Annual report
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WAM MICROCAP LIMITED ABN 34 617 838 418 Appendix 4E Preliminary Final Report for the year ended 30 June 2026 Results for Announcement to the Market All comparisons to the year ended 30 June 2025 $ up/down % mvmt Revenue from ordinary activities 3,226,966 down 95.3% Loss from ordinary activities before income tax expense (2,404,157) down 104.0% Net loss from ordinary activities after income tax expense (141,974) down 100.3% Dividend information Cents per share Franking % Tax rate for franking 2026 Final dividend cents per share 5.35c 100% 30% 2026 Interim dividend cents per share 5.35c 100% 30% Final dividend dates Ex-dividend date 16 October 2026 Record date 19 October 2026 Last election date for the DRP 21 October 2026 Payment date 29 October 2026 Dividend Reinvestment Plan The Dividend Reinvestment Plan (‘DRP’) is in operation and the recommended fully franked final dividend of 5.35 cents per share qualifies. Participating shareholders will be entitled to be allotted the number of shares (rounded down 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 over the four trading days commencing on the ex-dividend date for the relevant dividend. The DRP will operate with a 2.5% discount for the final dividend. 30 Jun 26 30 Jun 25 Net tangible asset backing (before tax) per share $1.28 $1.43 Net tangible asset backing (after tax) per share $1.31 $1.41 This report is based on the Annual Report which has been audited by Pitcher Partners Sydney. The audit report is included with the Company’s Annual Report which accompanies this Appendix 4E. All the documents comprise the information required by Listing Rule 4.3A.
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2026 Annual Report
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2 WAM Microcap Annual Report 2026 ABN 34 617 838 418 WAM Microcap Limited (WAM Microcap or the Company) is a listed investment company and is a reporting entity. Listed on the ASX in June 2017, WAM Microcap provides investors access to a portfolio of undervalued micro-cap growth companies with a market capitalisation of less than $300 million at the time of acquisition.
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wilsonassetmanagement.com.au 3 Contents 04 FY2026 financial highlights 07 Chairman’s letter 19 Lead Portfolio Manager update 23 Investment objectives and process 24 About Wilson Asset Management 29 Directors’ Report to shareholders 43 Auditor’s Independence Declaration 44 Consolidated entity disclosure statement 45 Statement of Comprehensive Income 46 Statement of Financial Position 47 Statement of Changes in Equity 48 Statement of Cash Flows 49 Notes to the financial statements 67 Directors’ Declaration 68 Independent Auditor’s Report 73 Investments at fair value 75 ASX additional information 76 Glossary 79 Corporate Directory
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4 WAM Microcap Annual Report 2026 ABN 34 617 838 418 10.7% WAM Microcap’s investment portfolio has returned 14.4% per annum since inception, outperforming the Index by 7.4% per annum. Notes: 1. The above graph reflects the period from inception in June 2017 to 30 June 2026. 2. WAM Microcap’s investment portfolio performance is before expenses, fees and taxes to compare to the S&P/ASX Small Ordinaries Accumulation Index which is also before expenses, fees and taxes. - 50 100 150 200 250 300 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 Index re-based WAM Microcap Investment Portfolio S&P/ASX Small Ordinaries Accumulation Index FY2026 financial highlights Investment portfolio performance pa since inception (Jun-17) +14.4% Fully franked full year dividend 10.7 cps Fully franked dividend yield 7.5% Grossed-up dividend yield: Dividends paid since inception, including franking credits 115.3 cps
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wilsonassetmanagement.com.au 5 Glossary of performance measures The key measures used to analyse and discuss our results are defined here to guide the reader through the FY2026 financial highlights, the Letter from the Chairman, and the Update from the Lead Portfolio Manager. A full glossary of terms is also located on pages 76 to 78. Dividend yield The annual dividend amount expressed as a percentage of the share price at a certain point in time. This is calculated as follows: Annual dividend amount per share ÷ share price Grossed-up dividend yield Grossed-up dividend yield includes the value of franking credits and is based on the corporate tax rate (generally 30.0%), assuming the dividend is fully franked. This is calculated as follows: Annual dividend yield % ÷ (1 – the corporate tax rate of 30.0%) Net tangible assets (NTA) before tax The NTA of a company, exclusive of current and deferred income tax assets or liabilities. The NTA before tax represents the investment portfolio of the Company, i.e. cash and investments, less any associated liabilities excluding tax and is the most comparable figure for a listed investment company (LIC) to an exchange traded fund (ETF) or managed fund. Share price premium or discount LIC’s shares are traded on the ASX and a LIC has a fixed amount of capital. At times, the LIC’s share price can fluctuate above or below its NTA value. When the share price is above the NTA of the company, the LIC is trading at a premium to NTA. When the share price is below the NTA, the LIC is trading at a discount to NTA. This is calculated as follows: (Share price – NTA before tax) ÷ NTA before tax Total shareholder return (TSR) Total share price return to shareholders, assuming all dividends received were reinvested without transaction costs and the compounding effect over the period. This measure is calculated before and after the value of franking credits attached to dividends paid to shareholders. This is calculated as follows: (Closing share price – starting share price + dividends paid + franking credits) ÷ starting share price Note: the TSR reported in the Annual Report and media release is calculated monthly, using the above formula, and includes the effect of compounding over the period. Assets $360.9m Market capitalisation $403.7m Dividends paid since inception, including franking credits $251.2m NTA before tax $1.28 per share Share price $1.435 per share 30 June 2026 snapshot
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6 WAM Microcap Annual Report 2026 ABN 34 617 838 418
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wilsonassetmanagement.com.au 7 Letter from the Chairman Geoff Wilson AO Dear Fellow Shareholders, FY2026 was a challenging year for WAM Microcap, with the investment portfolio underperforming the S&P/ASX Small Ordinaries Accumulation Index for the first time since inception. While the result was below our expectations, it is important to maintain a long-term perspective when assessing investment portfolio performance. In the 12 months to 30 June 2026, the WAM Microcap investment portfolio increased 0.1%, while the S&P/ASX Small Ordinaries Accumulation Index rose 8.1%. The WAM Microcap investment process is focused on identifying and investing in undervalued growth companies in the Australian micro-cap market, with a market capitalisation of less than $300 million at the time of acquisition. Since listing in June 2017, the WAM Microcap investment portfolio has returned 14.4% per annum, outperforming the S&P/ASX Small Ordinaries Accumulation Index by 7.4% per annum. The Company has generated a total shareholder return of 9.1% per annum since inception, or 11.8% per annum when including the value of franking credits. A key objective of WAM Microcap is to provide shareholders with a stream of fully franked dividends while preserving capital and delivering long-term capital growth. The Board declared a fully franked final dividend of 5.35 cents per share, bringing the fully franked full year dividend to 10.7 cents per share. Based on the 30 June 2026 share price, this represents a fully franked dividend yield of 7.5% and a grossed-up dividend yield of 10.7%, including the value of franking credits. Since inception, WAM Microcap has paid shareholders 80.7 cents per share in fully franked dividends, or 115.3 cents per share when including the value of franking credits. Investment portfolio performance pa since inception (Jun -17)* +14.4% Fully franked full year dividend 10.7 cps Fully franked dividend yield 7.5% Grossed -up dividend yield 10.7% *Investment portfolio performance is before expenses, fees and taxes to compare to the relevant index which is also before expenses, fees and taxes.
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8 WAM Microcap Annual Report 2026 ABN 34 617 838 418 One of the key benefits of the listed investment company (LIC) structure is the ability to retain profits generated during stronger investment periods and utilise those reserves to support dividends through varying market conditions. The ability of the Company to continue paying fully franked dividends at current levels is dependent on future investment portfolio performance, the receipt of franked dividends from investee companies and the payment of tax on realised profits. As at 30 June 2026, the Company had a franking account balance of 11.4 cents per share. Over nearly three decades, Wilson Asset Management has invested through numerous market cycles, economic disruptions and periods of uncertainty. While short-term outcomes will inevitably vary from year to year, our experience continues to reinforce the value of patience, discipline and maintaining a long-term investment horizon. We remain focused on identifying undervalued companies, preserving capital and delivering long- term value for shareholders through investment portfolio performance and fully franked dividends. For the year ended 30 June 2026, the Company recorded an operating loss before tax of $2.4 million (FY2025: operating profit before tax of $59.7 million) and an operating loss after tax of $0.1 million (FY2025: operating profit after tax of $43.6 million). The after tax figure includes a $2.3 million income tax benefit, primarily delivered through franking credits received on franked dividend income from investee companies and the tax benefit on the operating loss for the year. Despite the challenges experienced during the 2026 financial year, the Board remains confident in the investment team’s disciplined investment approach and long-term track record. Markets, sectors and investment styles move in cycles, and we believe the portfolio is well positioned to benefit should conditions become more supportive for undervalued micro-cap growth companies. We remain focused on delivering long- term value for shareholders, both through investment portfolio performance and sustainable income outcomes. We encourage you to visit our website, subscribe to receive our updates and to call or email us with any questions or suggestions you have regarding WAM Microcap or Wilson Asset Management. Please contact me or the team on (02) 9247 6755 or email us at info@wilsonassetmanagement.com.au . Thank you for your continued support. Geoff Wilson AO Chairman
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wilsonassetmanagement.com.au 9 Company performance Over four decades of investing, we have found three key measures crucial to the evaluation of a listed investment company’s (LIC) performance: Key performance measure 1 Investment portfolio performance Key performance measure 2 Net tangible asset growth Key performance measure 3 Total shareholder return Investment portfolio performance measures the movement of the underlying portfolio of equities and cash before expenses, fees and taxes. Each LIC is driven towards outperforming a benchmark index, or increasing the underlying investment portfolio of equities and cash at a faster rate. NTA growth is the change in value of the company’s assets, less liabilities and costs (after management and performance fees). The NTA growth includes dividends paid to shareholders and tax paid (franking credits), demonstrates the value of the investment portfolio performance and quantifies the impact of capital management decisions. TSR measures the tangible value shareholders gain from share price growth and dividends paid over the period, before and after the value of any franking credits distributed to shareholders through fully franked dividends.
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10 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Key performance measure 1 Investment portfolio performance Investment portfolio performance measures the movement of the underlying portfolio of equities and cash before expenses, fees and taxes, and is compared against the S&P/ASX Small Ordinaries Accumulation Index, which is also measured before expenses, fees and taxes. WAM Microcap’s investment portfolio increased 0.1% in the year to 30 June 2026, while the S&P/ASX Small Ordinaries Accumulation Index rose 8.1%. The average cash weighting of the investment portfolio during the period was 9.1%. Since inception, WAM Microcap has achieved an investment portfolio return of 14.4% per annum, outperforming the S&P/ASX Small Ordinaries Accumulation Index by 7.4% per annum. Set out on the next page is the performance of WAM Microcap since inception, on a financial year basis. The performance data excludes all expenses, fees and taxes, and is used as a guide to show how the Company’s investment portfolio has performed against the S&P/ASX Small Ordinaries Accumulation Index over the same period. Investment portfolio performance in the financial year to 30 June 2026 +0.1%
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wilsonassetmanagement.com.au 11 WAM Microcap investment portfolio performance since inception Investment portfolio performance at 30 June 2026 1 yr 3 yrs %pa 5 yrs %pa 7 yrs %pa Since inception %pa (Jun-17) WAM Microcap Investment Portfolio 0.1% 13.0% 7.0% 13.4% 14.4% S&P/ASX Small Ordinaries Accumulation Index 8.1% 9.9% 3.0% 5.5% 7.0% Outperformance -8.0% +3.1% +4.0% +7.9% +7.4% Investment portfolio performance is before expenses, fees and taxes to compare to the relevant index which is also before expenses, fees and taxes. Investment portfolio performance by financial year Financial year WAM Microcap Investment Portfolio S&P/ASX Small Ordinaries Accumulation Index Outperformance 2017/2018 31.2% 24.2% +7.0% 2018/2019 7.3% 1.9% +5.4% 2019/2020 11.8% -5.7% +17.5% 2020/2021 53.2% 33.2% +20.0% 2021/2022 -16.8% -19.5% +2.7% 2022/2023 16.9% 8.4% +8.5% 2023/2024 21.6% 9.3% +12.3% 2024/2025 18.8% 12.3% +6.5% 2025/2026 0.1% 8.1% -8.0%
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12 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Key performance measure 2 Net tangible asset growth NTA growth is the change in value of the Company’s assets, less liabilities and costs (including management and performance fees). The NTA represents the realisable value of the Company and is provided to shareholders and announced on the ASX each month. WAM Microcap’s pre-tax NTA decreased 1.1% in the 12 months to 30 June 2026, including 10.65 cents per share of fully franked dividends paid to shareholders during the year and corporate tax paid of 3.7 cents per share or 2.6%. The franking credits attached to corporate tax payments are available for distribution to shareholders through fully franked dividends. Items contributing to the difference between the investment portfolio performance of 0.1% and the NTA decrease of 1.1% were management fees of 1.0% and other company related expenses of 0.2%. NTA growth in the financial year to 30 June 2026 -1.1%
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wilsonassetmanagement.com.au 13 WAM Microcap pre-tax NTA performance +$0.005 Portfolio performance Investment portfolio performance measures the movement of the underlying portfolio of equities and cash before expenses, fees and taxes. The WAM Microcap investment portfolio increased 0.1% for the 12 months to 30 June 2026, increasing the NTA by 0.5 cents per share. $0.1065 Dividends paid to shareholders When the Company pays a dividend, it represents income that is returned to shareholders out of the Company’s assets and profits reserve. The dividend payment reduces the Company's NTA when paid. This excludes the value of franking credits attached to the dividend payment for shareholders. During the year, 10.65 cents per share of fully franked dividends were paid or 15.2 cents per share including the value of franking credits, comprising of the FY2025 fully franked final dividend of 5.3 cents per share and the FY2026 fully franked interim dividend of 5.35 cents per share. $0.037 Franking credits generated (tax paid) Tax paid reduces the pre-tax NTA of the Company, as it represents an outflow of cash from the investment portfolio at the time of payment. Shareholders receive the benefit of tax paid by the Company as franked dividend payments are made. Shareholders receive the cash dividend, plus the value of the attached franking credits. Shareholders can use these credits to help offset additional tax payable on their taxable income, or have it refunded to them if their tax rate is lower than the 30% franking rate (corporate tax rate) attached to the dividend. $0.014 Management fees In return for its duties as Investment Manager of the portfolio, the Investment Manager is entitled to be paid monthly a management fee equal to 0.0833334% per month or 1% per annum (plus GST) of the value of the portfolio (calculated on the last business day of each month and paid at the end of each month in arrears). $0.002 Company expenses paid Company related expenses include ASX, ASIC, Director, audit, tax, accounting, Company Secretary, registry fees and other expenses incurred that relate to the operation of the Company each year. $1.43 30 June 2025 NTA before tax $1.28 30 June 2026 NTA before tax Paid to shareholders as fully franked dividends
