Odyssean Investment Trust PLC · LSE:OIT
Odyssean Investment Trust — Q3 2023 Earnings Presentation
40 slides from Odyssean Investment Trust's earnings presentation, December 2025
Slide 1: Odyssean Investment Trust PLC Q3 2023 Update
Odyssean Investment Trust PLC Q3 2023 Update
Slide 2: Important Information
Important Information • The information contained in this presentation is for the use of Professional and Institutional Investors only • Past performance is not a reliable indicator of future performance and Investors may not get back the value of their original investment • The value of Odyssean In
Slide 3: Executive Summary – Q3 2023
Executive Summary – Q3 2023 NAV slightly up in a moderately weak market • NAV per share rose 1.4%1,2 in the period. NSCI +AIM ex IC index (“Comparator”) fell 1.3% 2,3 • Key portfolio news: NCC announced slightly better than anticipated final results. Offshore centre in Manilla opened ahead of schedu
Slide 4: Performance update
Performance update NAV per share rose c.1.4% in Q3 in a slightly down market Performance % Annualised Inception Since Q3-23 YTD-23 CY22 CY21 CY20 CY19 since to Dec-18 inception inception NAV Total Return Per Share1 +1.4% -9.2% +5.5% +25.0% +13.1% +22.0% -3.7% +59.0% +8.9% Share price return3 +0.2% -
Slide 5: Our investment strategy has delivered strong long term returns
Our investment strategy has delivered strong long term returns Attractive absolute and relative performance, without any gearing Strategy NAV per share performance since inception1,2,3 30 June 2009 – 30 September 2023 CAGR CAGR 1000 Over 14.0 years Whilst invested 900 800 Strategy 15.4% 17.0% 700 ou
Slide 6: Performance drivers in Q3 2023
Performance drivers in Q3 2023 Key stock contributors Largest positive contributors Largest negative contributors • Half year report confirmed the group was • Limited trading updates in the period but two bolt on trading in-line despite de-stocking pressures acquisitions announced strengthening the
Slide 7: Why we invested in XP Power
Why we invested in XP Power Our investment thesis 1. Global niche market leader serving general industrial, healthcare and semiconductor equipment markets 2. End market growth GDP +c.3% across the cycle 3. Track record of market share gain 4. Semiconductor equipment clients at a low ebb – with signi
Slide 8: XP - what has happened and what we have done
XP - what has happened and what we have done What happened early October 2023 How we have responded • Unscheduled trading update indicating • 2x calls with Chairman, 1x call with CEO/CFO • trading was weaker than expected • Discussions with corporate broker and other stakeholders • Sought insight in
Slide 9: Portfolio
Portfolio High conviction portfolio Top portfolio holdings¹ Elementis • Top 10 holdings account for 83% of NAV NCC • Continuing quieter period for new positions and 2.2% exits – single, smaller position in Synthomer exited Xaar on concerns around balance sheet and trading 12.9% Ascential outlook 14.
Slide 10: Portfolio
Portfolio Focused on our core sectors and core market cap range Holding by sector 1 Holding by market cap 1 2.2% 2.2% 1.3% Sub £100m 7.9% 9.7% Industrials £100m-£500m 11.2% TMT 46.0% 34.8% £500m-£1bn Business Services Healthcare Over £1bn 53.9% 30.9% Cash + Other Net cash • Industrials remains the l
Slide 11: Sector performance during stagflation
Sector performance during stagflation A recap from April 2022 Lessons from history on performance in periods of ‘stagflation’ US sector performance: '73 - '80 European sector performance: '73 - '80 Energy 142% Energy 171% Industrials 26% IT 97% Materials 22% Industrials 89% US -2% Europe 57% Financi
Slide 12: UK Smaller Companies can provide global exposure
UK Smaller Companies can provide global exposure OIT’s portfolio is more international currently than the FTSE 100 Revenue exposure by geography1, 2, 3 • Portfolio revenue generation is balanced by 100% geographic area, which we believe spreads political ROW and economic risk 90% 80% • Few companies
Slide 13: Elementis
Elementis Public activist campaign by the largest investor What has happened? What are our views? • In September 2023 the largest shareholder (Franklin – owns • There is significant hidden value in the company’s balance sheet c.10%) made public a letter to the Chairman where they called • We believe
Slide 14: Top 10 holdings summary
