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Ord Minnett Research Friday, 12 June 2009

Key indices Highlights this week


The benchmark S&P/ASX 200 had a positive
Index 12-Jun-09 5-Jun-09 % Change week, spurred on by encouraging economic
S&P/ASX 200 4068.5 3971.2 2.45% data both at home and from abroad. Market
All Ordinaries 4066.8 3969.0 2.46% volumes were also higher than in previous
months, indicating an improving outlook for
Sector Indices (GICS) 12-Jun-09 5-Jun-09 % Change
investor sentiment. On the economic front, the
S&P200 Cons. Discr 1325.8 1293.4 2.50%
S&P200 Materials 11144.7 10915.7 2.10%
Australian employment landscape remains
S&P200 Telecom Serv. 1143.3 1109.7 3.03% resilient, with only a net 1700 full-time jobs
S&P200 Fin.-x-Prop Trusts 4270.7 4133.8 3.31% being lost in May. The other major economic
S&P200 Cons. Staple 6621.3 6581.7 0.60% news came from China, where fixed asset
S&P200 Financials 3734.9 3614.3 3.34% investment continues to grow strongly as the
S&P200 Health Care 7852.3 7520.3 4.41% full weight of the US$586 billion stimulus
S&P200 Industrials 3108.2 3067.9 1.31% package is starting to be felt.
S&P200 Prop. Trusts 782.3 756.1 3.46%
S&P200 Utilities 4144.0 4204.3 -1.43% Over 90% of OZ Minerals Limited (OZL) shareholders
S&P200 Energy 15295.4 14961.7 2.23% approved Minmetals’ offer to buy $1.4 billion worth of the
S&P200 Info Tech 515.6 525.4 -1.86% Australian miner’s assets. The Chinese company said it would
complete the deal within one week and set up a new Australian
International Indices 11-Jun-09 4-Jun-09 % Change company named Minerals and Mining Group Limited. Earlier in
NASDAQ (US) 1862.4 1850.0 0.67% the day OZ Minerals reaffirmed its commitment to the Minmetals
Dow Jones Industrial (US) 8770.9 8750.2 0.24% deal in the face of speculation of differing recapitalisation
S&P 500 (US) 944.9 942.5 0.26% proposals. At the same time Minmetals had increased its offer
FTSE 100 (UK) 4461.9 4386.9 1.71% for the Australian company by 15%, or US$180 million.
CAC 40 (France) 3334.9 2589.2 0.69% Qantas Airways Limited (QAN) announced that the H1N1
Hang Seng (HK) 18791.0 18502.8 1.56% virus, or swine flu, has affected recent trading, particularly for
Nikkei 225 (Japan) 10059.6 9669.0 4.04% Jetstar’s Japanese operations. Jetstar has made significant
DAX (Germany) 5107.3 5064.8 0.84% changes to its Japanese schedule to cope with the drop in
Intraday prices as at 12/06/09
demand in the market. QAN also noted that volatility in the
airline's markets and costs remain and it has deferred $1 billion
in new aircraft deliveries over the next 12 months.

Key indices 1 Changes in recommendation/ 2 Companies going ex-dividend 5 Guide to Ord Minnett 8
new stock coverage recommendations
Highlights this week 1-2 Market movements 6
Company snapshots 3-4 Glossary 8
Diary of Events 7
Ord Minnett branches 9
Highlights this week
Initiations and Changes in Recommendations Australand Property Group (ALZ) announced that the group
has entered into a joint venture with privately owned St Hilliers
ASX Recommendation to build $300 million of public housing in Victoria. The JV will
redevelop public housing in Carlton, in inner city Melbourne.
Company Code Old New Risk
The partners expect to finalise documentation by the end of
JB HiFi Ltd JBH Buy Hold Medium July.
Salmat Limited SLM Initiation Accumulate Medium Coffey International Limited (COF) updated investors, saying
Incitec Pivot Limited IPL Accumulate Hold Medium that it expects full-year operating EBITDA to be in the range of
$54 to $57 million. COF noted that it had experienced a
JB HiFi Ltd JBH Buy Hold Medium
significant drop in revenue across its Consulting and Project
Salmat Limited SLM Initiation Accumulate Medium
Management divisions in the March quarter after a strong
performance in the first six months of the financial year.
Keybridge Capital Limited (KBC) brought forward a
Mirvac Group (MGR) announced the successful completion of
preliminary review of the year-end carrying value of its
the $922 million institutional component of its capital
investments portfolio, detailing impairment provisions of around
raising. The $178 million retail component of the capital raising
$120 million would be required. The expected provisions are
is now fully underwritten. MGR noted that the placement and
spread across all of its asset classes, but predominantly apply
institutional entitlement offer were heavily oversubscribed.
to shipping and property transactions.

