EQUITY RESEARCH

Hong Kong Open | 5 July 2012

ASIA EX-JAPAN MORNING RESEARCH SUMMARY

Highlights
Television Broadcasts Ltd. (0511.HK) 1-Overweight/1-Positive

Television Broadcasts Ltd.: A compelling storyline; initiate at 1-OW

Summary of Changes
Rating Rating Changes Television Broadcasts Ltd. Target Price Changes Compal Communications Inc. 8078.TW 3-UW 3-UW 42.00 30.00 3.56 3.21 3.41 2.50 0511.HK Old 0-NR New 1-OW Price Target Old N/A New 63.00 EPS FY1 (E) Old N/A New 3.86 EPS FY2 (E) Old N/A New 4.16

Source & Legend

Company Research
Compal Communications Inc.: More risks on Windows Phone transition Foxconn Technology Co., Ltd.: Expect flattish June, but improvement in Apple components due to Macs ramping Television Broadcasts Ltd.: A compelling storyline; initiate at 1-OW Zoomlion Heavy Industry Science and Technology Co., Ltd.: Too good to be true? Not exactly

This summary is compiled from research reports previously published by Barclays Equity Research. A full list of all publications is available on Barclays Live. Barclays Capital Inc. and/or one of its affiliates does and seeks to do business with companies covered in its research reports. As a result, investors should be aware that the firm may have a conflict of interest that could affect the objectivity of this report. Investors should consider this report as only a single factor in making their investment decision. One or more of the research reports referenced herein has been prepared in whole or in part by equity research analysts based outside the US who are not registered/qualified as research analysts with FINRA. For disclosures associated with each report, please refer to the full report on Barclays Live.

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Industry Research
Asia ex-Japan Oil & Gas: Asia Oil Services & Rig-builders: Withstanding oil price volatility India Capital Goods Sector: Feedback from APAC trip: Cautious cycle but reforms play gaining attention India Metals & Mining: Assessing commodity price risks Taiwan Banks: Cross-Strait RMB developments

Macro Research
Australia: Commodity-based model estimate for Q2 GDP supports RBA inaction, but it is premature to expect a sustained rise in AU yields China: Postcard from Beijing Global Macro Daily (Sydney Open): An ECB cut - bad for the EUR, good for risk Malaysia: Trade surplus at decade lows on higher imports

Publications Summary
Basic Industries

India Metals & Mining: Assessing commodity price risks

Sector View 1-Positive

We have run a sensitivity analysis across our Indian Metals & Mining coverage to gauge what the impact of current spot commodity prices and currency exchange rates would be on our earnings estimates if these levels were to be sustained. Our scenario analysis suggests downside risk to Nalco (33% potential downside to FY13E earnings), Tata Steel (22%) and SAIL (11%) if commodity prices and forex rates remain at current levels. The downside risk for Tata Steel would largely be from translational losses. On the other hand, the EPS impact on Hindalco would likely be neutral due to translational gains. However, we maintain estimates as our economists expect a rebound in China's economy resulting in key variables reverting to our base case assumptions. Coal India followed by JSPL remain our top picks, and we see valuation comfort in Hindalco and Tata Steel. The correction in global steel prices (cUS$60/t) in the past quarter has been greater than our assumption of a US$30/t correction. Domestic steel prices in India, however, have been protected by the rupee's depreciation. However, spot coking coal prices have been on an uptrend. Thus, the impact on EPS at spot commodity prices and current currency exchanges rates would vary significantly from our base-case estimates depending on the level of backward integration for steel companies. Non-ferrous prices on the other hand have corrected by only 9-14% in the past quarter. P/L impact of spot commodity price/currency rate: With costs denominated in local currencies, currency depreciation would mean an upside risk to our estimates for mining companies (Coal India, NMDC, Sesa Goa). JSPL would stand to gain the most from currency depreciation amongst steel names, in our view. On an operational basis, the impact on Tata Steel would likely be marginal. However, a significant translational loss on its European subsidiary would lead to a sharp 22% cut in FY13E EPS. Conversely, Hindalco should benefit from translational gains on Novelis's consolidation. Nalco would have the highest risk (33% potential downside to FY13E EPS) at current spot commodity prices . Balance sheet issues: The mark-to-market impact on forex debt and higher cash outflow on dollar-denominated current liabilities are the two key risks that we see on balance sheet. JSW Steel has c31% of its debt exposed to forex rates, which was not hedged as of March 2012. Although the forex debt of Tata Steel (of US$4.4bn) and Hindalco (US$4.3bn) through their overseas subsidiaries have natural hedges, the translational impact would result in increase in reported consolidated debt at spot currency levels. Our sector view remains unchanged: Coal India followed by JSPL remain our top picks in the Indian Metals & Mining space. We argue that volume growth higher than the consensus estimate for Coal India is feasible. We also see significant valuation comfort in Hindalco and Tata Steel. In Hindalco, we highlight that about two-thirds of its EBITDA is not tied to LME-linked commodity prices and that recent concerns of debt increases was likely largely on account of translational losses. Notwithstanding, the volumes and margin risk for the European operations of Tata Steel, the stock's valuations provide significant cushion, in our view. We maintain our 3-UW ratings on Nalco, Sesa Goa and SAIL.
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Asia ex-Japan Metals & Mining Chirag Shah +91 22 6719 6081 chirag.x.shah@barclays.com BSIPL, Mumbai Faisal Memon +91 22 6719 6267 faisal.memon@barcap.com BSIPL, Mumbai 4 July 2012

