Investor Presentation Perth, November 2013

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Agenda

• WAM Capital Limited

• WAM Research Limited

• WAM Active Limited

• About Wilson Asset Management

• Investment Portfolio

• Market Overview and Outlook

• Investor Communications

• Wilson Asset Management in the Community

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WAM Capital Limited

(ASX: WAM)

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Recent Highlights

+9.1% Growth in full year

dividend to 12.0 cents

per share fully franked

6.4% Fully franked

dividend yield*

+31% Investment Portfolio

performance**

169% Increase in

Shareholders’ Equity**

50% Increase in Total

Shareholder Return**

137% Increase in shareholders

to over 12,000**

*As at 31 October 2013

**12 months to 31 October 2013

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Dividend Growth

• FY2013 fully franked dividend of 12.0 cents per share, up 9.1%

• Annualised FY2013 fully franked dividend yield 6.4%

• Capacity to pay future dividends

• Dividend Reinvestment Plan (DRP) operated at 2.5% discount

• Board committed to paying increasing stream of fully franked dividends

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Dividend Growth

WAM Capital dividends since inception

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

16.0

18.0

Ordinary fully franked dividend Special fully franked dividend Equal access share buy-back

Cents per share

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Outperformance

Performance at

31 October 2013 6 Mths

Fin

YTD 1 Yr

3 Yrs

% pa

5 Yrs

% pa

10 Yrs

% pa

Since

Inception

% pa

WAM Investment

Portfolio* 12.7% 16.4% 31.2% 16.8% 20.7% 14.3% 18.7%

S&P/ASX All

Ordinaries

Accumulation Index

7.2% 15.1% 24.7% 9.3% 11.1% 9.7% 8.7%

Outperformance +5.5% +1.3% +6.5% +7.5% +9.6% +4.6% +10.0%

* Investment performance is before expenses, fees and taxes

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Outperformance

-

200

400

600

800

1,000

1,200

WAM Investment Portfolio before all expenses, fees & taxes S&P/ASX All Ordinaries Accumulation Index

WAM Portfolio up

80.3% above pre-

GFC peak

Index up 2.5% from

pre-GFC peak

Index re-based

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Capital Management

• Raised $24.7m through DRP Shortfall Placement

• Oversubscribed by 67%

• Placement NTA accretive

• Capitalising on strong market demand

• Shareholder benefits of increased capital base • reduced fixed administration costs (as % of assets)

• increased liquidity

• increases WAM Capital’s relevance in market

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WAM Research

Limited

(ASX: WAX)

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Recent Highlights

+7.7% Growth in full year

dividend to 7.0 cents per

share fully franked

6.0% Fully franked

dividend yield*

+38% Investment Portfolio

performance**

18% Increase in

Shareholders’ Equity**

1 for 2 Bonus Option Issue

announced 28 October

2013

51% Increase in Total

Shareholder Returns**

*As at 31 October 2013

**12 months to 31 October 2013

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Dividend Growth

• FY2013 fully franked dividend of 7.0 cents per share, up 7.7%

• Annualised FY2013 fully franked dividend yield 6.0%

• Capacity to pay future dividends

• Dividend Reinvestment Plan (DRP) operated at 2.5% discount

• Board committed to paying increasing stream of fully franked dividends

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Dividend Growth

WAM Research dividends since inception

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

Special fully franked dividend Ordinary fully franked dividend

Cents per share

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Outperformance

Performance at

31 October 2013 6 Mths

Fin

YTD 1 Yr

3 Yrs

% pa

Since

change in

investment

strategy (July 2010)

% pa

WAX Investment

Portfolio* 15.0% 17.8% 37.8% 20.1% 21.0%

S&P/ASX All Ordinaries

Accumulation Index 7.2% 15.1% 24.7% 9.3% 11.8%

Outperformance +7.8% +2.7% +13.1% +10.8% +9.2%

* Investment performance is before expenses, fees and taxes

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Outperformance

-

100

200

300

400

500

600

WAX Investment Portfolio before all expenses, fees & taxes S&P/ASX All Ordinaries Accumulation Index

Index re-based

*Investment performance since revised investment process July 2010

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Capital Management

• 1 for 2 Bonus Option Issue announced 28 October 2013

• Exercise price: $1.20 Exercise by: 17 June 2015

• Shares will trade ex option entitlement on 28 November 2013

• Recently raised $16.5m through DRP Shortfall Placement

• Placement NTA accretive

• Capitalising on strong market demand

• Shareholder benefits of increased capital base • reduced fixed administration costs (as % of assets)

• increased liquidity

• increases WAM Research’s relevance in market

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WAM Active Limited

(ASX: WAA)

