Slides
Page 1
FY2026 Results and Dividend Q&A Webinar Geoff Wilson AO Chairman and Chief Investment Officer Oscar Oberg Lead Portfolio Manager Watch the recording
Page 2
2 Disclaimer Wilson Asset Management and their related entities and each of their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good faith. However, no warranty (express or implied) is made as to the accuracy, completeness or reliability of any statements, estimates or opinions or other information contained in these materials (any of which may change without notice) and to the maximum extent permitted by law, the Disclosers disclaim all liability and responsibility (including, without limitation, any liability arising from fault or negligence on the part of any or all of the Disclosers) for any direct or indirect loss or damage which may be suffered by any recipient through relying on anything contained in or omitted from these materials. This information has been prepared and provided by Wilson Asset Management. To the extent that it includes any financial product advice, the advice is of a general nature only and does not take into account any individual’s objectives, financial situation or particular needs. Before making an investment decision an individual should assess whether it meets their own needs and consult a financial advisor.
Page 3
3 15.5 cps 7.75 cps Full year dividend, 60% franked Final dividend, 60% franked FY2026 full year dividend Dividend overview FY2026 Ex-dividend date 8 October 2026 Payment date 21 October 2026 Key dividend dates 7 yr %pa WAM Capital Investment Portfolio* 8.5% S&P/ASX All Ordinaries Accumulation Index 8.1% Outperformance +0.4% S&P/ASX Small Ordinaries Accumulation Index 5.5% Outperformance +3.0% S&P/ASX Small Industrials Accumulation Index 3.2% Outperformance +5.3% Investment portfolio performance since COVID *At 30 June 2026. Investment portfolio performance is before expenses, fees, taxes and the impact of capital management initiatives to compare to the relevant indices which are before expenses, fees and taxes. 15.9% WAM Capital FY2026 Dividend Yield on NTA (gross) 4.4% S&P/ASX All Ordinaries Accumulation Index Yield (gross)
Page 4
4 8.0 cps 4.0 cps + 4.0 cps Full year dividend target, 60% franked Interim dividend target, 60% franked Final dividend target, 60% franked 6.5% 8.2% FY2027 full year dividend target yield on 1 September 2026 share price * FY2027 grossed-up dividend target yield on 1 September 2026 share price* FY2027 full year dividend target Dividend overview FY2027 target *Based on the 1 September 2026 share price of $1.24 per share and the FY2027 full year dividend target of 8.0 cents per share, partially franked at 60%. Grossed-up dividend yield includes the value of franking credits and is based on a tax rate of 30%. ^Investment portfolio performance is before expenses, fees, taxes and the impact of capital management initiatives. The investment portfolio performance and profits reserve at 31 August 2026 are estimated only. The profits reserve is based solely on the investment portfolio performance. The August 2026 investment update, including the final profits reserve will be announced to the market on or before 14 September 2026. 5.7 cps Estimated profits reserve at 31 August 2026, after the payment of FY2026 final dividend ^
Page 5
5 Dividends since inception 2026/27 0.0 2.0 4.0 6.0 8.0 10.0 12.0 14.0 16.0 1999/00 2001/02 2003/04 2005/06 2007/08 2009/10 2011/12 2013/14 2015/16 2017/18 2019/20 2021/22 2023/24 2025/26 Ordinary fully franked dividend Special fully franked dividend Equal access share buy-back Ordinary partially franked dividend FY2027 dividend target Cents per share 478.0 cps dividends paid since inception, when including the value of franking credits
Page 6
6 $1.84 $1.22 +$0.93 +$0.11 $1.41 $0.09 $0.12 $0.04 Start of FY2020 Portfolio performance Capital raising accretion Dividends paid including franking credits (tax paid) Performance fees Management fees Company related and other corporate activity costs 30 June 2026 NTA (pre tax) Portfolio performance WAM Capital pre-tax net tangible assets (NTA) movement since COVID Dividends paid to shareholders 108.5cps Franking credits generated 32.5cps
Page 7
7 Share price discount/premium to NTA over 27 years -40% -30% -20% -10% 0% 10% 20% 30% 40% 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026IPO
Page 8
8 Listed investment company Ticker Pre-tax NTA 31 July 2026 Share Price 1 September 2026 Premium/ (Discount) to NTA Profits reserve (cps) 31 July 2026 FY2026 final dividend (cps) Profits reserve ex-div (cps) Dividend coverage (years) WAM $1.212 $1.24 2% 13.3 cents 7.75 5.6 cents 0.7 years (based on FY27 target) WLE $1.323 $1.33 1% 28.3 cents 4.8 23.5 cents 2.4 years WGB $2.158 $2.11 (2%) 68.3 cents 6.6 61.7 cents 4.7 years WMI $1.157 $1.39 20% 49.8 cents 5.35 44.5 cents 4.2 years WMX $1.663 $1.625 (2%) 8.8 cents Sep - Dec 0.65, 0.66, 0.67, 0.68 5.5 cents Monthly income* WMA $1.185 $0.99 (16%) 14.3 cents 3.0 11.3 cents 1.9 years WAR $1.264 $1.145 (9%) 21.3 cents 3.25 18.1 cents 2.8 years WAX $0.745 $0.885 19% 41.4 cents 5.0 36.4 cents 3.6 years WAA $0.955 $1.07 12% 25.0 cents 3.2 + 2.0 special 19.8 cents 3.1 years^ Profits reserve and dividend coverage *WAM Income Maximiser (WMX) pays monthly dividends and receives substantial recurring income from its corporate debt portfolio, reducing its reliance on accumulated profits reserves relative to the Group's predominantly equity-based LICs. As such, WMX has a different profits reserve accumulation dynamic compared to semi-annual dividend-paying LICs. Accordingly, profits reserve and dividend coverage metrics should be considered in the context of WMX’s investment strategy and income profile and are not directly comparable to those of the other LICs presented. ^Based on the FY2026 fully franked full year dividend of 6.4 cents per share, excluding the special fully franked dividends of 3.0 cents per share.