Energy

Asia ex-Japan Oil & Gas: Asia Oil Services & Rig-builders: Withstanding oil price volatility
Sector View Asia ex-Japan Oil & Gas Clement Chen +852 2903 2498 clement.chen@barcap.com Barclays Bank, Hong Kong Scott Darling +852 2903 3998 scott.darling@barcap.com Barclays Bank, Hong Kong 4 July 2012 1-Positive

Preferred way to benefit from the global oil capex cycle: We continue to view Sembcorp Marine (1-OW; PT S$7.0) and Keppel Corp (2-EW; PT S$13.30) as the best way to gain indirect leverage to the current oil capex cycle. With oil prices having remained reasonably robust, the industry is likely to continue to spend, which is partly reflected in the number of drilling contracts awarded (Figure 1). The sustained level of awards has encouraged rig-owners to add to their fleets supportive for rig builders. Attractive entry point for deep-value, long-term investors: The rig-builders have sustainably delivered better margins, returns and yield than their peers, and we see current valuations (trading below 10-year historical averages) offering a significant value opportunity. See our Asia Ex-Japan Oil Services initiation report published on 2 May 2012. Positive catalysts on the horizon: Apart from Petrobras providing further clarity last week on the likely timing of contract awards, we see further likely contracts in the upcoming months, with Chevron (1-OW; PT US$133), Husky (2-EW; PT C$28) and Ukraine's state-owned company, Naftohaz all reported (Upstreamonline) to be in discussions with rig-owners and shipyards. The Singapore yards remain well positioned to benefit from these tenders, with both yards as likely venues for new rig orders.
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Financial Services

Taiwan Banks: Cross-Strait RMB developments

Sector View Asia ex-Japan Banks Noel Chan +886 2 663 84693 noel.chan@barcap.com BCSTW, Taiwan Tom Quarmby +852 2903 3053 thomas.quarmby@barcap.com Barclays Bank, Hong Kong 5 July 2012 2-Neutral

