WAM Microcap (WMI) investor relations material

Executive summary

• Interim results for four managed funds were presented, with strong performance in WAM Active, especially after a recent capital raise and rights issue.

• Operating profit before tax for the half year ended 31 December 2025 was $43.2 million, down from $45.1 million in the prior year period.

• Operating profit after tax was $31.0 million, compared to $32.5 million for the same period last year.

• The period since October has been described as the toughest in over a decade, with rapid market shifts, especially impacting small caps.

• Investment portfolio increased 11.4% over the six months, underperforming the S&P/ASX Small Ordinaries Accumulation Index, which rose 17.4%.

Financial highlights

• WAM Capital's share price premium to NTA reached 30% by February, despite declining NTAs.

• Net realised and unrealised gains on financial investments and foreign currency totaled $42.7 million (2024: $49.9 million).

• WAM Active maintains a profit reserve covering 2.6 years of dividends after the capital raise.

• Cash and cash equivalents at period end were $34.2 million (June 2025: $33.9 million).

• Net assets increased to $412.7 million (June 2025: $394.9 million).

Outlook and guidance

• Management expects the current premium to NTA to persist until the next dividend, after which it may shrink.

• The Board remains committed to paying a stream of fully franked dividends, subject to profits reserves and franking credits.

• No change in principal investment activity is expected in the future.

• Long-term view and adherence to investment process are emphasized as key to navigating volatility.

• Opportunities are seen in depressed valuations and strong company fundamentals.