WAM Capital Ltd. · ASX:WAM
WAM Capital — Investor Presentation (November 2006)
27 slides from WAM Capital's investor presentation, Nov 13, 2006
Slide 1: WAM Capital Limited Presentation November 2006
WAM CAPITAL LIMITED CADIS ORG S87 AOAd PRESENTATION November 2006
Slide 2: Objectives
WAM CAPITAL LTD OBJECTIVES - High Real Rate of Return ¢ Preserve Capital * Strong Dividend Flow
Slide 3: Performance History
PERFORMANCE HISTORY Performance History 400 350 300 250 200 150 °% Performance 100 50 (50) August 1999 - June 2006 WAM Capital Ltd - Gross Portfolio before all expenses, fees, taxes and dividends —--— All Ordinaries Accumulation dex
Slide 4: Dividends
DIVIDENDS WAM CAPITAL DIVIDENDS rm Special ta Ordinary 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06
Slide 5: Capital Management
CAPITAL MANAGEMENT * OPTION ISSUE Bonus 1 for 1 Issue at $1.80 Exercisable anytime up to 17 Dec 2007 * SHARE BUY BACKS
Slide 6: Portfolio Structure
PORTFOLIO STRUCTURE * INVESTMENT PORTFOLIO > 86% of Gross Assets Research Stocks 53% Trading Stocks 47% * CASH & FIXED INTEREST >» 14% of Gross Assets
Slide 7: Picking Stocks!
PICKING STOCKS! PART 1 Source: Australian Financial Review
Slide 8: Picking Stocks!
PICKING STOCKS! PART 2 Source: Australian Financial Review
Slide 9: Picking Stocks!
PICKING STOCKS! PART 3 Source: Australian Financial Review
Slide 10: Research Ranking Process
RESEARCH RANKING PROCESS - Each company is ranked on: - Management - Earnings Growth - Valuation - Industry Position * Emphasis is also placed on a company’s free cash flow and return on equity. * Identify a catalyst or event.
Slide 11: Top Trading Stocks October 2005
TOP 5 TRADING STOCKS — October 2005 - ‘age of Gross CODE Company Value Assets 1|OMP | Oamps Ltd $3,072,790.32 2.8% 2|NWS _ | News Corp Ltd $2,205,000.00 2.0% 3 | OFM OFM Investments Ltd $1 ,697,573.64 1.5% 4) ALS Alesco Corp Ltd $1,239,000.00 1.1% 5 Pharmaxis Ltd $1,170,000.00 1.1%
Slide 12: Top Trading Stocks October 2006
TOP 5 TRADING STOCKS — October 2006 - age of %A Gross | Average CODE Company Value Assets Cost 1|RTN_ | Rattoon (NSX) Hidgs $2,367,822.78 19%| 14.8% 2| TIM Timbercorp Ltd $2,350,600.00 1.9% 3.5% 3|OMP_ | Oamps Ltd $2,304,991.05 1.9% 90.0% 4/OXR_ | Oxiana Ltd $1,853,600.00 1.5% 7.1% 5|OFM_ | OFM Inve
Slide 13: Top Research Stocks October 2005
TOP 10 RESEARCH STOCKS - October 2005 - Soage of Gross CODE Company Value Assets Select Harvests Ltd $3,448, 140.00 Credit Corp Group Ltd $2,856,266.55 Reckon Ltd $2,627,698.00 Tower Ltd $2,341,854.35 Tassal Group Ltd $1,965,650.89 Photon Group Ltd $1,851,922.50 Healthscope Ltd $1,567,985.85 ABB Gra
Slide 14: Top Research Stocks October 2006
TOP 10 RESEARCH STOCKS - October 2006 - Sage of % A Gross Average Company Assets Cost Credit Corp Group Ltd $6,293,910.60 177.4% Reckon Ltd $4,202,664.00 92.3% Photon Group Ltd $4,021 ,283.70 134.3% Select Harvests Ltd $3,578,603.00 66.7% McMillan Shakespeare Ltd | $2,989,392.00 125.3% Melbourne IT
Slide 15: Equities cheap vs bonds earnings yield
GENERAL MARKET % 3 4 . ~~ Seuiies cheap vs bos 1 0 -14 3 equities expensive vs bonds 1995 1997 1999 2001 2003 2005 — rrarket earnings yield less bond yield Source: UBS
