FUTURE GENERATION AUSTRALIA LIMITED — Capital/Financing Update 2021

Sep 27, 2021

ASX announcement & media release

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28 September 2021

Future Generation Australia’s Bonus Issue of Options to trade under the code FGXO

$1.48

option exercise price

$1.54

4.1%

5.8%

pre-tax net tangible annualised dividend grossed-up assets as at yield on option exercise dividend yield[^] 31 August 2021 price

Exercise price of $1.48 per Option

Each Future Generation Australia Option provides holders with the right, but not the obligation, to purchase one additional Future Generation Australia share for $1.48 per Option, without paying brokerage fees.

The Future Generation Australia Investment Company Limited (ASX: FGX) Board of Directors recently announced a one-for-one Bonus Option Issue to all shareholders of the Company, at no additional cost.

Each Future Generation Australia Option provides holders with the right, but not the obligation, to purchase one additional Future Generation Australia share for $1.48 per Option, without paying brokerage fees. Shares issued on Options exercised on or before 17 November 2021 and held at the dividend record date of 22 November 2021 will receive the fully franked interim dividend of 3.0 cents per share, which represents an annualised fully franked dividend yield of 4.1% and a grossed-up dividend yield of 5.8%[^] on the exercise price of $1.48 per Option. The Options can be exercised anytime, up until 28 April 2023.

The Options will trade on the ASX under the code FGXO from Tuesday 5 October 2021. All investors who purchase Future Generation Australia shares on the ASX up until 29 September 2021 will be entitled to receive the Bonus Options, at no additional cost.

The record date to determine entitlements under the Bonus Option Issue is Friday 1 October 2021.

Increasing fully franked dividends since inception (cents per share)

Profits reserve (as at 31 August 2021) 33.5cps

Increase on FY2020 fully franked interim dividend

15.4%

2021 fully franked annualised interim dividend

6.0cps

Dividend coverage[#]

5.6 years

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----- Start of picture text ----- 6.05.04.03.02.0 4.0 4.1 4.4 4.6 5.0 5.2 6.01.00.02015 2016 2017 2018 2019 2020 2021**Annualised interim dividend. Fully franked dividends----- End of picture text -----

^Grossed-up dividend yield includes the benefits of franking credits and is based on a tax rate of 30.0%.

• #Dividend coverage is based on the profits reserve of 33.5 cents per share at 31 August 2021, before the fully franked interim dividend of 3.0 cents per share and before the exercise of any Options issued by the Company.

• futuregeninvest.com.au

ASX announcement & media release

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Future Generation Australia's share registry, Boardroom Pty Limited, will email Option Exercise Forms on Tuesday 5 October 2021, to eligible shareholders who have elected to receive communication via email to their email addresses on the share register, this email will be sent from companies@boardroomlimited.com.au . Printed copies will be mailed only to those shareholders who elected to receive communication via mail.

The primary purpose of the Bonus Option Issue is to equitably and efficiently grow the Company’s assets, increase its relevance in the market, improve the prospect of broker and research coverage, and gain additional interest from financial planners. As the size of the Company’s assets increase, so does the Company’s social investment and impact. The Company continues to monitor outcomes and work closely with our charity partners to deliver on its social impact objectives.

Portfolio performance

Net tangible 12-month record 12-month total Gross assets assets before tax investment shareholder return (as at 31 August 2021) (as at 31 August 2021) portfolio to 30 June 2021 performance[ ] to 30 June 2021 $1.54 +33.6% +51.0% $625.5m**

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

Timetable

Shares trade ex-bonus Option entitlement Thursday 30 September 2021 Options commence trading on a deferred settlement basis Thursday 30 September 2021 Record date to determine entitlements under the Issue Friday 1 October 2021 Intended date for issue and entry of Options on the register Monday 4 October 2021 Despatch of Option Exercise Form Tuesday 5 October 2021 Trading in Options commences on ASX Tuesday 5 October 2021 Options expire Friday 28 April 2023

Dividend dates

Ex-dividend date 19 November 2021 Record date 22 November 2021 Last election date for DRP 24 November 2021 Payment date 26 November 2021

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Future Generation Australia’s Bonus Issue of Options to trade under the code FGXO

• futuregeninvest.com.au

A S X A N N O U N C E M E N T & M E D I A R E L E A S E

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Investment portfolio performance

					Since
					inception
	6	1	3 yrs	5 yrs	% pa
Performance at 31 August 2021	mths	yr	% pa	% pa	(Sept-14)	Volatility
Future Generation Australia	16.7%	30.4%	12.3%	12.0%	11.6%	11.4%
S&P/ASX All Ordinaries Accumulation Index	14.7%	29.0%	10.6%	11.3%	9.1%	14.3%
Outperformance	+2.0%	+1.4%	+1.7%	+0.7%	+2.5%

Investment portfolio performance is before expenses, fees and taxes to compare to the relevant index which is also before expenses, fees and taxes. Volatility is measured by standard deviation and is used as a measure of risk.

All major platforms provide access to Future Generation Australia, including AMP North, BT Panorama, Colonial First State Wrap, Netwealth, Macquarie Wrap and Hub 24. Future Generation Australia receives coverage from the following independent research providers:

Future Generation Australia 7 Years Listed

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This announcement has been authorised by the Board of Future Generation Investment Company Limited.

About Future Generation Australia

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

Shareholders with exposure to leading Australian fund managers without paying management or performance fees.

Charities primarily focused on young Australians at risk with a stream of annual investments.

Fund Managers with a unique opportunity to make a positive difference to Australia’s future generations.

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

Johnathan Trollip Chair T. (02) 9247 9202

Geoff Wilson AO Kate Thorley Founder and Director Acting Chief Executive T. (02) 9247 9202 Officer and Director T. (02) 9247 9202 M. 0405 115 644

James McNamara Head of Corporate Affairs T. (02) 9247 9202

ABN: 97 063 935 553