1. Why invest in shares?

2. This presentation is given by a representative of Colonial First State Investments Limited AFS License 232468 (Colonial First State). The presenter does not receive specific payments or commissions for any advice given in this presentation. The presenter, other employees and directors of Colonial First State receive salaries, bonuses and other benefits from it. Colonial First State receives fees for investments in its products. For further detail please read our Financial Services Guide (FSG) available at colonialfirststate.com.au or by contacting our Investor Service Centre on 13 13 36. All products are issued by Colonial First State Investments Limited ABN 98 002 348 352. Prospectuses or Product Disclosure Statements (PDSs) describing the products are available from Colonial First State. The relevant prospectus or PDS should be considered before making a decision about any product. This presentation does not take into account your individual objectives, financial situation or needs. You should assess whether the information is appropriate for you and consider talking to a financial adviser before making an investment decision. The information is taken from sources which are believed to be accurate but Colonial First State accepts no liability of any kind to any person who relies on the information contained in the presentation. Disclaimer

3. Investing in the previous year’s best performing asset class 31-Dec-82International Shares$10,000 31-Dec-83Australian Shares$13,285 31-Dec-84International Shares$12,985 31-Dec-85International Shares$22,100 31-Dec-86Australian Shares$32,184 31-Dec-87Australian Fixed Interest$29,655 31-Dec-88Australian Shares$32,439 31-Dec-89International Shares$38,084 31-Dec-90Australian Fixed Interest$32,333 31-Dec-91Australian Shares$40,335 31-Dec-92Australian Fixed Interest$39,403 31-Dec-93Australian Shares$45,834 31-Dec-94Australian Cash$48,291 31-Dec-95International Shares$58,041 31-Dec-96Australian Shares$61,684 31-Dec-97International Shares$69,227 31-Dec-98International Shares$72,786 31-Dec-99International Shares$85,237 31-Dec-00Australian Listed Property$87,150 31-Dec-01Australian Listed Property$99,873 31-Dec-02Australian Listed Property$111,614 31-Dec-03Australian Listed Property $121,440 Cumulative returns for each year to 31 December 2002. Data based on index returns, all distributions reinvested. Source: UBS Warburg Australia Bank Bill Index (91 day Commonwealth Treasury Note Index pre Jan 1989), UBS Warburg Australian Composite Bond Index 0+ Years (CBBI All Series All Mats Accumulation pre Oct 1989), S&P/ASX 200 Property Accumulation Index (ASX Property Trusts Accumulation Index pre April 2000), S&P/ASX 300 Accumulation Index, (ASX All Ordinaries Accumulation Index pre April 2000), MSCI World Net Index ($A). IRESS, RIMES Asset ClassValue

4. Investing in the previous year’s worst performing asset class 31-Dec-82 Australian Shares $10,000 31-Dec-83 Australian Cash $16,680 31-Dec-84 Australian Shares $18,730 31-Dec-85 Australian Listed Property $26,982 31-Dec-86 Australian Cash $36,540 31-Dec-87 Australian Shares $41,538 31-Dec-88 International Shares $48,965 31-Dec-89 Australian Listed Property $61,711 31-Dec-90 Australian Shares $67,080 31-Dec-91 Australian Cash $90,048 31-Dec-92 Australian Shares $96,279 31-Dec-93 Australian Cash $139,951 31-Dec-94 Australian Shares $147,453 31-Dec-95 Australian Cash $177,223 31-Dec-96 International Shares $190,639 31-Dec-97 Australian Cash $269,030 31-Dec-98 Australian Cash $282,858 31-Dec-99 Australian Listed Property $297,029 31-Dec-00 International Shares $350,049 31-Dec-01 International Shares $316,024 31-Dec-02 International Shares $230,160 31-Dec-02 International Shares $228,960 Cumulative returns for each year to 31 December 2002. Data based on index returns, all distributions reinvested. Source: UBS Warburg Australia Bank Bill Index (91 day Commonwealth Treasury Note Index pre Jan 1989), UBS Warburg Australian Composite Bond Index 0+ Years (CBBI All Series All Mats Accumulation pre Oct 1989), S&P/ASX 200 Property Accumulation Index (ASX Property Trusts Accumulation Index pre April 2000), S&P/ASX 300 Accumulation Index, (ASX All Ordinaries Accumulation Index pre April 2000), MSCI World Net Index ($A). IRESS, RIMES Asset ClassValue

