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FPC Annual General Meeting & Share Holder information session

MR MICHAEL GALLAGHER – CHAIRMAN

• Introductory remarks

• AGM Open

• Formal business

• Resolutions

• AGM Close

• Shareholder information session – Mr Angus Geddes

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FPC Annual General Meeting & Share Holder information session

Discount to NTA

• Performance

• Assets under management

• Trading volume & perceived liquidity

• Large & multiple raisings

• Ratings agencies – no coverage

• Dividend policy

• Option overhang

Affirmative strategies

• Directors buying shares

• Buyback – sending a positive message

• Communications

• Roadshow – Feb 2019 – increasing profile

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FINANCIAL RESULTS – June 30th 2018

▪ Pre-tax profit $1.571 Million

▪ Net profit after tax $1.206 Million

▪ NTA (Jun 18) $1.1228 pre tax (Plus loyalty option; expires Mar 19)

▪ Current market cap $40mil; Share price $0.89

▪ NTA (Sep 18); $1.0992 pre tax.

▪ will typically be constructed for each thematic, along with the identification of the

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Board of FPCINDEPENDENT CHAIRMAN Michael Gallagher

Mr Michael Gallagher was appointed Chairman of the Board in November 2016. Michael has over 25 years investment experience.

In 2009 Michael co-founded Kima Capital, an Australian based funds management business, which he later moved to Hong Kong before it was acquired. Prior to AIMA & Kima, Michael headed Australasian Equities for Rand Merchant Bank, overseeing the Equity Trading, Derivative and Equity Funds Management businesses from 2005-2009. In the 10 years prior to this Michael was a director at Macquarie Bank heading up the structured retail equity derivative businesses in Australia, South Africa and also spent time with Macquarie in the UK.

INDEPENDENT DIRECTOR Katrina Vanstone

Katrina has worked in financial markets for 30 years, both in Australia and offshore, including such leading organisations as HSBC and Deutsche Bank.

Katrina has extensive experience in foreign exchange, interest rates and credit markets across asset and liability portfolios. She has held roles in trading, sales and syndication. She has extensive experience in the wholesale debt and derivative markets with strong product knowledge across capital structures and debt raisings, risk management and hedging, and cash and currency management.

Angus Geddes - Non-Independent Director

Refer to previous slide

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FPC Annual General Meeting

MICHAEL GALLAGHER – CHAIRMAN

• AGM Open

• Formal business

• Resolutions

• AGM Close

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Year in review

• Challenging year afflicted by high volatility

• Outperformance in the US/Super Tech

• Rest of world has underperformed

• Value coming back into vogue as growth stocks correct

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High volatility in 2018 vs 2017

Weekly .VIX 21/10/2016 - 7/12/2018 (EST)

16.07

49.85

BarOHLC, .VIX, Trade Price

26/10/2018, 19.38, 20.89, 18.82, 19.64, -0.25, (-1.26%)

Price

USD

Auto

10

12

14

16

18

20

22

24

26

28

30

32

34

36

38

40

42

44

46

48

19.64

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecQ4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

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Breakdown of the Fund’s assets

▪ will typically be constructed for each thematic, along with the identification of the relevant catalysts

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Top ten holdings – September 2018

▪ will typically be constructed for each thematic, along with the identification of the relevant catalysts

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Top 10 Holdings 31 October 2017 Country

COLLINS FOODS 6.8% Australia

SONY 6.0% Japan

TELSTRA 5.7% Australia

WALT DISNEY 5.7% US

BAIDU 5.7% China

PRAEMIUM 5.5% Australia

WYNN MACAU 4.5% China

QBE Insurance 4.5% Australia

SPDR GOLD ETF 4.5% US

EVOLUTION MINING 4.3% Australia

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Where do we see opportunities today?

