Cadence Capital Limited · ASX:CDM
Cadence Capital — Shareholder Meeting (November 2017)
24 slides from Cadence Capital's shareholder meeting presentation, Nov 21, 2017
Slide 1: AGM and Investor Briefing
Cadence Capital Limited For personal use only AGM and Investor Briefing 21 November 2017
Slide 2: 2017 Results at a Glance
2017 Results at a Glance For personal use only ▪ Record Profit before tax of $47.0 million, up 200%. ▪ Record Profit after tax of $37.0 million, up 220%. ▪ EPS of 13.5 cents, up 216%. ▪ Fund gross performance of 17.2% outperforming the All Ordinaries Accumulation Index by 4.1%. ▪ This performance wa
Slide 3: Portfolio Performance
Portfolio Performance For personal use only ▪ Stocks that performed well last financial year : ▪ Melbourne IT ▪ Macquarie Group ▪ Samsung Electronics Co ▪ Softbank Group ▪ Janus Henderson Group ▪ Alphabet Inc. ▪ Monadelphous Group. ▪ Stocks that under performed last financial year: ▪ Independence Gr
Slide 4: YTD Performance
YTD Performance For personal use only Performance* to 17th November 2017 CDM All Ords Accum Outperformance MTD (Estimate) 3.0% 1.4% +1.6% YTD 13.1% 6.6% +6.5% 1 Year 23.6% 14.3% +9.3% 3 Years (per annum) 9.3% 9.0% +0.3% 5 Years (per annum) 10.1% 10.6% -0.5% 8 Years (per annum) 15.9% 7.6% +8.3% 10 Ye
Slide 5: CDM Dividend Information
CDM Dividend Information For personal use only Calendar Year Interim Final Special Total Gross (Inc. Franking) 2007 2.0c 2.0c 2.0c 6.0c 8.6c 2008 2.5c 2.2c* - 4.7c 5.8c 2009 - 2.0c - 2.0c 2.9c 2010 2.0c 2.0c - 4.0c 5.7c 2011 3.0c 3.0c 3.0c 9.0c 12.9c 2012 4.0c 4.0c 4.5c 12.5c 17.8c 2013 5.0c 5.0c 1.
Slide 6: Share Purchase Plan (SPP) & Placement
Share Purchase Plan (SPP) & Placement For personal use only ▪ CDM completed a Share Purchase Plan (SPP) and Placement which raised a combined total of $50.0 million. ▪ All eligible shareholders who applied for the SPP received their full allocation of shares. ▪ The SPP and placement received strong
Slide 7: Top Holdings
Top 20 Holdings For personal use only Code Position Direction Currency Holding MLB Melbourne IT Ltd Long AUD 18.1% MQG Macquarie Group Ltd Long AUD 11.2% JHG Janus Henderson Group Plc Long AUD 6.2% 5930 KS Samsung Electronics Co Ltd Long USD 5.6% 9984 JP Softbank Group Corp Long AUD 4.7% ANZ Austral
Slide 8: Discount and Premium to Post Tax NTA
Discount and Premium to Post Tax NTA For personal use only 20.0% 15.0% 10.0% 5.0% 0.0% -5.0% -10.0% ▪ Some competitor LICs are trading at a 15%-30% premium to NTA 8
Slide 9: CDM franking since listing (Oct 2016)
CDM franking since listing (Oct 2016) For personal use only 75.5% 26.6% 10.9% 135.3% 20.5% 75.7% 3.0% 63.3% 1.5% 28.7% 13.2% 15.5% 9
Slide 10: Melbourne IT Ltd
Melbourne IT Ltd (ASX: MLB) For personal use only Stock Profile Fundamental Analysis ▪ MLB still growing strongly and displaying a good Long Position PEG, operating cash flow and free cash flow numbers EPS Growth 48% ▪ Share price has moved from $1.11 to $3.60 and PE 22x fundamentals still look stro
Slide 11: Melbourne IT Ltd – Long Position
Melbourne IT Ltd – Long Position For personal use only $3.50 $3.00 Continued adding to our position $2.50 Initial position April 2013 $2.00 $1.50 $1.00 $0.50 * Chart adjusted for 54 cents capital return and 25 cents special dividend 11
Slide 12: Macquarie Group Ltd (ASX MQG)
