NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — Q2 2025 Earnings Presentation
45 slides from NAOS Ex-50 Opportunities's earnings presentation, Feb 4, 2025
Slide 1: Q2 FY25 Investor Update and Q&A - Presentation Materials
NAOS Ex-50 OPPORTUNITIES COMPANY LIMITED (ASX: NAC) ABN 49 169 448 837 4 February 2025 ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 Q2 FY25 Investor Update and Q&A - Presentation Materials For personal use only Please find attached the presentation materials for the Q2 FY25 I
Slide 2: Q2 FY25 Investor Update and Q&A
Click Here to Register Now For personal use only Q2 FY25 Investor Update and Q&A Tuesday 4th February 2025 | 10:30am (AEDT)
Slide 3: Important Information
Important Information 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 financial product or servi
Slide 4: Acknowledgement of Country
Acknowledgement of Country For personal use only We acknowledge the Traditional Owners of Country throughout Australia and recognise their continuing connection to lands, waters and communities. We pay our respect to Aboriginal and Torres Strait Islander cultures; and to Elders past and present. CON
Slide 5: We are NAOS
We are NAOS We are active, long-term investors in emerging companies. Our aim is to compound For personal use only shareholders’ capital and deliver dividend growth over the long-term and we have a resolute commitment to investing our capital alongside our shareholders. With a focus on quality over
Slide 6: Portfolio Composition – Emerging Companies
Portfolio Composition – Emerging Companies The NAOS LICs have exposure to emerging companies with unique moats, often benefiting from structural industry changes. For personal use only Industry Exposure Market Capitalisation Buckets Investment type Financial Services Building Materials Construction/
Slide 7: Get to Know NAOS
Get to Know NAOS For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2025 NAOS Asset Management Limited 6
Slide 8: How We Invest & Why We Are Different
How We Invest & Why We Are Different For personal use only *Portfolio Weighted Average Calculations as at 31 December 2024 CONVICTION. LONG TERM. ALIGNED | Copyright 2025 NAOS Asset Management Limited 7
Slide 9: Investment Portfolio Performance Summary
Investment Portfolio Performance Summary For personal use only 1 Year 3 Year 5 Year Inception Q2 FY25 Performance Performance Performance (p.a.) Performance (p.a.) Performance (p.a.) NAOS LIC Benchmark^ NAOS LIC Benchmark^ NAOS LIC Benchmark^ NAOS LIC Benchmark^ NAOS LIC Benchmark^ NCC Investment Po
Slide 10: Q2 FY25 – Overview & Summary
Q2 FY25 –Overview & Summary An eventful end to 2024 with the following notable events occurring: For personal use only Donald Trump voted in as US president. US Federal Reserve cut interest rates by 100 basis points (albeit with a recent hawkish outlook). Annual General Meetings (AGMs) held fo
Slide 11: Q2 FY25 – Overview & Summary: US Bond Yield vs Mortgage Rates
Q2 FY25 –Overview & Summary Bond yields in the US have started to increase once again, leading to fixed mortgage rates of >7% For personal use only US 10 Year Bond Yield Vs 30 Year Mortgage Rates 9.0 9.0 8.0 8.0 7.0 7.0 6.0 6.0 Mortgage Rate (%) 5.0 5.0 Yield (%) 4.0 4.0 3.0 3.0 2.0 2.0 1.0 1.0 0.0
Slide 12: Q2 FY25 – Overview & Summary: US GDP Growth
Q2 FY25 –Overview & Summary But for now, growth in the world’s largest economy remains highly resilient For personal use only US GDP Growth 7.00% 6.00% 5.00% 4.00% 3.00% Growth Rate (%) 2.00% 1.00% 0.00% 2019 2020 2021 2022 2023 2024 -1.00% -2.00% -3.00% Source – Trending Economics CONVICTION. LONG
Slide 13: Q2 FY25 – Overview & Summary: US Government Debt to GDP
Q2 FY25 –Overview & Summary With near record high debt to GDP levels, it’s hard to see how potential tax cuts and/or increases in US government spending can be enacted in the short term. For personal use only Total US Government Debt as Percentage of GDP 140% 120% 100% Debt to GDP (%) 80% 60% 40% 20
Slide 14: CY24 Equity Market Returns
CY24 Equity Market Returns CY returns in domestic equities driven >90% by valuation increases and dividends with negligible profit growth. For personal use only S&P/ASX-100 Accumulation Index +11.7% (-0.8% Q4) S&P/ASX Small Ordinaries Accumulation Index +8.4% (-1.0% Q4) Notable sector perfor
Slide 15: CY Equity Market Returns