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14 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Key performance measure 3 Total shareholder return TSR measures the tangible value shareholders gain from share price growth and dividends paid over the period, before and after the value of any franking credits distributed to shareholders through fully franked dividends. The TSR for WAM Microcap was 9.2% during the 12 months to 30 June 2026, including the value of franking credits distributed to shareholders through fully franked dividends. This was primarily driven by the increase in the share price premium to NTA from 1.1% as at 30 June 2025 to 12.0% as at 30 June 2026. Excluding the value of franking credits, TSR was 6.1% for the year. TSR in the financial year to 30 June 2026 +9.2% NTA growth and TSR calculations The table below reflects the Company’s total return to shareholders calculated on a per share basis by adding back dividends paid (including the value of tax paid or franking credits) to the change in the NTA before tax or share price during the year. The dividends are assumed to have been re-invested at the relevant net asset value or share price, respectively, on the date on which the shares were quoted ex-dividend. The movement in the NTA before tax is driven by the investment portfolio performance, with TSR being added or offset by the increase or narrowing in the share price premium or discount to NTA. 2026 NTA before tax Share price Premium to NTA At 30 June 2026 $1.2808 $1.435 12.0% At 30 June 2025 $1.4339 $1.45 1.1% Change in the year (capital) (10.7%) (1.0%) Impact of dividend reinvestments (income) 7.0% 7.1% Impact of tax paid/value of franking credits (income) 2.6% 3.1% Total return for the year (1.1%) 9.2%
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wilsonassetmanagement.com.au 15 Growth of a $10,000 investment WAM Microcap is focused on delivering long-term value for shareholders through a combination of fully franked dividend income, capital growth and the preservation of capital. The chart below demonstrates the power of long-term compounding through the reinvestment of dividends. It illustrates how an investment in WAM Microcap has grown over the past 9 years when all dividends, including the value of franking credits, have been reinvested. An investor who invested $10,000 in WAM Microcap at its inception in June 2017 and reinvested all dividends, including the value of franking credits, would have accumulated an investment valued at $24,922 as at 30 June 2026. Notes: 1. The above graph reflects the period from inception in June 2017 to 30 June 2026. 2. WAM Microcap’s share price performance is calculated using the adjusted closing monthly share price from IRESS, in Australian dollar terms. The closing monthly share price from IRESS is adjusted for corporate actions such as stock splits, dividends and rights offerings. 3. The S&P/ASX Small Ordinaries Accumulation Index has been chosen for comparison purposes only. The graph is not intended to be an indication of future performance of any asset class, index or the WAM Microcap investment portfolio. 4. Dividends are assumed to be reinvested through the Company's Dividend Reinvestment Plan (DRP) at the applicable DRP price. Franking credits are not reinvested under the DRP; their value is notionally included in the return on the same basis and at the same date, assuming the full value of franking credits. $9,000 $12,000 $15,000 $18,000 $21,000 $24,000 $27,000 $30,000 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 $24,922 WMI share price plus dividends and franking credits $20,575 WMI share price plus dividends $18,564 S&P/ASX Small Ordinaries Accumulation Index $13,046 WMI share price no dividends, no franking credits
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16 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Dividends Dividends paid since inception, including franking credits 115.3 cps The Board declared an increased fully franked full year dividend of 10.7 cents per share, with the fully franked final dividend being 5.35 cents per share. Since inception in June 2017, the Company has paid 80.7 cents per share in fully franked dividends to shareholders and 115.3 cents per share, including the value of franking credits. The Board is committed to paying a stream of fully franked dividends to shareholders, provided the Company has sufficient profits reserves and franking credits, and it is within prudent business practices. At 30 June 2026, the Company had 4.7 years of dividend coverage, based on the profits reserve of 49.8 cents per share, before the payment of the fully franked final dividend of 5.35 cents per share. The Dividend Reinvestment Plan (DRP) is available to shareholders and the recommended fully franked final dividend of 5.35 cents per share qualifies. Participating shareholders will be entitled to be allotted the number of shares (rounded down 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 over the four trading days commencing on the ex-dividend date for the relevant dividend. Dividends are paid on a six-monthly basis and the DRP will operate with a 2.5% discount for the fully franked final dividend. Fully franked full year dividend 10.7 cps Fully franked dividend yield 7.5% Grossed-up dividend yield 10.7%
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wilsonassetmanagement.com.au 17 Since inception, WAM Microcap has returned over $251.2 million or 115.3 cents per share in dividends and franking credits to shareholders. WAM Microcap fully franked dividends since inception Key dividend dates for the fully franked final dividend of 5.35 cents per share Ex-dividend date 16 October 2026 Dividend record date (7:00pm Sydney time) 19 October 2026 Last election date for DRP 21 October 2026 Payment date 29 October 2026 Cents per share 2.0 2.25 3.0 4.0 5.0 5.25 5.25 5.3 5.352.0 2.25 3.0 4.0 5.0 5.25 5.25 5.3 5.35 2.0 2.25 3.0 4.0 - 2.0 4.0 6.0 8.0 10.0 12.0 2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25 2025/26 Fully franked interim dividend Fully franked final dividend Special fully franked dividend
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18 WAM Microcap Annual Report 2026 ABN 34 617 838 418
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wilsonassetmanagement.com.au 19 Following eight consecutive years of outperformance since the Company’s initial public offering (IPO) in June 2017, WAM Microcap underperformed the S&P/ASX Small Ordinaries Accumulation Index by 8.0% for the 12 months to 30 June 2026, increasing 0.1% over the period. The investment portfolio underperformance was primarily driven by limited exposure to resources companies during a period of exceptionally strong performance from the sector, combined with stock selection that was not at the level we expect of ourselves. The WAM Microcap investment portfolio maintained an average exposure of approximately 6.1% to resources companies, compared with 34.0% for the S&P/ASX Small Ordinaries Accumulation Index. As the S&P/ASX Small Resources Accumulation Index increased 30.7% while the S&P/ASX Small Industrials Accumulation Index declined 0.9% for the 12 months to 30 June 2026, this positioning had a meaningful impact on relative performance. While the cyclical nature of the resources market proved challenging this year, it can also become a tailwind during periods of weaker commodity markets. WAM Microcap invests predominantly in companies with a market capitalisation of less than $300 million, where liquidity can be limited and a medium-to-long term investment horizon is required. The 2026 financial year was one of the most challenging environments the investment team has experienced, with market outcomes often driven by macroeconomic developments rather than company fundamentals. The 2026 financial year can be broadly characterised into three distinct periods. The four months to 31 October 2025 were positive, supported by easing global inflation and improving investor sentiment. Companies such as Generation Development Group (ASX: GDG), FINEOS Corporation Holdings (ASX: FCL) and GenusPlus Group (ASX: GNP) were strong contributors to the investment portfolio performance. Conditions changed rapidly in November 2025 following a higher-than-expected inflation outcome in Australia, shifting expectations from interest rate cuts to increases. Investors rotated away from interest rate-sensitive sectors such as information technology and real estate and towards resources. This divergence created a substantial headwind for the investment portfolio and was reflected in the market, with the S&P/ASX Small Resources Accumulation Index significantly outperforming the S&P/ASX Small Industrials Accumulation Index for the 12 months to 30 June 2026. In the second half of the year, consumer sentiment shifted again due to concerns around inflation, geopolitical risks and the rapid adoption of artificial intelligence (AI). Despite a relatively strong reporting season with many companies delivering earnings ahead of expectations, the investment portfolio continued to underperform as macroeconomic factors continued to dictate market outcomes. Conditions began to stabilise towards the end of the financial year, with small-cap industrial companies showing early signs of recovery in June 2026 as the Reserve Bank of Australia paused the tightening cycle and geopolitical risks eased. Update from the Lead Portfolio Manager Oscar Oberg, CFA
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20 WAM Microcap Annual Report 2026 ABN 34 617 838 418 In prior periods of market disruption, such as 2020 and 2022, the investment team has relied on stock selection to identify undervalued and under- researched companies capable of maintaining performance in challenging conditions. While external factors influenced investment portfolio performance in the 2026 financial year, we do not attribute the results solely to market conditions. A number of larger holdings, including technology companies EML Payments (ASX: EML) and Gentrack Group (ASX: GTK), reported results below expectations and experienced significant share price declines, weighing on the investment portfolio’s performance. Pharmacy wholesaler Paragon Care (ASX: PGC) delivered disappointing results in August 2025 and, following a series of acquisitions that strained its balance sheet, we exited the position in December 2025. Furthermore, our largest position, telecommunications company Tuas (ASX: TUA), was impacted by an unexpected breach of radio frequency bands that prevented a proposed transaction with M1 Limited from proceeding. Unlike the prior year, when takeover activity contributed meaningfully to returns, the investment portfolio did not benefit from material corporate activity during the 2026 financial year. Encouragingly, proposed transactions involving Steadfast Group (ASX: SDF) and oOh!media (ASX: OML) suggest strategic and private equity buyers continue to recognise value across parts of the Australian small-cap market, consistent with the opportunities we see today. Diversified investment portfolio by sector at 30 June 2026 • Industrials: 22.0% Consumer discretionary: 15.8% Information technology: 14.7% • Financials: 14.4% • Health care: 9.4% • Materials: 7.7% • Real estate: 2.5% • Utilities: 2.3% • Consumer staples: 1.8% • Communication services: 1.2% • Energy: 0.1% • Cash: 8.1% 22.0% 15.8% 14.7% 14.4% 9.4% 7.7% 2.5% 2.3% 1.8% 1.2% 0.1% 8.1%
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wilsonassetmanagement.com.au 21 As we enter the 2027 financial year, we believe the investment portfolio is well positioned. Concerns around widespread disruption from AI are moderating, geopolitical risks have eased and the Australian interest rate cycle appears to be nearing completion. Many of the sectors most impacted during the 2026 financial year, including consumer discretionary, health care and information technology, are beginning to show signs of improvement. We continue to identify compelling opportunities across the micro-cap space and remain confident that a number of our holdings are trading below their intrinsic value despite continuing to deliver solid operational outcomes. Civmec (ASX: CVL) is a founder-led mining services company focused on structural and mechanical engineering. The business is benefitting from a positive outlook for infrastructure spending, with large projects such as Iluka Resources’ (ASX: ILU) Eneabba Rare Earths Refinery expected to support Civmec’s longer-term results. We believe Civmec’s Henderson facility positions the company well to win major defence-related projects, and we do not believe these opportunities are reflected in the current share price. SkinKandy (ASX: SK1) is a retailer specialising in piercing and jewellery accessories. Following its recent IPO in May 2026, we see significant opportunities for store rollouts across Australia and internationally. The business operates in a fragmented market and has demonstrated strong early execution, with parallels to other successful Australian retail growth stories such as Lovisa Holdings (ASX: LOV). Stealth Group Holdings (ASX: SGI) is a founder-led business-to-business wholesaling and distribution company focused on the hardware and industrial safety sectors. Through the acquisition of Hardware & Building Traders in November 2025, Stealth Group Holdings is expanding its ability to provide centralised ordering and distribution services to independent businesses, improving efficiency and scale. The company is on track to achieve their ambitious FY2028 target of $500 million in sales and an earnings before interest, taxes, depreciation and amortisation (EBITDA) margin of 8% to 12%. We believe the current valuation does not fully reflect the company’s earnings potential, particularly if the company executes successfully against this strategy. Maintaining a disciplined investment process and taking a long-term approach, we remain confident in the outlook for improved investment portfolio performance in the 2027 financial year. Many of the WAM Microcap investment portfolio holdings continue to deliver sound operational outcomes despite recent share price weaknesses, and we believe valuation opportunities across the micro-cap space remain compelling. On behalf of the investment team, I thank shareholders for their continued support. Oscar Oberg, CFA Lead Portfolio Manager
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22 WAM Microcap Annual Report 2026 ABN 34 617 838 418 WAM Microcap top 20 holdings with portfolio weightings at 30 June 2026 Code Company name % EDU EDU Holdings Limited 2.9% AYA Artrya Limited 2.8% EIQ Echo IQ Limited 2.7% FRS Forrestania Resources Limited 2.7% SGI Stealth Group Holdings Limited 2.6% FCL FINEOS Corporation Holdings plc 2.6% KGN Kogan.com Limited 2.6% IMR Imricor Medical Systems Inc. 2.6% CWP Cedar Woods Properties Limited 2.5% IPG IPD Group Limited 2.3% EOL Energy One Limited 2.2% COG COG Financial Services Limited 2.1% WGN Wagners Holding Company Limited 2.1% IDX Integral Diagnostics Limited 2.1% BLX Beacon Lighting Group Limited 2.0% SHAZ US SharonAI Holdings Inc. 1.8% GNP GenusPlus Group Limited 1.8% SK1 SkinKandy Limited 1.7% SYL Symal Group Limited 1.7% LGI LGI Limited 1.7% The fair values of individual investments held at the end of the reporting period are disclosed on pages 73 to 74.
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wilsonassetmanagement.com.au 23 Investment objectives The investment objectives of WAM Microcap are to: • deliver investors a stream of fully franked dividends; • provide capital growth over the medium-to- long term; and • preserve capital of the Company. Investment process WAM Microcap provides investors with access to a portfolio of undervalued micro-cap growth companies with a market capitalisation of less than $300 million at the time of acquisition, using Wilson Asset Management’s two distinctive investment processes: • a research-driven process focused on identifying undervalued micro-cap growth companies; and • a market-driven process that takes advantage of mispricing opportunities. Research-driven investing This investment process involves diligent and deep research that focuses on free cash flow, return on equity and the quality of a company. Each company is carefully rated with respect to management, earnings growth potential, valuation and industry position. Under this process, our investment team will only ever invest in a security once we can identify a catalyst or event that we expect will change the market’s valuation of the company. Market-driven investing This investment process takes advantage of short-term mispricing opportunities in the Australian equity market. This part of the investment portfolio is actively traded, and as such, opportunities are derived from initial public offerings, placements, block trades, rights issues, corporate transactions (such as takeovers, mergers, schemes of arrangement, corporate spin- offs and restructures), arbitrage opportunities, LIC discount arbitrages, short-selling and trading market themes and trends. Investment objectives and process Catalyst: a major event that alters the market’s perception of a company or its earnings momentum which will lead to a rerating of the investee company’s share price. Research Driven Process Market Driven Process Catalyst Diligent and deep research on undervalued micro-cap growth companies that focuses on free cash flow, return on equity, meeting management and the quality of a company. Takes advantage of short-term mispricing opportunities in the Australian equity market.
