Salter Brothers Emerging Companies Ltd. · ASX:SB2
Salter Brothers Emerging Companies — Investor Presentation (September 2024)
18 slides from Salter Brothers Emerging Companies's investor presentation, Sep 16, 2024
Slide 1: Salter Brothers Emerging Companies Limited (ASX: SB2)
For personal use only SALTER BROTHERS EMERGING COMPANIES LIMITED (ASX CODE: SB2) S JEU PNTEE M 2B0 E2 R 3 2 0 2 4
Slide 2: Disclaimer
DISCLAIMER Important – General information and disclaimer is subject to change without notice. Past performance is provided Any investment contemplated by this document, including investment in This information contained in this document has been prepared by Salter for illustrative purposes only and
Slide 3: Contents
CONTENTS 1. Executive Summary 2. About Salter Brothers For personal use only 3. The Salter Brothers Team 4. Investment Team 5. The Manager’s Investment Process 6. Small Caps – Why Invest? 7. Small Caps – State of Play 8. SB2 Performance 9. Top 5 Holdings and Portfolio Metrics 10. Investment Case Stu
Slide 4: Executive Summary
EXECUTIVE SUMMARY › Salter Brothers is a global fund manager with over $3.5B of group assets under management. For personal use only › Salter Brothers Emerging Companies Limited (ASX–SB2) is a listed investment company (LIC) dedicated to investing in small cap Australian companies with a market capi
Slide 5: About Salter Brothers
ABOUT SALTER BROTHERS › Salter Brothers is a Global Fund Manager Salter Brothers’ Milestones Mandate for Managing with a focus on alternative investment KEY a SWF’s Hotel Portfolio (Australia) offerings for high net worth and Acquisitions, Investments For personal use only Key Milestones AUM $M & Ma
Slide 6: The Salter Brothers Team
THE SALTER BROTHERS TEAM Board of Salter Brothers Board of Salter Brothers Asset Management Emerging Companies Ltd. (SB2) Equities Investment Team Senior Management John Humphreys John Vatovec Gregg Taylor | Head of Equities Paul Joyce Chairman Chairman Investment Director – Listed / Chief Operating
Slide 7: The SB2 Investment Team
THE SB2 INVESTMENT TEAM Gregg Taylor - Lead Portfolio Manager Tineyi Matanda Investment Director & Head of Equities Director Years within: Years within: For personal use only • Salter Brothers: 2 • Salter Brothers: 7 • Industry: 25+ • Industry: 17+ › Previously Chief Investment Officer and Portfolio
Slide 8: The Manager's Investment Process
THE MANAGER’S INVESTMENT PROCESS A robust investment process designed to enable Salter Brothers Funds Management to stay on top of performance Opportunity The Manager utilises its network of financial advisors and brokers, industry experts and 1 For personal use only Sourcing operational partners to
Slide 9: Small Caps - Why Invest?
SMALL CAPS - WHY INVEST? Small Caps Poised for Strong Gains as Rate Historic Disparity in Performance: Cuts Approach A Reversion Opportunity › Historically, small-cap equities have delivered strong returns › The performance disparity between ASX-listed Small Industrials For personal use only followi
Slide 10: Small Caps - State of Play
SMALL CAPS - STATE OF PLAY › Since the start of July, small caps have clearly outperformed › Outperformance between the Russell 2000 and S&P 500 widened large caps, as shown by the Russell 2000 relative performance by as much as 12% in July, reflecting the significant investor rotation into gaining
Slide 11: SB2 Performance
SB2 PERFORMANCE ASX Emerging Performance Summary # SB2 Companies Index* Difference For personal use only 1 Months -0.47% 1.85% -2.32% 3 Months 8.47% -1.80% 10.27% 12 Months 16.59% 5.91% 10.68% Inception p.a* 2.45% 0.20% 2.25% Inception* 8.20% 0.66% 7.54% # Performance numbers calculated as at 31 Aug
Slide 12: Top Holdings and Portfolio Metrics
TOP 5 HOLDINGS AND PORTFOLIO METRICS Top 5 Holdings Market Cap Sector Company Description 1. Ai-Media Technologies Ltd Business Provider of live and recorded captioning, transcription, subtitles, translation, and speech analytics $115m (ASX:AIM) Software using a proprietary, cloud-based technology p
Slide 13: Investment Case Study – AIM
INVESTMENT CASE STUDY – AIM Ai-Media Technologies Ltd (ASX:AIM) is our largest current holding and was our #1 contributor for the month of August. For personal use only › Ai-Media, a global leader in AI-powered captioning, Ai-Media’s EV/EBITDA Multiple Target transcription, and translation solutions
Slide 14: Investment Case Study – AAL
INVESTMENT CASE STUDY – AAL Alfabs Australia Ltd (ASX:AAL) is one of our new high conviction positions. Alfabs EV/EBITDA Multiple Target vs. For personal use only › Alfabs Australia Ltd is a family-owned and operated company since 1986, with 50% of the business owned by the founding family. The ASX
Slide 15: Investment Case Study – CLG
INVESTMENT CASE STUDY – CLG Close the Loop Ltd (ASX:CLG) was our largest detractor for August 2024 Consensus EBITDA & NPAT For personal use only › Close the Loop collects and refurbishes products such as laptops, printers, teleconferencing equipment, and gaming devices; and provides sustainable pack
Slide 16: Discount to NTA
DISCOUNT TO NTA Discount Comparison Steps to Narrow the NTA and Share Price Gap: For personal use only › SB2 is currently trading at a ~37% discount to it’s $1.037 Post-Tax NTA as at 31 August 2024 37% › SB2 has been very active throughout September with its share buyback program, demonstrating our
Slide 17: Q&A
For personal use only Q&A Q&A S A LT E R B R O T H E R S | E M E R G I N G C O M PA N I E S L I M I T E D | S E P T E M B E R 2 0 2 4 1 7
Slide 18: Contact Us
CONTACT US Gregg Taylor For personal use only Investment Director & Head of Equities E | gregg.taylor@salterbrothers.com.au Yossi Kraemer Co‑head Capital Partnerships & Director Funds Management E | yossi.kraemer@salterbrothers.com.au P | 03 9258 2100 E | info@salterbrothersemergingcompanies.com.au
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