Earnings release
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ABN 34 086 587 395 wilsonassetmanagement.com.au 1 Strong investment portfolio outperformance, high interim dividend maintained 14 February 2025 ASX announcement and media release The WAM Capital Limited (ASX: WAM) investment portfolio outperformed the S&P/ASX All Ordinaries Accumulation Index by 8.0% and the S&P/ASX Small Ordinaries Accumulation Index by 9.4%, increasing 14.9%* in the six months to 31 December 2024. The investment portfolio performed strongly in the 2024 calendar year, increasing 30.2%* and outperforming the S&P/ASX All Ordinaries Accumulation Index by 18.8% and the S&P/ASX Small Ordinaries Accumulation Index by 21.8%. The strong investment portfolio outperformance contributed to a 40.3% increase in the operating profit before tax of $208.7 million and a 40.6% increase in operating profit after tax of $149.8 million in the half-year. It also added to the profits reserve which, at 31 January 2025, was 24.9 cents per share. Chairman Geoff Wilson AO said, “It has been pleasing to see another strong result from the WAM Capital investment team, with the portfolio continuing to outperform both the S&P/ASX All Ordinaries Accumulation Index and the S&P/ASX Small Ordinaries Accumulation Index. This outperformance has allowed the Board of Directors to maintain the high partially franked interim dividend of 7.75 cents per share.” The Board of Directors declared an interim dividend of 7.75 cents per share, partially franked at 60% and payable on 30 April 2025. The interim dividend of 7.75 cents per share provides an annualised dividend yield of 9.6% ^ and a grossed-up dividend yield of 12.1%^. Before the payment of the 7.75 cents per share interim dividend, WAM Capital has 24.9 cents per share in its profits reserve available for future dividends. The last time WAM Capital's profits reserve reached this level was in September 2021, at which time the Company was trading at a 20% premium to its net tangible assets (NTA). Lead Portfolio Manager Oscar Oberg said, “The investment team and I are pleased to have delivered strong investment portfolio performance for our shareholders. WAM Capital has outperformed both indexes despite a challenging environment, marked by the continued underperformance of small-cap companies. With a favourable interest rate environment, the investment portfolio is well positioned to capture opportunities in 2025.” For the financial year to 31 January 2025, the investment portfolio has increased 19.7% *, outperforming the S&P/ASX All Ordinaries Accumulation Index by 8.1% and the S&P/ASX Small Ordinaries Accumulation Index by 9.4%. Total shareholder return (TSR) for the six months to 31 December 2024 was 15.2% or 16.6% when including the value of franking credits. This was driven by the investment portfolio performance during the period and a reduction in the share price discount to net tangible assets (NTA). At 30 June 2024, the WAM Capital share price was trading at a 4.6% discount to NTA, narrowing to 1.4% by 31 December 2024. Highlights +14.9% 9.6% +8.0% 7.75 cps Investment portfolio performance in the six months to 31 December 2024* Annualised interim dividend yield^ Investment portfolio outperformance of the S&P/ASX All Ordinaries Accumulation Index in the six months to 31 December 2024 Interim dividend, 60% franked $4.49 per share Dividends paid since inception, including the value of franking credits $1.65 per share Pre-tax NTA at 31 January 2025 24.9 cps Profits reserve at 31 January 2025 before the payment of the interim dividend of 7.75 cps Q&A Webinar Thursday 6 March 2025 at 2:00pm (Sydney time) Register to join the investment team for our WAM Capital, WAM Microcap, WAM Research and WAM Active FY2025 Interim Results Q&A Webinar Register now 12.1% Grossed-up dividend yield^
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ABN 34 086 587 395 wilsonassetmanagement.com.au 2 *Investment portfolio performance is before expenses, fees, taxes and the impact of capital management initiatives to compare to the relevant indexes which are before expenses, fees and taxes. ^Based on the 13 February 2025 share price of $1.615 per share. Grossed-up dividend yield includes the value of franking credits and is based on a tax rate of 30.0%. Sin ce inception, WAM Capital has returned nearly $2 billion in dividends and franking credits to shareholders. The annualised FY2025 interim dividend of 15.5 cents per share is very high and in order to maintain it, at the current net asset level, the investment portfolio needs to increase approximately 15% per annum, before all expenses, fees and taxes. The level of franking in FY2025 and beyond are dependent on tax paid on realised profits. The Company also generates franking credits from the receipt of franked dividends from investee companies. Should the Company be able to maintain the final divid end of 7.75 cents per share, the WAM Capital Board of Directors also expects it to be partially franked at 60%. Key dividend dates Ex-dividend date 16 April 2025 Dividend record date (7:00pm Sydney time) 17 April 2025 Last election date for DRP 23 April 2025 Payment date 30 April 2025 Investment portfolio performance since inception Performance at 31 December 2024 Fin YTD 1 yr 3 yrs %pa 5 yrs %pa 10 yrs %pa Since inception %pa (Aug-99) WAM Capital Investment Portfolio* 14.9% 30.2% 9.9% 11.3% 12.3% 15.6% S&P/ASX All Ordinaries Accumulation Index 6.9% 11.4% 6.9% 8.3% 8.8% 8.5% Outperformance +8.0% +18.8% +3.0% +3.0% +3.5% +7.1% S&P/ASX Small Ordinaries Accumulation Index 5.5% 8.4% -1.6% 4.0% 7.3% 5.3% Outperformance +9.4% +21.8% +11.5% +7.3% +5.0% +10.3% *Investment portfolio performance is before expenses, fees, taxes and the impact of capital management initiatives to compare to the relevant indexes which are before expenses, fees and taxes. 0 2 4 6 8 10 12 14 16 2000/01 2002/03 2004/05 2006/07 2008/09 2010/11 2012/13 2014/15 2016/17 2018/19 2020/21 2022/23 2024/25 Ordinary fully franked dividend Special fully franked dividend Equal access share buy-back Ordinary partially franked dividend Annualised interim dividend Dividends since inception Cents per share The Dividend Reinvestment Plan (DRP) is in operation and the recommended partially franked interim dividend of 7.75 cents per share qualifies. Participating shareholders will be entitled to be allotted the number of shares (rounded to the nearest whole number) which the cash dividend would purchase at the relevant issue price. The relevant issue price will be calculated as the volume weighted average market price (VWAP) of shares sold on the ASX on the ex-date for the relevant dividend and the three trading days following that date. The DRP will operate without a discount for the partially franked interim dividend.
