Second Half Review 2016

FIM Capital Limited. Licensed by the Financial Services Authority of the Isle of Man and authorised and regulated by the Financial Conduct Authority. A list of the names of directors and officers of the company is available for inspection at the registered office of the company. Company registered in the Isle of Man No 012651V.

Pound a Day Portfolio, IOMA House, Hope Street, Douglas, Isle of Man, IM1 1AP, British Isles+44 (0) 1624 681250enquiries@fim.co.imwww.poundadayportfolio.com@PAD_Portfolio

WPP was the strongest contributor over the half, appreciating by 17.01% as the company’s diverse revenue stream meant that it was, and continues to be, in a strong position to benefit from a weak pound. This was most notable in the third quarter, with currency movements accounting for 15.8% of the 23.4% growth in revenue. Additionally, the Group has also placed more emphasis on expansion in Germany, France, Italy and Spain. Growing activity from overseas investors, who wish to capitalise on a weak London property market, supported the Derwent London share price which appreciated by 6.08% over the six-month term but it still ended the year some 24% lower.

The biggest detractor to performance over H2 was Vodafone falling 12.21% due to growing competition in India which is now having a negative impact on revenue growth and profitability. The company is seeking to combat this by looking to acquire frequencies in more successful areas of the country. Additionally, with Vodafone now reporting in Euros, the company’s UK revenues were negatively impacted by a weak pound.

We made the decision to sell Mitie Group over the final few days of the year after the company announced a decrease to its interim dividend which accompanied a second profits warning. A management reshuffle has been under way and it increasingly looked as if the company was going to have to conduct a full financial review at the very same time the hike in minimum wage was eating into profits. Our conclusion has since been reaffirmed in a third profits warning along with a full financial review. We suspect the next dividend payment could be omitted. We sold the holding just before the end of the year, securing the 4p dividend in the process and invested the proceeds into Micro Focus International, which went ex-div a week later. Investors will therefore collect the two payments. Micro Focus is a global software and security company with an 11-year track record for consistently growing dividends. Among the company’s recent ventures is the announcement to expand its footprint to include an additional 50,000 customers, including 94 of the Fortune 100 companies, through the acquisition of HPE’s software business, creating one of the world’s largest pure-play infrastructure software companies.

Years of Accumulated Dividend GrowthAlthough the Selective Portfolio experienced some headwinds over 2016 it still managed to deliver a total return of 1.02% over the second half of 2016 and 2.95% over the year as a whole whilst the FTSE100 Share Index appreciated by 11.70% and 19.15% over the same respective periods. Three factors worked against the constituents, the first being Mitie and Whitbread which are now facing some financial pressure from the increase minimum wage that is being phased in over

several years and, secondly, the portfolio has no exposure towards the cyclical oil and resource stocks which experienced a strong rebound after several years of downward pressure and were largely responsible for driving the FTSE higher. Lastly, the Brexit vote most negatively impacted the UK commercial property sector and Derwent London suffered as a consequence.

Average Price Growth: Average Total Return: Average Yield: H2 2016 -0.36% +1.02% 3.24% FY 2016 -0.22% +2.95%

Total Return (Excluding charges) 2016 2015 2014 2013 2012 Compound AnnualisedSelective 2.95% 11.06% 3.28% 17.06% 11.69% 54.39% 9.07%FTSE100 19.15% -1.37% 0.72% 18.65% 10.02% 54.51% 9.09%FTSE250 6.64% 11.17% 3.65% 32.27% 26.11% 104.97% 15.44%

Price Performance: 30 June 2016 - 31 December 2016

(12.21%) (11.75%) (9.52%) (8.01%) (0.06%)

0.96% 1.47% 1.70% 1.82% 6.08%

8.13% 17.01%

Vodafone HALMA MITIE Unilever SSE

AB Foods Sage PZ Cussons Croda Derwent London Whitbread

WPP

Total Return Since Inception31 December 2011 - 31 December 2016

Weighted Average Return

HALMA

Serco WPP

-100%

-50%

0%

50%

100%

150%

200%

250%

300%

Dec 11 Apr 12 Aug 12 Dec 12 Apr 13 Aug 13 Dec 13 Apr 14 Aug 14 Dec 14 Apr 15 Aug 15 Dec 15 Apr 16 Aug 16 Dec 16

Whitbread (Interim)

SSE (Final)

Unilever (Interim)

January February March April May June July August September October November December

Vodafone(Interim)

Unilever (Final)

