MILTON CORPORATION LIMITED AN AUSTRALIAN …Diversified financials 5% Materials 9% Consumer staples 10% Commercial services 5% Insurance 5% Energy 7% Telecommunication 3% Other shares

ANNUAL GENERAL MEETING10 OCTOBER 2013

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MILTON CORPORATION LIMITED AN AUSTRALIAN LISTED INVESTMENT COMPANY

SINCE 1958

MILTON CORPORATION LIMITED AN AUSTRALIAN LISTED INVESTMENT COMPANY SINCE 1958

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DISCLAIMER

Milton Corporation Limited (“Milton”) has prepared this presentation.

The presentation (including views expressed by Milton’s directors) is made in good faith however, Milton does not warrant or represent that it is free from errors or omissions.

This presentation is intended as general information only and those to whom this presentation is made should seek independent financial advice that takes into account their financial circumstances when making an investment decision.

MILTON CORPORATION LIMITED AN AUSTRALIAN LISTED INVESTMENT COMPANY SINCE 1958 2

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NON EXECUTIVE DIRECTORS

• MR ROBERT MILLNER, Chairman

• MR JOHN CHURCH

• MR GRAEME CRAMPTON

• MR KEVIN ELEY

• DR IAN POLLARD


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EXECUTIVES

• MR FRANK GOOCH, Managing Director

• MR NISHANTHA SENEVIRATNE, Secretary

AUDITOR – MOORE STEPHENS SYDNEY

• MR JOE SHANNON, Partner


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OBJECTIVES


ü Diversified portfolio Investment portfolio $2.2 billionCash $0.1 billionOther assets $0.1 billion

ü Growing income stream Ordinary income 2013 $117.2 millionOrdinary income 2012 $112.2 millionSpecial invest inc. 2013 $ 2.7 million

ü Pay fully franked dividends 2013 2012Interim 39 38Final 43 40Total 82 78 Up 5.1%Special 2.5 -

ü Capital growth in the value of the shareholders’ investment

2013 2012NTA $19.45 $16.42Share price $18.40 $15.21

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INVESTMENT PORTFOLIO

Banks34%

Diversified financials

5%Materials

9%Consumer staples

10%

Commercial services

5%

Insurance5%

Energy7%

Telecommunication3%

Other shares22%


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OBJECTIVES






2013 2012NTA $19.45 $16.42Share price $18.40 $15.21

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OBJECTIVES






2013 2012NTA $19.45 $16.42Share price $18.40 $15.21Discount 5.4% 7.4%

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MILTON CORPORATION LIMITEDAN AUSTRALIAN LISTED INVESTMENT COMPANY SINCE 1958

82%

84%

86%

88%

90%

92%

94%

96%

98%

100%

0

20

40

60

80

100

120

Pay

out r

atio

Div

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Total Ordinary Dividend (LHS)Total Special dividendOrdinary dividend payout ratio (RHS)

MILTON DIVIDEND AND PAYOUT RATIO HISTORY

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DIVIDEND HISTORY

10

$0

$1,000

$2,000

$3,000

$4,000

$5,000

$6,000

Ordinary dividend Special dividend

All dividends fully franked since franking was introduced in 1987

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OBJECTIVES






2013 2012NTA $19.45 $16.42Share price $18.40 $15.21Discount 5.4% 7.4%

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SHARE PRICE v NTA

12

-

5.00

10.00

15.00

20.00

25.00

30.00

NTA

Share price

Premium Discount


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-15.0%

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

Discount increasing post GFC

Discount reducing


PREMIUM / (DISCOUNT)

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VALUE PROPOSITION

• For the investor seeking reliable income Milton provides fully franked dividends semi annually

– Interim dividend of 39 cps paid in March 2013– Final dividend of 43 cps paid in September 2013– Special dividend of 2.5 cps paid in September 2013

• For the investor seeking the benefits of equity investment Milton provides exposure to a diverse portfolio of listed companies

– Investment portfolio at 30 June 2013 was valued at $2.2 billion

• For the investor seeking a low cost professionally managed investment – Total operating costs in 2013 represented 0.14% per annum of average total assets


