NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — NAOS Asset Management — Q2 FY21 Earnings Presentation
34 slides from NAOS Ex-50 Opportunities's earnings presentation, Feb 4, 2021
Slide 1: Q2 FY21 Investor Update Webinar
Q2 FY21 INVESTOR UPDATE WEBINAR Thursday 4 February 2021 |11:00 am (AEDT) Audio Dial In: +61 2 8355 1054 Audio Pin: 660-399-616 PRESENTED BY NAOS ASSET MANAGEMENT CONVICTION. LONG TERM. ALIGNED | Copyright 2019 NAOS Asset Management Limited 1
Slide 2: 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 3: NAOS Asset Management
NAOS Asset Management Our Mission To provide investors genuine long-term, concentrated exposure to Australian undervalued listed micro, small and mid-cap companies with an industrial focus. NAOS established its first Listed Investment Company (LIC) in 2013 with 400 shareholders, today NAOS manages $
Slide 4: NAOS investment beliefs provide a competitive advantage
NAOS investment beliefs provide a competitive advantage Value with Long Quality over Invest for the Term Growth Quantity Long Term 5+ years Performance v Ignore the Pure Exposure Liquidity Focus Index to Industrials The closed end LIC structure removes application and redemption risk. Environmental,
Slide 5: 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: Concentrated portfolios (0-15 investments) Long-term investment philosophy (5+ years) Focus on smaller companies ($20 million - $500 million) Benchmark unaware (No
Slide 6: NAOS LICs investment portfolio financial year returns
NAOS LICs investment portfolio financial year returns* 30% 20% 10% 0% -10% -20% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 YTD NAOS Emerging Opportunities Company Limited (ASX: NCC) NAOS Ex-50 Opportunities Company Limited (ASX: NAC) NAOS Small Cap Opportunities Company Limited (ASX: NSC) * Invest
Slide 7: NAOS LIC Fully Franked Dividend History and Profit Reserves
NAOS LIC Fully Franked Dividend History and Profit Reserves Each LIC has consistently paid dividends and holds healthy profit reserves 70.60 70 60 50.00 50 Cents per share (CPS) 43.10 41.30 40 37.00 28.90 30 23.60 21.10 20 14.75 10 0 NCC NAC NSC Total Dividends Declared (Since Inception) Total Gross
Slide 8: Summary of Q2 FY21
Summary of Q2 FY21 Annual General Meeting (AGM) season provided the opportunity for companies to update the market on current trading conditions. There was the beginning of a market rotation, surprisingly leading this rotation were the Big-4 banks, which made a significant rally from October to
Slide 9: Summary of Q2 FY21
95 100 105 110 115 120 125 130 135 140 1/10/2020 3/10/2020 5/10/2020 Source: Bloomberg 7/10/2020 9/10/2020 11/10/2020 13/10/2020 15/10/2020 17/10/2020 19/10/2020 21/10/2020 CBA AU Equity - Last Price 23/10/2020 CONVICTION. LONG TERM. ALIGNED | Copyright 2021 25/10/2020 27/10/2020 29/10/2020 31/10/20
Slide 10: Concerns & Opportunities Post Q2 FY21
Concerns & Opportunities Post Q2 FY21 Concerns US 10 Year Bond Yields have risen from 0.69% at the start of October to approximately 1.10%. Unexpected border closures continue to place significant pressure on businesses exposed to domestic tourism, with little visibility on a coherent state stra
Slide 11: Concerns & Opportunities (Continued)
Concerns & Opportunities (Continued) Building Approvals - Private sector houses 12,000 11,000 10,000 9,000 8,000 7,000 6,000 Nov-05 Nov-06 Nov-07 Nov-08 Nov-09 Nov-10 Nov-11 Nov-12 Nov-13 Nov-14 Nov-15 Nov-16 Nov-17 Nov-18 Nov-19 Nov-20 Mar-06 Mar-07 Mar-08 Mar-09 Mar-10 Mar-11 Mar-12 Mar-13 Mar-14
Slide 12: Opportunities Post Reporting Season
Opportunities Post Reporting Season ASX 100 PE vs. Aust Gov 10 Year Bonds Yields 180 160 140 120 100 80 60 40 20 0 January 2019 April 2019 July 2019 October 2019 January 2020 April 2020 July 2020 October 2020 January 2021 AS25 Index - BEst P/E Ratio GACGB10 Index - Last Price Source: Bloomberg CONVI
Slide 13: Focus on the controllable
Focus on the controllable NAOS will continue to focus on the controllable to maximise risk adjusted returns Can Control Investing with proven management teams based on value/price and stock specific fundamentals on a 3-5-year view Can’t Control Market noise and timing of short-term market movements
Slide 14: Key business & industry traits for maximising long-term performance
Key business & industry traits for maximising long-term performance and reducing the risk of permanent capital loss events A growing revenue base provides companies with a number of competitive advantages such as the Industry Tailwinds Supporting ability to scale their fixed cost base and increase m
Slide 15: NCC key portfolio events Q2 FY21
NCC key portfolio events Q2 FY21 HOLDING INDUSTRY Q2 UPDATE Secured an extension for their current NBN agreement for Unified Field Operations (Services) for up to 8 years. Commercial & BSA were also able to increase their overall share of NBN related revenue Professional relative to their previo
Slide 16: NCC overview as at December 2020
NCC overview as at 31 December 2020 $1.09 7.04% $1.03 10 11.97% 142.67% $85.4m Pre Tax Fully Franked Share Price Number of Performance Performance Weighted NTA Dividend Yield Holdings since since Inception^ Average Market Inception^ p.a. (Total Return) Capitalisation of the Investments FULLY FRANKED
