Clime Capital Limited · ASX:CAM
Clime Capital — Investor Presentation (November 2009)
38 slides from Clime Capital's investor presentation, Dec 1, 2009
Slide 1: Investment Briefing by John Abernethy
Clime Capital Limited ABN 99 106 282 777 Level 1, 7 Macquarie Place, Sydney NSW 2000 Australia PO Box R1297 Royal Exchange NSW 1225 Australia p +61 2 9252 8522 f +61 2 9252 8422 web www.clime.com.au Clime Capital Limited (“CAM”) For personal use only Australian Stock Exchange Company Announcement Of
Slide 2: John Abernethy, Chairman, November 2009
Clime Capital Limited For personal use only John Abernethy Clime Capital Limited, Chairman November 2009
Slide 3: Content
Content For personal use only Portfolio performance How the portfolio is managed Investment environment A l i off companies Analysis i
Slide 4: Portfolio Performance
For personal use only Portfolio Performance
Slide 5: Strong investment performance in last months and consistent over time
Strong investment performance in last 12 months and consistent performance over time time. For personal use only Clime Capital Limited 3-months 1-year 2-years* 3-years* 4-years* Cli Clime Capital C it l Li Limited it d 23 3% 23.3% 26 8% 26.8% -5.4% 5 4% 2 1% 2.1% 7 5% 7.5% ASX All Ordinaries Acc. In
Slide 6: Top Portfolio holdings October 2009
Clime Capital Limited For personal use only Top 10 Portfolio holdings 31 October 2009 Investment Portfolio weighting g g Australand Convertible Note 7.4% Multiplex Preference Shares 6.8% BHP Billiton Limited 5.8% Ethane Pipeline Limited 5.6% Woolworths Limited 5.6% National Australia Bank Limited 5.
Slide 7: Portfolio exposure by Index
Clime Capital Limited Portfolio exposure by Index For personal use only (31 October 2009) Income Notes: 2.00% 2 00% Preference shares: 15.12% S&P/ASX 20: 24.96% Other listed ordinary shares: 11.73% S&P/ASX 50: 1.96% S&P/ASX 100: 4.44% All Ordinaries O di i universe: i S&P/ASX 200: 4.24% 4 24% 11.78%
Slide 8: Portfolio outperformance to All Ords Accumulation Index
For personal use only -8% -6% -4% -2% 0% 2% 4% 6% 8% -10% 10% Oct-0 06 Nov-0 06 Dec-0 06 Jan-0 07 Feb-0 07 Mar-0 07 Apr-0 07 May-0 07 Jun-0 07 Jul-0 07 Aug-0 07 Sep-0 07 Oct-0 07 Nov-0 07 Dec-0 07 Jan-0 08 Feb-0 08 Mar-0 08 Apr-0 08 May-0 08 Jun-0 08 Jul-0 08 Aug-0 08 Sep-0 08 improved in 2009 Oct-0
Slide 9: Portfolio Analysis by Asset Type
The strong performance result has been achieved while continuing g to hold a cash For personal use only balance in excess of 20%. Portfolio Analysis by Asset Type 100.00% 80.00% 60.00% Equities 40.00% Cash 20.00% 0.00% 30.09.08 31.12.08 31.03.09 30.06.09 30.09.09
Slide 10: Share Price & Portfolio Net Tangible Assets
31--Oct-09 Share Price & Portfolio Net Tangible Assets 23--Jul-09 14--Apr-09 04--Jan-09 Clime Capital Limited 26--Sep-08 Historical NTA and share price 18--Jun-08 10--Mar-08 01--Dec-07 23--Aug-07 15--May-07 04--Feb-07 27--Oct-06 19--Jul-06 1.60 1.40 1.20 1.00 0.80 0.60 For personal use only
Slide 11: How the portfolio is managed
For personal use only How the portfolio is managed
Slide 12: Clime Asset Management's core investment beliefs
Clime Asset Management’s For personal use only core investment beliefs ¾ Capital preservation is essential, avoiding losing money is essential ti l tto maximising i i i ththe return. t ¾ The ROE a company achieves will determine the value of the company. ¾ It is the company’s ability to generate a s
Slide 13: Clime Asset Management's Investment Approach
Clime Asset Management’s Investment Approach pp For personal use only ‘A disciplined & transparent process’ 1. We screen all companies looking at their Return on Equity 2. We identify companies that have attractive investment characteristics 3 3. We value W l each h company fforecasting ti th the su
Slide 14: Clime screens ASX listed companies for their Return on Equity
Clime screens ASX listed companies for their Return on Equity For personal use only
Slide 15: We identify companies with attractive investment characteristics
We identify companies with attractive investment characteristics For personal use only How does it make money? Are they doing what they said? What is the sustainable return on equity? Is the capital Can it increase its profit? management sensible? Is the debt appropriate for the business model? Does
Slide 16: A strong and experienced investment team
Clime Asset Management A strong and experienced investment team For personal use only • John Abernethy, B. Com (Econ) LL.B - Chief Investment Officer • Paul Jensen, B. Com, FAICD – Chairman Investment Committee • Dr Vincent Chin, PhD Physics, MSc Physics, BSc Chemical Engineering, F. Fin- Senior Ana
Slide 17: 2009/10 Investment Environment
For personal use only 2009/10 Investment Environment
Slide 18: Government fiscal stimulation programs will continue
Government fiscal stimulation programs will continue For personal use only with government debts rising to over 30 trillion
Slide 19: Household debt will remain a problem for developed countries
Household debt will remain a problem for For personal use only the developed countries countries. • Household debt reached $1 trillion in 2008. • Before interest rate cuts household debt servicing (interest) reached 15% of household income.
