Profit Overview
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Profit OverviewProfit attributable to shareholders of £129m – up from £36m in 2006• Main contribution from- Sale of 19.4% of Australian Wealth Management- Sale of 16% of Premier Investments- Stronger contribution from Coats [2007: £31m, 2006: £15m]• Post balance date sale of 6% stake in ABB2

Track Record – Growth in NAV• Compound growth in GPG’s NAV 1 per share since 1990 is 19.1% p.a. 2 (accounting for scrip dividends, rightsissues and bonus issues)• Based on GPG’s NAV, £1 invested in September 1990 is equivalent to £20.29 in December 2007£25.00£20.0019.1%£15.00£10.0010.9%13.4%10.6%11.8%£5.00£0.00GPG FTSE ASX NZSX S&P 500£20.29 £5.97 £8.77 £5.69£6.841. Coats recorded at cost plus accrued profits2. Figures reflect performance up to 31 December 2007 and are unaudited3

Simplified Balance Sheet2006 2007£m £mCash at bank 182 261Debtors 21 43Coats 235 273 = cost + accrued profits sinceAWM 110 - acquisitionTower Australia 70 88Tower (NZ) 30 34Capral 51 56Turners & Growers 46 53Premier 34 -Rattoon 33 34ABB Grain (sold January 2008) 24 33MYOB 23 32CIC 18 21Green’s Foods 4 -Green’s General Foods - 16Eservglobal 8 15Metals X 10 14Share portfolio 225 236___ ___Total assets 1,124 1,209Creditors (47) (42)Note issues (201) (216)___ ___Shareholders’ funds £876m £951mNet asset backing/share 69.49p* 74.63p = A$ 1.69* restated for the 2007 1 for 10 capitalisation issue NZ$ 1.934

GPG - Selected Investments5

Tower• GPG’s investment commenced in 2003, a time at which the company was underfinancial and operating strain and required more capital in consequence of its poorperformance post-demutualisation. GPG acquired an initial shareholding of 10% andGary Weiss and Tony Gibbs were appointed to the board• GPG underwrote a 4 for 3 rights issue in 2003 which significantly increased itsshareholding to around 17%• After 2003, GPG increased its stake to 19.9% - the single largest shareholder• Through GPG’s board representation, two major restructurings have createdsignificant value for shareholders:‒ Spin-off of Australian Wealth Management (AWM) in February 2005‒ Demerger of Tower Australia from Tower New Zealand in November 20066

Tower (cont’d)Spin-off of Australian Wealth Management (AWM)• AWM was spun-off from Tower inFebruary 2005 with an effective marketcapitalisation of approximately A$260million• GPG subsequently increased itsshareholding via purchases and a capitalraising to 34.7%• GPG subsequently engineered a mergerwith Select Managed Funds in January 2006and by the time GPG exited its investmentin April 2007, AWM had a marketcapitalisation of approximately A$1.5billionDemerger of Tower Australia from Tower• In November 2006 New Zealand andAustralian businesses were separated inorder to illustrate their separate businessprofiles and strategies and increasemanagement focus in each region• GPG underwrote a capital raising for TowerAustralia and also increased itsshareholding via market purchases. Currentholding is 29.9%• Significant value has already been unlocked(as reflected by current market share prices)and we believe that further value will begenerated in the future7

Tower (cont’d)The following chart indicates the gain attributable to a theoretical TWR shareholder investing $250at the time GPG underwrote the first rights issue in 2003Investment in Tower from July 20038

Tower Australia Group (TAL)• TAL now represents the largest investment in the Australian portfolio at over A$220m• As the largest shareholder (29.9%), GPG is strongly represented on the board – Gary Weiss, Mike Jefferies(Deputy Chairman), Anthony Eisen• The Australian life insurance industry is experiencing strong growth (> 11% p.a.) on the back of a large nationalunderinsurance gap, renewed government attention and policies, and overlap with Australia’s superannuationregime and distribution technologies• TAL has been growing faster than system and is very well positioned (top 5 player) in a consolidating landscapedominated by the banks and large multi-national institutions – TAL is the only listed specialist life insurerTotal Life Insurance Premiums 11. Plan for Life, June 20079

Tower Australia Group (cont’d)Summary FinancialsFYE Sep 2007• Reported Net Profit After Tax $41m ↑ 29%• Underlying Profit 1 $54m ↑ 29%• Profit per Share 2,3 16 ¢ ↑ 29%• Return on Equity 1,2,3 10.4% ↑ 22%• Dividend per Share (fully franked) 4¢ Maiden• Inforce Premiums $664m ↑ 6%• Embedded Value 4 $761m ↑ 22%• Value of New Business $45m ↑ 30%1 before non cash items including amortisation of intangibles2 based on shares on issue as at 30 September 20073 based on underlying profit4 post transfers and discount rate changesNote: movements are Proforma 2006 full year results10

Tower Limited (TWR)• TWR is a well known brand in New Zealand and participates in the generalinsurance, health insurance, life insurance and investment markets• TWR also operates in the commercial insurance market in the Pacific Islands• TWR General Insurance is a top 4 participant in the NZ retail market• TWR Health & Life is a leading participant in the group life, retail and grouphealth markets, and is experiencing strong growth• TWR Investments is a leading wholesale fund manager in the NZ market andrecipient of many industry awards. Most recently, Tower Investments wasselected as a default service provider in relation to the New ZealandGovernment’s “Kiwi Saver” scheme• GPG’s current investment equates to over NZ$70 million11

