HANCOCK & GORE

FY23 Half-Yearly Financial Results Presentation

Half Year Results - 31 March 2023

Hancock & Gore Ltd (ASX: HNG)

HANCOCK & GORE

IMPORTANT NOTICES

Not investment advice

The information contained in this presentation is not investment or financial product advice (nor tax, accounting or legal advice) nor is it a recommendation to acquire securities in HNG. This presentation does not and will not form any part of any contract for the acquisition of securities in HNG. This presentation has been prepared without taking into account your investment objectives, financial situation or particular needs. Before making an investment decision you should consider whether it is a suitable investment for you in light of your own investment objectives, financial situation and particular needs, having regard to the merits or risks involved and seek appropriate advice, including financial, legal and taxation advice appropriate to your jurisdiction and circumstances. This presentation and its contents are provided on the basis that recipients will not deal in the securities of HNG in breach of applicable insider trading laws.

Financial information

This presentation contains certain financial information that has been presented in an abbreviated form insofar as it does not include all the presentation and disclosures, statements or comparative information as required by the Australian Accounting Standards, the International Financial Reporting Standards (including the interpretations of the International Financial Reporting Interpretations Committee) and other mandatory professional reporting requirements applicable to financial reports prepared in accordance with the Corporations Act. The financial information provided in this presentation is for illustrative purposes and is not represented as being indicative of HNG's (or anyone else's) view of its, nor anyone else's, future financial condition and/or performance. All dollar values are in Australian dollars ($ or A$) unless otherwise stated. A number of figures, amounts, percentages, estimates, calculations of value and fractions in this presentation are subject to the effect of rounding. Accordingly, the actual calculation of these figures may differ from the figures set out in this presentation.

Company information

HNG's historical information in this presentation is, or is based on, information that has been released to ASX. This presentation should be read in conjunction with HNG's other periodic and continuous disclosure information lodged with ASX, which are available at www2.asx.com.au.

Third party information

Certain market and industry data used in connection with this presentation may have been obtained from research, survey or studies conducted by third parties, including industry or general publications. The HNG Parties have not independently verified any such market or industry data.

Historical information

Past performance information in this presentation is given for illustrative purposes only and should not be relied upon as, and is not, an indication of future performance.

Forward looking information

This presentation contains certain forward-looking statements, guidance, forecasts, estimates or projections in relation to future matters (Forward Statements) that involve risks and uncertainties, and which are provided as a general guide only. Forward Statements can generally be identified by the use of forward-looking words such as "anticipate", "estimate", "will", "should", "could", "may", "expects", "plans", "forecast", "target" or similar expressions and include, but are not limited to, indications of, or guidance or outlook on, future earnings or financial position or performance of HNG. HNG can give no assurance that these expectations will prove to be correct. You are cautioned not to place undue reliance on any forward-looking statements. None of the HNG Parties represent or warrant that such Forward Statements will be achieved or prove to be correct or gives any warranty, express or implied, as to the accuracy, completeness, likelihood of achievement or reasonableness of any Forward Statement contained in this presentation. Actual results may differ materially from those anticipated in these forward-looking statements due to many important factors, risks and uncertainties including, without limitation, risks associated with future capital needs, general economic uncertainty and other risks detailed from time to time in HNG's announcements to ASX. HNG does not undertake any obligation to release publicly any revisions to any "forward- looking statement" to reflect events or circumstances after the date of this presentation, except as may be required under applicable laws.

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PERFORMANCE HIGHLIGHTS FOR THE HALF-YEAR ENDED

31st MARCH 2023

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H1FY23 HIGHLIGHTS

• H1 FY23 ~$2.2m NPAT down 11% on H1FY22. Importantly, the 1HFY23 result didn't include any unlisted balance sheet asset revaluations despite strong underlying asset performance
• H1 FY23 ~$4.2m Revenue was up 419% on H1FY22 reflecting the contribution of dividends received and performance fees
• Strong earnings performance of Mountcastle Group with H&G dividends received of $1.5m. Progressing attractive M&A opportunities with potential for significant value uplift across Mountcastle and other balance sheet assets
• 56% growth in Funds under Management since FY22 year-end driven by increased FUM and positive fund performance with management & performance fees up 276% on H1FY22
• Increased weighting to property & high-yielding fixed income assets with new investments during the half
• Exploring M&A opportunities in investment management targeting debt, special situations and property strategies in a balance sheet light structure
• Strengthening of board and investment team to allow for greater investment in value creation for portfolio companies

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H1FY23 INCOME STATEMENT

¹ Underlying NPAT is after adjusting for employee share-based payments, depreciation and amortisation expenses and net fair value movements in unlisted financial assets and liabilities

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H1FY23 BALANCE SHEET

$63.5M

NET TANGIBLE ASSETS

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STRONG OWNERSHIP CULTURE

Strong alignment of interests between shareholders, fund investors and the H&G board and management team

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BOARD & MANAGEMENT

Building a high-quality, well-aligned investment team with broad experience and networks

GROUP / GOVERNANCE

SANDY BEARD EXECUTIVE CHAIRMAN

• 30+ years of investment experience and director of numerous public and private companies

