1

FOLKESTONE

REAL ESTATE OUTLOOK

JULY 2015

2

ECONOMIC

OUTLOOK

3

-2.0%

-1.0%

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

Ma

r-9

0

Ma

r-9

3

Ma

r-9

6

Ma

r-9

9

Ma

r-0

2

Ma

r-0

5

Ma

r-0

8

Ma

r-1

1

Ma

r-1

4

Ma

r-1

7

ECONOMIC CONDITIONS – NATIONAL GROWTH

Private New Capital Expenditure:

2000 – 2015

• Economic growth remains below trend – the transition from mining has been slow

• Businesses appear reluctant to invest until the economy improves

• The RBA has pushed the timing out for a recovery in non-mining investment until later in 2016

Source: ABS, Bloomberg, RBA

Australian GDP Growth:

1990 – 2017

Average

= 3.1%

Average

= 2.8%

0.0

5.0

10.0

15.0

20.0

25.0

Ma

r-0

0

Ma

r-0

1

Ma

r-0

2

Ma

r-0

3

Ma

r-0

4

Ma

r-0

5

Ma

r-0

6

Ma

r-0

7

Ma

r-0

8

Ma

r-0

9

Ma

r-1

0

Ma

r-1

1

Ma

r-1

2

Ma

r-1

3

Ma

r-1

4

Ma

r-1

5

Mining Manufacturing Other Industries

$b

n

4

ECONOMIC CONDITIONS – STATE GROWTH

State Final Demand:

2000 – 2015

• Population growth has slowed in the past year but still high for a developed nation

• VIC recorded the strongest growth (1.8%) and was just below NSW in terms of absolute growth

• WA and QLD population growth has slowed due to mining downturn

• Economic growth across the States reflecting the economic transition from mining

Source: ABS

Population Growth:

Year to Dec 2014

-6.0%

-3.0%

0.0%

3.0%

6.0%

9.0%

12.0%

15.0%

Ma

r-0

0

Ma

r-0

1

Ma

r-0

2

Ma

r-0

3

Ma

r-0

4

Ma

r-0

5

Ma

r-0

6

Ma

r-0

7

Ma

r-0

8

Ma

r-0

9

Ma

r-1

0

Ma

r-1

1

Ma

r-1

2

Ma

r-1

3

Ma

r-1

4

Ma

r-1

5

NSW VIC QLD WA

0.0%

0.2%

0.4%

0.6%

0.8%

1.0%

1.2%

1.4%

1.6%

1.8%

2.0%

0

20,000

40,000

60,000

80,000

100,000

120,000

VIC

WA

NS

W

QL

D

AC

T

SA

TA

S

No. of People % Increase

WA

QLD

NSW

VIC

5

• Yields have fallen to historic lows across the yield curve

• Markets now factoring in another rate cut by late 2015/early 2016 following RBA cuts in February and May

• For investors, key to look at long-end of curve (10 year yields) – will this increase as economic recovers and/or

follow global yields higher

Yields:

2005 – 2015

FINANCIAL MARKET CONDITIONS - YIELDS

Cash Rate Expectations:

12 Months to December 2016

Source: IRESS, The Yield Report

0.0%

1.0%

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

Jun

05

Jun

06

Jun

07

Jun

08

Jun

09

Jun

10

Jun

11

Jun

12

Jun

13

Jun

14

Jun

15

90 Day Bills 3 Yr Bonds 10 Yr Bonds

1.0%

1.1%

1.2%

1.3%

1.4%

1.5%

1.6%

1.7%

1.8%

1.9%

2.0%

Au

g-1

5

Se

p-1

5

Oct-

15

Nov-1

5

Dec-1

5

Jan

-16

Fe

b-1

6

Ma

r-1

6

Ap

r-16

Ma

y-1

6

Jun

-16

Jul-

16

Au

g-1

6

Se

p-1

6

Oct-

16

Nov-1

6

Dec-1

6

*As at 10 July 2015

6

PROPERTY MARKET

OUTLOOK

7

Non-Residential Property Total Returns:

2003 – 2015

AUSTRALIAN MARKET CONDITIONS – NON-RESIDENTIAL

• March 2015 - total return was 10.7% underpinned by strong income return of 6.9%