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24 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Wilson Asset Management has been passionate about making a difference for more than 130,000 investors and the Australian community for 29 years. As an investment manager, Wilson Asset Management invests $6.0 billion on behalf of more than 130,000 retail and wholesale investors. Wilson Asset Management is proud to be the Investment Manager for nine leading listed investment companies (LICs), WAM Capital (ASX: WAM), WAM Leaders (ASX: WLE), WAM Global (ASX: WGB), WAM Microcap (ASX: WMI), WAM Income Maximiser (ASX: WMX), WAM Alternative Assets (ASX: WMA), WAM Strategic Value (ASX: WAR), WAM Research (ASX: WAX) and WAM Active (ASX: WAA) and four unlisted funds: Wilson Asset Management Leaders Fund, Wilson Asset Management Founders Fund, Wilson Asset Management Real Assets Fund and Wilson Asset Management Equity Fund. 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. $6.0 billion in funds under management >250 years combined investment experience 29 years making a difference for shareholders 13 investment products About Wilson Asset Management
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wilsonassetmanagement.com.au 25 Philanthropy Geoff Wilson founded Future Generation Australia in 2014 and Future Generation Global in 2015. The Future Generation companies are Australia’s first listed investment companies to provide both investment and social returns. The companies seek to deliver a stream of fully franked dividends, preserve shareholder capital and provide medium- to-long term capital growth for investors by giving them unprecedented access to prominent Australian and global fund managers. These managers generously waive their performance and management fees, which enables the Future Generation companies to donate 1.0% of average net tangible assets each year to their social impact partners and other not-for-profit organisations. To date, the Future Generation companies have donated $100 million to organisations that support at-risk children and youth in Australia. In 2024, Future Generation Women was launched, directing 1.0% of its net assets annually to not-for-profit organisations that advance economic equality and security for women and their children in Australia. The team at Wilson Asset Management continue to be the leading supporter of both companies and Future Generation Women. Wilson Asset Management is a signatory to Pledge 1%, a global philanthropy movement that commits to donating 1% of product, 1% of equity, or 1% of employee time to improve communities around the world. Wilson Asset Management is also a significant funder of many Australian charities, runs a program that allows staff to spend one day each month working in the not- for-profit sector and provides all team members with $10,000 each year to donate to charities of their choice. All philanthropic investments are made by the Investment Manager. Wilson Asset Management also supports a number of organisations across a range of initiatives, and is honoured to provide continued support to Olympic athletes through managing investments on behalf of the Australian Olympic Committee on a pro bono basis. All fees are foregone by the Investment Manager. We also support a number of organisations through sponsorships and partnerships across a range of initiatives including the Australian Shareholder’s Association, Sporting Chance Cancer Foundation, Sydney Women’s Fund, Raise Foundation, Alpine Cycling Club, Bondi2Berry, Morgans Big Dry Friday, Macquarie University Applied Finance Investment and Scholarship Fund and more. All sponsorships and partnerships are paid for by the Investment Manager.
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26 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Advocacy As part of our commitment to delivering value for both shareholders and the broader community, we continue to prioritise advocacy on behalf of retail investors in the Australian equity market. This work is underpinned by our core belief that all Australian investors should be treated equitably. Over the financial year we focused on two key policy areas: 1. Taxing unrealised gains in superannuation Following our work in the previous financial year, we continued to advocate strongly against the Government’s proposal to tax unrealised gains and the failure to index the superannuation threshold of $3 million which was introduced in FY2025. Under the proposed changes, superannuants with balances over $3 million would be required to pay tax on the increase in the value of their assets, even if the assets are not sold and no cash has been generated to fund the tax. A lack of indexation on the $3 million threshold should mean, on our estimates, that 8.1 million Australians, or half of all current superannuants, will be captured by 2053 due to the impact from ‘bracket creep’. In April 2025, we launched a discussion paper ‘Critiquing the Proposed Taxation on Unrealised Gains in Superannuation’. In May 2025, we launched a petition ‘Stand with Us Against Taxing Unrealised Gains’ and invited Australians to call upon the Senate to stop the proposed legislation. In July 2025, we released two further discussion papers to build on this work. 'Taxing Aspiration and Innovation into Oblivion' presented survey and modelling evidence showing that 83% of respondents opposed the tax; that 67% would reduce holdings in start-ups and high growth companies if it proceeded; and that 611,823 Australian companies stood to forgo $19.7 billion in taxation contributions as critical sources of funding were eroded. A separate paper we produced, 'Mapping Electoral Vulnerability Over Taxing Unrealised Gains', used econometric modelling applied to our petition data to demonstrate that opposition to the tax carried measurable electoral force, identifying 30 Labor and Greens-held seats at heightened political risk. Also in July 2025, we made a submission to the Government's Economic Reform Roundtable proposing the Progressive Super Surcharge and Tax Offset as a revenue-positive alternative to Division 296. Our proposal would raise $2.4 billion in revenue by applying a progressive tax on realised gains for superannuation balances above $3 million, without breaching the realisation principle of the tax act or forcing superannuants to sell illiquid assets to meet tax liabilities on unrealised gains. In September 2025, we made a submission to the Productivity Commission's Interim Report for a More Dynamic and Resilient Economy, urging the Commission to recommend against the proposed taxation of unrealised gains on the grounds that it would undermine capital deepening, discourage productive investment and impose significant costs on Australia's innovation ecosystem. We are pleased that in November 2025, the legislation was amended in the Senate, with Division 296 revised to tax only realised gains in superannuation rather than unrealised gains and the $3 million threshold indexed to inflation.
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wilsonassetmanagement.com.au 27 2. Capital gains tax reforms We believe Australia’s tax system should encourage long-term investment, productivity, entrepreneurship and intergenerational opportunity. The Government’s capital gains tax (CGT) changes will discourage long-term investment in Australian businesses, innovation, farms and other productive assets. These changes will make it harder for younger Australians to build financial independence, reduce investment in Australian businesses and innovation, and weaken productivity growth across the economy. In February 2026, we released a Discussion Paper on the CGT review and sent it to the Senate Select Committee on the Operation of the Capital Gains Tax Discount. Our paper proposed a revenue-neutral reform approach that would grandfather the current CGT discount for all existing assets, maintain the discount for new housing that adds to supply, reduce the discount for future purchases of existing residential property and increase the discount for long-term equity investment in Australian operating businesses. The objective was to improve the allocation of capital toward productive investment without using CGT as a revenue-raising instrument. In February 2026, Geoff Wilson appeared before the Senate Select Committee to present our position directly to Senators. Following the Government's announcement in the 2026-27 Budget on 12 May 2026 that it would abolish the 50% CGT discount and replace it with cost base indexation and a 30% minimum tax on capital gains, we launched a petition calling on Australians to oppose the reforms. To date, more than 14,000 people have signed the petition, reflecting the significant concern among Australians about changes that extend far beyond housing and will affect all those seeking to build a better financial future. In June 2026, we made a submission to the Senate Economics Legislation Committee on the Treasury Laws Amendment (Tax Reform No. 1) Bill 2026 and Income Tax Rates Amendment (Tax Reform No. 1) Bill 2026. Our submission argued that the legislation will increase the effective CGT rate for investors on the top marginal rate from 23.5% to as much as 47%, making Australia one of the most punitive CGT jurisdictions in the developed world. We raised serious concerns about the impact on capital allocation, entrepreneurship, small business succession, family farm transfers and the broader innovation ecosystem. We also identified technical flaws in the legislation, including the structural asymmetry created by asset-level indexation without a portfolio netting mechanism, the harm to direct retail shareholders relative to ETFs, LICs and managed funds, and the removal of pre-CGT asset exemptions without adequate transition arrangements. We called on the Committee to recommend that the Bills not be passed in their current form, and that the CGT discount be retained for all productive Australian assets while any housing- related reforms be considered separately. In June 2026, Geoff Wilson appeared before the Committee to present our evidence and urge Senators to require the Government to publish dynamic economic modelling before any vote was taken. The legislation passed Parliament that same month, with a number of concessions. We will continue to advocate against these changes to the CGT discount.
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28 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Education We remain committed to education initiatives which advocate for change and progress in corporate Australia. We support the University of New South Wales School of Mathematics and Statistics’ Do the Maths program, which aims to inspire girls in high school to consider tertiary studies and careers in mathematics and statistics. We believe in the importance of gender diversity in the financial services industry, in particular funds management, which provides rewarding career paths. We host Women’s Investor Events which give likeminded women a platform to network and enhance financial literacy, while our Young Investor Events aim to inspire the next generation to begin their investment journey early. We encourage all shareholders to visit our website and subscribe to receive our updates. As always, please contact us by phone on (02) 9247 6755 or by email at info@wilsonassetmanagement.com.au if you ever have any questions or feedback. Shareholder engagement and communication WAM Microcap is your company and it is Wilson Asset Management’s responsibility to manage the Company on your behalf and be available to report to you on a regular basis. We encourage all shareholders to communicate with us and share their feedback. We have a variety of options to keep you informed, including: Email updates from the Chairman and CIO, the Lead Portfolio Managers and Investment Team Shareholder presentations and events Investment insights including market and macroeconomic commentary, updates from meetings with investee management teams and video updates Shareholder Q&A webinars and breakfast roundtable events Monthly NTA reports Social media engagement Investor education material Annual and interim results announcements with detailed updates on the investment portfolios and markets Media coverage and speaking engagements from our ongoing media partnerships with Livewire Markets, the ASX, Equity Mates, the Australian Shareholders’ Association, the SMSF Association and more.
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wilsonassetmanagement.com.au 29 Directors’ Report to shareholders For the year ended 30 June 2026 The Directors present their report together with the financial report of WAM Microcap for the financial year ended 30 June 2026. Principal activity The principal activity of the Company is making investments in listed companies. The Company’s investment objectives are to deliver a stream of fully franked dividends, provide capital growth in the medium-to-long term and preserve capital. No change in this activity took place during the year or is likely to in the future. Operating and financial review Investment operations over the year resulted in an operating loss before tax of $2,404,157 (2025: operating profit before tax of $59,711,401) and an operating loss after tax of $141,974 (2025: operating profit after tax of $43,583,480). The after tax figure includes a $2,262,183 income tax benefit, primarily delivered through franking credits received on franked dividend income from investee companies and the tax benefit from the operating loss for the year. The operating loss for 2026 was reflective of the investment portfolio performance during the year. The investment portfolio increased 0.1% during the 12 months to 30 June 2026, while the S&P/ASX Small Ordinaries Accumulation Index rose 8.1%. The average cash weighting of the investment portfolio during the year was 9.1%. The operating loss for the year includes unrealised gains or losses arising from changes in the fair value of the investments held in the portfolio during the year. This movement in the fair value of investments can add to or reduce the realised gains and losses on the investment portfolio and other revenue from operating activities (such as dividend and interest income) in each year. This treatment under the Australian Accounting Standards can cause large variations in reported operating profits between years. The operating profit or loss for each financial period is reflective of the underlying investment portfolio performance and is important to understand with context to the overall performance of equity markets in any given period. As a result, we believe the more appropriate measures of the financial results for the period are the investment portfolio performance, the change in net tangible assets (NTA) and fully franked dividends, together with total shareholder return (TSR). Further information on the three key listed investment company performance measures and the operating and financial review of the Company is contained in the Chairman’s letter. Financial position The net asset value of the Company as at 30 June 2026 was $368,269,015 (2025: $394,870,515). Further information on the financial position of the Company is contained in the Chairman’s letter.
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30 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Significant changes in state of affairs There was no significant change in the state of affairs of the Company during the year ended 30 June 2026. Dividends paid or recommended Dividends paid or declared during the year are as follows: $ Fully franked FY2025 final dividend of 5.3 cents per share paid on 29 October 2025 14,797,495 Fully franked FY2026 interim dividend of 5.35 cents per share paid on 29 May 2026 14,990,627 Since the end of the year, the Directors declared a fully franked final dividend of 5.35 cents per share to be paid on 29 October 2026. The Board is committed to paying a stream of fully franked dividends to shareholders, provided the Company has sufficient profits reserves and franking credits, and it is within prudent business practices. The ability to generate franking credits is dependent on the receipt of franked dividends from investee companies and the payment of tax on realised profits. Material Business Risks WAM Microcap is exposed to a broad range of risks reflecting its responsibilities and operations as a listed investment company. These risks include those resulting from its responsibilities in the areas of setting the strategic direction of the Company, meeting its investment objectives and its overall operational activities. The Company’s risk management framework, material risks and approach to managing them are described below and disclosed in Note 15 to the financial statements. The Board is responsible for the Company’s risk governance, while the Investment Manager is accountable for managing risk on a day-to-day basis and promoting a strong risk management culture within the Company and the Investment Manager. The Company’s risk management framework, which is overseen by the Board, has been designed to monitor, review and continually improve risk management at the Company. The material risks outlined below have been the primary focus for the Company. a) Financial Risks Market risk Share markets tend to move in cycles, and individual security prices may fluctuate and underperform other asset classes over extended periods of time. The value of listed securities may rise or fall depending on a range of factors beyond the control of the Company. Although the Investment Manager will seek to manage market risk, unexpected market conditions could have a negative impact on the value of the investment portfolio and the return of the Company’s investments. Investment Strategy risk The success and profitability of the Company will largely depend on the Investment Manager’s continued ability to manage the investment portfolio in a manner that complies with the Company’s objective, strategy, policies, guidelines and permitted investments. If the Investment Manager fails to do so, the Company may not perform. There are risks inherent in the investment strategy of the Company.
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wilsonassetmanagement.com.au 31 Material Business Risks (cont’d) a) Financial Risks (cont’d) Economic risk Investment portfolio performance is influenced by numerous economic factors. These factors include changes in economic conditions (e.g. changes in interest rates or economic growth), legislative and political environments, as well as changes in investor sentiment. In addition, exogenous shocks, natural disasters, acts of terrorism and turmoil in financial markets (such as a global financial crisis or pandemic) can add to equity markets volatility as well as impact directly on the Company or securities within the Company’s investment portfolio. As a result, no guarantee can be given in respect of the future earnings of the Company, the earnings and capital appreciation of the Company’s investment portfolio, appreciation of the Company’s share price or dividends beyond those already declared by the Board. Concentration risk There may be more volatility in the investment portfolio as compared to the S&P/ASX Small Ordinaries Accumulation Index because the investment portfolio will be comprised of a smaller number of securities than the broader market. For more details on Financial Risks associated with the investment portfolio and how the Company manages them, refer to the Lead Portfolio Manager update on pages 19 to 21 and Note 15 to the financial statements. b) Strategic and Non-financial Risks Company and Investment Manager Relationship risk Investors should be aware that the Company is managed by the Investment Manager under an Investment Management Agreement that provides limited termination rights. Geoff Wilson is the sole director and indirect owner of 100% of the ordinary (voting) shares on issue in the Investment Manager. The Investment Manager may receive compensation based on the investment portfolio’s performance. The performance fee may create an incentive for the Investment Manager to make investments that are more speculative or higher risk than would otherwise be the case, in order to improve the performance fee. Additionally, the Company’s Board consists of three non-independent Directors who are representatives of the Investment Manager, alongside one independent Director. This governance structure for the Company may present a risk of conflicts of interest, particularly in situations where decisions regarding the Investment Manager’s performance, fees, or continued engagement must be made. The Company has in place a number of processes to manage risks relating to the Investment Manager, including having at least one member of the Company’s Board be an independent Director. Key Person risk The Company’s investment strategy leverages the Investment Manager’s significant experience and expertise. If an investment team member ceases their role with the Investment Manager, there is a risk to the successful execution of the investment strategy going forward, unless adequate replacement personnel can be promoted internally or recruited. This risk is mitigated by the depth of experience across the investment team and the broader management team with succession plans for senior leaders and other critical roles.