Top 10 holdings summary Niche market leaders, often with international operations and self-help Holding Market position Self-help/engagement opportunities Global market leader with high quality industrial talc and high quality Plant footprint optimisation; more higher value add products; invest hect
Slide 15: Key portfolio themes by sub-sector
Key portfolio themes by sub-sector Account for c.95% of NAV • Market share recovery following improved supply chain and new product introductions • Low capital intensity and well invested -> growth not capex hungry Specialist B2B • Products enable substantial energy cost savings Electronics (28% NAV
Slide 16: Special situations across the portfolio
Special situations across the portfolio Lots of ways for companies to create/unlock value Material cost Market share Margin Undervalued/ SOTP¹ Geographic Holding synergies for a growth/ Other improvement hidden growth discount arbitrage trade buyer recovery Mineral asset ✓ ✓ ✓ ✓ ✓ backing ✓ ✓ ✓✓ ✓ ✓
Slide 17: US equities peaked at >100% premium to Quest during 2021
US equities peaked at >100% premium to Quest during 2021 UK equities trade at the largest discount to Quest® fair value of major markets Aggregate Market Value (Discount)/Premium to Default Quest® fair value 75% 55% 50% 39% 41% 27% 25% 25% 14% 16% 19% 3% 0% -3% -25% -12% -26% -28% -28% -50% World US
Slide 18: Portfolio trading significantly below long run ratings
Portfolio trading significantly below long run ratings Any return towards recent average ratings suggests significant upside in the portfolio Implied share price upside Current 10 year av. Current 10 year av. on reversion to 10 year av. Company % NAV EV/Sales EV/Sales P/Book P/Book EV/Sales P/Book A
Slide 19: Flows into UK SMID OEICs continue to be very negative
Flows into UK SMID OEICs continue to be very negative £2.2bn outflows since end 2021 £bn Fund flows for UK SMID OEICs1 1.5 12.5% 10.0% 1.0 7.5% 5.0% 0.5 2.5% 0.0 0.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 ytd -2.5% -0.5 ann -5.0% -7.5% -1.0 -10.0% -1.5 -12.5% Net flow (£bn) % o
Slide 20: UK All Companies OEICs have experienced high outflows YTD
UK All Companies OEICs have experienced high outflows YTD YTD outflows remain high £bn Fund flows for UK All Company OEICs1 7.5 7.5% 5.0 5.0% 2.5 2.5% 0.0 0.0% 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 -2.5 ytd -2.5% ann -5.0 -5.0% -7.5 -7.5% -10.0 -10.0% -12.5 -12.5% -15.0 -15.0%
Slide 21: The investment cycle
The investment cycle Looking for signs of improving fundamentals in UK Equities? Market phase Bear Market Bottom Early Stage Mid-Stage Bull Peak of Bull Market Recovery Market General vertical direction (but not horizonal direction) of asset price movements Investment style Balance sheet Value Growt
Slide 22: Supporting Portfolio & Market Data
Supporting Portfolio & Market Data
Slide 23: Outlook - update
Outlook - update We remain optimistic for the medium term Overall market conditions • Market sentiment remains extremely poor (with the exception of the Super 7 Mega Cap US Tech companies) • Outflows continue in UK SMID OEICs • Liquidity is poor Opportunities & reasons to be positive • Quest® indica
Slide 24: UK equities have experienced material de-ratings since May-21
UK equities have experienced material de-ratings since May-21 Absolute ratings are undemanding relative to recent history Forward NTM p/e multiple by FTSE Index1 FTSE AIM premium to FTSE Small Cap Index1 25x OIT IPO 100% OIT IPO 80% 20x 60% 15x 40% 10x 20% 0% 5x -20% 0x -40% Mid 250 Small Cap AIM Al
Slide 25: Widespread acceptance our broad asset class is cheap
Widespread acceptance our broad asset class is cheap Focus on macro is holding back allocations? 25
Slide 26: Portfolio sector exposure overtime
Portfolio sector exposure overtime Industry exposure shifts driven by where we believe there are opportunities Sectoral split over time 0.4% 1.0% 100.0% 1.6% 3.1% 0.0% 0.0% 2.2% 4.4% 3.6% 4.4% 6.5% 0.0% 10.2% 8.6% 10.0% 9.6% 8.9% 1.9% 10.9% 11.9% 12.0% 8.5% 10.1% 14.0% 3.1% 6.3% 8.6% 11.5% 9.7% 0.0%
Slide 27: ESG - Portfolio company voting record over Q3 2023
ESG - Portfolio company voting record over Q3 2023 Continued to follow our consistent guidelines and raise our concerns where appropriate • A quiet period for shareholder votes through the summer Number of meetings 1 Number of resolutions 5 Number voted 5 Voted with management 5 Voted against manage
