WAM Capital Ltd. · ASX:WAM
WAM Capital — Investor Presentation (June 2005)
13 slides from WAM Capital's investor presentation, Jun 8, 2005
Slide 1: WAM Capital Limited Presentation
WAM CAPITAL LIMITED CAC ORG SN AUS) PRESENTATION June 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 - - -
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 +10.7% +15.5% -4.8% to April 30 2005
Slide 5: Portfolio Structure
PORTFOLIO STRUCTURE Sep 01 | Oct 02 | Oct 03 | Nov 04 | Jun 05 Top 100 17.5% | 9.9% | 15.1% | 3.5% 3.9% Companies | Top 300 (Ex-100) | 62.4% | 39.5% | 39.0% | 17.7% | 16.07% Companies | Other 37.6% | 60.5% | 61.0% | 78.8% | 80.03% Research Driven | 60.2% | 50.1% | 42.0% | 54.0% | 61.0% Markel Diven
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
TOP 10 STOCKS STOCK PERCENTAGE OF FUND 1. Select Harvests Ltd (SHV) 3.1% 2. Reckon Ltd (RKN) 2.6% 3. Roberts Ltd (RBS) 2.4% 4. Tower Ltd (TWR) 2.3% 5. Monadelphous Group Ltd (MND) 2.1% 6. OAMPS Ltd (OMP) 1.8% 7. Healthscope Ltd (HSP) 1.7% 8. OFM Investment Group Ltd (OMP) 1.7% 9. Loftus Capital Ltd
Slide 9: What Drives the Share Price?
WHAT DRIVES THE SHARE PRICE? 1. Performance 2. Market Conditions 3. Yield 4. Regulatory Environment 5. Supply & Demand
Slide 10: Australian Foundation Investment Company (AFIC)
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Slide 11: WAM Capital Ltd (WAM)
WAM CAPITAL LTD (WAM) WAM NTA Prem/Dise 25.00 20.00 15.00 10.00 5.00 0.00 “mera in ue 5.00 44H] 70.00 AHR 45.004-H -20.00 - SESS SP KM MH SH HS FS SS oS SS SX Ke Kok oF oF Kk o_o" x SS e “s FF oe yh
Slide 12: Looking Ahead
LOOKING AHEAD * Market moves in cycles * Last 2 years profitability well above trend * Profitability moving back towards trend (over 100 profit downgrades) * Looking for strong revenue growth & controlled costs
Slide 13: Leverage to Revenue
LEVERAGE TO REVENUE Company A Revenue $100 Costs $80 Profit $20 * On the way up... Revenue up 6% to $106 Profit up to $26, up 30% * On the way down... Revenue down 6% to $94 Profit down to $14, down 30%