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6 China is going to be bigger, stronger and more robust than any market in the world Shultz, Apr Habitual Delicious Growing penetration of beverage occasions A little addictive Social 47 Restaurants/Mill' Consuming Class KFC Australia McDonalds US Starbucks US KFC China Starbucks China Source: Company disclosures & Census data. Image: Notes: Consuming Class is defined as the entire population for Australia and the US (24M and 301M). For China it is defined as 600M people, v the 1.1Bn population. RP044 Magellan 6

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8 Aveo Group Aveo Group (ASX: AOG) is the only ASX 200 listed company focussed solely on retirement. The company develops and operates retirement villages and aged care facilities Investment opportunity: Shares have materially de-rated since June 2017 negative Four Corners/Fairfax Media coverage of retirement charging model Business model appears undisrupted, sales rates are recovering Target price: >$4.1 per share or c. 60% upside Shares historically traded above tangible-nav which today is $3.3 per share and will be >$4.1 per share in two years time Return on capital is improving therefore book value target price may be conservative Similar Lead Lease retirement portfolio sold to Dutch pension fund in October 2017 at a small premium to carrying value The company will re-start buying-back shares in next 6 months following Brisbane office building sale Risks: Unit sales rates may not recover to 1H17 levels Lower house prices Regulatory change Further negative press 14,000 12,000 10,000 8,000 6,000 4,000 2,000 0 Retirement Village Operators by Units Managed 12,433 11,222 9,478 5,100 Lend Lease Aveo Stockland Retire Australia 838 Ingenia

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10 WD-40 Company A brand management company: buy a commodity sell a brand Household brand Consistent organic growth Asset light business model High cash flow generation High return on capital Strong balance sheet Source: Bloomberg, VGI Partners

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12 Global Construction Services (ASX: GCS) $2.00 $1.80 $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $- Exchange Ticker Current share price 52 week high / low Market Capitalisation Net Cash (2018F) Enterprise Value ASX GCS.ASX 0.81 $0.48 / $0.90 $171m $32m $139m Future Generation Investment Forum

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14 KT Corporation Korean Broadband Leader Korea s fixed line Telco can become a cash machine Irrational extrapolation % Fiber connections of total broadband Multiple ways of winning Source: OECD December 2016 Broadband Statistics report EV/Sales vs sector: KT de-rated materially Margin of safety Correlation cluster Source: Factset Confidential / 14

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16 HRL Holdings (HRL.AX) HRL Holdings is a diversified environmental and geotechnical service provider with offices and laboratory facilities across Australia and New Zealand. FY17 FY18E HRL Analytica Combined HRL Analytica Combined Revenue Gross Profit % margin 50% 51% 50% 51% 51% 51% EBITDA % margin 13% 37% 20% 15% 37% 22% Current Valuation* No. of Shares M Current Price $0.10 Market Cap 49.6 Enterprise Value 53.5 FY18E EV/EBITDA 7.3 *Includes all new scrip issued and earnouts post acquisition Source: HRL Presentation 17/10/17 pro-forma earnings forecast, $m AUD Expansion of Analytica operations in Australia Blue-sky investment 26% interest in CAIQTest Sound balance sheet

17 Capitol Health (CAJ.AX) Capitol Health is a leading provider of diagnostic imaging services to the Australian healthcare market. Current Valuation No. of Shares 804 M Current Price $0.305 Market Cap 245 Enterprise Value 206 FY19E EV/EBITDA 8.2 FY19E PE 15.1 FY17 FY18 Guidance FY19 Centennial Est. Revenue EBITDA % margin 13% 18% 19% Diagnostic Imaging market improvement (c. 5% growth) Acquisition pipeline (35-40m net cash, EV/EBITDA multiple 5.5x) Management executing on strategy Source: CAJ AGM Presentation Post-announcement of Integral Diagnostic (IDX.AX) takeover: CAJ FY17 CAJ FY18E IDX FY18E Combined FY18E Combined FY19E Revenue EBITDA Underlying margin 13% 19% 20% 21% 21% NPAT Underlying MC ($M) EV ($M) PE EV/EBITDA

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19 Short squeeze? Cheap Fast growing Innovative & Hated? 19 Focussed Vigilant Agile

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21 Brain Resource Company (BRC) Market and product need Mental health illness is epidemic. BRC s IP assets (which include the world s largest brain function database) directly address the mental health fault-line, which costs >US$200bn annually in the US, and which is ruining the economics of the Australian insurance industry (APRA data). Failure => restructure BRC has long, deep and very costly (c$70m R&D) roots in brain science. Enjoyed early success with ispot, and adoption of MBS in USA by five insurers and 28 bluechip corporates. More recently, commercialisation of IP assets has failed leading to a fundamental restructure of the company. New, new BRC all-new management: four execs ex- Amazon, Yodle, Monster, and Private Equity, with deep digital business (SaaS) and marketing credentials. BRC now has a clear and much narrower go-to-market strategy centred on driving adoption/pricing within existing customers in insurance (196 million lives covered) and corporate wellness. Recapitalised, incentivised $10m equity raise and simplified capital structure, via conversion of $14m of (senior) CB securities. Management have been hugely incentivised, via an ESOP (primarily at risk grants) over c20% of diluted capital. Execution is key MBS has a hard science base lacking in competitor offerings, as endorsed by its quality customer base. Now have to reinvest (MBS mobile 2.0/UX/CRM and sales) to drive penetration and yield. Highly scalable SaaS model, capable of supporting a high EV/sales multiple as growth accelerates. BRC: pro-forma capitalisation (A$ millions) 30/09/2017 Pro-forma (1) Cash CB debt Net cash (debt) Equity capitalisation - primary Equity capitalisation - diluted Enterprise value - diluted (1) Pro-forma for $10m capital raise; conversion of CB's 21

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27 ASX: ORG

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