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Recent Highlights

*As at 31 October 2013

**12 months to 31 October 2013

+5.6% Growth in full year

dividend to 9.5 cents per

share fully franked

7.7% Fully franked

dividend yield*

+25% Investment Portfolio

performance**

41% Increase in Total

Shareholder Return**

69% Increase in

Shareholders’ Equity**

62% Increase in shareholders

to over 1,000**

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Dividend Growth

• FY2013 fully franked dividend of 9.5 cents per share, up 5.6%

• Annualised FY2013 fully franked dividend yield 7.7%

• Capacity to pay future dividends

• Dividend Reinvestment Plan (DRP) operated at 2.5% discount

• Board committed to delivering a regular income stream via fully

franked dividends

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Dividend Growth

WAM Active dividends since inception

0.0

1.0

2.0

3.0

4.0

5.0

6.0

7.0

8.0

9.0

10.0

2008/09 2009/10 2010/11 2011/12 2012/13

Fully franked dividends

Cents per share

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Positive Performance

Performance at

31 October 2013 6 Mths

Fin

YTD 1 Yr

3 Yrs

% pa

5 Yrs

% pa

Since

Inception

% pa

WAA Investment

Portfolio* 10.9% 15.9% 25.3% 14.1% 18.6% 14.1%

S&P/ASX All Ordinaries

Accumulation Index 7.2% 15.1% 24.7% 9.3% 11.1% 1.5%

Outperformance +3.7% +0.8% +0.6% +4.8% +7.5% +12.6%

UBS Bank Bill Index 1.4% 0.9% 3.0% 4.1% 4.1% 4.6%

Outperformance +9.5% +15.0% +22.3% +10.0% +14.5% +9.5%

* Investment performance is before expenses, fees and taxes

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Positive Performance

-60

-40

-20

0

20

40

60

80

100

WAA Investment Portfolio before all expenses, fees & taxes S&P/ASX All Ordinaries Accumulation Index UBS Bank Bill Index

Index re-based

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Capital Management

• 88% of Options exercised to date - raising $16m

• Last day to exercise options: 12 December 2013

• Last day to trade options: 5 December 2013 (ASX: WAAO)

• Strategy to grow WAM Active gross assets to $100m (currently $38m)

• Shareholder benefits of increased capital base

• reduced fixed administration costs (as % of assets)

• increased liquidity

• increases WAM Active’s relevance in market

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About Wilson Asset

Management

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Experienced Team

Geoff Wilson B Sc GMQ FAICD FFinsia

Chairman /

Portfolio Manager

Kate Thorley B Com CPA Grad Dip ACG

Chief Executive Officer /

Company Secretary

Chris Stott B Bus Grad Dip App Fin

Chief Investment Officer /

Portfolio Manager

Martin Hickson B Bus B Comp

Senior Equity Analyst /

Dealer

Matthew Haupt CFA B Com Grad Dip App Fin

Equity Analyst

Mark Tobin BBS MEconSc ACCA

Equity Analyst

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Investment Approach

Research Driven Investment Strategy

Market Driven Investment Strategy

Identifying

undervalued growth

companies

Exploiting market

mis-pricing

opportunities

Research

& Market

Driven

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Gross assets* $622.2m $138.4m $37.7m

Share price* $1.88 $1.175 $1.24

Pre tax NTA* $1.83 $1.11 $1.12

Growth in dividends 9.1% 7.7% 5.6%

Fully Franked

Dividend Yield* 6.4% 6.0% 7.7%

Our LICs

*As at 31 October 2013

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Investment Portfolio

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Top 10 Research Driven Holdings*

ASX Code Company

SGH Slater & Gordon Limited

NEA Nearmap Limited

AHE Automotive Holdings Group Limited

NXT NEXTDC Limited

MTU M2 Telecommunications Group Limited

SFW SFG Australia Limited

RCR RCR Tomlinson Limited

CSV CSG Limited

GWA GWA Group Limited

SGN STW Communications Group Limited

*As at 31 October 2013

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Top 10 Market Driven Holdings*

ASX Code Company

CLO Clough Limited

GNC Graincorp Limited

FKP FKP Property Group

CYA Century Australia Investments Limited

HIL Hills Holdings Limited

WIC Westoz Investment Company Limited

IPE ING Private Equity Access Limited

ELI Emerging Leaders Investments Limited

BKW Brickworks Limited

TSE Transfield Services Limited

*As at 31 October 2013

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Top Contributors and Detractors*

