fincorp investor presentation

Becton Investment Management

Hamish Macdonald, CEO, Becton Property GroupGilston Rush, Fund Manager, Becton Office Fund

25 July 2007

Fincorp investor presentation


Disclaimer

This presentation is provided by Becton Property Group Limited and is for general information only.

Opinions expressed are our present opinions only and are subject to change. In preparing this presentation,

we have obtained information from sources we believe to be reliable, but do not offer any guarantees as to its

accuracy or completeness.

The information contained in the presentation is general in nature and in preparing this presentation Becton

Property Group Limited has not taken into account the investment objectives, financial situation and particular

needs of any particular person. Before making an investment decision, a prospective investor should consider, with

the assistance of a financial and tax adviser, whether an investment is appropriate in light of their particular

investment needs, objectives and financial circumstances.

It does not contain and is not to be taken as containing any securities advice or securities recommendation.

Furthermore, it is not intended that it be relied on by recipients for the purpose of making investment decisions.

Subject to law, none of the companies of Becton Property Group Limited or its respective directors or employees,

accepts any responsibility or owes any duty of care to any person acting, or refraining from acting,

as a result of material in this presentation.


Presentation overview

• About Becton Property Group

– Our track record

• About Becton Investment Management

• Fincorp v Becton

• About Becton Office Fund

– Current assets

– Benefits for investors

• Questions


Becton Property Group —Stapled Group Structure

Becton Property Group Limited Becton Property Trust

Development & Construction

Funds Management(Becton Investment

Management)Retirement Becton Diversified Property Fund

Becton Property Group(ASX-Listed)

14 Sector and Single Property Trusts

Stapled


Becton Property Group —Equity: strong institutional support

29 Jun 2007 % of iu1 AMP Capital Investors 8,902,430 6.1%

2 Goldman Sachs JB Were Investment Mgt 8,787,914 6.0%

3 Challenger Financial Services Group 7,272,115 5.0%

4 Deutsche Asset Mgt 6,857,664 4.7%

5 QIC 5,874,614 4.0%

6 Credit Suisse Asset Mgt 4,851,639 3.3%

7 Colonial First State - Core Australian Equities 4,342,076 3.0%

8 BlackRock 4,190,740 2.9%

9 Paradice Investment Mgt 3,438,283 2.4%

10 BT Financial Group 3,380,690 2.3%

11 Portfolio Partners 2,744,767 1.9%

12 Legg Mason Asset Mgt 2,344,246 1.6%

13 Opis Capital 2,020,000 1.4%

14 Hyde Family 1,600,000 1.1%

15 Pengana Capital 1,406,452 1.0%

16 Mr William J Conn 1,255,264 0.9%

17 Colonial First State Investments 1,210,354 0.8%

18 Legg Mason Asia 1,124,161 0.8%

19 Barclays Global Investors 1,029,758 0.7%

20 Jenkins Investment Mgt 1,022,123 0.7%

Total 73,655,290 50.6%

Top 20 Institutions

25%Other (other

institutions

and retail)

100%Total

51%20 largest institutions

24%

%

Directors, management and staff

Investor base


$0$100$200$300$400$500$600$700$800$900

'June 2006 'December 2006 'June 2007

$ M

illi

on

s

0%5%

10%15%20%25%30%35%40%45%

'June 2006 'December 2006 'June 2007

Becton Property Group —Overview continued

Total assets – $ millions Gearing – Loan to valuation ratio (LVR)


Becton Property Group —Becton Investment Management

• $1.3b funds under management

• 16 investment vehicles: three sector funds; one diversified fund; 11 single property funds; 1 mezzanine fund

• Four open funds• 72 properties across office,

retail, industrial, hotel and healthcare sectors

• More than 6000 investors


Example of Becton Office Fund structure & cash flow

Rent after interest $18m

Rent $30m

Interest $12m

Becton Office Fund (BOF)

Tenants

PropertiesSenior debt

Investors

Becton manager

Distributions $16m

Mgt Fees $2m


Differences between Fincorp and Becton Property Group

~$50mLossAnnual profit

$150m$0Director and employee investment

60 employees (at peak)

< $50m completed projects

6 years in business

100%

�

Fincorp

300 employees

$4b completed projects

30 years in business

40%

�(Independent directors;

independent audit; independent compliance committee)

Becton Property Group

Track record

Gearing

ASX-listed


8.7 cpu2006/07 distribution target

8.2% p.a.2006/07 monthly return target

5.35%Vacancy (excludes rent guarantee)

$1.0550Unit price

2.75 yearsAverage lease term in portfolio

132Number of tenants

13Number of properties

$374.91 millionFund size

Becton Office Fund —Fund overview


Becton Office Fund —Geographic overview

Geographic diversification by gross income (%)

