Aberforth Partners LLP Presentation to ASLIT Investors May 2021

14 Melville Street ‐ Edinburgh EH3 7NS Tel 0131 220 0733 ‐ Fax 0131 220 0735 [email protected] ‐ www.aberforth.co.uk

Aberforth Partners LLP is authorised and regulated by the Financial Conduct Authority Aberforth Unit Trust Managers Limited is authorised and regulated by the Financial Conduct Authority Aberforth Partners update

. Over 30 years of value investing

─ We remain committed to the self‐imposed ceiling on the business

─ AUM capped at c.1.5% of the NSCI (XIC)’s market cap

─ Unchanged ownership structure, collegiate approach, investment focus

. A consistent process as the partnership continues its natural evolution

─ Sonya Kim joined as an investment manager on 1 March 2021

─ The investment managers’ biographies are included in the appendix

. Alignment of interests through the managers’ significant holdings

. UK Stewardship Code 2020 – updated report available on our website

Aberforth Partners LLP 1 Performance – periods to 30 April

CAGR 16 months to Total Return %YTD1 YearApril 2021 *Launch **Inception FTSE All‐Share 9.7 25.9 ‐1.1 3.6 3.6 FTSE 250 (XIC) 12.2 41.2 2.7 5.8 5.8 FTSE SmallCap (XIC) 23.4 69.5 25.5 8.2 8.2 NSCI (XIC) 16.9 55.9 11.9 6.9 6.9 ASLIT Total Assets 22.8 55.1 ‐1.9 3.2 2.4 ASLIT ORD NAV 31.5 83.3 ‐2.8 3.4 2.5 ASLIT ORD share price 22.0 85.8 ‐5.4 ‐0.5 ‐ ASLIT ZDP share price 3.2 5.2 2.8 2.9 ‐ *Excludes the effects of launch costs **Inception date for ASLIT was 30/06/2017

. The recovery was initiated by the vaccines and has continued into 2021

. 16 month period to April underlines the cyclical skew of the portfolio

Aberforth Partners LLP Source: Aberforth Partners LLP; FTSE; Business School. Data as at 30 April 2021. 2 Factor effects on 16 month performance to 30 April 2021

. We seek to understand businesses and value them, engaging when appropriate

. But factors affect the performance of our portfolios

. The influence of factors has changed markedly over the course of the pandemic

16M to April 2021 10M to October 2020 6M to April 2021 Total return relative The full period The pandemic in full swing The vaccine recovery Share prices fall Share prices rebound

ASLIT Total Assets TR / NSCI (XIC) ‐12% ‐21% +11%

Style factor: Value / growth within NSCI (XIC) ‐6% ‐24% +23% Consistent value philosophy  Size factor: Smaller smalls / larger smalls +22% +5% +16% Portfolio over‐weight smaller smalls    Geographical factor: Domestics / overseas within NSCI (XIC) ‐4% ‐15% +7% Portfolio over‐weight domestics  Factor positioning scores:  = bad for the portfolio's relative performance,  = good

Aberforth Partners LLP Source: Aberforth Partners LLP; FTSE; London Business School. Data as at 30 April 2021. 3 Winners and losers –4 months to 30 April 2021

10 Best winners Total return Contribution 8 Worst Losers Total return Contribution Rank Company(%) (bp) Rank Company (%) (bp) 1Reach 53 226 1 Provident Financial ‐20 ‐40 2Wincanton 72 206 2Vectura Group ‐10 ‐17 3 Bakkavor Group 69 116 3PayPoint ‐7 ‐16 4Vitec Group 54 101 4Centamin ‐13 ‐13 5 37 98 5Morgan Advanced Materials ‐4 ‐11 6 Lookers 214 86 6Sabre Insurance Group ‐2 ‐3 7 International Personal Finance 57 85 7Chesnara ‐3 ‐1 8Vistry Group 34 78 8Ultra Electronics Holdings 00 9TI Fluid Systems 24 71 10 CMC Markets 25 59

. Contribution is absolute return performance in basis points

Aberforth Partners LLP Source: Aberforth Partners LLP; Portfolio Evaluation. Data as at 30 April 2021. 4 Purchases and sales –4 months to 30 April 2021

Top 10 Purchases Top 10 Sales Rank Company £m Rank Company £m 1 2.2 1Reach 2.3 2 International Personal Finance 1.7 2Forterra 2.2 3City Of London Investment Group 1.2 3RDI 2.1 4Chesnara 1.1 4Halfords Group 1.5 5Crest Nicholson Holdings 0.9 5 Bloomsbury Publishing 1.0 6Headlam Group 0.9 6Senior 0.9 7Vivo Energy 0.8 7Vitec Group 0.9 8Brewin Dolphin Holdings 0.8 8U and I Group 0.6 9Anglo Pacific Group 0.6 9Wincanton 0.4 10 S&U 0.6 10 Hostelworld Group 0.4 New Holding or Total Sales . 4 month annualised turnover is 17% . Market recovery allows “value roll” to recommence . “Value roll”: sale of relatively expensive stocks & reinvestment into cheaper stocks ─ In the 4 months, average 2023 EV/EBITA of sales 11.5x versus 7.4x for purchases

Aberforth Partners LLP Source: Aberforth Partners LLP. Data as at 30 April 2021. 5 Analysis of the December results season . 99 companies in Aberforth’s Tracked Universe with December year ends ─ A useful cross‐section of the small cap universe

