NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — Q3 FY2021 Earnings Presentation
34 slides from NAOS Ex-50 Opportunities's earnings presentation, Apr 13, 2021
Slide 1: Q3 FY21 Investor Update Webinar
Q3 FY21 INVESTOR UPDATE WEBINAR Tuesday 13 April 2021 | 10:30 am (AEST) Audio Dial In: +61 3 8488 8990 Audio Access Code: 327-202-376 PRESENTED BY NAOS ASSET MANAGEMENT CONVICTION. LONG TERM. ALIGNED | Copyright 2019 NAOS Asset Management Limited 1
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: 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 (0-15 investments) Long-term investment philosophy (5+ years) Focus on smaller companies ($20 million - $500 million) Benchmark unaware (No
Slide 6: NAOS LICs investment portfolio financial year returns
NAOS LICs investment portfolio financial year returns* 40% 30% 20% 10% 0% -10% -20% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 YTD NAOS Emerging Opportunities Company Limited (ASX: NCC) NAOS Ex-50 Opportunities Company Limited (ASX: NAC) NAOS Small Cap Opportunities Company Limited (ASX: NSC) * In
Slide 7: NAOS LIC Fully Franked Dividend History and Profit Reserves
NAOS LIC Fully Franked Dividend History and Profit Reserves Each LIC has consistently paid dividends and holds healthy profit reserves 80 75.70 70 60 53.75 Cents per share (CPS) 50 43.29 40 37.40 37.50 30.30 30 22.86 22.50 20 16.00 10 0 NCC NAC NSC Total Dividends Declared (Since Inception) Total Gr
Slide 8: Investment portfolio performance summary
Investment portfolio performance summary INCEPTION Investment Portfolio Q3 1 YEAR INCEPTION (NOM.) (P.A.) NAC Investment Portfolio Performance* +9.84% +88.95% +15.68% +153.31% NCC Investment Portfolio Performance* +3.70% +51.33% +12.08% +151.65% NSC Investment Portfolio Performance* +17.54% +59.21%
Slide 9: Summary of Q3 FY21
Summary of Q3 FY21 Strong Q3 FY21 performance across all of the NAOS LICs with NCC +3.7%, NSC +17.5% and NAC +9.8%. Continued focus on investing in businesses that are operating in industries with structural tailwinds served us well in reporting season with EGH +50%, EGG +50% and SND+25%. Plea
Slide 10: Summary of Q3 FY21
Summary of Q3 FY21 XJOAI – 3 Month Price Movement – rebased to 100 106 105 104 103 102 101 100 99 98 97 1-Jan-21 15-Jan-21 29-Jan-21 12-Feb-21 26-Feb-21 12-Mar-21 26-Mar-21 Source: IRESS CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 10
Slide 11: Summary of Q3 FY21 continued
Summary of Q3 FY21 continued Q3 provided excellent insights into most of the NAOS investments as 1H FY21 financial reports were released in February. Overall, it was a volatile quarter across the entire market. As with FY20 results, many companies 1H FY21 results were again affected due to benef
Slide 12: Summary of Q3 FY21
Summary of Q3 FY21 3 month relative price performance – rebased to 100 140 130 120 110 100 90 80 70 60 50 1-Jan-21 15-Jan-21 29-Jan-21 12-Feb-21 26-Feb-21 12-Mar-21 26-Mar-21 APT APX KGN MP1 Source: IRESS CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 12
Slide 13: NCC key portfolio events Q3 FY21
NCC key portfolio events Q3 FY21 HOLDING INDUSTRY Q3 UPDATE Provided a 1H result well ahead of market expectations and essentially achieved their full-year guidance in just 6 months. Construction/ Tender pipeline and order book remains at record levels. Engineering Dividend recommenced after a
Slide 14: NCC overview as at March 2021
NCC overview as at 31 March 2021 $1.07 6.53% $1.11 15 12.08% 151.65% $153.5m Pre Tax Fully Franked Share Price Number of Performance Performance Weighted NTA Dividend Yield Holdings since since Inception^ Average Market Inception^ p.a. (Total Return) Capitalisation of the Investments FULLY FRANKED D
Slide 15: NSC key portfolio events Q3 FY21
NSC key portfolio events Q3 FY21 HOLDING INDUSTRY Q3 UPDATE 1H FY21 NPATA was up 140% on PCP, driven by the FB&A segment and overall demand for equipment from SME’s. Financial Have launched an insurance broking business let by a former SDF executive. Services Net cash & investments position cu
Slide 16: NSC overview as at March 2021
NSC overview as at 31 March 2021 $0.96 5.96% $0.755 14 5.42% 19.22% $188.4m Pre Tax Fully Franked Share Price Number of Performance Performance Weighted NTA Dividend Yield Holdings since since Average Market Inception^ p.a. Inception^ Capitalisation of (Total Return) the Investments FULLY FRANKED DI
