NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — NAOS Absolute Opportunities Company — Q4 FY2017 Earnings Presentation
23 slides from NAOS Ex-50 Opportunities's earnings presentation, Jul 19, 2017
Slide 1: Quarterly Investor Briefing 4th Quarter FY-2017
For personal use only QUARTERLY INVESTOR BRIEFING 4TH QUARTER FY-2017 NAOS Absolute Opportunities Company Limited (ASX: NAC)
Slide 2: Call Details
CALL DETAILS For personal use only 1. Date Wednesday 19 July 2017 2. Time 9.30am AEST 3. Telephone Within Australia: 1800 857 029 Outside Australia: +61 3 8687 0635 New Zealand: 0800 449 288 4. Guest Access Code 1084 2873# 5. Questions Please email all questions to enquiries@naos.com.au prior to the
Slide 3: NAC Agenda
NAC AGENDA For personal use only 1. NAC Q4 FY17 REVIEW • Performance & Risk Summary • Stock Contribution (Since Inception) • Return Profile, Positive v Negative Return Months • Capital Analysis: Addressing the Discount • Dividend Profile • Director/Shareholder Alignment • Historical Net Equity & Cas
Slide 4: 1. NAC Review
For personal use only 1. NAC Review “ESTABLISHING AND MAINTAINING AN UNCONVENTIONAL INVESTMENT PROFILE REQUIRES ACCEPTANCE OF UNCOMFORTABLY IDIOSYNCRATIC PORTFOLIOS, WHICH FREQUENTLY APPEAR DOWNRIGHT IMPRUDENT IN THE EYES OF CONVENTIONAL WISDOM.” – DAVID SWENSEN Absolute Long Term Investing | Copyri
Slide 5: Performance & Portfolio Characteristics Summary
NAC: PERFORMANCE & PORTFOLIO CHARACTERISTICS SUMMARY AS AT 30 JUNE 2017 For personal use only 2 Year 1 Month 3 Month 1 Year Inception (p.a.) Inception (Nom.) (p.a.) NAC Investment Portfolio +0.65% -2.26% +6.69% +17.83% +17.15% +51.66% Performance* Benchmark (RBA Cash Rate + 250bps) +0.35% +1.07% +4.
Slide 6: Positive Stock Attribution Summary (Since Inception)
NAC: POSITIVE STOCK ATTRIBUTION SUMMARY (SINCE INCEPTION) AS AT 30 JUNE 2017 For personal use only Positive Stock Contribution Analysis (Contribution is what has attributed to NAC’s performance since Inception of 12 November 2014) Below is a table listing the top positive contributors to NAC’s total
Slide 7: Return Profile, Positive v Negative Months
NAC: RETURN PROFILE, POSITIVE V NEGATIVE MONTHS AS AT 30 JUNE 2017 For personal use only 9.00% 7.00% 5.00% 3.00% 1.00% -1.00% -3.00% Gross Return Absolute Long Term Investing | Copyright 2017 NAOS Asset Management Limited 7
Slide 8: Capital Analysis
NAC: CAPITAL ANALYSIS AS AT 30 JUNE 2017 For personal use only NTA ANALYSIS Pre Tax - $1.08 Post Tax & Pre Unrealised Gains Tax – $1.10 Post Tax - $1.07 Share Price $1.035 Share Price (Discount)/Premium to Pre-Tax NTA (-4.17%) Fully Franked Dividend Yield 4.83% Shares on Issue 52,536,889 Directors S
Slide 9: Historical Fully Franked Dividend Profile
NAC: HISTORICAL FULLY FRANKED DIVIDEND PROFILE AS AT 30 JUNE 2017 For personal use only $0.05 $0.0475 $0.05 $0.04 $0.04 $0.03 $0.0200 $0.03 $0.0250 $0.02 $0.02 $0.01 $0.01 Interim $0.00 FY15 Maiden FY16 1H FY17 Absolute Long Term Investing | Copyright 2017 NAOS Asset Management Limited 9
Slide 10: Directors Increasing Alignment with Shareholders Since IPO
NAC: DIRECTORS INCREASING ALIGNMENT WITH SHAREHOLDERS SINCE IPO AS AT 30 JUNE 2017 For personal use only 5,000,000 4,934,296 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,259,832 200,000 499,632 1,000,000 500,000 500,000 137,958 0 David Rickards* Warwick Evans* Sebastian Ev
