Investing in the future mega macro trends of our planet - Energy, Agriculture, Water, Natural Resources

1. INDUSTRY OVERVIEW 2

2. POPULATION & ENERGY DEMAND We believe “Investing in the Future of Energy” is the most significant investment opportunity of our time. Population and income growth are the two most powerful forces behind the demand for energy Over the last 20 years.. Population increased by 1.6 billion people Real income rose by 87% Over the next 20 years… 1.4 billion projected increase in population 100% projected increase in real income As a result, by 2030… Primary energy use expected to grow 40% 93% of growth to come from non-OECD economies Developing countries to consume 2/3 of all global energy We are witnessing a paradigm shift in global energy New opportunities in both clean and traditional energy as efficiencies improve Fossil fuel energy sources are diversifying 1990-2010: Fossil fuels made up 83% of energy growth 2010-2030: Contribution projected to fall to 64% Rise of coal & natural gas China is building a new coal plant every week, tripling its consumption and becoming a net importer of coal New drilling techniques are “revolutionizing” natural gas industry Growing impact of climate concerns Source: Sigma Xi

3. OIL DEPENDENCY By 2025, global oil demand likely to be 60% greater than today Annual rate of oil consumption growing in developing powers: China - 7.5% & India - 5.5% Both expected to take a “quantum leap” over the next decade “Peak Oil” concerns Experts say many of the Middle East oil nations, including Saudi Arabia, are already pumping oil from known “post peak” fields Once an oil field has reached “peak oil” – the rate of decline is dramatic and can be as much as 10% per year Growing interest in ‘unconventional’ oil plays ‘Big Oil’ shifting focus to shale gas, tar sands, offshore fields Source: CIA World Factbook

4. INVESTMENT IN CLEAN ENERGY The International Energy Agency (IEA) predicts low carbon energy investments will reach $1.6 trillion by 2050. Global New Investment in Clean Energy (actual) Annual Required Clean Energy Capital (projected) Source: Bloomberg New Energy Finance, 2010

5. CLEAN ENERGY INVESTMENT TRENDS Investing in clean energy is a top priority around the world. Worldwide investment topped $243 billion in 2010 - a 630% increase from 2004 levels China: As a percentage of GDP, China’s investment in alternative energy is already 10X that of the U.S. United States: $94.1 billion in U.S. stimulus funding dedicated to renewable energy sector over the next decade Europe: Germany, Spain, Italy focusing on solar energy UK and Scotland developing significant off-shore wind and tidal resources Middle East: New programs to promote and develop solar and wind farms and solar-powered desalination Using oil more efficiently through fuel cells, carbon sequestration, oil gasification, and green building. City of Masdar in Abu Dhabi: Aims to be the first carbon-neutral metropolis in the world and the center of global renewable energy research Source: The Pew Charitable Trusts, 2010 Clean energy resources will affect all technologies and have an impact on every region of the globe Significant contributor to future energy demand Total clean energy generating capacity nearly doubled over past 3 years due to strong incentives and falling costs Projected sector growth to 934MW by 2020 – a 431% increase over 10 years Technology advancements increasing cost competitiveness Wind turbine costs have fallen 15-20% over past few years Energy storage and smart grid systems increasing energy efficiency

6. RENEWABLE ENERGY OLYMPICS Sources: The Pew Charitable Trusts, 2011; SOPAC Applied Geoscience and Technology Division, 2011; Reuters; JDPower & Associates, 2011

7. With 17.5 million gallons used every second… Water is our most critical resource. GLOBAL DEMAND FOR FRESHWATER The British non-profit International Alert released a study identifying 46 countries home to 2.7 billion people where water and climate stresses could ignite violent conflict by 2025 UN Secretary-General Ban Ki-moon: “The consequences for humanity are grave. Water scarcity threatens economic and social gains and is a potent fuel for wars and conflict.” "We think there'll be world wars fought about water in the future," predicts the aptly named Peter Spillett of RWE/Thames Water, one of the three largest water companies in the world. World Bank reports global demand for water is doubling every 21 years – supplies cannot remotely keep up with demand as population soars, nations develop and agriculture expands Freshwater consumption has doubled since World War II and is expected to increase another 25% by 2030. Humans are extracting freshwater at rates up to 100X the natural replacement rate (World Water Council) Neyyar Reservoir Trivandrum, India MiyunReservoir Beijing, China Reservoir, Southern Spain Lake Mead Reservoir, USA Reservoir, Queensland, Australia