Slide 17: NAC key portfolio events Q3 FY21
NAC key portfolio events Q3 FY21 HOLDING INDUSTRY Q3 UPDATE ARR grew by 30% with EBITDA increasing by over 73%, despite expensed R&D increasing to 24% of revenue. Software & Cash flow conversion was not as strong as expected due to a large Services prepayment in the prior period. (ASX: OCL) Pr
Slide 18: NAC overview as at March 2021
NAC overview as at 31 March 2021 $1.38 4.93% $1.085 11 15.68% 153.31% $372.8m Pre Tax Fully Franked Share Price Number of Performance Performance Weighted NTA Dividend Yield Holdings since since Inception^ Average Market Inception^ p.a. (Total Return) Capitalisation of the Investments FULLY FRANKED
Slide 19: Capital Management Initiatives
Capital Management Initiatives Performance Maintain a focus on long term performance without deviating from the NAOS investment philosophy. Continue to focus on a growing stream of dividends, franked to the maximum extent possible, whilst Dividends maintaining an adequate reserve balance. Continue t
Slide 20: 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 21: Key business & industry traits for maximising long-term performance
Key business & industry traits for maximising long-term performance and reducing the risk of permanent capital loss events 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 m
Slide 22: Overview and Outlook Q4 FY21
Overview and Outlook Q4 FY21 February reporting season provided an excellent insight into how the core investments are executing on their respective strategies and what the potential for further organic and inorganic growth. Broad focus points that we believe will be topical over the final quart
Slide 23: Q&A
Q&A Thank you for your continued support. “Games are won by players who focus on the playing field - not by those whose eyes are glued to the scoreboard.” Warren Buffett CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 23
Slide 24: Appendix
APPENDIX CONVICTION. LONG TERM. ALIGNED | Copyright 2019 NAOS Asset Management Limited 24
Slide 25: NAOS strong long term (5 years+) 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 15% 20% 12.08% 15.68% 15% 10% 6.74% 10% 7.47% 5% 3.53% 2.68% 5% 2.97% 2.56% 0% 0% -1.12% -0.63% -3.28% -2.94% -5% -5% Performance Since
Slide 26: The features of a NAOS LIC
The features of a NAOS LIC Closed-end structure Long-term Intra-day Liquidity No applications or Investment decisions Trades on the ASX redemptions Corporate Governance Dividends Opportunity Public companies provide A growing stream of Trade at discount to assets accountability of Directors dividend
Slide 27: 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 2021 2019 NAOS Asset Management Limited 27
Slide 28: NAOS management alignment
NAOS management alignment NAOS Director’s shareholdings have significantly increased since the inception of each LIC Inception Directors Shareholding (Ordinary Shares) 31 March 2021 Directors Shareholding (Ordinary Shares) 9,000,000 8,099,202 8,000,000 7,000,000 6,000,000 4,912,706 5,000,000 4,000,0
Slide 29: NAOS investment process
NAOS investment process CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 29
Slide 30: NAOS ESG framework
NAOS ESG framework CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 30
Slide 31: Historical shareholder numbers
Historical shareholder numbers 7500 5000 2500 0 NCC Shareholders NAC Shareholders NSC Shareholders CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 31
Slide 32: Investor awareness and communication
Investor awareness and communication CEO Insights, NAOS Shareholder Monthly Investment The news and media Quarterly Webinars Newsletter, Conference Report & NTA email section of our website subscribe via our Calls/Webinars updates, subscribe via is updated regularly website subscribe via our our web
Slide 33: NAOS Asset Management 1% Pledge
NAOS Asset Management 1% Pledge As a company, we commit to Pledge 1% of revenue, time and intellect to movements and missions that matter. 1% Revenue 1% Time 1% Intellect Each year NAOS donates 1% of its annual Our people have an incredible range of skills NAOS sees the value in supporting revenue t
Slide 34: 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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