Slide 11: Portfolio Structure: Historical Net Equity and Cash Weightings
NAC: PORTFOLIO STRUCTURE HISTORICAL NET EQUITY AND CASH WEIGHTINGS AS AT 30 JUNE 2017 For personal use only Net Equity Weighting Cash and Cash Equivalents Weighting Short Exposure Income Instruments 120% 100% 86.97% 80% 60% 40% 20% 13.03% 0% 0.00% -20% -18.79% -40% -60% Absolute Long Term Investing
Slide 12: Portfolio Structure: Net Industry Exposure
NAC: PORTFOLIO STRUCTURE AS AT 30 JUNE 2017 For personal use only Net Industry Exposure Financials 18.50% Commercial Services 17.77% Media 16.60% Telecommunications 14.36% Software 12.35% Materials 4.42% Food & Beverage 1.88% Capital Goods 1.77% Health Care 1.61% Pharmaceuticals -2.29% -10% 0% 10% 2
Slide 13: Company Meetings
NAC: 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 ma
Slide 14: 2. Market Outlook
For personal use only 2. Market Outlook “THE MARKET CAN REMAIN IRRATIONAL LONGER THAN YOU CAN REMAIN SOLVENT.” – JOHN MAYNARD KEYNES Absolute Long Term Investing | Copyright 2017 NAOS Asset Management Limited 14
Slide 15: NAC Market Outlook: FY2017 Year in Review
NAC MARKET OUTLOOK: FY2017 YEAR IN REVIEW For personal use only Notable Positive Outcomes - Gentrak Group (ASX: GTK) – One of the leading positive contributors to the NAC portfolio, GTK was able to exhibit excellent cash flow conversion (all R&D expensed), strong organic revenue growth of +10% p.a.,
Slide 16: NAC Market Outlook: Market Commentary
NAC MARKET OUTLOOK: MARKET COMMENTARY For personal use only Notable Change in Industry Performance & Divergence - Over the past quarter there has been increased focus on the “reflation” trade and what effect the potential for higher inflation and therefore higher interest rates will have on specific
Slide 17: NAC Market Outlook: Market Commentary
NAC MARKET OUTLOOK: MARKET COMMENTARY For personal use only Absolute Long Term Investing | Copyright 2017 NAOS Asset Management Limited 17
Slide 18: NAC Market Outlook: Market Commentary
NAC MARKET OUTLOOK: MARKET COMMENTARY For personal use only Absolute Long Term Investing | Copyright 2017 NAOS Asset Management Limited 18
Slide 19: Market Outlook: NAOS Investment Philosophy
MARKET OUTLOOK: NAOS INVESTMENT PHILOSOPHY Companies valued based on todays For personal use only Balance sheet flat earnings flexibility profile but not tomorrows growing earnings base Proven management Ability to drive teams with strong revenue and/or shareholder margin growth alignment Existing C
Slide 20: 3. Keeping Up To Date
For personal use only 3. Keeping 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 Absol
Slide 21: 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 register subscribe via our subscribe via our upd
Slide 22: The NAOS Team and Directors
THE NAOS TEAM AND DIRECTORS For personal use only Sebastian Evans Richard Preedy Ben Rundle Chief Investment Officer/ Chief Financial & Portfolio Manager Managing Director Operating Officer Warwick David Rickards Sebastian Evans Director Evans Independent Director Chairman Robert Miller Jeffrey Kim
Slide 23: Disclaimer
DISCLAIMER For personal use only This presentation has been prepared by NAOS Asset Management Limited (ABN 23 107 624 126, AFSL 273529, “NAML”). The purpose of this presentation is to provide information only; any other use other than informational purposes is disclaimed. The information provided is
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