NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — Q1 FY19 Earnings Presentation
29 slides from NAOS Ex-50 Opportunities's earnings presentation, Oct 23, 2018
Slide 1: Quarterly Conference Call Q1 FY19
Quarterly Conference Call Q1 FY19 For personal use only Tuesday, 23 October 2018 10:30 am (Sydney time) Within Australia: 1300 289 804 Outside Australia: +61 3 8687 0635 Guest Access Code: 1084 2873 # CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Limited 1
Slide 2: Important Information
Important Information For personal use only 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 fina
Slide 3: NAOS Investment Mandate
NAOS Investment Mandate For personal use only 01 02 NAOS seeks to protect investor capital NAOS provides investors with genuine, whilst providing a sustainable growing concentrated exposure to Australian stream of fully franked dividends and undervalued listed micro, small and long-term capital grow
Slide 4: NAOS Investment Beliefs
NAOS Investment Beliefs For personal use only Value with Long Quality over Invest for the Performance v Term Growth Quantity Long Term Liquidity Focus Ignore the Pure Exposure Environmental, Management Index to Industrials Social and Alignment Governance (ESG) CONVICTION. LONG TERM. ALIGNED | Copyri
Slide 5: NAOS Listed Investment Companies
NAOS Listed Investment Companies For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Limited 5
Slide 6: NTA & Performance as at September 2018
NTA & Performance as at 30 September 2018 For personal use only Q1 FY19 Q1 FY19 PRE TAX NTA PERFORMANCE PERFORMANCE BENCHMARK SINCE INCEPTION NCC* $1.31 +4.34% +1.10% +16.20%p.a. NSC^ $0.91 +2.06% +1.10% -1.44%nom. NAC* $1.13 +4.92% +1.74% +15.58%p.a. * Investment performance is post all operating e
Slide 7: LIC Overview and Investment Update
LIC Overview and Investment Update For personal use only “One way to create an attractive risk/reward situation is to limit downside risk severely by investing in situations that have a large margin of safety.” JOEL GREENBLATT CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Lim
Slide 8: NCC Overview as at September 2018
NCC Overview as at 30 September 2018 DIVIDENDS DIVIDEND PROFILE For personal use only $0.08 $0.0725 $14m* $0.07 $0.0625 $0.0675 $0.0700 Profit Reserve $0.0575 $0.06 5.62% $0.05 Fully Franked Dividend Yield $0.04 100% $0.03 $0.0250 $0.02 Franking $0.01 $0.00 2H FY13 FY14 FY15 FY16 FY17 FY18 *Profit r
Slide 9: NCC Stock Spotlight
NCC Stock Spotlight For personal use only Announced two acquisitions and Management are executing the Provided guidance to the market the appointment of an experienced long-term strategy of slimming for FY19 EBITDA of at least $6 Director. down the business. million. - One acquisition was a well reg
Slide 10: NCC Overview
NCC Overview PORTFOLIO as at 30 September 2018 PORTFOLIO METRICS as at 30 August 2018 For personal use only 9 2.35% Number of Holdings Dividend Yield 0.00% 27.44%* Cash Weighting Projected EBITDA Growth (12 month) 3.9m 7.29 NCC Directors Shareholding Enterprise Value to EBITDA $95m 0.55 Holdings Wei
Slide 11: NSC Overview as at September 2018
NSC Overview as at 30 September 2018 DIVIDENDS DIVIDEND PROFILE For personal use only $0.04 $13.5m $0.0300 Profit Reserve $0.03 $0.0250 6.92% Fully Franked Dividend Yield $0.02 100% $0.0135 $0.01 Franking $0.00 1H FY18 2H FY18 1Q FY19 CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Manage
Slide 12: NSC Stock Spotlight
NSC Stock Spotlight For personal use only Federal Government announced Provided guidance detailing a Announced the acquisition of a Royal Commission into the further 20% organic revenue IAB Group (ASX: IAB). aged care sector. growth for FY19. - IAB has a similar offering to that of - Listed aged car
Slide 13: NSC Overview
NSC Overview PORTFOLIO as at 30 September 2018 PORTFOLIO METRICS as at 30 August 2018 For personal use only 12 3.24% Number of Holdings Dividend Yield 6.44% 20.77%* Cash Weighting Projected EBITDA Growth (12 month) 1.92m 7.99 NSC Directors Shareholding Enterprise Value to EBITDA $202m 0.36 Holdings
Slide 14: NAC Overview as at September 2018
NAC Overview as at 30 September 2018 DIVIDENDS DIVIDEND PROFILE For personal use only $4.3m $0.06 $0.0525 $0.0500 Profits Reserve $0.05 $0.0475 5.20% $0.04 Fully Franked Dividend Yield $0.03 100% $0.02 $0.0200 Franking $0.0135 $0.01 $0.00 2H FY15 FY16 FY17 FY18 1Q FY19 CONVICTION. LONG TERM. ALIGNED
