Australian United Investment Company (AUI) investor relations material

Proposed merger overview

• A scheme of arrangement will see all DUI shares not already owned acquired in exchange for new shares, creating a combined entity with about $3 billion in net tangible assets and a diversified portfolio of Australian and international equities.

• DUI shareholders will receive approximately 0.4724 AUI shares for each DUI share held if the scheme is approved and conditions are met.

Benefits and disadvantages

• Expected benefits include increased market cap (~$2.4B), greater liquidity, portfolio flexibility, and estimated 21% cost savings.

• Fully franked dividends of 37 cents per share and a special 8 cent dividend for four years are expected to be maintained barring unforeseen events.

• Risks include dilution of existing holdings, integration challenges, potential unrealized cost savings, exposure to international investments, and $3.1M in transaction costs.

Shareholder and board support

• The Ian Potter Foundation (IPF), the largest shareholder in both entities, supports the merger and has granted AUI an option to acquire more DUI shares if a competing bid arises.

• Three shareholder resolutions related to the merger and IPF's involvement were presented, with the board unanimously recommending approval.