Aggregate Median Δ Aggregate Median Δ 2019 2020 2021 Δ YoY YoY Δ YoY YoY Sales £85bn £71bn ‐16% ‐10% £79bn 10% 7% % with higher sales 27% 78% EBITA £7.5bn £3.5bn ‐54% ‐31% £5.9bn 69% 12% % with higher EBITA 27% 65% Margin 8.9% 4.9% 7.5% % with higher Margin 29% 81% Capex to depreciation ratio 1.34x 0.95x 1.28x % with ratio > 1 63% 34% 41% Aggregate net debt * £21bn £19bn £21bn % with a stronger balance sheet 62% 42% All figures exclude resources companies on account of the volatility in their profits; *Aggregate net debt excludes banks . The earnings of the portfolio fell sharply on account of its cyclical exposure ─ Despite a terrible year for profits, the results do suggest a degree of resilience . The portfolio stands to benefit from economic recovery and normalisation ─ There are signs that companies will start to reinvest for future growth ─ A return to pre‐pandemic trend profits probably comes in 2023

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School. Data as at 31 March 2021. 6 Income –improving dividend experience

Portfolio categorised by holding's most recent dividend action 25

20 Other includes companies that passed dividends 15 in 2020, but were companies

of able to return to

10 20 21 the register Number

5 999

0 down nil payer no change increase other

. Not all holdings are forecast to return to pre‐pandemic dividend levels by 2024 ─ The managers continue to engage with boards on dividend policy . However, many companies are returning to the register earlier than expected ─ This improves confidence in the “Board’s ambition … that the rate of decline in the second interim dividend will be no worse than that of the first interim dividend.” . Revenue reserves entering the current financial year were 0.86p . Share price and dividend progress are aligned in this recovery phase

Aberforth Partners LLP Source: Aberforth Partners LLP. Data as at 30 April 2021. 7 Balance sheets –net debt/EBITDA categories . The chart shows the resilience of smaller companies using Aberforth’s forecasts ─ The bars are for the Tracked Universe, the crosses for the portfolio ─ The exposure to high leverage reduces in 2022 and 2023 ─ This reflects the underlying generation of free cash flow 55% Leverage profile of ASLIT and the Tracked Universe 50% X

45% X X 40% X X 35% Portfolio

&

30% X Universe 25% Tracked 20% of

value 15%

by

% 10% X X

5% X

0% Net cash balance sheets Balance sheets < 2x Balance sheets > 2x

Tracked Universe position at 30/4/2021 Tracked 2022 Basis Tracked 2023 Basis X ASLIT position at 30/04/2021 X ASLIT 2022 Basis X ASLIT 2023 Basis

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School. Data as at 30 April 2021. 8 Valuations –historical PEs

Absolute historical PE: Aberforth portfolio 20x Absolute PE of the portfolio 18x +1 Standard deviation 16x . Back to the long term average 14x x 12x PE ─ The chart illustrates the cyclical 10x

8x ‐1 Standard deviation influence on valuations 6x 4x ─ PEs have reached higher levels in previous recoveries Aberforth PE

Portfolio PE relative to NSCI (XIC) PE Relative historical PE: Aberforth portfolio vs NSCI (XIC)

1.20 . Re‐rating to long term average

1.10 +1 Standard deviation 1.00 ─ Out‐performance during the 0.90 relative

vaccine recovery 0.80 ‐1 Standard deviation x

PE 0.70 0.60 ─ Portfolio’s earnings dropped more 0.50 0.40 sharply and should rebound more sharply too Aberforth v NSCI (XIC)

Relative historical PE: NSCI (XIC) vs FTSE All‐Share (XIC) NSCI (XIC) PE versus FTSE All‐Share PE 1.60

1.40 . Small companies unusually cheap

1.20 +1 Standard deviation relative to large companies 1.00 relative ─ Small cap profits have fared better PE 0.80

‐1 Standard deviation 0.60 ─ Sector effects influential

0.40

NSCI (XIC) v FTAS (XIC)

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School. Data as at 30 April 2021. 9 Prospects for value after six months of the rally

. ASLIT has benefited from a rotation to value since the vaccine announcements ─ Risks remain: Brexit and the development of the pandemic . But what might allow the rotation to continue?

1. Continued normalisation ─ The recovery from the pandemic and recession has not fully played out ─ See Portfolio categorisation slide for what this might mean for the portfolio

2. Reflation ─ Monetary policy is joined by fiscal stimulus to jump‐start higher economic activity ─ The split between real economic growth and inflation is unclear ─ Both could be seen to benefit the prospects of value relative to growth

3. Value has led since the vaccines, but growth has not retrenched ─ Growth cohort of NSCI (XIC) +28% since 31 October 2020 ─ Money has not yet moved meaningfully away from growth

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School. Data as at 30 April 2021. 10 Portfolio categorisation . 53% of portfolio holdings below their pre‐pandemic price . Despite strong gains, portfolio valuations remain attractive . This suggests that the recovery has not fully played out

Proportion of portfolio in holdings Proportion of portfolio in holdings 47% 53% above their end‐2019 prices below their end‐2019 prices

