This Income Fund has been set up for a one-year period to provide expansion capital to two underlying assets both of which are asset rich and cash-flow positive, with strong asset coverage ratios. With a fully underwritten return of up to 18% p.a paid monthly, this is an opportunity to take advantage of a high yield investment whilst interest rates are low and the worldwide economic picture remains hard to predict.

1. First Guardian
Secured High Yield Convertible Note
Investor Presentation

2. 1. 1-year fixed term investment opportunity
2. Institutional grade offering
3. Fixed coupon of 12% per annum (paid monthly);
4. Option 1 on maturity: Bonus coupon - 6% paid on exit
5. Option 2 on maturity: Conversion to equity - at a 12%
discount to prevailing share price at maturity
6. $3m funds raised underwritten with $38m additional
security (first ranking)
First Guardian Secured High Yield Convertible Note
Overview

3. First Guardian Secured High Yield Convertible Note
Presenter
David Anderson
Funds Manager, First Guardian Capital

4. First Guardian
Disclaimer
First Guardian Secured High Yield Convertible Note is an exempted company incorporated with
limited liability under the Companies Law. This Memorandum relates to the offering of
participating shares in the Fund.
The Directors, whose names appear in the Directory, accept responsibility for the
information contained in the Deed Poll For First Guardian Secured High Yield Convertible
Note. To the best of the knowledge and belief of the Directors (who have taken all
reasonable care to ensure that such is the case) the information contained in the Memorandum
is in accordance with the facts and, in the reasonable opinion of the Directors, contains
such information as is necessary to enable a prospective investor to make an informed
decision as to whether or not to subscribe for Participating Shares.
Due to various risks and uncertainties, actual events or results or the actual performance
of the Convertible Note may differ materially from that anticipated in such forward-looking
statements. Statements in this presentation are subject to change.
This presentation is for general guidance only. Before making an investment in the
Convertible Note prospective investors should review the Deed Poll carefully and in its
entirety. Prospective investors should consult with their legal, tax and financial advisers
as to any legal, tax, financial or other consequences of subscribing for, purchasing,
holding, redeeming or disposing of Participating Shares in their country of citizenship,
residence and/or domicile.

5. Reach Markets
Disclaimer
Any advice contained within this presentation is general advice and does not consider your
objectives, financial situation or needs, and you should consider whether it’s appropriate
for you. The information we are giving you is for educational purposes only.
“Investing is about understanding your risk” and every time you invest in the share market
there is a risk of loss.
If you are thinking about acquiring a financial product, you should consult our Financial
Services Guide (FSG) at www.reachmarkets.com.au and the relevant Product Disclosure
Statement or Prospectus first.
*Reach Markets are the advisors assisting with the management of this offer and may receive
fees depending on whether an offer is taken up by investors.
**Past performance is not a reliable indicator of future performance.

6. 1. Provide investors a capital guaranteed investment secured by
cashflows and assets from established businesses
2. Provide an option to either redeem or convert at a discount
3. Provide expansion capital for:
• Dura-base Mats purchases for Sapex (Industrial services &
logistics)
• Construction/development funding for LPG (Property
development)
First Guardian Secured High Yield Convertible Note
Objective of the Connote

7. • Melbourne based investment manager with offices in Asia
• Over $800 million assets under management and advice;
• Extensive international experience, having managed domestic and
international portfolios for investors since 1985;
• Focus on generating attractive absolute returns whilst preserving
capital
• $90m increase in FUM during 2019
First Guardian Secured High Yield Convertible Note
About First Guardian Capital

8. First Guardian Secured High Yield Convertible Note
Return Timeline & Exit Plan
Return Timeline
12%
OR
18%
Maturity
6% bonus coupon on Exit
*Maturity Option 1: Bonus Coupon
Exit Plan
Conversion to Equity @ 12% Discount to
prevailing share price at maturity in
either of the two portfolio companies
*Maturity Option 1: Equity

9. • Underwritten return, stable cashflow
• Fully underwritten, with capital and agreed return guaranteed by
Issuer.
• Note limit: $3m
• Minimum investment: AU$100,000
• Pledged security: 38m
First Guardian Secured High Yield Convertible Note
Connote Summary

10. First Guardian Secured High Yield Convertible Note
Risk management & security assets
AU $12.8m AU $14.1m
International
Industrial
Assets
Domestic
Agri-Land
Assets
International Land
and Construction
AU $11.7m
Issuer holdings pledged, totaling AU $38.6m, as at 30/11/2019
@12.8 x coverage

11. First Guardian Secured High Yield Convertible Note
Repayment process and structure
Obligation 12% Fixed Coupon 6% Bonus Coupon Principal
Repaid by Underlying portfolio
companies
Issuer Debt refinance Equity sale
Strategy Pass through earnings on
funds advanced to
underlying companies
Group assets Refinanced by third
party against
security assets
Repaid by partial
sale of security
assets

12. 1. Property development and tourism
2. Industrial services and logistics
3. Agri-Land Assets
• The Issuer holds >25% in each portfolio company
• Low correlation to traditional assets
First Guardian Secured High Yield Convertible Note
Security Assets

13. First Guardian Secured High Yield Convertible Note
Security Assets
Total Value in AUD
Sapex Group Limited
-Total Convertible Notes $6,990,994
-Total Ordinary Shares $5,215,309
-Total Senior Facility Loan $1,070,187
Total Sapex Holdings $13,276,490
Australian food & farming
-Total Convertible Notes $3,527,862
-Total Ordinary Shares $10,325,187
Total AFF Holdings $13,853,049
Lombok Property Group
-Total Ordinary Shares $8,200,000
-Total Convertible Notes $3,330,250
Total LPG Holdings $11,530,250
Total Portfolio Holdings $38,659,789
The Issuer warrants that the following assets are beneficially held
by the Issuer and its related entities.

14. Lombok Property Group

17. The Issuer mitigates risk via the following structural
mechanisms:
- Executive control in each portfolio company
- Strong influence at the BOD level
- Large direct equity holding in each portfolio company (>25%)
- Low correlation to traditional assets
First Guardian Secured High Yield Convertible Note
Investment Strategy

18. First Guardian Secured High Yield Convertible Note
Investor Pack

19. First Guardian Secured High Yield Convertible Note
Due Diligence Overview
• Business description for portfolio companies
• Historical financial statements and related financial
metrics
• Valuations for key security assets
• Material Contracts and Projects for portfolio companies
• Organisational chart and management biographies
• Group policies and corporate governance

20. 1. 1-year fixed term investment opportunity
2. Institutional grade offering
3. Fixed coupon of 12% per annum (paid monthly);
4. Option 1 on maturity: Additional 6% paid on exit
5. Option 2 on maturity: Conversion to equity at a 12%
discount
6. $3m funds raised underwritten with $38m additional
security (first ranking)
First Guardian Secured High Yield Convertible Note
Overview

21. Contact
First Guardian Secured High Yield Convertible Note
Reach Markets are the advisors assisting with the management of this offer and may
receive fees depending on whether an offer is taken up by investors.
David Sellars
Head of Wholesale Investments
Reach Markets
E: david.sellars@reachmarkets.com.au
W: www.reachmarkets.com.au
T: (03) 8080 5795