AB Foods (Final)

PZ Cussons(Interim)

Unilever (Interim)

Vodafone (Final)

PZ Cussons(Final)

Derwent London (Interim)

Derwent London (Final)

WPP(Interim)

WPP(Final)

Unilever (Interim)

Estimated Yearly Dividend Schedule - Selective

Whitbread (Final)

AB Foods (Interim)

MITIE (Final)

HALMA (Final)

Sage (Final)

HALMA (Interim)

Sage (Interim)

Croda (Final)

MITIE (Interim)

SSE(Interim)

Croda (Interim)

Half year results to 1st October 2016 • Revenue growth in all major regions. Good organic constant currency growth in Asia Pacific with solid progress in the USA, Mainland Europe, and the UK. • Strong revenue and profit growth in the Infrastructure Safety and Medical Sectors. Solid progress in Environmental & Analysis and Process Safety on track for improvement in the second half. • Benefitted from an 8% positive currency translation impact from a weak sterling, as 45% of group revenues are denominated in US Dollar and 15% in Euros.‘The diversity of our business and the evolution of our organisational model through our four sectors is enabling us to sustain growth in varied market conditions.’ – Andrew Williams, Chief Executive Increased interim dividend by 7.03% to 5.33p

Price Performance 2016 2015 2014 2013 2012 2011 2010 2009 Compound3.76% 25.82% 13.92% 31.37% 39.04% (7.97%) 47.74% 20.00% 327.16%

Past Dividend and Growth Uninterrupted dividend growth since 1973 (Yield 1.40%)H1 2017 2016 2015 2014 2013 2012 2011 2010 2009 Compound5.33 12.81p 11.96p 11.17p 10.43p 9.74p 9.1p 8.5p 7.93p 7.11% 7.07% 7.09% 7.08% 7.03% 7.06% 7.19% 5.03% 69.67%

Full year results to 17th September 2016 • Achieved fifth consecutive year of operating cash generated in excess of £1 billion. This funded capital expenditure increases for Primark and the food business and a £247 million to purchase the minority shareholdings in Illovo Sugar Limited. • Announced sale of south China cane sugar operations, as further improvements in the area are likely to be driven by industry consolidation. Attention will instead be directed to the company’s sugar beet business in north China. • Announced the sale of ACH’s herbs and spices business in North America to B&G Foods.‘The recent decline in the value of sterling represents both benefits and challenges to the group. The diversity of our operations and our broad geographical footprint, combined with a strong balance sheet, equip us well to take advantage of these opportunities as they arise.’ – George Weston, Chief Executive Increased final dividend by 5.80% to 26.45p

Price PerformanceH1 2016 2015 2014 2013 2012 2011 2010 2009 Compound(17.86%) 5.99% 28.96% 56.33% 41.28% (6.27%) 43.67% 12.60% 357.81%

Past Dividend and Growth Uninterrupted dividend growth since 1989 (Yield 1.41%)H1 2017 2016 2015 2014 2013 2012 2011 2010 2009 Compound 26.45p 35.3p 34.3p 32.35p 29.35p 25.35p 24.1p 21.7p 20.4p 2.92% 6.03% 10.22% 15.78% 5.19% 11.06% 6.37% 3.29% 78.73%

Half year results to 30th June 2016• Estimated rental values increased by 4.1% compared to 5.2% in H1 2015 and 6.6% in H2 2015.• Letting activity for the first H1 was the company’s highest half year ever, with 267,700 sq ft generating £16.7m pa.• Continued progress with development programmes under construction as of Q3. This includes 400,000 sq ft due for completion by H2 2017 with 66% already pre-let. ‘Despite uncertain market conditions, our brand of good quality space at mid-market rental levels continues to attract occupiers.’ – John Burns, Chief Executive Officer Increased interim dividend by 10.00% to 13.86p

Price Performance 2016 2015 2014 2013 2012 2011 2010 2009 Compound(24.51%) 21.67% 20.96% 18.47% 35.00% (0.06%) 18.26% 82.07% 406.48%

Past Dividend and Growth Uninterrupted dividend growth since 1986 (Yield 1.69%)2016 2015 2014 2013 2012 2011 2010 2009 Compound44.66p 40.6p 37.4p 34.5p 31.85p 29.75p 27.6p 24.5p 10.00% 8.56% 8.41% 8.32% 7.06% 7.79% 12.65% 5.83% 92.92%

