7 8 9 10 11 12 France Eurozone Germany

12. Europe – key policy rates Source: Reuters EcoWin % 0304050607080910111213 0 1 2 3 4 5 6 UK Euro-Zone

13. China – exports and investment Source: Reuters EcoWin ExportsFixed asset investment (FAI) USD (billions)% change yoy (3mma) Source: NBS, In-house analysis 07080910111213 20 40 60 80 100 Asia Europe US 070809101112 15.0 20.0 25.0 30.0 35.0 40.0 Total Manufacturing

14. China – structural change? Source: Reuters EcoWin GDP growthBreakdown of GDP % change yoy% of GDP 0809101112 6 7 8 9 10 11 12 13 9092949698000204060810 25.0 30.0 35.0 40.0 45.0 50.0 Investment Household Spending

15. A busy year

16. Important information Whilst considerable care has been taken in compiling the content of this presentation, no representation or warranty, expressed or implied, is made by Alliance Trust PLC as to its accuracy or completeness. The value of investments and the income from them may go down as well as up and are not guaranteed. The original amount invested may not be returned. Any examples are for illustration purposes only, the figures are not guaranteed and should not be relied on. Past performance is not a guide to future performance. Further information is available on our website www.alliancetrust.co.uk All figures and graphs are sourced at Alliance Trust PLC unless otherwise stated. Nothing said or covered by the presentation today should be construed as being an inducement or invitation in investment activity. No advice is given by Alliance Trust PLC.