NAOS Emerging Opportunities Co. Ltd. · ASX:NCC
NAOS Emerging Opportunities — Q1 FY2018 Earnings Presentation
23 slides from NAOS Emerging Opportunities's earnings presentation, Oct 30, 2017
Slide 1: Quarterly Investor Briefing Q1 FY2018
For personal use only QUARTERLY INVESTOR BRIEFING Q1 FY2018 NAOS EMERGING OPPORTUNITIES COMPANY LIMITED (ASX: NCC)
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only This material has been prepared by NAOS Asset Management Limited (ABN 23 107 624 126, AFSL 273529) (NAOS) for general information purposes only and must not be construed as investment advice. It does not constitute an offer to purchase any security or fina
Slide 3: Call Details
CALL DETAILS For personal use only Date Monday, 30 October 2017 Time 2:15 pm AEDT Telephone Within Australia: 1800 857 029 Outside Australia: +61 3 8687 0635 New Zealand: 0800 449 288 Guest Access Code 1084 2873# Questions Please email all questions to enquiries@naos.com.au prior to the allotted cal
Slide 4: NCC Agenda
NCC AGENDA For personal use only 1. NCC Q1 FY18 • Performance • Capital Analysis Review • Portfolio Characteristics • Stock Contribution (Since Inception) • Dividend History • Total Return • Net Industry Exposure • Net Equity Exposure • Company Meetings 2. Market Outlook • Sustainable Economic Growt
Slide 5: 1. NCC Review
For personal use only 1. NCC Review ”It is impossible to produce a superior return unless you do something different to the majority” Sir John Templeton
Slide 6: NCC Performance
NCC PERFORMANCE For personal use only 1 Month 1 Year 2 Years 3 Years 4 Years Inception Inception (p.a.) (p.a.) (p.a.) (p.a.) (nom.) NCC Investment Portfolio -1.24% +4.33% +24.34% +13.46% +13.51% +18.96% +121.95% Performance* Benchmark +1.31% +2.98% +15.32% +8.15% +6.03% +4.18% +20.66% XSOAI# Relativ
Slide 7: NCC Capital Analysis
NCC CAPITAL ANALYSIS As at 30 September 2017 For personal use only NTA $1.38 $1.36 $1.30 Pre Tax NTA Post Tax & Pre Post Tax NTA Unrealised Gains Tax SHARE PRICE $1.43 3.62% Share Price Premium to Pre Tax NTA SHARES ON ISSUE 59,173,393 DIRECTORS SHAREHOLDING 3,829,879 NUMBER OF HOLDINGS 12 Long Term
Slide 8: NCC Portfolio Characteristics
NCC PORTFOLIO CHARACTERISTICS For personal use only As at 30 September 2017 POSITIVE MONTHS 71% 56% XSOAI# STANDARD DEVIATION 11.00% 13.36% XSOAI# DOWNSIDE DEVIATION 5.76% 7.29% XSOAI# CORRELATION OF RETURNS TO 0.55 XSOAI SORTINO RATIO 2.89 PORTFOLIO BETA 0.04 # XSOAI refers to the S&P/ASX Small Ord
Slide 9: NCC Positive Stock Attribution Summary (Since Inception)
NCC POSITIVE STOCK ATTRIBUTION SUMMARY (SINCE INCEPTION) AS AT 30 SEPTEMBER 2017 For personal use only Positive Stock Contribution Analysis (Contribution is what has attributed to NCC’s performance since inception of 1 March 2013) The table below lists the top positive contributors to NCC’s total re
Slide 10: NCC Dividend History
NCC DIVIDEND HISTORY AS AT 30 SEPTEMBER 2017 For personal use only Net Yield 4.90% | Franking 100% | Gross Yield 7.00% Fully Franked Dividends $0.08 $0.0675 $0.0700 $0.07 $0.0625 $0.0575 $0.06 $0.05 Part Year $0.04 $0.0250 $0.03 $0.02 FY2013 FY2014 FY2015 FY2016 FY2017 Long Term Value Investing | Co
Slide 11: NCC Total Return
NCC TOTAL RETURN AS AT 30 SEPTEMBER 2017 For personal use only $0.45 Historical Shareholder Return Breakdown* $0.40 $0.3800 $0.35 $0.30 $0.2475 $0.25 $0.20 $0.1400 $0.15 $0.1060 $0.10 $0.05 Franking NCCO Options Dividends (Net) NTA (Pre-Tax) *All figures as at 30 September 2017. Assumes an intrinsic
Slide 12: NCC Net Industry Exposure
