Australian United Investment : NET ASSET BACKING

AUSTRALIANUNITEDINVESTMENTCOMPANYLIMITED

ABN 37 004 268 679

LEVEL20 TEL[phone] COLLINSSTREETFAX(613) 9654 3499 MELBOURNEVIC3000 AUSTRALIA

7 September 2017

The General Manager

Australian Securities Exchange Limited Company Announcements Office Exchange Centre

20 Bond Street

Sydney NSW 2000

Dear Sir,

NET ASSET BACKING

The Directors advise that the unaudited net tangible asset backing of the Company's ordinary shares at 31 August 2017 was $8.44 per share after provision for the final dividend of 18.5 cents per share (31 July 2017 $8.58 per share before provision for the final dividend). The net asset backing calculation is based on investments at market value, is after tax on net realised gains, before any future tax benefit of net realised losses, and before estimated tax on net unrealised gains/losses.

Australian United Investment Company Limited is a long term investor and does not intend disposing of its total portfolio. However, under current accounting standards the Company is required to provide for estimated tax on any net gains that would arise on such a theoretical disposal. After deducting this provision, the above figure would be $7.33 (31 July 2017 $7.46).

A list of the Company's top 25 investments is attached.

Yours sincerely, A J Hancock

Company Secretary

AUSTRALIAN UNITED INVESTMENT COMPANY LIMITED 25 LARGEST SHAREHOLDINGS

AS AT 31 AUGUST 2017

As at 31 August 2017 the twenty-five largest shareholdings of the company, at market values were:

Company	Market Value $'000	% of Market Value of Total Investments
1. Commonwealth Bank Ltd	96,645	8.1%
2. Australia New Zealand Banking Group Ltd	83,055	6.9%
3. Westpac Banking Corporation Ltd	78,175	6.5%
4. National Australia Bank Ltd	67,950	5.7%
5. Wesfarmers Ltd	59,668	5.0%
6. Diversified United Investment Ltd	53,568	4.5%
7. Transurban Group Ltd	51,680	4.3%
8. CSL Ltd	51,408	4.3%
9. Rio Tinto Ltd	50,880	4.3%
10. BHP Billiton Ltd	50,653	4.2%
11. Woodside Petroleum Ltd	36,038	3.0%
12. Woolworths Ltd	31,200	2.6%
13. AMP Ltd	22,950	1.9%
14. Telstra Corporation Ltd	22,020	1.8%
15. Sonic Healthcare Ltd	21,900	1.8%
16. Ramsay Health Care Ltd	20,493	1.7%
17. Brambles Ltd	19,551	1.6%
18. Sydney Airport	19,240	1.6%
19. Event Hospitality and Entertainment Ltd	18,405	1.5%
20. Lend Lease Group	18,238	1.5%
21. Washington H Soul Pattinson	17,700	1.5%
22. Macquarie Atlas Roads Group	17,040	1.4%
23. Link Administration Holdings Ltd	16,708	1.4%
24. Orica Ltd	15,247	1.3%
25. Invocare Ltd	15,100	1.3%
955,512	79.7%
Total Investments at Market Value, Net Short Term Receivables and Cash	1,198,061

Note: At 31 August bank borrowings were $130M, and cash and net short term receivables (included in the above figures) were $60M.