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32 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Material Business Risks (cont’d) b) Strategic and Non -financial Risks (cont’d) Governance and Compliance risk The Company is committed to a high level of compliance with relevant legislation, regulation, industry codes and standards as well as internal policies and sound corporate governance principles to address circumstances where any inadvertent breaches and violations might take place. The Company has a comprehensive risk management framework in place to prevent and detect deliberate or purposeful violations of legislative or regulatory requirements, by its Investment Manager and other key external service providers. The framework is monitored and reviewed by the Board on a regular basis and more details can be found in the WAM Microcap Corporate Governance Charter. The Investment Manager also has processes and controls in place to limit any inadvertent breaches or violations that might take place. Technology and Cyber risk The cyber security risk environment for Australian financial services is complex due to the availability of affordable and user-friendly attack tools, marketplaces for stolen and compromised credentials, and the speed with which vulnerabilities are exploited. Cyber risk relates primarily to the potential for unauthorised access, data breaches, or disruptions in the Company’s systems which could result in financial losses or compromised Company or shareholder information. The Company aims to ensure at all times the availability and security of systems which support its critical business functions, including those which relate to the operations of the Investment Manager, in particular; the investment portfolio management systems, the Company’s externally appointed custodian, and the Company’s share registry. Operational risk To achieve its goals and objectives, the Company utilises a number of external service providers for critical business functions. The Company, and the Investment Manager (as part of their delegated responsibilities), closely monitor service provider performance and undertake regular reviews and detailed due diligence to monitor ongoing service levels and compliance with service provider agreements to ensure services provided are in line with agreed terms, service levels and expectations. Privacy and Data risk The Company is committed to ensuring that all information and data obtained in its ordinary course of operations is authentic, appropriately classified, properly deleted or conserved and managed in accordance with the applicable legislative and business requirements. The Company aims to ensure strict compliance with all legislative requirements regarding the collection, use and disclosure of information governed by the Privacy Act 1988 and the Australian Privacy Principles set out in the Privacy Act and in accordance with its Privacy Policy (last updated May 2026). The Company acknowledges the role that key external service providers play in the management of the Company’s privacy and data obligations. To manage this risk, the Company places strong emphasis on how these providers, including the Investment Manager, implement privacy and data protection measures. The Investment Manager has an established Privacy Policy and supporting procedures, and the Company conducts due diligence on third party service providers to assess their privacy controls and compliance.
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wilsonassetmanagement.com.au 33 Directors of the Company The following persons were Directors of the Company during the financial year and up to the date of this report: Geoff Wilson AO Kate Thorley Jacqueline Sullivan Adrian Siew Information on Directors Geoff Wilson AO (Chairman – non-independent) Chairman of the Company since March 2017 Experience and expertise Geoff Wilson has more than 46 years’ direct experience in investment markets having held a variety of senior investment roles in Australia, the UK and the US. Geoff founded Wilson Asset Management in 1997 and created Australia’s first listed philanthropic wealth creation vehicles, Future Generation Australia Limited and Future Generation Global Limited, as well as Future Generation Women. Geoff holds a Bachelor of Science, a Graduate Management Qualification and is a Fellow of the Financial Services Institute of Australia and the Australian Institute of Company Directors (AICD). Other current listed company directorships Geoff Wilson is currently Chairman of WAM Capital Limited (appointed March 1999), WAM Research Limited (appointed June 2003), WAM Active Limited (appointed July 2007), WAM Leaders Limited (appointed March 2016), WAM Global Limited (appointed February 2018), WAM Strategic Value Limited (appointed March 2021) and WAM Income Maximiser Limited (appointed January 2025). He is the founder and a Director of Future Generation Australia Limited (appointed July 2014) and Future Generation Global Limited (appointed May 2015) and a Director of WAM Alternative Assets Limited (appointed September 2020), Staude Capital Global Value Fund Limited (appointed April 2014), Hearts and Minds Investments Limited (appointed September 2018), Keybridge Capital Limited (appointed February 2025), Yowie Group Limited (appointed June 2025) and Pengana International Equities Limited (appointed October 2025).
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34 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Geoff Wilson AO (Chairman – non-independent) (cont’d) Former listed company directorships in the last 3 years None. Special responsibilities Chairman of the Board. Interests in shares of the Company Details of Geoff Wilson’s interests in shares of the Company are included later in this report. Interests in contracts Details of Geoff Wilson’s interests in contracts of the Company are included later in this report. Kate Thorley (Director – non-independent) Director of the Company since March 2017 Experience and expertise Kate Thorley has more than 26 years’ experience in funds management, financial accounting and corporate governance. Kate is Executive Director at Wilson Asset Management, having served as Chief Executive Officer for 15 years. She is a Director of WAM Capital Limited, WAM Leaders Limited, WAM Global Limited, WAM Research Limited, WAM Active Limited, WAM Microcap Limited, WAM Income Maximiser Limited and WAM Strategic Value Limited. She is also a Director of Future Generation Australia Limited and Future Generation Global Limited. Kate is a Chartered Accountant and a graduate member of the Australian Institute of Company Directors (GAICD). Other current listed company directorships Kate Thorley is a Director of WAM Active Limited (appointed July 2014), WAM Research Limited (appointed August 2014), Future Generation Australia Limited (appointed April 2015), WAM Leaders Limited (appointed March 2016), WAM Capital Limited (appointed August 2016), WAM Global Limited (appointed February 2018), Future Generation Global Limited (appointed March 2021), WAM Strategic Value Limited (appointed March 2021) and WAM Income Maximiser Limited (appointed January 2025). Former listed company directorships in the last 3 years None. Special responsibilities None. Interests in shares of the Company Details of Kate Thorley’s interests in shares of the Company are included later in this report. Interests in contracts None.
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wilsonassetmanagement.com.au 35 Jacqueline Sullivan (Director – independent) Director of the Company since May 2017 Experience and expertise Jacqueline Sullivan has over 37 years’ funds management experience gained in a number of senior executive roles across the Australian and global AMP Capital businesses. In that time, Jacqueline led global distribution of AMP Capital with a focus on expansion into Asia, North America and Europe. As Head of Product, Jacqueline led the development of a range of multi-manager products, listed funds, real assets and hedge funds. Jacqueline holds a Bachelor of Science, MBA, Graduate Diploma of Applied Finance and Investment and is a Graduate member of the AICD (GAICD). Other current listed company directorships Jacqueline Sullivan is a director of Sandon Capital Investments Limited (appointed December 2021). Former listed company directorships in the last 3 years Jacqueline Sullivan resigned as a director of Mercantile Investment Company Limited in August 2023. Special responsibilities None. Interests in shares of the Company None. Interests in contracts None. Adrian Siew (Director – non-independent) Director of the Company since November 2020 Experience and expertise Adrian has 30 years’ experience in the financial industry. He started his career with the Goldman Sachs European investment banking team in London before moving to Hong Kong and Singapore as part of their mergers and acquisitions and corporate finance advisory teams. He later spent 11 years with The Carlyle Group as a Director of their private equity buyout investment team in Sydney and Singapore. Adrian was the Lead Portfolio Manager responsible for the alternative asset strategy of Wilson Asset Management (International) Pty Limited and is now a board director and investment committee member of WAM Alternative Assets Limited. He is also the Chief Executive Officer of Wilson Family Office. He holds a First Class Honours in Bachelor of Science (Economics) Accounting and Finance from London School of Economics. Other current listed company directorships Adrian Siew is a Director of WAM Alternative Assets Limited (appointed September 2020).
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36 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Adrian Siew (Director – non-independent) (cont’d) Former listed company directorships in the last 3 years None. Special responsibilities None. Interests in shares of the Company None. Interests in contracts None. Joint Company Secretaries The following persons held the position of Joint Company Secretary at the end of the financial year: Jesse Hamilton Joint Company Secretary of WAM Microcap Limited since November 2020 Jesse Hamilton is a Chartered Accountant with more than 18 years’ experience working in advisory and assurance services, specialising in funds management. As the Chief Financial Officer, Jesse oversees all finance and accounting of Wilson Asset Management. Jesse is currently a Non-Executive Director of the Listed Investment Companies and Trusts Association Limited and Pengana International Equities Limited, Chair and Company Secretary of Keybridge Capital Limited, Director and Company Secretary of Yowie Group Limited and Joint Company Secretary for WAM Capital Limited, WAM Leaders Limited, WAM Global Limited, WAM Microcap Limited, WAM Research Limited, WAM Active Limited, WAM Alternative Assets Limited, WAM Strategic Value Limited and WAM Income Maximiser Limited, in addition to Future Generation Australia Limited and Future Generation Global Limited. Prior to joining Wilson Asset Management, Jesse worked as Chief Financial Officer of an ASX listed company and also worked as an advisor specialising in assurance services, valuations, mergers and acquisitions, financial due diligence and capital raising activities for listed investment companies. Linda Kiriczenko Joint Company Secretary of WAM Microcap Limited since March 2017 Linda Kiriczenko has over 22 years’ experience in financial accounting including more than 18 years in the funds management industry. As the Finance Manager of Wilson Asset Management, Linda oversees finance and accounting and is also Joint Company Secretary for seven listed investment companies, WAM Capital Limited, WAM Leaders Limited, WAM Global Limited, WAM Microcap Limited, WAM Research Limited, WAM Active Limited and WAM Income Maximiser Limited. Linda holds a Bachelor of Commerce and is a fully qualified CPA. She is a certified member of the Governance Institute of Australia.
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wilsonassetmanagement.com.au 37 Remuneration Report (Audited) This report details the nature and amount of remuneration for each Director of WAM Microcap. a) Remuneration of Directors All Directors of WAM Microcap are non-executive Directors. The Board from time to time determines remuneration of Directors within the maximum amount approved by the shareholders at the Annual General Meeting. Directors are not entitled to any other remuneration. Fees and payments to Directors reflect the demands that are made on and the responsibilities of the Directors and are reviewed annually by the Board. The Company determines the remuneration levels and ensures they are competitively set to attract and retain appropriately qualified and experienced Directors. The maximum total remuneration of the Directors of the Company has been set at $80,000 per annum. Directors do not receive bonuses nor are they issued options on securities as part of their remuneration. Directors’ fees cover all main Board activities and membership of committees. Directors’ remuneration received for the year ended 30 June 2026: Director Position Short-term employee benefits Directors’ fees $ Post-employment benefits Superannuation $ Total $ Geoff Wilson Chairman 8,929 1,071 10,000 Kate Thorley Director 8,929 1,071 10,000 Jacqueline Sullivan Director 22,321 2,679 25,000 Adrian Siew Director 22,321 2,679 25,000 62,500 7,500 70,000 Directors receive a superannuation guarantee contribution required by the government, which was 12.0% of individuals’ benefits for FY2026 (FY2025: 11.5%) and do not receive any other retirement benefits. Directors may also elect to salary sacrifice their fees into superannuation. Directors’ remuneration received for the year ended 30 June 2025: Director Position Short-term employee benefits Directors’ fees $ Post-employment benefits Superannuation $ Total $ Geoff Wilson Chairman 8,969 1,031 10,000 Kate Thorley Director 8,969 1,031 10,000 Jacqueline Sullivan Director 22,422 2,578 25,000 Adrian Siew Director 22,422 2,578 25,000 62,782 7,218 70,000
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38 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Remuneration Report (Audited) (cont’d) a) Remuneration of Directors (cont’d) The following table reflects the Company’s performance and Directors’ remuneration over five years: 2026 2025 2024 2023 2022 Operating (loss)/profit after tax ($) ($141,974) $43,583,480 $34,206,336 $26,321,283 ($36,095,190) Dividends declared (cents per share) 10.7 10.6 10.5 10.5 10.0 Share price ($ per share) $1.435 $1.45 $1.405 $1.41 $1.625 NTA after tax ($ per share) $1.31 $1.41 $1.36 $1.30 $1.28 Total Directors’ remuneration ($) $70,000 $70,000 $70,000 $70,000 $70,000 Shareholder’s equity ($) $368,269,015 $394,870,515 $377,150,607 $275,816,303 $268,208,723 As outlined above, Directors’ fees are not directly linked to the Company’s performance. b) Director related entities remuneration All transactions with related entities during the year were made on normal commercial terms and conditions and at market rates. The Company has an investment management agreement with MAM Pty Limited (the Investment Manager or the Manager), part of the Wilson Asset Management Group. Geoff Wilson is the Director of MAM Pty Limited, the entity appointed to manage the investment portfolio of WAM Microcap. Entities associated with Geoff Wilson hold 100% of the issued shares of MAM Pty Limited. In its capacity as the Manager and in accordance with the investment management agreement, MAM Pty Limited was paid a management fee of 1% p.a. (plus GST) of the value of the portfolio amounting to $4,400,478 inclusive of GST (2025: $4,443,712). As at 30 June 2026, the balance payable to the Manager was $330,694 inclusive of GST (2025: $371,014). In addition, MAM Pty Limited is eligible to be paid a performance fee, being 20% (plus GST), in circumstances where: • the S&P/ASX Small Ordinaries Accumulation Index has increased over that period, the amount by which the value of the portfolio exceeds this increase; or • the S&P/ASX Small Ordinaries Accumulation Index has decreased over that period, the amount of the increase in the value of the portfolio. No performance fee is payable in respect of any performance period where the value of the portfolio has decreased over that period. For the year ended 30 June 2026, no performance fee was payable to the Manager (2025: $4,282,786). Wilson Asset Management (International) Pty Limited has a service agreement in place with WAM Microcap to provide accounting and company secretarial services on commercial terms. For the year ended 30 June 2026, the fee for accounting services amounted to $82,500 inclusive of GST (2025: $68,750) and the fee for company secretarial services amounted to $27,500 inclusive of GST (2025: $23,650). These amounts are in addition to the above Directors’ remuneration. Since the end of the previous financial year, no Director has received or become entitled to receive a benefit (other than those detailed above) by reason of a contract made by the Company or a related company of the Director or with a firm of which they are a member or with a company in which they have substantial financial interest.
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wilsonassetmanagement.com.au 39 Remuneration Report (Audited) (cont’d) c) Remuneration of executives There are no executives that are paid by the Company. MAM Pty Limited, the Investment Manager of the Company, provides the day-to-day management of the Company and is remunerated for these services as outlined above. d) Equity instruments disclosures of Directors and related parties As at the balance date, the Company’s Directors and their related parties held the following interests in the Company: Ordinary shares held Directors Balance at 30 June 2025 Acquisitions Disposals Balance at 30 June 2026 Geoff Wilson 1,082,911 - - 1,082,911 Kate Thorley 248,406 1,098 - 249,504 Jacqueline Sullivan - - - - Adrian Siew - - - - 1,331,317 1,098 - 1,332,415 There have been no changes in shareholdings disclosed above between 30 June 2026 and the date of the report. Directors and director related entities disposed of and acquired ordinary shares in the Company on the same terms and conditions available to other shareholders. The Directors have not, during or since the end of the financial year, been granted options over unissued shares or interests in shares of the Company as part of their remuneration. - End of Remuneration Report -
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40 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Directors’ meetings Director No. eligible to attend Attended Geoff Wilson 4 4 Kate Thorley 4 4 Jacqueline Sullivan 4 3 Adrian Siew 4 4 Audit and Risk Committee The Company has not established an Audit and Risk Committee due to the Company’s size, Board composition and the nature of the Company’s operations. As such, the Company’s Board of Directors fulfil the role of the Audit and Risk Committee. After balance date events Since the end of the year, the Directors declared a fully franked final dividend of 5.35 cents per share to be paid on 29 October 2026. No other matters or circumstances have arisen since the end of the financial year, other than already disclosed, which significantly affect or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Company in subsequent financial years. Future developments The Company will continue to pursue investment activities - primarily investing in equities listed on the Australian Securities Exchange - to achieve the Company’s stated objectives. The Company’s future performance is dependent on the performance of the Company’s investments. In turn, the performance of these investments is impacted by investee company-specific factors and prevailing industry conditions. In addition, a range of external factors including economic growth rates, interest rates, exchange rates and macro-economic conditions impact the overall equity market and these investments. As such, we do not believe it is possible or appropriate to accurately predict the future performance of the Company’s investments and, therefore, the Company’s performance. Environmental regulation The Company’s operations are not regulated by any environmental regulation under a law of the Commonwealth or of a State or Territory of Australia. Indemnification and insurance of Officers or Auditors During the financial year, the Company paid a premium in respect of a contract insuring the Directors of the Company, the Company Secretary and any related body corporate against liability incurred as such by a Director or Secretary to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
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wilsonassetmanagement.com.au 41 Indemnification and insurance of Officers or Auditors (cont’d) No indemnities have been given or insurance premiums paid during or since the end of the financial year, for any person who is or has been an auditor of the Company. Proceedings on behalf of the Company No person has applied for leave of the Court to bring proceedings on behalf of the Company or to intervene in any proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. The Company was not a party to any such proceedings during the year. Non-audit services During the year Pitcher Partners Sydney, the Company’s auditor, performed taxation and other services for the Company. Details of the amounts paid to the auditors and their related parties are disclosed in Note 5 to the financial statements. The Board of Directors is satisfied that the provision of non-audit services during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The Directors are satisfied that the services disclosed in Note 5 did not compromise the external auditor’s independence for the following reasons: • all non-audit services are reviewed and approved by the Board of Directors to ensure they do not adversely affect the integrity and objectivity of the auditor; and • the nature of the services provided do not compromise the general principles relating to auditor independence in accordance with the APES 110: Code of Ethics for Professional Accountants (including Independence Standards) set by the Accounting Professional and Ethical Standards Board. Rounding of amounts to nearest dollar In accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2026/183, the amounts in the Directors’ Report have been rounded to the nearest dollar, unless otherwise indicated. Corporate Governance Statement The Company’s Corporate Governance Statement for the year ended 30 June 2026 is provided on the Company’s website at wilsonassetmanagement.com.au/wam-microcap.
