Flagship Investments Ltd. · ASX:FSI
Flagship Investments — Investor Presentation (September 2021)
23 slides from Flagship Investments's investor presentation, Aug 31, 2021
Slide 1: Offer of Unsecured Convertible Notes
For personal use only Offer of Unsecured Convertible Notes September 2021
Slide 2: Disclaimer
Disclaimer For personal use only This presentation has been prepared by Flagship Investments Ltd (“Flagships”, “FSI” or the “Company”). This presentation and its contents have been distributed in confidence and may not be reproduced or disclosed to any other person. The distribution of this presenta
Slide 3: Offer Details
Offer Details For personal use only Unsecured Redeemable Convertible note Total offer size of $20.0 million Offer price of $2.70 Interest rate of 5.50% paid quarterly until Step Up date of 30 September 2024 After Step up date (3 years after issue) increases to 6.50% if 2 year Bank Bill Swap rate is
Slide 4: Purpose of the Offer
Purpose of the Offer For personal use only Grow the size of the company Increase the visibility, recognition and relevance to stockbrokers and financial planners Expand the coverage by research houses Reduce the MER and ICR ratios by spreading the limited fixed costs of operating the Company across
Slide 5: Note holder protections
Note holder protections For personal use only Noteholder exit rights If a Change of Control Event or a Delisting Event occurs, the Noteholder may require FSI to redeem all of the Notes held prior to the Maturity Date for an amount equal to their Face Value together with any accrued (but unpaid) inte
Slide 6: FSI Corporate Profile
FSI Corporate Profile For personal use only FSI commenced operations in April 1998 and is a Listed Investment Company (LIC) quoted on the ASX The portfolio is managed by EC Pohl & Co and provides investors with access to an expertly crafted quality portfolio of listed Australian growth companies The
Slide 7: FSI Investment Objectives
FSI Investment Objectives For personal use only The investment objectives of the Company are to: achieve medium to long-term capital growth and income through investing in a diversified portfolio of Australian companies; preserve and enhance the NTA backing per share; and provide FSI Shareholders wi
Slide 8: FSI Performance Based Fee Structure
FSI Performance Based Fee Structure For personal use only EC Pohl & Co is only paid a performance fee Dividends are paid before fee is determined No performance fee is paid until portfolio performance exceeds the cash rate The performance fee is calculated and charged annually
Slide 9: FSI Portfolio Performance
FSI Portfolio Performance For personal use only Historical Performance to 30 June 2021 UNDERLYING PORTFOLIO PERFORMANCE 3 1 3 5 10 Since Inception months year years years years (1 May 1998) p.a. p.a. p.a. p.a. Portfolio^ 13.5% 40.7% 21.2% 18.2% 16.0% 13.5% Bloomberg Bank Bill Index 0.0% 0.1% 1.0% 1.
Slide 10: FSI Comparative Performance
FSI Comparative Performance For personal use only Performance to 30 June 2021^ COMPARATIVE PERFORMANCE Market 1 3 5 Prem/Disc Historical Cap Year Year Year to Pre-Tax Total $m Total Total Total NTA Distribution Return Return Return Yield ^^ Flagship Investments (FSI) 61.8 41.20% 20.36% 17.51% -7.7%
Slide 11: FSI Portfolio Holdings (30 June 2021)
FSI Portfolio Holdings (30 June 2021) For personal use only SECTOR BREAKDOWN TOP 10 STOCK HOLDINGS HUB24 Ltd Financials 8.1% 31.2% Macquarie Group Ltd Consumer Discretionary 6.3% 17.7% Magellan Fin Grp Ltd Health Care 5.8% 15.5% Rio Tinto Limited Information Technology 5.4% 12.7% Commonwealth Bank M
Slide 12: FSI Historical Dividends
FSI Historical Dividends For personal use only Year 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Dividend 8.50 8.50 6.0 6.5 6.75 7.25 7.25 7.25 7.75 8.25 8.50 9.0 Change 0.0 0.0 -30.0 8.3 3.9 11.1 0.0 0.0 6.9 6.5 3.0 5.9 % CPI 3.1 3.6 1.2 2.4 3.0 1.5 1.0 1.9 2.1 1.6 1.2 n/a Interim Di
Slide 13: Fund Manager Profile
Fund Manager Profile For personal use only • EC Pohl & Co established in 2012 • 100% staff ownership • Consistently in first quartile of Morningstar Survey • Limited available capacity • Ex50 soft closed • All-cap still open • World class systems • Outstanding team culture • GS007 Unqualified Audit
Slide 14: The Investment Team
The Investment Team For personal use only Dr Manny Pohl AM Andrew Dale CA Damon Callaghan CFA Co-Founded ECP in 2012 Joined ECP in 2014 Joined ECP in 2017 Joined Industry in 1989 Joined Industry in 2001 Joined Industry in 2011 Jared Pohl MBA Sam Byrnes CFA Jason Pohl MBA Co-Founded ECP in 2012 Joine
Slide 15: The Manager's Investment Philosophy
The Manager’s Investment Philosophy For personal use only •The economics of a business drives long-term investment returns. •Investing in high quality, growth businesses, that have the ability to generate predictable, above average economic returns will produce superior investment performance over t
Slide 16: Investment Process & Outcomes
Investment Process & Outcomes For personal use only We look for high quality businesses, in the growth stage of their lifecycle, who 01 ASSET SELECTION are are capable of generating above average returns on their invested capital through time. The research process is designed to minimise the likelih
Slide 17: Asset Selection - Redefining Active investing
Asset Selection - Redefining Active investing For personal use only There’s no substitute for due diligence. Through in-depth, detailed analysis, we come to a conclusion as to whether a business is a quality franchise, has a sustainable competitive advantage, is operating in a favourable industry an
Slide 18: Market Inefficiencies We Exploit
Market Inefficiencies We Exploit For personal use only QUALITY GROWTH Growth Anomaly On average the market undervalues extremely high-quality, capital efficient, organic growth businesses. SUSTAINABLE OPPORTUNITY Time Arbitrage The market tends to overemphasize temporary themes and short-term factor
Slide 19: ESG & Sustainability
ESG & Sustainability For personal use only Our Quality Franchise framework ensures We exclude the following sectors due to ESG issues: superior sustainability and stewardship ● Gambling requirements. ● Pornography ● Weapons / Armaments We assess Sustainability and Management within two distinct ● To
Slide 20: ESG & Sustainability
ESG & Sustainability For personal use only Sustainable Business is Good Business. ECP is committed to responsible investment and we believe that ESG factors have a material impact on long- term investment outcomes. Signatory to the Principles of Responsible Investment (PRI) Supporter of the Task For
Slide 21: Benefits to investors
Benefits to investors For personal use only Reduced share investment risk through a quality investment portfolio Top quartile investment performance since inception No historical gearing on the balance sheet Professional, disciplined management of an investment portfolio by EC Pohl & Co’s highly rat
Slide 22: Indicative Timetable
Indicative Timetable For personal use only Event Date Priority Offer Record Date 27 August 2021 Announce offer and lodge prospectus 30 August 2021 Notice of Meeting issued to shareholders 30 August 2021 Offer opens 7 September 2021 Offer closes 24 September 2021 AGM of shareholders 29 September 2021
Slide 23: For personal use only
For personal use only
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