Downer EDI Limited (DOW) reaffirmed full year guidance,


expecting to deliver earnings growth at the bottom end of a Friday’s Intraday prices are used in the company news mentioned
range of 10%-15% above last year's $165.8 million net profit. this week. The table shows total return (%) over the week/year.
DOW noted that work in hand at March 31 was $13.5 billion Last Week Year
with a steady order book. Downer has also refinanced a Description Code AUD Return % Return %
significant portion of its debt maturing next fiscal year. OZ Minerals OZL 1.01 13.56 -63.05
CSL Limited (CSL) announced that the group plans to buy Qantas Airways QAN 2.27 3.65 -31.21
back up to $1.6 billion of its stock over coming months after Keybridge Capital KBC 0.07 -19.57 -90.39
ending its proposed Talecris acquisition. CSL and Talecris Downer EDI Limited DOW 4.93 0.00 -26.31
Biotherapeutics agreed to end their arrangement for the CSL Limited CSL 30.51 5.28 -21.77
purchase of North Carolina-based Talecris for US$3.1 billion Origin Energy ORG 15.07 0.47 -1.91
because of opposition from the Federal Trade Commission on OneSteel Limited OST 2.82 4.44 -57.50
antitrust concerns. CSL plans to buy back about 54.9 million, or JB Hi-Fi Limited JBH 14.89 10.46 41.14
about 9% of its outstanding stock at an assumed price of $29 a Australand Property ALZ 0.45 -4.30 -60.22
share. Coffey International COF 2.03 -3.33 -0.98
Mirvac Group MGR 1.19 -1.83 -54.28
Origin Energy Limited (ORG) flagged that its underlying profit Source. Iress
for the year is likely to fall below the previously forecast range
of 20% to 25% higher than last year’s figure. ORG attributed
the downgrade to lower earnings guidance from its majority
owned Contact Energy resulting from adverse hydrology
conditions in New Zealand.

OneSteel Limited (OST) said that its Chief Financial Officer


Tony Reeves will leave the company in December. Reeves
joined OneSteel in his current role in October 2001. A search to
identify a new CFO will start immediately and include both
internal and external candidates.

JB Hi-Fi Limited (JBH) announced that, given the recent


strong performance, the group expects to exceed profit
expectations for the year to 30 June. JBH is now expecting net
profit of around $92 million, up from the previous guidance of
$87 million. JBH noted that like-for-like sales grew 10.6% to the
end of May, and that its gross margin would be similar to last
year’s.

Friday, 12 June 2009 Page 2


Company Snapshots
The following selected comments are not personal securities recommendations. You should contact your Adviser
to assess their suitability for your individual portfolio.

Salmat Limited (SLM $3.80) - Initiation


Recommendation: Accumulate
Risk Rating: Medium
Initiation – Low earnings hurdle
ƒ We initiate coverage of Salmat (SLM) with an Accumulate, Medium risk
recommendation and valuation of $4.00.