Research Driven

Contributors Detractors

NEA Nearmap Ltd NXT NEXTDC Limited

IPP iProperty Group Limited UGL UGL Limited

RCR RCR Tomlinson Limited TEN Ten Network Holdings Limited

Market Driven

Contributors Detractors

HIL Hills Holdings Limited MMS McMillan Shakespeare

Limited

WCB Warrnambool Cheese &

Butter Factory Co

BSL BlueScope Steel Limited

FKP FKP Property Group TWR Tower Limited *FY2014

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0.20

0.30

0.40

0.50

0.60

0.70

Research Driven Investee Company

Overview • Provider of detailed geospatial map technology to public/private sectors

Background • Introduced pay wall in November 2012 (service previously free)

• Exploring further opportunities in existing markets and other verticals /

geographies

Catalyst • Cash flow figures released in January 2013 proved pay wall a success

Outlook • Continued strong cash flow has shown business gathering momentum

• Healthy cash position ($14m)

• We forecast EPS growth of 140%+ in FY15

Nearmap Limited (NEA)

Commenced buying at $0.105

$

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4.50

31-Dec-12 31-Jan-13 28-Feb-13 31-Mar-13 30-Apr-13 31-May-13 30-Jun-13 31-Jul-13 31-Aug-13 30-Sep-13 31-Oct-13

Research Driven Investee Company

Overview • Large consumer law firm with 70 Australian offices and 12 UK offices with

1200 staff

Background • Reforms implemented in April 2013 changing how claims management

companies allocate work to law firms

Catalyst • Reforms forced consolidation in the industry and we believed SGH would

be a likely beneficiary

Outlook • Positive outlook with P/E of 14x and forecast earnings growth of 28%

• Potential for more UK acquisitions (further investment catalyst)

Slater & Gordon Limited (SGH)

Commenced buying at $2.80

$

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Market Driven Investee Company

Overview • Australian grains handling and logistics business

Background • Currently subject to takeover offer by American Archer Daniels Midland

Company (ADM) and subject to Government approval

• Investment provides average annualised return of 8% and franking credits

Outlook • Low risk of takeover not proceeding

• If takeover approved, we expect shareholders to receive $13.055-$13.125

Graincorp Limited (GNC)

$

8.00

9.00

10.00

11.00

12.00

13.00

14.00

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1.70

1.80

1.90

2.00

Market Driven Investee Company

Overview • Retirement living operator and developer

Background • Previously trading at a 66% discount to NTA

Catalyst • Meeting with FKP management during August reporting season. New

CEO set out plan for reducing discount between share price and NTA

Outlook • We believe FKP should trade closer to its post-capital raising NTA of

$2.74 per share

FKP Property Group (FKP)

Commenced buying at $1.20

$

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Market Overview and

Outlook

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Current Market Themes

Employment

participation rate

falling

Strong housing

market

New government

providing

companies

certainty

Tech company

renaissance

Continued US

economic

recovery

Small caps

underperforming

due to weak

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Strong Housing Market F

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Market Outlook

P/E multiples

expanding -

earnings weak

Strong IPO activity M&A activity to

continue in 2014

Interest rates to

remain low by

historical

standards

Australian dollar

to weaken

QE tapering in

early 2014

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P/E multiples expanding

The S&P/ASX Small Industrials

Source: Macquarie Securities Group

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Investor

Communications

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Investor Communication

Weekly emails

including market

update

Half yearly

national investor

presentations

Half yearly

investor

newsletters

Half & full year

financial results

Industry

conferences

Website

wamfunds.com.au

Monthly NTA announcement & investment

update

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Wilson Asset

Management in the

Community

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Community Investment

All donations are made by Wilson Asset Management (the investment manager) and/or its staff, not the listed entities.

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Disclaimer

This presentation has been prepared for use in conjunction with a verbal presentation and should be read in that context. Information

for the graphs, charts and quoted indices contained in this presentation has been sourced from IRESS Market Technology, Veritas

Securities, WAM Capital Ltd, WAM Research Ltd and WAM Active Ltd unless otherwise stated. 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 does not purport to provide investment advice. We strongly suggest that investors consult a financial adviser 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 Fund offered by Wilson Asset Management. The information

provided in the 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 Research Ltd and WAM Active Ltd nor its directors or employees 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, WAM Capital Ltd, WAM Research Ltd and WAM Active Ltd and its director and employees 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. Neither Wilson Asset Management, WAM Capital Ltd, WAM Research Ltd and WAM Active Ltd nor its directors or

employees guarantee or make any representation as to the performance of the Funds, the maintenance or repayment of capital, the

price at which shares may trade or any particular rate of return.

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Investor Presentation Perth, November 2013

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