NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — Q3 FY22 Earnings Presentation
41 slides from NAOS Ex-50 Opportunities's earnings presentation, Apr 28, 2022
Slide 1: Q3 FY22 Investor Update and Q&A – Presentation Materials
NAOS EX-50 Level 34, MLC Centre OPPORTUNITIES 19 Martin Place COMPANY LIMITED Sydney NSW 2000 (ASX: NAC) T (02) 9002 1576 ABN 49 169 448 837 F (02) 8215 0037 E enquiries@naos.com.au www.naos.com.au For personal use only 28 April 2022 ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2
Slide 2: Q3 FY22 Investor Update & Q&A
Q3 FY22 For personal use only INVESTOR UPDATE & Q&A Thursday 28 April 2022 | 11:00 am (AEST) Audio Dial In: +61 3 8488 8990 Audio Access Code: 135-061-812 PRESENTED BY NAOS ASSET MANAGEMENT CONVICTION. LONG TERM. ALIGNED | Copyright 2019 NAOS Asset Management Limited 1
Slide 3: 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 4: NAOS Asset Management
NAOS Asset Management Our Mission For personal use only To provide investors genuine long-term, concentrated exposure to growing Australian undervalued emerging companies with an industrial focus. NAOS established its first Listed Investment Company (LIC) in 2013 with 400 shareholders, today NAOS ma
Slide 5: NAOS Directors and Team
NAOS Directors and Team OUR For personal use only DIRECTORS Sebastian Evans Warwick Evans Sarah Williams Matthew Hyder David Rickards OAM Mark Bennett Trevor Carroll Managing Director, NAOS Chairman, NAOS Asset Independent Director, Director, NAOS Asset Independent Chairman & Director, NAOS Asset In
Slide 6: NAOS investment beliefs provide a competitive advantage
NAOS investment beliefs provide a competitive advantage For personal use only Value with Long Quality over Invest for the Term Growth Quantity Long Term 5+ years Performance v Ignore the Pure Exposure Liquidity Focus Index to Industrials The closed end LIC structure No NAOS holdings removes applicat
Slide 7: Reasons not to invest with NAOS
Reasons not to invest with NAOS Our LICs are not for everyone. Some reasons why you may not choose to invest with NAOS For personal use only include: Concentrated portfolios (0-15 investments) Long-term investment philosophy (5+ years) Focus on smaller companies ($20 million - $500 million mar
Slide 8: NAOS LICs investment portfolio financial year returns
NAOS LICs investment portfolio financial year returns* For personal use only 60% 50% 40% 30% 20% 10% -6.67% 0% -1.38% -10% -14.35% -20% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 YTD NAOS Emerging Opportunities Company Limited (ASX: NCC) NAOS Ex-50 Opportunities Company Limited (ASX: NAC) NAO
Slide 9: NAOS LIC Fully Franked Dividend History and Profit Reserves
NAOS LIC Fully Franked Dividend History and Profit Reserves Each LIC has consistently paid dividends and holds healthy profit reserves For personal use only 90 85.70 80 70 61.25 60 Cents per share (CPS) 52.07 51.7 50 45.3 40 36.45 30.14 30 21.1 22.0 20 10 0 NCC (Feb 2013) NAC (Nov 2014) NSC (Dec 201
Slide 10: Investment portfolio performance summary
Investment portfolio performance summary For personal use only BENCHMARK Q3 FY22 1 YEAR 1 YEAR INCEPTION INCEPTION Investment Portfolio PERFORMANCE PERFORMANCE BENCHMARK (P.A.) PERFORMANCE PERFORMANCE (P.A.) NAC Investment Portfolio Performance* -16.78% -0.71% +10.96%^ +13.38% +7.94%^ NCC Investment
Slide 11: What research does NAOS apply to the Investment Process?
What research does NAOS apply to the Investment Process? The NAOS Investment Team undertakes fundamental analysis on potential and current investments. Some For personal use only examples of our key focus areas include: Internal Engagement External Engagement Hands On Research Executive Team includi
Slide 12: Q3 FY22 Summary
Q3 FY22 Summary The macroeconomic issues of 2021 became more acute i.e. Ukrainian war, sharp increase in For personal use only inflationary pressures and short term interest rate expectations resulting in significant market volatility during early CY22. Arguably a long overdue dose of ‘valuation
Slide 13: Q3 FY22 Summary Cont.
Q3 FY22 Summary Cont. Many core portfolio companies are direct beneficiaries of the domestic economic rebound and For personal use only will likely continue to be so for the medium to longer term i.e. Big River (ASX: BRI) and COG Financial Services (ASX: COG). Amongst the volatility, new investm
Slide 14: Domestic Real Wages Growth – Will it Return?