• Direct property has provided stable returns for past 5 years in a period of financial market volatility

• Capital values in upswing phase driven by further cap rate compression rather than real estate fundamentals

• Industrial has been the best performing sector over 1 and 3 years – likely to continue in FY16

Source: MSCI, IPD

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

Dec-0

3

Dec-0

4

Dec-0

5

Dec-0

6

Dec-0

7

Dec-0

8

Dec-0

9

Dec-1

0

Dec-1

1

Dec-1

2

Dec-1

3

Dec-1

4

Ma

r-1

5

Capital Return Income Return Total Return

Rolli

ng A

nnual R

etu

rns

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Au

str

alia

nIn

dustr

ial

Au

str

alia

nO

ther

Au

str

alia

nR

eta

il

All

Pro

pert

y

Au

str

alia

nO

ffic

e

1 Year 3 Years

Total Returns by Sector:

1 and 3 Years to March 2015

8

2.0%

3.0%

4.0%

5.0%

6.0%

7.0%

8.0%

9.0%

10.0%

Ma

r-0

5

Ma

r-0

6

Ma

r-0

7

Ma

r-0

8

Ma

r-0

9

Ma

r-1

0

Ma

r-1

1

Ma

r-1

2

Ma

r-1

3

Ma

r-1

4

Ma

r-1

5

CBD Office Major Regional Retail

Neighbourhood Retail Industrial Warehouse

10 Year Bonds

AUSTRALIAN MARKET CONDITIONS – CAP RATES

Cap Rates vs. Historical Peak and Average:

June 2015

• Disconnect between capital markets and space markets highlighted in recent sector dynamics:

• cap rates have firmed while vacancy rates remain elevated and income growth is subdued

• prices being driven by weight of money not underlying real estate fundamentals

• Cap rates have fallen most for industrial – lowest spread from historical average

• Expect further cap rate compression in FY16 driven by weight of money

Cap Rates vs. 10 Year Bond Yields:

2005 – 2015

Still not back to

pre-GFC levels

Source: MSCI, IPD

0.0%

0.5%

1.0%

1.5%

2.0%

Se

condary

Offic

e

Bu

lky

Goods

Neig

hbourh

ood

Reta

il Prim

eO

ffic

e

Su

b-R

egio

nal

Reta

il

Regio

nal

Reta

il

Syd

Se

condary

…

Syd P

rim

eIn

dustr

ial

Spread From Historic Avg. Spread From Previous Peak

9

AUSTRALIAN MARKET CONDITIONS – TRANSACTIONS

Non-residential Transaction Volume By

Key Sector: 2008 – 2015

• In 6 months to June 2015, just under $10bn was transacted in the office, retail and industrial sectors

• Activity running below levels in 1st half of 2014 due to stock availability rather than capital drying up

• Foreign investors accounted for 45% of transaction value in the past six months

• Office remains the key target for foreign investors (Sydney and Melbourne), although growing interest in prime industrial and hotels

Source: DTZ

0.0

5.0

10.0

15.0

20.0

25.0

30.0

200

8

200

9

201

0

201

1

201

2

201

3

201

4

201

5

Office Retail Industrial

$bn

Domestic vs. Foreign Investment Activity:

2012 - 2015

*

*Six months to June 2015

10

AUSTRALIAN MARKET CONDITIONS – GLOBAL CAPITAL

• Low interest rate environment, strong relative pricing and quantitative easing in some markets have led to strong growth in

global capital targeting real estate

• Global investment activity is set to close in on 2007 peak levels by end of 2015

• Global capital focusing on gateway cities - Melbourne and Sydney rank high on the shopping list

• Japan followed by Australia and China are the main targets by institutional investors in Asia Pacific region

Investment in Major Global Cities:

Q2 2014 – Q1 2015

Source: DTZ

Investor Target Markets by Region:

2015

0.0

10.0

20.0

30.0

40.0

C. L

on

don

Ma

nh

att

an

Sa

n F

ran

cis

co

To

kyo

Los A

nge

les

Pa

ris

Me

lbou

rne

Wa

sh

ing

ton

DC

Bo

sto

n

Chic

ago

Sydn

ey

Hon

g K

on

g

Dalla

s

Sin

ga

pore

Mia

mi

North America

Europe

Asia Pacific

US

Mexico

Canada

Brazil

UK

Germany

France

Spain/ Italy

Benelux

Nordics

CEE Other

Japan

Australia

China

Singapore

S. Korea

Hong Kong

Other

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Americas EMEA Asia Pacific

11

• Vacancy rates reflect divergent economic growth prospects of the major markets

• Sydney the only CBD market to record a single digit vacancy – 7.8%

• Effective rental growth has been subdued in Sydney and Melbourne and negative in other CBDs due to high

vacancy and elevated incentives

AUSTRALIAN MARKET CONDITIONS – OFFICE

CBD Office Vacancy Rates:

Dec 2014 – Jun 2015

Source: JLL

Prime Effective Rental Growth:

Year to March 2015

0.0% 5.0% 10.0% 15.0% 20.0%

Sydney

Melbourne

Brisbane

Adelaide

Canberra

Perth

Dec-14 Jun-15

-20.0% -10.0% 0.0% 10.0%

Perth CBD

Adelaide CBD

Brisbane CBD

Canberra

Sydney CBD

Melbourne CBD

12

AUSTRALIAN MARKET CONDITIONS – RETAIL

Retail Sales vs. Consumer Confidence:

2002 – 2015

• Retail sales growth has improved but driven by household goods (impact of strong housing market)

• Consumer confidence remains weak – therefore cautious on spending

• However, lower confidence partly offset by strong population growth, rising house prices and equity values (the “wealth effect”)

Source: ABS

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

75

85

95

105

115

125

Jan

-02

Jan

-03

Jan

-04

Jan

-05

Jan

-06

Jan

-07

Jan

-08

Jan

-09

Jan

-10

Jan

-11

Jan

-12

Jan

-13

Jan

-14

Jan

-15

% C

ha

ng

e p

cp

Ind

ex

Consumer Confidence (LHS) Retail Sales (RHS)

Retail Turnover by Type:

Year to May 2015

0.0% 2.0% 4.0% 6.0% 8.0% 10.0%

Houshold Goods

Cafes, Restaurants &Takeaway

Total

Food Retailing

Clothing, Footwear &Accessory

Other Retailing

Department Stores

13

Aldi, Coles & Woolworths – Annual Sales Growth:

2011-2014

AUSTRALIAN MARKET CONDITIONS – RETAIL

• Competition in supermarket sector is increasing

• ALDI now a genuine third supermarket operator

• The competition between Coles and Woolworths is not new – who is number 1 changes over time

Source: Company Reports and JP Morgan

Aldi, Coles & Woolworths – Sales per Sq.m:

2010-2014

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

2011 2012 2013 2014

ALDI Coles Woolworths

Lik

e f

or

Lik

e (

Sale

s G

row

th)

$0.0

$5.0

$10.0

$15.0

$20.0

2010 2011 2012 2013 2014

ALDI Coles Woolworths

$ '000/s

q.m

.

14

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

16.0%

Warehouse Distribution Industrial Estate Other

1 Year Return 3 Years Return

Investment Performance Across Industrial Sub-Sectors:

1 and 3 Years to March 2015

• Warehouse and distribution centres have performed strongly in recent years – investors chasing prime assets

• Industrial performance being driven by:

• investors chasing higher yields relative to office and retail

• on-going transformation of industrial landscape – more distribution centres and changing land-use of inner ring industrial areas

• industrial distribution centres – demand high due to e-commerce, retail trade and change in transport networks

AUSTRALIAN MARKET CONDITIONS – INDUSTRIAL

Source: IPD/MSCI

Annualis

ed

Retu

rn

15

Dwelling Values – Major Capital Cities:

1 Year and 10 Years to June 2015

• Housing boom has not been uniform across Australia

• Sydney has been standout performer – up 16.2% in the past year however over 10 years it is 5.4% p.a. one of the

weakest

• Sydney and Melbourne, considered global cities - rank 10 & 11 on global basis based on growth in year to March

2015 (latest available nos.)

Source: Core Logic/RP Rismark, Knight Frank Residential Research, Douglas Elliman/Millare Samuel, Ken Corporation

AUSTRALIAN MARKET CONDITIONS – RESIDENTIAL

-10.0% 0.0% 10.0% 20.0%

Sydney

Melbourne

Adelaide

Brisbane

Canberra

Hobart

Perth

Darwin

12 Months to June 2015

Average 10 Years to June 2015 (p.a.)