ƒ SLM is a leader in customer communication, specialising in outsourced essential mail


(65% market share), catalogue distribution (58%) and call centres (24%). Each
division is economically resilient and expected to show solid growth in 2009 & 2010,
benefiting from new contracts and acquisition synergies.

ƒ Changes to industry dynamics in essential mail and catalogue distribution provide


potentially significant upside. SLM’s acquisition of HPA consolidated the 2 largest Year to Jun ‘08A ‘09F ‘10F
players in the essential mail industry and PMP’s operating issues have reduced
Norm NPAT ($M) 28.8 40.6 48
competition in catalogue distribution. Improved pricing power is beginning to play out
in contract renewals. Norm. EPS (c) 20.1 25.5 30.2

ƒ SLM’s margins are expanding, return on capital is improving and consensus earnings Norm. P/E (x) 18.7 14.7 12.5
growth is largely driven by highly visible, low-risk cost synergies (HPA acquisition). Net Yield (%) 4.9 5.3 6.0
Consequently the earnings outlook for SLM is strong.
Dividend (c) 18.5 20.1 22.7
ƒ Our valuation of $4.00 implies a 2010 PE of 13.2x, below SLM’s long term average of
Franking (%) 100 100 100
16.2x. Accumulate for; resilient earnings streams, upside earnings risk, beneficial
change to industry dynamics, 6% fully franked yield and market multiple PE (ASX
300 Industrials).

CSL Limited (CSL $30.74)


Recommendation: Accumulate
Risk Rating: High Price Performance

Talecris merger terminated and buyback announced. Business as usual. 40


A$ 30
ƒ CSL has mutually agreed with Talecris to terminate their merger, given the
uncertainty and costs of pursuing the FTC litigation process. We expect the vendors 20
may not have been willing to waive the US$75 million break fee and/or grant further Jun-08 Sep-08 Dec-08 Mar-09 Jun-09

exclusivity to CSL when the legal process is so uncertain in terms of outcome and CSL.AX share price (A$)
timing. In this light, terminating the deal seems logical, despite CSL believing it has a ASX100 (rebased)

strong case.
Year to Jun ‘08A ‘09F ‘10F
ƒ On a cash basis, the favourable currency benefit on the equity raising proceeds
offsets the break fee and transaction costs. However, CSL’s 5-year plasma supply Norm NPAT ($M) 701.8 998.7 1193.1
contract with Talecris remains on-foot despite terminating the merger agreement.
Norm. EPS (c) 126.8 166.8 207.5
ƒ It is possible the FTC may initiate a new investigation into anti-competitive behavior
in the plasma industry, though it likely depends on the strength of the evidence in the Norm. P/E (x) 24.1 18.3 14.7
FTC’s possession (especially on signaling). We rate this as a relatively low Net Yield (%) 1.5 1.9 2.3
probability, but cannot rule it out.
Dividend (c) 46.0 59.5 70.7
ƒ CSL also announced an on-market share buyback of up to 54.9 million shares. We
assume a $1.6 billion buyback over 9 months, at an average share price of $32.50, Franking (%)
50.0 16.3 33.0
resulting in ~5% earnings per share (EPS) accretion in 2010 and ~7% accretion in
2011. At the current share price, that implies CSL is trading on a 12-month forward
PE of ~14.9x, which we think is attractive given its strong EPS growth outlook (EPS
growth is 24% in 2010, 10% in 2011 and 12% in 2012).

Friday, 12 June 2009 Page 3


Downer EDI (DOW $4.99)
Recommendation: Accumulate Price Performance
Risk Rating: High
7
Investor Day: turnaround progressing on a number of fronts
A$
5
ƒ At a well-attended Investor Day, DOW provided the market with an update on the
3
progress of recently announced initiatives to reposition the Group and drive greater
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09
shareholder value. There was little in the way of material new news, but management
DOW.AX share price (A$)
did take the opportunity to reiterate 2009 guidance (“double-digit growth in net
ASX100 (rebased)
profit”). We remain comfortable with our 8% growth forecast. Work in hand stood at
$13.5 billion as at 31 March 2009.

