Australian Ethical Investment Ltd · ASX:AEF
Australian Ethical Investment — Investor Presentation (February 2026)
47 slides from Australian Ethical Investment's investor presentation, Feb 26, 2026
Slide 1: FY26 Half Year Results
Australian Ethical Investment Ltd FY26 Half Year Results John McMurdo (Managing Director & CEO) Mark Simons (CFO) 26 February 2026
Slide 2: Acknowledgement of Traditional Owners
Australian Ethical acknowledges the Traditional Owners of the Country on which we meet, the Gadigal people of the Eora Nation. We pay our respects to Elders past and present and thank them for protecting Country – since time immemorial.
Slide 3: Contents
Contents 01 02 03 04 Overview & 1H26 highlights Financial Results Business Update Appendices
Slide 4: Overview & 1H26 Highlights
01. Overview & 1H26 Highlights
Slide 5: We are a 'pure-play' ethical investment management company
We are a ‘pure-play’ ethical investment management company… Authentic, purpose- Successful, fast Both purpose driven, ethical growing ASX listed driven and investment leader commercially company, delivering making money a force successful long term returns to for good and having a shareholders and p
Slide 6: Proud of the long-term returns we have delivered
..and we are proud of the long-term returns we have delivered Delivering strong long-term portfolio returns Creating real world impact whilst advocating for impact.. Retail Australian Shares Fund*, achieving With our advocacy work holding corporate Australia accountable to lifting its standards 9.5%
Slide 7: Building a high-quality business capable of even more
FUM $14.08bn ..while building a high-quality business 12.54 cents diluted EPS^^ capable of even more … 1H26 5-year diluted EPS CAGR 24% Completed transition Over the past 5 years, we have grown FUM ~3X, enhanced our FY25 of super administration to GROW Inc for final business platform, delivered stro
Slide 8: Our 1H26 financial highlights further demonstrate our momentum
Our 1H26 financial highlights further demonstrate our momentum… $14.4m $13.3m $65.8m $45.1m 68.8% 8c UPAT* NPAT** Revenue Operating Cost to income Half Year up 25% up 42% up 13%^ expenses*** (CTI)**** dividend up 9% improved from 71.8% in 1H25 Up 60% • $14 billion FUM milestone reached • Record half
Slide 9: Significant business enhancements delivered during the period
..with significant business enhancements also delivered during the period 1H26 highlights Strengthening business platform Strong financial Growing superannuation Enhanced investment Business platform results scale platform optimisation • Record half year • Completed transition of all Implementation
Slide 10: Growing with a clear, consistent and disciplined strategy
Growing with a clear, consistent and disciplined strategy Our Purpose Our Vision Our Values + + Investing for a Better World Make money a force for good Action, authenticity, empathy, curiosity, connection Growing superannuation scale Extend our ethical investment with ethical investment leadership
Slide 11: Financial Results
02. Financial Results
Slide 12: For shareholders we continue to build a high-quality growth business
For shareholders we continue to FUM $bn Dividends (cps) 8 build a high-quality 13.26 14.08 growth business 9.67 5 8.37 6.94 3 3 3 5.05 • Quality business has been 2 built over the last 5 years • FUM has increased $9 billion 31 Dec 20 31 Dec 21 31 Dec 22 31 Dec 23 31 Dec 24 31 Dec 25 31 Dec 20 31 Dec
Slide 13: 1H26 Financial Results
1H26 Financial Results Our growth strategy continues to deliver strong results with Key themes NPAT up 42% and UPAT up 25% • 1H26 revenue increase of 13%^ driven by higher average Key financials ($'000) 1H26 1H25 Movement % FUM, which in turn was driven by positive net flows and investment performan
Slide 14: FUM reached the $14bn milestone, closing at $14.08bn
FUM reached the $14bn milestone, closing at $14.08bn FUM ($bn) Funds under management ($bn) Change 16.00 1H26 1H25 (YoY %)^ 13.94 14.08 14.00 Opening FUM 13.94 10.44 34% 1.81 1.53 Superannuation net flows 0.23 0.19 12.00 Investments* net flows (0.00) 0.08 10.44 2.57 2.61 Retail & Wholesale net flows
Slide 15: Continued positive organic net flows
Continued positive organic net flows Key themes Organic Net Flows ($m) $m • 1H26 retail and wholesale net flows of $227 million includes 600 Dec-22 excludes superannuation net flows of $231 Christian Super SFT of $1.9bn Sep-24 excludes Altius Dec-25 excludes million partially offset with 500 Asset M
Slide 16: Continued growth in revenue
Continued growth in revenue Key themes Revenue of $65.8m, up 13% • 1H26 total revenue increased to $65.8m, up 13% $m on 1H25 underlying revenue • Revenue increase driven by: 70.0 o average FUM growth of 18% on 1H25 6.9 0.7 0.1 o continued positive net flows 65.0 o positive investment performance 60.
