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  • WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    Walter Scott & Partners LtdCharles Macquaker and Francis Sempill

  • WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    Investments in the Walter Scott Global Equity Fund (ARSN 112 828 136) and Walter Scott Global Equity Fund (Hedged) (ARSN

    Important information

    129 574 447) (Funds) are offered by Macquarie Investment Management Limited ABN 66 002 867 003 AFSL No. 237492 (MIML). In deciding whether to acquire or continue to hold an investment in the Funds, investors should consider the current Product Disclosure Statement (PDS) which is available from us. Applications can only be made on the application form contained in thecurrent PDS. The information in this presentation is provided for the use of asset consultants, research companies and licensed financial advisers only. This information must not be passed on to retail clients for the purposes of recommending an investment in theFund or any other financial product or class of products. Investments in the Funds are not deposits with or other liabilities of Macquarie Bank Limited ABN 46 008 583 542 (MBL) or of any other Macquarie Group company and are subject to investment risk including possible delays in repayment and loss ofany other Macquarie Group company and are subject to investment risk, including possible delays in repayment and loss of income or principal invested. Neither MBL nor any other member company of the Macquarie Group guarantees the performance of the Funds or the repayment of capital from the Funds or any particular rate of return. Except for MBL, any Macquarie entity referred to in this presentation is not an authorised deposit-taking institution for the purpose of the Banking Act 1959 (Cth). That entitys obligations do not represent deposits or other liabilities of MBL. MBL does not guarantee or otherwise provide assurance in respect of the obligations of that entity unless noted otherwisenot guarantee or otherwise provide assurance in respect of the obligations of that entity, unless noted otherwise. Past performance is not a reliable indicator of future performance. You should not base your decision to invest solely upon pastperformance information.

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  • WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    OVERVIEW

    Firm overview

    Specialist global equity managerp g q y g

    Founded in 1983

    $A49.4 billion* under management $A3.8 billion for Australian clients

    B d i Edi b h S tl dBased in Edinburgh, Scotland

  • WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    OVERVIEW

    Investment Management Years with

    Experience of team

    Name Position (Title) Experience Company

    Ian Clark Director 48 years 29 years

    Dr. Kenneth J. Lyall Chairman 28 years 28 years

    Jimmy Smith Director 28 years 28 years

    Charles E. Macquaker Director, Investment Manager 20 years 20 years

    Rodger H. Nisbet Deputy Chairman 18 years 18 years

    Ian Howie Investment Manager 18 years 18 years

    Hilda West Investment Manager 16 years 16 years

    Jane Henderson Managing Director 16 years 16 years

    Roy Leckie Director, Investment Manager 16 years 16 years

    Keith Bilton Senior Manager 15 years 15 years

    Russell Robles-Thome Investment Manager 11 years 11 yearsg y y

    Francis Sempill Investment Manager 10 years 10 yearsSource: Walter Scott. 30 June 2012

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  • WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    INVESTMENT STRATEGY

    Investment philosophy

    Statement Company wealth generation drives investor returnStatement

    Approach

    Company wealth generation drives investor return

    Bottom-up, fundamental, research driven

    Objective Real returns over the long term

    Target Companies capable of sustainable wealth generation

    Compound growth requires patience.

    Walter Scott take a fundamental approach and focus on companies capable of compounding shareholder wealth through long-term earnings growth

    Compound growth requires patience.

    5

  • WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    INVESTMENT STRATEGY

    Research process

    Target Portfolio ofInvestment gCompanies 40-60 stocks*Universe

    Research companies capable of 20 per cent wealth generation per annum.

    Intensive financial analysis; seven areas of investigation

    Unanimous team decision.Valuation.

    *Global and EAFE portfolios typically hold between 40-60 stocks while Emerging Market portfolios can hold up to 100 stocks.

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  • WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    INVESTMENT STRATEGY

    Seven areas of investigation

    Market position, sustainable Marketability Product/franchise

    margins Competitive structure, industry

    dynamics C t l f d ti Control of destiny Cashflow, cash return on

    investment Accounting balance sheet working

    IndustryManagement

    Accounting, balance sheet, working capital

    Experience, track record Free float, trading volumeg

    Competitive positionFinancial control

    Profitability

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  • WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    INVESTMENT STRATEGY

    Investment decision

    Buy Unanimous team decision

    Sell Single dissenter

    8

  • WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    INVESTMENT STRATEGY

    Sell criteria

    Fundamental Breakdown of purchase rationale

    Risk control

    Breakdown of purchase rationale

    Automatic review at five per cent single stock exposure

    Performance

    Valuation

    Replacement New idea

    9

  • WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    PERFORMANCE

    Portfolio % MSCI World ex Aus %

    Performance

    Simple return:

    Q2 2012 -3.8 -4.1

    Year to date 6.6 6.0

    One year 4.0 -0.5

    Compound annual growth rate:

    Three years 2.6 2.4

    Five years -1.8 -6.7

    Si i ti (18 M h 2005) 2 2 0 8Since inception pa (18 March 2005) 2.2 -0.8

    Source: Macquarie, Walter Scott, MSCI. As at 30 June 2012. Performance after fees with dividends reinvestedPast performance is not a reliable indicator of future performance. Please refer to the appendix for important information

  • WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    As of 30 June 2012 PERFORMANCE

    Growth of unit value - Since inception

    Performance

    117120

    130

    140

    117

    94100

    110

    94

    80

    90

    Walter Scott Global Equity Fund MSCI World Ex- Australia

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    Source: Walter Scott, MSCI. Sector and regional distribution are subject to change and may not be representative of future portfolio composition. Please refer to the appendix for important information.

  • WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    As of 30 June 2012 PERFORMANCE

    Stock performance

    Company Sector Country Capital return %Co pa y Secto Cou t y Cap ta etu %Top five:

    TJX Cos Inc Consumer Discretionary United States 33.0

    Essilor Healthcare France 31.4

    I dit C di ti S i 26 0Inditex Consumer discretionary Spain 26.0

    CR Bard Healthcare USA 25.7

    Novo Nordisk Healthcare Denmark 25.7

    Bottom five:

    Morrisons Consumer Staples United Kingdom -17.7

    China Shenhua Energy China -19.6

    Flir Systems Information technology USA -22.2

    Tesco Consumer staples United Kingdom -22.4

    Automatic Data Processing Inc Information Technology United States -22.8

    S W lt S tt MSCI P f i f i th t 30 J 2012

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    Source: Walter Scott, MSCI. Performance is for six months to 30 June 2012.Top ten equity holdings are provided for informational purposes only and should not be deemed as a recommendation to purchase or sell the securities mentioned. This portfolio is actively managed, therefore holdings may not be current. Walter Scott and others affiliated with it, may hold positions in or may seek to perform investment banking services for the companies listed.

  • WALTER SCOTT & PARTNERS LIMITEDWALTER SCOTT & PARTNERS LIMITEDMACQUARIE PROFESSIONAL SERIESMACQUARIE PROFESSIONAL SERIES

    As of 30 June 2012 PERFORMANCE

    Distribution

    CLiquiditySectors Geography

    Consumer discretionary

    13.1%

    Utilities2.7%

    Liquidity1.3%

    Materials6.9%

    Healthcare

    Liquidity1.3%

    Emerging Markets

    5.5%Canada1.7%

    Asia Pacific ex Japan

    g y

    Consumer staples13.6%

    11.6%

    United States45.0%

    Japan15.1%

    p4.6%

    Energy11.5%

    Information technology

    Telecom services

    1.2%

    Financials6.7%

    Industrials7.0%

    technology24.5% Europe ex UK

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