NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — Investor Presentation (February 2017)
31 slides from NAOS Ex-50 Opportunities's investor presentation, Feb 28, 2017
Slide 1: 2017 Half Year Investor Presentation
For personal use only 2017 HALF YEAR INVESTOR PRESENTATION
Slide 2: Agenda
AGENDA For personal use only 1.INTRODUCTION 2. 3. PHILOSOPHY NAOS 4. NAOS 5. NAC: SHARE EMERGING ABSOLUTE PURCHASE PLAN OPPORTUNITIES OPPORTUNITIES COMPANY LIMITED COMPANY LIMITED (ASX: NCC) (ASX: NAC) 6.MARKET 7. 8. INVESTMENT SHAREHOLDER 9. INVESTOR 10. Q & A OUTLOOK/ CASE STUDY: GROWTH AND COMMUN
Slide 3: NAOS – An Introduction
NAOS – AN INTRODUCTION For personal use only NAOS PROVIDES INVESTORS WITH POSITIVE EXPOSURE TO NICHE MARKET SECTORS WHERE WE HAVE A CLEAR COMPETITIVE ADVANTAGE TO OUTPERFORM AND DELIVER VALUE FOR OUR SHAREHOLDERS OVER THE LONG TERM • THESE MARKET NICHES ARE OFTEN NOT THE CORE COMPETENCY OF MANY INVE
Slide 4: NAOS Investment Philosophy
NAOS INVESTMENT PHILOSOPHY For personal use only NAOS BELIEVE THAT LONG TERM INVESTMENT OPPORTUNITIES ARISE DUE TO MARKET INEFFICIENCIES THAT OCCUR FOR THE FOLLOWING REASONS: 1) SHORT TERMISM OF MARKET PARTICIPANTS I.E. 12 MONTHS OR LESS 2) LUMPINESS OF A COMPANY’S PROFITABILITY AND CASH GENERATION
Slide 5: NAOS Emerging Opportunities Company
For personal use only NAOS EMERGING OPPORTUNITIES COMPANY (ASX:NCC) Conviction Absolute Long Short Investing | Copyright 2014 NAOS Asset Management Limited 5
Slide 6: Month Review to 31/01/2017 – NCC
7 MONTH REVIEW TO 31/01/2017 NAOS Emerging Opportunities Company (ASX:NCC) For personal use only Dividend Yield Gross Assets Shareholders NTA $1.38 Share Price $1.34 5.04% p.a. (7.20% $65,300,000 p.a. Gross Yield) 1,487 Portfolio Performance • BSA Limited (ASX: BSA) Two contracts with NBN Co. were s
Slide 7: Performance – NCC
PERFORMANCE NAOS Emerging Opportunities Company (ASX:NCC) For personal use only $12,000 Gross Return of $10,000 Investment (Gross NTA) v Benchmark XSOAI $21,499 $24,000 NCC Outperformance $10,000 Gross Return of $10,000 $22,000 $10,348 $8,000 $20,000 Investment $6,000 $18,000 $15,022 $16,000 $4,000
Slide 8: Competitive Advantage: NCC
COMPETITIVE ADVANTAGE: NAOS Emerging Opportunities Company Limited (ASX:NCC) For personal use only DIRECTOR’S INTERESTS SINCE IPO NCC Concentrated Portfolio Structure 2,500,000 Consistent Fully Franked Dividend Stream Benchmark Unaware 1,958,246 AUM Limit to Maximise Performance 2,000,000 Ca
Slide 9: Dividend Profile: NCC
DIVIDEND PROFILE: NAOS Emerging Opportunities Company (ASX:NCC) For personal use only Historical Fully Franked Dividends, Cents per Share, Growth Rate 9% p.a.* $0.07 $0.0675 $0.0625 $0.06 $0.0575 $0.05 $0.04 Dividend $0.0350 $0.03 $0.0250 Interim $0.02 $0.01 $0.00 FY13 Maiden FY14 FY15 FY16 1H FY17
Slide 10: NCC Current Investments
NCC CURRENT INVESTMENTS For personal use only Enero Group Limited (ASX: EGG) • Enero has been a long term value play, focusing on business rationalisation and increasing EBITDA margins to that of other listed advertising businesses. • Market capitalisation of $88 million with net cash balance of ~ $
Slide 11: Responsible Investment: Environmental & Social Governance (ESG)
RESPONSIBLE INVESTMENT: ENVIRONMENTAL & SOCIAL GOVERNANCE (ESG) For personal use only “We invest and exercise our ownership rights responsibly, because the fund’s investments are about “Magellan revealed they are targeting the future and belong to our future generations. We potentially $US30 billion
Slide 12: NAOS Absolute Opportunities Company
For personal use only NAOS ABSOLUTE OPPORTUNITIES COMPANY (ASX:NAC) Conviction Absolute Long Short Investing | Copyright 2014 NAOS Absolute Opportunities Company 12
Slide 13: Month Review to 31/01/2017 – NAC
7 MONTH REVIEW TO 31/01/2017 NAOS Absolute Opportunities Company (ASX:NAC) For personal use only Dividend Yield Gross Assets NTA (Pre Tax) Share Price 4.17% p.a. Shareholders $49,290,000 $1.15 $1.14 (5.95% p.a. 701 Gross Yield) SPP Opportunity All NAC Options Oversubscribed $15,000 per fully exercis
Slide 14: Performance – NAC
PERFORMANCE NAOS Absolute Opportunities Company (ASX:NAC) For personal use only Gross Return of $10,000 Investment (Gross NTA) v Benchmark & XAOAI $15,692 $16,000 Gross Return of $10,000 $14,850 NAC Outperformance $4,594 $4,000 $14,000 Investment $12,617 $2,000 $11,769 $10,968 $11,098 $11,412 $12,00