Increasing news flow on the development of an offshore RMB market and the opening of more RMB-related business opportunities in Taiwan will likely buoy financial shares in the short term. In reality, we see limited opportunities for material earnings impact. Over the medium to long term, we believe Mega FHC (1-OW) is best positioned to benefit from potential reforms given its stronger balance sheet and deposit franchise, extensive overseas network, and market-leading FX business. Near-term sentiment likely to improve: According to an FSC announcement on 2 July 2012, Taiwan is close to finalising an RMB trade settlement scheme with China which will further open the offshore RMB market. Possible developments include 1) allowing local enterprises to issue RMB bonds (Formosa bond market); 2) allowing domestic banks to take RMB deposits and invest in RMB-related securities; and 3) approval for Taiwan banks to operate RMB business on the Mainland. Based on the experience in Hong Kong, we see a potential for a short-term rally on the back of the positive news flow. Not a game changer yet: While offshore RMB business may very well lead to long-term benefits for Taiwan's economy as a whole, we advise a cautious approach in the initial stages and see no immediate earnings contribution from offshore RMB business. We believe 1) initial demand for RMB deposits will surpass loan demand; 2) there are limited channels for banks to invest RMB liabilities, creating a drag on profitability; and 3) many RMB products/services will simply replace existing foreign currency offerings.
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Industrials

Zoomlion Heavy Industry Science and Technology Co., Ltd.: Too good to be true? Not exactly
Stock Rating Sector View Price Target Price (04 Jul 2012) EPS FY1 (E) EPS FY2 (E) Market Cap (HKD bn) Ticker China Machinery Victoria Li +852 2903 3456 victoria.li@barcap.com Barclays Bank, Hong Kong Vincent Sun +852 2903 4792 vincent.sun@barclays.com Barclays Bank, Hong Kong 5 July 2012 1-Overweight 3-Negative HKD 13.27 HKD 9.62 1.18 1.13 74.1492 1157 HK / 1157.HK

We reiterate our belief that Zoomlion's strong concrete machine sales will be sustained throughout 2012 given our continued assumptions that Zoomlion will be capable of gaining market share; the strong concrete pump rental business; and China's increasing demand for commercially produced concrete. Moreover, we expect its results for 1H12 to exceed the consensus forecasts, and we estimate that the stock's valuations should remain attractive even if our worst-case scenario were to occur. Therefore, we reiterate our 1-Overweight rating based on our 12-month price target of HK$13.27. The strong growth in Zoomlion's concrete machine sales for the first five months of 2012 was reasonable, in our view: Growth in commercially produced concrete was strong at 17% for the first five months of 2012 with the penetration rate rising. Zoomlion has gained market share within the sector from competitors by funding customers more aggressively and upgrading product quality with CIFA technology. Buying a concrete pump still looks to be a profitable prospect: The utilisation rate for Zoomlion's concrete pumps sold was 91 hours/month in May, down 50% y/y. However, we estimate that a customer could still make a profit even if the rate were to fall to 65 hours. Moreover, with demand for commercially produced concrete growing in Central China and Northwest China, we believe many customers would still like to buy pumps. Results for 1H12 could exceed consensus: We forecast at least a low-teen profit growth rate for 1H12, possibility exceeding the Bloomberg consensus growth rate forecast of 14% y/y for 2012. However, we estimate that the results of the other non-rail machinery companies for 1H12 could miss market expectations. Valuation attractive: With the recent stock price correction, we view Zoomlion's valuation as attractive. The current price indicates a P/E of 6.7x on our estimate for 2012. If our worst-case scenario were to occur, we estimate the P/E would still be 9.6x for 2012, which we believe would still not be expensive compared with its historical average of 9.9x for the past 18 months and compared with 10.9x for its global peers.
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Industrials

India Capital Goods Sector: Feedback from APAC trip: Cautious cycle but reforms play gaining attention
Sector View 2-Neutral

