Regal Asian Investments Limited · ASX:RG8
Regal Asian Investments — VGI Partners Global Investments — Investor Presentation (May 2019)
24 slides from Regal Asian Investments's investor presentation, May 13, 2019
Slide 1: Equity Raising Presentation May 2019
GLOBAL VGI INVESTMENTS PARTNERS | umitep ASX: VG1 Equity Raising Presentation May 2019
Slide 2: Important notice and disclaimer
GLOBAL VGI INVESTMENTS Important notice and disclaimer PARTNERS | timiteD ‘The following notice and disclaimer applies to this investor presentation (Presentation) and you are therefore advised to read this carefully before reading or making any other use of this Presentation or any information cont
Slide 3: Important notice and disclaimer (cont.)
GLOBAL VGI INVESTMENTS Important notice and disclaimer (cont.) PARTNERS | NVESTS Past performance (continued) Recipients of this Presentation should also be aware that certain financial data included in this Presentation is "non-IFRS financial information” under Regulatory Guide 230 Disclosing non-I
Slide 4: Transaction overview
VG I GLOBAL INVESTMENTS. PARTNERS | umitep > Transaction overview
Slide 5: Transaction summary
TRANSACTION OVERVIEW VGI GLOBAL INVESTMENTS Transaction summary PARTNERS timed The Transaction Exclusive access to the Manager IPO Transaction rationale * Equity raising in VG1 to raise ~$300 million comprising of a ~$98 million Placement to sophisticated investors (completed 12 May 2019) and a ~$20
Slide 6: VG1 Equity Raising
TRANSACTION OVERVIEW VG1 Equity Raising Structure and offer • Placement and Entitlement Offer to raise ~$300m through issuance of 128.3 million shares (c. 46% of VG1’s capital pre completion of the equity price raising) - The ~$300m maximum raising size will not be increased under any circumstances
Slide 7: Indicative VG1 Equity Raising timetable
TRANSACTION OVERVIEW Indicative VG1 Equity Raising timetable Indicative timetable Date Completion of Placement ASX announcement of VG1 Equity Raising (including lodgement of Appendix 3B) Notice mailed to VG1 shareholders containing ‘Appendix 3B’ information Entitlement Offer ex-date Entitlements tra
Slide 8: Manager IPO
TRANSACTION OVERVIEW VGI GLOBAL Manager IPO PARTNERS umirep * Manager IPO to raise $75m : + Funds raised in the Manager IPO will allow for co- : investment in VGI Funds (including through buying + VG‘ investors receive a guaranteed eligibility to i shares in VG1) and the seeding of new investment in
Slide 9: VG1 performance and portfolio update
VG I GLOBAL INVESTMENTS. PARTNERS | umitep > VG1 performance and portfolio update
Slide 10: Key principles of VG1 Capital
VG1 PERFORMANCE & UPDATE Key principles of VG1 01 Capital Long-term Compound Portfolio Investment philosophy Concentration Preservation Growth Top 5 long The VG1 investment Do not lose Target of investments money 10-15% p.a. philosophy is based on the = 40-50% following key tenets: net of fees 02 St
Slide 11: Investment performance
VG1 PERFORMANCE & UPDATE VGI GLOBAL INVESTMENTS Investment performance PARTNERS timed * Compound annual growth in post-tax NTA Per Share’ 9034 NTA of +10.4% p.a. since inception to $2.34 per sharet so18 $2.24 * \VG‘1 has traded at an average premium of ~5% to NTA since listing $2.00 $2.02 in Septemb
Slide 12: Portfolio as at April 2019
VG1 PERFORMANCE & UPDATE Portfolio as at 30 April 2019 GLOBAL VGI PARTNERS tne Impact of VG1 Equity Raising 30 April 2019 $ million $ per Share NTA pre raising" 652 $2.34 NTA post raising’? 952 $2.34 Top Long Investments 30 April 2019 CME Group Inc. 12% Colgate Palmolive Co. 9% Amazon.com Inc. 9% Ma
Slide 13: The Manager IPO
VG I GLOBAL INVESTMENTS. PARTNERS | umitep > The Manager IPO
Slide 14: Introduction – the Manager
The Manager IPO Introduction – the Manager • 24 The Manager is a high conviction global manager with 24 team members based in Sydney, New York and Tokyo team members • Founded in 2008 by Robert Luciano - 11 year track record of strong performance 11 • Managed over $2.1 billion as at 31 March 2019 ye
Slide 15: Master Fund – annual performance
The Manager IPO Master Fund – annual performance VGI Partners The returns opposite Year to 31 December VGI Partners Index Relative Net Exposure have been generated 2009 13.9% 6.2% 7.7% 43% with a relatively low 2010 7.2% (1.9%) 9.1% 83% level of risk (average net equity exposure of 2011 4.1% (5.8%)
Slide 16: Master Fund – cumulative performance
The Manager IPO VGI GLOBAL Master Fund — cumulative performance PARTNERS mmep LIMITED $1,000,000 invested in the Master Fund at inception in January 2009 grew to approximately $4,033,600 at 31 March 2019 after all fees and expenses assuming that annual Master Fund distributions are reinvested 440 39
Slide 17: Master Fund – capital preservation and performance in up/down months
The Manager IPO Master Fund – capital preservation and performance in up/down months The combination of modest relative underperformance in Up Months and material relative outperformance in Down Months1, has led to the Master Fund achieving a compound average annual return of 14.6% net of fees, comp
Slide 18: The Manager's FUM & revenue characteristics
The Manager IPO The Manager’s FUM & revenue characteristics GLOBAL VGI INVESTMENTS PARTNERS | umitep Recurring management fee revenue $34.3m $19.2m $14.8m = | | a cY16 cy17 cy18 Go Forward (1) FUM Breakdown (adjusted for VG1 Equity Raising) Master VG1 Fund 38% 34% A$2.4bn / Offshore Fund ee 10% No i
Slide 19: Key offer statistics
The Manager IPO Key offer statistics GLOBAL VGI INVESTMENTS PARTNERS | umitep Key Offer Statistics Indicative Timetable Date Offer price per Share" Total number of Shares at Completion of the Offer Indicative market capitalisation at completion of the Offer? Pro-forma net cash (as at 31 December 201
Slide 20: Appendix
VG I GLOBAL INVESTMENTS. PARTNERS | umitep » Appendix
Slide 21: Summary of key risks
APPENDIX Summary of key risks Risk Factors Key Investment strategy risk The success and profitability of the Company largely depends upon the ability of the Manager to invest in a portfolio which generates an appropriate risk adjusted return for the Company. The past performance of the funds managed
Slide 22: Summary of key risks
APPENDIX Summary of key risks Risks arising from leverage, derivatives and short selling (cont.) There are inherent risks associated with short selling. Short selling involves borrowing securities which are then sold. If the price of the securities falls, then the Company can buy those securities at
Slide 23: Summary of key risks
APPENDIX Summary of key risks Significant risks of investing in the Company There is a risk that Shares will fall in value over short or extended periods of time. Historically, shares have outperformed other traditional asset classes over the long term. Share markets tend to move in cycles, and indi
Slide 24: Summary of key risks
APPENDIX Summary of key risks Risks associated with investment in shares, and other risks The VG1 Equity Raising is not underwritten, and therefore, there is no assurance that the full amount will be raised. The Company may chose to Transaction risk cancel the VG1 Equity Raising if it does not recei
VGI Partners Global Investments — Investor Presentation (May 2019) on 6ix