Slide 15: Competitive Advantage: NAC
COMPETITIVE ADVANTAGE: NAOS Absolute Opportunities Company Limited (ASX:NAC) For personal use only DIRECTOR’S INTERESTS SINCE IPO 6,000,000 Focus on Domestic ASX Closed Ended Fund Listed Mid Cap Benefits Opportunities Can Hold 4,890,775 Shorting +100% 5,000,000 Ability Cash Fully Absolute 4,000,000
Slide 16: Dividend Profile: NAC
DIVIDEND PROFILE: NAOS Absolute Opportunities Company (ASX:NAC) For personal use only Historical Fully Franked Dividends, Cents per Share, Growth Rate 8% p.a.* $0.05 $0.0475 $0.05 $0.04 $0.04 $0.03 $0.0250 $0.03 $0.0200 $0.02 $0.02 Interim $0.01 $0.01 $0.00 FY15 Maiden FY16 1H FY17 *Assuming annuali
Slide 17: NAC Current Investment
NAC CURRENT INVESTMENT For personal use only ELDERS LIMITED (ASX:ELD) • Service provider to the agriculture industry for 175 years • Checkered history of poor capital allocation and management • Turnaround in place since 2014 • Targeting 20% return on capital and a minimum of $60m in Earnings Before
Slide 18: Investment Ideas for the Year Ahead
INVESTMENT IDEAS FOR THE YEAR AHEAD NAC: For personal use only 6 MONTH PRICE CHANGES % i-Sentia (ASX:ISD) -46% Aconex (ASX:ACX) -57% TPG Telecom (ASX:TPM) -47% Sirtex (ASX:SRX) -47% Blackmores (ASX:BKL) -36% OPPORTUNITY? Netcomm Wireless (ASX:NTC) -42% Adairs (ASX:ADH) -47% Vita Group (ASX:VTG) -46%
Slide 19: NAC Share Purchase Plan (SPP)
NAOS ABSOLUTE OPPORTUNITIES COMPANY (ASX: NAC) Share Purchase Plan (SPP) For personal use only EVENT DATE No brokerage, Record Date 7.00 pm commissions or (Sydney time) other transaction Shareholders 15 February 2017 costs entitled to fully Issue price is SPP offer opens 9.00 am franked dividend $1.
Slide 20: Market Review/Outlook
For personal use only MARKET REVIEW/OUTLOOK Conviction Absolute Long Short Investing | Copyright 2014 NAOS Absolute Opportunities Company 20
Slide 21: Market Review
MARKET REVIEW For personal use only Even in flat markets there is always significant dispersion between returns of certain stocks, even those of larger market capitalisations. This can provide opportunities, as highlighted by the following which have been significant underperformers for a number of
Slide 22: Market Outlook: Key Risk Indicator (High Yield Bond ETF)
MARKET OUTLOOK: KEY RISK INDICATOR (HIGH YIELD BOND ETF) For personal use only Concentrated Long Term Investing | Copyright 2017 NAOS Asset Management Limited 22
Slide 23: Market Outlook: Key Risk Indicator (High Yield Corporate Spreads)
MARKET OUTLOOK: KEY RISK INDICATOR (HIGH YIELD CORPORATE SPREADS) COST OF DEBT FOR CORPORATES COMPARED TO GOVERNMENT BOND YIELDS For personal use only Concentrated Long Term Investing | Copyright 2017 NAOS Asset Management Limited 23
Slide 24: Market Outlook: Industry Rotation Over the Past 6 Months
MARKET OUTLOOK: INDUSTRY ROTATION OVER THE PAST 6-MONTHS For personal use only Concentrated Long Term Investing | Copyright 2017 NAOS Asset Management Limited 24
Slide 25: Investment Case Study: My Net Fone
INVESTMENT CASE STUDY: MY NET FONE (ASX:MNF) For personal use only Invested due to the consistent strategy of management since first meeting, earnings potential through new service offerings, excellent cash flow conversion and pristine balance sheet. • Three year annualised return inc. dividends +33
Slide 26: 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 27: Shareholder Growth and Marketing Activities
For personal use only SHAREHOLDER GROWTH AND MARKETING ACTIVITIES Conviction Absolute Long Short Investing | Copyright 2014 NAOS Absolute Opportunities Company 27
Slide 28: Shareholder Growth and Marketing Activity
SHAREHOLDER GROWTH AND MARKETING ACTIVITY For personal use only CIO Insights NAOS Roadshow Twitter Followers NAC Shareholders NCC Shareholders Distribution +35% for Attendees +45% for +80% YOY 768 +95% YOY 1,524 + 62% YOY the HY the HY 1,524 1,400 1,100 800 768 500 200 NCC Shareholders NAC Sharehold
Slide 29: 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 30: 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 Sebastian Evans Warwick David Rickards Director Evans Independent Chairman Director Julie Coventry Jeffrey Kim
Slide 31: 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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