NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — NAOS Emerging Opportunities Company — Q3 FY2017 Earnings Presentation
22 slides from NAOS Ex-50 Opportunities's earnings presentation, Apr 21, 2017
Slide 1: Quarterly Investor Briefing 3rd Quarter FY-2017
QUARTERLY INVESTOR BRIEFING 3RD QUARTER FY-2017 NAOS EMERGING OPPORTUNITIES COMPANY LIMITED (ASX: NCC)
Slide 2: Call Details
CALL DETAILS 1. Date Friday 21 April 2017 2. Time 9:45am AEST 3. Telephone Within Australia: 1800 857 029 Outside Australia: +61 3 8687 0635 New Zealand: 0800 449 288 4. Guest Access Code 1084 2873# 5. Questions Please email all questions to [email protected] prior to the allotted call time Conv
Slide 3: NCC Agenda
NCC AGENDA 1. NCC Q3 FY17 Review • Performance & Risk Summary • Stock Contribution (Since Inception) • Return Profile, Positive v Negative Return Months • Capital Analysis • Dividend Profile • Director/Shareholder Alignment • Historical Net Equity & Cash Exposure • Industry/Sector Exposure • Company
Slide 4: 1. NCC Review
1. NCC Review “ESTABLISHING AND MAINTAINING AN UNCONVENTIONAL INVESTMENT PROFILE REQUIRES ACCEPTANCE OF UNCOMFORTABLY IDIOSYNCRATIC PORTFOLIOS, WHICH FREQUENTLY APPEAR DOWNRIGHT IMPRUDENT IN THE EYES OF CONVENTIONAL WISDOM.” – DAVID SWENSEN Conviction Long Term Investing | Copyright 2017 NAOS Asset
Slide 5: Performance & Portfolio Characteristics Summary as at 31 March 2017
NCC: PERFORMANCE & PORTFOLIO CHARACTERISTICS SUMMARY AS AT 31 MARCH 2017 2 Year 3 Year 4 Year Inception (% Inception 3 Month 1 Year (%p.a.) (% p.a.) (% p.a.) p.a.) (% Nom.) NCC Investment Portfolio Performance* -1.04% +30.97% +18.66% +13.75% +19.61% +20.24% +112.57% S&P/ASX Small Ordinaries Accumula
Slide 6: Positive Stock Attribution Summary (Since Inception)
NCC: POSITIVE STOCK ATTRIBUTION SUMMARY (SINCE INCEPTION) AS AT 31 MARCH 2017 Positive Stock Contribution Analysis (Contribution is what has attributed to NCC’s performance since inception) (1 March 2013 to 31 March 2017) The table below lists the top positive contributors to NCC’s total return sinc
Slide 7: Return Profile, Positive v Negative Months
NCC: RETURN PROFILE, POSITIVE V NEGATIVE MONTHS AS AT 31 MARCH 2017 11.00% 9.00% 7.00% 5.00% 3.00% 1.00% -1.00% -3.00% -5.00% Gross Return Conviction Long Term Investing | Copyright 2017 NAOS Asset Management Limited 7
Slide 8: Capital Analysis
NCC: CAPITAL ANALYSIS AS AT 31 MARCH 2017 NTA Analysis Pre Tax - $1.37 Post Tax Pre Unrealised Gains Tax – $1.36 Post Tax - $1.26 *The above NTA Values are inclusive of the $0.035 Dividend (Ex-Dividend Date 3 April 2017) Share Price $1.42 Premium to NTA (Pre-Tax) 3.65% Fully Franked Dividend Yield 4
Slide 9: Historical Fully Franked Dividend Profile
NCC: HISTORICAL FULLY FRANKED DIVIDEND PROFILE AS AT 31 MARCH 2017 $0.07 $0.0675 $0.0625 $0.0575 $0.06 $0.05 $0.04 Dividend $0.0250 $0.0350 $0.03 $0.02 $0.01 Interim $0.00 FY13 Maiden FY14 FY15 FY16 1H FY17 Conviction Long Term Investing | Copyright 2017 NAOS Asset Management Limited 9
Slide 10: Directors Increasing Alignment with Shareholders Since IPO
NCC: DIRECTORS INCREASING ALIGNMENT WITH SHAREHOLDERS SINCE IPO AS AT 31 MARCH 2017 2,000,000 1,958,246 1,800,000 1,600,000 1,543,000 1,400,000 1,200,000 1,074,019 1,000,000 800,000 627,881 600,000 200,000 400,000 283,829 200,000 0 David Rickards* Sebastian Evans*^ Warwick Evans* IPO Shareholding Sh
Slide 11: Portfolio Structure: Historical Net Equity and Cash Weightings
20% 40% 60% 80% 100% 120% 0% -40% -20% Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 Nov-13 AS AT 31 MARCH 2017 Dec-13 Jan-14 Feb-14 Net Equity Weighting Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Conviction Long Term Investing | Copyright 20