Investor questions on our recent APAC trip largely centred on the state of the capex cycle. From a stock point of view, the debate was largely on L&T's ability to meet order inflow targets and likely return ratios for BHEL in FY15 and beyond. Overall though, investors remained cautious on the capex cycle with a neutral/underweight stance on the sector (vs. our 2-Neutral sector view). Corrections in valuations, however, are increasing interest in asset owners/beneficiaries of policy changes. Risks to infra-cycle revival: On questions on risks to infra cycle revival, our view is that the potential uptick is not driven by policy/macro moves but is a reflection of bunching-up of orders, as most new tenders announced are from a pool of orders conceptualised several years earlier. With most of the projects under bid having completed various milestones (land, funding etc) risk of conversion of tenders into orders is low. Timing of power equipment cycle recovery: The debate was not on near-term earnings/orders but on the timing of a recovery. We highlight that: 1) coal supply will fail to meet demand, meaning cash flows from new power plants will be weak, impacting equity creation for new projects; 2) with over 125GW of equipment already ordered, we see limited reasons for more equipment to be ordered (getting coal to operate these plants at an 85% plant load factor (PLF) is required); and 3) with excess equipment manufacturing capacity, pricing will remain under pressure. The downturn may hence be a prolonged one, in our view. On L&T inflows: On L&T, investors were concerned about its ability to achieve 15-20% order inflow growth guidance in FY13. We also observed that some investors were even concerned about 1Q order booking. However, we note that with L&T already announcing Rs170bn of wins in 1Q (higher than our estimates), risk to 1Q orders is low. Furthermore, with infra cycle reviving, some orders won in FY12 being booked in FY13 (due to delay in award) and low base support in power/industrial sectors, we expect FY13 inflows to track closer to guidance. (We expect 12% inflow growth) View on BHEL: On BHEL, the debate is largely on earnings/returns post execution of current order book and on its weakening competitive advantage, as observed from our recent visit to the subcontracting chain. (Please see note dated 20 June, Face to Face: Visit to BHEL's subcontracting chain - an uneasy calm prevails). We continue to believe that BHEL is unlikely to be able to sustain the current 20% EBITDA margins given stiff competition on new orders and a slower order run rate could impact revenue growths in future years. Near-term, though, we believe that the current order book should support earnings. We expect BHEL (3-UW) to underperform relative to L&T (1-OW).
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India Capital Goods Venugopal Garre +91 22 6719 6291 venugopal.garre@barcap.com BSIPL, Mumbai Hitesh Das +91 22 6719 6213 hitesh.das@barcap.com BSIPL, Mumbai Saurabh Mishra +91 22 6719 6386 saurabh.c.mishra@barclays.com BSIPL, Mumbai 4 July 2012

Internet & Media

Television Broadcasts Ltd.: A compelling storyline; initiate at 1-OW

Stock Rating Sector View Price Target Price (04 Jul 2012) EPS FY1 (E) EPS FY2 (E) Market Cap (HKD bn) Ticker Asia ex-Japan Internet Joyce Zhou +852 2903 2512 joyce.zhou@barcap.com Barclays Bank, Hong Kong Anand Ramachandran, CFA +852 2903 4360 anand.ramachandran@barcap.com Barclays Bank, Hong Kong Alicia Yap, CFA +852 2903 4593 alicia.yap@barcap.com Barclays Bank, Hong Kong Seyon Park +82 2 2126 2936 seyon.park@barcap.com BCSL, Seoul 5 July 2012 1-Overweight 1-Positive HKD 63.00 HKD 54.00 3.86 4.16 23.652 511 HK / 0511.HK

We see a good combination of stability and growth potential in Television Broadcasts (TVB). We view its leading position in the Hong Kong free-TV market as sustainable in the medium term, providing stable cash flow (6.2% FCF yield in 2012E) for its dividend distributions. In addition, we see significant potential in its new media business and China business going forward. With Providence as a major shareholder since Mar 2011, we see increasing potential for capital returns beyond the 4.3% yield as well. Our DCF-driven HK$63 price target implies a P/E of 16.3x and TSR of 20%. Sustainable cash flow from HK advertising market: We view TVB's dominant position in the HK free-TV market as sustainable given its strong branding, diversified programme offering, and accumulated know-how in this business, helping it generate stable cash flow to support its dividend. We see no immediate threat from different advertising platforms in Hong Kong either (e.g. pay-TV, newspapers, outdoor), based on our detailed analysis. Great opportunity in the China market but monetization is the key: We see great potential in the sizeable China market despite the limited contribution for now (c5% of revenue). Our survey of cable TV and online video platforms in China suggests a stable market share for TVB dramas. We believe TVB's TV content exports will continue to drive its China growth, while the online video market may become another driver beyond 2013, based on the recently proposed JV with Shanghai Media Group (SMG). China-based production and direct broadcasting also have the potential to contribute in the longer term. Online platform monetization on the way: We see an increasing effort from TVB to capture the growth potential from the internet and mobile data, and gradually monetize these segments through advertising and other means. The plan to leverage its substantial content library to build an online video database is another monetization opportunity. Key risks: 1) Worse-than-expected Hong Kong economy; 2) stronger competition from new free-TV players; 3) regulatory risks in overseas markets; and 4) pay-TV performance.
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Technology

