THORNEY OPPORTUNITIES LTD — Net Asset Value 2024

Aug 11, 2024

==> picture [540 x 92] intentionally omitted <==

----- Start of picture text -----

INVESTMENT UPDATE AND NTA REPORT
JULY 2024
----- End of picture text -----

PORTFOLIO SNAPSHOT: NET TANGIBLE ASSET BACKING PER SHARE (NTA)

NTA Current Month	Before Tax1	After Tax1
31 July 2024	97.2 cents	88.4 cents
NTA Previous Month	Before Tax1	After Tax1
30 June 2024	93.3 cents	87.0 cents

¹ Figures are unaudited and approximate.

KEY ASX INFORMATION (AS AT 31 JULY 2024)

ASX Code TOP Structure Listed Investment Company Inception date January 2014 Market $126.7 million Capitalisation Share Price 69.5 cents Shares on Issue 182,271,841 Dividends Half yearly Management Fee 0.75% half yearly Performance Fee 20% of net NTA increase over pcp, high watermark Manager Thorney Investment Group

INVESTMENT PERFORMANCE*

As at 31 July 2024 1 Month 1 Year 3 Years Since Inception	As at 31 July 2024 1 Month 1 Year 3 Years Since Inception	As at 31 July 2024 1 Month 1 Year 3 Years Since Inception	As at 31 July 2024 1 Month 1 Year 3 Years Since Inception	As at 31 July 2024 1 Month 1 Year 3 Years Since Inception
TOP investment portfolio	3.53%	28.85%	14.21%	13.23%
S&P Small Ordinaries Accum. Index	3.49%	9.29%	-0.63%	9.14%
Performance versus Index	0.04%	19.56%	14.84%	4.09%

*Investment performance is calculated on a pre-tax NTA plus dividends basis and after accrued management fees.

TOP SECURITIES

Rank	Company	% of Portfolio
1	20 Cashews	14.4
2	Austin Engineering	13.5
3	Southern Cross Electrical Engineering	11.8
4	Decmil Group	7.8
5	Solvar	5.0
6	Service Stream	4.9
7	AMA Group	4.1
8	Retail Food Group	3.1
9	COG Financial Services	2.7
10	Early Pay	2.3

TOP FULLY FRANKED DIVIDEND HISTORY

==> picture [511 x 150] intentionally omitted <==

----- Start of picture text -----

1.40 1.45
1.35
1.27
1.14
0.90
0.60 0.65
1.00 1.05 1.05
0.55 0.60 0.60 0.66 0.73 0.80
2016 2017 2018 2019 2020 2021 2022 2023 2024
Interim dividend (cps) Final dividend (cps)
----- End of picture text -----

THORNEY OPPORTUNITIES LTD | Level 45, 55 Collins St. Melbourne VIC 3000 Australia | ABN: 41 080 167 264

PORTFOLIO SECTORS

ALLOCATION OF INVESTMENTS

==> picture [440 x 140] intentionally omitted <==

----- Start of picture text -----

Cash 26%
14.8%
Commercial and
5%
Professional Services
59.6%
Consumer Discretionary 4%
25.6% Media 14%
Financials 11%
ASX-listed securities
Unlisted securities Infrastructure, Energy and 40%
Resources
Cash
----- End of picture text -----

CASH BALANCE AND AVAILABLE FACILITIES

• Cash held short-term with the major banks: $48.2 million, with prime broker and margin lending facilities undrawn.

OVERVIEW

• The TOP NTA (after tax) as at 31 July 2024 was 1.6% higher compared to 30 June 2024. During the month, realised and unrealised contributions from listed portfolio positions MRM, SXE, ANG, SSM and AMA drove the increase in NTA.

• During the month, the acquisition of MRM by Cyan completed and proceeds distributed to shareholders whilst AMA was successful with a significant recapitalisation which saw TOP (and associates) increase its interest to 12.6%.

• TOP’s cash position is strong and is well-placed to take advantage of market opportunities. This follows the distribution of the proceeds following Cyan completing its acquisition of MRM.

• TOP’s cash position will likely increase further following completion of the sale of DCG to Macmahon Holdings Ltd (ASX:MAH). On 31 July, DCG shareholders voted overwhelmingly in favour of the company being sold to MAH. Subject to the forthcoming, transaction-related court hearings, it is anticipated that the proceeds of the transaction will be distributed around the middle of August.

CHAIRMAN’S COMMENTS

“TOP finished July with a very strong cash position following receipt of the proceeds from the sale completion of MRM to Cyan. Cash for investment deployment will increase further in August following completion of the sale of DCG to MAH which was approved by DCG shareholders on 31 July. In the absence of any material investments, at the end of August, TOP will have a cash balance in excess of $50m.

The transactions involving MRM and DCG which each required various levels of constructive activism are two examples of TOP’s successful, disciplined and patient investment approach.

I believe that the recent market volatility driven, in part, by the challenges faced by central banks with respect to monetary policy will provide attractive investment opportunities for TOP shareholders.

Despite some narrowing of the TOP share price to NTA gap over the past month, it remains my view that the persistent share price discount is unjustified. This is particularly the case given the current cash balance. I believe that the inherent value in the portfolio remains and makes for a compelling buying opportunity hence I have continued to buy shares under TOP’s onmarket buyback.

TOP is anticipating release of its Appendix 4E on or around 29 August 2024.

INVESTMENT PHILOSOPHY

CONTACT

TOP undertakes thorough due diligence to identify fundamentally Craig Smith – Company Secretary mispriced or undervalued companies and combine that with E: craig.smith@thorney.com.au constructive advocacy with boards and management to implement T: + 61 3 9921 7116 change when required.

INVESTMENT OBJECTIVES

• Producing absolute returns for shareholders over the medium-to long-term

• Delivering a strong fully franked dividend stream to shareholders

ABOUT THORNEY OPPORTUNITIES LTD

Thorney Opportunities Ltd (TOP) is an ASX-listed investment company that invests in listed and unlisted equities and financial assets, in a variety of sectors, including media, automotive, energy, engineering and mining services and financial services. Our primary focus is on the careful selection of investments which enables us to be a constructive catalyst towards unlocking the value in the companies identified. TOP is managed by the privately owned Thorney Investment Group pursuant to a longterm investment management agreement.

You can invest in TOP by purchasing shares on the Australian Securities Exchange (ASX).

For more information visit: https://thorney.com.au/thorney-opportunities/

This monthly report has been prepared by Thorney Management Services Pty Ltd (TMS) ABN 88 164 880 148, AFSL 444369. TMS is the investment manager of Thorney Opportunities Ltd (TOP or Company) ACN 080 167 264. It is general information only and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances. This information does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of the Company’s securities. To the extent permitted by law, no liability is accepted for any loss or damage as a result of any reliance on this information. References to securities in this publication are for illustrative purposes only and are not recommendations and the securities may or may not be currently held by the Company. Past performance is not indicative of future performance. This information is believed to be accurate at the time of compilation and is provided in good faith. No company in the Thorney Investment Group (Thorney Investment Group Australia Limited ABN 37 117 488 892 and its subsidiaries including TMS) nor the Company guarantees the performance of the Company or the return of an investor’s capital.

Investment Update and NTA Report | July 2024 2