WAM Capital Ltd. · ASX:WAM

WAM Capital — Investor Presentation (May 2008)

30 slides from WAM Capital's investor presentation, May 27, 2008

  1. Slide 1: WAM Capital Limited Presentation May/June 2008

    W AM CAPI TAL LI M I TED For personal use only A.B.N. 34 086 587 395 PRESENTATION MAY/JUNE 2008

  2. Slide 2: Objectives

    W AM CAPI TAL LTD For personal use only OBJECTI VES H igh Re a l Ra t e of Re t u r n Pr e se r ve Ca pit a l St r on g D ivide n d Flow

  3. Slide 3: Performance History

    PERFORM AN CE H I STORY For personal use only 600 550 500 450 % Pe rform a n ce 400 350 300 250 200 150 100 50 - (50) A u g u st 1 9 9 9 - A p ril 2 0 0 8 W A M C a p it a l L t d - G r o s s P o r t f o lio b e f o r e a ll e x p e n s e s , f e e s , t a x e s a n d d iv id e n d s A ll O r d in a

  4. Slide 4: Dividends

    D I VI D EN D S For personal use only 18 16 14 12 ce n t s 10 Sp e cia l per sh a re 8 O rd in a ry 6 4 2 0 8 0 1 2 3 4 5 6 7 0 0 0 0 0 0 0 0 0 / / / / / / / / / 7 9 0 1 2 3 4 5 6 0 9 0 0 0 0 0 0 0 0 9 0 0 0 0 0 0 0 2 1 2 2 2 2 2 2 2 * * Interim dividend

  5. Slide 5: Net Assets as at December

    a s a t 3 1 D e ce m be r 2 0 0 7 For personal use only ( be for e t h e m a r k e t dow n t u r n ) Net Assets $181,401,509 Shareholder's Equity $150,393,568 Unrealised Capital Profits Reserve $9,061,254 Retained Earnings $20,038,516 Current Year Earnings $1,908,171 Total Equity $181,401,509

  6. Slide 6: Portfolio Structure

    PORTFOLI O STRUCTURE For personal use only As at 31 As at As at December 2007 31 March 2008 22 May 2008 $m % % $m % % $m % % Research 49 41% 37 46% 41 38% Trading 70 59% 43 54% 65 62% Long Portfolio 119 100% 62% 80 100% 52% 106 100% 66% Short Portfolio - - - - (0.6) - 1% Fixed Interest and Cash 72 3

  7. Slide 7: Discount to NTA

    D I SCOUN T TO N TA For personal use only As a t 3 0 Apr il 2 0 0 8 Ce n t s D iscou n t Pr e - t a x N TA 149.6* 11% Aft e r - t a x N TA 146.9* 9% Sh a r e Pr ice 133.0** * Aft e r t h e pa ym e nt of a 8 .0 0 ce n t int e r im fu lly fr a n k e d divide n d * * As a t close of t r a din g 2 3 M a

  8. Slide 8: Top Trading Stocks

    TOP 1 0 TRAD I N G For personal use only STOCKS % % of Change Market Gross Average Code Company Value $m Assets Cost NAB National Australia Bank Ltd $4.16 2.6% 8% ANZ ANZ Banking Group Ltd $2.67 1.7% - 4% LEI Leighton Holdings Ltd $2.50 1.6% 22% QBE QBE Insurance Group Ltd $2.25 1.4% 6% ADG Adtrans

  9. Slide 9: Top Research Stocks

    TOP 1 0 RESEARCH STOCKS For personal use only % % of Change Market Gross Average Code Company Value $m Assets Cost RKN Reckon Ltd $6.96 4.4% 65% MLB Melbourne IT Ltd $4.66 2.9% 80% HFA HFA Holdings Ltd $3.02 1.9% - 37% PGA Photon Group Ltd $2.77 1.7% 14% MMS McMillan Shakespeare Ltd $2.75 1.7% 68% S

