NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — Investor Presentation (April 2020)
28 slides from NAOS Ex-50 Opportunities's investor presentation, Apr 8, 2020
Slide 1: NAOS Investor Update Webinar – COVID 19
For personal use only ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 8 April 2020 NAOS Investor Update Webinar – COVID 19 Please find attached presentation materials for the NAOS Investor Update Webinar. Laura Newell Company Secretary Authorised for ASX release by the Board of
Slide 2: Investor Update and Q&A, COVID-19
NAOS Asset Management Limited For personal use only Investor Update and Q&A, COVID-19 11:00am 8th April 2020 Register for the webinar, if you have already registered then you will have received an email with a link to join the webinar. Alternatively, participants may dial in for audio only +61 2 909
Slide 3: Important Information
Important Information This material has been prepared by NAOS Asset Management Limited (ABN 23 107 624 126, AFSL 273529) (NAOS) for general information purposes For personal use only only and must not be construed as investment advice. It does not constitute an offer to purchase any security or fina
Slide 4: 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 removes application and redemptio
Slide 5: Investment team focus in the current environment
NAOS Investment team focus in the current environment For personal use only Short-Term Liquidity Proven Long-Term Management Solvency Teams NAOS Focus Long-Term Quality Trends CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Management Limited 4
Slide 6: COVID-19 implications
COVID-19 implications The key issues impacting the majority of businesses within the current economic environment: For personal use only Revenue Reduction • Little to no domestic or international tourism • Closure of retail stores and cafes/restaurants • Significant reduction in elective surgeries a
Slide 7: COVID-19 impact on NAOS LIC core investments
COVID-19 impact on NAOS LIC core investments In our view, the near term impact of COVID-19 on the core holdings across the NAOS LIC’s can be classified as follows: For personal use only 30% 19.85% % Share Price Movement March 2020 15% 0.19% 0% -3.85% -15% -11.59% -9.06% -21.65% -19.44% -30% -24.66%
Slide 8: COVID-19 impact on NAOS LIC core investments: Positive
COVID-19 impact on NAOS LIC core investments Investment COVID-19 Impact Positive For personal use only • Significant network dependency driven by demand for voice applications i.e. Zoom video conferencing. MNF Group Limited • MNF should be a significant beneficiary as more people work remotely. (ASX
Slide 9: COVID-19 impact on NAOS LIC core investments: Neutral
COVID-19 impact on NAOS LIC core investments Investment COVID-19 Impact Neutral For personal use only • We do not expect any significant change to existing operations. Saunders International • SND currently have the largest order and tender book in the company’s history with Tier-1 clients i.e. RIO,
Slide 10: COVID-19 impact on NAOS LIC core investments: Negative
COVID-19 impact on NAOS LIC core investments For personal use only Investment COVID-19 Impact Negative • COG have ceased writing leases and will now ‘run-off’ the lease book over the next 2-3 years. Consolidated Operations • The broking business has seen a significant uptick in demand due to governm
Slide 11: Impact on 'quality businesses'
Impact on ‘quality businesses’ * Businesses that have generally been perceived as high quality have not been immune to market volatility, For personal use only below are select figures from companies within the S&P/ASX All Ordinaries Index (XAO) for the month of March. -20.70% 43 450 14 Average comp
Slide 12: Impact on 'quality businesses'
Impact on ‘quality businesses’ * Funds Management For personal use only • Significant revenue drop due to lower funds under management even if revenue is recurring in nature. Stock examples: Pendal Group (ASX: PDL) -40%, • Yet to see any significant evidence of redemptions/outflows which were signif
Slide 13: Long term investing
