Mirrabooka Investments Ltd · ASX:MIR
Mirrabooka Investments — Shareholder Meeting (October 2018)
29 slides from Mirrabooka Investments's shareholder meeting presentation, Oct 9, 2018
Slide 1: Mirrabooka 2018 Annual General Meeting Presentation (ASX cover letter)
9 October 2018 For personal use only The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Mirrabooka Investments Limited 2018 Annual General Meeting Presentation Dear Sir / Madam The following presentation w
Slide 2: Annual General Meeting 2018 Presentation
For personal use only Annual General Meeting 2018 Presentation
Slide 3: Disclaimer
Disclaimer Mirrabooka Investments Limited, its related entities and each of their respective directors, officers and agents For personal use only (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: Our Investment Approach
For personal use only Our Investment Approach Annual General Meeting 2018
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 Annual General Meeting 2018
Slide 6: Management of the Portfolio
Management of the Portfolio For personal use only Annual General Meeting 2018
Slide 7: Our Results
For personal use only Our Results Annual General Meeting 2018
Slide 8: Portfolio Performance – Per Annum Returns to September 18
Portfolio Performance – Per Annum Returns to 30 September 2018 For personal use only Assumes an investor can take full advantage of franking credits. Annual General Meeting 2018
Slide 9: Five Year Summary
Five Year Summary For personal use only Management expense ratio of 0.60% Annual General Meeting 2018
Slide 10: Cumulative Share Price Return Including Franking Credits
Cumulative Share Price Return Including Franking Credits – 10 Years to 30 September 2018 For personal use only Assumes an investor can take full advantage of franking credits. Annual General Meeting 2018
Slide 11: Dividends have been a significant component of shareholder returns
Dividends have been a significant component of shareholder returns – 10 Years to 30 September 2018 For personal use only Franking Credit Return* Dividend Return Share Price Return * Assumes an investor can take full advantage of franking credits. Annual General Meeting 2018
Slide 12: Share Price remains at a premium to Net Asset Backing
Share Price remains at a premium to Net Asset Backing, although well down from high point of over 25% For personal use only Annual General Meeting 2018
Slide 13: Tax Legislation – Franking Credits
Tax Legislation – Franking Credits • As previously highlighted the Federal Government was considering retrospective legislation For personal use only to prevent Investment Companies claiming the lower company tax rate – this has now been legislated. • The dividends, paid in August 2017, February 201
Slide 14: Labor Party Policy on ending refundability of franking credits – our response
Labor Party Policy on ending refundability of franking credits – our response • Mirrabooka has provided a template letter on its website for shareholders to write to their For personal use only parliamentary representatives - personal examples are likely to have the biggest impact on local members.
Slide 15: Market Settings
For personal use only Market Settings Annual General Meeting 2018
Slide 16: Small and Mid Cap Industrial Sector Valuations Remain High
Small and Mid Cap Industrial Sector Valuations Remain High Small Industrials Price Earnings Ratio Mid Cap Industrials Price Earnings Ratio For personal use only Source: FactSet. Source: FactSet. Annual General Meeting 2018
Slide 17: High growth firms now trade above 30x forward P/E
High growth firms now trade above 30x forward P/E, in line with the peak of the dotcom bubble ASX 200 Valuation dispersion For personal use only Source: FactSet, Goldman Sachs Global Investment Research Annual General Meeting 2018
Slide 18: Altium, Afterpay, Appen and Wisetech drove small industrial returns
In particular Altium, Afterpay, Appen and Wisetech (AAAW) drove a very large part of small industrial returns in the August reporting season P/E valuation For personal use only Source: FactSet. Annual General Meeting 2018
Slide 19: Divergence of Year Returns to September 2018 Across Sectors
Divergence of 1 Year Returns* to 30 September 2018 Across Sectors – ‘Growth’ Sectors at Elevated Levels For personal use only *Includes dividends Annual General Meeting 2018
Slide 20: Investors have been chasing growth – high PE stocks outperformed
It is a market where investors have been chasing growth – high PE stocks have outperformed low PE names by 25% year to date For personal use only Source: FactSet, UBS. Annual General Meeting 2018
Slide 21: Our Portfolio
For personal use only Our Portfolio Annual General Meeting 2018
Slide 22: Portfolio at September 2018 (Excluding Cash)
Portfolio at 30 September 2018 (Excluding Cash) Diversification of the Portfolio Top 10 Holdings For personal use only – 73 holdings in total Rank Company % of Portfolio 1 Lifestyle Communities 3.9% 2 Qube Holdings 3.6% 3 Mainfreight 3.5% 4 Alumina* 2.9% 5 Seek* 2.6% 6 IRESS * 2.5% 7 TPG Telecom 2.5
Slide 23: Portfolio at September 2018 (Excluding Cash) continued
Portfolio at 30 September 2018 (Excluding Cash) continued Diversification of the Portfolio Next 10 Holdings For personal use only – 73 holdings in total Rank Company % of Portfolio 11 Resmed* 2.2% 12 Webjet 2.1% 13 CYBG Plc 2.1% 14 AUB Group 2.1% Washington H. Soul Pattinson 15 2.1% and Co. 16 Brick
Slide 24: Featured Holdings – Breville Group
Featured Holdings – Breville Group What we like: For personal use only • Globally recognised premium kitchen appliance brand with low penetration in large overseas markets. • Operating cost savings being re-invested Share in sales and marketing and R+D – drives price faster revenue growth. • Strong
Slide 25: Featured Holdings – Brickworks
Featured Holdings – Brickworks What we like: For personal use only • Discount to underlying assets has widened to approximately 30%. • Holding in Soul Pattinson represents the majority of the asset base – current value Share exceeds the share price of Brickworks. price • Soul Pattinson has a success
Slide 26: Featured Holdings – Event Hospitality
Featured Holdings – Event Hospitality What we like: For personal use only • Investment is underpinned by $2 billion of property holdings. • Valuation of operating earnings undemanding – market cap $2.6 billion. Share price • Long term track record of adding value to their property – hotel developmen
Slide 27: Major Portfolio Activity – Financial Year to Date
Major Portfolio Activity – Financial Year to Date Complete Sales For personal use only Buying New Annual General Meeting 2018
Slide 28: Closing Comments
Closing Comments For personal use only • High quality stocks in Mirrabooka's universe continue to trade at an elevated premium to historic levels. • There is likely to be increased future market volatility, particularly in smallcap stocks. • Mirrabooka has cash available. • We will remain patient wi
Slide 29: Mirrabooka Investments Limited
* ¢- MIRRABOOKA * Investments Limited
Mirrabooka Investments — Shareholder Meeting (October 2018) on 6ix