Slide 12: Portfolio Structure Allocation by Industry/Sector (Net)
NCC: PORTFOLIO STRUCTURE ALLOCATION BY INDUSTRY/SECTOR (NET) AS AT 31 MARCH 2017 2.24% Materials 3.34% Food & Beverage 13.99% Telecommunications 16.61% Media 29.88% Consumer Services 31.34% Diversified Financials 0% 10% 20% 30% 40% Conviction Long Term Investing | Copyright 2017 NAOS Asset Managemen
Slide 13: Company Meetings
NCC: COMPANY MEETINGS The NAOS investment philosophy is based around the belief that for a company to succeed and generate strong returns for shareholders it must be led by a motivated, proven and experienced management team. The NAOS Investment Team has direct contact with many listed and unlisted
Slide 14: 2. Market Outlook
2. Market Outlook “THE MARKET CAN REMAIN IRRATIONAL LONGER THAN YOU CAN REMAIN SOLVENT.” – JOHN MAYNARD KEYNES Conviction Long Term Investing | Copyright 2017 NAOS Asset Management Limited 14
Slide 15: NCC Market Outlook: Portfolio Update for Q3 FY2017
NCC MARKET OUTLOOK: PORTFOLIO UPDATE FOR Q3 FY2017 CML Group (ASX: CGR) - Finalisation of a new institutional bank funding facility. - This will allow CML to reduce their cost of funds from ~9% p.a. to potentially 2-3% p.a. - Main focus for CML going forward will be their ability to maintain a stead
Slide 16: NCC Market Outlook: Market Commentary
NCC MARKET OUTLOOK: MARKET COMMENTARY Significant Increase in Market “Noise” Through Q3 FY2017 - Market obsession with Australian house prices and potential government policy changes. - APRA changes around lending standards and subsequent costs for property owners. - Geopolitical risks around curren
Slide 17: Market Outlook: ASX-300 Relative Stock Performance
MARKET OUTLOOK: ASX-300 RELATIVE STOCK PERFORMANCE The market malaise within small to mid cap industrial companies has continued into Q3 FY2017, as shown by significant negative share price movements in companies such as RFG, RCG, FBU, CSV and ISD. Pleasingly, there are also signs that some industri
Slide 18: Market Outlook: NAOS Investment Philosophy
MARKET OUTLOOK: NAOS INVESTMENT PHILOSOPHY Companies valued based on todays Balance sheet flat earnings flexibility profile but not tomorrows growing earnings base Proven management Ability to drive teams with strong revenue and/or shareholder margin growth alignment Existing Core revenue streams co
Slide 19: 3. Keeping Up to Date
3. Keeping Up to Date “SUPERIOR RESULTS DON’T COME FROM BUYING HIGH QUALITY ASSETS, BUT FROM BUYING ASSETS – REGARDLESS OF QUALITY – FOR LESS THAN THEY’RE WORTH. IT’S ESSENTIAL TO UNDERSTAND THE DIFFERENCE BETWEEN BUYING GOOD THINGS AND BUYING THINGS WELL.” – HOWARD MARKS Conviction Long Term Invest
Slide 20: Investor Awareness and Communications
INVESTOR AWARENESS AND COMMUNICATIONS CEO Insights, Quarterly Monthly The news and Twice yearly Weekly NAOS Shareholder Investment Report media section of National Newsletter, Conference Calls, & NTA email our website is Roadshow register subscribe via our subscribe via our updates, subscribe update
Slide 21: The NAOS Team and Directors
THE NAOS TEAM AND DIRECTORS Sebastian Evans Richard Preedy Ben Rundle Chief Investment Officer/ Chief Financial & Portfolio Manager Managing Director Operating Officer Warwick David Rickards Sebastian Evans Director Evans Independent Director Chairman Julie Coventry Jeffrey Kim Julia Compliance Offi
Slide 22: Disclaimer
DISCLAIMER This presentation has been prepared by NAOS Asset Management Limited (ABN 23 107 624 126, AFSL 273529, “NAML”). The purpose of this presentation is to provide information only; any other use other than informational purposes is disclaimed. The information provided is given in summary form
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