Total Return since end‐2019 41% Total Return since end‐2019 ‐18% Total Return YTD 33% Total Return YTD 20% Weighted upside 34% Weighted upside 43% YTD Net purchases/(sales) (£3m) YTD Net purchases/(sales) £5m Reach 4.3% Holdings 3.2% Wincanton 3.9% Rathbone Brothers 2.8% Redde Northgate 3.0% Morgan Advanced Materials 2.4% TI Fluid Systems 3.0% Bakkavor Group 2.4% Vesuvius 2.8% International Personal Finance 2.4% 2.5% Holdings 2.0% CMC Markets 2.4% STV Group 2.0% Bloomsbury Publishing 2.1% Anglo Pacific Group 2.0% Vitec Group 2.1% McKay Securities 1.8% Keller Group 2.0% Headlam Group 1.7% …see appendix for full portfolio …see appendix for full portfolio

Aberforth Partners LLP Source: Aberforth Partners LLP; Portfolio Evaluation. Data as at 30 April 2021. 11 Style: influence of bond yields on the value style

Value minus Growth performance within the NSCI (XIC), three month periods

20.0%

Yields: 2.0% to 3.2% Yields: 0.5% to 1.7% Yields: 1.5% to 3.0% 15.0% No follow‐through in the Scepticism after previous “The great rotation” UK … Brexit? false dawns 10.0%

5.0%

0.0%

‐5.0%

‐10.0%

‐15.0%

Periods of rising 10 year US government bond yields Value minus Growth: 3 month total returns

. Rising government bond yields should be to the relative advantage of value . Fiscal stimulus may sustain the current rise in yields and the value rally

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School; Bloomberg. Data as at 30 April 2021. 12 The long term value premium . The chart shows the value premium over the long term . It has been absent since the financial crisis ─ Illustrated by the red bars and by the downwardly sloping green line . A welcome revival over the past six months … so far only just discernible

19% The Value Premium: NSCI (XIC) value component vs NSCI (XIC) * Index 870 17% – since Index inception +3.1% p.a.

15%

670 13%

11% (XIC) 9% 470 NSCI

vs

7% (XIC) 5% NSCI 3% 270 of

1%

component ‐1%

70

Value ‐3%

‐5%

‐7% ‐130 16 07 98 89 80 71 62 21 14 12 05 03 96 94 87 85 78 76 69 67 60 18 09 00 91 82 73 64 ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ ‐ Jun Jun Jun Jun Jun Jun Jun Sep Sep Sep Sep Sep Sep Sep Dec Dec Dec Dec Dec Dec Dec Mar Mar Mar Mar Mar Mar Mar

Rolling 5 year Value component of NSCI (XIC) vs NSCI (XIC) Value performance relative to NSCI (XIC) (RHS)

*NSCI data based on extended NSCI (XIC) from 1980 and NSCI for prior dates

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School. Data as at 30 April 2021. 13 Morningstar style box categorisation

. Small cap fund positioning by style (x‐axis) remain highly polarised ─ No meaningful shift in the growth consensus

ASLIT *Aberforth Investment Trusts Mid Cap ITs Size Unit Trusts

ASLIT

Style

Aberforth Partners LLP *Aberforth “Standard Value” portfolio. Source: Aberforth Partners LLP; Morningstar. Data available as at 10 May 2021. 14 Valuation – EV/EBITA

. The cyclical influence on the portfolio’s valuation shown in the table ─ The small discount to the Tracked Universe in 2020 widens to more familiar levels of c.20% as the upside of that cyclicality comes through . The growth stocks retain much higher valuations ─ By 2022 more than double the multiple of the portfolio

NSCI Number Weighted avg. EV/EBITA 2020 2021 2022 2023 weight of stocks market cap. Growth stocks 20.1x 22.4x 19.1x 16.7x 19% 42 £992m

The rump 14.5x 12.6x 10.2x 8.7x 78% 199 £1,017m

Tracked Universe 15.3x 13.7x 11.1x 9.5x 97% 241 £1,012m

ASLIT 13.0x 10.5x 8.8x 7.5x 68 £751m

Relative to Tracked (%) 85 77 79 79

. The portfolio also stands out against private equity, M&A and IPO valuations

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School. Data as at 30 April 2021. 15 Valuation – corporate activity . There has been a pick up in corporate activity across the market ─ Investors, corporates and private equity are re‐engaging with UK assets ─ Recent M&A and IPO transactions show the extent of the value stretch . M&A premiums have averaged 49% since October 2020* ─ Two deals highlight the portfolio’s attractive valuations

M&A target Takeover premium Takeover valuation Portfolio comparator Valuation

Gamesys 41% 23x 2019 EV/EBITA Rank 13x 2019 EV/EBITA

Urban & Civic 64% 1.0x 2020 NAV U and I Group 0.5x 2020 NAV

. IPOs show the continuing lure of secular growth and promise of future profits ─ Two examples with direct relevance to portfolio holdings

IPO 2023 valuation Portfolio comparator 2023 valuation

Moonpig 25x EV/EBITA Card Factory 7x EV/EBITA

Cazoo Ltd (US SPAC listing) Loss making; 1.3x EV/Sales Lookers 5x EV/EBITA ; c.0.1x EV/Sales

*Average premium of the ten NSCI (XIC) M&A transactions announced since October 2020

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School. 16 After six months of rallying share prices, what’s left?

. Portfolio weighted upside 38% ─ Share price target plus two years of dividends ─ Targets set in context of current small cap valuations ─ No general small cap re‐rating is assumed ─ Upside back roughly to pre‐pandemic levels ─ Prospective PE of 9.3x and 12.4x at target ─ The upside does not assume any “value roll” . Ordinary share gearing: 31% geared at end April . Ordinary share discount: 12% at the end of April . Not a forecast!

