JZ Capital Partners Limited · LSE:JZCP
JZ Capital Partners — FY2013 Earnings Presentation
22 slides from JZ Capital Partners's earnings presentation, April 2013
Slide 1: 2012 Preliminary Results Presentation
2012 Preliminary Results Presentation
Slide 2: Disclaimer
This Document and the presentation to which it relates (‘Presentation’) do not constitute or form part of, and should not be construed as, an issue for sale or subscription of, or solicitation of any offer or invitation to subscribe for, underwrite or otherwise acquire or dispose of any securities o
Slide 3: Contents
Contents Investment strategy Highlights Financial performance Investment and realisation activity Portfolio review Outlook 3
Slide 4: Our investment strategy
Our investment strategy Focus on strategic build-ups in the inefficient micro cap market in the US and Europe Team with experienced management and seasoned senior operating executives that provide supervision and strategic advice Five executives to date – hands-on operating industry profession
Slide 5: Highlights
Highlights • Total shareholder return of 43% driven by stock price increase and dividends paid • NAV discount narrowed from 38% to 18% (30 April 2013) • NAV per share increased to US$10.02 before dividends of Performance 32.5 cents; US$9.69 after • Total NAV return of 6% (including dividend payments
Slide 6: Financial performance
Financial performance US$ 000 FYE US$ 000 FYE NAV per share of US$9.69 (FYE 2/12 : US$9.47) 2/13 2/12 Total shareholder return for the period of 43% Investments 596,473 493,757 Cash and cash 134,549 235,948 equivalents Other liabilities- 11,553 8,662 Record full year distribution 32.5 cents per shar
Slide 7: Net asset value development
Net asset value development Investment performance has driven NAV growth $0.12 $0.63 ($0.11) ($0.33) ($0.37) ($0.05) $0.18 $9.47 $0.05 NAV per Value of Private Value of Public Income from Escrows received ZDP Dividend Dividends Paid Fees and Other NAV per Ordinarty Share Investments Investments Inve
Slide 8: Share price and NAV per share performance
Share price and NAV per share performance Total shareholder returns NAV total returns 48% 99% 43% 15% NAV to market price discount 3% 6% 3 months 1 year Three years 41% 38% 3 months 1 year Three years 26% 22% 28/02/2010 29/02/2012 30/11/2012 28/02/2013 8
Slide 9: Investment activity
Investment activity Since 29 February 2012 US$ million Invested in 11 businesses in our existing 5 US 90.8 Verticals Made investments in 4 co-investment businesses 40.0 Invested in properties in Brooklyn, NY 38.1 Invested in European Micro Cap businesses 17.1 Other 14.7 200.7 9
Slide 10: Realisation activity
Realisation activity Since 29 February 2012 US$ million Sale of Horsburgh and Scott 33.7 TAL secondary sale 42.1 Refinancing of current portfolio company debt 11.8 Redemption of bank debt portfolio 23.9 Redemption of mezzanine portfolio 28.9 Warrants, escrows, other 5.5 145.9 10
Slide 11: Portfolio review
Portfolio review Real estate - 4% Industry Gaming - 1% Geography Financial services - >1% Brazil - 1% Cash & cash equivalents - 18% Industrial - 32% Cash & cash equivalents - 18% Service - 15% US - 66% Healthcare - 10% Banking - 4% Europe - 15% Insurance - 8% Transportation/ logistics - 3% Consumer
Slide 12: US micro cap verticals
US micro cap verticals Verticals are sector driven “build ups” created to add value through operational synergies across businesses and through exit multiple expansion • Managed by Jim Rogers, a GE veteran • Consists of: • Mid American Machine (June 2011) Industrial Services • Southern Parts (August
Slide 13: US micro cap verticals
US micro cap verticals Bolder • Managed by Mike Shea, a seasoned individual Healthcare, a who has done this before successfully revenue cycle • Currently consists of MEDS, a patient management qualification business for hospitals business for • For FYE 2/13, $17.8 million of revenues and hospitals a
Slide 14: US micro cap verticals
US micro cap verticals • Managed by Phil Rooney, an experienced executive in a wide variety of industries Testing • Consists of : Services, a • Accutest (April 2007) laboratory and laboratory services • Argus Group (July 2012) business • Galson Labs (May 2010) • For FYE 2/13, $112.2 million of reven
Slide 15: US micro cap co-investments
US micro cap co-investments New Vitality (April 2010), a vitamin and supplements business ● Co-Investment with Baird Capital Partners MedPlast/ UPG (April 2012), a precision plastics moulding business ● Co-Investment with Baird PC Helps (September 2012), a provider of “how to” support for software u
Slide 16: European micro cap
European micro cap • Strategically important region for JZCP, now representing 14.7% of gross assets • Healthy investment pipeline across Europe • Offices in London and Madrid led by Jock Green -Armytage and Miguel Rueda Team & • Outstanding team with over twelve years of Experience investing with D
Slide 17: European micro cap investments
European micro cap investments Factor Energia, a energy/utility distribution and reselling business which focuses on SMEs in Spain ● For FYE 2/13, €254m of revenues and €10.3m of EBITDA Xacom, a telecoms products business in Spain ● For FYE 2/13, €9.3m of revenues and €2.0m of EBITDA Docout, a provi
Slide 18: Real estate
Real estate • Similar to our micro cap business, invests with a proven entrepreneurial management team • Purchases properties in negotiated (vs auctioned) sales • Four properties at year end • Almost a square block on Bedford Street in the Williamsburg sector of Brooklyn. Retail and residential spac
Slide 19: Outlook
Outlook Financial condition remains Trifecta achieved of higher share price, NAV and narrowed discount strong New dividend policy provides more predictable dividends Simplification of capital structure and SFM Healthy pipeline listing to increase access for US investors Positive outlook - we
Slide 20: Appendix
Appendix JZ CAPITAL PARTNERS LIMITED
Slide 21: About us
About us JZ Capital Partners Limited is one of the oldest closed ended investment companies listed on the Specialist Fund Market of the London Stock Exchange Approximately $730 million of gross assets Principally invests in US and European micro cap companies Guernsey resident — tax efficien
Slide 22: Major holdings
Major holdings % of gross Company Type Value (US$ 000) assets Safety Insurance Group, Inc. Listed equities 54,292 7% Factor Energia, S.A. European micro cap 52,032 7% BG Holdings, Inc. Micro cap 33,884 5% Accutest Holdings, Inc. Micro cap 26,169 4% Dental Services Group, Inc. Micro cap 26,097 4% Amp