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42 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Auditor’s Independence Declaration A copy of the Auditor’s Independence Declaration as required under Section 307C of the Corporations Act 2001 is set out on page 43 of the Annual Report. Signed in accordance with a resolution of the Board of Directors. Geoff Wilson AO Chairman Dated this 20th day of August 2026
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43 Pitcher Partners Sydney ABN 17 795 780 962 Level 16, Tower 2 Darling Park 201 Sussex Street Sydney NSW 2000 Postal address GPO Box 1615 Sydney NSW 2001 +61 2 9221 2099 sydneypartners@pitcher.com.au pitcher.com.au Pitcher Partners is an association of independent firms. Pitcher Partners Sydney ABN 17 795 780 962. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Adelaide | Brisbane | Melbourne | Newcastle | Perth | Sydney Auditor’s Independence Declaration To the Directors of WAM Microcap Limited ABN 34 617 838 418 In accordance with section 307C of the Corporations Act 2001 , I declare to the best of my knowledge and belief in relation to the audit of the financial report of WAM Microcap Limited for the year ended 30 June 2026, there have been: i. no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and ii. no contraventions of the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) in relation to the audit. C I Chandran Partner Pitcher Partners Sydney 20 August 2026
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44 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Financial Report For the year ended 30 June 2026 This financial report is for WAM Microcap Limited (WAM Microcap or the Company) for the year ended 30 June 2026. WAM Microcap is a for-profit entity for financial reporting purposes under Australian Accounting Standards. WAM Microcap is a listed public company, incorporated and domiciled in Australia. The financial report was authorised for issue on 20 August 2026 by the Board of Directors. In addition to the relevant financial information, the notes to the financial statements include a description of the material accounting policies applied, and where applicable key judgements and estimates used by management in applying these policies. Consolidated entity disclosure statement WAM Microcap is not required to prepare consolidated financial statements by Australian Accounting Standards. Accordingly, in accordance with subsection 295(3A) of the Corporations Act 2001, no further information is required to be disclosed in the consolidated entity disclosure statement.
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wilsonassetmanagement.com.au 45 Statement of Comprehensive Income (‘Profit or Loss’) For the year ended 30 June 2026 Note 2026 $ 2025 $ Net realised and unrealised (losses)/gains on financial investments (4,120,243) 59,921,863 Other revenue from operating activities 2 7,347,209 9,439,246 Management fees (4,100,445) (4,140,732) Performance fees - (3,990,778) Directors fees (70,000) (70,000) Brokerage expense on share purchases (755,736) (776,895) Custody fees (35,681) (36,146) ASX listing and CHESS fees (127,742) (123,279) Share registry fees (111,124) (106,634) Disbursements, mailing and printing (58,449) (62,148) ASIC industry funding levy (14,979) (19,468) Accounting fees (82,500) (68,750) Company secretary fees (27,500) (23,650) Other expenses from ordinary activities (246,967) (231,228) (Loss)/p rofit before income tax (2,404,157) 59,711,401 Income tax benefit/(expense) 3(a) 2,262,183 (16,127,921) (Loss)/p rofit after income tax attributable to members of the Company (141,974) 43,583,480 Other comprehensive income Other comprehensive income for the year, net of tax - - Total comprehensive (loss)/ income for the year (141,974 ) 43,583,480 Basic and diluted (loss)/ earnings per share 14 (0.05) cents 15.69 cents The accompanying notes form part of these financial statements.
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46 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Statement of Financial Position (‘Balance Sheet’) As at 30 June 2026 Note 2026 $ 2025 $ Current assets Cash and cash equivalents 12 32,552,412 33,919,791 Trade and other receivables 6 6,525,049 938,317 Financial assets 7 331,738,563 376,494,319 Total current assets 370,816,024 411,352,427 Non-current assets Deferred tax assets 3(b) 9,559,504 191,988 Total non -current assets 9,559,504 191,988 Total assets 380,375,528 411,544,415 Current liabilities Trade and other payables 8 10,483,048 11,016,990 Current tax liabilities 3(c) 1,623,465 2,636,672 Total current liabilities 12,106,513 13,653,662 Non-current liabilities Deferred tax liabilities 3(d) - 3,020,238 Total non -current liabilities - 3,020,238 Total liabilities 12,106,513 16,673,900 Net assets 368,269,015 394,870,515 Equity Issued capital 9 351,104,898 347,776,302 Profits reserve 10 140,204,880 128,168,805 Accumulated losses 11 (123,040,763) (81,074,592) Total equity 368,269,015 394,870,515 The accompanying notes form part of these financial statements.
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wilsonassetmanagement.com.au 47 Statement of Changes in Equity For the year ended 30 June 2026 Note Issued capital $ Accumulated losses $ Profits reserve $ Total equity $ Balance at 1 July 202 4 344,370,896 (81,074,592) 113,854,303 377,150,607 Profit for the year - 43,583,480 - 43,583,480 Transfer to profits reserve - (43,583,480) 43,583,480 - Other comprehensive income for the year - - - - Transactions with owners: Shares issued via dividend reinvestment plan 9(b) 3,418,671 - - 3,418,671 Share issue costs (net of tax) 9(b) (13,265) - - (13,265) Dividends paid 4(a) - - (29,268,978) (29,268,978) Balance at 30 June 202 5 347,776,302 (81,074,592) 128,168,805 394,870,515 Loss for the year - (141,974) - (141,974) Transfer to profits reserve - (41,824,197) 41,824,197 - Other comprehensive income for the year - - - - Transaction with owners: Shares issued via dividend reinvestment plan 9(b) 3,328,596 - - 3,328,596 Dividends paid 4(a) - - (29,788,122) (29,788,122) Balance at 30 June 202 6 351,104,898 (123,040,763 ) 140,204,880 368,269,015 The accompanying notes form part of these financial statements.
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48 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Statement of Cash Flows For the year ended 30 June 2026 Note 2026 $ 2025 $ Cash flows from operating activities Proceeds from sale of investments 802,686,897 733,122,183 Payments for purchase of investments (764,188,706) (698,863,523) Australian dividends received 5,501,099 6,392,146 Foreign dividends received 326,582 1,244,737 Interest and other investment income received 1,519,528 1,802,363 Management fee (GST inclusive) (4,440,798) (4,431,254) Performance fee (GST inclusive) (4,282,786) (6,531,138) Brokerage expense on share purchases (GST inclusive) (809,718) (829,613) Payments for administration expenses (GST inclusive) (757,721) (698,763) Income tax paid (11,138,778) (18,287,005) GST on brokerage expense on share sales (59,848) (64,308) Net GST received from ATO 736,396 940,755 Net cash provided by operating activities 13 25,092,147 13,796,580 Cash flows from financing activities Dividends paid – net of reinvestment (26,459,526) (25,850,307) Share issue costs - (18,950) Net cash used in financing activities (26,459,526) (25,869,257) Net decrease in cash and cash equivalents held (1,367,379) (12,072,677) Cash and cash equivalents at beginning of the year 33,919,791 45,992,468 Cash and cash equivalents at the end of the year 12 32,552,412 33,919,791 Non-cash transactions Shares issued via dividend reinvestment plan 9(b) 3,328,596 3,418,671 The accompanying notes form part of these financial statements.
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wilsonassetmanagement.com.au 49 Notes to the financial statements For the year ended 30 June 2026 1. Basis of preparation The financial statements are general purpose financial statements, which: • have been prepared in accordance with Australian Accounting Standards, Australian Accounting Interpretations, other authoritative pronouncements of the Australian Accounting Standards Board (AASB) and the Corporations Act 2001; • have been prepared on a for-profit entity basis; • comply with International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB); • have been prepared on an accruals basis (except for cash flow information) and are based on historical costs, with the exception of certain financial assets which have been measured at fair value; • are presented in Australian dollars with all amounts in the Financial Report rounded to the nearest dollar, unless otherwise indicated, in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2026/183; • adopt all of the new or amended Accounting Standards and Interpretations issued by the AASB that are mandatory for the current reporting period. There was no material impact to the financial statements; and • do not adopt any new standards or interpretations issued but not yet effective. The impact of these standards or interpretations has been assessed and the impact has been identified as not being material. Material and other accounting policy information adopted in the preparation of these financial statements have been included with the relevant notes to the financial statements, and where applicable, key judgements and estimates used by management in applying these policies.
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50 WAM Microcap Annual Report 2026 ABN 34 617 838 418 2. Other revenue 2026 $ 2025 $ Australian sourced dividends 5,501,099 6,392,146 Interest income from cash and cash equivalents and other income 1,519,528 1,802,363 Foreign sourced dividends 326,582 1,244,737 7,347,209 9,439,246 3. Income tax Dividend revenue is recognised when the right to receive a dividend has been established (i.e. the ex- dividend date). All revenue is stated net of the amount of goods and services tax (GST) where applicable. Current income tax (benefit)/expense The current income tax (benefit)/expense is based on the (loss)/profit for the year adjusted for non- assessable or disallowed items, as well as franking credits (or imputation credits) received on franked dividend income from investee companies. It is calculated using tax rates that have been enacted or are substantially enacted at the reporting date (i.e. 30% corporate tax rate). Current tax liabilities/(assets) are measured at the amounts expected to be paid to/(refunded from) the Australian Taxation Office in the next 12 months. Deferred tax assets and liabilities Deferred tax is accounted for using the balance sheet method in respect of temporary differences arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss. Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled (i.e. 30% corporate tax rate). Deferred tax is credited in the Statement of Comprehensive Income except where it relates to items that may be credited directly to equity, in which case the deferred tax is adjusted directly against equity. Deferred tax assets and liabilities relating to temporary differences on financial assets or liabilities and unused tax losses are recognised, to the extent that it is probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised. Current tax assets and liabilities are offset only where a legally enforceable right of set-off exists and it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur. Deferred tax assets and liabilities are only offset where: • a legally enforceable right of set-off exists; and • the deferred tax assets and liabilities relate to income taxes levied by the same taxation authority on either: i) the same taxable entity; or ii) different taxable entities where it is intended that net settlement or simultaneous realisation and settlement of the respective asset and liability will occur in future periods in which significant amounts of deferred tax assets or liabilities are expected to be recovered or settled.
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wilsonassetmanagement.com.au 51 3. Income tax (cont’d) a) Income tax (benefit)/expense The prima facie tax on (loss)/profit before income tax is reconciled to the income tax (benefit)/expense as follows: 2026 $ 2025 $ Prima facie tax on (loss)/profit before income tax at 30% (2025: 30%) (721,248) 17,913,420 Franking credit gross up 650,542 699,316 Franking credit offset (2,168,472) (2,331,053) Foreign income tax gross up 9,860 65,898 Foreign income tax offset (32,865) (219,660) (2,262,183) 16,127,921 Total income tax (benefit)/ expense results in a change to the following : 2026 $ 2025 $ Current tax liability 10,125,571 9,349,489 Deferred tax liability (3,020,238) 3,020,238 Deferred tax asset (9,367,516) 3,758,194 (2,262,183 ) 16,127,921 b) Deferred tax assets 2026 $ 2025 $ Accruals 13,992 13,629 Capitalised share issue costs 119,285 178,359 Fair value adjustments 9,426,227 - 9,559,504 191,988 Effective tax rate 2026 % 2025 % The effective tax rate reflects the benefit to the Company from franking credits received on dividend income during the year, in addition to the tax benefit on the Company’s operating loss for the year at the corporate tax rate of 30.0%. The decrease in the effective tax rate from the comparative year is reflective of the loss before income tax in comparison to the profit before income tax in the prior year, in addition to the higher proportion of franked dividends received compared to the operating result for the year. (94.1%) 27.0%
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52 WAM Microcap Annual Report 2026 ABN 34 617 838 418 3. Income tax (cont’d) b) Deferred tax assets (cont’d) Movement in deferred tax assets Balance at the beginning of the year 191,988 3,944,497 Credited/(charged) to the Statement of Comprehensive Income 9,367,516 (3,758,194) Share issue costs - 5,685 At reporting date 9,559,504 191,988 c) Current tax liabilities 2026 $ 2025 $ Balance at the beginning of the year 2,636,672 11,574,188 Current year income tax 10,125,571 9,349,489 Income tax paid (11,138,778) (18,287,005) At reporting date 1,623,465 2,636,672 d) Deferred tax liabilities 2026 $ 2025 $ Fair value adjustments - 3,020,238 - 3,020,238 Movement in deferred tax liabilities Balance at the beginning of the year 3,020,238 - (Credited)/charged to the Statement of Comprehensive Income (3,020,238) 3,020,238 At reporting date - 3,020,238 4. Dividends a) Ordinary dividends paid during the year 2026 $ 2025 $ Final dividend FY2025: 5.3 cents per share fully franked at 30% tax rate, paid 29 October 2025 (Final dividend FY2024: 5.25 cents per share fully franked) 14,797,495 14,534,826 Interim dividend FY2026: 5.35 cents per share fully franked at 30% tax rate, paid 29 May 2026 (Interim dividend FY2025: 5.3 cents per share fully franked) 14,990,627 14,734,152 29,788,122 29,268,978
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wilsonassetmanagement.com.au 53 4. Dividends (cont’d) b) Dividends not recognised at year end 2026 $ 2025 $ In addition to the above dividends, since the end of the year, the Directors have declared a 5.35 cents per share fully franked final dividend (2025: 5.3 cents per share fully franked final dividend) which has not been recognised as a liability at the end of the financial year 15,051,548 14,797,492 c) Dividend franking account 2026 $ 2025 $ Balance of franking account at year end 13,775,286 13,234,375 Adjusted for franking credits arising from: - Estimated income tax payable 1,623,465 2,636,672 Subsequent to the reporting period, the franking account would be reduced by the proposed dividend disclosed in Note 4(b): (6,450,663) (6,341,782) 8,948,088 9,529,265 The Company’s ability to continue to pay fully franked dividends is dependent upon the receipt of franked dividends from investments and the payment of tax on realised profits. The ability to generate franking credits is reliant on the receipt of franked dividends from investee companies and the payment of tax on realised profits. The balance of the franking account does not include the tax to be paid on unrealised investment gains (i.e. fair value movements) at the end of the reporting period. As at 30 June 2026, the deferred tax in relation to fair value movements on the investment portfolio is in a debit balance of $9,426,227 and this amount has been presented as a deferred tax asset (2025: credit balance of $3,020,238 presented as a deferred tax liability). 5. Auditor’s remuneration 2026 $ 2025 $ Remuneration of the auditor for: Auditing and reviewing the financial report 65,205 62,442 Other services provided by a related practice of the auditor: Taxation services 5,225 5,225 Taxation advisory services 1,290 - 71,720 67,667 The Company’s Board of Directors oversees the relationship with the Company’s external auditor. The Board reviews the scope of the audit and review and the proposed fee. It also reviews the cost and scope of other services provided by a related entity of the audit firm, to ensure that they do not compromise independence.
