PM Capital Global Opportunities Fund Ltd. · ASX:PGF
PM Capital Global Opportunities Fund — Shareholder Meeting (November 2014)
22 slides from PM Capital Global Opportunities Fund's shareholder meeting presentation, Nov 14, 2014
Slide 1: 2014 Annual General Meeting
PM Capital Global Opportunities Fund Limited (ASX: PGF) For personal use only 2014 Annual General Meeting 14 November 2014
Slide 2: Disclaimer
Disclaimer For personal use only This presentation dated 14 November 2014 is provided for information purposes only. The information contained in this presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of securities in the Compa
Slide 3: Agenda
Agenda For personal use only ♦ Chairman’s address ♦ Formal items of business ♦ Item 1 – Financial Statements and Reports ♦ Item 2 – Remuneration Report ♦ Item 3 – Re-election of Tom Millner ♦ Investment manager’s address ♦ Questions and answers 3
Slide 4: Chairman's address – Andrew McGill
Chairman’s address – Andrew McGill For personal use only ♦ $171m raised at initial public offering (IPO) (net amount) ♦ 173,672,200 ordinary shares and options issued (exercisable at $1.00 on or before 30 June 2015) under the IPO ♦ Current share price of $0.97.Trading range $0.90 to $1.005 since IPO
Slide 5: Chairman's address – summary of 2014 financial results
Chairman’s address – summary of 2014 financial results For personal use only ♦ After tax loss of $4.8m ♦ Foreign exchange losses of $5.6m ♦ Income tax benefit $2.0m ♦ Total assets $173.6m ♦ Total shareholders’ equity $164.6m Period from 1 October 2013 to 30 June 2014 $ Profit/(Loss) before income ta
Slide 6: Item 1 – Financial Statements and Reports
Item 1 – Financial Statements and Reports For personal use only 6
Slide 7: Item 2 – Remuneration Report
Item 2 – Remuneration Report For personal use only Proxy Votes Proxies have been received in respect of the resolution as follows: For Against Open 3,778,828 594,546 240,000 81.91% 12.89% 5.20% 7
Slide 8: Item 3 – Re-election of Tom Millner
Item 3 – Re-election of Tom Millner For personal use only Re-election of Director ♦Mr Tom Millner ♦Independent Non-executive Director Tom Millner has been an independent, non-executive Director of the Company since October 3rd, 2013. Mr Millner’s experience includes management of investment portfoli
Slide 9: Item 3 – Re-election of Tom Millner: Proxy Votes
Item 3 – Re-election of Tom Millner For personal use only Proxy Votes Proxies have been received in respect of the resolution as follows: For Against Open 3,125,109 131,500 1,494,265 65.78% 2.77% 31.45% 9
Slide 10: Investment manager's address – Paul Moore
Investment manager’s address – Paul Moore For personal use only What we said… Source: Australian Taxation Office as at June 2013 10
Slide 11: Commodity prices
For personal use only 75 80 85 90 95 100 105 110 115 1100 1200 1300 1400 1500 1600 1700 1800 Nov 2012 Dec 2012 Jan 2013 Feb 2013 Mar 2013 Apr 2013 May 2013 Jun 2013 Nov Jan Mar May Jul Jul 2013 Aug 2013 Sep 2013 *Source: Bloomberg 7 November 2014 Oct 2013 Gold* Nov 2013 Dec 2013 Crude Oil* Jan 2014
Slide 12: Our best ideas globally…
Our best ideas globally… For personal use only 1. Domestic banking Economic recovery and increased payout ratios 2. US housing Recovery from severe price corrections in US 3. European property Recovery from severe price corrections in Europe 4. Monopolistic type service providers Expectations of sol
Slide 13: Portfolio evolution
Portfolio evolution For personal use only Portfolio composition 31 December 2013 31 March 2014 30 June 2014 30 September 2014 31 October 2014 Domestic banking 8.7% 23.0% 34.5% 36.3% Monopolistic type service providers 3.5% 9.7% 10.6% 18.6% European property 4.7% 10.7% 11.6% 12.3% Global beverage com
Slide 14: 1. Domestic banking
1. Domestic banking For personal use only Future Return Price to Potential Price to on Equity Book variance Book? CBA 16.8% 2.7x 2.5x2 -10% Wells Fargo 15%+1 1.7x 2.2x2 +30% Lloyds Bank 15%+1 1.3x 2.2x2 +70% ING 13-15%1 0.9x 1.8x2 +100% 1. Based on PM CAPITAL Limited internal estimates 2. These are
Slide 15: 2. US housing
2. US housing For personal use only New home sales USA (1963—2014) US housing recovery still early in the cycle Source: www.calculatedriskblog.com 15
Slide 16: 3. European property
3. European property For personal use only 90% below peak Source: Organisation for Economic Co-operation and Development 16
Slide 17: 4. Monopolistic type service providers
4. Monopolistic type service providers For personal use only 5 Year P/E when Earnings Per Market acquired by Share (EPS) Position PGF Growth Intercontinental 14.6x +90% interest 21.6% Exchange Date: 9/07/2014 rate futures 17.2x #1 global VISA 15.5% Date: 7/10/2014 payments Google 17.6% 18x 90% searc
Slide 18: 5. Global beverage companies
5. Global beverage companies For personal use only Brewing industry ♦10 year industry consolidation theme ♦Top 4 beer players have shifted from ~24% market share in 2003 to ~85% market share Spirit industry ♦Economic slowdown has caused a slowdown in earnings - as economies recover, share prices sho
Slide 19: 6. Pharmaceutical
6. Pharmaceutical For personal use only R&D productivity improved ♦ Peaked pre GFC at 17%, now 13% Financial efficiency ♦ 25% of market capitalization in offshore trapped cash – tax inversion ♦ Spun off assets and proceeds used to buyback stock Valuation ♦ Reported P/E = 13x ♦ Adjusted P/E = 10x ♦ F
Slide 20: 7. Asia
7. Asia For personal use only Evolution of 4bn+ consumers creates a huge investment opportunity 1. Internet service providers Evolution in the way consumers view content and advertisers spending advertising dollars. 2. Gaming Market liberalisation, rising affluence, infrastructure improvements. 3. I
Slide 21: Why PM CAPITAL and PGF?
Why PM CAPITAL and PGF? Investment philosophy For personal use only Old fashioned ♦ A portfolio of businesses stock-pickers Investment process Research intensive, ♦ Bottom-up research process global perspective Business structure ♦ Staff are owners and investors Alignment of interests Investment obj
Slide 22: Questions and Answers
For personal use only QUESTIONS AND ANSWERS 22
PM Capital Global Opportunities Fund — Shareholder Meeting (November 2014) on 6ix