NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — Q4 FY22 Earnings Presentation
44 slides from NAOS Ex-50 Opportunities's earnings presentation, Jul 28, 2022
Slide 1: Q4 FY22 Investor Update and Q&A – Presentation Materials
NAOS Ex-50 Level 34 OPPORTUNITIES 25 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 July 2022 ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 Q4 FY22 I
Slide 2: Q4 FY22 Investor Update and Q&A
For personal use only Thursday 28 July 2022 | 10:30 am (AEST) Audio Dial In: +61 2 9087 3602 Audio Access Code: 909-805-002 Q4 FY22 Investor Update and Q&A
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 For personal use only To provide investors genuine long-term, concentrated exposure to Australian undervalued emerging companies with an industrial focus. NAOS established its first Listed Investment NAOS was originally founded in 2004 and Company (LIC) in 2013 with 400 shareho
Slide 5: NAOS Directors and Team
NAOS Directors and Team OUR For personal use only DIRECTORS Sebastian Evans Warwick Evans Sarah Williams David Rickards OAM Matthew Hyder Trevor Carroll Mark Bennett Managing Director, NAOS Chairman, NAOS Asset Independent Director, Independent Chairman & Director, NAOS Asset Independent Chairman Di
Slide 6: Our Investment Beliefs and Differentiation
Our Investment Beliefs and Differentiation For personal use only 4
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 & shareholdings often >20%) Long-term investment philosophy (5+ years) Focus on emerging companies ($2
Slide 8: NAOS Investment Portfolio Financial Year Returns
NAOS Investment Portfolio Financial Year Returns* For personal use only 60% 50% 40% 30% 20% 10% -14.72% 0% -10% -20% -15.14% -28.36% -30% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 NAOS Emerging Opportunities Company Limited (ASX: NCC) NAOS Ex-50 Opportunities Company Limited (ASX: NAC) NAOS
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 54.36 CENTS PER SHARE 50.6 50 45.3 40 38.05 32.07 30 22.45 21.1 20 10 0 NCC (Feb 2013) NAC (Nov 2014) NSC (Dec 2017) To
Slide 10: Investment Portfolio Performance Summary
Investment Portfolio Performance Summary For personal use only BENCHMARK Q4 FY22 INCEPTION Q4 FY22 1 YEAR 1 YEAR INCEPTION Investment Portfolio PERFORMANCE BENCHMARK PERFORMANCE BENCHMARK PERFORMANCE PERFORMANCE PERFORMANCE (p.a.) PERFORMANCE (p.a.) NCC Investment Portfolio -13.95% -12.91%^ -15.14%
Slide 11: What Qualitative Information Sources Does NAOS Use?
What Qualitative Information Sources Does NAOS Use? The NAOS Investment Team undertakes fundamental analysis on potential and current investments. Some For personal use only examples of our key focus areas include: 9
Slide 12: 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 30 June 2022 Directors Shareholding 9,000,000 8,394,479 8,000,000 7,000,000 6,000,000 5,332,207 NUMBER OF SHARES 5,000,000 4,000
Slide 13: The Case for Concentrated Investing
The Case for Concentrated Investing Holding too many stocks in a portfolio can lead to poor risk adjusted performance For personal use only Source: NAOS Asset Management 11
Slide 14: Q4 FY22 Summary
Q4 FY22 Summary For personal use only Inflationary impacts have finally hit home during Q4 with central banks playing catch-up and raising rates at record paces. The current geopolitical issues are having widespread & significant negative effects on the macro environment. Many impacts are diffic
Slide 15: Q4 FY22 Summary Cont. – Total Returns Breakdown
