Milton : Net Asset Backing August 2017

MILTON CORPORATION LIMITED ABN 18 000 041 421 Level 4 PO Box R1836 Telephone: [phone] 50 Pitt Street Royal Exchange NSW 1225 Facsimile: [phone] Sydney NSW 2000 Email:[e-mail] Registry Enquiries: 1800 641 024 Website:www.milton.com.au NET TANGIBLE ASSET BACKING ("NTA") REPORT AT 31 AUGUST 2017 NTA per Share at 31 August 2017 (After provision for final dividend of 10.0 cps)(1) Before provision for tax on unrealised capital gains was $4.46 After provision for tax on unrealised capital gains was $3.95 (Milton is a long-term investor and does not intend disposing of its long term investment portfolio.) (Under current accounting standards, Milton is required to provide for tax that may arise should the portfolio be disposed.) Milton's Objective Milton (ASX code: MLT) is a listed investment company whose objective is to hold a diversified portfolio of assets that generates a growing income stream for distribution to shareholders in the form of fully franked dividends and provides capital growth in the value of the shareholders' investment. Dividend History Milton has paid a dividend every year since listing in 1958 and all dividends have been fully franked since the introduction of franking. (See the Performance History charts over page for further details.) Investment portfolio Milton's equity investment portfolio comprises interests in companies and trusts that are listed on the ASX and are expected to provide an increase in investment revenue over time. An investment in Milton provides shareholders with exposure to a diversified equity portfolio that is not aligned with any stock market index. At 31 August 2017 the market value of this equity investment portfolio was $2.8 billion.
Asset allocation at Market Shareof 31 August 2017 ValueTotal Assets $ m % Banks 975.5 32.6 Consumer staples 270.7 9.0 Diversified Financials 233.1 7.8 Energy (includes W H Soul Pattinson) 217.1 7.2 Metals and Mining 139.6 4.7 Insurance 132.1 4.4 Healthcare 114.8 3.8 Real Estate 92.8 3.1 Utilities 82.5 2.7 Transport 81.8 2.7 Retailing 80.1 2.7 Construction Material 79.9 2.7 Telecommunication 77.6 2.6 Commercial Services 71.9 2.4 Other Materials 51.6 1.7 Capital Goods 42.3 1.4 Other Shares 65.5 2.2 Total investment portfolio 2,808.9 93.7 Cash 131.8 4.4 Other assets 55.5 1.9 Total assets 2,996.2 100.0				Top 20 Investments at 31 August 2017	Market Share of Value Total Assets $ m %
				Westpac Banking Corporation Commonwealth Bank of Australia W H Soul Pattinson National Australia Bank Wesfarmers Limited ANZ Banking Group BHP Billiton Limited Bank of Queensland CSL Limited Woolworths Limited Bendigo and Adelaide Bank Limited Perpetual Limited AGL Energy Limited Macquarie Group Telstra Corporation Limited ALS Limited AP Eagers Limited Suncorp Group Brickworks Limited Transurban Group	328.0 10.9 236.7 7.9 162.4 5.4 145.6 4.9 120.9 4.0 100.2 3.3 100.0 3.3 92.0 3.1 76.1 2.5 75.5 2.5 68.2 2.3 67.7 2.3 64.7 2.2 56.7 1.9 55.3 1.8 48.5 1.6 46.4 1.5 43.2 1.4 43.1 1.4 42.7 1.4
				Total Top 20	1,973.9 65.6
(1) Dividend dates Dividend Final 10.0 cps	Ex date 10 Aug 2017	Payment date 5 Sep 2017	Other key dates Annual General Meeting - 12 Oct 2017 at 3.00pm To be held at: Sofitel Sydney Wentworth L4, Adelaide Room, 61-101 Phillip St, Sydney

Low MER

Milton's total operating costs represented 0.12% of average total assets for the year to 30 June 2017.

PERFORMANCE HISTORY Dividend History Milton pays fully franked dividends semi annually

Milton has paid a dividend every year since listing in 1958 and all dividends have been fully franked since the introduction of franking.

10.0

8.0

Cents

6.0

4.0

2.0

0.0	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016	2017
Interim	4.4	4.4	4.6	5.0	5.6	6.6	7.6	8.6	8.6	7.0	7.4	7.6	7.8	8.2	8.5	8.7	8.7
Final	4.4	4.6	5.0	5.6	6.4	7.4	8.6	9.0	7.0	7.2	7.8	8.0	8.6	9.4	9.9	9.9	10.0
Special	4.0	0.0	0.0	2.0	0.0	2.0	0.0	1.6	0.0	0.0	1.0	0.0	0.5	0.4	0.4	0.0	0.0

Total Returns to 31 August 2017 Milton has delivered strong total returns relative to the accumulation return of the All Ordinaries Index

Milton's total returns are net of tax paid and expenses and no adjustment has been made for the franking benefits attached to the fully franked dividends paid.

The Accumulation return of the All Ordinaries is unaffected by tax or expenses and no adjustment has been made for the franking benefits attached to the partially franked dividends paid.

14%

12%

TPR is based on movement in NTA

TSR is based on movement in share price

XAOAI is the accumulation return of the All Ordinaries Index

Percent per annum

10%

8%

6%

4%

2%

1 Year	3 Yrs (pa)	5 Yrs (pa)	10 Yrs (pa)	15 Yrs (pa)
MLT TPR	8.87%	4.78%	10.35%	4.25%	8.85%
MLT TSR	9.73%	3.71%	11.86%	3.59%	8.80%
XAOAI	8.91%	5.37%	10.53%	3.59%	8.81%

0%