Mirrabooka Investments Ltd · ASX:MIR
Mirrabooka Investments — Shareholder Meeting (September 2009)
30 slides from Mirrabooka Investments's shareholder meeting presentation, Sep 24, 2009
Slide 1: 2009 Annual General Meeting Chairman's Presentation
24 September 2009 For personal use only The Manager Company Announcements Office Australian Securities Exchange Limited Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Announcement Mirrabooka Investments Limited 2009 Annual General Meeting Chairman’s Presentation Dear Sir or Mada
Slide 2: Annual General Meeting September 2009 Presentation
For personal use only Mirrabooka Investments Limited Annual General Meeting 24 September 2009 Presentation
Slide 3: Operating Profit was up marginally
Operating Profit was up marginally as lower For personal use only dividends received were offset by higher option income and deposit interest Major Changes in 10 Operating Profit 9 $1.8m less in $8.3m $8.4m dividends received 8 $ million Trading & options 7 income was $1.2m whereas last year 6 was n
Slide 4: Judging by Operating Profit while complying with IFRS
Whilst we judge ourselves by the Operating Profit For personal use only we must comply with Australian equivalents of the International Financial Reporting Standards Auditors required an impairment charge where a holding : was below its accounting cost base for a minimum of 15 months, or its market
Slide 5: Accounting Result impacted by unrealised losses
As a result, the Accounting Result was impacted For personal use only by these unrealised losses The unrealised impairment charge of $15.5 million helped turn the $8.4 million Operating Profit to an accounting loss of $6.8 million If the balance date had been last Thursday, 17 September the impairme
Slide 6: How we judge ourselves: Operating Profit and Net Asset Backing
We will always report under whatever accounting For personal use only rules apply but we judge ourselves by the: Operating Profit Net Asset Backing per share
Slide 7: Final dividend sourced partially from reserves
Final dividend sourced partially from reserves, For personal use only including previous realised gains 30 25 Cents per share 20 15 10 5 0 2005 2006 2007 2008 2009 Financial year Net operating profit per share Realised gains per share Dividends per share
Slide 8: Our thinking on dividends
Our thinking on dividends For personal use only Dividends have declined by approximately 25% Mirrabooka has a history of sourcing dividends from realised gains and retained earnings Directors are conscious franking credits and LIC gains are valuable to our shareholders Level of dividends paid will b
Slide 9: Top Contributors to the Portfolio
Top 5 Contributors by $ value to the Portfolio For personal use only Performance for year to 30 June 2009 $m % COMPANY change change Iress Market Technology 1.3 23.6% Coca-Cola Amatil 1.1 26.3% Healthscope 1.0 15.8% Tox Free Solutions 0.9 17.0% REA Group 0.8 38.1%
Slide 10: Largest Acquisitions
For personal use only Largest 5 Acquisitions - (1/7/08-30/6/09) COMPANY $m Alumina 6.0 OneSteel 3.4 Australian Infrastructure Fund 2.4 Crane Group 2.2 Iluka Resources 2.2
Slide 11: Largest Disposals
Largest 5 Disposals - (1/7/08 to 30/6/09) For personal use only COMPANY $m Origin Energy 10.8 Queensland Gas Company 6.6 Computershare 4.0 Cabcharge 3.6 ConnectEast Group 3.6
Slide 12: Markets have recovered lost ground over the year
Markets have recovered lost ground over For personal use only the year 2.0% -2.0% -6.0% -10.0% -14.0% -18.0% -22.0% -26.0% -30.0% -34.0% -38.0% -42.0% -46.0% -50.0% -54.0% 8 09 09 09 9 8 8 8 9 8 9 9 9 8 -0 -0 -0 -0 -0 l-0 -0 -0 l-0 -0 -0 n- n- b- ov ec ar ug ep ug ay pr ct Ju Ju Ja Ju Fe M O A N M D
Slide 13: Small and Mid cap sectors have been very strong
Small and Mid cap sectors have been very strong For personal use only since the low point in March 70.0% 60.0% 50.0% 40.0% 30.0% 20.0% 10.0% 0.0% 27 09 10 l-09 15 -09 -M 9 9 20 -09 24 -09 9 4- 09 29 -09 13 09 9 9 -0 -0 -0 -0 -0 - - - ul n ay ar r un un ay ar ug ug pr u Ap Ju -J -J M -M -A M -J -J -A
Slide 14: Why have small and mid cap sectors bounced so strongly?