Slide 17: NSC key portfolio events Q2 FY21
NSC key portfolio events Q2 FY21 HOLDING INDUSTRY Q2 UPDATE Announced the acquisition of Timberwood (a highly regarded building materials distribution business and manufacturer of niche panel products). Materials BRI also announced that earnings will be >10% higher than that of 1H FY20. (ASX: BR
Slide 18: NSC overview as at December 2020
NSC overview as at 31 December 2020 $0.81 6.03% $0.705 11 0.46% 1.43% $162.7m Pre Tax Fully Franked Share Price Number of Performance Performance Weighted NTA Dividend Yield Holdings since since Average Market Inception^ p.a. Inception^ Capitalisation of (Total Return) the Investments FULLY FRANKED
Slide 19: NAC key portfolio events Q2 FY21
NAC key portfolio events Q2 FY21 HOLDING INDUSTRY Q2 UPDATE Acquired iTree - a complementary regulation technology specialist with a public sector focus, now successfully integrated within OCL. Software & Reaffirmed the FY21 outlook of a ‘material lift in revenue and profitability’ Services 1H
Slide 20: NAC overview as at December 2020
NAC overview as at 31 December 2020 $1.26 4.93% $1.075 9 14.59% 130.62% $422m Pre Tax Fully Franked Share Price Number of Performance Performance Weighted NTA Dividend Yield Holdings since since Inception^ Average Market Inception^ p.a. (Total Return) Capitalisation of the Investments FULLY FRANKED
Slide 21: Capital Management Initiatives
Capital Management Initiatives Performance Maintain a focus on long term performance without deviating from the NAOS investment philosophy. Dividends Continue to focus on maintaining a growing stream of fully franked dividends whilst maintaining an adequate reserve balance. Alignment Continue to be
Slide 22: Overview and Outlook Q3 FY21
Overview and Outlook Q3 FY21 February will provide an excellent insight into the performance of NAOS investments with most expected to release their 1H FY21 results. Some of the more notable results and updates we will be looking for include: OTW - Further clarity on the integration of recent
Slide 23: Q&As
Q&As Thank you for your continued support. “Games are won by players who focus on the playing field - not by those whose eyes are glued to the scoreboard.” Warren Buffett CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 23
Slide 24: Appendix
APPENDIX CONVICTION. LONG TERM. ALIGNED | Copyright 2019 NAOS Asset Management Limited 24
Slide 25: NAOS strong long term risk-adjusted returns
NAOS strong long term (5 years+) risk-adjusted returns * NCC Investment Portfolio Risk and Performance Metrics NAC Investment Portfolio Risk and Performance Metrics 15% 20% 11.97% 14.59% 15% 10% 6.68% 10% 6.99% 5% 3.62% 2.72% 5% 2.99% 2.67% 0% 0% -1.16% -1.02% -3.35% -3.05% -5% -5% Performance Since
Slide 26: The benefits of a LIC structure
The benefits of a LIC structure Closed-end structure Long-term Intra-day Liquidity No applications or Investment decisions Trades on the ASX redemptions Corporate Governance Dividends Opportunity Public companies provide Stream of fully franked Trade at discount to assets accountability of Directors
Slide 27: NAOS Listed Investment Companies
NAOS Listed Investment Companies Each of our LICs target a concentrated portfolio of 0-20 companies CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 27
Slide 28: NAOS management alignment
NAOS management alignment NAOS Director’s shareholdings have significantly increased since the inception of each LIC Inception Directors Shareholding (Ordinary Shares) 31 December 2020 Directors Shareholding (Ordinary Shares) 9,000,000 8,080,379 8,000,000 7,000,000 6,000,000 5,000,000 4,349,603 4,00
Slide 29: NAOS investment process
NAOS investment process CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 29
Slide 30: NAOS ESG framework
NAOS ESG framework CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 30
Slide 31: Historical shareholder numbers
Historical shareholder numbers 7500 5000 2500 0 NCC Shareholders NAC Shareholders NSC Shareholders CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 31
Slide 32: Investor awareness and communication
Investor awareness and communication CEO Insights, NAOS Shareholder Monthly Investment The news and media Quarterly Webinars Newsletter, Conference Report & NTA email section of our website subscribe via our Calls/Webinars updates, subscribe via is updated regularly website subscribe via our our web
Slide 33: NAOS Asset Management 1% Pledge
NAOS Asset Management 1% Pledge As a company, we commit to Pledge 1% of revenue, time and intellect to movements and missions that matter. 1% Revenue 1% Time 1% Intellect Each year NAOS donates 1% of its annual Our people have an incredible range of skills NAOS sees the value in supporting revenue t
Slide 34: NAOS Directors and Team
NAOS Directors and Team OUR DIRECTORS Sebastian Evans Warwick Evans Matthew Hyder David Rickards Sarah Williams Mark Bennett Trevor Carroll Managing Director, NAOS Chairman, NAOS Asset Director, NAOS Asset Independent Chairman & Independent Director, Director, NAOS Asset Independent Chairman Asset M
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