Q4 FY22 Summary Cont. Total Returns (%) Breakdown - 2HFY22 For personal use only 30 20 10 0 3.8 % Return -10 -9.9 -20 -23.7 -30 -40 -36.4 -50 31-Dec-21 31-Jan-22 28-Feb-22 31-Mar-22 30-Apr-22 31-May-22 30-Jun-22 ASX200 Acc. Index ASX Small Ordinaries Acc. Index ASX All Technology Index ASX200 Resour
Slide 16: Australian IPO Market
Q4 FY22 Summary Cont. For personal use only Australian IPO Market - 2021 Exuberance Vs. 2022 Almost 'Closed' $4,500 80 $4,000 70 Aggregate Transaction Value (AU$M) $3,500 60 Number of Transactions $3,000 50 $2,500 40 $2,000 30 $1,500 20 $1,000 $500 10 $0 0 06/2020 Q 09/2020 Q 12/2020 Q 03/2021 Q 06/
Slide 17: Australian Yield Curve Changes During FY22
Q4 FY22 Summary Cont. For personal use only Australian Yield Curve Changes During FY22 4.00 3.74 3.50 3.48 3.31 3.15 What a difference 12 3.00 2.96 2.96 months can make… 2.76 Interest rate expectations 2.57 2.50 2.41 2.54 now playing catch-up to inflation. 2.14 2.10 2.00 Yield (%) 1.50 1.36 1.32 1.0
Slide 18: Consumer Confidence Index by Geography
Q4 FY22 Summary Cont. Consumer Confidence Index by Geography For personal use only 106 104 102 Consumer Confidence Index 100 98 96 94 92 90 01-Jul-19 01-Nov-19 01-Mar-20 01-Jul-20 01-Nov-20 01-Mar-21 01-Jul-21 01-Nov-21 01-Mar-22 Australia United Kingdom USA New Zealand China Europe Source: OECD, NA
Slide 19: Welcome Simon Lee
Welcome Simon Lee Chief Executive Officer and Executive Director For personal use only 17
Slide 20: About Urbanise
About Urbanise For personal use only FM Combined Strata • Urbanise (ASX: UBN) is a cloud-based proptech business that provides software solutions for strata and facilities managers • Our main markets are Australia, New Zealand, Asia and the UAE • We have around 75 people across 6 countries in sales
Slide 21: Strata Management
Strata Management A key role in community living For personal use only • Strata legislation introduced in NSW in 1961 • Replicated around the world (including Canada, Dubai, Singapore, New Zealand, Singapore and Malaysia) • Strata scheme handles the legal ownership of a portion of a building, where
Slide 22: Strata Market
Strata Market Segmentation of strata managers For personal use only Strata Management Only Part of wider business Key Players Small & Medium Large Developers Real Estate • Australia: PICA, Smarter Start-ups (1k – 40k lots) (40k + lots) Regions Communities, Bright and Duggan, Whittles, SSKB Austr
Slide 23: Facilities Management
Facilities Management For personal use only A broad role in the management of facilities assets • “Facilities” is any structure or area (assets) that can accommodate commercial, residential, industrial and mixed-use activities • Facilities managers support the functionality, safety, maintenance and
Slide 24: Facilities Market
Facilities Market For personal use only Key Players Sectors Educatio Aged Utilities Mining Council Other Australia: n care / NDIS s/ LGAs • Spotless, Programmed, Ventia, Sodexo, ISS Facilities Services, JLL, CBRE, BGIS • 400 plus FM Outsourcers Tier 1 FM Outsourcer Middle East: • 5 Major players dom
Slide 25: Technology Challenges
Technology Challenges For personal use only Challenges Strata Facilities Urbanise Engagement of customers (being Tenants & Owners Users of facilities, trades & Communication apps & sticky) customer portals Co-ordination with other services Building services Space/booking management, Integrations (in
Slide 26: NAOS Investee Companies - Key Events Q4 FY22
NAOS Investee Companies - Key Events Q4 FY22 HOLDING INDUSTRY Q4 UPDATE For personal use only FY22 result confirmed at upper end of previously stated guidance. BRI published long term financial targets around margins, ROFE and a dividend Building Supplies payout ratio target for the first time.