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54 WAM Microcap Annual Report 2026 ABN 34 617 838 418 6. Trade and other receivables 2026 $ 2025 $ Outstanding settlements 6,429,609 539,457 GST receivable 95,440 398,860 6,525,049 938,317 7. Financial assets Trade and other receivables are initially recognised at fair value. They are subsequently stated at amortised cost, less any provision for impairment (where applicable). As at reporting date, trade and other receivables primarily relates to outstanding trade settlements (i.e. settlement proceeds from the sale of securities that are receivable as at the balance date). Outstanding settlements are on the terms operating in the securities industry, which do not incur interest and require settlement within two days from the date of the transaction. Receivables also include GST recoverable from the Australian Taxation Office due to claimable items on expenses incurred by the Company. Initial recognition and measurement Financial assets are recognised when the Company becomes party to the contractual provisions of the instrument. Trade date accounting is adopted for the purchase or sale of financial assets, which is equivalent to the date that the Company commits itself to purchase or sell the assets. Financial instruments are initially measured at fair value. Transaction costs related to financial instruments are expensed to the Statement of Comprehensive Income immediately. Classification and subsequent measurement Financial assets are classified ‘at fair value through profit or loss’ when they are held for trading for the purpose of short-term profit taking. Realised and unrealised gains and losses arising from changes in fair value are included in the Statement of Comprehensive Income in the period in which they arise and form part of the Company’s net profit as a result. Financial instruments are subsequently measured at fair value. The fair values of financial instruments traded in active markets are based on the closing quoted last sale prices at the end of the reporting date. For all listed or unlisted securities that are not traded in an active market, valuation techniques are applied to determine fair value, including recent arm’s length transactions and reference to similar instruments. Refer to Note 15 for further details of these valuation techniques. Financial risk management Information regarding the Company’s exposure to financial risk management is set out in Note 15. Derecognition Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is transferred to another party whereby the Company no longer has any significant continuing involvement in the risks and benefits associated with the asset.
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wilsonassetmanagement.com.au 55 7. Financial assets (cont’d) 2026 $ 2025 $ Listed investments at fair value 309,826,196 361,653,729 Unlisted investments at fair value 21,912,367 14,840,590 331,738,563 376,494,319 The fair values of individual investments held at the end of the reporting period are disclosed on pages 73 to 74 of the Annual Report. The balance of unlisted investments held at fair value as at 30 June 2026 relate to unlisted investments and a convertible note. 8. Trade and other payables 2026 $ 2025 $ Outstanding settlements 9,963,930 6,211,100 Management fee payable 330,694 371,014 Sundry payables 188,424 152,090 Performance fee payable - 4,282,786 10,483,048 11,016,990 9. Issued capital a) Paid-up capital 2026 $ 2025 $ 281,337,346 ordinary shares fully paid (2025: 279,197,962) 351,104,898 347,776,302 Trade and other payables are stated at amortised cost. As at reporting date, trade and other payables primarily relates to outstanding trade settlements (i.e. settlement proceeds from the purchase of securities that are payable as at the balance date) and performance fee payable. Outstanding trade settlements are on the terms operating in the securities industry, which do not incur interest and require settlement within two days from the date of the transaction. Sundry payables are settled within the terms of payment offered. No interest is applicable on these accounts. Ordinary shares are classified as equity. Incremental costs (i.e. share issue costs) directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from the proceeds raised by the Company.
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56 WAM Microcap Annual Report 2026 ABN 34 617 838 418 9. Issued capital (cont’d) b) Ordinary shares 2026 $ 2025 $ Balance at the beginning of the year 279,197,962 ordinary shares fully paid (2025: 276,853,648) 347,776,302 344,370,896 1,000,622 ordinary shares issued on 29 October 2025 under a dividend reinvestment plan 1,672,543 - 1,138,762 ordinary shares issued on 29 May 2026 under a dividend reinvestment plan 1,656,053 - 1,149,147 ordinary shares issued on 29 October 2024 under a dividend reinvestment plan - 1,720,490 1,195,167 ordinary shares issued on 30 April 2025 under a dividend reinvestment plan - 1,698,181 Share issue costs (net of tax) - (13,265) At reporting date 351,104,898 347,776,302 Holders of ordinary shares are entitled to receive dividends as declared from time to time, and are entitled to one vote per share at shareholder meetings, all substantive resolutions will be decided by a poll. In the event of winding up of the Company, ordinary shareholders rank after creditors and share in any proceeds on winding up in proportion to the number of shares held. c) Capital management The Board manages the Company’s capital by regularly reviewing the most efficient manner by which the Company deploys its capital. At the core of this, the Board is of the belief that shareholder value should be preserved through the management of the level of distributions to shareholders, share placements, share purchase plans, option issues and share buy-backs. These capital management initiatives will be used when deemed appropriate by the Board. There have been no changes in the strategy adopted by the Board to manage the capital of the Company during the year. The Company is not subject to any externally imposed capital requirements. 10. Profits reserve The profits reserve is made up of amounts transferred from current period and prior year earnings that are preserved for future dividend payments to shareholders. The profits reserve is made up of both realised and unrealised amounts from the performance of the investment portfolio in each period. The profits reserve represents the ability of the Company to frank future dividend payments for shareholders, subject to the availability of franking credits. There can be situations where the franking account balance including franking credits generated from the receipt of franked dividends from investee companies, and the payment of tax on realised profits, may not match the profits reserve balance (which includes realised and unrealised profits).
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wilsonassetmanagement.com.au 57 10. Profits reserve (cont’d) 2026 $ 2025 $ Profits reserve 140,204,880 128,168,805 Movement in profits reserve Balance at the beginning of the year 128,168,805 113,854,303 Transfer of profits during the year 41,824,197 43,583,480 Final dividend paid (refer to Note 4(a)) (14,797,495) (14,534,826) Interim dividend paid (refer to Note 4(a)) (14,990,627) (14,734,152) At reporting date 140,204,880 128,168,805 11. Accumulated losses 2026 $ 2025 $ Balance at the beginning of the year (81,074,592) (81,074,592) (Loss)/profit for the year attributable to members of the Company (141,974) 43,583,480 Transfer to profits reserve (41,824,197) (43,583,480) At reporting date (123,040,763 ) (81,074,592) 12. Cash and cash equivalents Cash at the end of the financial year as shown in the Statement of Cash Flows is reconciled to the related items in the Statement of Financial Position as follows: 2026 $ 2025 $ Cash at bank 32,552,412 33,919,791 The weighted average interest rate for cash as at 30 June 2026 is 4.44% (2025: 3.87%). There were no term deposits held at 30 June 2026 (2025: nil). Cash and cash equivalents include cash on hand and at call deposits with banks or financial institutions.
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58 WAM Microcap Annual Report 2026 ABN 34 617 838 418 13. Cash flow information 2026 $ 2025 $ Reconciliation of (loss)/profit after tax to cash flows from operating activities: (Loss)/profit after income tax (141,974) 43,583,480 Fair value gains/(losses) and movements in financial assets 42,618,434 (25,663,203) Changes in assets and liabilities: Decrease in receivables 303,420 209,573 (Increase)/decrease in deferred tax assets (9,367,516) 3,758,194 Decrease in payables (4,286,772) (2,174,186) Decrease in current tax liabilities (1,013,207) (8,937,516) (Decrease)/increase in deferred tax liabilities (3,020,238) 3,020,238 Net cash provided by operating activities 25,092,147 13,796,580 14. Earnings per share 2026 Cents per share 2025 Cents per share Basic and diluted (loss)/earnings per share (0.05) 15.69 2026 $ 2025 $ (Loss)/profit after income tax used in the calculation of basic and diluted (loss)/earnings per share (141,974) 43,583,480 There are no outstanding securities that are potentially dilutive in nature for the Company at the end of the year. 2026 No. 2025 No. Weighted average number of ordinary shares outstanding during the year used in calculating basic and diluted (loss)/earnings per share 280,064,509 277,862,219
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wilsonassetmanagement.com.au 59 15. Financial risk management The Company’s financial instruments consist of listed and unlisted investments, trade receivables, trade payables and cash. The risks exposed to through these financial instruments are discussed below and include credit risk, liquidity risk and market risk, consisting of interest rate risk and other price risk. There have been no substantive changes in the types of risks the Company is exposed to, how these risks arise, or the Board’s objective, policies and processes for managing or measuring the risks during the period. Under delegation from the Board, MAM Pty Limited (the Investment Manager or the Manager) has the responsibility for assessing and monitoring the financial market risk of the Company. The Manager monitors these risks daily. On a formal basis, the investment team meet twice weekly to monitor and manage the below risks as appropriate. a) Credit risk Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge a contracted obligation. The Manager monitors the credit worthiness of counterparties on an ongoing basis and evaluates the credit quality of all new counterparties before engaging with them. The maximum exposure to credit risk on financial assets, excluding investments of the Company which have been recognised in the Statement of Financial Position, is the carrying amount net of any expected credit losses of those assets. The Manager is responsible for ensuring there is appropriate diversification across counterparties and that they are of a sufficient quality rating. The Manager is satisfied that the counterparties are of sufficient quality and diversity to minimise any individual counterparty credit risk. The majority of the Company’s receivables arise from unsettled trades at year end which are settled two days after trade date. Engaging with counterparties via the Australian Securities Exchange facilitates the Company in both mitigating and managing its credit risk on an ongoing basis. Credit risk is not considered to be a major risk to the Company as the cash held by the Company or in its portfolios are invested with major Australian banks and their 100% owned banking subsidiaries that have a Standard and Poor’s short-term rating of A-1+ and long-term rating of AA-. The Company also holds cash with its custodian that has a Standard and Poor’s short-term rating of A-1 and long-term rating of A+. There were no term deposits held at 30 June 2026. None of the assets exposed to a credit risk are overdue or considered to be impaired. b) Liquidity risk Liquidity risk represents the risk that an entity will encounter difficulty in meeting obligations associated with financial liabilities. The Company’s major cash payments are the purchase of securities and dividends paid to shareholders, the levels of which are managed respectively by the Manager. The Company’s cash receipts depend upon the level of sales of securities, dividends and interest received, or other capital management initiatives that may be implemented by the Board from time to time. The Manager monitors the Company’s cash flow requirements daily by reference to known sales and purchases of securities, dividends and interest to be paid or received. Should these decrease by a material amount, the Company can alter its cash outflows as appropriate. The Company also holds a portion of its portfolio in cash sufficient to ensure that it has cash readily available to meet all payments.
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60 WAM Microcap Annual Report 2026 ABN 34 617 838 418 15. Financial risk management (cont’d) b) Liquidity risk (cont’d) Furthermore, the assets of the Company are largely in the form of tradable securities which, where liquidity is available, can be sold on market when and if required. The table below reflects an undiscounted contractual maturity analysis for the Company’s liabilities. The timing of cash flows presented in the table to settle liabilities reflects the earliest possible contractual settlement date to the reporting date. 30 June 202 6 >1 month $ <1 month $ Total $ Liabilities Trade and other payables - 10,483,048 10,483,048 Total - 10,483,048 10,483,048 30 June 2025 >1 month $ <1 month $ Total $ Liabilities Trade and other payables - 11,016,990 11,016,990 Total - 11,016,99 0 11,016,99 0 c) Market risk Market risk is the risk that changes in market prices, such as interest rates and other market prices will affect the fair value or future cash flows of the Company’s financial instruments. By its nature, as a listed investment company that invests in tradable securities, the Company will always be subject to market risk as it invests its capital in securities which are not risk free as the market price of these securities can fluctuate. (i) Interest rate risk The Company’s interest bearing financial assets expose it to risks associated with the effects of fluctuations in the prevailing level of market interest rates on its financial position and cash flows. The Company however is not materially exposed to interest rate risk as it did not hold any term deposits at the end of the period. As the Company’s exposure to interest rate risk is not significant, interest rate sensitivities have not been performed.
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wilsonassetmanagement.com.au 61 15. Financial risk management (cont’d) c) Market risk (cont’d) (i) Interest rate risk (cont’d) At the end of the reporting period, the Company’s exposure to interest rate risk and the effective weighted average interest rate was as follows: 30 June 202 6 Weighted average interest rate (% pa) Interest bearing $ Non-interest bearing $ Total $ Assets Cash and cash equivalents 4.44% 32,552,412 - 32,552,412 Trade and other receivables - 6,525,049 6,525,049 Financial assets - 331,738,563 331,738,563 Total 32,552,412 338,263,612 370,816,024 Liabilities Trade and other payables - 10,483,048 10,483,048 Total - 10,483,048 10,483,048 30 June 2025 Weighted average interest rate (% pa) Interest bearing $ Non-interest bearing $ Total $ Assets Cash and cash equivalents 3.87% 33,919,791 - 33,919,791 Trade and other receivables - 938,317 938,317 Financial assets - 376,494,319 376,494,319 Total 33,919,791 377,432,636 411,352,427 Liabilities Trade and other payables - 11,016,990 11,016,990 Total - 11,016,99 0 11,016,99 0 (ii) Other price risk Other price risk is the risk that the value of an instrument will fluctuate as a result of changes in market prices, whether caused by factors specific to an individual investment, its issuer or all factors affecting all instruments traded in the market. As the majority of the Company’s investments are carried at fair value with fair value changes recognised in the Statement of Comprehensive Income, all changes in market conditions will directly affect net investment income. Due to the short-term nature of receivables and payables, the carrying amounts of these financial assets and financial liabilities approximate their fair values.