• Gold and the over owned US dollar

• Rising interest rates – Japanese banks / QBE insurance

• Defensive & under owned Telco’s – Telstra

• China – valuations back to post GFC levels 10X

• Macau Casinos

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US Dollar – crowded trade

Weekly .DXY 21/10/2016 - 7/12/2018 (NYC)

BarOHLC, .DXY, Trade Price

26/10/2018, 95.657, 95.756, 95.647, 95.666, -0.047, (-0.05%)

Price

USD

Auto

88.5

89

89.5

90

90.5

91

91.5

92

92.5

93

93.5

94

94.5

95

95.5

96

96.5

97

97.5

98

98.5

99

99.5

100

100.5

101

101.5

102

102.5

103

103.5

95.666

21 04 18 02 16 06 20 03 17 03 17 07 21 05 19 02 16 07 21 04 18 01 22 06 20 03 17 01 22 05 19 02 16 02 16 06 20 04 18 01 22 06 20 03 17 07 21 05 19 02 16 07Oct 16 Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18

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Higher cost of servicing a growing debt

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Gold - a new bull market?

Monthly XAU= 31/10/2008 - 30/04/2019 (GMT)

1,034.1787

BarOHLC, XAU=, Bid

31/10/2018, 1,191.8100, 1,233.2600, 1,183.0400, 1,228.0000, +2.1400, (+0.17%)

Price

USD

Ozs

Auto

680

720

760

800

840

880

920

960

1,000

1,040

1,080

1,120

1,160

1,200

1,240

1,280

1,320

1,360

1,400

1,440

1,480

1,520

1,560

1,600

1,640

1,680

1,720

1,760

1,800

1,840

1,228.0000

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

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Gold in A$ is close to breaking out

Quarterly XAUAUD=R 24/10/1998 - 23/01/2020 (GMT)

Price

AUD

Auto

400

450

500

550

600

650

700

750

800

850

900

950

1,000

1,050

1,100

1,150

1,200

1,250

1,300

1,350

1,400

1,450

1,500

1,550

1,600

1,650

1,700

1,750

1,800

1,731.65

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20191990 2000 2010

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Gold – market net short

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Japan’s recovery – rising inflation

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Japan - rising interest rates

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Daily JP10YT=RR 10/10/2017 - 25/10/2018 (GMT)

Line, JP10YT=RR, Bid Yield(Last)

5/10/2018, 0.149

Yield

Auto

0.025

0.03

0.035

0.04

0.045

0.05

0.055

0.06

0.065

0.07

0.075

0.08

0.085

0.09

0.095

0.1

0.105

0.11

0.115

0.12

0.125

0.13

0.135

0.14

0.145

0.15

0.155

0.149

10 16 23 30 06 13 20 27 04 11 18 25 04 15 22 29 05 13 19 26 05 12 19 26 02 09 16 23 01 14 21 28 04 11 18 25 02 09 17 23 30 06 13 20 27 03 10 18 25 01 09 15 22

Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18For

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Japan - rising spending

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Japanese interest rates

Daily JP10YT=RR 24/10/2016 - 29/11/2018 (GMT)

Line, JP10YT=RR, Bid Yield(Last)

23/10/2018, 0.154

Yield

Auto

-0.075

-0.07

-0.065

-0.06

-0.055

-0.05

-0.045

-0.04

-0.035

-0.03

-0.025

-0.02

-0.015

-0.01

-0.005

0

0.005

0.01

0.015

0.02

0.025

0.03

0.035

0.04

0.045

0.05

0.055

0.06

0.065

0.07

0.075

0.08

0.085

0.09

0.095

0.1

0.105

0.11

0.115

0.12

0.125

0.13

0.135

0.14

0.145

0.15

0.1550.154

31 07 14 21 28 05 12 19 26 04 16 23 30 06 13 20 27 06 13 21 27 03 10 17 24 01 15 22 29 05 12 19 26 03 10 18 24 31 07 14 21 28 04 11 19 25 02 10 16 23 30 06 13 20 27 04 11 18 25 04 15 22 29 05 13 19 26 05 12 19 26 02 09 16 23 01 14 21 28 04 11 18 25 02 09 17 23 30 06 13 20 27 03 10 18 25 01 09 15 22 29 05 12 19 26Nov 16 Dec 16 Jan 17 Feb 17 Mar 17 Apr 17 May 17 Jun 17 Jul 17 Aug 17 Sep 17 Oct 17 Nov 17 Dec 17 Jan 18 Feb 18 Mar 18 Apr 18 May 18 Jun 18 Jul 18 Aug 18 Sep 18 Oct 18 Nov 18

