Aberforth Partners LLP Presentation to ASCoT Investors June 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 Managers Limited is authorised and regulated by the Financial Conduct Authority Aberforth Partners update

. Over 30 years of

─ 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 31 May

CAGR 17 months to ASCOT Total Return % YTD 1 Year May 2021 5 Year 10 Year inception FTSE All‐Share 10.9 23.1 0.0 7.0 6.3 8.3 FTSE 250 (XIC) 14.0 38.7 4.3 7.6 9.3 11.6 FTSE SmallCap (XIC) 27.4 69.3 29.5 11.1 11.7 8.7 NSCI (XIC) 19.4 54.1 14.3 9.7 10.2 10.8 ASCOT NAV 34.4 80.0 13.7 10.1 10.7 13.0 ASCOT share price 24.2 70.4 3.8 10.4 11.1 12.7 AFUND 31.7 73.6 11.8 9.6 10.3 * Inception date for ASCoT was 10/12/1990 * AFUND from inception 20/03/1991 12.3 NSCI (XIC) from AFUND inception 20/03/1991 10.3

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

. ASCoT’s 30 years since inception: 2.2% per annum out‐performance

. 17 month period to May underlines the cyclical skew of the portfolio

Aberforth Partners LLP Source: Aberforth Partners LLP; FTSE; Business School. Data as at 31 May 2021. 2 Factor effects on 17 month performance to 31 May 2021

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

. Factors also affect the performance of our portfolios

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

17M to May 2021 10M to October 2020 7M to May 2021 Total return relative The full period The pandemic in full swing The vaccine recovery Share prices fall Share prices rebound

ASCoT / NSCI (XIC) ‐1% ‐19% +23%

Style factor: Value / growth within NSCI (XIC) ‐4% ‐24% +26% Consistent value philosophy    Size factor: Smaller smalls / larger smalls +24% +5% +18% Portfolio over‐weight smaller smalls    Geographical factor: Domestics / overseas within NSCI (XIC) ‐5% ‐15% +12% 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 31 May 2021. 3 Winners and losers –5 months to 31 May 2021

. Attribution is the contribution to portfolio’s relative performance in basis points

10 Best winners Total return Attribution 10 Worst losers Total return Attribution Rank Company(%) (bp) Rank Company (%) (bp) 1Reach 69 147 1Provident Financial ‐22 ‐102 2SIG 97 116 2Investec 66 ‐48 3 Wincanton 74 111 3Gamesys Group 66 ‐44 4Senior 78 73 4 70 ‐43 5International Personal Finance 62 64 5RM ‐3 ‐30 6 Lookers 224 63 6Argo Blockchain 388 ‐25 7 Bakkavor Group 74 60 7Morgan Advanced Materials 9 ‐24 8Spire Healthcare Group 58 55 8Castings 1 ‐22 9Just Group 57 54 9 Group 66 ‐21 10 Vitec Group 48 52 10 De La Rue 8 ‐21

Not held in portfolio

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School; Portfolio Evaluation. Data as at 31 May 2021. 4 Purchases and sales –5 months to 31 May 2021

Top 10 Purchases Top 10 Sales Rank Company £m Rank Company £m 1Centamin 11.4 1RWS Holdings 31.1 2PageGroup 10.5 2Restaurant Group 22.0 3 Genel Energy 8.7 3RHI Magnesita 15.5 4C&C Group 8.6 4Halfords Group 15.7 5Rathbone Brothers 8.2 5 Mitchells & Butlers 15.5 6Stagecoach Group 6.5 6 Forterra 12.2 7Foxtons Group 6.1 7 Future 7.2 8City Of London Investment Group 5.4 8Spire Healthcare Group 6.4 9 Group 5.0 9Wincanton 4.4 10 National World 4.6 10 Reach 3.6 New Holding or Total Sales . 5 month annualised turnover is 24% . Market recovery allows “value roll” to recommence . “Value roll”: sale of relatively expensive stocks & reinvestment into cheaper stocks ─ In the 5 months, average 2023 EV/EBITA of sales 10.8x versus 7.2x for purchases