Slide 17: Average revenue margin stable
Average revenue margin stable Key themes Revenue margin • 1H26 average revenue margin of Average Average revenue 0.91%, in line with 30 June 2025 FUM ($bn) margin* 16.00 1.80% • 2H26 revenue margin expected to remain at ~0.91% 1.60% 14.00 • Margin at 31 December 2025 is 1.40% 12.00 0.91% 1.20% 10.00
Slide 18: Operating expenses
Operating expenses Operating expense* increase of 9% reflects favourable impact of administration Key themes and custody transitions in FY25 • Employee expenses increased 8% mainly due to: $m o run rate of prior period hires including the Altius team 46.0 0.6 o inflationary salary increases 0.1 0.4
Slide 19: We retain a strong capital position with no debt
We retain a strong capital position with no debt Key themes Net Tangible Assets ($m)* • Strong Balance Sheet with no debt Group Capital Position 31-Dec-25 30-Jun-25 Cash & term deposits 39.9 38.8 • Strong Cash position Net cash from operating activities** 13.8 26.9 • Minimum regulatory capital Cashf
Slide 20: Delivering value for shareholders
Delivering value Dividends (cps) for shareholders 8 5 Key themes 3 3 3 2 • Positive momentum in key metrics reflecting success of the growth strategy 31 Dec 20 31 Dec 21 31 Dec 22 31 Dec 23 31 Dec 24 31 Dec 25 • Record first half dividend of 8c, up 60% on 1H25 UPAT attributable to shareholders NPAT
Slide 21: Business Update
03. Business Update
Slide 22: Growing with a clear, consistent and disciplined strategy
Growing with a clear, consistent and disciplined strategy… Our Purpose Our Vision Our Values + + Investing for a Better World Make money a force for good Action, authenticity, empathy, curiosity, connection Growing superannuation scale Extend our ethical investment with ethical investment leadership
Slide 23: Further build planned in 2026
…and the further build planned in 2026, will position our business for the next growth phase, while sustaining our momentum Extend our ethical investment Enabled by a modern operating Growing superannuation scale capability to win beyond super platform built for scale, efficiency with ethical invest
Slide 24: We consider our outlook to be favourable
We consider our outlook to be favourable – both short and medium term Factors influencing 2H26: Medium term outlook: • Continued positive net flows underpinned by SG contributions, new • Further investment in business platform to optimise sustainable growth member joins, and inflows from middle mark
Slide 25: Q&A
Q&A Australian Ethical Ag
Slide 26: Appendices
04. Appendices Australian Ethical
Slide 27: UPAT and CTI reconciliation
Appendix 1 UPAT and CTI reconciliation Key financials ($'000) 1H26 1H25 Movement % Net profit after tax (NPAT) 13,445 9,606 40% Less: Net profit attributable to The Foundation (176) (271) • 1H26 UPAT attributable to shareholders Net profit after tax attributable to shareholders 13,269 9,335 42% incr
Slide 28: Appendix 2
Appendix 2
Slide 29: Investment leadership
Investment leadership Long-term returns | Australian Shares Fund Value of $1,000 invested since inception Risk/return over ten years to December 2025 16.00 20,000 14.00 18,000 16,000 12.00 14,000 10.00 Return (%pa) 12,000 10,000 8.00 8,000 6.00 6,000 4.00 4,000 2,000 2.00 0 0.00 2010 2011 2012 2013
Slide 30: Australian Shares Fund
Australian Shares Fund Since FYTD 1Y 3Y (%pa) 5Y (%pa) 7Y (%pa) 10Y (%pa) inception (%pa) Retail* (0.4%) 2.2% 9.7% 4.5% 9.6% 7.8% 9.5% Benchmark^^ 7.5% 14.5% 12.4% 10.4% 10.8% 8.9% 7.7% Relative Performance (8.0%) (12.3%) (2.7%) (5.9%) (1.2%) (1.1%) 1.8% Wholesale^ (0.1%) 2.8% 10.4% 5.1% 10.3% 8.8%
Slide 31: Australian Shares Fund
Australian Shares Fund Rolling 1 Year 60% Net Return 50% 40% 30% 20% 10% 0% -10% -20% -30% Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 Dec-17 Dec-18 Dec-19 Dec-20 Dec-21 Dec-22 Dec-23 Dec-24 Dec-25 Australian Share Fund (Wholesale) Australian Share Fund - Blended Benchmark Rolling 3 Year 25% Net Return^ 20%
Slide 32: Emerging Companies Fund
Emerging Companies Fund Since inception FYTD 1Y 3Y (%pa) 5Y (%pa) 7Y (%pa) 10Y (%pa) (%pa) Retail* 6.9% 8.3% 11.1% 3.1% 12.5% 10.5% 11.6% Benchmark^ 6.7% 8.8% 10.8% 3.9% 6.9% 6.2% 7.1% Relative Performance 0.2% (0.5%) 0.3% (0.8%) 5.6% 4.3% 4.5% Wholesale* 7.2% 8.9% 11.6% 3.6% 13.0% 11.2% 12.3% Bench
