FUTURE GENERATION AUSTRALIA LIMITED — AGM Information 2024

May 6, 2024

ASX announcement 7 May 2024

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Annual General Meeting Chair’s Address

Introduction and welcome

Good morning everyone. Welcome to the tenth Annual General Meeting of Future Generation Australia Limited (Future Generation Australia or the Company).

Before we begin, I would like to acknowledge the Gadigal people of the Eora nation and pay my respects to Elders past and present, who have been the custodians of this land on which I stand for tens of thousands of years.

My name is Mike Baird and I’m the Chair of the Board of Directors.

As you may be aware, I expect to hand over the Chair role to Dr Philip Lowe, former Governor of the Reserve Bank of Australia, at the conclusion of today’s AGM, subject to his election as a Director. I will, however, be staying on as an independent Director of the Company.

In addition to Dr Lowe, I am delighted to be joined today by my fellow Board members, David Paradice AO, David Leeton, Gabriel Radzyminski, Future Generation Founder Geoff Wilson AO, and Kate Thorley. Stephanie Lai is an apology.

Also joining us is Caroline Gurney, the CEO of Future Generation Australia. Sandra McIntosh from Acclime Australia and Sylvia Wallace, a representative from our auditor Pitcher Partners, will be available to address any questions relating to the Company’s financial statements. We are also joined by Ophelia Lam, who is the Finance Manager at Wilson Asset Management and will act in the capacity of moderator, assisting us to address any questions submitted during this meeting.

Please note that this is a hybrid meeting, held both online and in person here, at the Museum of Sydney. This format allows those who cannot join us in person to participate.

Financial performance

2023 was a strong year for Future Generation Australia. The investment portfolio increased 13.1%[*] in FY2023, outperforming both the S&P/ASX All Ordinaries Accumulation Index and the S&P/ASX Small Ordinaries Accumulation Index.

This outperformance was particularly pleasing, coming at a time when small-cap companies continued to underperform their large-cap peers, both in Australia and globally. The Future Generation Australia investment portfolio has a bias towards small, mid and micro-cap companies – and a significant underweight exposure to large-cap companies.

Since inception, the Future Generation portfolio has increased by 8.9%[] per annum, outperforming the S&P/ASX All Ordinaries Accumulation Index. The investment portfolio outperformance has been achieved with less volatility[*] – 12.0% versus 14.5% for the S&P/ASX All Ordinaries Accumulation Index.

million, and the operating profit after tax was $45.8 million.

*Investment portfolio performance is before expenses, fees and taxes to compare to the relevant indexes which are also before expenses, fees and taxes.

**Volatility shows the degree to which the returns of the portfolio move around from their long-run average. It can be thought of as a measure of the risk in the investment portfolio. Volatility is measured by standard deviation, a statistical measurement.

Future Generation Australia Limited Level 26, Governor Phillip Tower, 1 Farrer Place, Sydney NSW 2000

W. futuregeninvest.com.au T. +61 2 9247 9202

ABN 97 063 935 553

ASX announcement

cents per share, bringing the fully franked full year dividend to 6.7 cents per share. This delivers shareholders a fully franked full year dividend yield of 6.1% and a grossed-up dividend yield of 8.7%[^] , based on Future Generation Australia’s 29 December 2023 closing share price of $1.105 per share. This is in line with the Company’s investment objective of providing you with a stream of fully franked dividends and was made possible by the investment portfolio’s solid performance since inception and the profits reserve available.

As at 31 March 2024, Future Generation Australia had 5.4 years of dividend coverage, which equates to 36.0 cents per share available in the profits reserve.

We are pleased to have outperformed the market and delivered strong investment portfolio performance for shareholders during a volatile time for equity markets. The team remains focused on actively narrowing the share price discount to net tangible assets for shareholders and returning the share price to trade at a premium to net tangible assets.

The Investment Committee has selected leading Australian fund managers with a proven ability to outperform the market and peers over the long term, and believes small, mid and micro-cap companies continue to provide our active managers with strong growth potential and attractive investment opportunities for our shareholders.

Social investment objectives, fund managers and service providers

Future Generation Australia is a dual-purpose investment vehicle. The Company’s primary investment objectives are to provide shareholders with a stream of fully franked dividends, achieve long-term capital growth and preserve shareholder capital. Our objective is to get bigger returns for you, our shareholders, while building better futures for young Australians.

By investing in Future Generation Australia, you get exposure to leading Australian fund managers – all of whom waive their usual management and performance fees. Their generosity enables us to invest 1 per cent of our assets to our social impact partners, which work to support youth at risk.

In 2023, we made our ninth annual social investment, totalling. $5.2 million and bringing our total donation since inception to more than $37.8 million.

We are incredibly grateful to our fund managers for managing Future Generation Australia’s capital entirely pro bono and, in doing so, foregoing fees worth $6.9 million in 2023. Similarly, our service providers, Board directors and Investment Committee also waived all their usual fees, which amounted to an estimated $1.7 million in 2023. These combined savings of approximately $8.6 million, or around 1.6% of the net assets of the Company, exceed the annual investment to our social impact partners.

I thank all of our fund managers and service providers - as well as you, our shareholders - for your continued support of Future Generation Australia and for being part of the Company’s innovative dual-purpose model, which demonstrates that shareholder and social returns can be achieved simultaneously.

