Mariner Financial Limited

1
Mariner Financial Limited
Company Update June 2009
2
Appointment of Two New Directors

• Ian Winlaw - Chairman
• Denis Pidcock Non-executive Director
• Bill Ireland Steps down as Chairman and remains
  Managing Director
• 15 June 2009
• MARKET ANNOUNCEMENT
• In line with Mariner Financial Limiteds overall
  restructuring and future strategy, it is pleased
  to announce the appointment of two new
  non-executive board directors, Mr Ian Winlaw and
  Mr Denis Pidcock. Their appointments take effect
  from 15 June 2009.
• Ian joins the board as non-executive chairman.
  With a strong background in finance and
  accounting he brings an impressive commercial
  discipline to the board, with over 40 years
  experience in consulting to, or participating on
  the boards of Australian companies within mining,
  rural, technology and research industries. Ian
  currently consults nationally through his
  practice Ian Winlaw Co.
• Denis has had a career spanning 45 years,
  primarily in property, construction and
  engineering. As a non-executive director, Denis
  brings to the board extensive experience in both
  senior level executive management and
  non-executive directorships across a wide range
  of industry sectors in private, public and
  government corporations.
• Managing Director, Mr Bill Ireland remains as an
  executive director on the board.
• Commenting on the appointments, Mr Ireland said,
  With these two appointments we have taken the
  important step of aligning the skills of our
  board with our strategy to exit the retail funds
  management sector realise the proceeds from
  non-core assets and focus on various capital
  management opportunities that will allow the
  company to develop some of its residual assets.
• For further information please contact
• Bill Ireland
• Managing Director
• 02 9238 0750

3
Current Asset Disposal Plan

• Currently seeking unitholder approval for the
  sale of the following remaining fund management
  rights
• Powercor Building Fund (MPT No 1) Meeting set
  for 30 June 2009
• Moore Park Self Storage Fund (MPT No 2) Meeting
  set for early July 09
• Mariner Coastal Land Fund (Yamba assets)
  Meeting set for 30 June 09
• Once these fund management rights are sold
  Mariner will cease all retail fund management
  activities, further reducing the cost base of the
  company
• Rationale for exiting retail funds management is
  that scale and costs required to operate a retail
  platform has increased significantly, and Mariner
  did not have that scale to remain in this market
  long term
• Move towards being a diversified investment
  company with a focus on assembling collective
  investment structures with high net wealth
  investors.

4
Summary of Completed Asset Disposals

• Sold all major funds management contracts and
  stakes held in funds
• Mariner America Property Income Trust - sold to
  Real Estate Capital Partners (Recap)
• Mariner Mortgage Trust - sold to Balmain
  Corporation
• Mariner Pipeline Income Trust sold to APA Group
• Sydney Opera House Car Park Fund - sold to Recap
• Sold assets from Mariner balance sheet
• Mariner Credit Corporation - sold to Pentagon
  Capital (includes Mariner Lifestyle Bonds)
• Shares in Beyond International Limited sold in
  September 2008
• Shares in Keybridge Capital Limited sold in May
  2008
• Sold all other listed shares and securities
• Sold various development properties in Redrock,
  1770 and Agnes Waters, Queensland
• Two entities in the group entered receivership
• Subsidiary Mariner Treasury Limited (Japanese and
  German assets) McGrath Nicoll
• Mariner Coastal Investment Trust (NSW Eco
  resorts, QLD caravan park) Grant Thornton

5
Mariner Background

• Original business model was not viable in changed
  market conditions
• Dramatic slide in market valuations of companys
  diverse and leveraged asset portfolio
• Prudent action required rapid disposal of assets
  to reduce liabilities
• Mariner Today
• Mariner has now sold, or is in the process of
  selling, management rights to satellite funds,
  and equity stakes in funds. This has meant an
  effective exit from all core retail funds
  management activities
• Reduced headcount from 70 to approximately 8
• There has been dramatic simplification of
  structure, assets and operations
• Retired majority of bank debt (600K only remains
  outstanding)
• Management team has applied best efforts to pay
  out liabilities, preserve the company, and
  provide a modest platform for future growth for
  shareholders

6
Main Remaining Assets

• Solutions Investment Group Trust (SIGT) An
  equity investment in a 42m portfolio of
  commercial operating leases
• Mariner owns 100 of SIGT, investment made in
  2005
• SIGT holds the residual value (RV) exposure to
  set of operating leases
• Approx. 90 lessee parties mid-sized companies,
  schools, universities, etc
• Underlying assets include office IT equipment,
  medical equipment
• Leases were originated by, and debt component is
  provided by NAB
• Investment is profitable and currently provides
  Mariner with monthly cashflow

7
Southern Hub Project (Continued Main Remaining
Assets)

• Major transport infrastructure industrial land
  development project. Mariner owns 50
• 263ha of freehold land located on Hume Highway at
  Goulburn, NSW
• State Government approval for 1.5 million sqm of
  warehouse / industrial (Concept Approval)
• Designated as major road/rail/air transport hub
  for Eastern Seaboard
• Dual carriage way links suitable for new B-triple
  road trains Site located within one truck
  driver shift of 80 of Australias population
• Longer term project develop in stages over 15
  years
• Infrastructure fundamentals of the project run
  beyond the recession
• Early interest from prospective land buyers /
  tenants is encouraging
• Currently restructuring debt and equity funding
  of project
• Raising funding for construction of Hume Hwy
  interchange, roads, water, services

8
Financial Outlook for 2009

• Operating overheads are expected to be largely
  offset by cashflow income from various assets for
  remainder of CY09
• Full year loss expected for FY09. Immediate
  working capital position underpinned by asset
  sales currently underway
• Remaining liabilities comprise convertible notes
  and some bank debt
• Convertible notes being paid down in stages.
  Current balance - 6.8m
• Convertible notes balance repayable March 2010,
  secured by Hub asset and units in MCLF
• Action Plan
• Working to add value to Hub project via
  development staging approval process, pre-sales,
  possible sell down of interest to provide cash
  for repayment of convertible notes and general
  working capital
• Proposal to expand SIGT asset with additional
  external capital and explore opportunities in
  business commercial finance market place
• Assembling a small team of executives to identify
  new investment opportunities as market conditions
  improve

9
In Summary - Future Strategies

• Complete remaining asset sales
• Add value to remaining assets
• HUB
• SIGT
• Seek new corporate opportunities
• In due course change name to Mariner Corporation
  Limited, to reflect exit from retail funds
  management and a move towards being a diversified
  investment company with a focus on assembling
  collective investment structures with high net
  wealth investors.

10
(No Transcript)