CY 24 Equity Market Returns Flow of passive money continued in CY24, pushing valuations to record levels for bank shares especially relative to their respective growth profiles. For personal use only EPS Growth - 1 EPS Growth - Ticker Company Name Market Cap ($bn) 1 Year Total Return P/E year 5 Ye
Slide 16: The NAOS Perspective
The NAOS Perspective The downgrade cycle for many businesses over the past 2-years should subside in February reporting For personal use only season. We expect to see signs of earnings growth in emerging companies: Cost initiatives often take 12 months to flow through to tangible earnings bene
Slide 17: The NAOS Perspective
The NAOS Perspective The macro environment may prove beneficial for our investments: For personal use only A lower risk-free rate could lead to renewed investor demand for emerging companies. Reducing and stabilising inflation allows businesses to more effectively manage costs. A stable econ
Slide 18: Darc Rasmussen
For personal use only Darc Rasmussen Non-Executive Director at Objective Corporation (ASX: OCL) and Gentrack Group Limited (ASX: GTK). Board Chair at Urbanise.com (ASX: UBN) CONVICTION. LONG TERM. ALIGNED | Copyright 2025 NAOS Asset Management Limited 17
Slide 19: Australian Strata Market Dynamics February 2025
For personal use only Australian Strata Market Dynamics 4 February 2025 ©Urbanise.com | 18 |
Slide 20: Agenda – Strata Growth Drivers, Industry Challenges, Inflection Point Opportunity
For personal use only Agenda 1 – Strata Growth Drivers 2 – Industry Challenges 3 – Inflection Point Opportunity | 19 |
Slide 21: Industry Organic Growth 2024-2029: 25%
Industry Organic Growth 2024-2029 : 25% Australia is one of the world’s most urbanised countries, with For personal use only 90% of the population living in cities. Housing Shortage Driving Growth Additional 2024 2029 500,000 + Strata Managed Dwellings by 2029 Dwellings 11.25m 12.7m 13 % 2024 2029 4
Slide 22: Strata Banking Market
Strata Banking Market KEY PROFIT METRIC FOR BANKS For personal use only ~$9.6+ Net Interest Margin (NIM) Billion Strata Funds 1.7 Average Bank NIM Deposits across all deposits % 3 Strata Funds NIM ~$19.3+ % Billion Strata Transactions Growth in funds follow the organic growth in per annum lots (~25%
Slide 23: Industry Dilemma: Negative Marginal Returns
Industry Dilemma : Negative Marginal Returns For personal use only | 22 | Lots per FTE : 365 unchanged for 10 years = zero improvement in productivity Source : Macquarie Bank : 2024 Strata Management Benchmarking Report Macquarie Bank : “The future of strata: thriving through change”
Slide 24: State of Industry Technology
State of Industry Technology Technology in Strata For personal use only Strata Software Impacting: ~60% Lack of Automation & Scaling capability DOS/Windows On-premise based systems Work from home / Offshoring Banking Staff hiring costs, training, retention & turnover 100 % Ability to service custome
Slide 25: Simplify, Automate, Self-Serve, Consolidate
Simplify, Automate, Self- Serve, Consolidate For personal use only Owners and Tenants End-to-end Financial Management Budgeting | Levy Management | Arrears Management | Owner and resident Community Banking Integration | Automated Reconciliation | Invoice Processing | Reports Automated Portal with LI
Slide 26: NAOS Investee Companies - Key Events Q2 FY25
NAOS Investee Companies - Key Events Q2 FY25 HOLDING INDUSTRY Q2 UPDATE For personal use only Prescribed List reimbursement achieved for BTC’s replacement infusion pump products (in place of the discontinued Avanos ambIT pumps). Allows for full reimbursement by private health insurers. Entered e
Slide 27: NAOS Investee Companies - Key Events Q2 FY25
NAOS Investee Companies - Key Events Q2 FY25 HOLDING INDUSTRY Q2 UPDATE For personal use only 100% owned subsidiary Mountcastle completed merger with UK uniform company Schoolblazer Ltd. Schoolblazer vendors are now substantial shareholders with a board seat. Creation of a single Global Uniforms
Slide 28: NAOS Investee Companies - Key Events Q2 FY25
NAOS Investee Companies - Key Events Q2 FY25 HOLDING INDUSTRY Q2 UPDATE For personal use only Balance sheet reset is complete. Q1 FY25 results in line with expectations. Turnaround in operating cash flow trajectory continues. ACM Parts division no longer a negative contributor to earnings. Sal
Slide 29: We Remain Highly Optimistic on The Long-Term Outlook
We Remain Highly Optimistic on The Long-Term Outlook Recent AGM Updates For personal use only Overall, AGM updates were positive, and we believe there has been an improvement for many of our core investments such as MOV, AMA, BTC, UBN and MXI. February Reporting Season We expect the earnings