Aberforth Partners LLP Source: Aberforth Partners LLP. Data as at 31 May 2021. 5 Resilient 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 . The earnings of the portfolio fell sharply owing to its cyclical exposure ─ Despite a terrible year for profits, the results do suggest 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 profits probably comes in 2023

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

Portfolio categorised by holding's most recent dividend action 40

35 Other includes 30 companies that 25 passed dividends in 2020, but were companies 20

of able to return to

36 15 the register

Number 22 10

5 10 6 6 0 down nil payer no change increase other

. The results season added to evidence of a nascent dividend recovery ─ Driven by economic recovery and companies returning to the dividend register ─ As nil payers resume dividends, income growth should be enhanced . However, not all holdings are anticipated to return to pre‐pandemic DPS ─ The managers continue to engage with boards on factors that influence dividends

Aberforth Partners LLP Source: Aberforth Partners LLP. Data as at 31 May 2021. 7 Resilient balance sheets –net debt/EBITDA . 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

Leverage profile of ASCOT and the Tracked Universe 55%

50% X 45% X X X 40% X 35% Portfolio

&

30% X Universe 25%

Tracked X

of 20%

X value 15% by

% 10% X

5%

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

Tracked position at 31/05/2021 Tracked 2022 Basis Tracked 2023 Basis X ASCOT position at 31/05/2021 X ASCOT 2022 Basis X ASCOT 2023 Basis

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School. Data as at 31 May 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; FTSE; London Business School. Data as at 31 May 2021. 9 Prospects for value after seven months of the rally

. ASCoT 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) +30% 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 31 May 2021. 10 Portfolio categorisation

. Over 40% of portfolio holdings still below their pre‐pandemic prices . 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 59% 41% above their end‐2019 prices below their end‐2019 prices

Total Return since end‐2019 41% Total Return since end‐2019 ‐27% Total Return YTD 39% Total Return YTD 30% Weighted upside 37% Weighted upside 48% YTD Net purchases/(sales) (£14m) YTD Net purchases/(sales) £57m Reach 4.0% SIG 2.7% Wincanton 2.7% FirstGroup 2.1% 2.5% Senior 2.1% Vitec Group 2.4% International Personal Finance 2.0% TI Fluid Systems 2.4% 2.0% Morgan Advanced Materials 2.3% Rank Group 1.9% Just Group 2.3% Provident Financial 1.8% 2.2% DFS Furniture 1.7% Robert Walters 2.2% RPS Group 1.4% Holdings 2.1% EnQuest 1.3% … see appendix for full portfolio … see appendix for full portfolio

Aberforth Partners LLP Source: Aberforth Partners LLP; Portfolio Evaluation. Data as at 31 May 2021. 11 Higher bond yields tend to help the value style

Value minus Growth performance within the NSCI (XIC), three month periods 20.0%

15.0% Yields: 2.0% to 3.2% Yields: 0.5% to 1.7% Yields: 1.5% to 3.0% 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: April & May 21 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 31 May 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 . The vaccines have heralded a welcome revival

19% The Value Premium: NSCI (XIC) value component vs NSCI (XIC) * Index 870 – since Index inception +3.1% p.a. – since **ASCOT’s inception +1.5% p.a. 17%

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; **ASCOT’s inception date: 31/12/1990 used as opposed to 10/12/1990.