Aberforth Partners LLP Source: Aberforth Partners LLP; FTSE; Bloomberg. Data as at 30 April 2021. 17 ASLIT valuation statistics as at 30 April 2021

Ordinary shares ZDP shares Redemption yields: Redemption yields: (p.a. returns to 30 June 2024) Capital Terminal Dividend growth p.a. growth NAV ‐10.0% ‐5.0% +0% +5% +10% Now 4.25% 111.5p to 127.25p at 30 June 2024 +0.0% 84.2p 4.6% 4.9% 5.2% 5.6% 7.1% +5.0% 103.6p 11.4% 11.6% 11.9% 12.2% 13.6% At launch 3.50% 100p to 127.25p at 30 June 2024 +10.0% 125.2p 17.9% 18.1% 18.4% 18.7% 20.0% +15.0% 149.0p 24.3% 24.5% 24.8% 25.0% 26.2% +20.0% 175.2p 30.6% 30.8% 31.0% 31.3% 32.4%

Hurdle rates: (p.a. returns to 30 June 2024) Hurdle rates: (p.a. returns to 30 June 2024) 30 Apr. Launch 30 Apr. Launch To return share price ‐0.8% 1.5% To return 127.25p ‐33.4% ‐17.0% To return 100p 4.1% 1.5% To return zero value ‐85.3% ‐57.2% To return zero value ‐33.4% ‐17.0%

Premium/(discount) incl. revenue reserves: ‐12% Premium/(discount) to net asset value: ‐2%

Dividends: 2017/8 2018/9 2019/20 2020/21 Final cumulative cover: 30 Apr. Launch Ordinary 4.00p1 4.16p112 4.22p 0.92p 3.5x 3.4x Special 0.60p 0.19p ‐ Revenue reserves 0.83p 1.62p 0.86p 1 First and Second Interim Dividends 2 First Interim Dividend

The valuation statistics set out above are projected, illustrative and do not represent profit forecasts. There is no guarantee that these returns will be achieved. Terms used above have the same meaning as described further in the glossary on pages 56‐57 in the Annual Report for the period ending 30 June 2020.

Aberforth Partners LLP Source: Aberforth Partners LLP. Data as at 30 April 2021. 18 Conclusion

. The cyclical recovery is a tailwind for smaller companies and value . Normalisation of economies and monetary conditions presents challenges and opportunities

─ Will the winners of the past ten years continue to out‐perform? . The portfolio is well diversified and is invested in resilient businesses

─ They have coped well with another crisis

─ They should benefit from the on‐going recovery

─ Thereafter, they can resume normal rates of investment and profit growth . The upside from the portfolio is supported by attractive valuations and the opportunity for “value roll” . ASLIT remains highly differentiated from its competitors

Aberforth Partners LLP 19 Appendix

Aberforth Partners LLP 20 Stewardship

. UK Stewardship Code 2020 – updated report available on our website

. ESG considerations are integrated in our investment process

─ Examples in the stewardship policy illustrate this integration

. Aberforth will not launch separate ESG products

. Our approach to ESG continues to evolve

─ Effective Governance enables the development and implementation of Environmental and Social policies

─ No exclusion lists … anything in the NSCI (XIC) is a potential investment

─ Engagement can improve both ESG outcomes and investment returns*

─ Aberforth’s long record of engagement positions us well

* Bernstein “Fund Management Strategy: Activism short term and "bad", ESG long term and "good"?”

Aberforth Partners LLP Source: Aberforth Partners LLP 21 Portfolio categorisation: full portfolio

Proportion of portfolio in holdings Proportion of portfolio in holdings 47% 53% above their end‐2019 prices below their end‐2019 prices

Total Return since end‐2019 41% Total Return since end‐2019 ‐18% Total Return YTD 33% Total Return YTD 20% Weighted upside 34% Weighted upside 43% YTD Net purchases/(sales) (£3m) YTD Net purchases/(sales) £5m Reach 4.3% 1.3% Brewin Dolphin Holdings 3.2% SIG 1.2% Wincanton 3.9% 1.2% Rathbone Brothers 2.8% RM 1.2% Redde Northgate 3.0% RHI Magnesita 1.2% Morgan Advanced Materials 2.4% Topps Tiles 1.1% TI Fluid Systems 3.0% Devro 1.2% Bakkavor Group 2.4% DFS Furniture 1.1% Vesuvius 2.8% Zegona Communications 1.2% International Personal Finance 2.4% Forterra 1.1% Vistry Group 2.5% Robert Walters 1.1% Crest Nicholson Holdings 2.0% Go‐Ahead Group 1.1% CMC Markets 2.4% Lookers 1.0% STV Group 2.0% Holdings 1.0% Bloomsbury Publishing 2.1% PageGroup 0.9% Anglo Pacific Group 2.0% Stagecoach Group 1.0% Vitec Group 2.1% S&U 0.8% McKay Securities 1.8% Card Factory 0.8% Keller Group 2.0% Centaur Media 0.7% Headlam Group 1.7% 0.8% Eurocell 1.9% Hansard Global 0.7% PayPoint 1.7% Hostelworld Group 0.7% 1.5% Smiths News 0.6% 1.7% Genel Energy 0.7% Kenmare Resources 1.5% Moneysupermarket.com 0.3% Rank Group 1.6% 0.7% City Of London Investment Group 1.3% Wilmington 1.6% U and I Group 0.6% Castings 1.5% Speedy Hire 0.6% Chesnara 1.3% Hollywood Bowl Group 0.6% Provident Financial 1.3% Senior 0.5% Sabre Insurance Group 1.3% Vp 0.3% RPS Group 1.3% McColl's Retail Group 0.2% TT Electronics 1.2% C&C Group 0.0%