Tower Limited (cont’d)Summary FinancialsFYE Sep 2007NZ$• Reported Net Profit After Tax $34.6m ↑ 23%• Profit per Share 18 ¢ ↑ 23%• Return on Equity 13.4% ↑ 23%• Dividend per Share 6¢ Nil previously12

Australian Sugar IndustryThe Australian sugar industry is in the early stages of deregulation. GPG has strategic stakes in anumber of the key value chain players (CSR, Maryborough Sugar Factory, ISIS Central Sugar Mill andSugar Terminals)Other MillsMulgraveISISProserpineRocky PointMosmanTully• Maryborough Sugar is currently bidding for the Mulgrave Central Sugar Mill13

GPG’s view of QLD Sugar Industry• QLD government has removed legislation‣ The industry is now deregulated in order to promote the productivity essential for asustainable future• But the culture needs to change• The Sugar Industry can no longer rely on “assistance” or “rescue” packages.‣ It needs to corporatise to allow for outside investment‣ Only by new investment will the industry survive‣ New investment capital brings improved efficiencies , new business opportunities e.g.ethanol and co-generations electricity and improved farming economics• STL & QSL also need to lead by example to bring transparency to industry returns‣ Efficient, transparent and commercial storage, handling and marketing operations will leadto greater returns for growers and millers14

The Maryborough Sugar Factory Limited (MSF)• GPG investment since 2004 – currently 27.1% shareholder• Only listed pure sugar company in Australia• Current stock market value of $45m set to increase by $40m via capital raising supported by GPG• Operates one sugar mill, owns significant agricultural land and water assets and is now a large shareholder inSugar Terminals Ltd (see below)• Under GPG influence MSF is seen as an “agent for change” in the sugar industry. MSF is in the process ofacquiring additional agricultural land, bidding for other sugar mills and sugar-related assetsSugar Terminals (STL)• STL operates seven bulk storage and handling port facilities up the Queensland coast usedexclusively to export 95% of Australia’s sugar crop• GPG became an “Active Grower” (a requirement for owning Sugar Terminals shares) in 2004via the purchase of a sugar cane farm• It is now the largest “Grower” shareholder with 19.1m shares (5.3%)• STL attempted to limit GPG voting rights to 5% - but GPG defeated this at AGM• It is currently planned to consolidate this shareholding into Maryborough Sugar15

The Maryborough Sugar Factory Limited (cont’d)• EGM scheduled for April 3 to approve $40m capital raising and purchase of Anthoanfrom GPG• Pro Forma: it will then have 33.5m shares on issue• Market Capitalisation of $84m at current share price of $2.50• MSF will then control:– 9.65% of STL (35m shares @ 83¢ = $29m)– 6.0% of the ISIS Sugar Mill– 6,000 HA of Farming Land in Maryborough District– 7,000 mega litre water allocation in Lower Mary River– Sugar Mill written down to $7.4m– Bid on table for Mulgrave Central Sugar Mill.– $500m housing development proposal on banks of Mary River16

Capral Aluminium (CAA)• Capral is the largest manufacturer and distributor ofaluminium extrusion products in AustraliaCAPRAL ALUMINIUM LTD• Capral’s market leadership and financial positionsince the time of GPG’s initial investment in 2001 hasbeen eroded by:An increased presence ofimported productsOwn shortcomings - mainlyservice and quality issuesDepressed Australian eastcoast residential market17

Capral Aluminium (cont’d)• GPG has set about remedying Capral’s position through the following initiatives:‒ Merger with Crane Aluminium (next largest competitor) in 2006‒ Installing new management (concurrent with the merger)‒ Refinancing in 2007 providing core debt facility and GPG underwriting A$50m convertiblenote issue• Confident that Capral’s declining trend can be reversed through theexecution of a sound strategy. Significant improvements starting to emerge:‒ Bremer (major production facility) operating at competitive levels‒ Improved customer service and winning back market share from key customers‒ Realisation of synergies from the combination of Capral and Crane Aluminium‒ Leveraging skills and experience of new team‒ Tight financial control• Accounting losses will continue to be experienced with the aim being to break-even on a cashflow basis in 200818

Capral Aluminium (cont’d)Summary FinancialsFY06FY07• Revenue $493.5m $507.7m• EBITDA $2.2m ($1.8m)• EBIT ($14.7m) ($19.7m)• NPAT ($25.4m) ($33.6m)• Total Assets $458m $443m• Shareholders’ Funds $228m $195m19

Gosford Quarry Holdings (GQH)• GPG holds 64% following an on-market offer launched in February• Offer was made at A$0.55 p.s. compared to Independent Expert’s valuation of A$0.70-0.80 p.s.• GQH is Australia’s largest dimension stone producer. Business units encompass‣ Dimension stone business,‣ Sandstone fill quarrying,‣ Gravel and sand quarrying, and‣ Pre-mixed concrete sales.principal business* dimension stone,aggregates and concrete* NSW centricGQH owns and operates quarries throughout Australia with annual output of 8,000m 3 p.a. and circa600,000 Te of sand, gravel and sandstone fill.• Significant freehold property interests are the head office at Annandale and a former quarry site atSomersby (10 hectares) plus options over adjoining sites• GPG will conduct D.D. and review business strategies subsequent to Board representation20

Gosford Quarry Holdings (cont’d)• The interim result to 31 December 2007 was EBITDA of A$975K which resulted in a NPATloss of A$1.3m• Revenue was A$16.7m• The full benefit of acquisitions in the 2006/7 year was not realised due to the downturn in thehousing and building products markets in NSW and the adverse effect of heavy rains andflooding in the Hunter Valley and NSW Central Coast during the six month period21

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