Prime Global Cities Index:

1 Year to March 2015

0.0% 5.0% 10.0% 15.0%

San Francisco

Bengaluru

Miami

Vancouver

Jakerta

Tel Aviv

Tokyo

Dublin

Los Angeles

Sydney

Melbourne

Seoul

Cape Town

Hong Knog

Madrid

Bangkok

London

Mumbai

Delhi

Shanghai

16

AUSTRALIAN MARKET CONDITIONS – RESIDENTIAL

Housing Finance by Type of Borrower:

1995 – 2015

• Investor activity is driving the residential market

• However, despite all the hype about apartments off-plan sales, investors are preferring established housing

• APRA macro-prudential controls on bank lending will impact the investor market

• Strong link between interest rates and housing sector – investors need to be cognisant of interest rate increases down the track

Source: ABS

0.0

2.0

4.0

6.0

8.0

10.0

12.0

Ma

y 9

5

Ma

y 9

7

Ma

y 9

9

Ma

y 0

1

Ma

y 0

3

Ma

y 0

5

Ma

y 0

7

Ma

y 0

9

Ma

y 1

1

Ma

y 1

3

Ma

y 1

5

$b

n (

s.a

.)

Owner Occupier - Construction

Owner Occupier - Purchase of New Dwellings

Owner Occupier - Purchase of Existing Dwellings

Investment - Construction

Investment - Purchase of Dwellings

Building Approvals and Monetary Policy:

1991 - 2015

100,000

120,000

140,000

160,000

180,000

200,000

220,000

240,000

0

2

4

6

8

10

12

Jun

-91

Jun

-93

Jun

-95

Jun

-97

Jun

-99

Jun

-01

Jun

-03

Jun

-05

Jun

-07

Jun

-09

Jun

-11

Jun

-13

Jun

-15

No o

f A

ppro

vals

(R

olli

ng A

nnual)

%

Cash Rate (LHS) Building Approvals (RHS)

Tightening Cycles

17

AUSTRALIAN MARKET CONDITIONS – RESIDENTIAL

Multi-Unit Dwelling as % of Total

Dwelling Completions: 1986 - 2015

• Apartments now key part of the market – 41% of completions in year to March 2015 – due to lifestyle/demographic changes, affordability (apartments

28% cheaper than houses in Sydney) and planning changes

• Inner Melbourne, Inner Brisbane & South Sydney apartment markets heading for an oversupply – better value in middle/outer ring suburbs, mixed-use

developments and around transport nodes

• Land sales falling across Australia since peaking in 2013 – driven by Sydney where lot sales down 29.7% in March quarter and almost 50% below

record set in December quarter 2013

• Media lot price in Sydney now $365,000 - 64% higher than Melbourne ($222,000) and Brisbane ($228,000)

Source: ABS, HIA, CoreLogic RPData

15.0%

20.0%

25.0%

30.0%

35.0%

40.0%

45.0%

Ma

r-1

987

Ma

r-1

989

Ma

r-1

991

Ma

r-1

993

Ma

r-1

995

Ma

r-1

997

Ma

r-1

999

Ma

r-2

001

Ma

r-2

003

Ma

r-2

005

Ma

r-2

007

Ma

r-2

009

Ma

r-2

011

Ma

r-2

013

Ma

r-2

015

(Rolli

ng A

nnual)

Residential Land Sales and Medium Lot

Values – Capital Cities: 2010 - 2015

170,000

180,000

190,000

200,000

210,000

220,000

230,000

240,000

250,000

260,000

270,000

0

2,000

4,000

6,000

8,000

10,000

12,000

Ma

r Q

tr 1

0

Se

p Q

tr 1

0

Ma

r Q

tr 1

1

Se

p Q

tr 1

1

Ma

r Q

tr 1

2

Se

p Q

tr 1

2

Ma

r Q

tr 1

3

Se

p Q

tr 1

3

Ma

r Q

tr 1

4

Se

p Q

tr 1

4

Ma

r Q

tr 1

5

Number of Sales (LHS) Price Per Lot (RHS)