Compal Communications Inc.: More risks on Windows Phone transition

Stock Rating Sector View Price Target Price (04 Jul 2012) EPS FY1 (E) EPS FY2 (E) Market Cap (TWD bn) Ticker 3-Underweight 1-Positive TWD 30.00 TWD 32.25 3.21 2.50 19.5993 8078 TT / 8078.TW

We maintain our 3-UW rating and lower our PT to NT$30. We see further downside risks to CCI despite its recent share price weakness. We cut our 2012/13E EPS by 10%/27% to reflect Nokia's uncertain future given the Windows Phone (WP) transition, intensifying competition in Android smartphones and declining industry ASP. We lower our PT by nearly 30% to NT$30 based on 12x 2013E EPS; it remains our top 3-UW stock (along with HTC) in the Asia ex-Japan wireless sector. WP transition leads to lower Lumia orders into 2H12: While we were excited about MSFT's announcement of WP8 in June with significant hardware improvements, we expect CCI's 2H12 sales to decline (-18%/-4% q/q in 3Q/4Q12E) as we believe that the restriction in upgrading (from WP7.5 to WP8) will make consumers reluctant to buy the existing WP, leading to inventory adjustment from Nokia in 2H12. This is consistent with our house view on Nokia (2-EW; covered by Jeff Kvaal and Andrew Gardiner; click here for their report published 21 Jun 2012). Also, our checks suggest Lumia 610 (ODM by CCI) sales are lacklustre, e.g. accounting for <0.5% of market share in China in May.

Asia ex-Japan Wireless Equipment & Products Dale Gai +886 2 663 84697 dale.gai@barcap.com BCSTW, Taiwan Derrick Yang +886 2 663 84686 derrick.yang@barcap.com BCSTW, Taiwan Kirk Yang +852 2903 4635 kirk.yang@barcap.com Barclays Bank, Hong Kong 4 July 2012

Diversification into non-Nokia clients: CCI's management recently guided less reliance on Nokia (from +80% in 1H12 to +60% in 2H12) by winning ODM projects from Android clients. Although a more diversified client base would be positive for CCI, the Android ODM market is more competitive in manufacturing value-added (MVA), which implies a structural market contraction. We expect non-Nokia clients to account for 33% of CCI's sales in 2013, from 12% in 2012, but with a declining blended GPM. Upside risks: 1) Unexpected acceleration of smartphone outsourcing in Android/WP smartphones, from 10-15% in 2012; and 2) better momentum on WP8 launch in 2013.
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Technology

Foxconn Technology Co., Ltd.: Expect flattish June, but improvement in Apple components due to Macs ramping
Stock Rating Sector View Price Target Price (04 Jul 2012) EPS FY1 (E) EPS FY2 (E) Market Cap (TWD bn) Ticker 1-Overweight 2-Neutral TWD 138.00 TWD 112.50 6.67 9.87 131.931 2354 TT / 2354.TW

Expect flattish June sales: For June, our latest checks suggest FTC's sales should remain flattish to NT$5.61bn (up 0.5% m/m but down 14.6% y/y), implying a total of NT$16.2bn (down 22.9% q/q and 33.1% y/y) for 2Q12 consolidated sales, which would be slightly below our expectation of NT$16.9bn. However, FTC's June sales might identify the improvement over other Apple component suppliers on the back of MacBook refresh ramping, as we note the iPhone/iPad supply chain paused in June due to product transitions. Maintain positive view on backend loaded 2H12: We expect FTC's sales to start to pick up materially from July on the following catalysts: 1) new Nintendo game consoles may be launched in late July; 2) MacBook Pro should recover in July after the delay in the last quarter; 3) overflow orders from Hon Hai should see a significant increase in late 3Q12 as its CNC capacity is taken up by iPhone 5 at the moment; and 4) next-generation ultrabooks should prompt growth in metal casing demand from August, along with the availability of Windows 8 RTM (release to manufacturing).