ƒ At the divisional level - Rail: the Public Private Partnership project remains on track Year to Jun ‘08A ‘09F ‘10F
and final acceptance of the project's design is still expected in July 2009; demand for
freight locomotives has softened recently, but the passenger market remains Norm NPAT ($M) 165.8 179.5 181.5
resilient. Works: the core Aust and NZ businesses are performing well although the
Norm. EPS (c) 44.3 47.6 47.2
recently acquired UK businesses will be loss-making in 2009 (management hope
they will break even in 2010). Mining: DOW has installed new management in this Norm. P/E (x) 11.1 10.3 10.4
division; operating conditions remain reasonably tough, although management are
Net Yield (%) 5.2 5.5 5.5
now starting to see early evidence of improving confidence among its key customers.
Engineering: The division is already benefiting from early-adoption of a number of Dividend (c) 25.5 27.0 27.0
cost saving initiatives and this should help maintain margins at current strong levels.
Franking (%)
0.0 0.0 0.0
ƒ We see at least two potential positive catalysts in the near term – acceptance of the
PPP project’s design (July) and possible success on the Melbourne train franchise
(July/August). At current levels, we can identify valuation support and we retain our
Accumulate recommendation with a December 2009 price target of $5.68.

Fortescue Metals Group (FMG $0.00)


Recommendation: Lighten Price Performance
Risk Rating: High 12
Froth & Bubble: Share price run looks overdone
A$ 6
ƒ If ever there was a case of froth and bubble, we believe we are seeing it in recent
0
strong upward moves in FMG’s share price.
Jun-08 Sep-08 Dec-08 Mar-09 Jun-09
ƒ Using our consistent NPV analysis, which we apply to all companies in the mining FMG.AX share price (A$)
universe that we cover, to justify the current share price we would need to assume ASX100 (rebased)
that the FMG operations have sanctioned expansions to over 200Mtpa. The initial
project was for targeted production of 55Mtpa, and is still to reach capacity. The Year to Jun ‘08A ‘09F ‘10F
company, as confirmed in the MarQ09 production report, is running at closer to
35Mtpa rate, unit costs are well above target, and unit price achievement is heavily Norm NPAT ($M) 32.1 -301.5 239.2
discounted against benchmark. It hasn’t proved stage 1 yet. Norm. EPS (c) 1.1 -10.8 7.8
ƒ Many have taken the US$5.8B payment by BHP as consideration to lift their Norm. P/E (x) 371.4 -38.9 53.9
deemed interest in the JV from 45% to 50% and inferred that this means the
Net Yield (%) 0.0 0.0 0.0
Pilbara JV is worth US$116B (US$5.8B divided by 0.05). We believe this is
fallacious, as it implies a payment of US$314/t of production capacity, a massive Dividend (c) 0.0 0.0 0.0
premium to peak cycle construction costs of US$130/t. We believe a more
Franking (%)
accurate approach is to look at the production ratios of the joint venture, which 0.0 0.0 0.0
leads to a transaction valuation of US$166/t.

ƒ Using this figure and applying it to FMG’s production capacity of 55Mt yields an
implied share price of $2.22 per share, after netting off FMG’s debt. We actually
believe that the lower quality of FMG’s reserves and resources, as evidenced by
the price discounts it suffers, dictates that a more appropriate transaction value is
the construction cost of US$100/t with a 30% premium added for optionality of
expansions. This results in an implied FMG valuation of $1.37 per share, after
netting off FMG’s debt.

Friday, 12 June 2009 Page 4


Upcoming Ex-Dividend
Ex Dividend Dividend Pay Yield Franking
Company ASX Code A$ Thursday Date Amount Date % %
Count Financial COU 1.48 15-Jun-09 2.0 15-Jul-09 6.76 100
Fisher & Paykel H. FPH 2.40 15-Jun-09 8.2 6-Jul-09 5.35 0
RR Australia Limited RRA 0.76 18-Jun-09 2.9 23-Jul-09 6.34 100
Metcash Limited MTS 4.30 19-Jun-09 14.0 8-Jul-09 5.58 100
Source: Iress. Please note the list of ex-dividend stocks is a list of companies that have reported ex-dividend dates.
Other companies going ex-dividend may not be included in this list due to the date not reported.