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62 WAM Microcap Annual Report 2026 ABN 34 617 838 418 15. Financial risk management (cont’d) c) Market risk (cont’d) (ii) Other price risk (cont’d) The Manager seeks to manage and reduce the other price risk of the Company by diversification of the investment portfolio across numerous stocks and multiple industry sectors. The risks and relative weightings of the individual securities and market sectors are reviewed daily in order to manage risk. The Company does not have set parameters as to a minimum or maximum amount of the portfolio that can be invested in a single company or sector. The Company’s industry sector weighting of gross assets as at 30 June 2026 is as below: Industry sector 2026 % 2025 % Industrials 22.0 16.1 Consumer discretionary 15.8 14.8 Information technology 14.7 13.3 Financials 14.4 24.5 Health care 9.4 9.0 Materials 7.7 4.8 Real estate 2.5 2.2 Utilities 2.3 1.7 Consumer staples 1.8 0.1 Communication services 1.2 6.0 Energy 0.1 0.4 Total 91.9 92.9 There were no securities representing over 5 percent of the gross assets of the Company as at 30 June 2026 (2025: nil). Sensitivity analysis For investments held by the Company at the end of the reporting period, a sensitivity analysis was performed relating to its exposure to other price risk. This analysis demonstrates the effect on current year net assets after tax as a result of a reasonably possible change in the risk variable. The sensitivity assumes all other variables to remain constant. Investments represent 91.9% (2025: 92.9%) of gross assets at year end. At reporting date, if the fair value of each of the investments within the portfolio changed by 5%, the impact on the Company’s profit or loss after tax would have been an increase/decrease by $11,610,850 (2025: $13,177,301). This would result in the 30 June 2026 net asset backing after tax moving by 4.1 cents per share (2025: 4.7 cents per share).
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wilsonassetmanagement.com.au 63 15. Financial risk management (cont’d) d) Financial instruments measured at fair value Included within Level 1 of the hierarchy are listed investments. The fair values of these financial assets have been based on the closing quoted last sale prices at the end of the reporting period, excluding transaction costs. Included within Level 2 of the hierarchy are WAM Microcap’s investments in unlisted investments. Valuation techniques such as comparisons to similar investments for which market observable prices are available, the net asset backing per share, the price of the most recent arm’s length transaction or the last closing price have been used to determine fair value for the unlisted investments. Included within Level 3 of the hierarchy is the Company’s investment in Xpansiv Limited (Xpansiv) and a convertible note in Norcliffe Mining Services Limited (Norcliffe). Due to the uncertainty over the outlook for the businesses, the fair value of both the unlisted investments in Xpansiv and the convertible note in Norcliffe have been reduced by the Investment Manager. During the year, Xpansiv and Norcliffe were transferred from Level 2 to Level 3 in the fair value hierarchy given the unobservable nature of the inputs used to determine their fair value (2025: nil). Based on the Company’s Unlisted Investment Valuation Policy, these transfers have occurred where the previously applied valuation approach was deemed no longer appropriate. The following table presents the Company’s financial assets measured and recognised at fair value at 30 June 2026: 30 June 202 6 Level 1 $ Level 2 $ Level 3 $ Total $ Financial assets 309,826,196 15,741,480 6,170,887 331,738,563 Total 309,826,196 15,741,480 6,170,887 331,738,563 30 June 202 5 Level 1 $ Level 2 $ Level 3 $ Total $ Financial assets 361,653,729 14,840,590 - 376,494,319 Total 361,653,729 14,840,590 - 376,494,319 The carrying amounts of trade and other receivables and trade and other payables are assumed to approximate their fair values due to their short-term nature. AASB 13: Fair Value Measurement requires the disclosure of fair value information using a fair value hierarchy reflecting the significance of the inputs in making the measurements. The fair value hierarchy consists of the following levels: Level 1: Quoted prices in active markets for identical assets or liabilities. Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability either directly (as prices) or indirectly (derived from prices). Level 3: Inputs for the asset or liability that are not based on observable market data (unobservable inputs).
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64 WAM Microcap Annual Report 2026 ABN 34 617 838 418 16. Investment transactions The total number of contract notes that were issued for transactions in securities during the financial year was 4,473 (2025: 5,215). Each contract note could involve multiple transactions. The total brokerage paid on these contract notes was $1,725,777 (2025: $1,812,957). 17. Segment reporting The Company currently engages in investing activities, including cash, term deposits and equity investments. It has no reportable operating segments. 18. Capital commitments There were no capital commitments for the Company as at 30 June 2026 (2025: nil). 19. Contingent liabilities There were no contingent liabilities for the Company as at 30 June 2026 (2025: nil). 20. Key management personnel compensation The names and positions held of the Company’s key management personnel (including Directors) in office at any time during the financial year are: • Geoff Wilson AO Chairman • Kate Thorley Director • Jacqueline Sullivan Director • Adrian Siew Director a) Remuneration There are no executives that are paid by the Company. MAM Pty Limited, the Investment Manager of the Company, provides the day-to-day management of the Company and is remunerated for these services as outlined in Note 21. Information regarding individual Directors’ remuneration is provided in the Remuneration Report of the Directors’ Report on pages 37 to 39, as required by Corporations Regulation 2M.3.03. Short-term employee benefits Directors’ fees $ Post-employment benefits Superannuation $ Total $ Total Directors remuneration paid by the Company for the year ended 30 June 2026 62,500 7,500 70,000 Total Directors remuneration paid by the Company for the year ended 30 June 2025 62,782 7,218 70,000
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wilsonassetmanagement.com.au 65 20. Key management personnel compensation (cont’d) b) Shareholdings At 30 June 2026, the Company’s key management personnel and their related parties held the following interests in the Company: Ordinary shares held Directors Balance at 30 June 2025 Acquisitions Disposals Balance at 30 June 2026 Geoff Wilson 1,082,911 - - 1,082,911 Kate Thorley 248,406 1,098 - 249,504 Jacqueline Sullivan - - - - Adrian Siew - - - - 1,331,317 1,098 - 1,332,415 At 30 June 2025, the Company’s key management personnel and their related parties held the following interests in the Company: Ordinary shares held Directors Balance at 30 June 202 4 Acquisitions Disposals Balance at 30 June 202 5 Geoff Wilson 1,082,911 - - 1,082,911 Kate Thorley 247,326 1,080 - 248,406 Jacqueline Sullivan - - - - Adrian Siew - - - - 1,330,237 1,080 - 1,331,317 Directors and Director related entities disposed of and acquired ordinary shares in the Company on the same terms and conditions available to other shareholders. The Directors have not, during or since the end of the financial year, been granted options over unissued shares or interests in shares of the Company as part of their remuneration. 21. Related party transactions All transactions with related parties during the year were made on normal commercial terms and conditions and at market rates. The Company has an investment management agreement with MAM Pty Limited, part of the Wilson Asset Management Group. Geoff Wilson is the Director of MAM Pty Limited, the entity appointed to manage the investment portfolio of WAM Microcap. Entities associated with Geoff Wilson hold 100% of the issued shares of MAM Pty Limited. In its capacity as the Manager and in accordance with the investment management agreement, MAM Pty Limited was paid a management fee of 1% p.a. (plus GST) of the value of the portfolio amounting to $4,400,478 inclusive of GST (2025: $4,443,712). As at 30 June 2026, the balance payable to the Manager was $330,694 inclusive of GST (2025: $371,014).
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66 WAM Microcap Annual Report 2026 ABN 34 617 838 418 21. Related party transactions (cont’d) In addition, MAM Pty Limited is eligible to be paid a performance fee, being 20% (plus GST), in circumstances where: • the S&P/ASX Small Ordinaries Accumulation Index has increased over that period, the amount by which the value of the portfolio exceeds this increase; or • the S&P/ASX Small Ordinaries Accumulation Index has decreased over that period, the amount of the increase in the value of the portfolio. No performance fee is payable in respect of any performance period where the value of the portfolio has decreased over that period. For the year ended 30 June 2026, no performance fee was payable to the Manager (2025: $4,282,786). Wilson Asset Management (International) Pty Limited has a service agreement in place with WAM Microcap to provide accounting and company secretarial services on commercial terms. For the year ended 30 June 2026, the fee for accounting services amounted to $82,500 inclusive of GST (2025: $68,750) and the fee for company secretarial services amounted to $27,500 inclusive of GST (2025: $23,650). No Director has received or become entitled to receive a benefit (other than those detailed above) by reason of a contract made by the Company or a related company of the Director or with a firm of which they are a member or with a company in which they have substantial financial interest. 22. Events subsequent to reporting date Since the end of the year, the Directors declared a fully franked final dividend of 5.35 cents per share to be paid on 29 October 2026. No other matters or circumstances have arisen since the end of the financial year, other than already disclosed, which significantly affect or may significantly affect the operations of the Company, the results of those operations, or the state of affairs of the Company in subsequent financial years.
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wilsonassetmanagement.com.au 67 Directors’ Declaration The Directors of WAM Microcap Limited declare that: 1) The financial statements as set out in pages 44 to 66 and the additional disclosures included in the Directors’ Report designated as “Remuneration Report”, as set out on pages 37 to 39, are in accordance with the Corporations Act 2001, including: a) complying with Australian Accounting Standards, which, as stated in Note 1 to the financial statements, constitutes compliance with International Financial Reporting Standards (IFRS), the Corporations Regulations 2001 and other mandatory professional reporting requirements; and b) giving a true and fair view of the financial position of the Company as at 30 June 2026 and of its performance, as represented by the results of the operations and the cash flows, for the year ended on that date. 2) The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the Chief Executive Officer and Chief Financial Officer of the Manager, MAM Pty Limited. 3) At the date of this declaration, in the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. 4) The consolidated entity disclosure statement required by subsection 295(3A) of the Corporations Act 2001, as set out on page 44, is true and correct. Signed in accordance with a resolution of the Board of Directors. Geoff Wilson AO Chairman Dated this 20 th day of August 2026
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68 Pitcher Partners Sydney ABN 17 795 780 962 Level 16, Tower 2 Darling Park 201 Sussex Street Sydney NSW 2000 Postal address GPO Box 1615 Sydney NSW 2001 +61 2 9221 2099 sydneypartners@pitcher.com.au pitcher.com.au Pitcher Partners is an association of independent firms. Pitcher Partners Sydney ABN 17 795 780 962. Liability limited by a scheme approved under Professional Standards Legislation. Pitcher Partners is a member of the global network of Baker Tilly International Limited, the members of which are separate and independent legal entities. Adelaide | Brisbane | Melbourne | Newcastle | Perth | Sydney Independent Auditor’s Report To the Members of WAM Microcap Limited ABN 34 617 838 418 Report on the Audit of the Financial Report Opinion We have audited the financial report of WAM Microcap Limited (“the Company”), which comprises the statement of financial position as at 30 June 2026, the statement of comprehensive income, the statement of changes in equity and the statement of cash flows for the year then ended, and notes to the financial statements, including material accounting policy information, the consolidated entity disclosure statement, and the Directors’ declaration. In our opinion, the accompanying financial report of WAM Microcap Limited is in accordance with the Corporations Act 2001, including: i. giving a true and fair view of the Company’s financial position as at 30 June 202 6 and of its financial performance for the year then ended; and ii. complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for Opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the APES 110 Code of Ethics for Professional Accountants (including Independence Standards) issued by the Accounting Professional and Ethical Standards Board Limited (“the Code”) that are relevant to audits of the financial report of public interest entities in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001 , which has been given to the Directors of the Company, would be in the same terms if given to the Directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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69 Pitcher Partners Sydney ABN 17 795 780 962 An association of independent firms Key Audit Matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Key Audit Matter How our audit addressed this matter Existence and Valuation of Financial Assets Refer to Note 7: Financial Assets We focused our audit effort on the existence and valuation of the Company’s financial assets as they represent the most significant driver of the Company’s Net Tangible Assets and Profit. In accordance with Australian Accounting Standards, these investments are disclosed as either “Level 1” (i.e. where the fair value is based on quoted prices in active markets) or “Level 2” (i.e. where key inputs to fair value are based on other observable inputs) or “Level 3” (i.e. where key inputs to fair value are based on unobservable inputs). The Company’s investments consist of both listed and unlisted securities. Investments are valued by multiplying the quantity held by the respective quoted market price or estimated fair value per security for unlisted investments. Our audit procedures included the following: ▪ Obtained an understanding of and evaluated the design and implementation of the investment management processes and controls; ▪ Reviewed and evaluated the independent auditor’s report on the design and operating effectiveness of internal controls (ASAE 3402 Assurance Reports on Controls at a Service Organisation) for the Custodian; ▪ Agreed investment holdings to confirmations obtained directly from the Custodian or alternatively with the investee; ▪ Assessed and recalculated the Company’s valuation of individual Level 1 and Level 2 investment holdings using independent observable pricing sources and inputs; ▪ Assessed the fair value adopted by management and any other relevant supporting information, for material Level 3 investments where there were limited or no observable inputs; and ▪ Assessed the adequacy of disclosures in the financial statements.
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70 Pitcher Partners Sydney ABN 17 795 780 962 An association of independent firms Key Audit Matters (Continued) Other Information The Directors are responsible for the other information. The other information comprises the information included in the Company’s annual report for the year ended 30 June 202 6, but does not include the financial report and our auditor’s report thereon. Our opinion on the financial report does not cover the other information and accordingly we do not express any form of assurance conclusion thereon. In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated. If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard. Key Audit Matter How our audit addressed this matter Accuracy of Management and Performance Fees Refer to Note 8: Trade and other payables and Note 21: Related party transactions We focused our audit effort on the accuracy of management and performance fees as they are significant expenses of the Company and their calculation requires adjustments and key inputs. Adjustments include company dividends, tax payments, capital raisings, capital reductions and other relevant expenses. Key inputs include the value of the portfolio, the performance of the relevant comparable benchmark and application of the correct fee percentage in accordance with the Investment Management Agreement between the Company and the Investment Manager. In addition to their quantum, as these transactions are made with related parties, there are additional inherent risks associated with these transactions, including the potential for these transactions to be made on terms and conditions more favourable than if they had been with an independent third-party. Our audit procedures included the following: ▪ Obtained an understanding of and evaluated the design and implementation of the processes and controls for calculating the management and performance fees; ▪ Made enquiries with the Investment Manager and those charged with governance with respect to any significant events during the period and associated adjustments made as a result, in addition to reviewing ASX announcements and Board meeting minutes; ▪ Tested adjustments such as company dividends, tax payments, capital raisings, capital reductions (where applicable) as well as any other relevant expenses used in the calculation of management and performance fees; ▪ Tested key inputs including the value of the portfolio, the performance of the relevant comparable benchmark and application of the correct fee percentage in accordance with our understanding of the Investment Management Agreement; and ▪ Assessed the adequacy of disclosures made in the financial statements.
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71 Pitcher Partners Sydney ABN 17 795 780 962 An association of independent firms Responsibilities of the Directors for the Financial Report The Directors of the Company are responsible for the preparation of: a) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; and b) the consolidated entity disclosure statement that is true and correct in accordance with the Corporations Act 2001; and for such internal control as the Directors determine is necessary to enable the preparation of : (i) the financial report (other than the consolidated entity disclosure statement) that gives a true and fair view and is free from material misstatement, whether due to fraud or error ; and (ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement, whether due to fraud or error. In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so. Auditor’s Responsibilities for the Audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high lev el of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, indi vidually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and maintain professional scepticism throughout the audit. We also: • Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error, design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and appropriate to provide a basis fo r our opinion. The risk of not detecting a material misstatement resulting from fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions, misrepresentations, or the override of internal control. • Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Company’s internal control. • Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and related disclosures made by the Directors. • Conclude on the appropriateness of the Directors’ use of the going concern basis of accounting and, based on the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may cast significant doubt on the Company’s ability to continue as a going concern. If we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the financial report or, if such disclosures are inadequate, to modify our o pinion. Our conclusions are based on the audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause the Company to cease to continue as a going concern.