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School. Data as at 31 May 2021. 13 Morningstar style box categorisation . Small cap fund positioning by style (x‐axis) remain highly polarised ─ No meaningful shift in the growth consensus

*Aberforth Investment Trusts Mid Cap ITs Size Unit Trusts

* Aberforth

Style

Aberforth Partners LLP *Aberforth “Standard Value” portfolio. Source: Aberforth Partners LLP; Morningstar. Data available as at 7 June 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 19.4x 22.2x 19.0x 16.6x 18% 42 £995m

The rump 14.9x 12.9x 10.2x 8.6x 78% 198 £1,038m

Tracked Universe 15.5x 13.9x 11.1x 9.4x 97% 240 £1,030m

ASCOT 14.0x 11.0x 9.1x 7.7x 81 £709m

Relative to Tracked (%) 90 79 82 82

. 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 31 May 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 45% 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 agreed NSCI (XIC) M&A transactions announced since October 2020

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

. Portfolio weighted upside 44% ─ 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 9.7x and 12.8x at target ─ The upside does not assume any “value roll” . Gearing: 4.7% geared at end May . Discount: 10.3% at the end of May . Not a forecast!

Aberforth Partners LLP Source: Aberforth Partners LLP; FTSE; Bloomberg. Data as at 31 May 2021. 17 Aberforth Smaller Companies Trust

. Gearing ─ Consistent with its tactical gearing approach, ASCoT entered 2020 ungeared ─ The pandemic offered the opportunity to gear for only the fourth time in 30 years: £76.5m of the £130m RBSI facility drawn at 31 May 2021 ─ Gearing 4.7% at 31 May 2021 . Discount moves year‐to‐date ─ Average of Morningstar’s UK small company trusts from 2.9% to 5.3% ─ ASCoT from 3.2% to 10.3% . Buy backs ─ 100,000 shares bought in YTD . Dividend ─ 2020 ordinary dividend +4.1% year‐on‐year to 33.3p ─ Revenue reserves at 31 December 2020 56.7p – c.1.7 years

Aberforth Partners LLP Source: Aberforth Partners LLP; Morningstar. Data as at 31 May 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” . ASCoT 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 59% 41% above their end‐2019 prices below their end‐2019 prices

Total Return since end‐201941% Total Return since end‐2019 ‐27% Total Return YTD 39% Total Return YTD 30% Weighted upside 37% Weighted upside 48% YTD Net purchases/(sales)(£14m) YTD Net purchases/(sales) £57m Reach 4.0% Charles Stanley Group 1.3% SIG 2.7% Card Factory 0.9% Wincanton 2.7% PageGroup 1.2% FirstGroup 2.1% Hostelworld Group 0.9% Redde Northgate 2.5% Mitchells & Butlers 1.2% Senior 2.1% Harbour Energy 0.8% Vitec Group 2.4% Lookers 1.0% International Personal Finance 2.0% U and I Group 0.8% TI Fluid Systems 2.4% Kenmare Resources 1.0% Rathbone Brothers 2.0% Foxtons Group 0.8% Morgan Advanced Materials 2.3% Xaar 1.0% Rank Group 1.9% Hyve Group 0.7% Just Group 2.3% Zegona Communications 0.9% Provident Financial 1.8% Go‐Ahead Group 0.7% Vectura Group 2.2% Capital 0.9% DFS Furniture 1.7% Hollywood Bowl Group 0.7% Robert Walters 2.2% City Of London Investment Group 0.8% RPS Group 1.4% STV Group 0.7% Brewin Dolphin Holdings 2.1% Dialight 0.8% EnQuest 1.3% 0.7% Vesuvius 2.0% Topps Tiles 0.7% Wilmington 1.3% 0.5% Bakkavor Group 2.0% Smiths News 0.7% Headlam Group 1.3% Pharos Energy 0.5% Group 1.9% Alfa Financial Software Holdings 0.7% McKay Securities 1.3% Speedy Hire 0.5% Eurocell 1.9% Gem Diamonds 0.6% Anglo Pacific Group 1.3% Genel Energy 0.4% Holdings 1.9% Centaur Media 0.4% C&C Group 1.1% PayPoint 0.4% TT Electronics 1.7% Hansard Global 0.4% RM 1.1% McColl's Retail Group 0.2% De La Rue 1.7% Babcock International Group 0.3% Stagecoach Group 1.0% Gulf Marine Services 0.2% Medica Group 1.6% McBride 0.3% Castings 1.0% REA Holdings 0.1% Keller Group 1.5% RHI Magnesita 0.1% Forterra 1.0% CMC Markets 1.5% Halfords Group 0.1% 1.3%

