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Important InformationThis presentation has been prepared without taking account of the objectives, financial situation or needs of any particular individual. Before acting on the information in this seminar, you should consider its appropriateness to your circumstances and, if necessary, seek appropriate professional advice.

Commonwealth Securities Limited ABN 60 067 254 399 AFSL 238814 (CommSec) is a wholly owned but non-guaranteed subsidiary of Commonwealth Bank of Australia ABN 48 123 123 124 and a Participant of the ASX Group.

Examples used in this presentation are for illustrative purposes only.

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Year in review

Key financial indicators 2016/17

June 30 2016 High Low June 30 2017 % change

ASX 200 5233.4 5983.2 5138.9 5721.5 +9.3%

US Dow Jones 17930.0 21535.0 19677.9 21349.6 +19.1%

AUD/USD, US cents 0.7426 0.7777 0.7152 0.7692 +3.6%

90 day bank bills 1.96% 1.97% 1.71% 1.71% -

10 year bond yields 1.99% 2.99% 1.85% 2.61% -

Oil, US$ per barrel 48.33 54.45 39.51 46.04 -4.7%

Gold, US$ per ounce 1320.60 1372.60 1129.80 1242.30 -5.9%

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Overview

Global growth liftsWaiting for Trump tax cuts Chinese growth still solid Global inflation still low Higher US rates Oil prices fluctuate Mixed Australian housing markets http://hellasfrappe.blogspot.com.au/2013_07_25_archive.html

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Global: return to normal? Drivers of world economyContribution to growth 2017 (pct points)

1.00China0.58United States0.23India0.08Japan0.07Germany0.07Indonesia0.07United Kingdom0.05Australia0.05Korea0.04France0.04Spain0.04Canada0.04Libya0.03Philippines0.03Russia0.03Turkey0.02Bangladesh1.00Other countries3.5WORLD

Source: IMF, CommSec

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International perspectives

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United States

8

China

9

Australia: World’s longest expansion

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Business & spending

11

Investment

12

Business

13

Consumers

14

Job market

15

Housing

16

Population

17

Inflation

18

Budget 2017

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Global shares

20

Australian shares

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Australian shares

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Australian sharesSECTORS & SIZE GROUPINGS

percent change over 2016/17

40.7Consumer Durables & Apparel29.1Food, Beverages & Tobacco26.3Capital goods22.1Materials20.7Diversified Financials19.8Resources18.5Pharmaceuticals & BioTech16.4Insurance14.6Utilities14.2Midcap5014.0Software & services12.4Consumer Services11.8Banks11.6Transportation9.7ASX1009.3ASX2009.1ASX508.8Food & staples retailing7.0Health Care Equipment & Services6.0Energy3.7Small Ordinaries1.1Commercial & Professional Services

-0.6Media-5.0Retailing-6.2Autos & components-8.5Real Estate

-10.4Property Trust-26.2Telecom

Source: iress, Comm Sec

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Australian investments

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Commodity prices

25

Commodity prices

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Interest rates

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Exchange rates

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Outlook 

FORECASTS2017/182016/173.00%2.00%Economic Growth2.00%1.75%Underlying inflation

5.00-5.50%5.50%Unemploymentmid 2018end 2017

1.50%1.50%Cash rate6,000-6,2005,900-6,100Sharemarket (All Ords)US74-79cUS74-79cAustralian dollar