Asia ex-Japan IT Hardware Jerry Wu +886 2 663 84685 jerry.wu@barcap.com BCSTW, Taiwan Kirk Yang +852 2903 4635 kirk.yang@barcap.com Barclays Bank, Hong Kong 4 July 2012

Product cycle and Apple allocation gains to drive shares: We not only expect Apple components to remain more resilient than other supply chains, but we also do not see it staying with the current weakness in product transition, and therefore we are comfortable with our 2H12 forecasts. As such, we continue to view FTC's resilience in 2H12 as strong, as it remains geared to new product cycles and is likely to gain incremental Apple allocation. This should, we believe, lead the shares to appreciate toward our NT$138 target which is based on 13x FY13E EPS.
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Macro Research

Australia: Commodity-based model estimate for Q2 GDP supports RBA inaction, but it is premature to expect a sustained rise in AU yields
5 July 2012 Gavin Stacey

Our commodity-based modelling approach estimates real growth of about 0.7-0.8% q/q in Q2 12. This supports yesterday's RBA inaction. Nonetheless, we remain wary that a move higher in AU yields can be prolonged, given the near-term outlook for the GMPMI and S&P 500. Accordingly, we believe investors should be looking to square up short positions or add duration in any post-ECB meeting risk extension and rise in yields. Only on a sustained turn in the GMPMI would we reassess this recommendation.
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Macro Research

China: Postcard from Beijing

4 July 2012 Yiping Huang, Jian Chang, Lingxiu Yang

In early January, we published a report arguing that consumption's share of GDP had rebounded since the 2008 crisis and a rebalancing of the Chinese economy was happening. Many commentators were sceptical about our findings. Last week, former PBoC advisor David Li presented a paper at a conference held at Peking University that provided new evidence supporting our view of a pickup in consumption's share of GDP since 2007.
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Macro Research

Global Macro Daily (Sydney Open): An ECB cut - bad for the EUR, good for risk
5 July 2012 Paul Robinson, Laurent Fransolet

The main event today will be the ECB's interest rate decision and press conference. Our baseline is for the 'refi' rate to be lowered by 50bp to 0.50%, a larger cut than the consensus expectation. We also look for a cut in the deposit rate from 0.25% to zero, though concerns about the possible ramifications of doing so may mean that it is not reduced (in which case the 'refi' rate would probably be lowered by only 25bp), or is lowered to 0.05% or 0.10%.
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Macro Research

Malaysia: Trade surplus at decade lows on higher imports

4 July 2012 Rahul Bajoria, Wai Ho Leong

Exports rose 6.7% y/y in May, higher than market expectations of a 4.5% rise (Barclays +3.4%). This compares with -0.1% in April. Imports rose a large 16.2%, up from a 7.4% increase in April. As a result, the trade surplus contracted further, to MYR4.6bn in May, the lowest level since July 2002. Import growth was driven by strong demand for intermediate and capital goods. In particular, capital imports may have included delivery of the first A380 aircraft to Malaysian Airlines, which was handed over on 30 May. Malaysia-based Air Asia, a leading carrier in the region, has also been buying smaller aircraft at a rapid pace. We think similar import spikes should be expected in next 2-3 months, as more such deliveries take place. Despite the upside surprise in May, export momentum has been on the softer side in the past few months. Our view remains that external headwinds are likely to remain, but domestic demand gives the Malaysian economy a strong buffer. We maintain our 2012 GDP forecast of 4.7% growth. Despite today's fall in the trade surplus, we think our current account surplus forecast of USD31.3bn remains on track, though downside risks have risen.
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Explanation of Summary of Changes table Source: Barclays Research. Share prices and target prices are shown in the primary listing currency and EPS estimates are shown in reporting currency. FY1 (E): Current fiscal year estimates by Barclays Research. FY2 (E): Next fiscal year estimates by Barclays Research. Stock Rating: 1-OW: 1-Overweight 2-EW: 2-Equal Weight 3-UW: 3-Underweight RS: RS-Rating Suspended Back to Summary of Changes Sector View: 1-Pos: 1-Positive 2-Neu: 2-Neutral 3-Neg: 3-Negative