5. What are the two main investment risks ? 1.Loss of capital 2.Not meeting your investment objectives

6. IncomeCapital Value Source: IRESS, S&P ASX All Industrials used prior to July 2002. S&P ASX 300 Industrials used after July 2002. Reserve Bank of Australia, ‘Bank Deposits $5,000-$100,000 1 year rates’ Shares can provide capital growth & income Return on investment of $100,000 in Shares vs Term Deposits

7. What has inflation done to $100,000? $ $38,925 $100,000 Source: IRESS. Data to 31st December 2003

8. Shares or cash? Return Rolling one year returns *35% Australian shares; 25% Global Shares; 10% Aust Property Securities; 25% Aust Fixed Interest; 5% Cash Source: UBS Warburg Australia Bank Bill Index (91 day Commonwealth Treasury Note Index pre Jan 1989), UBS Warburg Australian Composite Bond Index 0+ Years (CBBI All Series All Mats Accumulation pre Oct 1989), S&P/ASX 200 Property Accumulation Index (ASX Property Trusts Accumulation Index pre April 2000), S&P/ASX 300 Accumulation Index, (ASX All Ordinaries Accumulation Index pre April 2000), MSCI World Net Index ($A). IRESS/RIMES

9. Shares or cash? Rolling five year returns Return *35% Australian shares; 25% Global Shares; 10% Aust Property Securities; 25% Aust Fixed Interest; 5% Cash Source: UBS Warburg Australia Bank Bill Index (91 day Commonwealth Treasury Note Index pre Jan 1989), UBS Warburg Australian Composite Bond Index 0+ Years (CBBI All Series All Mats Accumulation pre Oct 1989), S&P/ASX 200 Property Accumulation Index (ASX Property Trusts Accumulation Index pre April 2000), S&P/ASX 300 Accumulation Index, (ASX All Ordinaries Accumulation Index pre April 2000), MSCI World Net Index ($A). IRESS/RIMES

10. Shares or cash? Rolling ten year returns Return *35% Australian shares; 25% Global Shares; 10% Aust Property Securities; 25% Aust Fixed Interest; 5% Cash Source: UBS Warburg Australia Bank Bill Index (91 day Commonwealth Treasury Note Index pre Jan 1989), UBS Warburg Australian Composite Bond Index 0+ Years (CBBI All Series All Mats Accumulation pre Oct 1989), S&P/ASX 200 Property Accumulation Index (ASX Property Trusts Accumulation Index pre April 2000), S&P/ASX 300 Accumulation Index, (ASX All Ordinaries Accumulation Index pre April 2000), MSCI World Net Index ($A). IRESS/RIMES

11. Shares or cash? Rolling twenty year returns *35% Australian shares; 25% Global Shares; 10% Aust Property Securities; 25% Aust Fixed Interest; 5% Cash Return Source: UBS Warburg Australia Bank Bill Index (91 day Commonwealth Treasury Note Index pre Jan 1989), UBS Warburg Australian Composite Bond Index 0+ Years (CBBI All Series All Mats Accumulation pre Oct 1989), S&P/ASX 200 Property Accumulation Index (ASX Property Trusts Accumulation Index pre April 2000), S&P/ASX 300 Accumulation Index, (ASX All Ordinaries Accumulation Index pre April 2000), MSCI World Net Index ($A). IRESS/RIMES

12. Interest rates Source: Bloomberg, RBA Cash rate June 2004 4 5 6 7 8 Dec-92Dec-94Dec-96Dec-98Dec-00Dec-02Dec-04

13. The imputation impact 3.91%3.25%After tax yield 3,9143,254 After tax return 861,496 Tax payable 1,714 -Less Imputation credit 1,8001,496 Tax incurred @ 31.5% 5,7144,750 Gross/taxable return 1,714 -Imputation credit - 4,750 Interest - 4.75% 4,000 - Dividend Yield - 4%, Fully Franked 100,000 Investment SharesCash 31.50%Marginal tax rate: 2.94%2.45%After tax yield 2,9432,446 After tax return 1,0572,304 Tax payable 1,714 -Less Imputation credit 2,7712,304 Tax incurred @ 48.5% 5,7144,750 Gross/taxable return 1,714 -Imputation credit - 4,750 Interest - 4.75% 4,000 - Dividend Yield - 4%, Fully Franked 100,000 Investment SharesCash Marginal tax rate: * Assumes a corporate tax rate of 30%, cash return of 4.75%, dividend yield of 4%

14. Conclusion  Investment markets are unpredictable  Cash is often not the best long term investment strategy  The impact of tax & inflation is important in investing  Investing for the long term smooths returns