Mirrabooka Investments Ltd · ASX:MIR

Mirrabooka Investments — Shareholder Meeting (September 2006)

29 slides from Mirrabooka Investments's shareholder meeting presentation, Sep 25, 2006

  1. Slide 1: Mirrabooka Investments Limited 2006 Annual General Meeting Chairman's Presentation

    25 September 2006 The Manager Company Announcements Office Australian Stock Exchange Limited Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Mirrabooka Investments Limited 2006 Annual General Meeting Chairman’s Presentation Dear Sir or Madam Mirrabooka Investments Limit

  2. Slide 2: Annual General Meeting 25 September 2006

    Annual General Meeting 25 September 2006

  3. Slide 3: Dividend increases and higher trading contribution led to improved operating profit

    Dividend increases and higher trading contribution led to improved operating profit Major Contributors to 8 Increased Profit $7.28m 7 + $0.80m in dividends $6.49m 6 + $0.42m in trading & $ million options income 5 4 3 2 2005 2006 Operating Operating Profit Profit

  4. Slide 4: AIFRS Reported Profit up as a result of sales from the Portfolio

    AIFRS Reported Profit up as a result of sales from the Portfolio Major Contributors to 24 Increased Profit $20.40m 20 + $2.15m in net realised gains $17.46m 16 + $0.79m in Operating Profit $ million 12 8 $7.28m 4 $6.49m 0 2005 2006 AIFRS AIFRS Profit Profit

  5. Slide 5: Small and mid caps indices have continued their upward momentum

    Small and mid caps indices have continued Mid Cap their upward momentum Small Ordinaries Price Index Price Index 6000 3500 5000 3000 4000 2500 3000 2000 Beginning of financial year 2000 1500 10 4 12 4 02 4 04 5 06 5 08 5 09 5 11 5 01 5 03 6 05 6 07 6 08 6 6 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0

  6. Slide 6: Small and mid caps continue to trade at premium to large cap stocks

    Small and mid caps continue to trade at premium to large cap stocks 18 17 16 Prospective P/E of 15.2x 15 14 Prospective P/E of 13.8x 13 12 3 4 5 6 M 4 M 5 M 6 3 Fe 4 Fe 5 A 4 A 5 A 6 -0 -0 -0 -0 -0 -0 -0 0 0 0 -0 -0 -0 b- b- b- ug ug ug ug ov ov ov ay ay ay Fe A N N N 50 LEADERS COMBINED SMALL & MID

  7. Slide 7: Key Investment Themes

    Key Investment Themes ƒ Risk mitigation ƒ Reduce some holdings where valuations looked extreme ƒ Reduce holdings that become large relative to overall portfolio ƒ Continue to look for investments ƒ Add to existing companies during price weakness ƒ Add new holdings to the portfolio

  8. Slide 8: Earnings Per Share v Dividends Per Share

    Earnings Per Share v Dividends Per Share 20 15 Cents per share 10 5 0 2002 2003 2004 2005 2006 Financial year Net operating profit per share Realised gains per share Dividends per share

  9. Slide 9: Portfolio Management Performance - % Per Year

    Portfolio Management Performance - % Per Year 35% 28.8% 27.9% 30% 26.4% 23.9% 24.4% 25% 22.0% 19.5% 18.5% 20% 16.4% 15.8% 14.2% 15% 12.6% 10% 5% 0% 1 year 2 year 3 year 4 year 5 year since return return return return return inception Mirrabooka Net Asset per share growth plus dividends CPI S&P/ASX M

  10. Slide 10: Top Contributors to the ASX Mid Cap Index over year to 30 June 2006

    Top 5 Contributors to the ASX Mid Cap 50 Index over year to 30 June 2006 Point % of total Total Company Name Contribution points Return % Zinifex 140.6 15.2% 229.6% Oxiana 123.5 13.3% 255.1% Patrick Corporation* 83.9 9.1% 59.2% Lihir Gold 73.5 7.9% 136.1% Resmed Inc 52.7 5.7% 44.5% Mirrabooka is int

