This document highlights the differences between TRBC and competing systems and explains why these differences matter to investors. SUMMARY...

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1 Thomson Reuters Business Classification (TRBC) is an industry classification system that is owned and operated by Thomson Reuters. The market-oriented system tracks the primary business of a corporation and reflects global industry practices by grouping together correlated companies that offer products and services into similar end markets. This document highlights the differences between TRBC and competing systems and explains why these differences matter to investors. TABLE OF CONTENTS SUMMARY... 2 Energy Sector... 3 Basic Materials... 4 Industrials... 5 Cyclical Consumer Goods & Services... 7 Non-Cyclical Consumer Goods & Services... 9 Financials Healthcare Technology Telecommunications Utilities... 14

2 SUMMARY Why choose TRBC over other classification systems? 1. Global coverage and market oriented schema With 130 countries, over 74,000 companies and 10 years of history, TRBC provides unrivalled global and local views into world markets. 2. Built to be the backbone of our content and index offering Thomson Reuters has decades of experience in creating intelligent information from data and has worldwide operations that are unparalleled in the scope of content collected. In addition to TRBC based Indices, TRBC allows an integrated classification solution across news, estimate aggregates, fundamentals, research and many other content areas. 3. Our expertise and select methodology allow for well-defined Sectors Sectors are detailed enough to focus on particular industries while still providing enough constituents for effective analysis. TRBC is up to date, with major revisions launched in August 2009 that revised the Retail, Banking and Energy sectors to reflect economic changes. 4. Frequent Review of company status Thomson Reuters has a large global team of analysts in six countries to provide local language capabilities. In addition to regular review of company filings to identify organic changes in revenue, the team also constantly monitors the media, M&A transactions and other corporate actions. This ensures that classifications are always up to date. 5. Ease of access and cost TRBC is available across Thomson Reuters desktop and datafeed products. TRBC is available for index, product or other licensing at competitive rates.

3 ENERGY COAL TRBC places coal miners within the Energy Sector. This reflects the end consumer use of coal as an energy source and is in line with our market-based approach. TRBC has an Industry Group dedicated to Coal given the importance of Coal as an energy source and the distinctive business model versus Oil & Gas operators. Where the coal is produced for the exclusive use of steel production, coking coal, companies are assigned to the Steel Industry. TRBC also breaks Coal into its own Industry Group, recognizing its importance as a fuel source. Why does this matter? Over 50% of Energy produced in China and the USA is based on Coal and the price of coal versus oil, gas and alternatives drives price performance. ICB allocates the coal industry to Mining within the Basic Materials Economic Sector. GICS includes Coal in the Oil, Gas and Consumable Fuels Industry. RENEWABLE ENERGY TRBC recognizes the distinct market for renewable energy and assigns companies engaged in providing the full range of services in building, operating and servicing renewable energy equipment and biofuels. Why does this matter? Renewable Energy is significant and growing component of global energy demand. The market is uniquely impacted by government policy, the cost of input materials and the price of fossil fuel substitutes. GICS does not recognize the Renewable Energy Industry. Companies are assigned to a broad variety of Industries based on which products they produce. For example, solar power companies are allocated to Semiconductors, solar power installation companies are assigned to Electrical Equipment. Wind turbine producers are assigned to Heavy Electrical Equipment. Biofuels are included in Consumable Fuels alongside Coal. GICS commented on their approach in the attached announcement. ICB does support an Alternative Energy Sector.

4 BASIC MATERIALS APPLIED RESOURCES The Basic Materials Economic Sector includes all companies who supply the raw materials for Industrial production. By their nature they serve multiple end markets within Industrial production. TRBC seeks to distinguish the mainly extractive businesses from those that provide further processing such as forestry and containers. The Applied Resources Business Sector has distinctive price performance over the economic cycle compared to the extractive industries. The Construction and Metals & Minerals Business Sectors are normally slower to respond to increases in economic demand while the Forestry, Paper and Containers Industries, as intermediate industrial inputs, tend to respond faster. Why does this matter? Investors following a Macro-Economic investment style can more easily isolate the Micro-Economic impact on companies from the Mineral & Metals, Construction Materials and extractive sector versus the Applied Resources sector. ICB includes Construction Materials within Industrial rather than alongside the other primary inputs, or similar construction inputs like Steel. ICB classifies containers as Consumer Products. GICS separates wood and paper from paper containers into different Industry Groups. CHEMICALS Agricultural chemicals are isolated by TRBC but they are included in specialty chemicals by ICB. The agricultural chemicals market is a distinct end market driven by agricultural demand and demographic pressures. For example, potash prices move in very different cycles compared to other chemical prices.