Domestic Real Wages Growth – Will it Return? For personal use only 6.00% 5.00% 4.00% 3.00% 2.60% Inflation Rate 2.00% 2.29% 1.00% 0.00% -0.31% -1.00% -2.00% Nominal wages growth Underlying inflation Real wages growth Source: NAOS, AFR, Australian Bureau of Statistics CONVICTION. LONG TERM. ALIGNED |
Slide 15: Declining Globalisation vs Increasing Australian Exports
Declining Globalisation vs Increasing Australian Exports For personal use only 60.0% 5.00% 4.50% 40.0% 30.9% 4.00% 22.8% 3.50% 20.0% 17.6% 19.0% 18.4% ASX-200 CY Performance 14.7% 14.6% 15.1% 13.0% 11.8% 9.7% 3.00% 5.9% 6.7% 7.0% 7.0% 2.8% Inflation 1.1% 0.0% 2.50% -2.6% -2.1% -1.5% -6.9% 2.00% -12.
Slide 16: Globalisation Declining Vs. Australian Exports Increasing
Globalisation Declining Vs. Australian Exports Increasing For personal use only 70.0% 60 50 60.0% 40 50.0% 30 40.0% World GDP $US Billion 20 10 30.0% 0 20.0% -10 10.0% -20 0.0% -30 Australia Net Trade in Goods ($US bn) (RHS) Global Trade (% of world GDP) (LHS) Source: NAOS, World Bank CONVICTION. LO
Slide 17: Australia's Inbound opportunity
For personal use only Australia’s Inbound opportunity April 2022 CONVICTION. LONG TERM. ALIGNED | Copyright 2019 NAOS Asset Management Limited 16
Slide 18: About Us
About Us For personal use only Experience Co (ASX:EXP) is an adventure tourism company. We are all about helping you escape the ordinary, with safety and adventure at the core of what we do. Experience Co employs over 1,000 people and operates across 37 locations in Australia and New Zealand. Experi
Slide 19: Australian Historic Inbound Growth
Australian Historic Inbound Growth For personal use only Prior to COVID 19 the Australian tourism industry was leading economic performer Significant growth over the last 10 years driven by record levels of international visitation and expenditure Growth rate of tourism expenditure outstripped Austr
Slide 20: The Recovery Pathway
The Recovery Pathway For personal use only Indicators are positive with regards to the ‘great reopening recovery’ Demand for OOR travel from key inbound markets is back to 54% of Pre-pandemic levels Aviation capacity been led by US carriers, closely followed by European and UK markets – Asian carrie
Slide 21: How does industry take advantage of 'reopening'
How does industry take advantage of ‘reopening’ For personal use only Companies that balance their portfolio, invest in the customer and renew product will win Tourism operators have learnt being solely ‘international’ is no longer sustainable a balanced portfolio is a ‘must’ Investment during the ‘
Slide 22: Thank you
21 For personal use only Thank you For more information: John O’Sullivan Chief Executive & Executive Director Experience Co CONVICTION. LONG TERM. ALIGNED | Copyright 2019 NAOS Asset Management Limited 21
Slide 23: NCC key portfolio events Q3 FY22
NCC key portfolio events Q3 FY22 HOLDING INDUSTRY Q3 UPDATE For personal use only 1H FY22 results saw substantial margin & cash balance improvements. Mobilisation of US Defence Dept. project in Darwin progressing to Construction/ expectations. Scope for expansion of works in medium term. Enginee
Slide 24: NCC overview as at March 2022
NCC overview as at 31 March 2022 For personal use only $1.11 7.25% $1.035 11 +12.10% +12.21% $145.4m Pre-Tax Fully Franked Share Price Number of Performance 1 Year Weighted NTA Dividend Yield Holdings since Inception^ Performance ^ Average Market p.a. Capitalisation of the Investments FULLY FRANKED
Slide 25: NSC key portfolio events Q3 FY22
NSC key portfolio events Q3 FY22 HOLDING INDUSTRY Q3 UPDATE For personal use only COG subsidiary Westlawn utilising surplus cash for the accretive and strategic acquisition of funds management business Equity One. Establishment of $31m parent company debt facility for future acquisitions Financi
Slide 26: NSC overview as at March 2022
NSC overview as at 31 March 2022 For personal use only $0.96 5.96% $0.855 8 +5.67% +6.05% $194.6m Pre-Tax Fully Franked Share Price Number of Performance 1 Year Weighted NTA Dividend Yield Holdings since Inception^ Performance ^ Average Market p.a. Capitalisation of the Investments FULLY FRANKED DIV
Slide 27: NAC key portfolio events Q3 FY22