Half year results to 30th June 2016 • Sales growth of 2.1% was driven by organic growth in key technology platforms. This was supplemented by $164 million acquisition of seed additive-maker Incotec at the end of 2015. • Robust cash flow from operating activities, funding over £56 million of capital investment for future growth. • Strong performances in Asia and Europe offset underlying sales in core business in the Americas. • New & Protected Products sales increased to 27.5% of constant currency sales (2015: 26.1%). ‘Despite subdued demand in the first half of 2016, we have delivered a strong bottom line performance, improving our operating margin through a richer product mix.’ Steve Foots, Chief Executive Increased interim dividend by 5.65% to 32.75p

Price Performance2016 2015 2014 2013 2012 2011 2010 2009 Compound1.44% 14.27% 8.34% 3.41% 31.71% 11.63% 102.00% 53.99% 485.56%

Past Dividend and Growth Uninterrupted dividend growth since 1993 (Yield 2.14%)2016 2015 2014 2013 2012 2011 2010 2009 Compound70.75p 67p 65p 61.75p 57p 50p 24.75p 20.05p 5.60% 3.08% 5.26% 8.33% 14.00% 102.02% 23.44% 17.94% 316.18%

100p Special Dividends

Founded in 1935

Market Cap (Millions) £19,308.93

Founded in 1925

Market Cap (Millions) £4,463.74

Founded in 1913

Market Cap (Millions) £2,731.28

HALMAFounded in 1894

Market Cap (Millions) £3,501.76

Half year results to 30th September 2016• Negatively impacted by rising labour costs, economic uncertainty and weak UK business confidence, causing short term reduction in higher margin project work and reduced profits in Facilities Management.• Withdrew from the domiciliary healthcare market, placing its domiciliary healthcare business under review. • Position sold in December 2016Decreased interim dividend by 25.93% to 4p

Half year results to 30th November 2016 • Robust performance in UK washing and bathing division, with new product launch under Imperial Leather, Carex and Original • In beauty division, poor summer adversely affected sales of St Tropez. New product launches to include an extension of the Sanctuary range.• Poor liquidity in Nigeria following a 40% reduction of the Naira. Market share maintained or grown across personal care, home care, electricals and food and nutrition, although volumes are down due to changes to relative pricing.Increased final dividend by 2.04% to 5.5p

Price Performance 2016 2015 2014 2013 2012 2011 2010 2009 Compound17.38% (6.93%) (18.73%) (1.34%) 9.03% (12.65%) 48.41% 66.41% 75.53%

Past Dividend and Growth Uninterrupted dividend growth since 1974 (Yield 2.37%) 2016 2015 2014 2013 2012 2011 2010 2009 Compound8.11p 8p 7.76p 7.39p 6.717p 6.61p 5.9p 5.27p 3.09% 5.01% 10.02% 1.62% 12.03% 11.95% 12.13% 72.55%

Price Performance 2016 2015 2014 2013 2012 2011 2010 2009 Compound8.53% 29.59% 15.36% 30.40% 0.03% 7.61% 24.27% 29.41% 237.47%

Past Dividend and Growth Uninterrupted dividend growth since 1990 (Yield 2.14%) 2016 2015 2014 2013 2012 2011 2010 2009 Compound14.15p 13.10p 12.12p 11.13p 10.15p 9.75p 7.80p 7.43p 8.02% 8.09% 8.89% 9.66% 4.10% 25.00% 4.98% 3.05% 96.26%

17.1p Special Dividends

Full year results to 30th September 2016 • Accelerating revenue growth in Europe, Africa and Brazil; slower performance in Asia owing to a one off regulatory change; and growth in North America is consistent with last year. • Paying subscriptions to Sage One increased by 81% to 313,000, delivering a 54% increase in Sage One revenue. Majority of increases driven by Europe and in International, which delivered triple digit increase in paying customer numbers. • Sage Live (launched in US and UK in February 2016) awarded ‘Best Salesforce Developer Community’ innovation award. Gaining momentum as powerful mobile first, real-time accounting engine. Now with 600 customers, 400 were added over the last 90 days of the financial year. ‘FY16 saw Sage continue to deliver on the commitment made at our June 2015 Capital Markets Day to perform and transform.’ – Stephen Kelly, Chief Executive Officer Increased final dividend by 8.09% to 9.35p

Price Performance2016 2015 2014 2013 2012 2011 2010 2009 Compound(27.85%) 11.91% (12.58%) 20.92% 8.19% 3.76% 1.91% 11.69% 51.15%

