WAM CAPITAL LIMITED — Investor Presentation 2017

Mar 7, 2017

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Investor conference call 8 March 2017

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Disclaimer

This presentation has been prepared by MAM Pty Ltd and Wilson Asset Management (International) Pty Ltd (Wilson Asset Management) for use in conjunction with a verbal presentation and should be read in that context. This presentation Information for the graphs, charts and quoted indices contained in this presentation has been sourced from WAM Capital Ltd, WAM Leaders Ltd, WAM Research Ltd and WAM Active Ltd unless otherwise stated. This presentation is proprietary to Wilson Asset Management. It may not be reproduced, disseminated, quoted or referred to, in whole or in part, without the express consent of Wilson Asset Management. The information in this presentation is only intended for Australian residents. The purpose of this presentation is to provide information only and the contents of the presentation do not purport to provide investment or financial advice. We strongly suggest that investors consult a financial advisor prior to making any investment decision. The presentation does not take into account the investment objectives, financial situation or particular needs of any person and should not be used as the basis for making investment, financial or other decisions. The information is selective and may not be complete or accurate for your particular purposes and should not be construed as a recommendation to invest in any particular investment or security, or listed investment company offered by Wilson Asset Management. The information provided in this presentation is given in good faith and is believed to be accurate at the time of compilation. Neither Wilson Asset Management, WAM Capital Ltd, WAM Leaders Ltd, WAM Research Ltd, WAM Active Ltd nor their respective directors or employees (Wilson Asset Management parties) make any representation or warranty as to the accuracy, reliability, timeliness or completeness of the information. To the extent permissible by law, Wilson Asset Management parties disclaim all liability (whether arising in contract, tort, negligence or otherwise) for any error, omission, loss or damage (whether direct, indirect, consequential or otherwise). Performance figures quoted in the report are past performance. Past performance is not an indicator of future performance. None of the Wilson Asset Management parties guarantee or make any representation as to the performance of the listed investment companies, the maintenance or repayment of capital, the price at which shares may trade or any particular rate of return. This presentation includes “forward looking statements” within the meaning of securities laws of applicable jurisdictions. Forward looking statements can generally be identified by the use of the words “anticipate”, “believe”, “expect”, “project”, “forecast”, “estimate”, “likely”, “intend”, “should”, “could”, “may”, “target”, “plan” “guidance” and other similar expressions. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of any Wilson Asset Management party, that may cause actual results to differ materially from those expressed or implied in such statement. Actual results, performance or achievements may vary materially from any projections and forward looking statements and the assumptions on which those statements are based. Readers are cautioned not to place undue reliance on forward looking statements and Wilson Asset Management assumes no obligation to update such information. This presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase, any securities and neither this presentation nor anything contained in it forms the basis of any contract or commitment. Without limiting this, this presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States.

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Agenda

1. About Wilson Asset Management

2. Our listed investment companies

3. 4 . Stocks we like

4. Questions

5. Interim reporting season and market outlook

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Our team

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Geoff Wilson Chairman

• & Portfolio Manager

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Martin Hickson Head of Trading

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Kate Thorley Chief Executive Officer

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Tobias Yao Senior Equity Analyst

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Chris Stott Chief Investment Officer & Portfolio Manager

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John Ayoub Senior Equity Analyst

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Matthew Haupt Portfolio Manager

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Oscar Oberg Senior Equity Analyst

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Gross assets

$1,201.8m

Share price[* ] $2.53

Pre-tax net tangible assets Fully franked interim dividend $2.00 7.5 cents

Fully franked interim dividend

Annualised dividend yield[* ] Performance (p.a. since August 1999)

5.9%

18.0%

As at 31 January 2017 *As at 7 March 2017

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Gross assets Share price[* ] $410.6m $1.135

Pre-tax net tangible assets Maiden fully franked interim dividend 1.0 cent $1.14

As at 31 January 2017 *As at 7 March 2017

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Gross assets

$235.6m

Share price[* ] $1.64

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Pre-tax net tangible assets Fully franked interim dividend $1.28 4.5 cents

Annualised dividend yield[* ] Performance (p.a. since July 2010)

5.5% 19.8% As at 31 January 2017 *As at 7 March 2017

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Gross assets Share price[* ] $38.9m $1.13 Pre-tax net tangible assets Fully franked interim dividend $1.07 2.75 cents

Annualised dividend yield[ ] Performance (p.a. since January 2008) 4.9% 12.9% As at 31 January 2017 As at 7 March 2017

