Mirrabooka Investments Ltd · ASX:MIR
Mirrabooka Investments — Shareholder Meeting (October 2020)
26 slides from Mirrabooka Investments's shareholder meeting presentation, Oct 14, 2020
Slide 1: 2020 Annual General Meeting Presentation
14 October 2020 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 2020 Annual General Meeting Presentation Dear Sir / Madam The following presentation
Slide 2: Annual General Meeting 2020
Annual General Meeting 2020 For personal use only
Slide 3: Presentation Agenda
Presentation Agenda For personal use only • Objectives and Approach (Mark Freeman) • Financial Year in Summary (Andrew Porter) • Markets and the Portfolio (Kieran Kennedy) • Outlook (Mark Freeman) • Closing Remarks (Terry Campbell) Annual General Meeting 2020 8
Slide 4: Disclaimer
Disclaimer Mirrabooka Investments Limited and Australian Investment Company Services Limited (AFSL: 303209), its For personal use only related entities and each of their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in
Slide 5: Objectives
Objectives For personal use only Annual General Meeting 2020 10
Slide 6: Our approach
Our approach For personal use only Annual General Meeting 2020 11
Slide 7: Financial Year in Summary
For personal use only Financial Year in Summary Annual General Meeting 2020 12
Slide 8: Financial Year in Summary
Financial Year in Summary For personal use only Annual General Meeting 2020 13
Slide 9: The Market and Portfolio
For personal use only The Market and Portfolio Annual General Meeting 2020 14
Slide 10: Our approach has held up in very challenging market conditions
Our approach has held up in very challenging market conditions For personal use only Annual General Meeting 2020 15
Slide 11: Portfolio Performance to September 2020
Portfolio Performance to 30 September 2020 For personal use only Annual General Meeting 2020 16
Slide 12: Long term returns (with franking) – years to September 2020
Long term returns (with franking) – 20 years to 30 September 2020 For personal use only Assumes an investor can take full advantage of the franking credits Annual General Meeting 2020 17
Slide 13: The Impact of COVID on the economy and company earnings has been significant
The Impact of COVID 19 on the economy and company earnings has been significant For personal use only A Century of Australian real GDP Growth EPS growth fell 38% for the average stock, the weakest since the GFC (-20%) Early 1980’s & 1990’s WW1& WW2 Recessions Spanish demobilisation Flu Great Coronav
Slide 14: With very significant fiscal stimulus to support the economy
With very significant fiscal stimulus to support the economy Fiscal Easing* in Response to Coronacrisis Year-on year % change in real household consumption For personal use only 2Q 2020 *Discretionary policy actions taken since the outbreak that lead to higher government expenditures or lower tax re
Slide 15: These dynamics have created a wide range of stock performance
These dynamics have created a wide range of stock performance “Stay at Home” has outperformed “Out-and-About” by 31% and the ASX200 by 27% since the market peak on 20 February For personal use only Source: Goldman Sachs Global Investment Research Annual General Meeting 2020 20
Slide 16: How these conditions have impacted the stocks in the portfolio
How these conditions have impacted the stocks in the portfolio For personal use only Positive Impact Negative Impact Annual General Meeting 2020 21
Slide 17: Market volatility provided opportunity to redistribute capital
Market volatility provided opportunity to redistribute capital Reduced holdings because of valuation risk… … sold because of takeovers… For personal use only and exited selected positions To invest in attractive long term opportunities … In 2020 Mirrabooka participated in 18 capital raisings, worth
Slide 18: Portfolio at September 2020 (Excluding Cash)
Portfolio at 30 September 2020 (Excluding Cash) Diversification of the Portfolio Top 10 Holdings For personal use only – 55 Holdings in Total Rank Company % of Portfolio 1 Macquarie Telecom Group 5.1% 2 Mainfreight 4.9% 3 ARB Corporation 4.7% 4 Reece 3.9% 5 Netwealth Group 3.6% 6 Breville Group 3.5%
Slide 19: Portfolio at September 2020 (Excluding Cash) continued
Portfolio at 30 September 2020 (Excluding Cash) continued Diversification of the Portfolio Top 10 Holdings For personal use only – 55 Holdings in Total Rank Company % of Portfolio 11 James Hardie Industries 2.9% 12 AUB Group 2.6% 13 EQT Holdings 2.5% 14 Seek 2.5% 15 Xero 2.3% 16 Invocare 2.3% 17 IRE
Slide 20: Outlook
For personal use only Outlook Annual General Meeting 2020 25
Slide 21: Common COVID related considerations for companies that we invest in
Common COVID related considerations for companies that we invest in For personal use only • abrupt shift to working remotely handled well and provides lasting flexibility options: o but do productivity and collaboration issues emerge as restrictions persist? • a significant focus on employee wellbei
Slide 22: Common COVID related considerations for companies that we invest in continued
Common COVID related considerations for companies that we invest in continued For personal use only • social distancing is often making it harder to market to new business customers • supply chain dependencies and redundancy also an ongoing area of strategic focus • And most significantly - what is
Slide 23: Factors that are making us cautious
Factors that are making us cautious Retail investors are bullish globally High growth stocks are on substantial New accounts for E*Trade (in ‘000’s) valuations – particularly in Australia For personal use only premium to times market From E*Trade Financial Corporation Q2 2020 Financial Report Source
Slide 24: Factors that gives us confidence
Factors that gives us confidence Our portfolio has good exposure to backable owner/driver management: 41% of our portfolio is in owner/driver led businesses. For personal use only A further 33% is in businesses with a CEO with over 5 years tenure and 3 years base salary in equity. Our portfolio is s
Slide 25: Closing Remarks
For personal use only Closing Remarks Annual General Meeting 2020 30
Slide 26: For personal use only
For personal use only mG 1 MIRRABOOKA Investments Limited
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