Pinnacle Investment Management Group Limited · ASX:PNI
Pinnacle Investment Management — Longwave Sydney Summit 2025
12 slides from Pinnacle Investment Management's conference presentation, July 2025
Slide 1: Popular or Profitable?
Popular or Profitable? Melinda White July 2025
Slide 2: Cra2ySexyCool
Cra2ySexyCool
Slide 3: What is Popular Today?
_What is Popular Today?) A | IS TWENTY > Al MASTERS OF : — ALWAYS WIN
Slide 4: Private Equity Quiet Compounders
Private Equity Quiet Compounders ● Long term horizon and alignment ● Investing in the growth lifecycle ● Control Shareholder ● Conservative approach to leverage ● Deep operational experience and ● Full transparency industry knowledge ● Daily pricing and liquidity ● No Control Premium 4
Slide 5: Public Companies who act like Private Equity
Public Companies who act like Private Equity Quiet Compounders 50,000 Average +16.2% p.a 5,000 All Ords +9.5% p.a 500 50 90 95 00 05 10 15 20 25 Source: Bloomberg 30 th June 2025, Reflects All Ordinaries (XAO) from 1990 to 2025. Returns are indexed total returns. Past performance is not a reliable i
Slide 6: The IPO Berg
The -Berg IPO Number of IPOs 20% Beat 250 the Small 200 Ords Index 150 42% Above 100 IPO Price 50 0 58% Below 2025 YTD 2000 2010 2020 1998 1999 2001 2002 2003 2004 2005 2006 2007 2008 2009 2011 2012 2013 2014 2015 2016 2017 2018 2019 2021 2022 2023 2024 IPO Price ● 2,400 IPOs since late 90’s ● 24% =
Slide 7: 7
7
Slide 8: IPOs: What does good look like?
IPOs: What does good look like? Commission / Gross Margin (A$m) Free Cash Flow (A$m) 60.0 40.0 50.0 30.0 40.0 20.0 30.0 10.0 20.0 0.0 10.0 0.0 -10.0 T-2 T-1 T T+1 T-2 T-1 T T+1 Wotif Booktopia Wotif Booktopia Source: Wotif, Booktopia Prospectus, Longwave Capital like-for-like free cash flow calculat
Slide 9: Hot Themes: Popular but are they profitable?
Hot Themes: Popular but are they profitable? ROIC (%) 10.0% 1,000.0 30% 8.0% 800.0 25% 20% 6.0% 600.0 15% 4.0% 2.0% +8% p.a 400.0 200.0 10% +22% p.a 5% 0.0% 0.0 0% -2.0% (200.0) F14 F15 F16 F17 F18 F19 F20 F21 F22 F23 F24A F25E F26E F27E F28E F29E -5% F04 F05 F06 F07 F08 F09 F10 F11 F12 F13 F14 F15
Slide 10: Small Caps: Biggest Discount since the GFC
Small Caps: Biggest Discount since the GFC Small Cap vs ASX100 12M FWD P/E Australia Investment Grade Corporate Debt Cost (%) 21 10.0% 19 9.0% 8.0% 17 7.0% 15 6.0% 13 5.0% 11 4.0% Small Ords P/E (12M Fwd) 3.0% 9 ASX100 P/E (12M Fwd) 2.0% 7 1.0% 5 0.0% 05 06 07 08 09 10 11 12 13 14 15 16 17 18 19 20
Slide 11: More Consistent Alpha at Lower Fees
More Consistent Alpha at Lower Fees 30 Jun 2025 Fund Since Strategy 1 Month 3 Month 6 Month 1 Year 3Yrs p.a 5Yrs p.a Net Fund / Bmark Incep p.a2 SI p.a3 Fund Net -0.4% 8.3% 6.0% 11.4% 11.7% 9.9% 7.5% 10.8% Benchmark1 0.8% 8.6% 6.4% 12.3% 10.0% 7.4% 4.9% 7.4% Net Alpha -1.2% -0.3% -0.4% -0.8% 1.7% 2.
Slide 12: Disclaimer
Disclaimer Interests in the Longwave Australian Small Companies Fund (ARSN 630 979 449) (‘the Fund’) is issued by Pinnacle Fund Services Limited (ABN 29 082 494 362 AFSL 238371) (PFSL) as Responsible Entity of the Fund. PFSL is not licensed to provide financial advice. The Product Disclosure Stateme
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