AMCIL (AMH) investor relations material

Executive summary

• Portfolio returned -10% for the year, significantly underperforming the market's +7.2% return including franking, with recent performance lagging benchmarks across 1, 3, 5, and 10-year periods.

• Active management style focused on quality companies, capital growth, and fully franked dividends, with a high-conviction, diversified portfolio of 30-41 stocks, primarily in Australia and New Zealand.

• Leadership changes include a new CEO and portfolio manager, both emphasizing a renewed focus on quality and long-term value.

• Equity ownership by directors and staff, low management costs, and no performance fees align interests with shareholders.

Financial highlights

• Profit for the year was $6.9m, up from $6.7m in 2025, but dividends received declined due to reduced holdings in Wesfarmers and banks; interest income increased.

• Fully franked dividends totaled 4.0¢ per share (2.5¢ final, 0.5¢ special), compared to 6.5¢ in 2025.

• Portfolio value fell from $410.7m to $339.3m year-over-year.

• Management expense ratio (MER) was 0.57%, slightly up due to lower portfolio value, but expenses were down 10% year-over-year.

• Net tangible asset value: $1.08 per share at June 30, 2026, with the share price at $0.90, reflecting a 16.3% discount.

Outlook and guidance

• Portfolio positioned for improved performance by concentrating on high-conviction stocks and using market dislocations to add quality names.

• Market viewed as moderately expensive, trading at 17x forward earnings and a 3.7% dividend yield, both above long-term averages.

• Focus remains on quality, valuation discipline, and taking advantage of volatility for long-term returns.

• More details on strategy and changes to be shared at the AGM in October.