Mirrabooka Investments Ltd · ASX:MIR
Mirrabooka Investments — Investor Presentation (March 2017)
24 slides from Mirrabooka Investments's investor presentation, Mar 17, 2017
Slide 1: Information Meetings – Presentation
17 March 2017 For personal use only The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Announcement Mirrabooka Investments Limited Information Meetings – Presentation Dear Sir / Madam Please find attached the presen
Slide 2: Shareholder Meetings March 2017
For personal use only SHAREHOLDER MEETINGS MARCH 2017
Slide 3: Disclaimer
DISCLAIMER For personal use only Mirrabooka Investments Limited, its related entities and each of their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good faith. However, no warranty (express or implied) is made as t
Slide 4: Overview of Mirrabooka
For personal use only OVERVIEW OF MIRRABOOKA SHAREHOLDER MEETINGS MARCH 2017
Slide 5: Mirrabooka's Investment Approach
MIRRABOOKA’S INVESTMENT APPROACH Small and Mid Cap listed companies in Australia and New Zealand For personal use only What we look for: 1 Strong industry position 3 Good management 2 Quality balance sheet 4 Good cash generation ✓ Quality companies, invest in growing businesses ✗ Avoid speculative p
Slide 6: Management of the Portfolio
MANAGEMENT OF THE PORTFOLIO ✓ Ensure top 20 holdings do not dominate the portfolio. For personal use only ✓ Take small starting positions and add in weakness. ✓ Sell when there is an adverse change from original investment case. ✓ Reduce when valuations become over stretched. ✓ Diversification allow
Slide 7: Half-Year Financial Summary – December 2016
HALF-YEAR FINANCIAL SUMMARY – 31 DECEMBER 2016 For personal use only SHAREHOLDER MEETINGS MARCH 2017
Slide 8: Share Price Return Including Dividends and Benefit of Franking Credits
SHARE PRICE RETURN INCLUDING DIVIDENDS AND BENEFIT OF FRANKING CREDITS* For personal use only * Assumes the reinvestment of dividends. This chart calculates the benefit of franking credits at the time dividends are paid for both Mirrabooka and the index. In practice there is a timing difference betw
Slide 9: Share Price Remains at a High Premium to Net Asset Backing
SHARE PRICE REMAINS AT A HIGH PREMIUM TO NET ASSET BACKING For personal use only SHAREHOLDER MEETINGS MARCH 2017
Slide 10: Market and the Portfolio
For personal use only MARKET AND THE PORTFOLIO SHAREHOLDER MEETINGS MARCH 2017
Slide 11: Small and Mid Caps Have Underperformed This Year
THE SMALL AND MID CAPS HAVE UNDERPERFORMED THIS YEAR FOLLOWING A PERIOD OF STRONG RETURNS For personal use only Source: FactSet SHAREHOLDER MEETINGS MARCH 2017
Slide 12: Industrial Companies Have Underperformed Resources
INDUSTRIAL COMPANIES MANY OF WHICH HAVE BEEN TRADING ON VERY HIGH P/E’S HAVE UNDERPERFORMED RESOURCES For personal use only Source: FactSet SHAREHOLDER MEETINGS MARCH 2017
Slide 13: Valuations Have Fallen and Large Cap Managers Moving Away from Smaller Companies
VALUATIONS HAVE FALLEN AND MANY LARGE CAP FUND MANAGERS ARE MOVING AWAY FROM SMALLER COMPANIES Small Ordinaries Price Earnings Ratio Mid Cap Price Earnings Ratio For personal use only Source: FactSet Source: FactSet SHAREHOLDER MEETINGS MARCH 2017
Slide 14: Mirrabooka's Portfolio – Per Annum Returns to February 17
MIRRABOOKA’S PORTFOLIO – PER ANNUM RETURNS TO 28 FEBRUARY 2017, INCLUDING FRANKING CREDITS* For personal use only After tax paid and expenses. *Assumes an investor can take full advantage of the franking credits. SHAREHOLDER MEETINGS MARCH 2017
Slide 15: Portfolio at February 2017 (Excluding Cash)
PORTFOLIO AT 28 FEBRUARY 2017 (EXCLUDING CASH) Diversification of the Portfolio Top 10 Holdings For personal use only – 74 holdings in total Rank Company % of Portfolio 1 Lifestyle Communities 4.1% 2 Qube Holdings* 3.3% 3 Mainfreight 3.0% 4 IRESS* 3.0% 5 ALS* 2.7% 6 Treasury Wine Estates* 2.7% 7 Hea
Slide 16: Portfolio at February 2017 (Excluding Cash) continued
PORTFOLIO AT 28 FEBRUARY 2017 (EXCLUDING CASH) continued Diversification of the Portfolio Next 10 Holdings For personal use only – 74 holdings in total Rank Company % of Portfolio 11 Alumina* 2.3% 12 Challenger* 2.3% 13 Perpetual* 2.2% 14 Freedom Foods Group 2.2% 15 Nufarm 2.1% 16 Incitec Pivot* 2.1
Slide 17: Featured Holding
For personal use only FEATURED HOLDING Share price What we like: • Experienced management team with significant skin in the game. • Consistently growing life insurance market share: independence resonating with financial advisers. • Free of poorly written legacy policies that are impacting larger co
Slide 18: Major Positive Contributors by Change in Portfolio Value
MAJOR POSITIVE CONTRIBUTORS BY CHANGE IN PORTFOLIO VALUE – TO 28 FEBRUARY 2017 For personal use only + Treasury Wine Estates + Lifestyle Communities + ASG Group + Alumina + Cover-More Group SHAREHOLDER MEETINGS MARCH 2017
Slide 19: Major Portfolio Activity – Financial Year to Date
MAJOR PORTFOLIO ACTIVITY – FINANCIAL YEAR TO DATE Buying: Selling: For personal use only new holding new holding takeover complete sale complete sale SHAREHOLDER MEETINGS MARCH 2017
Slide 20: Downside Risks in Small Companies Are Elevated
AFTER A PROLONGED PERIOD OF HIGH VALUATIONS, DOWNSIDE RISKS IN SMALL COMPANIES ARE ELEVATED For personal use only Our investment process prevented us from investing in: • Slater and Gordon • Bellamy’s • Estia • Murray Goulburn • Surfstitch SHAREHOLDER MEETINGS MARCH 2017
Slide 21: But We Don't Get Everything Right
For personal use only BUT WE DON’T GET EVERYTHING RIGHT Current holdings that have suffered significant recent share price falls: • Isentia • OFX Group • Sirtex • Vocus Communications • GBST Note: These stocks represent approximately 4% of the portfolio SHAREHOLDER MEETINGS MARCH 2017
Slide 22: Outlook
For personal use only OUTLOOK SHAREHOLDER MEETINGS MARCH 2017
Slide 23: Outlook
OUTLOOK For personal use only • Despite the fall across a number of stocks value is still difficult to find. • Will continue to utilise buy and write activity to generate additional income. • Mirrabooka has a strong cash position should significant corrections occur. SHAREHOLDER MEETINGS MARCH 2017
Slide 24: For personal use only
Pa ¢-. % MIRRABOOKA Investments Limited
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