WAM MICROCAP LIMITED — Interim / Quarterly Report 2025

Feb 19, 2025

Strong investment portfolio outperformance, increased fully franked interim dividend

20 February 2025 ASX announcement and media release

Highlights

+31.7%

+14.4%

+8.9%

6.8%

Investment portfolio performance in the twelve months to 31 December 2024[*]

Investment portfolio Investment portfolio Annualised fully franked performance in the six months outperformance of the interim dividend yield[^] to 31 December 2024[*] S&P/ASX Small Ordinaries Accumulation Index in the six Grossed-up months to 31 December 2024 9.7% dividend yield[#]

92.5 cps

Fully franked dividends paid since inception in 2017, when including the value of franking credits

48.6 cps

Profits reserve at 31 January 2025, before the payment of the 5.3 cps fully franked interim dividend

$1.47 per share

Pre-tax NTA at 31 January 2025

Q&A Webinar

Thursday 6 March 2025 at 2:00pm (Sydney time)

Register to join the investment team for our WAM Capital, WAM Microcap, WAM Research and WAM Active FY2025 Interim Results Q&A Webinar.

The WAM Microcap Limited (ASX: WMI) investment portfolio outperformed the S&P/ASX Small Ordinaries Accumulation Index by 8.9%, increasing 14.4%[] in the six months to 31 December 2024. The investment portfolio performed strongly in the 2024 calendar year, increasing 31.7%[] and outperforming the S&P/ASX Small Ordinaries Accumulation Index by a record 23.3%.

The strong investment portfolio outperformance contributed to a 257.9% increase in the Company’s operating profit before tax of $45.1 million (HY2024: $12.6 million) and a 240.6% increase in operating profit after tax of $32.5 million (HY2024: $9.5 million) in the Company’s FY2025 interim results.

The WAM Microcap Board of Directors declared an increased fully franked interim dividend of 5.3 cents per share payable on 30 April 2025. The fully franked interim dividend represents an annualised fully franked interim dividend yield of 6.8%[^] , and a grossed-up dividend yield of 9.7%[#] , when including the value of franking credits.

Chairman Geoff Wilson AO said: “The investment team have again delivered investment portfolio performance well in excess of the S&P/ASX Small Ordinaries Accumulation Index with strong outperformance in each financial year since inception.”

Lead Portfolio Manager Oscar Oberg said: “The team and I were pleased to deliver strong investment portfolio outperformance for WAM Microcap shareholders and we thank them for their continued support. Looking ahead, the interest rate cuts forecast for the second half of 2025 will provide a positive environment for initial public offerings and capital raisings. We expect to see a number of opportunities for corporate activity that will benefit the investment portfolio.”

The Company has 4.6 years of dividend coverage, based on the profits reserve of 48.6 cents per share at 31 January 2025, before the payment of the fully franked interim dividend of 5.3 cents per share. Since inception in June 2017, WAM Microcap has paid 64.75 cents per share in fully franked dividends to shareholders and 92.5 cents per share when including the value of franking credits. This has resulted in an average fully franked dividend yield on the initial public offering price of 8.4%, and a grossed-up dividend yield of 12.0%[#] when including the value of franking credits.

Contributors to the investment portfolio outperformance included Zip Co (ASX: ZIP) and Tuas (ASX: TUA), with both companies rallying strongly during the six months to 31 December 2024. Since inception, WAM Microcap has delivered over $187.6 million in dividends and franking credits to shareholders.

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

^Based on the 19 February 2025 share price of $1.555 per share.

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

ABN 34 617 838 418 wilsonassetmanagement.com.au

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Fully franked dividends since inception

Cents per share 12.0

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10.0
8.0 5.25 5.25 5.3
5.0
6.0 4.0
3.0
4.0
2.25
2.0
5.0 5.25 5.25 5.3
2.0 4.0 4.0
3.0 3.0
2.0 2.0 2.25 2.25
0.0
2017/18 2018/19 2019/20 2020/21 2021/22 2022/23 2023/24 2024/25
Fully franked interim dividend Fully franked final dividend
Fully franked special dividend Annualised fully franked interim dividend
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Key dividend dates

Ex-dividend date	14 April 2025
Dividend record date (7:00pm Sydney time)	15 April 2025
Last election date for DRP	17 April 2025
Payment date	30 April 2025

The Dividend Reinvestment Plan (DRP) is in operation and the recommended fully franked interim dividend of 5.3 cents per share qualifies. Participating shareholders will be entitled to be allotted the number of shares (rounded to the nearest whole number) which the cash dividend would purchase at the relevant issue price. The relevant issue price will be calculated as the volume weighted average market price (VWAP) of shares sold on the ASX over the four trading days commencing on the ex-dividend date for the relevant dividend. The DRP will operate without a discount for the fully franked interim dividend.