Slide 28: ESG performance and disclosure
ESG performance and disclosure Improving trend of performance and disclosure ESG performance and disclosure (out of 100) of portfolio companies 60 50 40 30 20 10 0 A B C D E F G H I J K L M N O P Company First year of analysis Latest year Source: CEN ESG Advisory; Odyssean Capital. As at 30thSeptemb
Slide 29: Investment strategy recap – neither growth nor value
Investment strategy recap – neither growth nor value Based on 3 pillars: Valuation, Quality and Engagement, with Sector focus Target Zone Valuation • Invest at a significant discount to owner’s valuation • Look for businesses with multiple drivers of equity value growth (sales; margin; rating; free
Slide 30: Sectors we focus on
Sectors we focus on We focus on four key sectors we know well • We believe the best investment decisions are made from a Odyssean: view of main sectors base of knowledge and experience High Low Sector B2B focus ROCE/cash • We focus on sectors where the team has expertise and where cyclicality expert
Slide 31: Corporate engagement
Corporate engagement Goal to augment returns from stock selection • We use engagement to create, defend or recover value • Operational efficiency • Fixed assets and to deliver differentiated returns • R&D allocation • • IP maximisation Capex allocation Asset • The investment team has more than 23 ye
Slide 32: Portfolio construction
Portfolio construction Our strategy is more similar to Private Equity than other Public Equity funds Typical Long Only Odyssean Strategy Typical Private Equity Number of positions 50-100 Up to 25 10-15 Typical position size 1% 3-8% at cost, max 20% 10% Typical holding period Variable 3-5 years 3-5 y
Slide 33: Odyssean Investment Trust - key company facts
Odyssean Investment Trust - key company facts NAV £183m1 Shares in issue 116,807,053 Domicile UK Full listing, London Stock Exchange Board Fully independent. Owns c.1% of issued share capital. Will use all fees, post tax, to buy shares Internally managed, small registered UK AIFM. Portfolio Manageme
Slide 34: Further performance data
Further performance data As at 30th September 2023 Performance % 1 year 3 year 5 year NAV Total Return Per Share1 +4.4% +46.7% +56.8% Share price return3 +4.2% +57.0% +51.7% NSCI + AIM ex IC Total Return3 +3.3% +9.9% -1.0% As at 30th September 2023. Performance measured from COB 1/5/18, share perfor
Slide 35: OIT shareholder base
OIT shareholder base As at 30th September 20231 Shareholder base by investor type Shareholders >3% Harwood Capital 1.5% 0.9% Cazenove Capital Wealth Manager RBC Brewin 9.7% 14.1% Ian Armitage Connected Parties 32.9% Investec Wealth Retail Investors 10.8% 18.3% Raymond James 49.0% Institutions Close
Slide 36: Disclaimer
Disclaimer The sole purpose of this document is to provide information on Odyssean Investment Trust Plc (“OIT”) and its underlying investment strategy. The information contained in this document is strictly confidential and is intended for the named recipient only. The unauthorised use, disclosure,
Slide 37: Disclaimer
Disclaimer No representation or warranty, either expressed or implied, is or will be made or given and no responsibility or liability is or will be accepted by Odyssean Capital LLP or by any of their respective directors, officers, employees, members, agents or advisers in relation to the accuracy o
Slide 38: Quest Disclaimer
Quest Disclaimer Appendix: Important Disclosures Quest® is at this stage registered in the UK and in the USA, and common law trademark rights are asserted in other jurisdictions. For the purposes of UK regulation Canaccord Genuity Limited (“CGL”) produces non-independent research which is a marketin
Slide 39: Quest Disclaimer
Quest Disclaimer objectives, and investors should make their own independent decisions regarding any securities or strategies discussed herein. Please contact your salesperson for more information regarding Canaccord Genuity’s research. General Disclaimers See “Required Company-Specific Disclosures”
Slide 40: Contact details
Contact details Portfolio Manager Investor Relations Partner Odyssean Capital LLP Frostrow Capital LLP 6 Stratton Street 25 Southampton Buildings London London W1J 8LD WC2A 1AL www.odysseancapital.com www.frostrow.com Stuart Widdowson Tel: +44 (0)7710 031620 Tel: +44 (0)20 3008 4910 Email: info@odys
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