$

18

0

1,000

2,000

3,000

4,000

5,000

6,000

Ma

y-8

5

Ma

y-8

8

Ma

y-9

1

Ma

y-9

4

Ma

y-9

7

Ma

y-0

0

Ma

y-0

3

Ma

y-0

6

Ma

y-0

9

Ma

y-1

2

Ma

y-1

5

NSW Houses NSW Apartments NSW Total

No.

of

Appro

vals

(per

month

)

0

1,000

2,000

3,000

4,000

5,000

6,000

7,000

Ma

y-8

8

Ma

y-9

1

Ma

y-9

4

Ma

y-9

7

Ma

y-0

0

Ma

y-0

3

Ma

y-0

6

Ma

y-0

9

Ma

y-1

2

Ma

y-1

5

VIC Houses VIC Apartments VIC Total

No.

of

Appro

vals

(per

month

)

House and Apartment Approvals – NSW and Victoria:

1988 – 2015

• NSW approvals declined significantly between 2003 and 2008 – leading to current undersupply and price pressures

• VIC approvals continue to run ahead of long-term average and also ahead of NSW – better planning system

• Declining affordability, concerns of oversupply in some sub-markets, supply bottlenecks (Sydney planning) will see supply taper off in 2016

Source: ABS

AUSTRALIAN MARKET CONDITIONS – RESIDENTIAL

19

Performance of the Top Five A-REITs:

Year to June 2015

• More capital being allocated in both the listed and unlisted real estate markets to alternative assets such as early learning, medical/health and seniors living

• 4 of the top 5 performing A-REITs in the year to June 2015 were social infrastructure related

• Alternate sectors typically higher yields than office, retail and industrial, although yield gap closing due to growing investor interest in alternate assets

• Benefits of investing in social infrastructure typically include longer leases (often 10 years or more), net or triple net leases (whereby the operator/ tenant

pays outgoings and is responsible for repairs and maintenance), often government backed cash flows & lower volatility compared to other assets

Source: ABS

AUSTRALIAN MARKET CONDITIONS – SOCIAL INFRASTRUCTURE

Early Learning Centre Sale Yields:

2010 - 2015

0.0% 20.0% 40.0%

National StorageREIT

GrowthPointProperties

Arena REIT

FolkestoneEducation Trust

Hotel PropertyInvestments 3.0%

5.0%

7.0%

9.0%

11.0%

13.0%

15.0%

Jan

-10

Oct-

10

Au

g-1

1

Jun

-12

Ap

r-13

Fe

b-1

4

Dec-1

4

Yie

ld

Metro Yields Regional Yields

Linear (Metro Yields) Linear (Regional Yields)

20

A-REIT SECTOR

OUTLOOK

21

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

Indu

str

ial

A-R

EIT

s

Reta

ilA

-RE

ITs

To

tal

A-R

EIT

Off

ice

A-R

EIT

s

Div

ers

ifie

d

1 Year 3 Years 5 Years

A-REIT – Total Returns:

to 30 June 2015

• A-REITs outperformed equity and bonds in year to June 2015 – 2nd time in 3 years

• Industrial A-REITs were the best performing A-REIT sector over 1 and 3 years – 27.5% and 24.0% p.a.

• Expect performance to moderate in FY16 to longer-term averages – circa 10%

• Short-term volatility (general equity flows in & out of sector/ market sentiment) will continue to be a feature of A-REITs in FY16

• A-REIT’s in better shape than pre GFC – lower gearing, more sustainable pay-out ratios, focused strategies

A-REIT SECTOR PERFORMANCE

Source: UBS

(% p

.a.)

-10.0%

-5.0%

0.0%

5.0%

10.0%

15.0%

20.0%

25.0%

30.0%

2012 2013 2014 2015

A-REITs Equities Bonds

Year ending June

A-REITs vs. Equities vs. Bonds:

2012 - 2015

22

A-REIT Sector EPU and DPU Yields vs.