NCC NET INDUSTRY EXPOSURE AS AT 30 SEPTEMBER 2017 For personal use only 30.88% Diversified Financials 25.51% Commercial Services 12.27% Media 12.19% Materials 11.56% Telecommunications 3.48% Food & Beverage 3.01% Capital Goods 0.23% Consumer Durables 0% 10% 20% 30% 40% Long Term Value Investing | Co
Slide 13: NCC Net Equity Exposure
NCC NET EQUITY EXPOSURE AS AT 30 SEPTEMBER 2017 For personal use only Net Equity Weighting Cash and Cash Equivalents Weighting Short Exposure 120% 100% 99.13% 80% 60% 40% 20% 0.87% 0% -20% -40% Long Term Value Investing | Copyright 2017 NAOS Asset Management Limited 13
Slide 14: NCC Company Meetings
NCC COMPANY MEETINGS For personal use only The NAOS investment philosophy is based around the belief that for a company to succeed and generate strong returns for shareholders it must be led by a motivated, proven and experienced management team. The NAOS Investment Team has direct contact with many
Slide 15: 2. Market Outlook
2. Market Outlook For personal use only “ It's a huge amount, one and half times the size of the mining boom, and people tend to lose sight of it [new infrastructure spending] because it's scattered around Australia.” Craig James, Commsec
Slide 16: Sustainable Economic Growth
SUSTAINABLE ECONOMIC GROWTH For personal use only Long Term Value Investing | Copyright 2017 NAOS Asset Management Limited 16
Slide 17: Sustainable Economic Growth
SUSTAINABLE ECONOMIC GROWTH For personal use only Source: NAB Monthly Business Survey September 2017 Long Term Value Investing | Copyright 2017 NAOS Asset Management Limited 17
Slide 18: NCC Stocks
NCC 3 STOCKS For personal use only CML Group (ASX: CGR) • Market Cap $64m • Professional Services • Held in NCC since: early 2014 BSA Limited (ASX: BSA) • Market Cap $143m • Commercial Services • Held in NCC since: late 2014 Long Term Value Investing | Copyright 2017 NAOS Asset Management Limited 18
Slide 19: NCC Stocks
NCC 3 STOCKS For personal use only Consolidated Operations Group (ASX:COG) • Equipment Finance • Market Cap $150m • Held in NAOS since: mid 2013 Long Term Value Investing | Copyright 2017 NAOS Asset Management Limited 19
Slide 20: NAOS Investment Beliefs
NAOS INVESTMENT BELIEFS For personal use only We believe success is achieving returns for our investors, over a three to five year period, better than and without correlation to the broader market with less risk of permanent capital loss. We see value in the sharing of ideas with our investment comm
Slide 21: 3. Keeping up to Date
3. Keeping For personal use only up to Date “Superior results don’t come from buying high quality assets, but from buying assets – regardless of quality – for less than they’re worth. It’s essential to understand the difference between buying good things and buying things well.” Howard Marks
Slide 22: Investor Awareness and Communications
INVESTOR AWARENESS AND COMMUNICATIONS For personal use only CEO Insights, Quarterly Monthly The news and Twice yearly Weekly NAOS Shareholder Investment Report media section of National Newsletter, Conference Calls, & NTA email our website is Roadshow subscribe via our subscribe via our updates, sub
Slide 23: NAOS Team
NAOS TEAM For personal use only THE BOARD Sebastian Evans Mark Bennett Warwick Evans David O’Halloran David Rickards Managing Director, NAOS Asset Director, NAOS Asset Chairman, NAOS Asset Director, NAOS Asset Chairman & Director, Management Limited & Management Limited Management Limited & Manageme
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