5 INDUSTRIALS AEROSPACE AND DEFENCE TRBC has a single industry for aerospace manufacturers because aerospace companies generally serve both military and commercial end markets and it is not possible to effectively segregate the companies without introducing major distortions. TRBC also includes companies who primarily serve the defence industry but may not produce capital goods. Why does this matter? TRBC carefully reviews the major components and number of likely constituents of each Industry when designing the schema. The goal is to avoid forcing companies into artificially granular segments which would result in an arbitrary segregation of companies. Almost all aerospace companies serve both civil and military markets. In addition there are several dominant players and substantial global industry concentration. For example, Boeing is the largest commercial aerospace company but also has a large military exposure. Companies providing ancillary defence services are impacted by Government procurement cycles and therefore have similar price performance to defence contractors providing capital goods. ICB has separate commercial and military aerospace industries. GICS has a single Aerospace and Defence Sub-Industry. TRANSPORT TRBC provides a segmented view of transport infrastructure with air, marine and ground transportation industry groups with further breakdowns between freight and passenger. Following the market-oriented approach TRBC assigns supporting services within each industry. TRBC places airlines within the Industrial segment alongside other transportation services which move in relation of the industrial business cycle and generate the majority of their profits from business travel. Shipping companies that predominantly transport oil & gas are assigned to the Oil and Gas transportation Industry. The market orientated nature of TRBC ensures that companies that are easily identifiable as being dependent on a specific market are assigned to the relevant Industry. Why does this matter? There are different dynamics in the markets for freight and passengers, TRBC uses a market-based approach versus a mode of transport approach. This allows investors to implement strategies that take advantage of those differences. ICB aggregates air, road and port infrastructure into a single industry.

6 ICB places airlines within consumer services, travel & leisure, separating airlines from other transportation GICS breaks ground transportation into Railroads and Trucking while TRBC breaks them into Freight Transportation-Ground and Passenger Transportation-Ground and Sea OTHER DIFFERENCES WITHIN INDUSTRIALS INDUSTRIAL CONGLOMORATES TRBC maintains conglomerates as a stand alone business sector, reflecting the size and importance of these companies and the fact that conglomerates are engaged in providing a very broad range of goods and services. GICS classifies conglomerates within industrial goods, which implies that conglomerates are less engaged in service areas. DIVERSIFIED TRADING AND DISTRIBUTION Wholesale trading and distribution companies, especially Japanese keiretsu, generally provide the service of distributing rather than producing capital goods. TRBC considers them as part of Industrial Services while GICS includes the industry within Capital Goods. BUSINESS SERVICES AND SUPPLIES TRBC identifies Commercial Printing and Environmental Services as independent industries and the rest are divided between Business Support Services and Business Support Supplies. However, GICS isolates more specific services such as Office Services & Supplies, Human Resources and Employment Services, Security & Alarm services and Research and Consulting services in addition to Diversified Support Services. Building further granularity in this area can result in industries only catering for certain countries and regions, such as North America. ELECTRICAL COMPONENTS AND EQUIPMENT TRBC segregates between electrical components/equipment and heavy electrical equipment because of the different end market demands for large capital intensive purchases of heavy equipment and the more fluid demand for electrical components. ICB segregates between electrical components/equipment and electronic equipment.

7 CYCLICAL CONSUMER GOODS & SERVICES CONSUMER PRODUCTS AND SERVICES TRBC segregates consumer products and services into their cyclical and non-cyclical nature. Why does this matter? The elasticity of demand varies significantly between the cyclical and non-cyclical sectors. These demand patterns result in heightened sensitivity to, or added protection from, economic conditions. Investors will seek a safe-haven in Non-Cyclicals during downturns, and look to switch investments to Cyclicals when consumer demand is strong. ICB seeks to isolate Consumer Goods from Consumer Services. This results in a mixture of businesses that are cyclical such as Automobiles, being grouped together with businesses that are not, such as Household Products. ICB groups all Retailers together which means that non-cyclical businesses such as Food & Drug Retailers are included alongside other retailers. GICS has Consumer Staples and Consumer Discretionary Sectors. OTHER DIFFERENCES WITHIN CONSUMER CYCLICALS LEISURE PRODUCTS TRBC segregates Toys and Games and Recreational Products as patterns of demand differ for these industries and within each industry companies compete for the same consumer spend. Photographic equipment is considered part of Recreational Products in TRBC. GICS breaks out Leisure Products and Photographic Products, which excludes digital cameras as these are classified in Consumer Electronics by GICS. Photography is a very narrow industry to be included in a global schema and is dominated by some large players or included within major electronic providers. TRBC is more market orientated as we treat them as one of many consumer electronic devices within the overall convergence of consumer devices. INTERNET RETAIL TRBC considers the Internet as a general tool that virtually all retailers use as a channel and it is no longer a distinct industry of its own. While Amazon sells a broad range of products, its competitors are traditional and online retailers, not only other exclusively online retailers. GICS maintains Internet and Catalog Retail as a third level Industry classification. TRBC assigns online auction platforms, such as Ebay, to the IT industry, as these companies do not carry inventory and have a different cost structure and audience when compared to pure retail businesses.

