Australian United Investment : 30 June 2017 Appendix 4E, Preliminary Final Report & Accounts

AUSTRALIANUNITEDINVESTMENTCOMPANYLIMITED‌‌‌

ABN 37 004 268 679

APPENDIX 4E STATEMENT FOR THE YEAR ENDED 30 JUNE 2017

CONTENTS

• Results for announcement to the market

• Letter to Australian Securities Exchange

• Financial Statements

• Independent Audit Report

Appendix 4E: Results Announcement Australian United Investment Company Limited 30.6.2017

RESULTS FOR ANNOUNCEMENT TO THE MARKET

The reporting period is the year ended 30 June 2017 with the prior corresponding period being the year ended 30 June 2016.

This report is based on audited financial statements. A copy of the audit report can be found on page 28.

Results for announcement to the market

• Revenue from ordinary activities was $51.0 million, up 5.5% from the prior year.

• Profit after tax was $44.1 million, up 4.5% from the prior year.

• Total net profit for the period of $44.1 million excludes net realised gains and losses which are transferred directly to the Asset Revaluation Reserve under the accounting standards.

• This year special dividends of $435,000 after tax were received (prior year $163,700).

• Excluding the special dividends received revenue rose 5.0% and profit after tax rose 3.8%.

• Earnings per share based on profit after tax were 35.7 cents, an increase of 1.4%. Excluding the special dividends received earnings per share rose 0.9% to 35.3 cents*. The weighted average number of ordinary shares for the year was 123,557,412 compared to 120,054,058 in the prior year, an increase of 2.9%.

• The final dividend is 18.5 cents per share (18.5 cents prior year) fully franked, bringing total dividends for the year to 34.0 cents fully franked (prior year 34.0 cents). The dividend is payable on 22 September 2017. The record date for determining entitlement to the final dividend is 31 August 2017.

• The final dividend will not include any Listed Investment Company capital gain dividend.

• The Company operates a Dividend Reinvestment Plan ("DRP") under which shareholders may elect to have all or part of their dividend payment reinvested in new ordinary shares. Pricing of the new DRP shares will be at the volume weighted average selling price of shares traded on the Australian Securities Exchange in the five days commencing from the day the shares start trading on an ex dividend basis, without any discount. The last day for the receipt of an election notice for participation in the plan is 1 September 2017.

• The net tangible asset backing per share based on the market valuation of investments was $8.57 at 30 June 2017, compared to $7.57 at the end of the prior year. These calculations are after tax on net realised gains, before any future tax benefit of net realised losses, before estimated tax on net unrealised gains/losses, and before provision for the final dividend.

* Additional non IRFS information.

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Appendix 4E: Letter to Australian Securities Exchange Australian United Investment Company Limited 30.6.2017

AUSTRALIANUNITEDINVESTMENTCOMPANYLIMITED

ABN 37 004 268 679

Level 20 Tel [phone]

101 Collins Street Fax [phone]

Melbourne Vic 3000

Australia

16 August 2017

The General Manager Australian Securities Exchange P O Box H224

Australia Square Sydney NSW 2000

Dear Sir,

Financial Results and Dividend Announcement for the Financial Year Ended 30 June 2017

The Directors make the following report concerning the company's performance and final dividend:-

Operating Profit and Realised Capital Gains

Profit after income tax for the year ended 30 June 2017 was $44,086,600 (last year: $42,209,639). The profit includes special dividends received after tax of $435,000 (last year: $163,700).

Excluding special dividends received, profit after tax rose 3.8%*.

Net realised gains on the investment portfolio after tax were $2,633,910 (last year losses of

$2,840,687), which under accounting standards are transferred directly to the Asset Realisation Reserve and not included in Net Profit.

Earnings Per Share

Earnings per share based on the weighted average number of shares on issue for the year were

35.7 cents, a rise of 1.4%. Excluding special dividends received, earnings per share rose 0.9% to

35.3 cents*.

The weighted average number of ordinary shares for the year was 123,557,412 compared to 120,054,058 last year, taking into account the shares issued on the dividend re-investment plan, an increase of 2.9%.

Dividends

The Directors also announce a final dividend of 18.5 cents per share fully franked to shareholders registered on 31 August 2017, to be paid on 22 September 2017. The comparable 2016 final dividend was 18.5 cents per share fully franked. Together with the interim dividend of 15.5 cents per share, total dividends for the year are 34.0 cents per share fully franked (last year 34.0 cents).

* Additional non IFRS information.

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Appendix 4E: Letter to Australian Securities Exchange Australian United Investment Company Limited 30.6.2017

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LIC Capital Gains

The final dividend will not include any Listed Investment Company capital gain dividend.

Dividend Reinvestment Plan

The Company operates a Dividend Reinvestment Plan ("DRP") under which shareholders may elect to have all or part of their dividend payment reinvested in new ordinary shares. Pricing of the new DRP shares will be at the volume weighted average selling price of shares traded on the Australian Securities Exchange in the five days beginning from the day the shares begin trading on an ex dividend basis, without any discount. The last day for the receipt of an election notice for participation in the plan is 1 September 2017.

Asset Backing

The net tangible asset backing per share based on the market valuation of investments was $8.57 at 30 June 2017 and $8.58 at 31 July 2017. These calculations are after tax on net realised gains, before any future tax benefit of net realised losses, before estimated tax on net unrealised gains and losses, and before provision for the final dividend.

The Company is a long term investor and does not intend disposing of its total portfolio. If estimated tax on unrealised net portfolio gains were to be deducted, the above figures would be $7.46 at 30 June 2017 and $7.46 at 31 July 2017.

Performance

The Company's net asset backing accumulation performance for the year to 30 June 2017 was a rise of 18.0% while the S&P/ASX 200 Accumulation Index rose 14.1%% over the same period. The Company's returns are after tax and expenses and the impact of the Company's gearing for which no allowance is made in the S&P/ASX Index.

Including the benefit of franking credits for shareholders who can fully utilise them, the Company's accumulation return for the year to 30 June 2017 was a rise of 20.1% compared to a rise of 15.9% in the S&P/ASX 200 Franking Credit Adjusted Index.

The Company's relative performance for the year was assisted by strong contributions from stocks such as South32, Orica, Challenger, BT Investments, Rio Tinto, Perpetual and Lend Lease, all of which saw price appreciation in excess of 30%. The portfolio also benefitted from being underweight the REIT and Telecommunications sectors and from its modest level of gearing.

Operating expenses for the year (including the management fees of the Small Caps managed funds, and excluding interest) were 0.10% of the average market value of the portfolio (last year 0.10%).

Annual General Meeting

The Annual General Meeting of the Company will be held on Monday, 16 October 2017 at 9.00 am at the offices of Evans & Partners, Mayfair Building, 171 Collins Street, Melbourne.

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