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FY2017 fully franked interim dividends – key dates

WAM Capital – 7.5 cents per share

Ex date 13 April 2017 Record date 18 April 2017 Last election date for the DRP 20 April 2017 Payment date 28 April 2017

WAM Leaders– 1.0 cent per share

Ex date 13 April 2017 Record date 18 April 2017 Last election date for the DRP 20 April 2017 Payment date 28 April 2017

WAM Research– 4.5 cents per share

Ex date 6 April 207 Record date 7 April 2017 Last election date for the DRP 11 April 2017 Payment date 21 April 2017

WAM Active– 2.75 cents per share

Ex date 16 May 2017 Record date 17 May 2017 Last election date for the DRP 19 May 2017 Payment date 26 May 2017

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Options

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ASX: WLEO Options exercise price: $1.10 Last date to exercise options to be eligible for interim dividend: 10 April 2017 Option expiry date: 17 November 2017

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ASX: WAAO Options exercise price: $1.14 Last date to exercise options to be eligible for interim dividend: 11 May 2017 Option expiry date: 17 September 2018

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Interim reporting season

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Earnings growth returning Economic conditions improving Housing market remains very strong High P/E companies disappointed

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Equity market outlook

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Overall market outlook positive Australian economy showing signs of growth Higher commodity prices to drive increase in government revenue Volatility expected due to geopolitical risks over the next year

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FY17 half year update

– 7.3%[* ] portfolio return since inception in May 2016

– Weightings increased into large caps

– Higher bond yields supportive of diversified financial and insurance companies

– 15% current cash weighting

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*As at 28 February 2017

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What we like: Research-driven

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Challenger is an investment management firm specialising in products that generate a retirement income stream

Challenger Limited ASX: CGF Market cap: $6.7 billion FY17PE: 17x EPS growth: 10%

Why we like it

– Continued strong demand of annuity products in the

Australian market

– Partnerships in Australia and Japan will drive growth and earnings for next few years

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What we like: Research-driven

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Treasury Wine Estates is an Australian-based global winemaking and distribution business.

Treasury Wine Estates Ltd ASX: TWE Market cap: $8.8 billion

FY17 PE: 30x EPS growth: 30%

Why we like it

– Exposure to “masstige” wine demand in China via Penfolds and Chateau St Jean

– EBITS margin expansion through better supply chain

management in US and China

– Luxury wine inventory underpins multi-year earnings upgrades

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What we like: Research-driven

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AUB Group is an equity-based risk management, advice and solutions provider in Australasia.

AUB Group Limited ASX: AUB Market Cap: $746 million FY18 PE: 17.5x Consensus FY18 EPS growth: ~8%

Why we like it

– Exposure to increasing commercial lines premiums

– Potential consensus earnings upgrades – Planned acquisitions

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May 2017 shareholder presentations

Melbourne	Sydney	Adelaide
Monday 15 May	Tuesday 16 May	Wednesday 17 May
Melbourne Convention Centre	The Wesley Centre	The Playford
1 Convention Centre Place	220 Pitt Street	120 North Terrace
South Wharf VIC 3006	Sydney NSW 2000	Adelaide SA 5000
Presentation:	Presentation:	Presentation:
10.00am – 12.00pm	10.00am – 12.00pm	10.00am – 12.00pm
Perth	Brisbane	Canberra
Thursday 18 May	Friday 19 May	Wednesday 24 May
Novotel Perth Langley	Brisbane Exhibition & Convention Centre	The Mercure
221 Adelaide Terrace	Cnr Merivale & Glenelg St	Cnr Ainslie & Limestone Avenues
Perth WA 6000	Southbank QLD 4101	Braddon ACT 2612
Presentation:	Presentation:	Presentation:
10.00am – 12.00pm	10.00am – 12.00pm	10.00am – 12.00pm

Future Generation presentations will follow Wilson Asset Management presentations in each city

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Get in touch info@wilsonassetmanagement.com.au Telephone. +61 2 9247 6755 Level 11, 139 Macquarie Street Sydney NSW 2000 GPO Box 4658, Sydney NSW 2001

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About us

Independent boutique fund manager

• We manage four LICs and just under $2 billion in shareholder capital for 45,000 retail shareholders

• Seven investment professionals with combined investment experience of almost 100 years

• Proven investment approach

• Committed to philanthropic initiatives, including creating and supporting the Future Generation LICs

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Winner of the Listed Investment Companies category at the Professional Planner | Zenith Fund Awards 2014, 2015 and 2016

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How we invest

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