Aberforth Partners LLP Source: Aberforth Partners LLP; Portfolio Evaluation. Data as at 31 May 2021. 22 Top 20 holdings

Total Rank Company Activity portfolio (%) 1Reach UK newspaper publisher 4.0 2 Wincanton Logistics 2.7 3 SIG Specialist building products distributor 2.7 4 Redde Northgate Van rental 2.5 5Vitec Group Photographic & broadcast accessories 2.4 6TI Fluid Systems Automotive parts manufacturer 2.4 7Morgan Advanced Materials Manufacture of carbon & ceramic materials 2.3 8Just Group Individually underwritten annuities 2.3 9Vectura Group Inhaled pharmaceuticals ‐ respiratory specialism 2.2 10 Robert Walters Recruitment 2.2 11 Brewin Dolphin Holdings Private client fund manager 2.1 12 FirstGroup Bus & rail operator 2.1 13 Senior Aerospace & automotive engineering 2.1 14 Vesuvius Metal flow engineering 2.0 15 International Personal Finance Home credit provider 2.0 16 Rathbone Brothers Private client fund manager 2.0 17 Bakkavor Group Food manufacturer 2.0 18 Rank Group Multi‐channel gaming operator 1.9 19 Spire Healthcare Group Private healthcare provider 1.9 20 Eurocell Manufacture of UPVC building products 1.9 Top 20 45.7 21 ‐ 30 16.1 31 ‐ 81 38.2 Actively managed portfolio with an active share of 74% 100.0

Aberforth Partners LLP Source: Aberforth Partners LLP. Data as at 31 May 2021. 23 ASCoT – sector exposures

NSCI (XIC) ASCoT Sector Significant holdings weight weight

Technology 5.7% 3.7% TT Electronics

Telecommunications 2.0% 0.9%

Health Care 3.6% 5.7% Vectura Group, Spire Healthcare Group

Brewin Dolphin Holdings, International Personal Finance, Just Group, Financials 14.6% 15.1% Provident Financial, Rathbone Brothers

Real Estate 9.1% 2.9%

DFS Furniture, FirstGroup, Reach, TI Fluid Systems, Rank Group, Crest Nicholson Consumer Discretionary 21.9% 27.5% Holdings

Consumer Staples 4.7% 3.7% Bakkavor Group

De La Rue, Eurocell, Morgan Advanced Materials, Robert Walters, Senior, Vesuvius, Industrials 25.0% 32.7% Vitec Group, Wincanton, SIG, Redde Northgate

Basic Materials 6.7% 4.6%

Energy 4.0% 3.2%

Utilities 2.7% 0.0%

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School. Data as at 31 May 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 Gearing

2,000 25.0% 1,900 Gearing [RHS] NSCI (XIC) Total Return [LHS] 1,800 20.0% 1,700Recession 1,600 LTCM GFC Covid‐19 1,500& recovery 15.0% 1,400

1,300 1992

Feb 1,200

10.0% 29 1,100 at

% 1,000 100

to 900 5.0% 800 Gearing rebased 700 (XIC)

600 0.0% 500 NSCI 400

300 ‐5.0% 200 100 Old economy ‐ ‐10.0%

. Geared for the fourth time in 30 years: £76.5m debt drawn at 31 May

Aberforth Partners LLP Source: Aberforth Partners LLP; London Business School. Data as at 31 May 2021. 26 ASCoT – share price, discount and buy‐backs

Monthly premium/(discount) and share price: last 13 years 0 1,600

‐3 1,400

‐6 1,200

‐9 1,000 (GBp)

‐12 price 800 ‐15 Share Premium/(discount)