^

Future Generation Australia Limited Level 26, Governor Phillip Tower, 1 Farrer Place, Sydney NSW 2000

W. futuregeninvest.com.au T. +61 2 9247 9202

ABN 97 063 935 553

ASX announcement

Social investment update

Future Generation Australia is proud to support our social impact partners, who work tirelessly to improve the lives of Australian children and youth at risk.

As at 31 December 2023, we were on track to deliver our tenth annual investment of approximately $5.3 million in November 2024, which will bring the total investment in our social impact partners since inception to more than $43.2 million.

trauma and distress among children and young people in Australia. This has led to surging demand for their services, at a time when cost of living pressures mean fundraising and volunteers numbers are both declining. Our partners’ dedication to supporting our young people is awe-inspiring. Their work goes to the heart of what we are trying to do at Future Generation Australia – which is to provide investment returns for our shareholders, while helping to improve the lives of vulnerable young Australians.

During September 2023, shareholders had the opportunity to allocate their portion of the annual social investment. We were delighted by the enthusiastic response this year, and would like to thank you all for your involvement in the process.

Since it was founded in 2014, Future Generation Australia has provided stable, annual funding to 10 not-for-profits which support children and youth at risk.

This type of long-term funding is in line with philanthropic best practice, and we are very proud of what we have been able to achieve with our social impact partners.

But, as Future Generation Australia moves into its second decade, it is time to ensure that our giving is as impactful as it can be for the current climate - and the circumstances that Australian children are dealing with now.

As such, Future Generation Australia will this year conduct a strategic review into our giving, to ensure that our social impact dollars are working as hard as they can for the benefit of the community.

This strategic review will be similar in nature to the recent 18-month review into Future Generation Global’s social impact strategy.

pushing towards the same goal of supporting at-risk Australian children, but getting there in different ways. Some may be existing social impact partners, others will be new.

As always, we will measure their impact to ensure transparency and accountability to you, our shareholders, so that you know that you are part of an effective giving program that is really making a difference.

Through our social impact partners, Future Generation Australia shareholders have provided crucial support and life-changing opportunities for thousands of vulnerable young Australians that will have ripple effects through their families and communities long into the future. We are thrilled that we will be able to continue to support the immense potential of Australian children and youth well into the future.

Future Generation Australia Limited Level 26, Governor Phillip Tower, 1 Farrer Place, Sydney NSW 2000

W. futuregeninvest.com.au T. +61 2 9247 9202

ABN 97 063 935 553

ASX announcement

Change of Chair

As announced on the ASX on March 12, I plan to hand over the Chair of Future Generation Australia to Dr Lowe at the conclusion of this AGM, subject to his election as a Director.

When I was asked to be Chair of Cricket Australia towards the end of 2022, I knew that it would be challenging to meet all of my commitments. Nevertheless, I was determined to stay involved with Future Generation Australia to support the great work that the Company is doing to help vulnerable young Australians.

replacement as Chair, I would step back, but remain as a director of the Company.

in the country and has demonstrated impeccable integrity throughout his 43 years at the RBA.

My fellow Directors and I believe it is an incredible opportunity for Future Generation Australia to be led by someone of Dr Lowe’s calibre and experience, and we unanimously ask you to support his election.

Closing remarks

The past two years as Chair of Future Generation Australia has deepened my commitment to the Company and I am pleased to be remaining on the Board as a Director.

addition to our fund managers and service providers. First, my fellow Directors and Committee members, who so generously give their time, skills and experience. Secondly, our CEO Caroline Gurney, who is leading Future Generation Australia and in its exciting new phase of selecting our new social impact partners.

Above all, on behalf of all of us, l reiterate my thanks to you, our shareholders. Thank you for your continued support of Future Generation Australia.

Please sign up and join more than 20,000 subscribers who receive our monthly investment update and learn more about how our social impact partners are improving the lives of children and young Australians at risk in our community. Please also visit our website,

futuregeninvest.com.au , fund managers and social impact partners.

This announcement has been authorised for release by the Board of Directors.

Future Generation Australia Limited Level 26, Governor Phillip Tower, 1 Farrer Place, Sydney NSW 2000

W. futuregeninvest.com.au T. +61 2 9247 9202

ABN 97 063 935 553

ASX announcement

About Future Generation Australia

Listed in 2014, Future Generation Australia Limited (ASX: FGX) provides:

Shareholders With exposure to leading Australian fund managers without paying management or performance fees.	Social impact partners Primarily focused on children and youth at risk with a stream of annual investments.	Fund managers With a unique opportunity to make a positive diference to Australia’s future generations.

For more information visit www.futuregeninvest.com.au or contact:

Mike Baird AO Chair T. +61 2 9247 9202 E. info@futuregeninvest.com.au

Geof Wilson AO Founder and Director X (Twitter) @GeofWilsonWAM

Caroline Gurney Chief Executive Officer M. +61 403 279 605

Kathryn Sherry Senior Corporate Affairs Advisor M. +61 417 691 164

Future Generation Australia Limited Level 26, Governor Phillip Tower, 1 Farrer Place, Sydney NSW 2000

W. futuregeninvest.com.au T. +61 2 9247 9202

ABN 97 063 935 553