FUTURE GENERATION AUSTRALIA LIMITED — AGM Information 2016

Nov 22, 2016

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Future Generation Investment Company (FGX)

Chairman’s Address – Annual General Meeting 23 November 2016

Delivered by Jonathan Trollip at the Annual General Meeting of shareholders held at the Hilton Hotel at 488 George Street Sydney on Wednesday 23 November 2016.

Introduction and welcome

Good afternoon everyone and a warm welcome to the third Annual General Meeting of Future Generation Investment Company Limited (FGX).

I am Jonathan Trollip, Chairman of the Board of Directors. I will be chairing the meeting today.

Seated here are your other Directors: Geoff Wilson, Gabriel Radzyminski, Kate Thorley, Paul Jensen, Scott Malcolm and David Leeton, together with Belinda Cleminson from Mertons representing Company Secretary Mark Licciardo and Louise Walsh, CEO of the Company. I note that non-executive director David Paradice is an apology.

Following the annual general meeting Geoff Wilson and Louise Walsh will provide shareholders with a detailed update on the Company.

Chairman’s Address

I am delighted to share with you today FGX’s impressive financial results, including dividends to shareholders, and our donation to our designated charities for the period.

Importantly, thank you to you, our shareholders, for supporting this Australian first: an ASX listed company that is focused on creating shareholder wealth while also changing the lives of Australia’s most vulnerable children and youth.

To our fund managers, thank you for your generosity in managing FGX’s capital entirely pro bono, and congratulations on achieving these outstanding results.

The value of the fund managers’ foregone management and performance fees for the 12 month period to 30 June 2016 totals an estimated $5.65 million. The value of the pro bono service providers including the Board and Committees totals an estimated $0.63 million. This represents a grand total of $6.28 million in pro bono support to our charities and cost savings for our shareholders.

In a challenging investment environment, the investment portfolio increased by 12.7% for FY16, outperforming the S&P/ASX All Ordinaries Accumulation Index by 10.7%.

Level 11, 139 Macquarie Street, Sydney NSW 2000 I GPO Box 4658 Sydney NSW 2001 I ABN: 97 063 935 553 Phone 02 9247 9202 I Fax 02 9247 6855 I info@futuregeninvest.com.au I www.futuregeninvest.com.au

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The portfolio delivered a strong, risk-adjusted return for the period, achieving a pre-tax profit of $17.75 million, an increase of 18.2% on the previous period.

The increase of the investment portfolio and outperformance against the Index was achieved with significantly less volatility than the market. The volatility of the FGX investment portfolio, as measured by its standard deviation during the period, was 8.8%, while the Index was 14.2%. The Company was also very pleased to deliver a fully franked full year dividend of 4.0 cents per share which represented a 100% increase on the 2.0 cents per share fully franked dividend for the period to 30 June 2015. This demonstrates FGX’s commitment to its investment objectives of providing a stream of fully franked dividends to shareholders, protecting their capital and delivering capital growth.

The Board is committed to paying an increasing stream of fully franked dividends to shareholders, provided the Company has sufficient profit reserves and franking credits and it is within prudent business practices.

At this stage the Board intends to pay an interim dividend, which will be announced with the release of FGX’s next results in February 2017.

Since FY16 year end, the Company has raised a total of $179.8 million through the exercise of bonus options issue upon relisting. With 89.9% of options exercised, this is an outstanding result.

Since the capital raising funds were received in early September 2014, FGX has invested in 19 funds managed by 18 managers. We were pleased to add CBG Asset Management and Centennial Asset Management as FGX fund managers during FY16.

Last month, we were delighted to make our second charitable donation.

For the period, we donated 1% of our Net Tangible Assets, a total of $2.29 million to Australian charities with a primary focus on children and youth at risk. The donation was a 39.6% increase from the previous year’s donation of $1.64 million.

We again had a pleasing response from you as shareholders to directing your charitable allocation.

The designated charities were extremely grateful for their second donation.

The Board is focused on accountability and measurement for our designated charities, and in that regard the designated charities report on their agreed outcomes at six monthly intervals. We look forward to keeping you updated on this, when you vote annually on directing your charitable allocation and in our Annual Reports.

The Board is pleased to have Louise Walsh appointed as CEO of the Company in March 2016. Bruce Tomlinson and David Smythe joined the Investment Committee in August 2016. Finally, I would like to update you that the Board proposes to change the financial year-end date for the Company from 30 June to 31 December. The Board of Future Generation Global Investment Company Limited (FGG) recently approved the same change for FGG.

Level 11, 139 Macquarie Street, Sydney NSW 2000 I GPO Box 4658 Sydney NSW 2001 I ABN: 97 063 935 553 Phone 02 9247 9202 I Fax 02 9247 6855 I info@futuregeninvest.com.au I www.futuregeninvest.com.au

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The main reason for the proposed change is because of the practical difficulties both companies have in meeting the Australian Securities Exchange (ASX) and Australian Securities & Investments Commission reporting deadlines because details of the distributable income are not being received from some fund managers in time for the Company to incorporate these in its results reported to the ASX.

This change to the year-end will occur via a transitional six-month reporting period from the period 1 July to 31 December 2016 before reverting to a 12 month financial year, the first of which will commence on 1 January and end on 31 December 2017. The change will be announced to the ASX once the relevant notifications and approvals have been achieved, including from the Australian Taxation Office. The change will mean the Annual General Meetings for the Company will be in May.

Thank you to my fellow Board and Committee members and shareholders for your continued support of the Company.

Level 11, 139 Macquarie Street, Sydney NSW 2000 I GPO Box 4658 Sydney NSW 2001 I ABN: 97 063 935 553 Phone 02 9247 9202 I Fax 02 9247 6855 I info@futuregeninvest.com.au I www.futuregeninvest.com.au