10 Year Australian Bond Yields: 1990 – 2015

• Despite strong price performance of A-REITs, spread between A-REIT yields and 10 year bonds still wide - DPU spread circa 225 bps –

well above long-term average of 60 bps

• A-REIT yield very attractive relative to other major global REIT markets on both absolute yield and relative spread to 10 year bonds • a key reason for strong inflows into A-REITs from global investors

• High correlation with movement in bond yields – A-REITs could come under short-term pricing pressure if bond yields move up

Source: JPMorgan, Bloomberg

A-REIT SPREADS

2.0%

4.0%

6.0%

8.0%

10.0%

12.0%

14.0%

Jun-0

0

Jun-0

1

Jun-0

2

Jun-0

3

Jun-0

4

Jun-0

5

Jun-0

6

Jun-0

7

Jun-0

8

Jun-0

9

Jun-1

0

Jun-1

1

Jun-1

2

Jun-1

3

Jun-1

4

Jun-1

5

10 Yr AU Bond Yield A-REIT EPU Yield A-REIT DPU Yield

23

SUMMARY

Australia’s economic growth to remain below trend

Wall of money chasing real estate assets, especially non-residential assets will continue

Biggest challenge for investors will be finding attractive investment opportunities in a competitive market place

Industrial and real estate related social infrastructure to outperform

Seniors living sector is expected to offer significant investment opportunities

Wide divergence in performance of Australia’s housing sub-markets to continue

Momentum in the Sydney and Melbourne residential markets is set to slow

Strong return from A-REITs in FY15 unlikely to be repeated – move back to long-term average

Investors need to identify and quantify the risk in their real estate portfolios and focus on the underlying real estate fundamentals

“This time it’s different” does not abolish the real estate cycle

24

FOLKESTONE’S FOCUS IN FY16

Specific investment opportunities rather than focusing on top-down sector calls

focus on mispriced assets;

where we can add value;

Look to manufacture ‘core’ product rather than relying on competition lender process

Focus on early learning, particularly developing centres within 15km radius of CBDs and outer growth corridors and look for

opportunities in the seniors living sector

Maintain conservative leverage levels and structures in our income and development funds

Continue to stress test assets under various interest rate scenarios

25

REAL ESTATE IQ

Register at:

www.folkestone.com.au/real-estate-iq/

26

DISCLAIMER:

This paper has been published for information purposes only. The information contained in this paper is of a general nature only and does not constitute financial product

advice. This presentation has been prepared without taking account of any person's objectives, financial situation or needs. Because of that, each person should, before

acting on this presentation, consider its appropriateness, having regard to their own objectives, financial situation and needs. You should consult a professional investment

adviser before making any decision regarding a financial product.

In preparing this presentation the author has relied upon and assumed, without independent verification, the accuracy and completeness of all information available from

public sources or which has otherwise been reviewed in preparation of the paper. The information contained in this paper is current as at the date of this paper and is subject

to change without notice. Past performance is not an indicator of future performance.

Neither Folkestone Limited, nor any of their associates, related entities or directors, give any warranty as to the accuracy, reliability or completeness of the information

contained in this paper. Except insofar as liability under any statute cannot be excluded, Folkestone Limited and its associates, related entities, directors, employees and

consultants do not accept any liability for any loss or damage (whether direct, indirect, consequential or otherwise) arising from the use of this paper.

If a product managed by Folkestone Limited or its associates is acquired, Folkestone Limited or its associates and related entities may receive fees and other benefits. The

author of this paper does not receive commissions or remuneration from transactions involving the financial products mentioned in this paper.

DIRECTORY

Folkestone Limited

ASX Code: FLK

Website: www.folkestone.com.au

ABN: 21 004 715 226

Level 12, 15 William Street

Melbourne Vic 3000

T: +61 3 8601 2092

Level 10, 60 Carrington Street

Sydney, NSW 2000

T: +61 2 8667 2800

Board of Directors:

Garry Sladden – Non-Executive Chairman

Mark Baillie – Non-Executive Deputy Chairman

Greg Paramor – Managing Director

Ross Strang – Non-Executive Director

Company Secretary:

Scott Martin

Investor Relations:

Lula Liossi

T: +61 3 8601 2668

Email: lliossi@folkestone.com.au

Registry:

Boardroom Pty Limited

PO Box R67, Royal Exchange NSW 1223

Telephone: 1300 131 856 or +61 2 9290 9600

E-mail: enquiries@boardroomlimited.com.au

Website: www.boardroomlimited.com.au