WAM Strategic Value (WAR) investor relations material

Executive summary

• Focus remains on buying undervalued companies with identifiable catalysts, holding until value is realized, and actively managing the portfolio, with a medium-term view.

• Portfolio performance up over 14% for the last 12 months and 9.8% over the last six months, outperforming the S&P/ASX All Ordinaries Accumulation Index by 5.4%.

• Achieved operating profit before tax of $16.0M and after tax of $12.8M for the half year ended 31 December 2025, reflecting strong investment portfolio performance.

• Dividend increased again for the last six months, with a plan to continue growing fully franked dividends over time.

• Defensive portfolio characteristics highlighted, with strong downside protection and significant upside capture.

Financial highlights

• Portfolio up over 14% year-over-year and 9.8% over the last six months.

• Net realised and unrealised gains on financial investments and FX: $14.7M.

• Dividend coverage at 80% from portfolio yield, with AUD 0.078 per share grossed up for franking credits.

• Profit reserve supports dividend sustainability and increased to $36.8M.

• Share price currently trades at a discount to NTA, narrowing from 14.6% to 10%-11.7% during the period.

Outlook and guidance

• Expectation that share price discount to NTA will continue to narrow, aiming for parity or premium.

• Confident in the sustainability of dividends and ongoing ability to deploy capital into discounted opportunities.

• Board declared an increased fully franked interim dividend of 3.25 cents per share, payable 29 May 2026.

• Positive outlook with NTA at AUD 1.33 and look-through NTA at AUD 1.51, targeting share price in the high AUD 1.40s.

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