PCG Appendix 4E and Annual Report 30 June 2024

• Underlying profit before tax of $2.4 million, loss from ordinary activities after tax of $4.3 million
• Increased operating expenses reflect costs of incubating strategies and establishing private credit division
• Declared 2 cents per share final dividend, fully franked, bringing total dividends for FY2024 to 3 cents per share

Pengana Capital Group Limited (PCG.ASX) delivered an underlying profit before tax of $2.4 million and a loss from ordinary activities after tax of $4.3 million for the year ended 30 June 2024. While the financial results were seemingly disappointing, they reflect the completion of a major repositioning of the company, with increased operating expenses related to incubating strategies and establishing the private credit division. The company's balance sheet remains strong, with statutory net tangible assets of 28.19 cents per share, including $6.5 million in net working capital and no debt, providing flexibility for capital management, including regular dividends, growth investments, and share buybacks. The board declared a 2 cents per share final dividend, fully franked, bringing the total dividends for FY2024 to 3 cents per share. Pengana has made significant strategic progress, particularly in building out its private markets capabilities, including global private equity and global private credit strategies. These private market strategies are expected to become the dominant part of the business in the medium term, leveraging Pengana's strong brand, distribution network, and institutional-grade infrastructure. While the current financial year saw limited performance fees, some of the listed equity funds have reached or are close to their performance fee high-water marks, signaling a potential return to more robust profitability in the years ahead.

Pengana expects its global private credit strategies, including the Pengana Global Private Credit Trust (ASX: PCX) and the newly launched TermPlus product, to have a significant positive impact on the company's long-term profitability, with the private markets segment expected to become the dominant part of the business in the medium term.

Pengana is well-positioned for growth, with the capacity to expand within existing strategies and the flexibility to introduce new strategies and vehicles. The company has multiple growth prospects in high-demand segments and themes, supported by an innovative management team with the experience and capability to capitalize on emerging opportunities.