Market movements

Movers during the week (S&P/ASX 200)

A$ Close one Weekly Month Monthly Half Year Yearly Yearly


ASX Code Company Movers Friday week ago % close % Close Qtly % Close %
FMG Fortescue Metals Group Ltd 4.27 3.18 34% 2.94 45% 2.42 76% 9.40 -55%
ROC ROC Oil Company Limited 0.94 0.72 31% 0.63 50% 0.57 66% 2.03 -54%
CIY City Pacific Limited 0.06 0.05 26% 0.08 -19% 0.07 -14% 0.45 -86%
MDT Macquarie DDR Trust 0.17 0.14 26% 0.14 26% 0.05 278% 0.51 -67%
TEN Ten Network Holdings Limited 1.24 1.01 22% 0.93 33% 1.00 24% 1.97 -37%
AWC Alumina Limited 1.74 1.50 16% 1.37 27% 1.08 61% 4.19 -58%
MCW Macquarie Countrywide Trust 0.53 0.46 15% 0.35 52% 0.21 150% 1.03 -49%
GMG Goodman Group 0.43 0.37 15% 0.35 23% 0.64 -34% 3.64 -88%
SGM Sims Metal Management Limited 26.23 23.01 14% 21.66 21% 14.75 78% 35.78 -27%
OZL OZ Minerals Limited 1.01 0.89 14% 0.79 27% 0.55 83% 2.72 -63%

Shakers during the week (S&P/ASX 200)


A$ Close one Weekly Month Monthly Half Year Yearly Yearly
ASX Code Company Movers Friday week ago % close % Close Qtly % Close %
BBP Babcock & Brown Power 0.09 0.11 -12% 0.10 -8% 0.05 77% 0.90 -90%
ERA Energy Resources of Australia 24.34 26.78 -9% 21.90 11% 18.20 34% 22.95 6%
AVG Australian Vintage Ltd 0.24 0.26 -8% 0.36 -32% 0.39 -38% 1.50 -84%
BBI Babcock & Brown Infrastructure 0.08 0.09 -7% 0.12 -34% 0.08 5% 0.86 -91%
VPG Valad Property Group 0.08 0.09 -7% 0.09 -10% 0.05 76% 0.91 -91%
ALZ Australand Property Group 0.44 0.47 -6% 0.47 -7% 0.28 55% 1.12 0%
WYL Wattyl Limited 0.46 0.49 -5% 0.50 -8% 0.62 -26% 1.35 -66%
LGL Lihir Gold Limited 2.97 3.13 -5% 3.10 -4% 2.45 21% 2.86 4%
ELD Elders Group 0.28 0.30 -5% 0.41 -31% 0.76 -63% 1.58 -82%
CSR CSR Limited 1.60 1.69 -5% 1.48 8% 1.42 13% 2.53 -37%
Source: Iress. Prices are intraday Friday.

Friday, 12 June 2009 Page 5


Diary of events for the Week
Monday, 15th June
US - NET LONG-TERM TIC FLOWS, APR

- NAHB HOUSING MARKET INDEX, JUN

NZ - MANUFACTURING ACTIVITY, MAR QTR

Tuesday, 16th June


AUS - RBA MEETING MINUTES, JUN

US - PPI, MAY

- HOUSING STARTS, MAY

- BUILDING PERMITS, MAY

- INDUSTRIAL PRODUCTION, MAY

- CAPACITY UTILISATION, MAY (1315)