  11. Slide 11: Top Contributors to the ASX Small Ordinaries Index over year to 30 June 2006

    Top 5 Contributors to the ASX Small Ordinaries Index over year to 30 June 2006 Point % of total Total Company Name Contribution points Return % WORLEYPARSONS 52.1 10.7% 154.8% PALADIN RESOURCES 35.9 7.4% 249.8% ALLCO FINANCE GROUP 32.2 6.6% 110.8% SFE CORPORATION LIMITED 23.4 4.8% 54.9% FORTESCUE ME

  12. Slide 12: Performance since inception

    Performance since inception $ Base of $1,000 in April 1999 2,750 2,500 2,250 Mirrabooka: $2,595 2,000 Market: $2,399 1,750 1,500 1,250 1,000 750 O 9 O 0 O 1 O 2 O 3 O 4 O 5 A A 99 A 00 A 01 A 02 A 03 A 04 A 05 ct ct ct ct ct ct ct pr pr pr pr pr pr pr pr - - - - - - - -9 -0 -0 -0 -0 -0 -0 -0 6 Mirra

  13. Slide 13: Mirrabooka's Share Price Return up 26.5% over the year

    Mirrabooka’s Share Price Return up 26.5% 35% over the year 29.1% 28.8% 30% 27.9% 26.5% 26.4% 25% 23.2% 22.4% 22.0% 19.2% 18.5% 20% 15% 10% 5% 0% 1 year return 2 year return 3 year return 4 year return 5 year return Share Price Acc Series CPI Combination S&P/ASX Mid Cap 50 and Small Ordinaries Accumu

  14. Slide 14: Shareholders Equity and Shareholder Numbers

    Shareholders Equity and Shareholder Numbers Number of $ Million Shareholders 250 4,500 4,000 200 3,500 3,000 150 $'000,000 2,500 2,000 100 1,500 1,000 50 500 0 0 2001 2002 2003 2004 2005 2006 Share Capital Financial year Revaluation & Realisation Retained Profits Number of shareholders

  15. Slide 15: Share Price Discount to Net Asset Backing has closed

    A ug -8% -4% 0% 4% 8% -16% -12% -0 O 2 ct -0 D 2 ec -0 Fe 2 b- 0 A 3 pr -0 Ju 3 n- 03 A ug -0 O 3 ct -0 D 3 ec -0 Fe 3 b- 0 A 4 pr -0 Ju 4 n- 04 A ug -0 O 4 ct -0 D 4 ec -0 Fe 4 b- 0 A 5 pr -0 Ju 5 n- 05 A ug -0 O 5 ct -0 D 5 ec -0 Fe 5 b- 0 A 6 pr -0 Ju 6 n- 06 A ug -0 6 Share Price Discount to Net

  16. Slide 16: Largest Acquisitions

    Largest 5 Acquisitions - (1/7/05-30/6/06) $m ConnectEast Group 5.5 Toll Holdings (takeover of Patrick) 5.5 Macquarie Communications Infrastructure Group 2.8 West Australian Newspapers 2.4 FKP Property Group 2.2

  17. Slide 17: Largest Disposals

    Largest 5 Disposals - (1/7/05 to 30/6/06) $m Healthscope 11.2 Patrick Corporation (takeover by Toll) 7.3 Vision Systems 3.2 Macquarie Airports 3.1 Foodland 2.6

  18. Slide 18: Cash position remains strong

    Cash position remains strong $m 25 20 15 10 5 0 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 Cash Position

  19. Slide 19: Top Investments - August 2006

    Top 40 Investments - 31 August 2006 Total Value % of Code Company Name $m Portfolio 1 NUF NUFARM 9.1 4.2% 2 TCL TRANSURBAN GROUP 9.1 4.2% 3 TOL TOLL HOLDINGS 7.5 3.4% 4 BOL BOOM LOGISTICS 7.1 3.3% 5 HSP HEALTHSCOPE 6.9 3.2% 6 APNG APN 7.25% CONV NOTE 6.2 2.9% 7 MMS MCMILLAN SHAKESPEARE 5.9 2.7% 8 BA

