Business SummaryWashington H. Soul Pattinson and Co. Limited (SOL) is a diversified investorin basic commodities such as building products, coal, equities,telecommunications, financial services and pharmaceuticals in Australia. SOLhas four main operations, namely, investment, coal mining, copperprocessing and consulting.

Investment Portfolio: As at 31 January 2012, the market value of SOLsinvestment portfolio, including controlled entities and associates, was$4.42billion. Excluding controlled entities and associates, the market value ofthe listed investment portfolio was $424.8 million.

Controlled Entities: Major controlled entities include (i) New HopeCorporation (NHC, 59.7%) - coal mining exploration; (ii) CopperChem Limited(93.4%) - producer of copper sulphate and copper concentrate; (iii) PittCapital Partners Limited (PCP, 100%) - corporate advisory company focusingon mergers and acquisitions, strategic advice, equity capital markets, privateequity, restructuring and debt advisory work; and (iv) Souls Private EquityLimited (SOE, 100%) - investment company focusing on unlisted, small andmid-market investments.

Associated Entities: Major associated entities include (i) AustralianPharmaceutical Industries Limited (24.6%) - pharmaceutical wholesaler; (ii)Brickworks Limited (44.5%) - manufacturer of clay products; (iii) CloverCorporation Limited (28.6%) - refinement and processing of natural oil; (iv)Ruralco Holdings Limited (23.5%) - rural supplies and services; (v) TPGTelecom Limited (26.9%) - telecommunications and internet provider; and (vi)BKI Investment Company Limited (BKI) (13.6%) - diversified financialservices.

GICS - Div. Financials

Washington H. Soul Pattinson and Co. Limited

ASX Code: SOL Price: $13.46

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Snapshot

DateMarket Cap.Shares on issue12 Month High12 Month Low

10 July 2012$3,222m239.4m$14.74$11.16

Investment FundamentalsFYE 30 Jul 2008A 2009A 2010A 2011A

Profit $m 113.1 224.7 181.6 161.2Profit (norm)* $m 90.8 1,112.7 218.3 363.9

EPS* ¢ 47.4 94.2 76.1 67.6EPS Growth % 14.0 98.6 -19.2 -11.2P/E* x 28.4 14.3 17.7 19.9P/E Relative % 1.2 1.0 1.4 1.4

DPS ¢ 30.0 57.0 46.5 40.0Yield % 2.2 4.2 3.5 3.0Franking % 100.0 100.0 100.0 100.0* Adjusted for unusual itemsSource: Aspect Huntley historical financials

Share Price Chart

Total Return on $10,000 Investment

Profit & Loss ($M)2007A 2008A 2009A 2010A 2011A

Sales Revenue 761 631 584 686 611Total Revenue ex. Int. 804 662 3,055 810 1,210EBITDA 184 212 1,626 268 515Depreciation & Amort. -82 -63 -31 -40 -42Goodwill Amortisation -- -- -- -- --EBIT 102 149 1,595 228 474Net Interest 23 22 168 115 120Profit Before Tax 126 171 1,763 344 593Income Tax -33 -36 -799 -89 -238Outside Equity Int. -60 -9 -739 -73 -194Profit after Tax 99 113 225 182 161Significant Items after Tax 31 -22 888 37 203Reported Profit after Tax 130 91 1,113 218 364Preferred Dividends -- -- -- -- --

Cash Flow ($M)2007A 2008A 2009A 2010A 2011A

Receipts from Customers 897 673 627 729 618Funds from Operations 92 101 238 197 114Net Operating Cashflow 119 126 266 -329 221Capex -127 -60 -128 -96 -92Acquisitions & Investments -158 -106 -2,304 -178 -370Sale of Invest. & Subsid. 413 34 27 882 424Net Investing Cashflow 143 -133 44 606 -55Proceeds from Issues 6 0 10 14 5Dividends Paid -165 -101 -125 -412 -194Net Financing Cashflow -166 -131 -111 -393 -188Net Increase Cash 95 -138 198 -116 -23Cash at Beginning 78 173 34 229 110Exchange Rate Adjust. -- -1 -4 -3 -8Cash at End 173 34 229 110 80

Ratios and Substantial Shareholders2007A 2008A 2009A 2010A 2011A

Profitability RatiosEBITDA Margin % 24.20 33.52 278.36 39.10 84.29EBIT Margin % 13.46 23.56 273.07 33.29 77.45Net Profit Margin % 13.04 17.92 38.47 26.48 26.36Return on Equity % 6.28 7.20 8.50 6.53 5.73Return on Assets % 4.97 6.16 6.00 5.64 4.83

Debt/Safety RatiosNet Debt/Equity % -3.85 -0.28 -73.52 -45.13 -50.17Interest Cover x -4.38 -6.63 -9.52 -1.98 -3.95

Top 5 Substantial ShareholdersBrickworks Ltd 42.8%Perpetual Limited and subsidiaries 12.3%

Balance Sheet ($M)2007A 2008A 2009A 2010A 2011A

Cash & Equivalent 173 34 2,848 1,765 2,008Receivables 112 43 46 56 136Inventories 27 34 45 53 75Other Current Assets 431 356 63 70 78Current Assets 744 474 3,002 2,521 2,296Prop. Plant & Equipment 385 328 416 459 776Intangibles 76 15 8 7 56Other Non-Current Assets 443 363 68 75 84Non-Current Assets 1,896 1,852 1,943 1,767 2,179Total Assets 2,639 2,325 4,945 4,288 4,476Interest Bearing Debt 91 29 34 41 44Other Liabilities 402 281 1,084 427 518Total Liabilities 493 309 1,117 468 562Net Assets 2,147 2,016 3,827 3,820 3,914Share Capital 33 33 33 33 33Reserves 792 428 769 810 570Retained Earnings 754 794 1,841 1,937 2,210Outside Equity Int. 568 445 1,184 1,039 1,101Total Shareholders Equity 2,147 2,016 3,827 3,820 3,914

Current Analyst Recommendations *

* Source: Morningstar. This chart shows the spread of recommendations from thosebroker analyst's in Australia with research coverage of this stock.

Principals & DirectorsPrincipals

Company Secretary Mr Ian David Bloodworth

Directors

Mr David John Fairfull(Non-Executive Director)Mr Michael John Millner(Non-Executive Deputy Chairman)Mr Robert Dobson Millner(Non-Executive Chairman)Mr Peter Raymond Robinson(Chief Executive Officer)Mr David Wills(Non-Executive Director)Mr Robert Westphal(Non-Executive Director)Mr Thomas Charles Dobson Millner(Non-Executive Director)

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