WAM CAPITAL LIMITED — Interim / Quarterly Report 2018

May 10, 2018

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Investment update As at 30 April 2018

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wilsonassetmanagement.com.au ABN 34 086 587 395

Snapshot

Pre-tax net tangible assets $1.97

Fully franked dividend yield 6.5%

Gross assets $1,321.3m

Performance (p.a. since August 1999) 17.5%

WAM Capital Limited

ASX code WAM Date of listing Aug 1999 Gross assets $1,321.3m Market cap $1,590.7m Share price $2.38 NTA before tax $1.97 Shares on issue 668,363,006 Annualised fully franked 15.5c interim dividend (FY2018) Fully franked dividend yield 6.5%

Investment objectives

• Deliver shareholders a rising stream of fully franked dividends

• Provide capital growth

• Preserve capital

Wilson Asset Management investment & management team

Geoff Wilson AO Chairman &

Portfolio Manager Kate Thorley Chief Executive Officer Chris Stott Chief Investment Officer & Portfolio Manager Matthew Haupt Portfolio Manager Catriona Burns Portfolio Manager Martin Hickson Portfolio Manager Oscar Oberg Portfolio Manager Tobias Yao Senior Equity Analyst John Ayoub Senior Equity Analyst Cooper Rogers Assistant Dealer

Company overview

WAM Capital Limited (ASX: WAM) is a listed investment company managed by Wilson Asset Management. Listed in August 1999, WAM Capital provides investors with exposure to an actively managed diversified portfolio of undervalued growth companies, which are generally small-to-medium sized industrial companies listed on the Australian Securities Exchange. WAM Capital also provides exposure to relative value arbitrages and market mispricing opportunities.

Shareholder Presentations

Hobart & Launceston	11 May
Canberra Sydney	14 May 15 May
Brisbane	16 May
Toowoomba	17 May
Perth	21 May
Adelaide	22 May
Melbourne	24 May
RESERVE YOUR PLACE NOW

WAM Global initial public offering

WAM Global launched its initial public offering (IPO) on 2 May and exceeded the minimum offer proceeds on the same day. The general and priority offers are open and expected to close on 8 June. WAM Capital shareholders are eligible to take part in the $165 million priority allocation to the Wilson Asset Management Family.

Visit www.wilsonassetmanagement.com.au/global to participate in the IPO.

May 2018 Shareholder Presentations

This month, we will be travelling across the country to meet with investors about our LICs, including WAM Global. We will also discuss investment themes, trends and opportunities we are seeing across Australian and global equity markets. Lunch will be served following the presentations, so we encourage you to stay and talk to the team. Register now!

Market overview

The S&P/ASX All Ordinaries Accumulation Index gained 3.5% in April led by an increase in commodity prices following robust Chinese economic growth data, and an abatement in geopolitical risks, particularly surrounding ‘trade wars’. The International Monetary Fund maintained its positive outlook on global economic growth, forecast to be 3.9% in 2018, the best annual growth rate since 2011.

Net tangible asset (NTA) figures

The following NTA figures are after the 7.75 cents per share fully franked interim dividend paid on 27 April 2018. Since inception, WAM Capital has paid 215.3 cents per share in fully franked dividends to shareholders.

NTA before tax	196.61c**
NTA after tax and before tax on unrealised gains	195.95c**
NTA after tax	193.33c**
*The NTA before tax figure is after the payment of $1.02m (0.2 cents per share) in tax during the month.
**This includes 0.33 cents per share of tax assets resulting from the acquisition of an unlisted investment company in
April 2017.

Performance

	Performance
									Since
									inception
	Performance at	1	6	Fin	1	3 yrs	5 yrs	10 yrs	%pa
	30 April 2018	mth	mths	YTD	yr	%pa	%pa	%pa	(Aug-99)
	WAM Investment Portfolio*	0.9%	4.8%	11.6%	13.3%	14.7%	14.9%	14.0%	17.5%
	S&P/ASX All Ordinaries	3.5%	3.6%	8.9%	6.4%	6.2%	7.8%	5.2%	8.3%
	Accumulation Index
	Outperformance	-2.6%	**+1.2% **	+2.7%	**+6.9% **	**+8.5% **	+7.1%	+8.8%	+9.2%

*Investment performance and Index returns are before expenses, fees and taxes.

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Page 2 of 4

Investment update As at 30 April 2018

wilsonassetmanagement.com.au T +61 2 9247 6755

Growth of $10,000 investment since inception

WAM Capital versus the Index

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$160,000
$142,458
$140,000
$120,000
$100,000
$80,000
$60,000
$45,757
$40,000
$20,000
$0
1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017
WAM Capital (ASX: WAM) S&P/ ASX All Ordinaries Accumulation Index
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Notes:

1. The above graph reflects the period from inception in August 1999 to 30 April 2018.

2. WAM Capital’s performance is calculated using the closing daily share price in Australian dollars and assumes all dividends are reinvested.

3. The S&P/ASX All 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 Capital portfolio.

Diversified portfolio

March 2018 April 2018 Investment type $m % $m %	March 2018 April 2018 Investment type $m % $m %	March 2018 April 2018 Investment type $m % $m %
Listed equities 915.4 68.8 886.7 67.1
Short portfolio (9.5) (0.7) (3.3) (0.2)
Fixed interest & cash 425.3 31.9 437.9 33.1
Gross assets 1,331.2m 100.0 1,321.3m 100.0*
Total shares on issue 655,257,315 668,363,006**

*This figure is after the 7.75 cents per share fully franked interim dividend paid on 27 April 2018 and $1.02m in tax paid during the month.

**During the month, 3,412,813 shares were issued under the Dividend Reinvestment Plan (DRP) for the interim dividend. An additional 9,692,878 shares were issued via a DRP Shortfall Placement, raising $22.8m.

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Page 3 of 4

Investment update As at 30 April 2018

wilsonassetmanagement.com.au T +61 2 9247 6755

Top 20 holdings

Top 20 holdings
Code Company ALL Aristocrat Leisure Limited AOG Aveo Group ASB Austal Limited ASL Ausdrill Limited BVS Bravura Solutions Limited CSL CSL Limited CTD Corporate Travel Management Limited EHL Emeco Holdings Limited IMD Imdex Limited MTR Mantra Group Limited	Code Company
	NEC Nine Entertainment Co Holdings Limited
	PIA Pengana International Equities Limited
	PSI PSC Insurance Group Limited
	REA REA Group Limited
	SCO Scottish Pacific Group Limited
	SDA SpeedCast International Limited
	SVW Seven Group Holdings Limited
	TGG Templeton Global Growth Fund Limited
	TGP 360 Capital Group Limited
	WDE Wealth Defender Equities Limited

The top 20 holdings are presented in alphabetical order.

Fully franked dividends

On 27 April 2018, the Company paid a fully franked interim dividend of 7.75 cents per share. 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. The Company’s ability to generate franking credits is dependent upon the receipt of franked dividends from investments and the payment of tax.

Fully franked dividends since inception

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Cents per share
18.0
16.0
14.0
12.0
10.0
8.0
6.0
4.0
2.0
0.0
Ordinary fully franked dividend Special fully franked dividend Equal access share buy-back
Annualised interim dividend
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Page 4 of 4

Investment update As at 30 April 2018

wilsonassetmanagement.com.au T +61 2 9247 6755