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Sector View 1-Positive - sector coverage universe fundamentals/valuations are improving. 2-Neutral - sector coverage universe fundamentals/valuations are steady, neither improving nor deteriorating. 3-Negative - sector coverage universe fundamentals/valuations are deteriorating. Distribution of Ratings: Barclays Equity Research has 2356 companies under coverage. 43% have been assigned a 1-Overweight rating which, for purposes of mandatory regulatory disclosures, is classified as a Buy rating; 53% of companies with this rating are investment banking clients of the Firm. 42% have been assigned a 2-Equal Weight rating which, for purposes of mandatory regulatory disclosures, is classified as a Hold rating; 47% of companies with this rating are investment banking clients of the Firm.

13% have been assigned a 3-Underweight rating which, for purposes of mandatory regulatory disclosures, is classified as a Sell rating; 39% of companies with this rating are investment banking clients of the Firm. Guide to the Barclays Research Price Target: Each analyst has a single price target on the stocks that they cover. The price target represents that analyst's expectation of where the stock will trade in the next 12 months. Upside/downside scenarios, where provided, represent potential upside/potential downside to each analyst's price target over the same 12-month period. Barclays offices involved in the production of equity research: London Barclays Bank PLC (Barclays, London) New York Barclays Capital Inc. (BCI, New York) Tokyo Barclays Securities Japan Limited (BSJL, Tokyo) So Paulo Banco Barclays S.A. (BBSA, So Paulo) Hong Kong Barclays Bank PLC, Hong Kong branch (Barclays Bank, Hong Kong) Toronto Barclays Capital Canada Inc. (BCCI, Toronto) Johannesburg Absa Capital, a division of Absa Bank Limited (Absa Capital, Johannesburg) Mexico City Barclays Bank Mexico, S.A. (BBMX, Mexico City) Taiwan Barclays Capital Securities Taiwan Limited (BCSTW, Taiwan) Seoul Barclays Capital Securities Limited (BCSL, Seoul) Mumbai Barclays Securities (India) Private Limited (BSIPL, Mumbai) Singapore Barclays Bank PLC, Singapore branch (Barclays Bank, Singapore) Disclaimer: This publication has been prepared by the Corporate and Investment Banking division of Barclays Bank PLC and/or one or more of its affiliates (collectively and each individually, "Barclays"). It has been issued by one or more Barclays legal entities within its Corporate and Investment Banking division as provided below. It is provided to our clients for information purposes only, and Barclays makes no express or implied warranties, and expressly disclaims all warranties of merchantability or fitness for a particular purpose or use with respect to any data included in this publication. Barclays will not treat unauthorized recipients of this report as its clients. Prices shown are indicative and Barclays is not offering to buy or sell or soliciting offers to buy or sell any financial instrument. Without limiting any of the foregoing and to the extent permitted by law, in no event shall Barclays, nor any affiliate, nor any of their respective officers, directors, partners, or employees have any liability for (a) any special, punitive, indirect, or consequential damages; or (b) any lost profits, lost revenue, loss of anticipated savings or loss of opportunity or other financial loss, even if notified of the possibility of such damages, arising from any use of this publication or its contents. Other than disclosures relating to Barclays, the information contained in this publication has been obtained from sources that Barclays Research believes to be reliable, but Barclays does not represent or warrant that it is accurate or complete. Barclays is not responsible for, and makes no warranties whatsoever as to, the content of any third-party web site accessed via a hyperlink in this publication and such information is not

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