Investment portfolio performance since inception

Investment portfolio performance	Fin	1	3 yrs	5 yrs	Since inception
at 31 December 2024	YTD	yr	%pa	%pa	%pa (Jun-17)
WAM Microcap Investment Portfolio	14.4%	31.7%	5.9%	14.3%	16.9%
S&P/ASX Small Ordinaries Accumulation Index	5.5%	8.4%	-1.6%	4.0%	6.4%
Outperformance	+8.9%	+23.3%	+7.5%	+10.3%	+10.5%

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

ABN 34 617 838 418 wilsonassetmanagement.com.au

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Top 20 holdings with portfolio weightings

at 31 December 2024

Code	Company name	%	Code	Company name	%
TUA	Tuas Limited	4.2%	PGC	Paragon Care Limited	2.1%
GTK	Gentrack Group Limited	3.0%	EML	EML Payments Limited	2.1%
UNI	Universal Store Holdings Limited	2.5%	ACL	Australian Clinical Labs Limited	2.1%
GDG	Generation Development Group Limited	2.5%	ZIP	Zip Co Limited	2.0%
SSM	Service Stream Limited	2.4%	EVO	Embark Early Education Limited	2.0%
ANG	Austin Engineering Limited	2.3%	n/a	Xpansiv Limited	2.0%
QOR	Qoria Limited	2.2%	PBH	PointsBet Holdings Limited	2.0%
DSE	Dropsuite Limited	2.2%	IDX	Integral Diagnostics Limited	1.8%
AIM	AI-Media Technologies Limited	2.1%	REG	Regis Healthcare Limited	1.8%
SNL	Supply Network Limited	2.1%	ADH	Adairs Limited	1.6%

Diversified investment portfolio by sector at 31 December 2024

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0.3%
0.5%
1.3%
1.6%
6.3%
21.6%
3.6%
7.0%
9.7%
18.4%
12.7%
17.0%
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Consumer discretionary: 21.6% Financials: 18.4% Industrials: 17.0% Information technology: 12.7% Health care: 9.7% Communication services: 7.0% Materials: 3.6% Utilities: 1.6% Real estate: 1.3% Energy: 0.5% Consumer staples: 0.3% Cash: 6.3%

ABN 34 617 838 418 wilsonassetmanagement.com.au

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About

WAM Microcap

WAM Microcap Limited (ASX: WMI) provides investors access to a portfolio of undervalued micro-cap growth companies with a market capitalisation of less than $300 million at the time of acquisition. WAM Microcap also provides exposure to relative value arbitrage and market mispricing opportunities. WAM Microcap’s investment objectives are to deliver a stream of fully franked dividends, provide capital growth over the medium-tolong term and preserve capital.

All major platforms provide access to WAM Microcap, including Asgard eWRAP Investment, BT Panorama, BT Wrap, Colonial First State FirstWrap, Hub24, IOOF Pursuit Select Investment Service, Macquarie Investment Manager / Consolidator, MLC Wrap IDPS and SMS, Netwealth Wrap and North Investment.

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Listed June 2017

WAM Microcap receives coverage from the following independent investment research providers:

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This announcement has been authorised by the Board of WAM Microcap Limited.

About Wilson Asset Management

Wilson Asset Management has a track record of making a difference for shareholders and the community for 27 years. As the investment manager for eight leading LICs: WAM Capital (ASX: WAM), WAM Leaders (ASX: WLE), WAM Global (ASX: WGB), WAM Microcap (ASX: WMI), WAM Alternative Assets (ASX: WMA), WAM Research (ASX: WAX), WAM Active (ASX: WAA) and WAM Strategic Value (ASX: WAR); and two unlisted funds: Wilson Asset Management Leaders Fund and Wilson Asset Management Founders Fund, Wilson Asset Management invests over $5.9 billion on behalf of more than 130,000 retail and wholesale investors.

Wilson Asset Management created and is the lead supporter of the first LICs to deliver both investment and social returns: Future Generation Australia (ASX: FGX) and Future Generation Global (ASX: FGG), as well as Future Generation Women. Wilson Asset Management advocates and acts on behalf of retail investors, is a member of the global philanthropic Pledge 1% movement, is a significant funder of many Australian charities and provides all team members with $10,000 each year to donate to charities of their choice. All philanthropic investments are made by Wilson Asset Management and not the LIC.

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>$5.9 billion

in funds under management

>200 years

combined investment experience

27 years

making a difference for shareholders

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investment products

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

Geoff Wilson AO Kate Thorley Jesse Hamilton Chairman & Chief Executive Officer Chief Financial Officer Chief Investment Officer (02) 9247 6755 (02) 9247 6755 (02) 9247 6755 0401 944 807

Camilla Cox Corporate Affairs Manager (02) 9247 6755 0407 407 062

ABN 34 617 838 418 wilsonassetmanagement.com.au

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