Clime Capital Limited · ASX:CAM
Clime Capital — Investor Presentation (June 2014)
22 slides from Clime Capital's investor presentation, Jun 2, 2014
Slide 1: June Investor Update
For personal use only 2014 June Investor Update George Whitehouse Portfolio Manager
Slide 2: Outline
Outline: For personal use only - Shareholder Returns - People & Process - Case Studies - Asset Allocation - Portfolio Positioning - Questions
Slide 3: Clime Capital: Creating Value
Clime Capital: Creating Value Year Shareholder Returns: $10,000 (Jan 2009 to May 2014) For personal use only Excluding the value of franking credits distributed $23,000 $21,000 $19,000 $17,000 $15,000 $13,000 $11,000 $9,000 $7,000 Target 10% Clime Capital Limited (CAM) Source: Thomson Reuters
Slide 4: Strong Returns - Under new management
Strong Returns - Under new management 100,000 shares - Jan. 2009 to May 2014 Shares: Investment: For personal use only Jan-09 100,000 $ 66,000 Jul-10 105,000 Bonus Issue 1:20 Mar-11 110,250 Bonus Issue 1:20 Jul-11 115,762 Bonus Issue 1:20 Mar-12 121,550 Bonus Issue 1:20 Oct-12 127,628 Bonus Issue 1:
Slide 5: Cost Control & Declining MER
Cost Control & Declining MER: Pleasing progress, more to do For personal use only 4.000% 3.500% 3.000% 2.500% MER 10y Average 2.000% 1.500% 1.000% 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014E
Slide 6: Price & NTA
For personal use only Price & NTA:
Slide 7: Attractive Yield
For personal use only Attractive Yield:
Slide 8: Investment Team
Investment Team Responsibilities: John Abernethy Portfolio Manager; Portfolio Construction & Stock Selection Chief Investment Officer For personal use only Macro Economic Overview B. Com & LL.B 27 years industry experience / 18 years at Clime Responsibilities: George Whitehouse Portfolio Manager; Po
Slide 9: Investment Process
Investment Process: For personal use only 1. Quantitative: Value Based - Focus on Fundamental Quality & Valuation - Market Capitalisation & Liquidity considerations - Filters define the Investment Universe 2. Qualitative: Insight Driven - Industry & Competitive Advantage - Business Model & Capital S
Slide 10: Broader equity market
Broader equity market. For personal use only Source: Thomson Reuters, IRESS, Clime Asset Management
Slide 11: Volatility creates opportunity, Subdued recently
Volatility creates opportunity, Subdued recently Focus on Preserving Capital & Sound Return Generation For personal use only Significant Buy Opportunities Hold & Elevated Sell Opportunities
Slide 12: Spark Infrastructure
Spark Infrastructure - Market recognised the For personal use only opportunity swiftly Sell Range • Sound assets & strong cash flow. • Purchased with 15%+ forward return profile. Buy • Sold when Range forward return profile did not compensate for risks. • Elevated concern around upcoming regulatory
Slide 13: Mineral Resources - Volatile & Profitable
Mineral Resources - Volatile & Profitable For personal use only • Strong management & sound performance. • Lost FMG crushing Sell contract. Range • Diversity but sensitive to Iron Ore price movements. • Our view on iron ore has changed & encouraged the Buy sale. Ranges
Slide 14: Thorn Group
Thorn Group - Organic growth set to take off in FY15 For personal use only • Strong core business & management team. • Robust credit management, largely equity funded with people & systems in place for sustainable growth. • Profit from new Buy businesses set to Range take off in FY15.
Slide 15: Bentham IMF
Bentham IMF - Strong management & enviable track record For personal use only • Outstanding track record. • Strong management & insider ownership. • Robust balance sheet. • FY15 & 16 likely to be strong settlement years. • Joint venture to add significant value. • Ideal time to buy is Buy after a se
Slide 16: Ausdrill Limited
Ausdrill Limited - Full of potential return For personal use only • Strong management, inside ownership & stable core operations • Strong cash flow & low cap ex., rapidly extinguishing debt. No need for new capital. • Overseas utilisation & cash flow improving. • Energy Drilling division key Buy cat
Slide 17: Australia & New Zealand Banking Group
Australia & New Zealand Banking Group For personal use only • Banking conditions quite strong today, reflected in equity pricing. • Strong management & key metrics. • Asian strategy delivering. • Bad debts & Cost provisioning Base unlikely to reduce materially from here.
Slide 18: International Market overview
International Market overview: • Loose monetary policy & low volatility creating buoyant equity For personal use only pricing on a global scale. Likely mispricing of risk in areas. • Neglected countries offering opportunity.
Slide 19: Asset Allocation: Sector Allocation
Asset Allocation: Sector Allocation: For personal use only
Slide 20: Portfolio Overview & Questions (April)
Portfolio Overview & Questions (April) Portfolio ASX Code Company Name For personal use only Weighting (%) BHP BHP Billiton Limited 7.74 ANZ Australia & New Zealand Banking Group Limited 5.23 MXUPA Multiplex Convertible Note 3.89 BKW Brickworks Limited 3.82 WOW Woolworths Limited 3.59 TRS The Reject
Slide 21: Questions
For personal use only Questions:
Slide 22: Disclaimer
Disclaimer For personal use only The information contained in this document is published by the Clime Group. The information contained herein is not intended to be advice and does not take into account your personal circumstances, financial situation and objectives. The information provided herein m