Aberforth Partners LLP Source: Aberforth Partners LLP; Portfolio Evaluation. Data as at 30 April 2021. 22 Top 20 holdings

Total Rank Company Activity portfolio (%) 1Reach UK newspaper publisher 4.3 2 Wincanton Logistics 3.9 3Brewin Dolphin Holdings Private client fund manager 3.2 4 Redde Northgate Van rental 3.0 5TI Fluid Systems Automotive parts manufacturer 3.0 6 Rathbone Brothers Private client fund manager 2.8 7 Vesuvius Metal flow engineering 2.8 8Vistry Group Housebuilding 2.5 9Morgan Advanced Materials Manufacture of carbon & ceramic materials 2.4 10 Bakkavor Group Food manufacturer 2.4 11 CMC Markets Financial derivatives dealer 2.4 12 International Personal Finance Home credit provider 2.4 13 Bloomsbury Publishing Independent publishing house 2.1 14 Vitec Group Photographic & broadcast accessories 2.1 15 Keller Group Ground engineering services 2.0 16 Crest Nicholson Holdings Housebuilding 2.0 17 STV Group Multi‐channel digital media 2.0 18 Anglo Pacific Group Natural resources royalties 2.0 19 Eurocell Manufacture of UPVC building products 1.9 20 McKay Securities Property ‐ London & South East offices 1.8 Top 20 51.0 21 ‐ 30 15.3 31 ‐ 68 33.7 Actively managed portfolio with an active share of 76% 100.0

Aberforth Partners LLP Source: Aberforth Partners LLP. Data as at 30 April 2021. 23 ASLIT –sector exposures

NSCI (XIC) ASLIT Sector Significant holdings weight weight

Technology 5.8% 2.7%

Telecommunications 2.2% 1.2%

Health Care 3.4% 1.3%

Brewin Dolphin Holdings, International Personal Finance, CMC Markets, Financials 14.7% 18.5% Rathbone Brothers

Real Estate 9.0% 2.4% McKay Securities

Bloomsbury Publishing, Headlam Group, Reach, TI Fluid Systems, Rank Group, Consumer Discretionary 22.0% 30.9% Vistry Group, STV Group, Crest Nicholson Holdings

Consumer Staples 4.9% 3.8% Bakkavor Group

Essentra, Eurocell, Keller Group, Morgan Advanced Materials, PayPoint, Vesuvius, Vitec Industrials 24.4% 31.4% Group, Wincanton, Redde Northgate

Basic Materials 6.5% 5.4% Anglo Pacific Group

Energy 4.5% 0.7%

Utilities 2.7% 1.5%

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School. Data as at 30 April 2021. 24 2021 growth stocks Securities Group JTC Mode Global Holdings AG Barr Nanoco Group Alfa Financial Software Holdings NCC Group Allied Minds On The Beach Group Aptitude Software Group Oxford Biomedica Arix Bioscience Pensana BATM Advanced Communications Porvair Calisen PPHE Hotel Group Clarkson PureTech Health Clipper Logistics PZ Cussons Dignity discoverIE Group SolGold DP Eurasia Supply@Me Capital Esken FDM Group Holdings The Gym Group Fisher (James) & Sons Treatt Gresham Technologies Group HeiQ XP Power Zoetic International Zotefoams IP Group See slide "Valuation ‐ EV/EBITA" for context

Aberforth Partners LLP Source: Aberforth Partners LLP. Data as at 1 January 2021. 25 3 collective investment vehicles

Aberforth Smaller Companies Aberforth UK Small Aberforth Split Level Trust (ASCoT) Companies Fund (AFUND) Income Trust (ASLIT)

Inception December 1990 March 1991 July 2017

Structure Closed‐end Open‐end Closed‐end

Gearing Tactical = 5.0% N/A Structural (ZDPs) = 23.4%

Size (AUM) £1,519m £201m £230m

Number of investee companies 79 79 68

Benchmark NSCI (XIC) NSCI (XIC) N/A

Investment philosophy Value Value Value/Income

Management fees (ongoing charges) 74 bps* (81 bps) 75 bps (83 bps) 103 bps (126 bps)

Performance fee No No No

RDR: platforms >20 >15 >20

RDR: clean price N/A Yes N/A

Authority: share buyback Yes N/A No

Authority: dividends from capital No N/A No

Richard Davidson Angus Gordon Lennox Chairman N/A [email protected] [email protected]

* For a full explanation of the fee structure and ongoing charges, please refer to the Fund’s Annual Report or visit www.aberforth.co.uk

Aberforth Partners LLP Source: Aberforth Partners LLP. Data as at 30 April 2021. 26 Investment trust

Aberforth Smaller Companies Trust plc (ASCoT)

. next continuation vote in March 2023 and every 3 years thereafter Ordinary shares . authority to buy‐in up to 13,299,587 shares has been granted 88,723,066 . cumulative shares bought‐in for cancellation = 10,086,722

. as at 30 April 2021 actual was 5.0% Gearing . potential for up to £130m or 8.6%

Dividends Based on the following historic actuals:

2020 . final announced January 2021 paid March 2021 (22.90p) 33.30p . interim announced July 2020 paid August 2020 (10.40p)

