WAM Capital Limited (WAM)

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Placement

• Placement of issued capital seeking to raise up to $25.56 million

• Issue price equivalent to pre-tax Net Tangible Asset (NTA) per share as at 31 July 2012

• Investors in the placement receive one share plus one listed option

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Aims of placement

• A reduction in fixed administrative expenses as they are spread across a larger pool of assetslarger pool of assets

• An increase in the liquidity of the company’s shares

• An increase in the size of the company, making it more significant in the market and potentially improving the coverage by research firms, dealer p y p g g y ,groups and financial advisers

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PlacementFrequently asked questionsFrequently asked questions

What are the potential benefits?• Continuing to grow the companyContinuing to grow the company• Increasing the size of the company, improving liquidity in the stock• Lowering the company’s administrative expense ratio

How will the money be invested?• In accordance with the existing investment process:

− Market Driven− Research Driven

What effect will it have on dividends?• The Board expects no impact on the dividend policy

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Placement - timetable

Announce NTA per share as at 31 July 2012 2 August 2012

Lodge Prospectus with ASIC 2 August 2012Lodge Prospectus with ASIC 2 August 2012

Placement offer opens 10.00am 3 August 2012

Placement offer closes 5.00pm 24 August 2012

Date of allotment 31 August 2012Date of allotment 31 August 2012

Expected date of despatch of holdings statements

31 August 2012statementsDate new shares commence trading on the ASX 1 September 2012

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WAM Capital: superior returns from growth companiesfrom growth companies

WAM delivers…• Exposure to a diversified portfolio of growth companies, primarily small to

di i d t i l i li t d th ASXmedium cap industrial companies listed on the ASX

Strong and consistent returns• Average investment return of 17.5% p.a. since inception outperforming the

S&P/ASX All Ordinaries Accumulation Index by 10.6% p.a.

Consistent stream of fully franked dividends• Recent 10% increase in the FY2012 fully franked dividend of 11.0 cents per

shareshare

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Outperformance since inceptioninception

WAM Capital has outperformed the market by 10.6% p.a. over 13 years

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800 Index re-based

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WAM Capital Ltd - Investment Portfolio (before all expenses, fees, taxes and dividends)S&P/ASX All Ordinaries Accumulation Index

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Outperformance: fi i lfinancial yearFinancial Year Investment Portfolio S&P/ASX All Ords OutperformanceFinancial Year Investment Portfolio S&P/ASX All Ords

Accumulation IndexOutperformance

1999/2000 +33.3% +11.3% +22.0%2000/2001 +30.2% +8.9% +21.3%2001/2002 +32.7% -4.5% +37.2%2002/2003 +12 3% 1 1% +13 4%2002/2003 +12.3% -1.1% +13.4%2003/2004 +27.3% +22.4% +4.9%2004/2005 +13.9% +24.8% -10.9%2005/2006 +27.4% +24.2% +3.2%2006/2007 +44.1% +30.3% +13.8%2007/2008 -23 0% -12 1% -10 9%2007/2008 -23.0% -12.1% -10.9%2008/2009 -3.2% -22.2% +19.0%2009/2010 +29.8% +13.8% +16.0%

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2010/2011 +17.9% +12.2% +5.7%2011/2012 +4.2% -7.0% +11.2%

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Consistent outperformance

Performance 1 Yr 3 Yrs 5 Yrs 10 Yrs Since

Inception as at 30 June 2012 % %pa %pa %pa %pa

(Aug-99)WAM Investment +4 2% +16 8% +3 5% +13 5% +17 5%Portfolio +4.2% +16.8% +3.5% +13.5% +17.5%

S&P/ASX All Ordinaries % % % % %S&P/ASX All Ordinaries Accumulation Index -7.0% +5.9% -4.1% +7.1% +6.9%

O f 11 2% 10 9% 6% 6 4% 10 6%Outperformance +11.2% +10.9% +7.6% +6.4% +10.6%

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Dividend growth

Final fully franked dividendCents per share

18.0

Final fully franked dividend 5.5 cents per share

Ex date: 17 Sept 2012

Record date: 21 Sept 2012

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16.0Record date: 21 Sept 2012

Payment date 28 Sept 2012

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Ordinary Fully Franked Dividend Special Fully Franked Dividend Equal Access Share Buy-Back

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Who is Wilson Asset Management?Management?