Slide 27: NAOS Investee Companies - Key Events Q4 FY22
NAOS Investee Companies - Key Events Q4 FY22 HOLDING INDUSTRY Q4 UPDATE For personal use only Appointment of Simon Lee as CEO. Positive commentary regarding upskilling to occur on the Board of Directors. Software & Services Trading update negatively impacted by material customer loss which we
Slide 28: NCC Overview as at June 2022
NCC Overview as at 30 June 2022 For personal use only $0.90 $0.93 $0.83 9.04% 14 $147m Pre-Tax NTA Post-Tax NTA Share Price Fully Franked Number of Weighted Average Dividend Yield Holdings Market Capitalisation of the Investments FULLY FRANKED DIVIDEND HISTORY Fully Franked Dividends Paid Cumulative
Slide 29: NAC Overview as at June 2022
NAC Overview as at 30 June 2022 $0.90 $0.96 $0.875 7.26% 13 $146m For personal use only Pre-Tax NTA Post-Tax NTA Share Price Fully Franked Number of Weighted Average Dividend Yield Holdings Market Capitalisation of the Investments FULLY FRANKED DIVIDEND HISTORY Fully Franked Dividends Paid Cumulativ
Slide 30: NSC Overview as at June 2022
NSC Overview as at 30 June 2022 $0.84 $0.84 $0.73 7.12% 14 $198.3m For personal use only Pre-Tax NTA Post-Tax NTA Share Price Fully Franked Number of Weighted Average Dividend Yield Holdings Market Capitalisation of the Investments FULLY FRANKED DIVIDEND HISTORY Fully Franked Dividends Paid Cumulati
Slide 31: Capital Management Initiatives
Capital Management Initiatives For personal use only 29
Slide 32: Overview & Outlook Q1 FY23
Overview & Outlook Q1 FY23 For personal use only Companies continue to adjust to the post COVID environment which will benefit some industries and weigh on others. We expect this to be a continued theme in outlook commentary during August reporting season. Will the recent interest rate increases
Slide 33: Outlook Q1 FY23 - continued
Outlook Q1 FY23 - continued Updates from almost all portfolio companies expected in the August reporting season. For personal use only As with the previous year we believe the focus will not be so much on the FY22 result but on the immediate outlook and the first couple of months of trading. I
Slide 34: NAOS Asset Management 1% Pledge
NAOS Asset Management 1% Pledge For personal use only 32
Slide 35: 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 33
Slide 36: Appendix
For personal use only Appendix
Slide 37: Investment Portfolio Performance vs. Benchmark
Investment Portfolio Performance vs. Benchmark For personal use only 1 Year 3 Year Performance 5 Year Performance Inception Investment Portfolio Performance (P.A) (P.A) Inception (P.A.) (Total Return) NAC -28.36% +9.16% +6.86% +10.30% +111.32% NAC Benchmark -9.56% +2.20% +4.98% +5.97% +55.68% NCC -1
Slide 38: NAOS Strong Long-term Risk-adjusted Returns
NAOS Strong Long-term Risk-adjusted Returns * NCC Investment Portfolio Risk and Performance Metrics NAC Investment Portfolio Risk and Performance Metrics For personal use only 15% 15% 10.30% 9.97% 10% 10% 5.97% 4.29% 5% 5% 2.90% 3.43% 2.62% 2.30% 0% 0% -1.23% -1.36% -3.10% -3.49% -5% -5% Performance
Slide 39: NAOS Strong Long-term Risk-adjusted Returns
NAOS Strong Long-term Risk-adjusted Returns * For personal use only NSC Investment Portfolio Risk and Performance Metrics 10% 5% 3.30% 3.66% 2.38% 2.24% 0% -1.88% -3.74% -5% Performance Since Monthly Average Monthly Average Inception p.a. Performance when the Performance when the Market is up Market
Slide 40: Historical Shareholder Numbers
Historical Shareholder Numbers For personal use only 8000 6000 4000 2000 0 NCC Shareholders NAC Shareholders NSC Shareholders 37
Slide 41: NAOS ESG Framework
For personal use only NAOS ESG Framework 38
Slide 42: 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 Industry Tailwinds Supporting A growing revenue base provides companies with a number of competitive advantages such as the ability to scale Long-Term Reve
Slide 43: Why Invest via a Listed Investment Company?
Why Invest via a Listed Investment Company? We strongly believe LICs are a highly effective structure to give investors the highest quality For personal use only exposure to specific asset classes, which in the case of NAOS is emerging businesses. A Listed Investment Company structure: Allows the
Slide 44: Investor Awareness and Communication
Investor Awareness and Communication For personal use only FOLLOW NAOS 41
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