  10. Slide 10: Best Performing Stocks

    BEST PERFORM I N G STOCKS For personal use only Ja n u a r y t o Apr il 2 0 0 8 Unrealised / Realised % * Code Company Gains DXL Dyno Nobel Ltd $444,187 34% SYB Sym bion H e a lt h Lt d $371,003 5% Eve r e st Ba bcock & Br ow n EBI Alternative Inv Trust $287,548 12% DYNPA D yn o N obe l SPS Tr u st

  11. Slide 11: Worst Performing Stocks

    W ORST PERFORM I N G For personal use only STOCKS Ja n u a r y t o Apr il 2 0 0 8 Unrealised/ Realised % * Code Company Losses MCU M it ch e ll Com m . Gr ou p Lt d ($1,197,844) - 37% WTP Watpac Ltd ($1,332,991) - 42% HFA HFA Holdings Ltd ($1,441,516) - 43% RTN Rattoon Holdings Ltd ($1,549,606) - 50

  12. Slide 12: Research Ranking Process

    RESEARCH RAN KI N G For personal use only PROCESS Ea ch com pa n y is r a n k e d on : - M a n a ge m e n t - Ea r n in gs Gr ow t h - Va lu a t ion - I n du st r y Posit ion Em ph a sis is a lso pla ce d on a com pa n y s fr e e ca sh flow a n d r e t ur n on e qu it y. I de n t ify a ca t a lyst o

  13. Slide 13: Reckon Limited

    Re ck on Lim it e d For personal use only Accou n t in g soft w a r e provider and distributor Reckon vs S&P/ASX All Ordinaries Index Strong market position $1.60 8000 and experienced 7000 S&P/ASX All Ordinaries Index management $1.20 6000 5000 Price $0.80 4000 Consistent performer 3000 t h r ou gh

  14. Slide 14: Reckon Ratings Template

    Re ck on Ra t ings Te m pla t e For personal use only P & L STATEMENT 2007 2008 2009 2010 1H09 Revenue 55.3 63.1 68.2 73.0 34.1 Revenue growth n/a 14.1% 8.1% 7.0% n/a EBITDA 16.5 19.3 21.2 22.7 10.6 EBIT 12.7 15.0 16.9 18.5 8.5 NPAT 9.9 11.5 13.3 14.6 6.7 EPS 7.46 8.66 10.02 11.00 EPS growth n/a 16.

  15. Slide 15: Melbourne IT

    M e lbou r n e I T For personal use only Online solutions provider Melbourne IT vs S&P/ASX All Ordinaries Index 8000 Experienced $4.00 management team, 7000 S&P/ASX All Ordinaries Index strong balance sheet $3.00 6000 5000 Price 4000 $2.00 Recent acquisitions look 3000 to drive 2009/2010 $1.00 2000

  16. Slide 16: Melbourne IT Ratings Template

    M e lbou r n e I T Ra t ings Te m pla t e For personal use only P & L STATEMENT 2007 2008 2009 2010 1H08 Revenue 153.6 174.1 190.2 202.8 84.5 Revenue growth n/a 13.3% 9.2% 6.6% n/a EBITDA 27.0 30.8 32.3 33.5 14.5 EBIT 20.1 23.5 24.7 25.4 11.4 NPAT 13.9 17.5 20.0 22.2 8.6 EPS 18.10 22.79 26.04 28.91

  17. Slide 17: Everest Babcock & Brown Alternative Investment Trust

    Eve r e st Ba bcock & Br ow n Alt e r n a t ive I n v For personal use only Tr u st Everest Babcock & Brown vs S&P/ASX All Ordinaries Tr a din g a t 4 0 % discou n t Index to NTA $3.90 $3.70 Tw o ove r se a s H e dge Fu n ds $3.50 on register. $3.30 Price $3.10 $2.90 Ope s Pr im e se lldow n $ 2 .5