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MOVEMENT IN INVESTMENTS


Balance at 30 June 2012 1,825.3

Investments from company acquisition in February 13 10.7

Purchases 33.4

Disposals (18.1)

Revaluation of investments due to market movements 351.2

Balance at 30 June 2013 2,202.5

Total Portfolio Return (TPR) 23.6%

Accumulation return of the All Ordinaries Index 20.7%

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OUTLOOK

• Underlying operating profit for 3 months to 30 September 13 ahead of that of 2012

• Interim dividend of 39 cps should at least be maintained


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FRANK GOOCH

MANAGING DIRECTOR


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UNDERLYING PROFIT

2013$ million

2012$ million

Ordinary investment income 105.8 100.9

Net liquidity income 5.6 7.2

JV profits 5.0 3.7

Other income 0.7 0.5

Ordinary income from operations 117.1 112.3

Operating expenses (3.2) (3.2)

Tax expense (5.5) (6.4)

Underlying profit 108.4 102.7


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UNDERLYING PROFIT

2013$ million

2012$ million

Ordinary investment income 105.8 100.9

Net liquidity income 5.6 7.2

JV profits 5.0 3.7

Other income 0.7 0.5

Ordinary income from operations 117.1 112.3

Operating expenses (3.2) (3.2)

Tax expense (5.5) (6.4)

Underlying profit 108.4 102.7


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Revaluation

High yield

Low yield


SECTOR PERFORMANCEFOR 1 YEAR TO 30 JUNE 2013

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Revaluation

Banks TR = 39.3%

TelecommunicationsTR = 42.7%

Diversified FinancialsTR = 40.9%

InsuranceTR = 34.5%

Health CareTR = 46.9%

Capital GoodsTR = (16.2)%

Commercial ServicesTR = (4.3)%

MaterialsTR = 9.4%

EnergyTR = 2.3%

Consumer StaplesTR = 27.4%



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Revaluation

Banks Value $845millionRevaluation 32%Yield 7%



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Revaluation

TelecomsValue $76millionRevaluation 36%Yield 7%



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Revaluation

Diversified Fins.Value $110millionRevaluation 35%Yield 5.6%



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Revaluation

HealthcareValue $51millionRevaluation 44%Yield 3%



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Revaluation

MaterialsValue $217millionRevaluation 5.8%Yield 3.6%



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Revaluation

Capital GoodsValue $40millionRevaluation (21.6%)Yield 5.4%



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Revaluation

Commercial ServicesValue $118millionRevaluation (8.8%)Yield 4.5%



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PORTFOLIO MOVEMENTS


Additions = $44million

Unlisted investment company = $10.7 millionPurchases = $33.4 million

Disposals = $18million

Larger disposals:• Hills Industries• Cabcharge• Alumina• Consolidated Media• CFS Retail Trust• Charter Hall Office

Trust

Larger purchases:• A P Eagers• ASX• Automotive Holdings Group• IOOF Holdings• McMillan Shakespeare• Tatts Group• Telstra• Westfield Group

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McMILLAN SHAKESPEARE GROUP


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VALUE PROPOSITION

• For the investor seeking reliable income Milton provides fully franked dividends semi annually

– Interim dividend of 39 cps paid in March 2013– Final dividend of 43 cps paid in September 2013– Special dividend of 2.5 cps paid in September 2013

• For the investor seeking the benefits of equity investment Milton provides exposure to a diverse portfolio of listed companies

– Investment portfolio at 30 June 2013 was valued at $2.2 billion

• For the investor seeking a low cost professionally managed investment – Total operating costs in 2013 represented 0.14% per annum of average total assets


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SEPTEMBER 2013 NTA

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ANNUAL GENERAL MEETING10 OCTOBER 2013

34

MILTON CORPORATION LIMITED AN AUSTRALIAN LISTED INVESTMENT COMPANY

SINCE 1958


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Documents

MILTON CORPORATION LIMITED AN AUSTRALIAN …Diversified financials 5% Materials 9% Consumer staples 10% Commercial services 5% Insurance 5% Energy 7% Telecommunication 3% Other shares