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ABN 34 086 587 395 wilsonassetmanagement.com.au 3 Diversified investment portfolio by sector at 31 December 2024 Top holdings with portfolio weightings at 31 December 2024 Research driven holdings Market driven holdings Code Company name % Code Company name % TUA Tuas Limited 4.2% A2M The a2 Milk Company Limited 2.5% GEM G8 Education Limited 2.9% NWH NRW Holdings Limited 2.1% JDO Judo Capital Holdings Limited 2.6% IRE Iress Limited 2.1% SSM Service Stream Limited 2.3% 360 Life360 Inc. 1.9% MGH Maas Group Holdings Limited 1.9% CDA Codan Limited 1.9% GTK Gentrack Group Limited 1.9% INA Ingenia Communities Group 1.8% SUM NZ Summerset Group Holdings Limited 1.9% AMP AMP Limited 1.6% GDG Generation Development Group Limited 1.6% CAT Catapult Group International Limited 1.6% REG Regis Healthcare Limited 1.5% HUB HUB24 Limited 1.6% SNL Supply Network Limited 1.5% NWS News Corporation 1.5% Portfolio composition by market capitalisation at 31 December 2024 WAM Capital^ S&P/ASX All Ordinaries Index S&P/ASX Small Or dinaries Index ASX Top 20 0.0% 56.0% 0.0% ASX 21 -50 2.8% 16.0% 0.0% ASX 51 -100 12.0% 13.2% 0.0% ASX 101 -300 52.0% 12.1% 100.0% Ex ASX 300 22.4% 2.7% 0.0% ^Investment portfolio held 10.8% in cash. 16.6% 15.5% 14.5% 11.6% 10.2% 9.5% 4.7% 3.2% 2.5% 0.6% 0.3% 10.8% Financials: 16.6% Consumer discretionary: 15.5% Industrials: 14.5% Information technology: 11.6% Communication services: 10.2% Health care: 9.5% Consumer staples: 4.7% Real estate: 3.2% Materials: 2.5% Energy: 0.6% Utilities: 0.3% Cash: 10.8%
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ABN 34 086 587 395 wilsonassetmanagement.com.au 4 About WAM Capital Listed August 1999 WAM Capital Limited (ASX: WAM) is a listed investment company (LIC) managed by Wilson Asset Management. Listed in August 1999, WAM Capital provides investors with exposure to an actively managed, diversified portfolio of undervalued growth companies listed on the ASX, with a focus on small-to-medium sized businesses. The Company's investment objectives are to deliver a stream of fully franked dividends, provide capital growth and preserve capital. All major platforms provide access to WAM Capital, including Asgard eWRAP Investment, BT Panorama, BT Wrap, Colonial First State FirstWrap, Hub24, IOOF Pursuit Select Investment Service, Macquarie Investment Manager / Consolidator, MLC Wrap IDPS and SMS, Netwealth Wrap and North Investment. WAM Capital receives coverage from the following independent investment research providers: This announcement has been authorised by the Board of WAM Capital Limited. About Wilson Asset Management Wilson Asset Management has a track record of making a difference for shareholders and the community for 27 years. As the investment manager for eight leading LICs: WAM Capital (ASX: WAM), WAM Leaders (ASX: WLE), WAM Global (ASX: WGB), WAM Microcap (ASX: WMI), WAM Alternative Assets (ASX: WMA), WAM Research (ASX: WAX), WAM Active (ASX: WAA) an d WAM S trategic Value (ASX: WAR); and two unlisted funds: Wilson Asset Management Leaders Fund and Wilson Asset Management Founders Fund, Wilson Asset Management invests over $5.9 billion on behalf of more than 130,000 retail and wholesale investors. Wilson Asset Management created and is the lead supporter of the first LICs to deliver both investment and social returns: Future Generation Australia (ASX: FGX) and Future Generation Global (ASX: FGG), as well as Future Generation Women. Wilson Asset Management advocates and acts on behalf of retail investors, is a member of the global philanthropic Pledge 1% movement, is a significant funder of many Australian charities and provides all team members with $10,000 each year to donate to charities of their choice. All philanthropic investments are made by Wilson Asset Management and not the LIC. >$5.9 billion in funds under management >200 Years combined investment experience 27 Years making a difference for shareholders 11 investment products For more information visit www.wilsonassetmanagement.com.au or contact: Geoff Wilson AO Chairman & Chief Investment Officer (02) 9247 6755 Kate Thorley Chief Executive Officer (02) 9247 6755 Jesse Hamilton Chief Financial Officer (02) 9247 6755 0401 944 807 Camilla Cox Corporate Affairs Manager (02) 9247 6755 0407 407 062