EURO AREA - CPI, MAY

UK - CPI, MAY

Wednesday, 17th June


AUS - DWELLING COMMENCEMENTS, MAR QTR

US - CPI, MAY

- CURRENT ACCOUNT BALANCE, MAR QTR

EURO AREA - TRADE BALANCE, APR

UK - BANK OF ENGLAND MEETING MINUTES, JUN

- UNEMPLOYMENT RATE, APR

- AVERAGE EARNINGS EX BONUS, APR

Thursday, 18th June


AUS - RBA BULLETIN, JUN

US - LEADING INDICATORS, MAY

EURO AREA - ECB GOVERNING COUNCIL MEETING. NO INTEREST RATE ANNOUNCEMENT SCHEDULED

UK - RETAIL SALES, MAY

Friday, 19th June

Friday, 12 June 2009 Page 6


Guide to Ord Minnett Recommendations

BUY The stock’s total return (nominal dividend yield plus capital appreciation) is expected to exceed 15% over 12
months.
ACCUMULATE The stock’s total return is expected to be between 5% and 15%. Investors may add to existing holdings, or
initiate holdings on share price weakness.
HOLD The stock is fairly priced, and its total return is expected to be between 0% and 5%.
LIGHTEN The stock’s total return is expected to be less than 0% and possibly down 15%. Investors should consider
selling into share price strength.
SELL The stock’s total return (nominal dividend yield plus capital appreciation) is expected to exceed -15% over
12 months.
RISK ASSESSMENT Classified as High, Medium or Low, denotes the relative assessment of an individual stock’s risk based on
an appraisal of its disclosed financial information, volatility, nature of its operations and other relevant
quantitative and qualitative criteria.

Glossary

ACE – Adjusted common equity FED – US Federal Reserve P&L – Profit and loss statement (income
statement)
APRA – Australian Prudential Regulation FOMC – Federal open market committee
Authority PAX – Passenger
Franking % - The % of the dividend that is
BBSR – Bank bill swap rate franked. pcp – Previous corresponding period.

BOE – Bank of England Gearing – Net debt to shareholders’ equity. PEG – Price earnings ratio / EPS growth

BOJ – Bank of Japn GICS – Global industry clasification standards PER – Price earnings ratio.

CAGR – Compound annual growth rate IBES – International broker’s estimate system PMI – Purchasing Manager’s Index

CAPEX – Capital expenditure IFRS – International financial reporting PPI – Producer Price Index
standards
CDO – Collaterised debt obligation QTD/YTD – Quarter/Year to date
IRR – Internal Rate of Return
CFO – Chief Financial Officer REIT – Real Estate Investment Trust
ISM – Institute of supply management
CMO – Collaterised mortgage obligation ROA – Return on assets
LFL – Like for like (comparable)
cps – Cents per share. ROCE – Return on capital employed
MBS – Mortgage backed security
DDM – Dividend discount model (valuation ROE – Return on equity
technique) MD&A – Management discussion and
ROIC – Return on invested capital
analysis
DPS – Dividend per share, in cents.
RWA – Risk weighted assets
Mkt Cap – The company’s market
DRP – Dividend reinvestment plan
capitalisation. S&P – Standard and Poors (Rating agency)
EBIT – Earnings before interest and tax.
MSCI – Morgan Stanley Captial International Sum-of-the-parts-basis – Valuing the
EBITDA – Earnings before interest, tax Index company’s various assets and liabilities
depreciation and amortisation. separately and then adding them together
Net Present Value – Valuation using
EPS – Earnings per share, in cents. discounted cashflows. TSR – Total shareholder return

EV – Enterprise value NPAT – Net Profit After Tax – before VWAP – Volume weighted average price
abnormals.
F/Y – The company’s month end financial WALE – Weighted average lease expriy
year. OPEX – Operating expense
YLD – Dividend per share divided by the
FCF – Free cash flow market price.