  18. Slide 18: All Ordinaries

    All Or din a r ie s For personal use only 1 March 2003 - 19 May 2008 8000 7000 6000 5000 4000 3000 2000 1000 0 March September March September March September March September March September March 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008

  19. Slide 19: Small Industrials

    Sm a ll I ndust r ia ls For personal use only 1 March 2003 to 19 May 2008 4500 4000 3500 3000 2500 2000 1500 1000 500 0 March September March September March September March September March September March 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008

  20. Slide 20: Small Resources

    Sm a ll Re sou r ce s For personal use only 1 March 2003 - 19 May 2008 8000 7000 6000 5000 4000 3000 2000 1000 0 March September March September March September March September March September March 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008

  21. Slide 21: Industrials

    I ndust r ia ls For personal use only 1 March 2003 to 19 May 2008 8000 7000 6000 5000 4000 3000 2000 1000 0 March September March September March September March September March September March 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008

  22. Slide 22: Financials

    Fina ncia ls For personal use only 1 March 2003 to 19 May 2008 8000 7000 6000 5000 4000 3000 2000 1000 0 March September March September March September March September March September March 2003 2003 2004 2004 2005 2005 2006 2006 2007 2007 2008

  23. Slide 23: Market Indices

    M a r k e t I ndicie s For personal use only 1 March 2003 to 19 May 2008 600 Small Resources Resources 500 Small Ordinaries All Ordinaries Industrials 400 Small Industrials Financials 300 200 100 0 March September March September March September March September March September March 2003 2003 2004 2

  24. Slide 24: WPL/Large Industrials ex Fin (Median) - Relative PER

    W PL/ LARGE I N D USTRI ALS EX FI N ( M ED I AN ) - Relative PER Pr ospe ct ive GSJBW W PL PER ( Pr e G/ w ill) v's La r ge For personal use only I n du st r ia ls e x Fin ( M e dia n ) Current PER WPL (08e) 24.33 Large Industrials ex Fin (Median) (08e) 15.32 P r e m / D isc ( % ) PER Relative(%): 5

  25. Slide 25: Historical Oil Price

    H ist or ica l Oil Pr ice For personal use only 140 120 100 80 Oil price 60 40 20 0 1988 1989 1990 1991 1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

  26. Slide 26: ANZ/Large Industrials ex Fin (Median) - Relative PER

    AN Z/ LARGE I N D USTRI ALS EX FI N ( M ED I AN ) - Relative PER Pr ospe ct ive GSJBW AN Z PER ( Pr e G/ w ill) v's La r ge I n du st r ia ls ex Fin (Median) For personal use only Current PER ANZ (09e) 9.04 Large Industrials ex Fin (Median) (09e) 14.38 Pr e m / D isc ( % ) PER Relative(%): -37.1 -10

  27. Slide 27: NAB/Large Industrials ex Fin (Median) - Relative PER

    N AB/ LARGE I N D USTRI ALS EX FI N ( M ED I AN ) - Relative PER Pr ospe ct ive GSJBW N AB PER ( Pr e G/ w ill) v's La r ge For personal use only I n du st r ia ls e x Fin ( M e dia n ) Current PER NAB (09e) 9.95 Large Industrials ex Fin (Median) (09e) 14.38 Pr e m / D isc ( % ) PER Relative(%): -30

  28. Slide 28: All Industrials - Valuation of Equities Relative to Bonds

    ALL INDUSTRIALS - VALUATI ON OF EQUI TI ES RELATI VE TO BON D S: M ULTI PLE OF BON D YI ELD TO EQUI TY EARN I N GS For personal use only YIELDS M ULTIPLE 1.6 EQUITIES RELATIVELY OVERVALUED 1.5 1.4 1.3 +1 Std Dev 1.2 1.1 Average 1.0 0.9 -1 Std Dev 0.8 0.7 EQUITIES RELATIVELY UNDERVALUED 0.6 88 89 90

  29. Slide 29: For personal use only

    For personal use only Source: Google

  30. Slide 30: For personal use only

    For personal use only

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