• Manager of three listed investment companies and one unlisted fund

• 3 Listed Funds:− WAM Capital Ltd (ASX: WAM)

WAM R h Ltd (ASX WAX)− WAM Research Ltd (ASX: WAX)− WAM Active Ltd (ASX: WAA)

• Funds under management: approx $320 million

• Focus on listed industrial companies on the ASX• Focus on listed industrial companies on the ASX

• Concentrates on small to medium cap industrial growth companies

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Our funds

Research MarketResearchDriven

MarketDriven

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What distinguishes Wilson Asset ManagementWilson Asset Management

• Over 50 years of experience in the Australian sharemarket with a high degree

of street smartsof street smarts

• A unique research rating process

• An intensive investee company visitation schedule (800+ meetings per year)

• A total focus on managing money

• A broad coverage of various industry sectors, especially at the small to

medium end of the market

• Extensive network of contacts to provide ideas to the investment team

• Flexible investment mandate (ability to hold cash and short sell)

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Our Style

• Fundamental bottom up approach

• Absolute return focus, benchmark unaware

• Quick decision making resulting from a flat structure

• Increased flexibility due to the relatively small funds under management

• A focus on risk adjusted returns with above average cash positions

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Our business model

Investment process

LIC structure benefits

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Investment focus –growth 

companies

Superior long term 

performance record

+ Flexible mandatecompanies record

Experienced  +

team

Tight cost control

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Research Drivenirating process

Filtering• On cashflow, return on equity, quality of business and management.

Rating Process• Rate management• Rate the industry/position QualitativeRate the industry/position• Forecast two year EPS growth• Valuation measure EPS/PE Quantitative

Buy / Sell criteria• Buy only when catalyst or event is identified • Sell when valuation reached

Management meetings• Meet with management of over 800 companies per year

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Market Driveninvestment processinvestment process

We scour the market for opportunities:

• Initial public offerings• Capital raisings• Block trades• Block trades• Oversold position• Takeovers• Listed Investment Companies (LIC) discount to net tangible assets (NTA)• Stocks trading at a discount to their NTA• Earnings momentum / surpriseEarnings momentum / surprise• Short selling• Market themes and trends

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LICs are superior investment vehiclesvehicles

Listed Investment Companies are very attractive investment vehicles

• LICs have outperformed the market ^

*^• Studies show LICs outperform managed funds*^

• Closed end structure – no applications or redemptions

• The ability to make longer term investments y g

• Not beholden to short term performance: the Manager is focused on delivering long term sustainable performance

• Provide consistent flow of fully franked dividends• Provide consistent flow of fully franked dividends

• Lower Management Expense Ratio (MER) compared to managed funds

• Provide opportunities – can trade at a premium/discount to assets

• Trades on the ASX which provides intra-day liquidity

• Public companies provide stringent corporate governance and accountability of Directors

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Directors

^ Australian Study: Morgan Stanly Smith Barney and Bell Potter* UK Study: Collins Stewart

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External research coverage

Research Houses covering listed investment companies & WAM Capital:

- Bell Potter Securities- Morgan Stanley Smith Barney- Zenith Partners - Independent Investment Research- APAM LIC Research- Evans & Partners- JBWere- Morningstar- E.L.&C. Baillieu

WAM Capital is on the approved product list of the Association of Independently Owned Financial Planners (AIOFP), and is listed on BT SuperWrap and BT Investment Wrap platforms

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platforms.

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Investor communications

Website – wamfunds.com.au

Weekly emails – includes market update

Monthly NTA and investment updates

Half yearly shareholder briefings

Half yearly investor newslettersy y

Half yearly results and media release

Media – Sky Business, Switzer, CNBC, newspapers, industry magazines

Attend and present at industry conferences – ASX, AIA, ASA

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QuestionsQuestions

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DisclaimerThis 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, WAM Capital Ltd, WAM Research Ltd and WAM Active Ltd unless otherwise stated.

The information in this presentation is only intended for Australian residents.

Th f thi t ti i t id i f ti l d th t t f th t ti d t t tThe 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 mayg , ynot 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 informationemployees 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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