NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — NAOS Absolute Opportunities Company — Q3 FY2017 Earnings Presentation
24 slides from NAOS Ex-50 Opportunities's earnings presentation, Apr 21, 2017
Slide 1: Quarterly Investor Briefing 3rd Quarter FY-2017
For personal use only QUARTERLY INVESTOR BRIEFING 3RD QUARTER FY-2017 NAOS Absolute Opportunities Company Limited (ASX: NAC)
Slide 2: Call Details
CALL DETAILS For personal use only 1. Date Friday 21 April 2017 2. Time 9.00am 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 a
Slide 3: NAC Agenda
NAC AGENDA For personal use only 1. NAC Q3 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 31 MARCH 2017 For personal use only 2 Year 1 Month 3 Month 1 Year Inception (p.a.) Inception (Nom.) (p.a.) NAC Investment Portfolio +1.48% -0.78% +18.94% +21.37% +20.25% +55.16% Performance* Benchmark (RBA Cash Rate + 250bps) +0.36% +1.06% +
Slide 6: Positive Stock Attribution Summary (Since Inception)
NAC: POSITIVE STOCK ATTRIBUTION SUMMARY (SINCE INCEPTION) AS AT 31 MARCH 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 tota
Slide 7: Return Profile, Positive v Negative Months
NAC: RETURN PROFILE, POSITIVE V NEGATIVE MONTHS AS AT 31 MARCH 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 31 MARCH 2017 For personal use only NTA ANALYSIS Pre Tax - $1.13 Post Tax & Pre Unrealised Gains Tax – $1.15 Post Tax - $1.11 Share Price $1.115 Share Price (Discount)/Premium to NTA (undiluted, pre tax) -1.33% Fully Franked Dividend Yield 4.48% Gross Dividend Yield 6.41%
Slide 9: Historical Fully Franked Dividend Profile
NAC: HISTORICAL FULLY FRANKED DIVIDEND PROFILE AS AT 31 MARCH 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 31 MARCH 2017 For personal use only 5,000,000 4,930,951 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,198,500 1,000,000 200,000 488,568 500,000 500,000 0 137,958 David Rickards* Warwick Evans* Sebastian E
Slide 11: Portfolio Structure: Historical Net Equity and Cash Weightings
NAC: PORTFOLIO STRUCTURE HISTORICAL NET EQUITY AND CASH WEIGHTINGS AS AT 31 MARCH 2017 For personal use only Net Equity Weighting Cash and Cash Equivalents Weighting Short Exposure Income Instruments 120% 100% 80% 82.58% 60% 40% 20% 17.42% 0% 0.00% -14.49% -20% -40% -60% Absolute Long Term Investing
Slide 12: Portfolio Structure
NAC: PORTFOLIO STRUCTURE AS AT 31 MARCH 2017 For personal use only Net Industry Exposure Geographical Equity Exposure Commercial Services 16.88% Financials 16.76% 97.07% Australia Telecommunications 12.87% 82.58% Media 10.41% Software 5.69% Banks 5.41% 0.00% Europe Food & Beverage 4.14% 0.00% Consum
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: Portfolio Update for Q3 FY2017
NAC MARKET OUTLOOK: PORTFOLIO UPDATE FOR Q3 FY2017 For personal use only CBL Corporation (ASX: CBL) - New position for the NAC portfolio. - Operating for 43 years as a specialist insurer and reinsurer for credit and financial risk. - Focussed on writing profitable insurance rather than growing marke
Slide 16: NAC Market Outlook: Portfolio Update for Q3 FY2017
NAC MARKET OUTLOOK: PORTFOLIO UPDATE FOR Q3 FY2017 For personal use only Shaver Shop (ASX: SSG) - Significant sell-off in share price around soft Christmas trading. - Directors bought stock after the fall and so did the NAC portfolio. - SSG have now announced improved sales and subsequently upgraded
Slide 17: NAC Market Outlook: Market Commentary
NAC MARKET OUTLOOK: MARKET COMMENTARY For personal use only Significant Increase in Market “Noise” Through Q3 FY2017 - Market obsession with Australian house prices and potential government policy changes. - APRA changes around lending standards and subsequent costs for property owners. - Geopolitic
Slide 18: NAC Share Purchase Plan (SPP) and Placement Summary
NAC SHARE PURCHASE PLAN (SPP) AND PLACEMENT SUMMARY For personal use only Successful Completion of SPP and Placement - The Placement and SPP raised approximately $10 million, increasing the NTA to circa $60 million. - The main reasons for completing this capital raising were to: - Take advantage of
Slide 19: Market Outlook: ASX-300 Relative Stock Performance
MARKET OUTLOOK: ASX-300 RELATIVE STOCK PERFORMANCE For personal use only The market malaise within small to mid cap industrial companies has continued into Q3 FY2017, as shown by significant negative share price movements in companies such as RFG, RCG, FBU, CSV and ISD. Pleasingly, there are also si
Slide 20: 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 21: 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 22: 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 23: 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 Julie Coventry Jeffrey Kim
Slide 24: 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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