Citi Global Wealth reGioNAL ASSeT CLASS PreviewS | | 95 Investments FiGUre 1. LATiN AMeriCA vALUATioNS MKT cap P/e ePS YoY % P/B roe Div Yld CAPe US$bn ‘23Fwd ‘24FwD ‘23e ‘24e ‘23e ‘23e ‘23e 10yr MSCi eM Latin America 541.2 7.9 7.9 -13.0% 0.3% 1.4 23.8 9.9 16.0 Argentina 5.9 4.4 5.8 NA -25.4% 0.3 9.6 NA NA Brazil 324.3 6.6 6.8 -15.0% -2.2% 1.3 30.1 12.8 15.2 Mexico 154.4 12.9 11.5 5.8% 12.4% 1.9 18.0 3.2 18.8 Chile 35.4 7.5 8.1 -26.8% -7.3% 1.4 18.2 15.1 14.6 Colombia 9.2 5.5 5.8 -18.2% -4.5% 0.4 36.6 8.8 11.6 Peru 17.8 11.8 10.2 -13.4% 16.0% 1.8 20.8 3.9 NA Source: FactSet Consensus, MSCI, as of 22 Nov 2022. Note: The above data are compiled based on companies in MSCI AC World Index. Free MC is free-float adjusted market capitalization for regions, markets and sectors. P/E (Price/Earnings), EPS growth (Earnings per share), P/B (Price/Book), Dividend yield (DY) and RoE (Return on Equity) are aggregated from FactSet consensus estimates. CAPE stands for Cyclically Adjusted Price to Earnings, and is defined as: Current price/ten-year average inflation-adjusted EPS. Indices all from MSCI. Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only. Past performance is no guarantee of future returns. Real results may vary. FiGUre 2. oUr FAvoreD LATiN AMeriCAN SeCTorS MKT cap P/e ePS YoY % P/B roe Div Yld CAPe US$bn ‘23Fwd ‘24FwD ‘23e ‘24e ‘23e ‘23e ‘23e 10yr info technology 2.9 23.3 18.6 38% 25% 3.8 11.4 1.3 NA Telecom 10.2 18.5 14.1 84% 31% 1.4 0.7 1.7 NA Healthcare 39.1 13.4 11.4 20% 18% 1.8 20.7 2.8 NA Consumer staples 82.6 16.2 14.4 13% 12% 2.4 17.8 2.9 23.2 Source: Citi Research, Worldscope, MSCI, FactSet, as of 22 Nov 2022. Note: The above data are compiled based on companies in MSCI AC World Index. The market capitalization for regions, markets and sectors are free-float adjusted. P/E (Price/Earnings), EPS growth (Earnings per share), P/B (Price/Book), Dividend yield and RoE (Return on Equity) are aggregated from FactSet consensus estimates (calendarized to December year end) with current prices. CAPE is calculated by current price divided by ten-year average EPS based on MSCI index level data. NM = Not Meaningful; NA = Not Available. Indices all from MSCI. Indices are unmanaged. An investor cannot invest directly in an index. They are shown for illustrative purposes only. Past performance is no guarantee of future returns. Real results may vary. All forecasts are expressions of opinion, are subject to change without notice and are not intended to be a guarantee of future events.