% 600 ‐18

‐21 400

‐24 200

ASCoT ORD share price [RHS] ASCoT [LHS] AIC UK Smaller Companies sector (weighted average) [LHS]

ASCoT buy backs ‐ cumulative value bought back

120.0 20.0%

100.0 15.0% 80.0

60.0 10.0%

40.0 5.0% 20.0

‐ 0.0% 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021

Cumulative value bought back at year ends and 30 April 2021 (£m) [LHS] Weighted Avg Discount [RHS]

Aberforth Partners LLP Source: Aberforth Partners LLP; Morningstar. Data as at 31 May 2021. 27 ASCoT’s dividend history

Dividend growth (1991 – 2020): 7.1% per annum 40 7.75

4.00 Since the global financial crisis (2008): 4.8% per annum 6.70

35 33.3 32.0

2.75 30.3 30 2.75 28.8 27.4 26.0 24.8 (p) 25 23.5 22.3 20.8 Dividend

20 19.0 19.0 19.0

15.2

15 13.4 11.9 11.0 10.1 9.1 9.5 10 8.7 7.6 7.1 7.3

5.1 5.5 4.5 4.6 4.6 4.6 5

0 199119921993199419951996199719981999200020012002200320042005200620072008200920102011201220132014201520162017201820192020 1st Interim Final/2nd Interim Special

Aberforth Partners LLP Source: Aberforth Partners LLP. Data as at 31 May 2021. 28 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 = 4.7% N/A Structural (ZDPs) = 22.5%

Size (AUM) £1,594m £214m £239m

Number of investee companies 80 80 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 31 May 2021. 29

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 31 May 2021 actual was 4.7% Gearing . potential for up to £130m or 8.5%

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 31 May 2021. 30 Unit trust

Aberforth UK Small Companies Fund (AFUND)

As 31 May 2021 Issue Price Cancellation Price Units in Issue

Accumulation Units £322.50 £315.90 402,363 Income Units £229.87 £225.17 380,298

Limited issue fund with Accumulation and Income units . value at cancellation price: £213m . no entry or exit charged; dealing spread 2.1% (mid‐basis) . yield on Income units: 0.7% . 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 . 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 31 May 2021. 31 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 31 May 2021. 32 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; 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 . He was a member of the value team at Jupiter with responsibility for managing a number of UK equity mandates.

Aberforth Partners LLP 33 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: . . 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 , 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: Initial Public Offering. . 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 34 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 35 Important information

Aberforth Partners LLP 36 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 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(s) or all the information investors should consider before investing in the Fund(s). 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 Aberforth Unit Trust Managers Limited or any other person in relation thereto.

Aberforth Partners LLP January 2021 37 Important information

. This presentation is intended only for persons who satisfy the requirements of Article 19 (Investment Professionals) and Article 49 (High Net Worth Companies etc.) of the Financial Services and Markets Act 2000 (Financial Promotion) Order 2005 and may not be copied or passed to any other person. It in no way represents investment advice. No representations or warranties are given by Aberforth Partners LLP, or any other party, as to the data and other information contained herein. . 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 Unit Trust Managers Limited is a company registered in (registered number 124771) and its registered office address is 14 Melville Street, Edinburgh EH3 7NS. Aberforth Unit Trust Managers Limited is wholly owned by Aberforth Partners LLP.

For use by Professional Investors only, not to be relied upon by retail investors.

Aberforth Partners LLP January 2021 38 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 investment trusts, unit trusts and other funds managed by Aberforth Partners LLP or Aberforth Unit Trust Managers Limited (the "Funds"). . The market price of securities issued by a 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 a Fund. . There can be no guarantee that the investment objective of a 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 London Stock Exchange. 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 January 2021 39 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. . The dealing spread of Aberforth UK Small Companies Fund, which represents the difference between the buying and selling prices, will have an impact on the realisable value of any investment made in this Fund, particularly in the short term. To mitigate the impact of capital erosion, investors should regard investments in this Fund as long term. . 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 a 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 January 2021 40