Friday, 12 June 2009 Page 7


Ord Minnett Limited
ABN 86 002 733 048
ASX Market Participant
AFS Licence Number 237121

Head Office
Level 8
NAB House
255 George Street
Sydney NSW 2000
Australia
Tel: (61-2) 8216 6300
Fax: (61-2) 8216 6311

Ord Minnett website: www.ords.com.au

Ord Minnett Branches


Adelaide Bundall, Gold Coast Coffs Harbour Melbourne Tamworth
Level 11 Level 5, 140 Bundall Road Suite 4 Level 23 Suite 3
13 Grenfell Street Bundall QLD 4217 21 Park Avenue 120 Collins Street 344-346 Peel Street
Adelaide SA 5000 Tel: (07) 5557 3333 Coffs Harbour NSW 2450 Melbourne VIC 3000 Tamworth NSW 2340
Tel: (03) 9608 4111
Tel: (08) 8203 2500 Fax: (07) 5557 3377 Tel: (02) 6652 7900 Tel: (02) 6761 3333
Fax: (03) 9608 4142
Fax: (08) 8203 2525 Fax: (02) 6652 5716 Fax: (02) 6761 3104
Caloundra, Sunshine Coast
Newcastle
Brisbane 79-81 Bulcock Street Mackay 41-45 Newcomen Street Wollongong
Level 10 Caloundra QLD 4551 45 Gordon Street 3/55 Kembla Street
Newcastle NSW 2300
Waterfront Place Tel: (07) 5491 3100 Mackay QLD 4740 Cnr Market and
Tel: (02) 4910 2400
1 Eagle Street Fax: (07) 5491 3222 Tel: (07) 4969 4888 Kembla Streets
Fax: (02) 4910 2424
Brisbane QLD 4000 Fax: (07) 4969 4800 Wollongong NSW 2520
Canberra Sydney
Tel: (07) 3214 5555 Tel: (02) 4226 1688
101 Northbourne Avenue
Fax: (07) 3214 5550 Level 8, NAB House Fax: (02) 4226 1604
Canberra ACT 2600
255 George Street
Buderim Tel: (02) 6206 1700 Sydney NSW 2000
Sunshine Coast Fax: (02) 6206 1720 Tel: (02) 8216 6300
84 Burnett Street
Fax: (02) 8216 6311
Buderim QLD 4556
Tel: (07) 5430 4444
Fax: (07) 5430 4400

Disclosure: Ord Minnett is the trading brand of Ord Minnett Limited ABN 86 002 733 048, holder of AFS Licence Number 237121 and an ASX Market
Participant. Ord Minnett Limited and/or its associated entities, directors and/or its employees may have a material interest in, and may earn brokerage
from, any securities referred to in this document. Further, Ord Minnett and/or its affiliated companies may have acted as manager or co-manager of a
public offering of any such securities in the past three years. Ord Minnett and/or its affiliated companies may provide or may have provided corporate
finance to the companies referred to in the report. This document is not available for distribution outside Australia and New Zealand and may not be
passed on to any third party or person without the prior written consent of Ord Minnett Limited.

Disclaimer: Ord Minnett Limited believes that the information contained in this document has been obtained from sources that are accurate, but has not
checked or verified this information. Except to the extent that liability cannot be excluded, Ord Minnett Limited and its associated entities accept no
liability for any loss or damage caused by any error in, or omission from, this document. This document is intended to provide general securities advice
only, and has been prepared without taking account of your objectives, financial situation or needs, and therefore before acting on advice contained in
this document, you should consider its appropriateness having regard to your objectives, financial situation and needs. If any advice in this document
relates to the acquisition or possible acquisition of a particular financial product, you should obtain a copy of and consider the Product Disclosure
Statement for that product before making any decision.

Analyst Certification: The analyst certifies that: (1) all of the views expressed in this research accurately reflect their personal views about any and all
of the subject securities or issuers; and (2) no part of their compensation was, is, or will be directly or indirectly related to the specific recommendations
or views expressed herein.

Friday, 12 June 2009 Page 8