HGL : Placement

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Financial Results &

Equity Capital Raising

Presentation

Financial Year Ending September 2021

Platform set for FY22 and Beyond

HGL Ltd (ASX:HNG) Hancock & Gore

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IMPORTANT NOTICES

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.

Disclaimer

No representation or warranty, whether express or implied, is made by any person as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. You should carry out your own investigations and analysis of HNG and verify the accuracy, reliability and completeness of the information contained in this presentation. Neither the HNG Parties nor the Joint Lead Manager Group accept any responsibility for any loss arising from anyone acting or refraining from acting in reliance on the contents of this presentation. To the maximum extent permitted by law, the HNG Parties and the Joint Lead Manager Group exclude and disclaim all liability, including for negligence, or for any expenses, losses, damages or costs incurred by you as a result of your participation in the Equity Raising and the information in this presentation being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise. The reader acknowledges that neither HNG nor the Joint Lead Manager Group intend that any member of the Joint Lead Manager Group act or be responsible as fiduciary, or assume any duty, to the reader, its officers, employees, consultants, agents, security holders, creditors or any other person. Each of the reader and the Joint Lead Manager (on behalf of each other member of the Joint Lead Manager Group), by accepting and providing this presentation respectively, expressly disclaims any fiduciary relationship between them, or the assumption of any duty by the Joint Lead Manager Group to the reader, and agrees that it is responsible for making its own independent judgments with respect to the Equity Raising, any other transaction and any other matters arising in connection with this presentation. Members of the Joint Lead Manager Group may have interests in the securities of HNG, including providing securities advisory services to, HNG. Further, they may act as a market maker or buy or sell those securities or associated derivatives as principal or agent. The Joint Lead Managers and/or their affiliates may also receive and retain other fees, profits and financial benefits in each of the above capacities and in connection with the above activities, including in their capacity as a joint lead manager and bookrunner to the Equity Raising. Determination of eligibility of investors of the Equity Raising is determined by reference to a number of matters, including at discretion of HNG and the Joint Lead Managers. HNG and the members of the Joint Lead Manager Group disclaim any liability in respect of the exercise of that discretion, to the maximum extent permitted by law. International offer restrictions This document does not constitute an offer of Shares of HNG in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the Shares may not be offered or sold, in any country outside Australia except to the extent permitted below.

New Zealand

This document has not been registered, filed with or approved by any New Zealand regulatory authority under the Financial Markets Conduct Act 2013 (New Zealand) (the FMC Act). The New Shares are not being offered or sold in New Zealand (or allotted with a view to being offered for sale in New Zealand) other than to a person who:

• is an investment business within the meaning of clause 37 of Schedule 1 of the FMC Act;
• meets the investment activity criteria specified in clause 38 of Schedule 1 of the FMC Act;
• is large within the meaning of clause 39 of Schedule 1 of the FMC Act;
• is a government agency within the meaning of clause 40 of Schedule 1 of the FMC Act; or
• is an eligible investor within the meaning of clause 41 of Schedule 1 of the FMC Act.

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BUSINESS OVERVIEW

PERFORMANCE HIGHLIGHTS FOR THE YEAR ENDED 30TH SEPTEMBER 2021 (FY21)

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81%	SHAREHOLDER
RETURN

55%	NTA PER SHARE
	GROWTH

94%	NPAT RETURN ON
		NET ASSETS
24%	FUM
		GROWTH

$15.6M NET PROFITAFTER TAX

$47.1M NTA

VALUE

~$0.26 NTA PER

SHARE

$0.01 FULLY FRANKEDDIVIDEND

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FY21 HIGHLIGHTS

Return to significant profitability - FY21 ~$15.6m NPAT

Resumed paying dividends - 1 cent per share fully franked declared. Franking Credit balance of $9.2m

Active transformation and value crystallisation of both JSB & BLC private investments releasing >$2m

profit and liquidity in FOS Capital Ltd (FOS) and Cellmid Ltd (CDY) respectively.

Realised > $1.2m profit from ASX Listed share portfolio - annualised IRR of > 50%

Acquisition of Funds Management Vehicle and relaunch of H&G High Conviction Fund. Fund achieved return of 18% in 6 months post acquisition

New Private Equity Investments - T-ShirtVentures & Mint Payments

Increase in valuation of Mountcastle & Pegasus reflecting underlying earnings growth

$5.8m EBIT generated by operating businesses (H&G share, no longer consolidated or equity accounted)

Strong Balance sheet - in excess of $7m Cash available - NTA approx. $0.26 per share