Macquarie Group Ltd (ASX MQG) For personal use only Fundamental Analysis Stock Profile ▪ MQG share price has moved up from first purchase around $24 and has since spun off Long Position SYD (Sydney Airports) EPS Growth 7.5% ▪ MQG dividends have grown significantly and PE 15x company has implemented
Slide 13: Macquarie Group Ltd – Long Position
Macquarie Group Ltd – Long Position For personal use only $120.00 $100.00 Buy Buy Sell $80.00 $60.00 Initial position Jan 2012 $40.00 $20.00 $0.00 13
Slide 14: Samsung Electronics Co Ltd (005930 KS)
Samsung Electronics Co Ltd (005930 KS) For personal use only Stock Profile Fundamental Analysis ▪ Samsung is on a very attractive PEG, operating Long Position cash flow and free cash flow multiples looking forward one year EPS Growth 19% ▪ Fundamentals are good even after the stock PE 7.6x price is
Slide 15: Samsung Electronics – Long Position
Samsung Electronics – Long Position For personal use only ₩3,500,000 ₩3,000,000 ₩2,500,000 Buy ₩2,000,000 Buy Buy Sell Sell ₩1,500,000 ₩1,000,000 ₩500,000 ₩0 15
Slide 16: Emeco Holdings Ltd (ASX EHL)
Emeco Holdings Ltd (ASX EHL) For personal use only Stock Profile Fundamental Analysis ▪ Legacy high leverage improved via creditor Long Position restructure EPS Growth 89% ▪ Industry consolidation via 3 way merger PE 19x ▪ Industry headwinds transformed to tailwinds PEG 0.2 courtesy of mining and in
Slide 17: Emeco Holdings Ltd – Long Position
Emeco Holdings Ltd – Long Position For personal use only $0.30 Buy (capital raising @ 21c) $0.25 Buy $0.20 Buy Buy $0.15 $0.10 $0.05 $0.00 17
Slide 18: Macmahon Holdings Ltd (ASX MAH)
Macmahon Holdings Ltd (ASX MAH) For personal use only Stock Profile Fundamental Analysis ▪ Change in management, with under-performing Long Position management gone EPS Growth 106% ▪ Turnaround at Telfer which was losing $20m EBIT, looking at break even for 2018. PE 9.5x PEG 0.1 ▪ Significant deal a
Slide 19: Macmahon Holdings – Long Position
Macmahon Holdings – Long Position For personal use only $0.30 Buy Buy $0.25 Buy $0.20 $0.15 $0.10 $0.05 $0.00 19
Slide 20: Domino's Pizza Enterprises (ASX DMP)
Domino's Pizza Enterprises (ASX DMP) For personal use only Fundamental Analysis Stock Profile ▪ DMP FY17 profit was below guidance and the shares have fallen significantly. Short Position ▪ There has been significant negative media coverage over the year regarding underpayment of staff in stores, an
Slide 21: Domino's Pizza – Short Position
Domino's Pizza – Short Position For personal use only $90.00 Sell $80.00 Sell $70.00 Sell $60.00 $50.00 $40.00 $30.00 $20.00 $10.00 21
Slide 22: Resource Thesis
Resource Thesis For personal use only ▪ S&P/ASX 200 Resources reached a low of 2,000 in January 2016 and is up 90% since. Is it a bull market yet? ▪ Iron ore & coal have been strong and more recently some base metals and rare earths 8,000 6,000 Buy Buy Sell 4,000 2,000 0 ▪ Cadence has been scaling i
Slide 23: Outlook
Outlook For personal use only ▪ Cadence has generated strong returns and outperformance on both domestic and international positions ▪ One year ago the market was predominantly ‘bearish’ and ‘fearful’ and a year on we are starting to see the first tentative signs of synchronised global growth and a
Slide 24: Disclaimer
Disclaimer For personal use only The information contained in this report has been prepared with all reasonable care by Cadence Asset Management Pty Ltd and is of a general nature only. It is provided for information purposes only and should not be construed as an offer or solicitation. Nothing cont
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