Why have the small and mid cap sectors For personal use only bounced so strongly? significantly oversold during the downturn these sectors generally more exposed to the domestic economy which has performed better than expected recent profit results in line with expectations – no major negative surpr
Slide 15: Performance since the rights issue shares were allotted
How have we done since the rights issue shares For personal use only were allotted at the end of February 2008? 10% 5% 0% -5% -10% Mirrabooka -15% -20% -25% -30% -35% -40% -45% -50% Mid Caps -55% -60% Small Ordinaries -65% 8 08 09 8 9 A 8 A 9 8 N 8 9 Fe 9 8 9 M 8 M 9 M 8 M 9 8 8 -0 -0 -0 -0 -0 l-0 l
Slide 16: Cash position healthy
Cash position healthy – reduction reflects market For personal use only investments and final dividend payment $m 50 45 40 35 30 25 20 15 10 5 0 Jun06 Sep06 Dec06 Mar07 Jun07 Sep07 Dec07 Mar08 Jun08 Sep08 Dec08 Mar09 Jun09
Slide 17: Portfolio Management Performance - % Per Year
Portfolio Management Performance - % Per Year For personal use only 15% 10.7% 10% 8.8% 7.9% 8.0% 5% 1.4% 0% -5% -2.5% 1 year 3 years 5 years 10 years -10% -5.9% -15% -14.5% -20% Annualised to 31 August 2009 MIR net asset per share growth plus dividends S&P/ASX Mid Cap 50 and Small Ordinaries Accumul
Slide 18: Share Price has moved to a premium to Net Asset Backing
Share Price has moved to a premium to Net Asset For personal use only Backing at the end of August 2009 (pre CGT) 8% 4% 0% -4% -8% -12% -16% 5 6 7 8 9 5 06 06 6 07 07 7 08 08 8 09 09 D 5 6 D 6 7 D 7 8 D 8 9 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 -0 b- n- b- n- b- n- b- n- ug ug ug ug ug ec
Slide 19: Top Investments - August 2009
Top 20 Investments - 31 August 2009 For personal use only $m 1 Nufarm 9.6 2 * Oil Search 8.7 3 Healthscope 8.5 4 IRESS Market Technology 7.5 5 Hastings Diversified Utilities Fund 7.0 6 * Alumina 6.9 7 Tox Free Solutions 6.7 8 Australian Infrastructure Fund 6.4 9 * James Hardie Industries NV 6.2 10 O
Slide 20: Top Investments - August 2009 con't
Top 20 Investments - 31 August 2009 con’t For personal use only $m 11 * Coca-Cola Amatil 6.1 12 Iluka Resources 5.9 13 Campbell Brothers 5.9 14 Fleetwood Corporation 5.6 15 Bradken 5.6 16 ASG Group 5.3 17 * Toll Holdings 4.9 18 Equity Trustees 4.5 19 Peet 4.4 20 Mermaid Marine Australia 4.3 126.1 To
Slide 21: Oil Search
Oil Search For personal use only Significant oil and gas resources in PNG 25.5% interest in the proposed world class PNG LNG project Further growth prospects through subsequent expansion of LNG capacity Final Investment Decision (FID) on PNG LNG expected later this year Oil Search’s long history and
Slide 22: IRESS Market Technology
IRESS Market Technology For personal use only Supplies share market and wealth management software Incorporates sophisticated analytical and trading tools, administrative systems, real-time market data & news Dominant player in the Australian/NZ market and resilient performance through the downturn
Slide 23: Alumina
Alumina For personal use only 40% interest in Alcoa World Alumina & Chemicals (AWAC) - the world' s largest alumina business AWAC has low cost operations in bauxite mining, alumina refining and selected aluminium smelting operations Reaching end of high capital expenditure phase from expansion of Br
Slide 24: Tox Free Solutions
Tox Free Solutions For personal use only WA-based provider of industrial and hazardous waste treatment services Significant leverage to the ongoing strength in resources projects in North-Western Australia Incinerator in Port Hedland and liquid waste plant in Karratha are strategic assets Integratio
Slide 25: Major Purchases Since July 2009
Major Purchases Since 1 July 2009 For personal use only Existing Stocks: Hastings Diversified Utilities Fund (participation in placement) – investor in utility infrastructure assets, primarily gas transmission pipelines in Australia (Epic Energy Holdings) Gunns (participation in placement) – forestr
Slide 26: Major Purchases Since July 2009 con't
Major Purchases Since 1 July 2009 con’t. For personal use only New Stocks: CFS Retail Property Trust – investor in high quality regional and sub-regional shopping centres across Australia. Its assets include Chadstone in Melbourne, Chatswood Chase in Sydney and the Myer Centre in Brisbane
Slide 27: Major Sales Since July 2009
Major Sales Since 1 July 2009 For personal use only Disposed of: ABB Grain (prior to takeover by Viterra) Reduced holdings in: Oakton Mermaid Marine
Slide 28: Outlook
Outlook For personal use only The Government’s stimulus package is helping the Australian economy Recent comments from Governor of Reserve Bank point to higher interest rates Profit results generally in line with expectations – company balance sheets generally sound Companies have reduced fixed cost
Slide 29: Outlook con't.
Outlook con’t. For personal use only Environment has improved but outlook comments from companies still generally subdued Given the recent rally in share prices valuations are more challenging Mirrabooka has some cash but we will be cautious It is likely we have seen the low point for earnings and d
Slide 30: Annual General Meeting September 2009
For personal use only Annual General Meeting 24 September 2009
Mirrabooka Investments — Shareholder Meeting (September 2009) on 6ix