. interim announced July 2019 paid August 2019 (10.00p) 2019 . final announced January 2020 paid March 2020 (22.00p) 36.00p . special announced January 2020 paid March 2020 (4.00p) . interim announced July 2018 paid August 2018 (9.50p) 2018 . final announced January 2019 paid March 2019 (20.75p) 38.00p . special announced January 2019 paid March 2019 (7.75p)

Note: Further details available in the Fund’s Annual Report and from www.aberforth.co.uk

Aberforth Partners LLP Source: Aberforth Partners LLP. Data as at 30 April 2021. 27 Unit trust

Aberforth UK Small Companies Fund (AFUND)

As 30 April 2021 Issue Price Cancellation Price Units in Issue

Accumulation Units £306.66 £300.71 382,664 Income Units £218.58 £214.34 391,768

Limited issue fund with Accumulation and Income units . value at cancellation price: £199m . no entry or exit charged; dealing spread 1.9% (mid‐basis) . yield on Income units: 0.8% . current distribution period ends 31 December 2020; paid February 2021 . previous distribution period ended 30 June 2020; paid 28 August 2020 . annual management fee: 0.75%; no performance fee . 5/8 of management fee allocated to capital

Daily subscriptions and redemptions . deals can be placed each business day prior to 4.30pm . dual priced fund; prices calculated using closing prices each business day . “forward pricing”

Note: Further details available in the Fund’s Annual Report, Prospectus and Key Investor Information Document and from www.aberforth.co.uk

Aberforth Partners LLP Source: Aberforth Partners LLP. Data as at 30 April 2021. 28 Investment trust Aberforth Split Level Income Trust plc (ASLIT)

Ordinary shares . all net income, plus all net assets on a winding up –after ZDP 190,250,000 entitlements met

Zero Dividend Preference . no dividends, but final capital entitlement of 127.25p on planned (ZDP) shares winding up date 47,562,500

Life . planned winding up date: 1 July 2024

Gearing . structural gearing via the ZDP shares

Based on the following historic actuals: Dividends

2021 . First interim paid March 2021 (0.92p)

2020 . First interim paid March 2020 (1.51p) 4.22p . Second interim paid August 2020 (2.71p)

2019 . First interim paid March 2019 (1.45p) 4.35p . Second interim paid August 2019 (2.71p) . Special paid August 2019 (0.19p)

Note: Further details available in the Fund’s Prospectus and from www.aberforth.co.uk

Aberforth Partners LLP Source: Aberforth Partners LLP. Data as at 30 April 2021. 29 Investment managers

SAMUEL G FORD MEng, CFA Sam joined Aberforth in August 2019 and became a Partner in May 2021. He is responsible for the following sectors –Aerospace and Defence; Alternative Energy; Electronic and Electrical Equipment; Health Care Providers; Media; Medical Equipment and Services; Oil, Gas and Coal; Pharmaceuticals and Biotechnology; Technology Hardware and Equipment; and Telecommunications Equipment. As a fund manager on M&G Investments’ equity income team for the previous 5 years, he managed UK equity portfolios for a range of clients. Prior to that he was an investment manager with for 8 years.

JEREMY G A HALL MA (Hons) Jeremy joined Aberforth in October 2018 and became a Partner in January 2020. He is responsible for the following sectors – Banks; Beverages; Chemicals; Finance and Credit Services; Food Producers; Industrial Materials; Investment Banking and Brokerage Services; and Tobacco. Fund management roles with Abbey National Asset Managers and SVM Asset Management were followed by ten years with Cartesian Capital Partners LLP, where he was a partner and managed UK equity portfolios for a range of clients.

SONYA KIM, CFA Sonya joined Aberforth on 1 March 2021. She has a background in value investment and company analysis, having previously worked for Kiltearn Partners. Her earlier career includes time at Standard Life Investments and Baillie Gifford. Her academic background features a BA in Mathematics from New York University, followed by a Masters of Finance at Massachusetts Institute of Technology. Sonya is a CFA charterholder.

EUAN R MACDONALD BA (Hons) Euan joined Aberforth in May 2001 and became a Partner in May 2004. He is responsible for the following sectors – Automobiles & Parts; Consumer Services; General Industrials; Industrial Engineering; Leisure Goods; Life Insurance; Non‐life Insurance; Software & Computer Services; and Telecommunications Service Providers. Previously he was with Baillie Gifford for 10 years where he managed portfolios invested in small companies both in Continental Europe and the UK.

KEITH F MUIR BEng (Hons), CFA Keith joined Aberforth in March 2011 and became a Partner in May 2014. He is responsible for the following sectors – Construction and Materials; Household Goods and Home Construction; Mortgage Real Estate Investment Trusts; Real Estate Investment and Services; and Real Estate Investment Trusts. Previously he was an investment director with Standard Life Investments for 13 years and spent the last 9 years as a senior member of the smaller companies team with associated portfolio management responsibilities. Prior to that he gained experience with Southpac, Scottish Equitable and Murray Johnstone.

PETER R SHAW BCom (Hons), CA Peter joined Aberforth in April 2016 and became a Partner in May 2017. He is responsible for the following sectors – Industrial Support Services; Industrial Transportation; Personal Care, Drug and Grocery Stores; Personal Goods; Retailers; and Waste and Disposal Services. He joined from Kames Capital where he spent 15 years in equity fund management. Initially the experience gained was exclusively in the small company market. However, the subsequent integration of the small company team into the broader UK equity team led to a wider range of portfolio and research responsibilities.