Slide 20: Australian Government first home buyers grant
Australian Government first home buyers grant. Are rising g housing gpprices a measure of economic For personal use only success or excess?
Slide 21: Global equity markets starting to diverge
Global equity markets have been all moving together but For personal use only they are starting to diverge
Slide 22: The Australian share market - fair value at 130% of GDP?
The Australian share market For personal use only - fair value at 130% of GDP?
Slide 23: Wealth distribution became too concentrated
Wealth distribution became too concentrated. It is going to be addressed. For personal use only In 2007 the top 1% of US income earners took 23% of total income in the US
Slide 24: Off-shore debt has funded growth in Australian bank loan books
Off-shore debt has funded the growth in the Australian bank loan books. For personal use only Reliance on offshore debt is likely to be reduced Australia’s bank loans or assets reached $2.5 trillion Equivalent to 200% of GDP About 50% of these loans to the household and consumer sector
Slide 25: 2009 is very different for Australian banks from the 1992 recession
2009 is very different for Australian banks from the 1992 For personal use only recession - Non performing assets are manageable recession.
Slide 26: Major Australian banks have been big winners from the GFC
The major Australian banks have been big winners For personal use only from the global financial crisis
Slide 27: Australian banks are still very profitable
Australian banks are still very profitable For personal use only
Slide 28: Australian corporate debt has been largely addressed
Australian corporate p debt has been largely g y addressed For personal use only IIn the th last l t 12 months th Australian listed companies have raised over $100 q y billion in new equity This was used to pay back corporate debt It will mean profits will rise in the next 12 months but does this ju
Slide 29: Commodity prices & volumes will continue to influence the Australian economy
Commodity prices & volumes will continue to have a For personal use only significant influence on the Australian economy 2009 oIron ore prices down 40% oCoal prices down 40% oCopper prices down by 40% oAustralian dollar appreciated i t d by b 30%
Slide 30: China remains increasingly important to Australia
China remains and continues to be increasingly For personal use only important to Australia
Slide 31: Global growth will be led by developing economies
Global growth will be lead by the developing economies. For personal use only Japan Europe & the USA will continue to have benign growth in 2010 Japan,
Slide 32: Our 2010 global outlook
Our 2010 g global outlook For personal use only o The world will grow in 2010. G20 fiscal stimulation programs are still required o US and Europe have significant bank problems and have budget d fi it iin excess off 10% off GDP deficits o UK, Japan & Ireland have just had their credit ratings downgr
Slide 33: McMillan Shakespeare Limited - What does Clime look at?
McMillan Shakespeare Limited What does Clime look at? For personal use only Valuation by StockVal www.stockval.com.au
Slide 34: BHP Billiton Limited
BHP Billiton Limited For personal use only Valuation by StockVal www.stockval.com.au
Slide 35: Telstra Corporation Limited
Telstra Corporation Limited For personal use only Valuation by StockVal www.stockval.com.au
Slide 36: JB Hi Fi Limited
JB Hi Fi Limited For personal use only Valuation by StockVal www.stockval.com.au
Slide 37: The Reject Shop Limited
The Reject Shop Limited For personal use only Valuation by StockVal www.stockval.com.au
Slide 38: The Boab tree is Clime's corporate icon
The Boab tree is Clime’s corporate icon. It symbolises patience, resilience and stability the For personal use only characteristics of our investment approach The Boab adapts, grows patiently and flourishes for centuries. The Boab tree weathers arid and harsh conditions. We help investments to flour
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