Mirrabooka Investments Ltd · ASX:MIR
Mirrabooka Investments — Shareholder Meeting (October 2015)
26 slides from Mirrabooka Investments's shareholder meeting presentation, Oct 5, 2015
Slide 1: 2015 Annual General Meeting Presentation
5 October 2015 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 2015 Annual General Meeting Presentation Dear Sir / Madam The following presentation w
Slide 2: Annual General Meeting 2015
For personal use only ANNUAL GENERAL MEETING 2015
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 ANNUAL GENERAL MEETING 2015
Slide 5: Mirrabooka has a different profile from the large cap sector
MIRRABOOKA HAS A DIFFERENT PROFILE FROM THE LARGE CAP SECTOR – THIS CAN BE DIFFICULT FOR RETAIL SHAREHOLDERS TO REPLICATE For personal use only Selected Industry Exposures ANNUAL GENERAL MEETING 2015
Slide 6: How risk is managed within the portfolio
HOW RISK IS MANAGED WITHIN THE PORTFOLIO • Limit financial risk by focusing on balance sheet strength. For personal use only • Invest in some companies with high ownership by those running the business. • Take small starting positions and add in any weakness. • Sell when there is an adverse change f
Slide 7: Mirrabooka's portfolio per annum returns to August 2015
MIRRABOOKA’S PORTFOLIO – PER ANNUM RETURNS TO 31 AUGUST 2015 INCLUDING FRANKING CREDITS For personal use only After tax and expenses. Ignores benefits of LIC tax credits. ANNUAL GENERAL MEETING 2015
Slide 8: Cumulative portfolio growth including franking credits
CUMMULATIVE PORTFOLIO GROWTH INCLUDING FRANKING CREDITS* SHOWS THE BENEFIT OF COMPOUND RETURNS - 10 YEARS TO 31 AUGUST 2015 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
Slide 9: Full Year Financial Summary
FULL YEAR FINANCIAL SUMMARY For personal use only ANNUAL GENERAL MEETING 2015
Slide 10: Earnings per share and dividends per share
EARNINGS PER SHARE AND DIVIDENDS PER SHARE For personal use only ANNUAL GENERAL MEETING 2015
Slide 11: The Portfolio
For personal use only THE PORTFOLIO ANNUAL GENERAL MEETING 2015
Slide 12: Portfolio at August 2015
PORTFOLIO AT 31 AUGUST 2015 Diversification of the Portfolio Top 10 Holdings For personal use only – 87 holdings in total Rank Company % of Portfolio 1 Qube Holdings 3.1% 2 Tassal Group 3.1% 3 Ansell* 2.9% 4 Lifestyle Communities 2.8% 5 IRESS 2.5% 6 ResMed* 2.5% Treasury Wine 7 2.4% Estates 8 Equity
Slide 13: Portfolio at August 2015 continued
PORTFOLIO AT 31 AUGUST 2015 CONTINUED Diversification of the Portfolio Next 10 Holdings For personal use only – 87 holdings in total Rank Company % of Portfolio 11 Alumina 2.2% 12 Amalgamated 2.2% Holdings 13 iProperty Group 2.1% 14 Nufarm 2.1% 15 Wellcom Group 2.0% 16 Perpetual* 2.0% 17 Vocus 2.0%
Slide 14: Key financial metrics of the portfolio
KEY FINANCIAL METRICS OF THE PORTFOLIO For personal use only MIR Benchmark ASX 200 Price to Earnings (times)* 17.2 14.0 14.5 Earnings Per Share Growth^ 16.9% 14.6% 7.6% Dividend Yield (%)* 3.3 4.2 5.3 Net debt as a % of market cap 8% 18% N/A * 12 month forward ^ 2 year EPS CAGR. Source: FactSet. and
Slide 15: Investing into emerging areas of growth – ageing population
INVESTING INTO EMERGING AREAS OF GROWTH – AGEING POPULATION For personal use only Elderly Care Affordable Housing Managing Wealth ANNUAL GENERAL MEETING 2015
Slide 16: Investing into emerging areas of growth – software and IT services
INVESTING INTO EMERGING AREAS OF GROWTH – SOFTWARE AND IT SERVICES For personal use only Wealth Management Services to Government and Corporate ANNUAL GENERAL MEETING 2015
Slide 17: Investing into emerging areas of growth – industry consolidations
INVESTING INTO EMERGING AREAS OF GROWTH – INDUSTRY CONSOLIDATIONS For personal use only Smash Insurance Automotive Repairs Broking Dealerships ANNUAL GENERAL MEETING 2015
Slide 18: Alignment of interests is a positive feature of investing in small caps
ALIGNMENT OF INTERESTS IS A POSITIVE FEATURE OF INVESTING IN SMALL CAPS For personal use only Profile of Mirrabooka Portfolio The benchmark has 11% in stocks where the Board controls over 20%. ANNUAL GENERAL MEETING 2015
Slide 19: Examples of companies where we are investing alongside business owners
EXAMPLES OF COMPANIES WHERE WE ARE INVESTING ALONGSIDE THE BUSINESS OWNERS For personal use only Some of Australia’s best performing companies over the medium to long term have this profile: More recent examples of success in the portfolio include: ANNUAL GENERAL MEETING 2015
Slide 20: Outlook
For personal use only OUTLOOK ANNUAL GENERAL MEETING 2015
Slide 21: Small and mid cap universe outperformed larger companies during volatility
MIRRABOOKA’S INVESTMENT UNIVERSE IN SMALL AND MID CAP 50 HAVE OUTPERFORMED LARGER COMPANIES DURING RECENT VOLATILITY IN THE MARKET For personal use only Source: FactSet. ANNUAL GENERAL MEETING 2015
Slide 22: Valuations more attractive – PE of Mid Cap Index
ALTHOUGH VALUATIONS HAVE BECOME MORE ATTRACTIVE – PE OF MID CAP INDEX For personal use only Source: FactSet. ANNUAL GENERAL MEETING 2015
Slide 23: Valuations more attractive – PE of Small Ordinaries Index
ALTHOUGH VALUATIONS HAVE BECOME MORE ATTRACTIVE – PE OF SMALL ORDINARIES INDEX For personal use only Source: FactSet. ANNUAL GENERAL MEETING 2015
Slide 24: Outlook
OUTLOOK • Domestic economy is expected to produce low growth. For personal use only • There are inevitably small and mid sized companies with growth prospects greater than the broader economy. • Market volatility is providing opportunities for ongoing portfolio adjustments. • Cash position has been
Slide 25: Share Purchase Plan
SHARE PURCHASE PLAN • Board has initiated a share purchase plan For personal use only • Maximum of $15,000 per shareholder • Open to shareholders on the register at 2 October • Offer opens 13 October, closes 11 November • Priced at a discount of 10.0% on the VWAP over the 5 trading days up to, and i
Slide 26: Mirrabooka Investments Limited
* ¢- MIRRABOOKA * Investments Limited
Mirrabooka Investments — Shareholder Meeting (October 2015) on 6ix