Lazard Asset Management Total funds under management of over A$99 billion as at 31 December 2002. Mandate Active Global Shares Corporate Overview Lazard Frères & Co. was established in 1848 and is based in New York. Lazard Asset Management is its investment management division. There are over 100 investment professionals with over 80 analysts grouped into 6 major global industry research groupings. Lazard has research analysts based in New York, London, Tokyo, Frankfurt/Hamburg, Cairo and Sydney. John Reinsberg Managing Director, International/Global Equity Investment Process Description Large capitalisation relative value manager that builds portfolios from the bottom up. Typically, the portfolio will hold between 60- 90 stocks. Philosophy - Lazard has a bottom-up approach to security selection that utilises a systematic equity screening process, together with an intensive qualitative research overlay, to identify companies that are financially productive and inexpensively priced in markets world-wide. Research and Stock Selection - Lazard uses a combination of broad database screening and fundamental analysis to determine which stocks will be bought for the portfolio. The fundamental analysis of companies includes identification of catalysts, which should unlock perceived value. An example of a catalyst may be the replacement of a lacklustre CEO in an inherently strong and profitable company with a strong and experienced CEO who will improve shareholder value. Lazard focuses on factors that can be measured with a great degree of certainty, including a company's financial strength, competitive positioning, profit enhancements and management effectiveness. The thoroughness of this analysis guards against the “value trap” of buying stocks, which are cheap for good reason. The key steps in the selection process are: Database screening – using a ‘value indicator’, a database of 9000 companies are screened world wide to assess their value characteristics relative to local and world markets. Accounting validation – Approximately 900 companies are chosen from step one. These companies are then assessed using a detailed accounting validation process. This step assesses a company’s financial strength and business value. Hidden values can also be found through this process. Fundamental analysis – Lazard meets with the management of the 450 companies chosen after meeting the criteria in the accounting validation stage. When meeting management, Lazard assesses the future sustainability of returns while looking to identify catalyst(s) which will result in increased shareholder value. Portfolio - The portfolio is then constructed with 60 – 90 stocks which is agreed upon by key investment personnel of Lazard. Country and Industry Selection - the portfolio’s country and sector tilts derive from, rather than drive, security selection and so significant country and industry tilts are possible. Lazard uses little economic or political forecasting. Portfolio Construction - In general, bottom-up analysis drives portfolio construction. However as a risk control measure Lazard does monitor the country and industry positions relative to the benchmark. Implementation - Lazard’s efficient implementation of investment decisions is facilitated by the large capitalisation nature of the holdings. Given the moderate number of stocks in the portfolio and typically longer term investment horizons (approximately 2-3 year holding period for most stocks), trading is reduced. Trading is further enhanced by the liquid nature of the stocks. MLC utilise Lazard because they are a large fund manager, with global resources and capabilities. Lazard Asset Management Investment Philosophy, Goals & Process Investment Philosophy • Value creation based on bottom up stock selection • Focus on companies that are financially productive & inexpensively priced Investment Expectations Investment goal is to outperform the MSCI world Index over a market cycle by providing: • Strong performance during flat & falling markets • General participation during rising markets Investment Process Database Screening 9,000 global companies Accounting Validation 900 companies Fundamental Analysis 450 companies Portfolio 60-90 companies Key Investment Personnel John Reinsberg – Managing Director, International/Global Equity BA University of Pennsylvania, MBA Columbia University John has 18 years investment related experience. He has previously worked for General Electric Investment Corp, Jardine Matheson and Hill & Knowlton. Michael S. Rome - Managing Director Mr. Rome is a Managing Director of Lazard LLC responsible for Alternative Investments. He began working in the investment field in 1982. Prior to joining Lazard in 1991, Mr. Rome served as Senior Vice President with Mark Partners. Previous to that, he was associated with Goldman, Sachs & Co. He has an M.B.A from Cornell University and a B.A. from the University of Rochester. Michael A. Bennett - Director, Portfolio Manager/Analyst Mr. Bennett is a portfolio manager/analyst and a Director of Lazard LLC. He began working in the investment field in 1986. Prior to joining Lazard in 1992, Mr. Bennett served as an international equity analyst with General Electric Investment Corporation. Previously he was with Keith Lippert Associates – Financial Marketing and Arthur Andersen & Company. He is a CPA and has a M.B.A. from the University of Chicago, Graduate School of Business and a B.S. from New York University. Jeffrey Kigner - Managing Director Jeffrey Kigner is a Managing Director of Lazard LLC and is primarily responsible for U.S Equity management and overseeing the day-to-day operations of the U.S. equity investment team. Prior to joining Lazard in 2001, he served as Chief Investment Officer and CoChairman of John A. Levin & Co. Mr. Kigner holds an MBA as well as an undergraduate degree in Economics and Finance from New York University, and has been working in the investment field since 1983. The information contained in this material has been prepared by MLC Limited (ABN 90 000 000 402) and is intended as general information only and is current as at 30 June 2003. It has not been prepared to take into account individual investment objectives, financial situation or investment needs. Prior to making an investment decision, you should assess whether the information in this material is appropriate to your particular investment objectives, financial situation or investment needs. Past performance is not indicative of future performance. The future value of your investment may rise and fall with changes in the market. An investment with MLC does not represent a deposit with, or a liability of, MLC Nominees Pty Limited (ABN 93 002 814 959), MLC Limited, National Australia Bank Limited (ABN 12 004 044 937) or another member company of the National group of companies and is subject to investment risk including possible delays in repayment and loss of income and capital invested. None of National Australia Bank Limited, MLC Investments Limited (ABN 30 002 641 661), or another member company of the National group of companies or appointed investment managers, guarantee the capital value, payment of income or the performance of an investment with MLC.