Slide 30: We Remain Highly Optimistic on The Long-Term Outlook
We Remain Highly Optimistic on The Long-Term Outlook Potential Valuation Re-ratings For personal use only Valuation multiples remain close to record lows for many of our investee companies. Potential for significant increase in multiples due to: Net debt free balance sheet positions Earnin
Slide 31: Potential Near-Term Stock Specific Catalysts
Potential Near-Team Stock Specific Catalysts AMA • Sale of ACM Parts with the subsequent proceeds moving AMA close to a net cash balance sheet position. For personal use only COG • Potential sale of non-core assets (EPY, CAF, asset management) and simplification of its business structure. BSA • Outc
Slide 32: Dividends
Dividends NCC Dividend History NAC Dividend History 8.0 7.50 7.50 7.50 8.0 For personal use only 7.00 7.25 7.25 7.25 7.0 6.75 6.25 5.90 6.00 6.00 5.75 5.75 5.75 Cents per Share 6.0 3.75 6.0 5.25 5.25 5.25 4.75 5.00 Cents per Share 5.0 4.0 3.75 4.0 3.0 2.50 2.0 3.75 2.00 2.00 2.0 1.50 1.0 0.0 2H FY13
Slide 33: NAOS Asset Management 1% Pledge
NAOS Asset Management 1% Pledge For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2025 NAOS Asset Management Limited 32
Slide 34: Questions & Answers
Questions & Answers For personal use only Thank you for your ongoing support
Slide 35: Appendix
For personal use only 34 Appendix
Slide 36: Why Invest via a Listed Investment Company?
Why Invest via a Listed Investment Company? We strongly believe LICs are a highly effective structure to give investors the highest quality exposure to specific asset classes, which in the case of NAOS is emerging businesses. For personal use only A Listed Investment Company structure: Allows the
Slide 37: NAOS Directors and Team
NAOS Directors and Team OUR DIRECTORS For personal use only OUR TEAM CONVICTION. LONG TERM. ALIGNED | Copyright 2025 NAOS Asset Management Limited 36
Slide 38: Shareholder Alignment: LIC Directors & Investment Manager
Shareholder Alignment: LIC Directors & Investment Manager Inception Directors Shareholding 31 December 2024 Directors Shareholding For personal use only 10,000,000 9,122,583 9,000,000 8,000,000 7,000,000 NUMBER OF SHARES 5,762,612 6,000,000 5,000,000 4,000,000 2,970,974 3,000,000 2,026,836 2,000,000
Slide 39: Capital Management Initiatives
Capital Management Initiatives Performance • Maintain a focus on long term performance without deviating from the NAOS investment philosophy. For personal use only • Continue to focus on a growing stream of dividends, franked to the maximum extent possible, whilst maintaining Dividends an adequate r
Slide 40: NAOS ESG Framework
NAOS ESG Framework For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2025 NAOS Asset Management Limited 39
Slide 41: Proactive Portfolio Management
Proactive Portfolio Management The NAOS Investment Team conducted 835 meetings during FY24, highlighting our commitment to thorough research and informed decision-making. For personal use only Existing Position Other Competitor to Existing Position Bench NPOF New/Existing Idea Sector/Industry Unlist
Slide 42: What Qualitative Information Sources Does NAOS Use?
What Qualitative Information Sources Does NAOS Use? The NAOS Investment Team undertakes fundamental analysis on potential and current investments. Some examples of our key focus areas include: For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2025 NAOS Asset Management Limited 41
Slide 43: Reasons Why We Seek Board Representation
Reasons Why We Seek Board Representation From time to time, we will seek Board representation where we believe some skillsets could be enhanced. For personal use only These individuals will generally have: Significant experience outside funds management including operational and M&A roles. A sou
Slide 44: Reasons Not to Invest with NAOS
Reasons Not to Invest with NAOS Our LICs are not for everyone. Some reasons why you may not choose to invest with NAOS include: For personal use only Concentrated portfolios (0-15 investments & shareholdings often >20%) Long-term investment philosophy (5+ years) Focus on emerging companies ($2
Slide 45: Investor Awareness and Communication
Investor Awareness and Communication For personal use only FOLLOW NAOS Subscribe Now: www.naos.com.au/subscribe CONVICTION. LONG TERM. ALIGNED | Copyright 2025 NAOS Asset Management Limited 44
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