Slide 33: Emerging Companies Fund
Emerging Companies Fund Rolling 1 Year 100% Net Return 80% 60% 40% 20% 0% -20% -40% Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Jun-23 Dec-23 Jun-24 Dec-24 Jun-25 Dec-25 Emerging Companies Fund (Wholesale) S&P/ASX Small Industrials Rolling 3 Year
Slide 34: Balanced Accumulation Option (MySuper)
Balanced Accumulation Option (MySuper) Since FYTD 1Y 3Y (%pa) 5Y (%pa) 7Y (%pa) 10Y (%pa) inception* (%pa) Absolute Performance ~ 3.1% 6.7% 9.1% 6.0% 7.7% 6.9% 6.4% Benchmark# 3.5% 6.6% 6.9% 7.5% 6.7% 6.3% 6.3% Relative Performance (0.4%) 0.1% 2.2% (1.5%) 1.0% 0.6% 0.1% 1H26 Commentary We expect equ
Slide 35: Appendix 3
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Slide 36: FUM overview
FUM overview Superannuation FUM of $9.98 billion represents 71% of the total AEI Group FUM Total FUM by product Total FUM by Asset Class & Strategy 14% 9% 7% 2% 2% 5% 35% 11% 12% 71% 9% 24% Domestic Equities (incl NZ) International Equity Short-Term Income Fixed Income (domestic) Investments - whole
Slide 37: FUM by channel
FUM by channel Super FUM by channel Investment Products FUM by channel 6% 10% 31% 37% 84% 31% Direct Advised Employer Direct Advised Institutional All numbers as at 31 December 2025 37
Slide 38: FUM summary – Asset Class & Strategy
FUM summary – Asset Class & Strategy FUM at 31 Dec 25 FUM at 30 Jun 25 Asset Class ($bn) ($bn) Domestic Equities (incl NZ) 4.97 4.98 International Equity 3.34 3.19 Short-Term Income 1.30 1.32 Fixed Income (domestic) 1.64 2.07 Fixed Income (global) 0.71 0.67 Real Assets (Property & Infrastructure) 0.
Slide 39: FUM summary – Superannuation
FUM summary – Superannuation 1H26 Market Current FUM at 30 Jun 25 1H26 Net flows FUM at 31 Dec 25 Option movement / Other Investment Fee ($bn) ($bn) ($bn) ($bn) Superannuation Defensive 0.20% 0.24 (0.01) 0.02 0.25 Conservative 0.54% 0.40 (0.00) 0.02 0.42 Balanced (Accumulation/Pension) 0.64%, 0.66%
Slide 40: FUM summary – Investment Products
FUM summary – Investment Products – 31 December 2025 Middle Retail Wholesale Retail Wholesale Market/Values Institutional^ Total Funds Investment fee Investment fee ($m) ($m) Aligned^ ($m) ($m) % % ($m) Income Fund 0.20% 0.20% 1.3 11.1 0.1 - 12.5 Credit Income Fund 0.30% 0.20% 2.7 2.6 - 264.5 269.7
Slide 41: Appendix 4
Appendix 4
Slide 42: Financial Metrics
Financial Metrics Financial metrics FY25 FY24 FY23 1H26 2H25 1H25 2H24 1H24 2H23 1H23 FUM based revenue (ex performance fee) ($m) 111.7 92.9 75.0 61.3 57.0 54.7 48.1 44.8 41.1 33.9 Performance fee ($m) - 0.2 - - - - 0.2 - - - Member based revenue ($m)^ 5.4 6.0 5.1 3.0 2.7 2.7 3.0 3.0 2.7 2.4 Other (
Slide 43: Growth metrics
Growth Growth metrics FY25 FY24 FY23 1H26 2H25 1H25 2H24 1H24 2H23 1H23 metrics FUM – accumulated super ($bn) FUM – pension super ($bn) 8.86 0.66 7.69 0.56 6.72 0.48 9.24 0.74 8.86 0.66 8.34 0.62 7.69 0.56 7.11 0.52 6.72 0.48 6.05 0.45 FUM – total super ($bn) 9.52 8.25 7.21 9.98 9.52 8.96 8.25 7.63
Slide 44: Fees
Fees Additional information Superannuation average Investments average revenue margin revenue margin~ Includes retail, wholesale^ and institutional • Margins have reduced over time as we pass on benefits of scale to investors and members through fee $bn $bn reductions, and as mix of asset classes ha
Slide 45: Disclaimer
Disclaimer Australian Ethical Investment Ltd (ABN 47 003 188 930; AFSL No. 229949)(AEI) is This document may contain material provided by third parties derived from sources the Responsible Entity or Trustee of the Australian Ethical managed funds. believed to be accurate at its issue date. While suc
Slide 46: Disclaimer contd.
Disclaimer contd. Zenith- ‘Recommended’ rating applies to the Altius Green Bond Fund, Altius Sustainable Bond Fund, and Altius Sustainable Short Term Income Fund The Zenith Investment Partners (ABN 27 103 132 672, AFS Licence 226872) (“Zenith”) rating AUS9041AU Altius Green Bond Fund, AUS0071AU Alti
Slide 47: Thank you.
Australian Ethical Ag Thank you.
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