Slide 15: NAC Stock Spotlight
NAC Stock Spotlight For personal use only Reported a strong set of Announced acquisition of Reported another solid result results together with full year US based MORSCO. with strong free cash flow guidance for FY19, to which generation and further the market reacted - The acquisition of MORSCO is m
Slide 16: NAC Overview
NAC Overview PORTFOLIO as at 30 September 2018 PORTFOLIO METRICS as at 30 August 2018 For personal use only 12 3.24% Number of Holdings Dividend Yield 7.20% 20.28%* Cash Weighting Projected EBITDA Growth (12 month) 7.47m 9.54 NAC Directors Shareholding Enterprise Value to EBITDA $1.23b 0.12 Holdings
Slide 17: Market Anecdotes
Market Anecdotes For personal use only “The single greatest edge an investor can have is a long-term orientation.” SETH KLARMAN CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Limited 17
Slide 18: Valuation
VALUATION For personal use only Industrial Companies ex Financial ex Listed Property Trusts PER (x) EPS GROWTH (%) DIV YIELD (%) PRICE + DEBT/EBIT (x) 20.8 1.3 3.7 15.9 Source: Macquarie Wealth Management Research October 2018, figures based on 2018 data pro-rated for 30 June CONVICTION. LONG TERM.
Slide 19: Notable Market Events Q1FY19: Evidence of Consumer Weakness
Notable Market Events Q1FY19 EVIDENCE OF CONSUMER WEAKNESS For personal use only Consumer Price Inflation* 6.0 01 ASX: MHJ | Michael Hill Jeweller Downgrade 5.0 4.0 02 3.0 ASX: AHG and ASX: APE | Automotive Holdings and AP 2.0 Eagers reported poor new car sales data 1.0 03 ASX: MTO | Motorcycle Hold
Slide 20: Notable Market Events Q1FY19: Increase in M&A Activity
Notable Market Events Q1FY19 INCREASE IN M&A ACTIVITY For personal use only 01 ASX: MYO | MYOB Limited bid from KKR 02 ASX: NVT | NAVITAS Limited bid from BGH Consortium 03 ASX: APO | APN Outdoor acquired by JCDecaux SA CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Limited 20
Slide 21: Notable Market Events Q1FY19: Normalisation of US Interest Rates
Notable Market Events Q1FY19 NORMALISATION OF US INTEREST RATES For personal use only Official Interest Rates 8.00 7.00 01 US Federal Funds Maximum Target Rate % Significant falls in high growth 6.00 stocks 5.00 02 4.00 Australia Target Cash Rate % Increased lending costs 3.00 2.00 03 More rigorous
Slide 22: Looking towards Q2FY19
Looking towards Q2FY19 Key Events For personal use only AGM and update on IAB AGM and Q1 trading update Result FY2018 acquisition SIQ result CY2018 AGM, potential update on HVAC CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Limited 22
Slide 23: Charlie Munger quote
For personal use only “How many of you have 56 brilliant ideas in which you have equal confidence? How many of you have two or three insights that you have some confidence in? I rest my case.“ CHARLIE MUNGER CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Limited 23
Slide 24: NAOS investment process
NAOS investment process For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Limited 24
Slide 25: NAOS ESG framework
NAOS ESG framework For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Limited 25
Slide 26: Number of Shareholders
Number of Shareholders For personal use only 9,000 8,000 7,000 6,000 5,000 4,000 3,000 2,000 1,000 0 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17 Sep-18 NCC NSC NAC CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Limited 26
Slide 27: Investor awareness and communication
Investor awareness and communication For personal use only CEO Insights, NAOS Quarterly Shareholder Monthly Investment The news and media Twice yearly National Newsletter, Conference Calls, Report & NTA email section of our website Roadshow subscribe via our subscribe via our updates, subscribe via
Slide 28: NAOS Directors and Team
NAOS Directors and Team For personal use only OUR DIRECTORS Sebastian Evans Matthew Hyder David Rickards David O’Halloran Warwick Evans Mark Bennett Trevor Carroll Managing Director, NAOS Asset Director, NAOS Asset Independent Chairman & Director, Director, NAOS Asset Chairman, NAOS Asset Director,
Slide 29: Q&A
Q&A For personal use only Thank you for your support CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Limited 29
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