NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — FY2020 Earnings Presentation
32 slides from NAOS Ex-50 Opportunities's earnings presentation, Jul 28, 2020
Slide 1: FY20 Q4 Investor Webinar
FY20 Q4 INVESTOR WEBINAR Tuesday, 28th July 2020 |11:00 am (AEST) Register Here (if you have not registered yet) Audio Dial-in +61 3 8488 8990 Access Code #421-642-018 P R E S E N T E D B Y S E B A S T I A N E VA N S & ROBERT MILLER CONVICTION. LONG TERM. ALIGNED | Copyright 2019 NAOS Asset Manageme
Slide 2: 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 only and must not be construed as investment advice. It does not constitute an offer to purchase any security or financial product or servi
Slide 3: NAOS Asset Management
NAOS Asset Management Our Mission To provide investors genuine long-term, concentrated exposure to Australian undervalued listed micro, small and mid-cap companies with an industrial focus. NAOS established its first Listed Investment Company (LIC) in 2013 with 400 shareholders, today NAOS manages $
Slide 4: NAOS investment beliefs provide a competitive advantage
NAOS investment beliefs provide a competitive advantage 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 redemption risk. Environmental,
Slide 5: NAOS investment portfolio financial year returns
NAOS investment portfolio financial year returns* 30% 20% 10% 0% -10% -20% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 NAOS Emerging Opportunities Company Limited (ASX: NCC) NAOS Ex-50 Opportunities Company Limited (ASX: NAC) NAOS Small Cap Opportunities Company Limited (ASX: NSC) * Investment Portfolio
Slide 6: NAOS LIC Dividend History and Profit Reserves
NAOS LIC Dividend History and Profit Reserves Each LIC has consistently paid dividends and holds healthy profit reserves 70 65.89 60 50 46.50 Cents per share (CPS) 40 37.57 30.90 30 26.30 20 16.70 17.86 14.80 12.50 10 0 NCC NAC NSC Total Dividends Paid (Since Inception) Total Gross Dividends Paid In
Slide 7: Where are we now?
Where are we now? Significant market rebound Surge in growth stocks Government stimulus Change in spending habits CONVICTION. LONG TERM. ALIGNED | Copyright 2020 2019 NAOS Asset Management Limited 7
Slide 8: Effect of COVID-19 on Australian spending
Effect of COVID-19 on Australian spending Spend for week ending 12 July vs normal (pre-Covid-19) week by industry* Food Delivery Furniture & Office Dept Stores Online Gambling Health Services Home Improvement Alcohol & Tobacco Industry Pet Care Taxi/Rideshare Travel Road Tolls Pubs & Venues Gyms & F
Slide 9: Australia's stimulus spend
Australia’s stimulus spend Government Spending and Stimulus Spending since 2003* 700 600 500 400 300 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Government Spend Stimulus Spend * Source: Federal Budget Papers, Mid Year Budget Review;
Slide 10: Market commentary – FY21 outlook
Market commentary – FY21 outlook Forecasting earnings over the next 12-18 months will be extremely difficult but the variables below will be key to providing direction for estimates over this period of time • Earnings artificially manipulated by stimulus • Interest rates and inflation • Potential va
Slide 11: Focus on the controllable
Focus on the controllable NAOS will continue to focus on the controllable to maximise risk adjusted returns Can Control Investing with proven management teams based on value/price and stock specific fundamentals on a 3-5-year view Can’t Control Market noise and timing of short-term market movements
Slide 12: Key business & industry traits for maximising performance
Key business & industry traits for maximising performance A growing revenue base provides companies with a number of competitive advantages such as the Industry Tailwinds Supporting ability to scale their fixed cost base and increase margins, the opportunity to reinvest to improve their product or s
Slide 13: NCC key portfolio events FY20 Q4
NCC key portfolio events FY20 Q4 HOLDING INDUSTRY Q4 UPDATE • Trading update provided in June Commercial & • HY dividend and FY dividend announced Professional • Cash position - expected to remain strong Services (ASX: BSA) • Strong tender pipeline with existing and new clients • Secured its 5th and
Slide 14: NCC overview – Cumulative Dividends
NCC overview as at 30 June 2020 $0.90 9.12% $0.795 16.07% 9.37% 93.02% $68.4m Pre Tax Fully Franked Share Price Q4 FY20 Performance Performance Weighted NTA Dividend Yield Performance^ since since Average Market Inception^ p.a. Inception^ Capitalisation of (Total Return) the Investments FULLY FRANKE
Slide 15: NSC key portfolio events FY20 Q4
NSC key portfolio events FY20 Q4 HOLDING INDUSTRY Q4 UPDATE • No formal update post the 1HFY20 result • Greg Paramour appointed as a Non-Executive Director Real Estate • A listed peer has seen occupancy levels remain resilient over past 3-4 (ASX: EGH) months • FY20 update - OTW expecting EBITDA to b