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Japan’s stock market recovery has –Nikkei 2008 - 2018

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Monthly [.N225 List 1 of 226] .N225 31/10/2008 - 30/04/2019 (TOK)

21,017.17

BarOHLC, .N225, Trade Price

31/10/2018, 24,173.37, 24,448.07, 22,212.57, 22,462.54, -69.54, (-0.31%)

Price

JPY

Auto

7,000

7,500

8,000

8,500

9,000

9,500

10,000

10,500

11,000

11,500

12,000

12,500

13,000

13,500

14,000

14,500

15,000

15,500

16,000

16,500

17,000

17,500

18,000

18,500

19,000

19,500

20,000

20,500

21,000

21,500

22,000

22,500

23,000

23,500

24,000

22,462.54

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

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Exposure across Japan

• Banking – Sumitomo Mitsui, Mizuho + regionals

• Consumer Electronics – Sony, Nintendo

• Energy - Inpex

• Robotics – SMC

• Electronics – Minebea Mitsumi, Nissha

• Insurance – Dai-Ichi

• Chemicals – Sumitomo Chemical

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Fukuoka FG

Weekly 8354.T 23/10/2015 - 21/12/2018 (TOK)

BarOHLC, 8354.T, Trade Price

26/10/2018, 2,935.0, 3,015.0, 2,918.0, 2,919.0, -76.0, (-2.54%)

Price

JPY

Auto

1,600

1,700

1,800

1,900

2,000

2,100

2,200

2,300

2,400

2,500

2,600

2,700

2,800

2,900

3,000

3,100

3,200

3,300

2,919.0

Vol, 8354.T, Trade Price

26/10/2018, 728,100.0 Volume

Auto728,100.0

Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecQ4 2015 Q1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

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Macau gaming – long term growth story intact

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Macau – but near term VIP revenues have dropped

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Weekly 1128.HK 22/01/2016 - 21/12/2018 (HKG)

BarOHLC, 1128.HK, Trade Price

26/10/2018, 17.100, 17.720, 16.960, 17.560, +0.640, (+3.78%) Price

HKD

Auto

7

8

9

10

11

12

13

14

15

16

17

18

19

20

21

22

23

24

25

26

27

28

29

17.560

Vol, 1128.HK, Trade Price

26/10/2018, 7.853M Volume

Auto

50M

100M

7.853M

Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov DecQ1 2016 Q2 2016 Q3 2016 Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

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Disney

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Monthly DIS 23/10/2008 - 10/05/2019 (NYC)

BarOHLC, DIS, Trade Price

31/10/2018, 117.280000, 119.170000, 110.320000, 118.900000, +2.720000, (+2.34%) Price

USD

Auto

16

20

24

28

32

36

40

44

48

52

56

60

64

68

72

76

80

84

88

92

96

100

104

108

112

116

118.900000

Vol, DIS, Trade Price

31/10/2018, 108.763M Volume

Auto

200M

300M

108.763M

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

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Collins Foods

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Monthly CKF.AX 31/08/2011 - 31/03/2019 (SYD)

BarOHLC, CKF.AX, Trade Price

31/10/2018, 6.230, 6.810, 6.090, 6.650-0.030, (-0.45%) Price

AUD

Auto

1

1.2

1.4

1.6

1.8

2

2.2

2.4

2.6

2.8

3

3.2

3.4

3.6

3.8

4

4.2

4.4

4.6

4.8

5

5.2

5.4

5.6

5.8

6

6.2

6.4

6.650

Vol, CKF.AX, Trade Price

31/10/2018, 8.135M Volume

Auto

5M

10M

15M

8.135M

Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q12011 2012 2013 2014 2015 2016 2017 2018 2019

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Telstra – major low?Quarterly TLS.AX 31/10/1998 - 22/01/2020 (SYD)

BarOHLC, TLS.AX, Trade Price

31/12/2018, 3.170, 3.270, 3.020, 3.120, N/A, N/A

Price

AUD

Auto

2.7

3

3.3

3.6

3.9

4.2

4.5

4.8

5.1

5.4

5.7

6

6.3

6.6

6.9

7.2

7.5

7.8

8.1

8.4

3.120

Vol, TLS.AX, Trade Price

31/12/2018, 451.873M Volume

Auto

2B

451.873M

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 20191990 2000 2010

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TLS - Inflection pointWeekly TLS.AX 28/10/2016 - 30/11/2018 (SYD)