NAC key portfolio events Q3 FY22 HOLDING INDUSTRY Q3 UPDATE For personal use only Detrimental impact of recent floods – Lismore substantially impacted. FY22 EBITDA guidance revised downwards driven by increased expenditure on people to ensure EGH can scale effectively. Real Estate Revenue prof
Slide 28: NAC overview as at March 2022
NAC overview as at 31 March 2022 For personal use only $1.18 6.15% $1.00 9 +13.38% -0.71% $167.3m Pre-Tax Fully Franked Share Price Number of Performance 1 Year Weighted NTA Dividend Yield Holdings since Inception^ Performance ^ Average Market p.a. Capitalisation of the Investments FULLY FRANKED DIV
Slide 29: Capital Management Initiatives
Capital Management Initiatives Performance • Maintain a focus on long term performance without deviating from the NAOS investment philosophy. For personal use only • Continue to focus on a growing stream of dividends, franked to the maximum extent possible, whilst maintaining an Dividends adequate r
Slide 30: Overview and Outlook Q4 FY22
Overview and Outlook Q4 FY22 For personal use only Market volatility likely to continue with numerous factors contributing to investor sentiment: Freight & logistics issues, widespread skill shortages, inflationary spike no longer appearing to be transitory. Domestic interest rates expectations
Slide 31: NAOS Asset Management 1% Pledge
NAOS Asset Management 1% Pledge For personal use only As a company, we commit to Pledge 1% of revenue, time and intellect to movements and missions that matter. 1% Revenue 1% Time 1% Intellect Each year NAOS donates 1% of its annual Our people have an incredible range of skills NAOS sees the value i
Slide 32: Q&A
Q&A For personal use only Thank you for your continued support. “Games are won by players who focus on the playing field - not by those whose eyes are glued to the scoreboard.” Warren Buffett CONVICTION. LONG TERM. ALIGNED | Copyright 2022 2019 NAOS Asset Management Limited 31
Slide 33: Appendix
APPENDIX For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2019 NAOS Asset Management Limited 32
Slide 34: NAOS strong long term (5 years+) risk-adjusted returns
NAOS strong long term (5 years+) risk-adjusted returns * For personal use only NCC Investment Portfolio Risk and Performance Metrics NAC Investment Portfolio Risk and Performance Metrics 15% 15% 13.38% 12.10% 10% 10% 7.94% 7.06% 5% 5% 3.43% 2.94% 2.62% 2.37% 0% 0% -0.84% -1.14% -3.24% -2.92% -5% -5%
Slide 35: The features of a NAOS LIC
The features of a NAOS LIC For personal use only Closed-end structure Long-term Intra-day Liquidity No applications or Investment decisions Trades on the ASX redemptions Corporate Governance Dividends Opportunity Public companies provide A growing stream of May trade at a discount or accountability
Slide 36: Key business & industry traits for maximising long-term performance
Key business & industry traits for maximising long-term performance and reducing the risk of permanent capital loss events For personal use only A growing revenue base provides companies with a number of competitive advantages such as the ability to Industry Tailwinds Supporting Long Term scale thei
Slide 37: NAOS management alignment
NAOS management alignment NAOS Director’s shareholdings have significantly increased since the inception of each LIC For personal use only Inception Directors Shareholding (Ordinary Shares) 31 March 2022 Directors Shareholding (Ordinary Shares) 9,000,000 8,384,109 8,000,000 7,000,000 6,000,000 5,331
Slide 38: NAOS investment process
NAOS investment process For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2022 2019 NAOS Asset Management Limited 37
Slide 39: NAOS ESG framework
NAOS ESG framework For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2022 2019 NAOS Asset Management Limited 38
Slide 40: Historical shareholder numbers
Historical shareholder numbers For personal use only 8000 6000 4000 2000 0 NCC Shareholders NAC Shareholders NSC Shareholders CONVICTION. LONG TERM. ALIGNED | Copyright 2022 2019 NAOS Asset Management Limited 39
Slide 41: Investor awareness and communication
Investor awareness and communication For personal use only CEO Insights, NAOS Quarterly Monthly Investment The news and media Newsletter, Webinars Report & NTA email section of our website subscribe via our updates, subscribe via is updated regularly website our website naos.com.au naos.com.au/ naos
NAOS Ex-50 Opportunities Company — Q3 FY22 Earnings Presentation on 6ix