KEVIN ELEY NON-EXECUTIVE DIRECTOR

• 30+ years of investment experience and director of numerous public and private companies

JOSEPH CONSTABLE EXECUTIVE DIRECTOR

• 7+ years of experience across public company directorships, capital markets and investment management

ANGUS MURNAGHAN NON-EXECUTIVE DIRECTOR

• 35+ years of investment/transaction experience in the Australian equities markets in senior roles

INVESTMENT TEAM

PHILLIP CHRISTOPHER INVESTMENT DIRECTOR

• 12+ years of experience across private equity, capital markets and investment management

MICHAEL MAEJI INVESTMENT MANAGER

• 5+ years of experience across corporate finance, M&A and investment management

NICHOLAS ATKINSON INVESTMENT DIRECTOR

• 25+ years of experience across capital markets, corporate finance and investment management

JOSEPH CONSTABLE PORTFOLIO MANAGER

• 7+ years of experience across public company directorships, capital markets and investment management

ARTHUR FOKSCHANER INVESTMENT ANALYST

• 4+ years experience in security analysis, market strategy, and funds management

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BALANCE SHEET INVESTMENT ACTIVITY

Progress in H1 on pursuing value creating initiatives

Key Assets

• Mountcastle
• Mint Payments
• FOS Lighting
• Disruptive Packaging
• Anagenics
• Other Listed
• Hyde Road Trust
• T-Shirt Ventures
• Other Unlisted

DISRUPTIVE PACKAGING

Better packaging. No compensation.

Mountcastle

Progressing multiple accretive M&A opportunities. In negotiations with strategically important bolt-on school uniform suppliers

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Mint
T-shirt ventures

Mint Payments

Continued revenue and earnings growth from travel sector payments solutions

T-Shirt Ventures

Continued revenue growth in NDIS technology solutions and completion of further growth investment

Anagenics

H&G cornerstoned capital raising to pursue M&A opportunities

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H&G INVESTMENT MANAGEMENT HIGHLIGHTS

56% H1 Increase in FUM driven by strong performance by H&G High Conviction Ltd (ASX:HCF) & inclusion of the Hyde Road Trust

HCF successfully completed ~$2.75m (~15%) placement at $1.04 per share post half balance date (May 23). Strong support by Perennial Value & new strategic high net worth investors

HCF generated material performance fees on the back of strong alpha generation in a volatile market

HCF FUM ~$28m post raise, that equates to an increase of 100% since H&G acquired the SIAL Funds Management vehicle in 2021. Material value creation for HNG shareholders, with platform set to build out FUM & Fees

Reposition work, increased rental income, & increased ownership interest in Hyde Rd Trust (76%). Actively analysing new property assets. Leveraging expertise for asset value maximisation

FY23 Priorities - Continued HCF performance; Explore inorganic growth opportunities; Build out distribution capability; Launch new private asset syndication fund; Add material sized new private/listed investment

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EVENTS POST HALF YEAR AND OUTLOOK

Private Assets

Mountcastle (MTC) – Strengthening board and advancing M&A opportunities

• Steven Doyle (ex Lovisa, Super Retail) appointed as Chairman
• MTC in due diligence on multiple acquisition opportunities
• H&G intention to support Mountcastle’s growth through equity participation
• MTC on track to deliver c. $10m of EBITDA for FY23

Disruptive Packaging (DP) – Customer demand accelerating growth

• Commissioning of Tecate, Mexico production line underway to supply USA market
• Progressing rollout of Unicor click & collect product for Coles
• North American orders continuing to grow rapidly (c. US$30m of written and verbal commitments)
• Exploring accretive capital raising opportunities to accelerate manufacturing capacity expansion
• YTD sales up c. 100% on last year

H&G Investment Management – Acquiring a controlling stake in experienced Private Credit fund manager

• NBIO signed to acquire 51% of Causeway Asset Management – a leading small to mid-market private credit provider
• Portfolio Managers each have 30+ years’ experience & currently manage over $75m FUM & with strong growth in new and existing products
• Provides synergistic funding competence to H&G Alternatives platform.
• Further details to be announced when due diligence is complete

Group

Dividend

• H&G Ltd declares 0.5c fully franked interim dividend – its fourth consecutive dividend since new executive team’s leadership
• Intention is to maintain the payment of regular franked dividends

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H&G STRATEGY – 2025 GOALS¹

Diversified Investment Company with an Active Value investment style that targets minimum 15% p.a. compound growth

Plan to double H&G’s Balance Sheet Assets

Plan to triple H&G’s fee-generating FUM

Plan to triple H&G market cap

Aspirational targets¹

Balance Sheet Assets

Fee Generating FUM²

Run-rate Fee-related Revenue

Ratio of Fee Generating FUM to Balance Sheet Assets

¹ 2025 Goals are aspirational targets and are not to be construed as Guidance
² Third-party Funds Under Management (FUM)

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MR. SANDY BEARD

EXECUTIVE CHAIRMAN

0412 308 263

www.hancockandgore.com.au

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