Milton : Net Asset Backing December 2016

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 DECEMBER 2016 NTA per Share at 31 December 2016 Before provision for tax on unrealised capital gains was $4.47 After provision for tax on unrealised capital gains was $3.97 (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 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 2016 the market value of this equity investment portfolio was $2.7 billion.
Asset allocation at Market Shareof 31 December 2016 ValueTotal Assets $ m % Banks 1,009.1 34.6 Consumer staples 259.5 8.9 Diversified financials 205.9 7.1 Energy (includes W H Soul Pattinson) 192.7 6.6 Insurance 138.4 4.8 Metals and mining 126.1 4.3 Telecommunication 101.8 3.5 Healthcare 95.3 3.3 Retailing 91.1 3.1 Real estate 85.1 2.9 Construction materials 78.7 2.7 Utilities 76.8 2.6 Transport 69.9 2.4 Commercial services 63.6 2.2 Other materials 48.3 1.7 Capital goods 37.2 1.3 Other shares 63.2 2.2 Total investment portfolio 2,742.70 94.2 Cash 131.0 4.5 Other assets 39.1 1.3 Total assets 2,912.8 100.0	Top 20 Investments at 31 December 2016	Market Share of Value Total Assets $ m %
	Westpac Banking Corporation Commonwealth Bank of Australia National Australia Bank W H Soul Pattinson Wesfarmers Limited ANZ Banking Group BHP Billiton Bank of Queensland Telstra Corporation Bendigo and Adelaide Bank Woolworths Limited Perpetual Limited AGL Energy CSL Limited Macquarie Group AP Eagers Limited Suncorp Group Brickworks Limited Blackmores Limited ALS Limited	340.7 11.7 256.3 8.8 145.9 5.0 138.8 4.8 119.5 4.1 102.5 3.5 91.1 3.1 86.7 3.0 76.4 2.6 72.6 2.5 70.0 2.4 64.5 2.2 59.6 2.0 59.5 2.0 56.9 2.0 53.8 1.8 44.8 1.5 44.0 1.5 37.9 1.3 36.7 1.3
	Total Top 20	1,958.2 67.1
Low MER Milton's total operating costs represented 0.13% per annum of average total assets for the year to 30 June 2016. Key dates (these dates may be subject to change) - Appendix 4D and half year results announcement 25 January 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	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	8.7
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	9.9
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	0.0

Total Returns to 31 December 2016 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.

16%

14%

Percent per annum

12%

10%

8%

6%

4%

2%

0%

1 Year	3 Yrs (pa)	5 Yrs (pa)	10 Yrs (pa)	15 Yrs (pa)
MLT TPR	3.86%	5.56%	11.52%	5.12%	8.75%
MLT TSR	-0.53%	5.32%	13.35%	4.59%	8.67%
XAOAI	11.65%	6.76%	11.59%	4.51%	8.05%

-2%

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