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72 Pitcher Partners Sydney ABN 17 795 780 962 An association of independent firms Auditor’s Responsibilities for the Audit of the Financial Report (Continued) • Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and whether the financial report represents the underlying transactions and events in a manner that achieves fair presentation. We communicate with the Directors regarding, among other matters, the planned scope and timing of the audit and significant audit findings, including any significant deficiencies in internal control that we identify during our audit. We also provide the Directors with a statement that we have complied with relevant ethical requirements regarding independence, and to communicate with them all relationships and other matters that may reasonably be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards applied. From the matters communicated with the Directors, we determine those matters that were of most significance in the audit of the financial report of the current period and are therefore the key audit matters. We describe these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should not be communicated in our report because the adverse consequences of doing so would reasonably be expected to outweigh the public interest benefits of such communication. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 37 to 39 of the Directors’ Report for the year ended 30 June 2026. In our opinion, the Remuneration Report of WAM Microcap Limited, for the year ended 30 June 2026, complies with section 300A of the Corporations Act 2001. Responsibilities The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. C I Chandran Pitcher Partners Partner Sydney 20 August 2026
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wilsonassetmanagement.com.au 73 Investments at fair value as at 30 June 2026 Company Name Code Fair Value $ % of Gross Assets Industrials Stealth Group Holdings Limited SGI 9,446,940 2.6% IPD Group Limited IPG 8,291,573 2.3% GenusPlus Group Limited GNP 6,366,045 1.8% Symal Group Limited SYL 6,178,904 1.7% Civmec Limited CVL 5,940,700 1.6% Service Stream Limited SSM 5,796,115 1.6% Mayfield Group Holdings Limited MYG 5,619,638 1.6% Kelsian Group Limited KLS 5,228,742 1.4% Advanced Innergy Holdings Limited AIH 5,120,080 1.4% SKS Technologies Group Limited SKS 3,948,987 1.1% SHAPE Australia Corporation Limited SHA 3,861,144 1.1% EVZ Limited EVZ 3,380,918 0.9% Tasmea Limited TEA 3,377,130 0.9% Duratec Limited DUR 2,298,025 0.6% Acrow Limited ACF 1,884,788 0.6% Mader Group Limited MAD 1,726,916 0.5% Aquirian Limited AQN 1,051,949 0.3% 79,518,594 22.0% Consumer discretionary EDU Holdings Limited EDU 10,484,821 2.9% Kogan.com Limited KGN 9,233,777 2.6% Beacon Lighting Group Limited BLX 7,058,432 2.0% SkinKandy Limited SK1 6,210,010 1.7% Baby Bunting Group Limited BBN 5,670,444 1.6% betr Entertainment Limited BBT 5,614,374 1.6% Supply Network Limited SNL 5,269,663 1.5% Autosports Group Limited ASG 2,697,548 0.7% Adairs Limited ADH 1,212,472 0.3% Myer Holdings Limited MYR 1,007,894 0.3% Propel Funeral Partners Limited PFP 892,607 0.2% Company Name Code Fair Value $ % of Gross Assets Consumer discretionary (cont’d) Turners Automotive Group Limited TRA NZ 488,948 0.1% Joyce Corporation Limited JYC 361,748 0.1% Bapcor Limited BAP 345,568 0.1% Jumbo Interactive Limited JIN 233,955 0.1% G8 Education Limited GEM 139,072 0.0% The Star Entertainment Group Limited SGR 52,399 0.0% 56,973,732 15.8% Information technology Echo IQ Limited EIQ 9,906,528 2.7% FINEOS Corporation Holdings plc FCL 9,378,741 2.6% Energy One Limited EOL 7,759,856 2.2% SharonAI Holdings Inc.* SHAZ US 6,619,351 1.8% Wrkr Limited WRK 5,663,929 1.6% Qoria Limited QOR 4,492,555 1.2% DXN Limited DXN 2,339,581 0.7% Objective Corporation Limited OCL 2,167,358 0.6% Black Pearl Group Limited BPG NZ 1,907,384 0.5% Packform Pty Limited* n/a 1,734,187 0.5% Gentrack Group Limited GTK 667,360 0.2% Audinate Group Limited AD8 310,390 0.1% 52,947,220 14.7% Financials COG Financial Services Limited COG 7,553,917 2.1% Navigator Global Investments Limited NGI 5,935,967 1.6% Pay.com.au Limited* n/a 5,695,550 1.6% Xpansiv Limited* n/a 5,627,702 1.6% Zip Co Limited ZIP 5,305,853 1.5% L1 Group Limited L1G 5,101,579 1.4% Plenti Group Limited PLT 4,970,378 1.4%
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74 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Company Name Code Fair Value $ % of Gross Assets Financials (cont’d) Generation Development Group Limited GDG 4,557,487 1.2% Australian Finance Group Limited AFG 2,374,843 0.7% Qualitas Limited QAL 2,355,386 0.6% Aura Ventures Growth SPV I* n/a 1,375,200 0.4% Regal Partners Limited RPL 838,544 0.2% Swyftx Pty Limited* n/a 217,192 0.1% Limepay Pty Limited* n/a 100,000 0.0% 52,009,598 14.4% Health care Artrya Limited AYA 10,131,124 2.8% Imricor Medical Systems Inc. IMR 9,229,369 2.6% Integral Diagnostics Limited IDX 7,468,072 2.1% Healius Limited HLS 3,397,845 0.9% Vitrafy Life Sciences Limited VFY 1,747,492 0.5% Australian Clinical Labs Limited ACL 986,975 0.3% BLS Pharmaceuticals Limited BXN 973,389 0.2% Avecho Biotechnology Limited AVE 124,104 0.0% 34,058,370 9.4% Materials Forrestania Resources Limited FRS 9,534,299 2.7% Wagners Holding Company Limited WGN 7,537,960 2.1% Vysarn Limited VYS 5,949,310 1.6% Lindian Resources Limited LIN 4,079,831 1.1% Norcliffe Mining Services Limited^ n/a 543,185 0.2% 27,644,585 7.7% Company Name Code Fair Value $ % of Gross Assets Real estate Cedar Woods Properties Limited CWP 9,141,882 2.5% 9,141,882 2.5% Utilities LGI Limited LGI 6,025,904 1.7% Frontier Energy Limited FHE 2,250,000 0.6% 8,275,904 2.3% Consumer staples SPC Global Holdings Limited SPG 5,345,333 1.5% Decidr AI Industries Limited DAI 1,185,338 0.3% 6,530,671 1.8% Communication services FortifAI Limited FTI 2,909,485 0.8% Tuas Limited TUA 1,438,199 0.4% 4,347,684 1.2% Energy Alligator Energy Limited AGE 290,323 0.1% 290,323 0.1% Total long portfolio 331,738,563 91.9% Total cash and cash equivalents, income receivable and net outstanding settlements 29,113,531 8.1% Gross assets 360,852,094 *Unlisted investment. ^Unlisted convertible note. The total number of stocks held at the end of the financial year was 81.
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wilsonassetmanagement.com.au 75 ASX additional information Additional information required by the Australian Securities Exchange Limited Listing Rules and not disclosed elsewhere in this report. Shareholdings • Substantial shareholders (as at 31 July 2026) – there are currently no substantial shareholders. • On-market buy back (as at 31 July 2026) – there is no current on-market buy back. Distribution of shareholders (as at 31 July 2026) Category Number of shareholders % of issued capital held 1 – 1,000 889 0.1% 1,001 – 5,000 1,759 1.8% 5,001 – 10,000 1,323 3.7% 10,001 – 100,000 4,876 57.7% 100,001 and over 391 36.7% 9,238 100.0% The number of shareholders holding a less than marketable parcel is 275. Twenty largest shareholders – Ordinary shares (as at 31 July 2026) Name Number of ordinary shares held % of issued capital held HSBC Custody Nominees (Australia) Limited 9,177,803 3.3% BNP Paribas Noms Pty Limited 4,761,310 1.7% Sysha Pty Limited 4,200,000 1.5% BNP Paribas Nominees Pty Limited 4,162,375 1.5% IOOF Investment Services Limited 2,326,763 0.8% Citicorp Nominees Pty Limited 1,987,268 0.7% Netwealth Investments Limited 1,857,091 0.7% Intech Solutions Pty Limited 1,800,000 0.6% Entities associated with Mr Geoff Wilson 1,082,911 0.4% Barefoot Super Pty Limited 1,000,952 0.4% 888 Corporation Pty Limited 1,000,000 0.4% Gold Tiger Equities Pty Limited 871,156 0.3% James & Diana Ramsay Foundation Pty Limited 766,115 0.3% Australian Investors Pty Limited 763,677 0.3% R W Kirby Pty Limited 724,997 0.3% Geat Incorporated 672,300 0.2% Gaseous Pty Limited 629,766 0.2% TJ Finocchiaro Super Pty Limited 600,000 0.2% Kingslynn Pty Limited 536,080 0.2% Bond Street Custodians Limited 504,598 0.2% 39,425,162 14.2% Stock exchange listing Quotation has been granted for all the ordinary shares of the Company on all Member Exchanges of the ASX Limited.
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76 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Glossary Term Definition Benchmark A standard against which performance can be measured, usually an index that averages the performance of companies in a stock market or a segment of the market. Dividend coverage Dividend coverage represents the number of years the Company can maintain the current full year dividend payment paid semi-annually from the current level of profits reserve. This is calculated as follows: Profits reserve ÷ annual dividend amount Dividend yield The annual dividend amount expressed as a percentage of the share price at a certain point in time. This is calculated as follows: Annual dividend amount per share ÷ share price Franking credits Franking credits (also known as imputation credits) are tax credits attached to franked dividends that companies distribute to their shareholders. These credits represent the tax the company has already paid on its profits, which helps to avoid double taxation of those profits once distributed to shareholders. Shareholders can use franking credits to offset their income tax liabilities. Grossed-up dividend yield Grossed-up dividend yield includes the value of franking credits and is based on the corporate tax rate (generally 30.0%), assuming the dividend is fully franked. This is calculated as follows: Annual dividend yield % ÷ (1 – the corporate tax rate of 30.0%) Investment portfolio performance Investment portfolio performance measures the growth of the underlying portfolio of investments and cash before expenses, fees and taxes, to compare to the relevant benchmark which is also before expenses, fees and taxes. Listed investment company (LIC) LICs are corporate entities in a ‘company’ structure providing a permanent and stable closed-end pool of capital, established for the purpose of investing in a portfolio of securities or investments on behalf of shareholders. LICs are listed on an exchange, which in Australia is primarily the Australian Securities Exchange (ASX). Each company on the ASX has an ASX code, also known as a ‘ticker’. Management fee Management fee means the fee payable to the Investment Manager in return for its duties as Investment Manager of the Portfolio. The Investment Manager is entitled to be paid monthly a management fee equal to 0.0833334% per month or 1% per annum (plus GST) of the value of the portfolio (calculated on the last business day of each month and paid at the end of each month in arrears) in accordance with the Investment Management Agreement (IMA). Net tangible assets (NTA) The aggregate of a company’s assets (i.e. cash and investments) less its liabilities and current and deferred income tax. The NTA represents the value of the company and is announced on the ASX to shareholders each month.
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wilsonassetmanagement.com.au 77 Term Definition NTA before tax The NTA of a company, exclusive of current and deferred income tax assets or liabilities. The NTA before tax represents the investment portfolio of the Company, i.e. cash and investments, less any associated liabilities excluding tax and is the most comparable figure for a LIC to an exchange traded fund (ETF) or managed fund. NTA after tax The NTA of a company, inclusive of current and deferred income tax assets or liabilities. Performance fee Performance fee means the fee payable to the Investment Manager under the IMA. The Investment Manager is eligible to be paid a performance fee being 20% (plus GST), in circumstances where: • the S&P/ASX Small Ordinaries Accumulation Index has increased over that period, the amount by which the value of the portfolio exceeds this increase; or • the S&P/ASX Small Ordinaries Accumulation Index has decreased over that period, the amount of the increase in the value of the portfolio. No performance fee is payable in respect of any performance period where the value of the portfolio has decreased over the period. Profits reserve The profits reserve is made up of amounts transferred from current and retained earnings that are preserved for future dividend payments. The profits reserve forms part of the NTA of the company and is invested in the market. The profits reserve is an accounting entry only that quarantines the profits of the LIC for future dividend payments. We convert the profits reserve amount into dividend years coverage for ease of seeing how sustainable the current dividend amount is. The ability to frank a dividend is dependent on the availability of franking credits which are generated from the receipt of franked dividends from investee companies and the payment of tax on realised profits. There can be situations where the franking account balance including franking credits generated from the receipt of franked dividends from investee companies and the payment of tax on realised profits, may not match the profits reserve balance (which includes realised and unrealised profits). Share price premium or discount LIC’s shares are traded on the ASX and a LIC has a fixed amount of capital. At times, the LIC’s share price can fluctuate above or below its NTA value. When the share price is above the NTA of the company, the LIC is trading at a premium to NTA. When the share price is below the NTA, the LIC is trading at a discount to NTA. This is calculated as follows: (Share price – NTA before tax) ÷ NTA before tax S&P/ASX Small Ordinaries Accumulation Index The S&P/ASX Small Ordinaries Accumulation Index is comprised of companies included in the S&P/ASX 300 Index, but not in the S&P/ASX 100 Index. This Index assumes that dividends are reinvested and measures both growth and dividend income. The S&P/ASX Small Ordinaries Accumulation Index is used as a benchmark for small-cap Australian equity portfolios. Three key measures of a LIC’s performance The three key measures crucial to the evaluation of a LIC’s performance are: investment portfolio performance, NTA growth and total shareholder return.
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78 WAM Microcap Annual Report 2026 ABN 34 617 838 418 Term Definition Total shareholder return (TSR) Total share price return to shareholders, assuming all dividends received were reinvested without transaction costs and the compounding effect over the period. This measure is calculated before and after the value of franking credits attached to dividends paid to shareholders This is calculated as follows: (Closing share price – starting share price + dividends paid + franking credits) ÷ starting share price Note: the TSR reported in the Annual Report and media release is calculated monthly, using the above formula, and includes the effect of compounding over the period.
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wilsonassetmanagement.com.au 79 Corporate Directory WAM Microcap Directors Geoff Wilson AO (Chairman) Kate Thorley Jacqueline Sullivan Adrian Siew Joint Company Secretaries Jesse Hamilton Linda Kiriczenko Investment Manager MAM Pty Limited Level 26, Governor Phillip Tower 1 Farrer Place Sydney NSW 2000 (part of the Wilson Asset Management Group) Country of Incorporation Australia Australian Securities Exchange WAM Microcap Limited Ordinary Shares (WMI) Registered Office Level 26, Governor Phillip Tower 1 Farrer Place Sydney NSW 2000 Contact Details GPO Box 4658, Sydney NSW 2001 T (02) 9247 6755 E info@wilsonassetmanagement.com.au W wilsonassetmanagement.com.au Share Registry Boardroom Pty Limited Level 8, 210 George Street Sydney NSW 2000 T 1300 420 372 (in Australia) +61 2 8023 5472 (International) For enquiries relating to shareholdings, dividends (including participation in the dividend reinvestment plan) and related matters, please contact the share registry. Auditor Pitcher Partners Sydney