Mirrabooka Investments Ltd · ASX:MIR
Mirrabooka Investments — Shareholder Meeting (October 2017)
24 slides from Mirrabooka Investments's shareholder meeting presentation, Oct 10, 2017
Slide 1: Mirrabooka 2017 Annual General Meeting Presentation
10 October 2017 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 2017 Annual General Meeting Presentation Dear Sir / Madam The following presentation
Slide 2: Annual General Meeting 2017
For personal use only Annual General Meeting 2017
Slide 3: Disclaimer
For personal use only Disclaimer Mirrabooka Investments Limited and Australian Investment Company Services Limited (AFSL: 303209) and each of their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good faith. However, n
Slide 4: Overview of Mirrabooka
For personal use only Overview of Mirrabooka Annual General Meeting 2017
Slide 5: Mirrabooka's Investment Approach
For personal use only Mirrabooka’s Investment Approach Small and Mid Cap listed companies in Australia and New Zealand Annual General Meeting 2017
Slide 6: Management of the Portfolio
For personal use only Management of the Portfolio Annual General Meeting 2017
Slide 7: Full Year Financial Summary – June
For personal use only Full Year Financial Summary – 30 June 2017 Annual General Meeting 2017
Slide 8: Earnings Per Share and Dividends Per Share
For personal use only Earnings Per Share and Dividends Per Share Annual General Meeting 2017
Slide 9: Changes to Tax Legislation – Franking Credits
For personal use only Changes to Tax Legislation – Franking Credits • The Federal Government has proposed retrospective legislation to prevent Investment Companies claiming the lower company tax rate until 2023-24. • If enacted, Mirrabooka will continue to pay tax at 30%, and frank its dividends at
Slide 10: Cumulative Share Price Return Including Franking Credits – 10 Years to 30 September
For personal use only Cumulative Share Price Return Including Franking Credits* – 10 Years to 30 September 2017 Annual General Meeting 2017
Slide 11: Share Price Remains at a Premium to Net Asset Backing
For personal use only Share Price Remains at a Premium to Net Asset Backing Annual General Meeting 2017
Slide 12: Market and the Portfolio
For personal use only Market and the Portfolio Annual General Meeting 2017
Slide 13: Mid Cap Resources Were Very Strong Over the Year
For personal use only Mid Cap Resources Were Very Strong Over the Year – Mirrabooka has some exposure but remains well underweight. Annual General Meeting 2017
Slide 14: Mirrabooka's Portfolio – Per Annum Returns to September 2017
For personal use only Mirrabooka’s Portfolio – Per Annum Returns to 30 September 2017, Including Franking Credits* After tax and expenses. Ignores benefits of LIC tax credits. * Assumes an investor can take full advantage of the franking credits. Annual General Meeting 2017
Slide 15: Portfolio at September 2017 (Excluding Cash)
For personal use only Portfolio at 30 September 2017 (Excluding Cash) Diversification of the Portfolio Top 10 Holdings – 71 holdings in total Rank Company % of Portfolio 1 Lifestyle Communities 4.4% 2 Qube Holdings* 3.9% 3 Mainfreight 3.5% 4 ALS* 3.3% 5 IRESS* 2.9% 6 Alumina* 2.8% 7 Challenger* 2.7%
Slide 16: Portfolio at September 2017 (Excluding Cash) continued
For personal use only Portfolio at 30 September 2017 (Excluding Cash) continued Diversification of the Portfolio Next 10 Holdings – 71 holdings in total Rank Company % of Portfolio 11 AUB Group 2.3% 12 Perpetual* 2.3% 13 Freedom Foods Group 2.2% 14 ARB Corporation 2.2% 15 CYBG 2.1% 16 Computershare*
Slide 17: Some Portfolio Comments
For personal use only Some Portfolio Comments Positions that worked well: Positions that underperformed: Annual General Meeting 2017
Slide 18: Featured Holdings – Clydesdale Bank PLC
For personal use only Featured Holdings – Clydesdale Bank PLC $ What we like: • Improved management focus following spin out from NAB. • Significant cost saving potential. • Back to basics – little exposure to higher risk commercial lending. • Attractively priced relative to Australian/global equiva
Slide 19: Featured Holdings – Carsales.com
For personal use only Featured Holdings – Carsales.com $ What we like: • Very strong Australian competitive position – audience lead hard to dislodge • Strong innovation focus – improved car selling process drives profit growth. • Interesting early stage investments in potentially large overseas mar
Slide 20: Featured Holdings – Alumina
Featured Holdings – Alumina For personal use only $ What we like: • Continues to be in lowest cost quartile for alumina production globally. • Signs of more rational industry with Chinese winter production restrictions. • Very modest debt and low capital expenditure plans allows for attractive divid
Slide 21: Outlook
For personal use only Outlook Annual General Meeting 2017
Slide 22: Small and Mid Cap Industrial Sector Valuations Remain High
For personal use only Small and Mid Cap Industrial Sector Valuations Remain High Small Industrials Price Earnings Ratio Mid Cap Industrials Price Earnings Ratio times times Source: FactSet. Source: FactSet. Annual General Meeting 2017
Slide 23: Market Comments
For personal use only Market Comments • High quality stocks in Mirrabooka's universe currently trade on high p/e’s as many large companies face subdued growth. • Any short fall in expectations are severely punished. • Conversely stronger performances are not being rewarded. • Mirrabooka holds an ele
Slide 24: For personal use only
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