WAM Capital Ltd. · ASX:WAM
WAM Capital — Shareholder Meeting (November 2005)
13 slides from WAM Capital's shareholder meeting presentation, Nov 16, 2005
Slide 1: WAM Capital Limited Presentation November 2005
WAM CAPITAL LIMITED CAC ORG SN AUS) PRESENTATION November 2005
Slide 2: Objectives
WAM CAPITAL LTD OBJECTIVES ° High Real Rate of Return * Preserve Capital ¢ Strong Dividend Flow
Slide 3: Dividends
DIVIDENDS DIVIDEND INTERIM | FINAL | FULL | SPECIAL YEAR 1999/2000 2c 2c 4c 8c 2000/2001 3c 3c 6c 8c 2001/2002 4c 4c 8c 4c 2002/2003 4c 4c 8c - 2003/2004 5c Sc 10c - 2004/2005 6c 6c 12c -
Slide 4: Value Added
VALUE ADDED GROSS ALL OUTPERFORMANCE PORTFOLIO | ORDINARIES 1999/2000 +33.3% +11.3% +22.0% 2000/2001 +30.2% +8.9% +21.3% 2001/2002 +32.7% -4.5% +37.2% 2002/2003 +12.3% -1.1% +13.4% 2003/2004 +27.3% +22.4% +4.9% 2004/2005 +13.9% +24.8% -10.9% 2005/2006 +9.1% +5.8% +3.3% to 31 Oct 2005
Slide 5: Portfolio Structure
PORTFOLIO STRUCTURE Nov 04] Jun 05| Oct 05 Top 100 6.0% Companies Top 300 (Ex-100) 17.7% | 16.1% | 27.6% Companies ; Other 78.8% | 80.0% | 66.4% Research Driven 54.0% | 61.0% | 46.5% Market Driven 46.0% | 39.0% | 53.5% Shares 60.1% | 59.6% | 74.2% Cash Equivalent 39.9% | 40.4% | 25.8%
Slide 6: Investment Strategy
INVESTMENT STRATEGY * RESEARCH DRIVEN: Buying shares in companies predominantly in the industrial sector after extensive research. * MARKET DRIVEN: Buying shares in entities through initial public offerings, placements and the purchase of a block of stock below what the manager believes is the entit
Slide 7: Research Ranking Process
RESEARCH RANKING PROCESS » Each company is ranked on: - Management - Earnings Growth - Valuation - Industry Position ¢ Emphasis is also placed on a company’s free cash flow and return on equity. * Identify a catalyst or event.
Slide 8: Top Stocks — Oct 2004
TOP 10 STOCKS — Oct 2004 STOCK PERCENTAGE OF FUND 1.Reckon Ltd (RKN) 3.5% 2. Roberts Ltd (RBS) 2.6% 3. Loftus Capital Ltd (LCP) 2.1% 4. OFM Investment Group Ltd (OFM) 1.8% 5. OAMPS Ltd (OMP) 1.8% 6. Sydney Gas 12% Notes (SGLGA) 1.6% 7. Select Harvests Ltd (SHV) 1.5% 8. Credit Corp Ltd (CCP) 1.5% 9.
Slide 9: Top Stocks — Oct 2005
TOP 10 STOCKS — Oct 2005 STOCK PERCENTAGE OF FUND 1. Select Harvests Ltd (SHV) 3.7% 2 OAMPS Ltd (OMP) 2.8% 3 Contango Microcap Ltd (CTN) 2.8% 4. Tower Ltd (TWR) 2.5% 5. Tassal Group Limited (TGR) 2.5% 6. Credit Corp Ltd (CCP) 24% 7. Reckon Ltd (RKN) 24% 8. Telstra Corp Ltd (TLS) 2.0% 9. Photon Group
Slide 10: What Drives the Share Price?
WHAT DRIVES THE SHARE PRICE? 1. Performance 2. Market Conditions 3. Yield 4. Regulatory Environment 5. Supply & Demand
Slide 11: WAM Premium/Discount to Liquidation NTA
WAM CAPITAL LTD (WAM) WAM Premium/Discount to Liquidation NTA 26.0 20.0 $f ~~ =n nnn gn = 2 ~~ - === === == = enn 15.0 10.0 6.0 oo 5.0 Hi yL)}------------------------------------------------------------------------ Co 10.0 -- ify -------__-------------------------------------------------------------
Slide 12: Historic Premium / Discount
HISTORIC PREMIUM / DISCOUNT —— All Ords Accumulated Index mmm AFIC Premium/dsicount to NTA 30000 20.0% BOY 25000 i 0.0% ‘ 20000 4 a 50% h 4 \ ne — ew I N 509 000 \ | 7 50% /\ A -10.0% 5000 ‘ — f 6.0% Qo 20.0% 3tJan- 3tJul- StJan 34Ju- 3tdan- 3tJul 3tJan- 3tJub 34Jan- 3+Jul-04 3tJan- 3tJul Stan 34Ju-
Slide 13: Volatility
VOLATILITY lity in Stock Returns GSIBW Quantitative Res XFO_Volatili Measures the weighted-average volatility of all stocks within the ASX 100 each month Weighted Average Volati ity +Correlation.xis mae Low Volatility 2 Average Volatility High Volatility — Rolling 12 Month Volatility 40% 35% 30% 25%