Past Dividend and Growth Uninterrupted dividend growth since 1991 (Yield 5.02%) H1 2017 2016 2015 2014 2013 2012 2011 2010 2009 Compound4p 12.1p 11.7p 11p 10.3p 9.6p 9p 8.8p 6.9p 3.42% 6.36% 6.80% 7.29% 6.67% 2.27% 27.54% 15.00% 101.67%

Half year results to 30th September 2016 • EPS and profit before tax both up significantly, rising by 143% and 167% respectively, reflecting cumulative impact of positive mark-to-market valuations on commodity and financial derivatives. • Sold a 16.7% holding in Scotia Gas Networks for £621m, reducing its stake in the company to 33.3%. • Proceeds of the sale to be split between directing £100m to support investment in SSE’s Stronelairg and a return value to shareholders via a share buy-back of about £500m.‘Looking to the challenges that lie ahead, our long-term focus will continue to be on operating our balanced range of energy businesses safely and efficiently and maintaining disciplined financial management.’ – Richard Gillingwater, Chairman Increased interim dividend by 1.86% to 27.4p

Price Performance2016 2015 2014 2013 2012 2011 2010 2009 Compound1.64% (5.80%) 18.39% (3.39%) 9.84% 5.39% 5.51% (4.60%) 25.55%

Past Dividend and Growth Uninterrupted dividend growth since 1992 (Yield 5.85%)H1 2017 2016 2015 2014 2013 2012 2011 2010 2009 Compound27.4p 89.4p 88.4p 86.7p 84.2p 80.1p 75p 70p 66p 1.13% 1.96% 2.97% 5.12% 6.80% 7.14% 6.06% 9.09% 47.77%

Geographic Spread (Revenues)

Emerg

ing M

arkets

6.49

%

Europ

e Inc

. UK

64.14

%

Ameri

cas 1

5.58%

Rest

of W

orld 1

.96%

Asia

11.83

%

Founded in 1987

Founded in 1879

Founded in 1981

Founded in 1998

Market Cap (Millions) £1,305.90

Market Cap (Millions) £722.03

Market Cap (Millions) £6,534.75

Market Cap (Millions) £15,079.45

Half year results to 30th June 2016 • Revenue up 4.3%, receiving a positive impact from the Group’s investment in technology allowing for a reduction in the direct cost of data investment management.• Client data continues to reflect some increase in advertising and promotional spend, despite low lack of pricing power from low inflation. • Awarded the Cannes Lion for most creative holding company for the sixth consecutive year since the award’s inception.• Achieved constant currency and revenue growth in all regions and business sectors.Increased interim dividend by 22.88% to 19.55p

Price Performance2016 2015 2014 2013 2012 2011 2010 2009 Compound16.19% 16.21% (2.54%) 55.41% 31.46% (14.44%) 29.53% 51.43% 288.32%

Past Dividend and Growth Uninterrupted dividend growth since 1988 (Yield 2.58%) 2016 2015 2014 2013 2012 2011 2010 2009 Compound48.33p 42.49p 35.27p 30.27p 25.94p 19.28p 16.25p 15.47p 13.74% 20.47% 16.52% 16.69% 34.54% 18.65% 5.04% 8.03% 237.50%

Half year results to 30th June 2016 • Underlying sales growth of 4.7%, with volume up 2.2%. Emerging markets underlying sales growth of 8% with volume up 2.9%.• In September, named leader of the Household and Personal Products Industry Group in the 2016 Dow Jones Sustainability Index.• Announced a number of acquisitions in H2, including Dollar Shave Club, a male grooming business with more than 3.2 million members, and Blueair, a world leading supplier of mobile indoor air purification technologies and solutions. ‘Our priorities continue to be volume driven growth ahead of our markets, steady improvement in core operating margin and strong cash flow.’ ¬– Paul Polman, Chief Executive Increased H2 dividend by 5.99% to €0.6402

Price Performance 2016 2015 2014 2013 2012 2011 2010 2009 Compound12.51% 11.36% 5.88% 4.90% 9.39% 10.19% (1.55%) 26.28% 85.34%

Past Dividend and Growth Uninterrupted dividend growth since 1979 (Yield 3.10%) 2016 2015 2014 2013 2012 2011 2010 2009 Compound€ 1.28 € 1.19 € 1.12 € 1.05 € 0.95 € 0.88 € 0.82 € 0.78 7.51% 5.96% 7.05% 10.06% 8.04% 7.81% 5.00% 2.63% 68.47%