CHRISTOPHER N WATT BSc (Hons) Christopher joined Aberforth in April 2016 and became a Partner in May 2017. He is responsible for the following sectors – Electricity; Gas, Water & Multi‐utilities; Industrial Metals & Mining; Precious Metals & Mining; and Travel & Leisure. He joined from Jupiter Asset Management where he spent 15 years in investment management. He was a member of the value team at Jupiter with responsibility for managing a number of UK equity mandates.

Aberforth Partners LLP 30 Glossary – Aberforth Funds

. Aberforth’s investment philosophy and putting it into practice is explained further at www.aberforth.co.uk/about‐Aberforth/ . Aberforth Standard Value refers to The Aberforth Smaller Companies Trust plc, Aberforth’s longest standing client. . Accumulation Units: units not receiving a cash payment representing income; rather, income will be included in the value of the units. . Active Share is calculated by summing the absolute differences between a portfolio’s weight in a stock and an index’s weight in a stock for all the stocks in the portfolio or index. The total is then divided by two to give a ratio between 0% and 100%. . AUM: Assets Under Management. . CAGR: Compound Annual Growth Rate is the annualised rate of growth over the specified time period. . Cancellation refers to the cancellation of units by the Trustee. . Discount is the amount by which the stockmarket price is lower than the Net Asset Value, or NAV, per Ordinary Share. The discount is normally expressed as a percentage of the NAV per Ordinary Share. The opposite of a discount is a premium. . DPS: Dividend Per Share. . ESG: Environmental, Social and Governance. . EV/EBITA: Enterprise Value divided by Earnings Before Interest, Tax and Amorisation. . EV/EBITDA: Enterprise Value divided by Earnings Before Interest, Tax, Depreciation and Amorisation. . Funds: ASCoT –The Aberforth Smaller Companies Trust plc; ASLIT –Aberforth Split Level Income Trust plc; AFUND –Aberforth UK Small Companies Fund. . Gearing is the use of debt to increase capital. . Issue refers to the issue of units by the Trustee. . Hurdle rate is the rate of capital growth per annum to return a stated amount per share at the planned winding‐up date. . Income Units entitle the holder to a cash distribution representing the net income attributable to that unit at each income allocation date. . IPO: . . Leverage is a measurement of the use of debt. . M&A: Mergers and Acquisitions. . Net Asset Value (ZDP Share) is the value of the entitlement to the ZDP Shareholders. . NSCI (XIC): The Numis Smaller Companies Index (excluding Investment Companies). . PE: The price‐earnings ratio (P/E ratio).

Aberforth Partners LLP Source: Aberforth Partners LLP 31 Glossary – Aberforth Funds

. Redemption Yield (Ordinary Share) is the annualised rate at which projected future income and capital cash flows (based on assumed future capital/dividend growth rates) is discounted to produce an amount equal to the share price at the date of calculation. . Redemption Yield (ZDP Share) is the annualised rate at which the total discounted value of the planned future payment of capital equates to its share price at the date of calculation. . Retained Revenue: the accumulated income that has not been distributed. . Rump is the Tracked Universe, adjusted to exclude the growth stocks. . Terminal NAV (Ordinary Share) is the projected NAV per Ordinary Share at the planned winding‐up date at a stated rate of capital growth in the company’s investment portfolio after taking into account the final capital entitlement of the ZDP Shares, future estimated costs charged to capital and estimated winding‐up costs. . Tracked Universe refers to those constituents of the NSCI (XIC) that Aberforth follows closely and whose financial characteristics are aggregated on internal systems. . Total return: capital appreciation plus reinvested dividends. . Turnover is calculated by summing the lesser of purchases and sales and dividing by the average portfolio value. . Unit: an equal portion representing part ownership of a unit trust fund. . Value style: the strategy by which all Aberforth’s portfolios are invested. . Value Premium: the relative out/(under) performance of the value investment style. . ZDP: Zero Dividend Preference shares are a share class that receive no dividends. Instead, holders receive a fixed capital payment on the redemption date.

Aberforth Partners LLP Source: Aberforth Partners LLP 32 Important information

Aberforth Partners LLP 33 Important information

. Throughout this presentation references to: SMALL COMPANIES mean constituents of the Numis Smaller Companies Index (Excluding Investment Companies) which are referred to as “NSCI (XIC)”; LARGE COMPANIES mean constituents of the FTSE All‐Share Index which are referred to as “FTAS”; total return means with dividends reinvested (prior to 2.7.97 with gross dividends reinvested thereafter with net dividends reinvested); and Aberforth clients’ portfolio characteristics use one of Aberforth’s “Standard Value” clients as representative unless otherwise stated. . Sources of data used in the presentation are detailed on the relevant pages. Source references to London Business School refer to Numis/Paul Marsh and Elroy Dimson – London Business School. . Source references to FTSE refer to FTSE International Limited (“FTSE”) © FTSE 2021. FTSE® is a trade mark of the London Group companies and is used by FTSE International Limited under licence. All rights in the FTSE indices and/or FTSE ratings vest in FTSE and/or its licensors. Neither FTSE nor its licensors accept any liability for any errors or omissions in the FTSE indices and/or FTSE ratings or underlying data and no party may rely on any FTSE indices, ratings and/or underlying data contained in this communication. No further distribution of FTSE data is permitted without FTSE’s express written consent. FTSE does not promote, sponsor or endorse the content of this communication. . The information contained in this presentation is for background purposes and is subject to updating, revision and amendment. This presentation does not contain, and does not purport to contain, a full description of the Fund or all the information investors should consider before investing in the Fund. All expressions of opinion are subject to change without notice and do not constitute advice and should not be relied upon as a promise or representation as to the future. This presentation may contain forward‐looking statements which are based on current expectations and assumptions and involve known and unknown risks and uncertainties that could cause actual results, performance or events to differ materially from those expressed or implied in such statements. Such forward‐looking statements are not a reliable indicator of future performance. This presentation is not intended as an offer, invitation or solicitation for the purchase or sale of any investment, nor is its issuance intended to give rise to any other legal relations whatsoever and this presentation must not be relied upon for the purposes of any investment decision. While this presentation has been prepared in good faith, no representation or warranty of any sort, express or implied, is made in respect of this presentation and no liability whatsoever is accepted by Aberforth Partners LLP or any other person in relation thereto.