8 WHOLESALE GICS maintains wholesale distributors in each of Consumer Discretionary and Staples sectors while TRBC classifies specialty wholesalers with related manufacturers and general distributors with diversified retailers. It is often difficult in practice to separate wholesale from retail, especially as companies increasing integrate their sourcing. A wholesale industry will always be incomplete within also integrating either the full logistics supply chain, or incorporating those companies that have large supply chain operations in-house (such as most large grocery operations).

9 NON - CYCLICAL CONSUMER GOODS & SERVICES CONSUMER PRODUCTS AND SERVICES TRBC segregates consumer products and services into their cyclical and non-cyclical nature. This allows investors to easily isolate those companies that are less sensitive to the economic cycle. Consumers continue to purchase these products and services during economic downturns, and the price performance of these industries diverges from more cyclical businesses. ICB spreads the more defensive, non-cyclical businesses across their consumer goods and services sectors. a. Services - Food & Drug Retailers b. Products - Tobacco, Personal Products, Nondurable Household Products, Food & Beverages GICS has Consumer Staples and Consumer Discretionary Sectors.

10 FINANCIALS The financial sector is a large and complex sector that encompasses four main types of businesses, banking, insurance, real estate and supporting services. TRBC is unique in recognising the importance of these supporting and enabling services that have distinct business models, but are inextricably linked to the fortunes of the wider financial sector. Two of these industries are stock exchanges, and financial technology/information providers. Why does this matter? Investors look to isolate companies that are primarily influences by interest rate movements and other direct impacts on lending institutions from those organisations who serve the industry but are insulated from short term fluctuations. FINANCIAL AND COMMODITY MARKET OPERATORS. This industry has been added to TRBC partly in response to the trend of exchanges changing their ownership models from partnership or state owned, into publicly listed stocks. Traditional monopolies in this area have also been broken down as alternative trading venues have developed. SPECIALITY INVESTMENT SERVICES. This industry captures organisations that provide financial technology, support services and information services to the financial sector. This business differs from traditional business to business publishing because of the technology, content and integrated nature of these organisations with their customers. It is a business model is not dependent on advertising but on a combination of transactions. ICB does not isolate Exchange operators. GICS classifies exchanges within specialised finance alongside many other types of business. ICB & GICS combine supporting services into general business support services, publishing or specialty financials.

11 HEALTHCARE HEALTHCARE EQUIPMENT & SUPPLIES Healthcare supplies and equipment are often provided by the same company together with long term distribution or leasing services, which is why TRBC has a single industry that reflects the business reality of organisations that work with healthcare providers. Capital Intensive and Advanced equipment is broken out because of the higher margins and greater role of technology and financing. TRBC has two Industry Groups, one for equipment and supplies, and another for healthcare providers. This provides index providers with more helpful groupings. GICS classify companies into Healthcare Equipment and Healthcare Supplies. ICB combine providers, equipment and supplies at the 3 rd level, only breaking these down at the 4 th level.

12 TECHNOLOGY Internet services were significant during the dot.com boom, but the nature of the industry as a distinct sector has evolved, with almost all businesses using many of the technologies that have been developed. The internet and software services have become general business tools. TRBC combines all related services into Information Technology Services and Consulting. ICB has a separate Industry for Internet Service Providers whilst TRBC includes such services into IT Services and Consulting GICS maintains Internet Software & Services, IT consulting & other services SOFTWARE TRBC has one industry, Software, that covers both system and application software companies because the category killer, Microsoft, cannot easily be allocated to either side without an arbitrary judgement that has a significant impact on the remaining constituents. GICS splits software into two categories, Application Software and Systems Software.

13 TELECOMMUNICATIONS ICB defines fixed line telecommunication services in a separate industry. TRBC on the other hand uses Integrated Telecommunications Services, which correctly considers the vast majority of legacy fixed line service companies are also engaged in wireless communications. GICS separates out alternative carriers that are focused on data communication services. In practice these services are offered by standard carriers as well. Data services continue to be integrated into conventional telecommunication services such as the integration of voice and video services.

14 UTILITIES TRBC includes independent power generators into Utilities Electric, but GICS created a separate Industry, Independent Power Producers and Energy Traders. While this distinction is logical, it limits the usefulness of the 4 th level for index creation as it becomes very fragmented unless looking at a global or large regional grouping.