Page 9
FY2026 Portfolio Performance
Page 10
10 FY2026 macro headwinds impacting small-to-medium industrial companies on the ASX Interest rate cutting cycle reversed into an interest rate hiking cycle Geopolitical risks fueling inflation and driving up commodity prices and energy costs Artificial intelligence impacting the perceived long-term terminal value of small-cap companies Federal budget and policies around capital gains tax and negative gearing
Page 11
11 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 -40 -20 0 20 40 60 80 100 120 140 160 180 RBA Cash Rate Cumulative return 2010 – 2018 – rate cutting cycle S&P/ASX Small Industrials Accumulation Index S&P/ASX All Ordinaries Accumulation Index Australia RBA Cash Rate Target All Ords vs Small Industrials – through rate cutting cycle Cumulative total return (left axis) vs RBA cash rate (right axis) Source: S&P/ASX All Ordinaries & Small Industrials Accumulation Indices and RBA. Index series are cumulative total return (gross dividends) rebased to 0% at the start of each period.
Page 12
12 0 0.5 1 1.5 2 2.5 3 3.5 4 4.5 5 -40 -20 0 20 40 60 80 100 120 140 160 180 RBA Cash Rate Cumulative return 2019 –2026 - cuts, then rate hiking S&P/ASX Small Industrials Accumulation Index S&P/ASX All Ordinaries Accumulation Index Australia RBA Cash Rate Target All Ords vs Small Industrials – through rate hiking cycle Cumulative total return (left axis) vs RBA cash rate (right axis) Source: S&P/ASX All Ordinaries & Small Industrials Accumulation Indices and RBA. Index series are cumulative total return (gross dividends) rebased to 0% at the start of each period.
Page 13
13 1 Decade -low valuations Small-cap industrial companies are trading at decade-low valuations, with several companies in our portfolio now trading below asset backing — e.g. Cedar Woods, Harvey Norman. 2 Standout reporting season The best reporting season we have had for some time, with 70% of our 60 companies within WAM Capital beating earnings expectations. 3 Takeover wave just beginning We have seen several takeovers of industrial companies in the past three months, which is similar to what we saw in 2022. 4 Rate cycle nearing its peak Outlook commentary from industrial companies was soft, suggesting the interest rate hiking cycle in Australia is nearing completion. Four reasons the long-term outlook for undervalued small-cap industrials is improving Positive signs for small-cap companies
Page 14
14 Financial Year WAM Capital investment portfolio performance FY2020 -2.8% Investment portfolio performance in the 12 months to 30 June 2020 FY2021 +37.5% Investment portfolio performance in the 12 months to 30 June 2021 FY2022 -18.8% Investment portfolio performance in the 12 months to 30 June 2022 FY2023 +18.2% Investment portfolio performance in the 12 months to 30 June 2023 FY2024 +26.4% Investment portfolio performance in the 12 months to 30 June 2024 FY2025 +22.2% Investment portfolio performance in the 12 months to 30 June 2025 FY2026 -10.5% Investment portfolio performance in the 12 months to 30 June 2026 Investment portfolio performance is before expenses, fees, taxes and the impact of capital management initiative s. Historical Investment Portfolio Performance
Page 15
15 Get in touch info@wilsonassetmanagement.com.au (02) 9247 6755 www.wilsonassetmanagement.com.au Q&A Join 100,000 weekly readers