  20. Slide 20: Top Investments - August 2006 con't

    Top 40 Investments - 31 August 2006 con’t 11 CEU CONNECTEAST GROUP 5.2 2.4% 12 PRG PROGRAMMED MAINTENANCE 5.2 2.4% 13 ALN ALINTA 4.8 2.2% 14 ROC ROC OIL COMPANY 4.6 2.1% 15 IPL INCITEC PIVOT 4.5 2.1% 16 DVC DCA GROUP 4.3 2.0% 17 ORG ORIGIN ENERGY 4.3 2.0% 18 CAB CABCHARGE AUSTRALIA 4.1 1.9% 19 SHV S

  21. Slide 21: Top Investments - August 2006 con't

    Top 40 Investments - 31 August 2006 con’t 21 CEY CENTENNIAL COAL 3.8 1.8% 22 CPB CAMPBELL BROTHERS 3.7 1.7% 23 MCG MACQUARIE COMMUNICATIONS 3.6 1.7% 24 BKN BRADKEN 3.5 1.6% 25 OSH OIL SEARCH 3.5 1.6% 26 GNS GUNNS 3.3 1.5% 27 ILU ILUKA RESOURCES 3.3 1.5% 28 PEM PERILYA 3.1 1.4% 29 HDF HASTINGS DIV UT

  22. Slide 22: Top Investments - August 2006 con't

    Top 40 Investments - 31 August 2006 con’t 31 AEU AUST EDUCATION TRUST 3.0 1.4% 32 AUS AUSELECT 2.9 1.4% 33 OKN OAKTON 2.9 1.3% 34 ASZ ASG GROUP 2.9 1.3% 35 IRE IRESS MARKET TECHNOLOGIES 2.9 1.3% 36 WAN WA NEWSPAPERS 2.8 1.3% 37 WLL WELLCOM GROUP 2.8 1.3% 38 FKP FKP PROPERTY GROUP 2.7 1.2% 39 SSX SMO

  23. Slide 23: Campbell Brothers

    Campbell Brothers ƒ Operates analytical laboratories worldwide: ¾ mining and mineral exploration ¾ environmental monitoring ¾ equipment monitoring & maintenance ¾ certification. ƒ Manufacturer and distributor of chemicals ƒ Provides washroom, cleaning, security and pest control services. ƒ Supplier

  24. Slide 24: Macquarie Communications

    Macquarie Communications ƒ Provides television and radio transmission: ¾ core business is to provide transmission for the ABC and SBS plus regional broadcasters ¾ covers 99% of the Australian population via 600 transmission sites. ƒ Owns 54% of Aquiva: ¾ major provider of radio and television transm

  25. Slide 25: Major Purchases Since June 2006

    Major Purchases Since 30 June 2006 New Stocks: ƒ Austbrokers – Insurance Broker/Financial services ƒ Paperlinx – Paper manufacturing and distribution Existing Stocks: ƒ Australian Infrastructure Fund – Airports/Infrastructure ƒ Macquarie Communications Group – Communications Infrastructure

  26. Slide 26: Major Sales Since June 2006

    Major Sales Since 30 June 2006 Disposed of: ƒ Excel Coal ƒ Macquarie Airports Reduced holding in: ƒ Transurban ƒ Boom Logistics

  27. Slide 27: Outlook

    Outlook ƒ Positives ¾ Housing and retail sales recovering with employment, non-residential construction, resources strong ¾ Corporate balance sheets generally in good shape ¾ M&A activity has become a feature of the market ¾ Australia in the longer term benefiting from the continuing demand from Chi

  28. Slide 28: Outlook (contd.) Negatives

    Outlook (contd.) ƒ Negatives ¾ In general earnings came in at the lower end of expectations ¾ Margin pressure emerging from rising labour and other input costs ¾ Outlook comments from companies generally cautious

  29. Slide 29: Outlook (contd.) Strategy

    Outlook (contd.) ƒ Strategy ¾ Still cautious. ¾ Cash near end of September was 8%. ¾ Look for opportunities on the back of any market correction or stock specific opportunity.

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