8. THE CASE FOR INVESTING IN WATER The Water / Energy Conundrum Energy and water are inextricably linked It requires energy to produce and treat water, and vast water supplies to generate energy Fossil fuel power plants consume more than 500 billion liters of freshwater every day in the U.S. alone China’s reliance on coal will increase demand for water to 215 trillion gallons by 2030, 52 trillion more than currently available Strain on global infrastructure will catalyze new investment Estimated $1 trillion needed over next 20 years to meet global demand for clean water U.S.: $150 billion required to upgrade aging water infrastructure China: $125 billion new funding to build wastewater treatment plants and expand distribution Sector poised for tremendous growth Global water sector currently valued at $425 billion Over next 20 years expected to reach $6 trillion, with an annual growth rate of 14%. On average, water costs are less than 1% of disposable income, making price increases inevitable 285 public water stocks / $750 billion market cap Profit opportunities in: Infrastructure Smart meters Water rights Desalination Purification New technologies Energy efficiency Wastewater reclamation

9. GLOBAL AGRICULTURE CHALLENGES Population, rising income and urbanization are shifting global dietary patterns World population to top 9 billion by 2050 Agricultural output needs to grow 70% to meet new demand Newfound prosperity will catalyze a “historic shift” in global dietary patterns Growing middle class shifts away from grains and vegetables to a more meat-centric (and more energy-intensive) diet. FAO statistics show “remarkable” increase in consumption of livestock products in East Asia, mainly due to China. Significant growth projected by 2030 Decreasing availability of arable land Arable land per person decreasing in Asia, where demand for food is increasing the most ‘Land grab’ phenomenon In 2009, foreign investors purchased 111 million acres of farmland in developing world - a tenfold increase over 10 years The biggest buyers? Sovereign wealth funds from China, India & Middle East seeking agri resources Competition from biofuels New mandates will require 240 million more acres for biofuel crops; equivalent of 50% of arable land in North America and 6% of world total arable land 1 out of every 4 ears of harvested corn in the U.S. - the world’s largest producer - winds up in an ethanol plant. Generating 1 gallon of fuel from irrigated corn requires 650 gallons of water

10. WHY INVEST IN AGRICULTURE? Are we witnessing the “end of cheap food?” Over next decade, Food & Agriculture Organization (FAO) predicts grain prices will remain 15-40% higher than 1997-2006 levels Last year, the cost of total global food imports topped $1 trillion for only the second time in history. In 2011, costs of food imports are on track to reach record highs, warns United Nations Commodity volatility in an uncertain market Sky high food prices are nearing 2008 records, prompting U.N. to warn of pending “food crisis” Weather anomalies have devastated crops, leading to price jumps in wheat, soybeans, corn, coffee, sugar and other basic commodities. Agriculture has a severe water problem Nearly 70% of global water consumption is used for irrigation Agriculture can command up to 90% of domestic water resources in developing nations Every year, the global agricultural sector wastes approximately 60% of the 2,500 trillion liters of water it uses Irrigation and crop yield challenges Despite years of advances, gains in agriculture yield per acre have slowed down to less than 1% a year New investment is crucial FAO says new demand requires a 47% increase in annual investment in agriculture in the developing world Current investments levels of $189bn must reach $279 billion/year at a minimum, and $479 billion/year to combat global hunger

11. INVESTING IN NATURAL RESOURCES “ We are running a natural resources deficit. It takes 1 ½ years to replenish 1 year’s consumption of natural resources. By 2030, meeting global resource demands will require the equivalent of two Planet Earths.”WWF, Living Planet Index Report 2010 Energetic Limits to Economic Growth Resources and energy supplies are “limiting factors” to economic growth & development Developing economies rely upon access to industrial metals & minerals Resource demand from developing world to exceed that of developed world by 2015 China now consumes: One-half of world’s iron ore One-third of world’s aluminum One-quarter of world’s copper Increased spending on infrastructure worldwide Resource scarcity prompts race for overseas supplies Developing nations racing to make foreign acquisitions in a “global land grab” China, India & Middle Eastern nations have struck notable deals in Australia, Africa & South America Demand increasing for rare earth elements & lithium Crucial for clean energy technologies, advanced batteries, electric vehicles and high technology manufacturing China dominates rare earth market with 95% of supplies A Nuclear Energy Comeback China has 20 new nuclear plants under construction and plans for six-fold increase over next decade. Global demand for mined uranium predicted to increase 4X over the next 30 years

12. HEDGE SYSTEMATIC CARBON ENERGY RESOURCES AGRICULTURE WATER CLEAN ENERGY PROFIT PEOPLE PLANET COMMODITY STRATEGIES EQUITY STRATEGIES TREND STRATEGIES Population growth 79 million people/year Energy demand to increase 50% by 2030 Diversification of energy resources Significant profit opportunities Economic, political & social catalysts INVESTING IN THE FUTURE OF ENERGY Dramatic increase in energy spending Stimulus Spending Energy security Resources vs. Consumption Largest global macro theme worldwide Pollution & climate change Water scarcity & increased demand ENERGY – WATER – RESOURCES – CLIMATE CONUNDRUM MACRO SNAPSHOT THE BRIDGE PERIOD Traditional energy becomes cleaner & >>> more energy efficient <<< Clean energy becomes more cost efficient & accessible