Slide 16: NSC overview – Cumulative Dividends
NSC overview as at 30 June 2020 $0.68 8.88% $0.45 14.71% -5.72% -14.10% $182.7m Pre Tax Fully Franked Share Price Q4 FY20 Performance Performance Weighted NTA Dividend Yield Performance^ since since Average Market Inception^ p.a. Inception^ Capitalisation of (Total Return) the Investments FULLY FRAN
Slide 17: NAC key portfolio events FY20 Q4
NAC key portfolio events FY20 Q4 HOLDING INDUSTRY Q4 UPDATE • Complementary acquisition of leading cloud-based regulation solution provider Itree • FY20 Trading update highlighting strong earnings growth & cash generation Software & Services • Recurring revenue now represents over 75% of the total r
Slide 18: NAC overview – Cumulative Dividends
NAC overview as at 30 June 2020 $1.06 6.65% $0.79 34.67% 11.06% 80.55% $298.8m Pre Tax Fully Franked Share Price Q4 FY20 Performance Performance Weighted NTA Dividend Yield Performance^ since since Average Market Inception^ p.a. Inception^ Capitalisation of (Total Return) the Investments FULLY FRANK
Slide 19: The benefits of LICs
The benefits of LICs Closed-ended structure Focus on investment credentials not share liquidity No requirement to be a forced buyer or seller of companies Smooth stream of dividends Tradeable on ASX Exposure to investment classes that are hard to replicate Transparency and significant
Slide 20: Addressing the discount to NTA
Addressing the discount to NTA At NAOS, we understand the discount to NTA can be a concern to investors. We are taking the following steps to address the discount. Performance Maintain a focus on long term performance without deviating from the NAOS investment philosophy. Dividends Continue to provi
Slide 21: 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 include: Concentrated portfolios Long-term investment philosophy Focus on smaller companies Benchmark unaware Industrial focus Smaller fund size ESG focus CONVICTION.
Slide 22: Outlook + Q&A
Outlook + Q&A Thank you for your continued support. “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 2019 NAOS Asset Management Limited 22
Slide 23: Appendix
APPENDIX CONVICTION. LONG TERM. ALIGNED | Copyright 2019 NAOS Asset Management Limited 23
Slide 24: NAOS Listed Investment Companies
NAOS Listed Investment Companies Each of our LICs target a concentrated portfolio of 0-20 companies CONVICTION. LONG TERM. ALIGNED | Copyright 2020 2019 NAOS Asset Management Limited 24
Slide 25: NAOS strong long term risk-adjusted returns
NAOS strong long term (5 years+) risk-adjusted returns * NCC Investment Portfolio Risk and Performance Metrics NAC Investment Portfolio Risk and Performance Metrics 13% 13% 11.06% 11% 11% 9.37% 9% 9% 7% 7% 5.41% 5% 4.49% 5% 3.54% 2.82% 3% 2.59% 3% 2.34% 1% 1% -1% -1% -1.28% -1.28% -3% -3% -3.37% -3.
Slide 26: NAOS management alignment
NAOS management alignment NAOS Director’s shareholdings have significantly increased since the inception of each LIC Inception Directors Shareholding (Ordinary Shares) 9,000,000 7,966,337 8,000,000 7,000,000 6,000,000 5,000,000 4,289,990 4,000,000 3,000,000 2,026,836 2,213,910 2,000,000 837,958 1,00
Slide 27: NAOS investment process
NAOS investment process CONVICTION. LONG TERM. ALIGNED | Copyright 2020 2019 NAOS Asset Management Limited 27
Slide 28: NAOS ESG framework
NAOS ESG framework CONVICTION. LONG TERM. ALIGNED | Copyright 2020 2019 NAOS Asset Management Limited 28
Slide 29: Historical shareholder numbers
Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 CONVICTION. LONG TERM. ALIGNED | Copyright 2020 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 2019 NAOS Asset Management Limited Feb-16 NCC Shareholders Apr-16 Jun-16 Aug-16 Oct-16 Historical shareholder numbers Dec-16 F
Slide 30: Investor awareness and communication
Investor awareness and communication CEO Insights, NAOS Shareholder Monthly Investment The news and media Twice yearly Investor Newsletter, Conference Report & NTA email section of our website Roadshow Webinar subscribe via our Calls/Webinars updates, subscribe via is updated regularly website subsc
Slide 31: NAOS Asset Management giving back
NAOS Asset Management giving back NAOS, the management company, is proud to be supporting the following charities. Since 2018 NAOS has donated a total of $90,000 to the following charities. ‘Golden Shouldered Parrot’ threatened ‘Reef Aid’ campaign, in partnership RFDS, dedicated to providing species
Slide 32: NAOS Directors and Team
NAOS Directors and Team 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 Independent Chairman Asset M
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