Half year results to 30th September 2016 • Robust data traffic growth at 61% across the Group. Average revenues per user in Europe is stable following successful ‘more-for-more’ propositions, supporting improvement in consumer mobile.• Fastest growing broadband provider in Europe across a footprint of 82.1 million homes following 675,000 broadband net additions during the period. • Revenues fell by 3.9% due to FX headwinds and increased competition in India. Will focus on strengthening commercial offers and acquiring frequencies in more profitable areas of the country.‘Overall, we expect to sustain our underlying performance in the second half of the year and remain on track to meet our full-year objectives despite macroeconomic uncertainties.’ – Vittorio Calao, Chief ExecutiveIncreased interim dividend by 12.77% to 4.15p

Half year results to 1st September 2016 • Won market share in both Premier Inn and Costa with Group total sales of 8.1% and like-for-like sales growth of 1.9%. Individually, each delivered a sales growth of 8.9% and 10.7% respectively. • Group return on capital of 15.1%, including £400 million invested in future hotel openings. Costa saw a decline in underlying operating profit due to increased investments over the period.• Opened 1,171 new UK rooms, with c3,700 expected for the full year. Strong opportunity in London, with Premier Inn increasing available rooms by 12.1% whilst maintaining a high occupancy rate of 86.8%. ‘We are passionate about offering great value, outstanding service and high quality products to our customers and are investing more in driving product and digital innovation.’ – Alison Brittain. Increased interim dividend by 4.91% to 29.9p

Price Performance 2016 2015 2014 2013 2012 2011 2010 2009 Compound(14.20%) (7.74%) 27.17% 53.29% 56.46% (12.63%) 26.86% 53.87% 379.93%

Past Dividend and Growth Uninterrupted dividend growth since 1984 (Yield 2.26%) H1 2017 2016 2015 2014 2013 2012 2011 2010 2009 Compound29.9 90.35p 82.15p 68.8p 57.4p 51.25p 44.5p 38p 36.55p 9.98% 19.40% 19.86% 12.00% 15.17% 17.11% 3.97% 1.53% 150.97%

Price Performance 2016 2015 2014 2013 2012 2011 2010 2009 Compound(9.57%) (0.74%) (24.60%) 53.45% (13.67%) 7.90% 15.38% 3.38% 27.61%

Past Dividend and Growth Uninterrupted dividend growth since 1991 (Yield 5.56%) H1 2017 2016 2015 2014 2013 2012 2011 2010 2009 Compound4.015P 11.45p 11.22p 11p 10.19p 9.52p 8.9p 8.31p 7.77p 2.05% 2.00% 7.95% 7.04% 6.97% 7.10% 6.95% 3.46% 52.46%

It should be noted that investment involves risk. The price (or value) of investments can go down as well as up (and the investor may not necessarily receive back the original amount invested). When investments are made in overseas securities, movements in exchange rates may have an effect that is unfavourable as well as favourable. Past performance is not necessarily a guide to future performance. Rates of tax are those prevailing at the current time. These are subject to change without prior notice. Any tax reliefs referred to are those currently available and their value depends on the individual circumstances of the investor. Clients should always seek appropriate tax advice from their financial adviser before committing funds for management. The opinions expressed are based on information that we believe to be accurate and reliable. However, these opinions may change without notice. FIM Capital Limited does not guarantee the timelines, accuracy or suitability of such information in any way and anyone who acts on this information does so entirely at their own risk.

Edited by Michael Craine

Interim

Final

Average year on year dividend growth since 2009: 21.52%

Dividend Per Share Growth (Pence)

-30.00%

-20.00%

-10.00%

0.00%

10.00%

20.00%

30.00%

AB Foods Croda Derwent London

HALMA MITIE PZ Cussons Sage SSE Unilever Vodafone Whitbread WPP

10.3

p

32.7

5p

13.8

6p

5.33

p

4p

2.61

p

4.8p 27

.4p 0.

6402

4.01

5p 29.9

p

15.9

1p

26.4

5p

38p 30

.8p

7.83

p

5.5p

9.35

p

62.5

p

0.60

4

7.77

p

61.8

5p

28.7

8p6.7p

Founded in 1871

Founded in 1930

Founded in 1991

Founded in 1742

Market Cap (Millions) £52,197.79

Market Cap (Millions) £96,482.98

Market Cap (Millions) £7,242.33

Market Cap (Millions) £24,016.02