QLD6.3%

NT5.5%

NZ8.1%

ACT10.6%

VIC11.8%

NSW52.1%

SA5.5%


Becton Office Fund —Tenant diversification

Tenant type by gross income (%)

Private

38.8%

Government

22.9%

Public

34.7%

Casual car

parking

0.3%

Rent

Guarantee

3.3%


2.22%Wilson Parking Australia Pty Ltd

2.30%NSW Dept of Ageing Disability & Home Care

2.55%Southern Star Group

2.87%Liberty Oil

2.92%NSW Land and Housing Corporation

4.27%Westpac Banking Corporation

4.31%Allianz Australia Services Pty Ltd

5.44%Northern Territory Government

9.82%Dept of Immigration & Citizenship

11.62%Telstra Corporation

Top tenants by gross income

Becton Office Fund —Top tenants


Becton Office Fund —Assuming $10,000 investment since inception

Note: Performance calculations are based on reinvestment of distributions. Distribution reinvestment option is not currently available for this fund.


Becton Office Fund —

2 Elizabeth Plaza, North Sydney, New South Wales

● Purchase price – $53.9m

(Purchased 26 Feb 2007)

● Valuation – $53.9m

● 20 tenants including United Group Service, Sterling Commerce, Wilson Parking

● Occupancy – 89%

● North Sydney office market

● 13 level office building


Becton Office Fund —

Railway Parade, Burwood, New South Wales

● Purchase price - $71.125m

(Purchased 26 Feb 2007)

● Valuation - $71.125m

● 10 tenants including Telstra Corporation, Centrelink, Department of Ageing, Disability and Home Care

● Occupancy – 97%

● Suburban Sydney office market

● Two office buildings – 8 levels each


Becton Office Fund —Benefits for investors

• Strong yielding investment – a yield of 8.2% per annum^

• Regular distribution return – a regular income stream is provided by monthly distributions

• Strong diversification – more than 130 tenants in 13 office properties; well diversified in eleven different markets

• Tax deferral – income 100% tax deferred for the twelve month period ending 30 June 2006*

• Liquidity – withdrawal offers in March and September maximum 5% per annum.

^ Based on a unit price of $1.055 as at (30 June 2007). The unit price is subject to review each month

* Please note historical performance is no indication of likely future performance


Becton Office Fund —Benefits for investors continued

• Becton Co–investment – Becton has a 45% interest in the Becton Office Fund (approx $85 million). This co-investment provides a strong alignment with other investors in the Fund.

• Independent Research – the Fund is rated by Lonsec: Recommended (Lower End)* and Aegis (Recommended).

• Strong Outlook for Office Sector – Vacancy likely to drop further, rents continue to grow strongly, yields likely to tighten further, albeit at a reduced rate (Source: CBRE).

* = in the range of 75-80; the Becton Office Fund scored 77.3.


• Current Fund Size = $375 million

• Annual liquidity = $18.75 million can be redeemed annually

• If more than 5% of the Fund want to redeem then investors are redeemed on a pro rated basis

Becton Office Fund —Liquidity explained

• Investors can redeem their units in March and September every year

• Maximum amount is 5% of the value of the Fund, per annum• Limit is to protect investors to avoid fire sale of assets to meet

liquidity – long-term investment• Redemptions to date have been less than 2.5% of Fund value in

any one year• Redemption costs 5% of amount redeemed

Example


Becton Office Fund —Tax Deferred explained

• Monthly payments are tax-deferred

• In 2006/07, this was 100% for the Becton Office Fund

If an investor received $10,000 in income for 06/07:

• 100% tax deferred means no tax is payable for that year on the $10,000

• It is simply deferred by reducing the investor’s capital base and therefore paid as part of the capital gain tax when the investment is sold.

Example


Becton Office Fund — Capital guaranteeBecton will guarantee your initial upfront investment, less any investment earnings, over the three-year period.

$2,475$825$825$8258.25%Annual income

$5,000

$5,000

Invest Redeemed

Total Received

$5,000Amount guaranteed at the end of year 3

$0$ -$ -$ -0.00%Annual income

$10,000Capital invested

Unlikely outcomeExample 2

Not applicableAmount guaranteed at the end of year 3

$12,000

$14,475

Invest Redeemed

Total Received

$10,000Capital invested

Most probable outcomeExample 1

Capital guaranteed

Total investment earnings

Year 3Year 2Year 1Investment earnings

Upfront investment


For further information:

Website www.becton.com.au (click on ‘funds management’)

Phone 1800 182 257 (9am-5pm)

Write 6 / 470 St Kilda Road, Melbourne 3004

A copy of the product disclosure statement is available on the website and will be posted to you in the coming weeks

fincorp investor presentation

Documents