WAM Capital Ltd. · ASX:WAM
WAM Capital — Investor Presentation (November 2007)
21 slides from WAM Capital's investor presentation, November 2007
Slide 1: WAM Capital Limited
WAM CAPITAL LIMITED A.B.N. 34 086 587 395 November 2007
Slide 2: WAM Capital Ltd Objectives
WAM CAPITAL LTD OBJECTIVES High Real Rate of Return Preserve Capital Strong Dividend Flow
Slide 3: Performance History
PERFORMANCE HISTORY Performance History 600 550 500 450 400 % Performance 350 300 250 200 150 100 50 - (50) August 1999 - October 2007 W AM Capital Ltd - Gross Portfolio before all expenses, fees, taxes and dividends All Ordinaries Accumulation Index
Slide 4: Dividends
DIVIDENDS WAM CAPIT AL - DIVIDENDS 18 16 14 12 cents 10 Special per share 8 Ordinary 6 4 2 0 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07
Slide 5: Capital Management
CAPITAL MANAGEMENT OPTION ISSUE Bonus 1 for 1 Issue at $1.80 Exercisable anytime up to 17 Dec 2007 As at the 21 November 2007, 34,695,016 options have been exercised for a total consideration of $62,451,029 with a remaining balance of outstanding options being 33,515,755. Issued Capital 104.6m ordin
Slide 6: Portfolio Structure
PORTFOLIO STRUCTURE INVESTMENT PORTFOLIO 67% of Gross Assets Research Stocks 50% Trading Stocks 50% CASH & FIXED INTEREST 33% of Gross Assets
Slide 7: 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 8: Top 5 Trading Stocks October 2006
TOP 5 TRADING STOCKS October 2006 - % of Gross CODE Company Value Assets 1 RTN Rattoon Holdings Ltd (NSX) $2,367,823 1.9% 2 TIM Timbercorp Ltd $2,350,600 1.9% 3 OMP Oamps Ltd $2,304,991 1.9% 4 OXR Oxiana Ltd $1,853,600 1.5% 5 OFM OFM Investments Ltd $1,278,491 1.1%
Slide 9: Top 5 Trading Stocks November 2007
TOP 5 TRADING STOCKS 15 November 2007 - % of % Gross Average CODE Company Value Assets Cost 1 RTN Rattoon Holdings Ltd (NSX) $3,377,417 1.5% +16.3% 2 CIW Clime Investment M ment Ltd $3,159,444 1.4% +125.5% 3 ADG Adtrans Group Ltd $1,984,164 0.9% +24.7% 4 LDW Ludowici Ltd $1,891,211 0.9% -6.0% 5 PRW
Slide 10: Performance of Top Trading Holdings
PERFORMANCE OF TOP TRADING HOLDINGS Past 12 Months CODE Company Nov 06 - Nov 07 1 RTN Rattoon Holdings Ltd (NSX) +6.9% 2 CIW Clime Investment M ment Ltd +62.5% 3 ADG Adtrans Group Ltd +69.8% 4 LDW Ludowici Ltd +9.0% 5 PRW Proto Resources & Invest Ltd +180.8%
Slide 11: Top 10 Research Stocks October 2006
TOP 10 RESEARCH STOCKS - October 2006 - % of Gross CODE Company Value Assets 1 CCP Credit Corp Group Ltd $6,293,911 5.2% 2 RKN Reckon Ltd $4,202,664 3.5% 3 PGA Photon Group Ltd $4,021,284 3.3% 4 SHV Select Harvests Ltd $3,578,603 2.9% 5 MMS McMillan Shakespeare Ltd $2,989,392 2.5% 6 MLB Melbourne IT
Slide 12: Top 10 Research Stocks November 2007
TOP 10 RESEARCH STOCKS - 15 November 2007 - % of % Gross Average CODE Company Value Assets Cost 1 RKN Reckon Ltd $6,409,324 2.9% +126.2% 2 NOD Nomad Building Solutions Ltd $5,425,540 2.5% +14.3% 3 PGA Photon Group Ltd $4,744,211 2.2% +114.1% 4 SSM Service Stream Ltd $4,690,733 2.1% +55.9% 5 MLB Melb
Slide 13: Performance of Top Research Holdings
PERFORMANCE OF TOP RESEARCH HOLDINGS Past 12 Months CODE Company Nov 06 - Nov 07 1 RKN Reckon Ltd +42.0% 2 NOD Nomad Building Solutions Ltd +98.3% 3 PGA Photon Group Ltd +25.6% 4 SSM Service Stream Ltd +57.4% 5 MLB Melbourne IT Ltd +32.4% 6 WTP Watpac Ltd +16.3% 7 MMS McMillan Shakespeare Ltd +18.2%
Slide 14: ASX200 Valuation of Equities Relative to Bonds
Source: GSJBW Research estimates ASX200 £0-6ny 20-984 90-6ny 90-494 s0-6ny 50-484 v0-6ny 0-424 €0-6ny €£0-44 Z0-6ny bS Lt Avera 20-484 To-6ny TO-qa4 00-6ny 00-424 66-6ny 66-424 86-6ny LJ) 86-494 £6-6ny 6-424 96-6ny -1 Std 96-424 s6-6ny 96-424 y6-6ny v6-G84 €6-6ny £6-494 26-6ny 26-404 EQUTHES RELATIV
Slide 15: ASX200 Industrial
Source: GSJBW Research estimates ASX200 Industrial = 20-6ny 20-994 90-6ny 90-994 so-6ny iy so-aag vo-6ny > 0-404 re €0-6ny 5) z0-ony is | 70-494 a To-6ny — 10-42 00-6ny 00-494 66-6ny 66-404 _—_— 86-6ny = — NUN AI he 86-404 26-6ny 26-404 96-6ny 96-404 s6-6ny $6-424 b6-6ny v6-424 €6-6ny €6-424 z6-6ny
Slide 16: All Industrials
ALL INDUSTRIALS ALL INDUSTRIALS PROSPECTIVE PER VALUATION 21.0 19.0 + High (+1 Std 17.0 15.0 AVERAG 13.0 11.0 Low (-1 Std Dev) 9.0 Sanrre: G6 IRW Raconreh mel
Slide 17: Industrials ex Banks
INDUSTRIALS EX BANKS INDUSTRIALS EX BANKS PROSPECTIVE PER VALUATION 27.0 25.0 23.0 High (+1 Std 21.0 19.0 17.0 15.0 13.0 Low (-1 Std Dev) 11.0 9.0 s $Y F Ss “I 2 ~) a a Source: GEIRW Research me)
Slide 18: All Resources
ALL RESOURCES Res PE ALL RESOURCES PROSPECTIVE PER VALUATION 29.0 High (+1Std Dev) AvEpAc Page 1
Slide 19: Small Ords / ASX200
SMALL ORDS | ASX200 SMALL ORDINARIES/ASX 200 - Relative PER Chart Prospective GSJ8Were Small Ordinaries PER (Pre G/will) compared to ASX 200 source: GSJBW Research Estimates Small Ordinaries (08a) 17.36 ASK 200 (08e)] 36.88 PER Relative)! 2.9 35.0 25.0 15.0 oe on be) | REL PER (%) (+1 StDev) : 9.8]
Slide 20: Questions?
QUESTIONS?
Slide 21: WAM Active Limited - what is it?
WAM Active Limited - what is it? Why are we doing it and where does it fit in?