Long term investing Historical Market Events and S&P/ASX All Ordinaries Accumulation Index Long Term Performance* For personal use only 7000 S&P/ASX All Ordinaries Accumulation Index 6000 5000 COVID-19 4000 3000 US Loses 2000 Tech Wreck Global AAA Stock Great Bond Financial Credit Market Australian
Slide 14: Bear markets since 1987
Bear markets since 1987 For personal use only Number of Days 1 14 27 40 53 66 79 92 105 118 131 144 157 170 183 196 209 222 235 248 261 274 287 300 313 326 339 0% -10% -20% Market Decline % -30% -40% -50% -60% 2020 2011 2007-2009 2002-2003 1994-1995 1989-1991 1987 Average S&P/ASX All Ordinaries Bear
Slide 15: Potential for further downside
Potential for further downside For personal use only Longer lasting COVID-19 How sharp will the restrictions demand recovery be? e.g. international travel potentially not e.g. will businesses and consumers be re-commencing until end CY20 more cautious? Long term structural Long term credit issues de
Slide 16: Investment portfolio financial year returns
NAOS investment portfolio financial year returns * For personal use only 30% 20% 10% 0% -10% -20% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 YTD NAOS Emerging Opportunities Company Limited (ASX: NCC) NAOS Ex-50 Opportunities Company Limited (ASX: NAC) NAOS Small Cap Opportunities Company Limited (ASX:
Slide 17: LIC dividend history and profit reserves
NAOS LIC dividend history and profit reserves For personal use only 70 65.89 60 50 46.50 Cents per share (CPS) 40 35.64 30.90 30 24.95 20 16.43 17.90 15.80 11.50 10 0 NCC NSC NAC Total Dividends Paid (Since Inception) Total Gross Dividends Paid Including Franking (Since Inception) Profit Reserves 31
Slide 18: Summary
Summary For personal use only Short-term earnings Continue to upgrade are irrelevant, focus the quality of the purely on business investments when survival opportunities arise Invest in businesses where positive long- Focus on long-term term trends are valuation scenarios sustainable Smaller and mor
Slide 19: Q&A
Q&A For personal use only Thank you for your continued support, we hope you and your family stay well. “If you own stocks like you’d own a farm or apartment house, you don’t get a quote on those every day or every week.” Warren Buffett CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Manag
Slide 20: Appendix
Appendix For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Management Limited 19
Slide 21: Investment universe
NAOS investment universe For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Management Limited 20
Slide 22: 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 9% 9% 7.44% 7% 7% 5.60% 5% 5% 3.16% 3.09% 2.69% 3% 2.40% 3% 1.54% 1.72% 1% 1% -1% -1% -1.35% -1.28% -3% -3% -3.41
Slide 23: Alignment of interests
NAOS alignment of interests For personal use only 9,000,000 7,944,998 • Investment team members 8,000,000 Inception Directors Shareholding (Ordinary are prohibited from holding 7,000,000 Shares) any securities outside of the NAOS LICs. 6,000,000 • Directors and all investment 31 March 2020 Directors
Slide 24: Investment process
NAOS investment process For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Management Limited 23
Slide 25: ESG framework
NAOS ESG framework For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Management Limited 24
Slide 26: Giving
NAOS giving For personal use only NAOS Asset Management, the management company, is proud to be giving back ~ 1% of recurring income to the following charities ‘Golden Shouldered Parrot’ threatened ‘Reef Aid’ campaign, in partnership RFDS, dedicated to providing species project, in partnership with
Slide 27: Directors and Team
NAOS Directors and Team For personal use only OUR DIRECTORS Sebastian Evans Warwick Evans Matthew Hyder David Rickards Sarah Williams Mark Bennett Trevor Carroll Managing Director, NAOS Chairman, NAOS Asset Director, NAOS Asset Independent Chairman & Independent Director, Director, NAOS Asset Indepe
Slide 28: Investor awareness and communication
Investor awareness and communication For personal use only CEO Insights, NAOS Shareholder Monthly Investment The news and media Twice yearly National Newsletter, Conference Calls, Report & NTA email section of our website Roadshow subscribe via our subscribe via our updates, subscribe via is updated
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