Slide 16: Market ex resources earnings yield less bond yield
GENERAL MARKET % Gates expens SNS bon 1995 1997 1999 2001 2003 2005 — rrerket ex resources earnings yield less bond yield Source: UBS
Slide 17: Small Ords vs. ASX
GENERAL MARKET Small Ords vs. ASX 200 SMALL ORDINARIES/ ASX 200 - Relative PER Prospective GSIBW Small Ordinaries PER (Pre G/will) v's ASX 200 source: GSIBW Research Estimates Prom/Dise (%9 35.0 Current PER Small Ordinaries (O7e}] 18.99 ASX 200(07e)] 13.76 PER Relative(%); 463 25.0 hi 15.0 ft = +1 S
Slide 18: All Industrials Prospective PER
GENERAL MARKET All Industrials Prospective PER ALL INDUSTRIALS PROSPECTIVE PER VALUATION GSJBW Quantitative Research 21.0 | 19.0 | High (+1 Std Dev) 17.0 15.0 13.0 11.0 9.0 5 7.0 +t t t t t t t t t t t t t t t t on a Om ¢ Hh OR DB DH a an Mm ¢- HH LC PP DP DP SS VDT PE Pe 92 2 9 9 ge 2 29 9 28 G@ GB
Slide 19: All Resources Prospective PER
GENERAL MARKET All Resources Prospective PER ALL RESOURCES PROSPECTIVE PER VALUATION GSJBW Quantitative Research 29.0 27.0 25.0 23.0 k 21.0 High (+18td Dev) Loe J].-d-Iotess oe es se od {--4 = AVERAGE Source: GSJBW Research estimates
Slide 20: BHP vs. ASX
GENERAL MARKET BHP vs. ASX 200 Current PER! BHP/ ASX 200 - Relative PER BHP (07¢}| a79 Prospective GSIBW BHP PER (Pre G/will) v's ASX 200 ASX 200 (07e!| 13.74 source: GSIBW Research Estimates PER Rolative(%):| _-28.8 PremiDise {9} 100.0 80.0 60.0 ny 40.0 -|+1 StDev : 33.3%] ‘| errr 20.0 AVY Ave REL
Slide 21: ANZ vs. ASX
GENERAL MARKET ANZ vs. ASX 200 Gurrent PER ANZ/ ASX 200 - Relative PER ANZ (07e) 14.44 Prospective GSJBW ANZ PER (Pre G/will) v's ASX 200 ASX 200(07e)| 13.74 source: GSJBW Research Estimates PER Rolativo®%): BA Prem/Dise (%} 0.0 -10.0 eS +1 GiDev :-149p-- 222-222 ee genes PER few ne ee ene $24.38 -2
Slide 22: CBA vs. ASX
GENERAL MARKET CBA vs. ASX 200 Current PER| CBA/ ASX 200 - Relative PER CBA (07a) 14.87 Prospective GSJBW CBA PER (Pre G/will) v's ASX 200 ASX 200 (07e)] 13.74 source: GSJBW Research Estimates PER Relative(%): 82 Prem/Dise (%) 10.0 $48, 0.0 ween mene en ey foo ag phones $42.74 -10.0 HOA i (NW A Ave
Slide 23: WBC vs. ASX
GENERAL MARKET WBC vs. ASX 200 WBC/ ASX 200 - Relative PER Current PER| - Relative Prospective GSIBW WBC PER (Pre G/will) v's ASX 200 WBC (076) 13.36 source: GSJBW Research Estimates ASX 200 (07e}} 13.74 PER Rolative(%}:| _-2.9 Prom/Disc {%) 0.0 a “10.0 Spigauaaiaaawawi enna na ns PWAWE ERED EA ADEO
Slide 24: NAB vs. ASX
GENERAL MARKET NAB vs. ASX 200 Current PER NAB (O7e)] 15.23 NAB/ ASX 200 ~ Relative PER . ASX 200 (07e)| 49.74 Prospective GSJBW NAB PER (Pre G/will) v's ASX 200 PER Relative(%}: 109 source: GSIBW Research Estimates PremiDise (%) 15.0 : we 4 ’ NM -5.0 -15.0 WN \ vows 22.4% x A it Ave REL PER 7 Walir
Slide 25: BHAGS Years On - 2011
BHAGS 5 YEARS ON - 2011 Market $360 million Capitalisation Dividends 22.0 cents f.f. NTA $2.58
Slide 26: Questions?
QUESTIONS?
Slide 27: WAM Capital Limited Presentation November 2006
WAM CAPITAL LIMITED CADIS ORG S87 AOAd PRESENTATION November 2006