Aberforth Partners LLP May 2021 34 Important information

. The information contained in this presentation does not constitute an offer of, or an invitation to apply for, securities in any jurisdiction where such an offer or invitation is unlawful or in which the person making such offer is not qualified to do so or to whom it is unlawful to make such an offer or solicitation. Specifically, any Fund(s) described will not be registered under the U.S. Securities Act of 1933, as amended, and may not be directly or indirectly sold or offered in the U.S.A. or any of its territories or possessions or areas subject to its jurisdiction or to or for the benefit of a U.S. person. . Persons resident in countries other than the UK should consult with their professional advisers as to whether they require any governmental or other consents in order to enable them to invest in any product described in these pages. . Aberforth Partners LLP is a limited liability partnership registered in England and Wales (registered number OC313353) and its registered office address is The Broadgate Tower, Primrose Street, London EC2A 2EW. It has its principal place of business at 14 Melville Street, Edinburgh EH3 7NS. . Aberforth Partners LLP is authorised and regulated by the Financial Conduct Authority.

Aberforth Partners LLP May 2021 35 Risk warnings

. Capital may be at risk as the value of investments may go down as well as up and is not guaranteed; therefore investors may not get back the amount originally invested. . Past performance is not a guide to future performance, nor a reliable indicator of future results or performance. . Investments in shares of smaller companies are generally considered to carry a higher degree of risk as the market for their shares is often less liquid than that for shares of larger companies, making shares of smaller companies more difficult to buy and sell. Smaller companies can also be expected, in comparison to larger companies, to have less mature businesses, a more restricted depth of management and a higher risk profile. . The performance of shares of smaller companies may be more volatile than the shares of larger companies over short time periods; therefore investors should regard such investments as long term. . Unless the performance of an investment meets or exceeds the rate of inflation, the real value of that investment will reduce. . Changes in economic or political conditions or other factors can substantially and potentially adversely affect the value of investments and, accordingly, the performance and prospects of the funds managed by Aberforth Partners LLP . . The market price of securities issued by the fund may fluctuate significantly and investors may not be able to sell their securities at or above the price at which they acquired them. Securities markets have in the past experienced extreme volatility that has often been unrelated to the operating performance of particular companies. Any broad market fluctuations may adversely affect the market price of the securities issued by the fund. . There can be no guarantee that the investment objective of the fund will be achieved or provide the returns sought by the fund. . An investment trust is a public limited company, the shares of which are traded on the main market of the . Investment trusts are not authorised and regulated by the Financial Conduct Authority. . An investment trust is a closed‐ended company and its shareholders will have no right to have their shares redeemed or repurchased by the company at any time. Accordingly, the ability of shareholders to realise any value in respect of their shares will be dependent on the existence of a liquid market in the shares and the market price of the shares. The shares may trade at a discount to their net asset value.

Aberforth Partners LLP May 2021 36 Risk warnings

. An investment trust may only pay dividends to the extent that it has distributable profits available for that purpose. A reduction in the income from an investment trust's portfolio could adversely affect the yield, if any, on its shares. . Investment trusts may borrow money in order to make further investments. This is known as “gearing”. The effect of gearing can enhance returns to shareholders in rising markets but will have the opposite effect on returns in falling markets. . The Ordinary Shares of Aberforth Split Level Income Trust plc are geared by the Zero Dividend Preference Shares of the company and rank for repayment of capital after the Zero Dividend Preference Shares and any creditors of the company. A positive net asset value for those Ordinary Shares will be dependent upon the company's assets being sufficient to meet the prior capital entitlements of the holders of the Zero Dividend Preference Shares. The Ordinary Shares should therefore be regarded as carrying above average risk. The Zero Dividend Preference Shares are not a protected or guaranteed investment. In particular, should the company be wound up prior to its planned winding up date, holders of Zero Dividend Preference Shares would only receive their accrued capital entitlement to the date of winding up which would be less than the final anticipated capital entitlement of those shares. . Tax legislation and the levels of relief from taxation can change at any time. Any change in the tax status of a Fund or in tax legislation could affect the value of the investments held by the Fund or affect its ability to provide returns to its investors. The tax treatment of an investment, and any dividends received, will depend on the individual circumstances of the investor and may be subject to change in the future. If investors are in any doubt as to their tax position, they should consult their professional adviser. . An investment in the fund is only suitable for investors who are capable of evaluating the merits and risks of such an investment and who have sufficient resources to be able to bear any losses which may arise from such an investment (which may be equal to the whole amount invested). Such an investment should be regarded as long term in nature and complementary to existing investments in a range of other financial assets and should not form a major part of an investment portfolio.

Aberforth Partners LLP May 2021 37