Milton : Net Asset Backing December 2015

Milton 31 December 15 nab.docx

Level 4

50 Pitt Street

Sydney NSW 2000

Website:www.milton.com.au

MILTON CORPORATION LIMITED

ABN 18 000 041 421

PO Box R1836

Royal Exchange NSW 1225 Email:[e-mail]

Telephone: [phone]

Facsimile: [phone]

Share Registry Enquiries: 1800 641 024

NET TANGIBLE ASSET BACKING ("NTA") REPORT AT 31 DECEMBER 2015 NTA per Share at 31 December 2015

• Before provision for tax on unrealised capital gains was $4.50

  (Milton is a long-term investor and does not intend disposing of its long term investment portfolio.)

• After provision for tax on unrealised capital gains was $3.98

(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 which are listed on the ASX and which 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 December 2015 the market value of this equity investment portfolio was $2.74 billion.

Asset allocation at 31 December 2015	Market Value	Share of Total Assets	Top 20 Investments at 31 December 2015	Market Value	Share of Total Assets
$ m % $ m %
Banks	1,031.4	35.3	Westpac Banking Corporation	350.7	12.0
Consumer staples	297.2	10.2	Commonwealth Bank of Australia	266.0	9.1
Materials	217.3	7.4	W H Soul Pattinson	160.4	5.5
Energy	202.0	6.9	National Australia Bank	143.7	4.9
Diversified financials	191.4	6.6	Wesfarmers Limited	118.0	4.0
Insurance	128.3	4.4	Bank of Queensland	101.8	3.5
Telecommunication	119.8	4.1	ANZ Banking Group	94.1	3.2
Retailing	110.6	3.8	Telstra Corporation	82.9	2.8
Healthcare	91.7	3.1	Blackmores Limited	80.0	2.7
Real estate	71.3	2.4	AP Eagers	74.1	2.5
Transport	69.7	2.4	Woolworths Limited	71.1	2.4
Utilities	65.8	2.3	Bendigo and Adelaide Bank	68.2	2.3
Commercial services	51.8	1.8	BHP Billiton	65.0	2.2
Capital goods	31.5	1.1	Perpetual Limited	63.4	2.2
Other shares 60.8 2.1 CSL Limited 62.4 2.1
Total investment portfolio	2,740.6	93.9	Bickworks Limited Macquarie Group	50.9 49.7	1.7 1.7
AGL Energy	48.4	1.7
Cash	140.9	4.8	Suncorp Group	37.3	1.3

Other assets 38.5 1.3

Total assets 2,920.0 100.0

TPG Telecom 36.9 1.3

Total Top 20 2,025.0 69.1

Low MER

Milton's total operating costs represented 0.12% per annum of average total assets for the year ended 30 June 2015.

Key dates (these dates may be subject to change)

Appendix 4D and half year results announcement 21 January 2016

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.

2000	2001	2002	2003	2004	2005	2006	2007	2008	2009	2010	2011	2012	2013	2014	2015	2016
Interim	4.2	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	TBA
Final	4.4	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

10.0

8.0

Cents

6.0

4.0

2.0

0.0

Special 4.0 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

All comparative data has been restated to take into account the 5 for 1 share split in October 2013.

Total Returns to 31 December 2015 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.

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
1 Year	2 Yrs (pa)	3 Yrs (pa)	4 Yrs (pa)	5 Yrs (pa)	7 Yrs (pa)	10 Yrs (pa)	11 Yrs (pa)	12 Yrs (pa)	15 Yrs (pa)
MLT TPR	9.37%	6.38%	11.42%	13.50%	9.53%	11.42%	6.47%	7.54%	9.17%	9.94%
MLT TSR	6.51%	8.37%	13.62%	17.11%	11.72%	11.82%	6.26%	8.06%	9.02%	10.92%

18%

16%

Percent per annum

14%

12%

10%

8%

6%

4%

2%

0%

XAOAI 3.78% 4.40% 9.26% 11.58% 6.54% 10.25% 5.69% 7.01% 8.58% 7.95%