BarOHLC, TLS.AX, Trade Price

26/10/2018, 3.160, 3.185, 3.120, 3.120,

Price

AUD

Auto

2.6

2.7

2.8

2.9

3

3.1

3.2

3.3

3.4

3.5

3.6

3.7

3.8

3.9

4

4.1

4.2

4.3

4.4

4.5

4.6

4.7

4.8

4.9

5

3.120

Vol, TLS.AX, Trade Price

26/10/2018, 41.402M Volume

Auto

100M

200M

41.402M

04 18 02 16 06 20 03 17 03 17 07 21 05 19 02 16 07 21 04 18 01 22 06 20 03 17 01 22 05 19 02 16 02 16 06 20 04 18 01 22 06 20 03 17 07 21 05 19 02 16Q4 2016 Q1 2017 Q2 2017 Q3 2017 Q4 2017 Q1 2018 Q2 2018 Q3 2018 Q4 2018

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Praemium

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Monthly PPS.AX 31/10/2008 - 30/04/2019 (SYD)

BarOHLC, PPS.AX, Trade Price

31/10/2018, 1.110, 1.145, 0.830, 0.8600.000, (0.00%) Price

AUD

Auto

0.08

0.12

0.16

0.2

0.24

0.28

0.32

0.36

0.4

0.44

0.48

0.52

0.56

0.6

0.64

0.68

0.72

0.76

0.8

0.84

0.88

0.92

0.96

1

1.04

1.08

1.12

0.860

Vol, PPS.AX, Trade Price

31/10/2018, 21.327M Volume

Auto

20M

40M

21.327M

Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q22008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

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Outlook 2019

• Volatility normalising

• Interest rates will move higher globally, and in line with wage inflation

• Precious metals could do well

• Telcos back

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Contact Details

Fat Prophets Funds ManagementInvestment managerAngus GeddesCIO02 9024 6706Angus.Geddes@fatprophets.com.au

Fat Prophets Global Contrarian FundCompany Michael GallagherChairman0412 224 400Michael@spinnakerinvest.com

Fat Prophets Funds ManagementPortfolio ManagerSimon Wheatley0429 910999Simon.Wheatley@fatprophets.com.au

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Disclaimer

This presentation has been prepared by Fat Prophets Global Contrarian Fund Limited (FPC). The information contained in this presentation is for information purposes only and has been prepared for use in conjunction with a verbal presentation and should be read in that context.

The information contained in this presentation is not investment or financial product advice and is not intended to be used as the basis for making an investment decision. Please note that, in providing this presentation, FPC has not considered the objectives, financial position or needs of any particular recipient. FPC strongly suggests that investors consult a financial advisor prior to making an investment decision.

This presentation is strictly confidential and is intended for the exclusive benefit of the institution to which it is presented. It may not be reproduced, disseminated, quoted or referred to, in whole or in part, without the express consent of FPC .

No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of FPC, its related bodies corporate, shareholders or respective directors, officers, employees, agents or advisors, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this presentation.

This presentation includes “forward looking statements”. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of FPC and its officers, employees, agents or associates that may cause actual results to differ materially from those expressed or implied in such statement. Actual results, performance or achievements may vary materially from any projections and forward looking statements and the assumptions on which those statements are based. FPC assumes no obligation to update such information.

This presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities and neither this presentation nor anything contained in it forms the basis of any contract or commitment. Any offer or sale of securities will be made pursuant to definitive documentation, which describes the terms of the offer (Offer Document). An Offer Document for any offer of securities in FPC will be made available when the securities are offered. Prospective investors should consider the Offer Document in deciding whether to acquire securities under the offer. Prospective investors who want to acquire under the offer will need to complete an application form that is in or accompanies the Offer Document.

This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States. The securities of FPC have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (Securities Act) or the securities laws of any state or other jurisdiction of the United States, and may not be offered or sold in the United States except in compliance with the registration requirements of the Securities Act and any other applicable securities laws

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