WAM Research Ltd. · ASX:WAX
WAM Research — Investor Presentation (November 2013)
28 slides from WAM Research's investor presentation, Nov 20, 2013
Slide 1: WAM Research Limited Investor Presentation
WAM Research Limited For personal use only Investor Presentation Sydney, November 2013
Slide 2: Agenda
Agenda For personal use only • Recent Highlights • Dividend Growth • Outperformance • Capital Management • Investment Portfolio • Market Overview and Outlook • About Wilson Asset Management • Investor Communications • Wilson Asset Management in the Community 2
Slide 3: Recent Highlights
Recent Highlights For personal use only +7.7% 6.0% +38% Growth in full year Fully franked Investment Portfolio dividend to 7.0 cents per dividend yield* performance** share fully franked 18% 1 for 2 51% Increase in Bonus Option Issue Increase in Total Shareholders’ Equity** announced 28 October Shar
Slide 4: Dividend Growth
Dividend Growth For personal use only • FY2013 fully franked dividend of 7.0 cents per share, up 7.7% • Annualised FY2013 fully franked dividend yield 6.0% • Capacity to pay future dividends • Dividend Reinvestment Plan (DRP) operated at 2.5% discount • Board committed to paying increasing stream of
Slide 5: Dividend Growth: dividends since inception
Dividend Growth For personal use only WAM Research dividends since inception Cents per share 8.0 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Special fully franked dividend Ordinary fully franked dividend 5
Slide 6: Outperformance
Outperformance For personal use only Since change in investment strategy Performance at Fin 3 Yrs (July 2010) 31 October 2013 6 Mths YTD 1 Yr % pa % pa WAX Investment 15.0% 17.8% 37.8% 20.1% 21.0% Portfolio* S&P/ASX All Ordinaries 7.2% 15.1% 24.7% 9.3% 11.8% Accumulation Index Outperformance +7.8% +
Slide 7: Outperformance
Outperformance For personal use only Index re-based 600 500 400 300 200 100 - WAX Investment Portfolio before all expenses, fees & taxes S&P/ASX All Ordinaries Accumulation Index Investment performance since revised investment process, July 2010 7
Slide 8: Capital Management
Capital Management For personal use only • 1 for 2 Bonus Option Issue announced 28 October 2013 • Exercise price: $1.20 Exercise by: 17 June 2015 • Shares will trade ex option entitlement on 28 November 2013 • Recently raised $16.5m through DRP Shortfall Placement • Placement NTA accretive • Capital
Slide 9: Investment Portfolio
For personal use only Investment Portfolio
Slide 10: Top Holdings
Top 10 Holdings* For personal use only ASX Code Company CLO Clough Limited GNC Graincorp Limited SGH Slater & Gordon Limited NEA Nearmap Limited AHE Automotive Holdings Group Limited NXT NEXTDC Limited SFW SFG Australia Limited MTU M2 Telecommunications Group Limited CSV CSG Limited RCR RCR Tomlinso
Slide 11: Top Contributors and Detractors
Top Contributors and Detractors* For personal use only Contributors % Detractors % NEA Nearmap Ltd 10.0 NXT NEXTDC Ltd -1.4 IPP iProperty Group Ltd 9.2 UGL UGL Ltd -0.3 RCR RCR Tomlinson Ltd 8.7 TEN Ten Network Holdings Ltd -0.2 *FY2014 11
Slide 12: Investee Company: Nearmap Limited (NEA)
Investee Company Nearmap Limited (NEA) For personal use only Overview • Provider of detailed geospatial map technology to public/private sectors Background • Introduced pay wall in November 2012 (service previously free) • Exploring further opportunities in existing markets and other verticals / geo
Slide 13: Investee Company: CSG Limited (CSV)
Investee Company CSG Limited (CSV) For personal use only Overview • Printing service business with an IT consulting arm. 10 Australian offices and 23 New Zealand offices Background • New CEO appointed in January 2012 and undertook strategic review, sold Technology Solutions to net $190m and changed
Slide 14: Market Overview and Outlook
For personal use only Market Overview and Outlook
Slide 15: Current Market Themes
Current Market Themes For personal use only Employment Strong housing participation rate market falling Tech company Continued US renaissance economic recovery Small caps New government underperforming providing due to weak companies certainty resource stocks 15
Slide 16: Market Outlook
Market Outlook For personal use only P/E multiples M&A activity to Strong IPO activity expanding - continue in 2014 earnings weak Interest rates to remain low by Australian dollar QE tapering in historical to weaken early 2014 standards
Slide 17: Strong Housing Market
Strong Housing Market For personal use only 17
Slide 18: P/E Multiples Expanding
P/E Multiples Expanding For personal use only The S&P/ASX Small Industrials Source: Macquarie Securities Group 18
Slide 19: About Wilson Asset Management
For personal use only About Wilson Asset Management
Slide 20: Experienced Team
Experienced Team For personal use only Geoff Wilson Martin Hickson B Sc GMQ FAICD FFinsia B Bus B Comp Chairman / Senior Equity Analyst / Portfolio Manager Dealer Kate Thorley Matthew Haupt B Com CPA Grad Dip ACG CFA B Com Grad Dip App Fin Chief Executive Officer / Equity Analyst Company Secretary C
Slide 21: Investment Approach
Investment Approach For personal use only Research Research Driven Market Driven Investment Strategy & Market Investment Strategy Driven Identifying Exploiting market undervalued growth mis-pricing companies opportunities 21
Slide 22: Our LICs
Our LICs For personal use only Gross assets* $622.2m $138.4m $37.7m Share price* $1.88 $1.175 $1.24 Pre tax NTA* $1.83 $1.11 $1.12 Growth in dividends 9.1% 7.7% 5.6% Fully Franked 6.4% 6.0% 7.7% Dividend Yield* *As at 31 October 2013 22
Slide 23: Investor Communications
For personal use only Investor Communications
Slide 24: Investor communication
Investor communication For personal use only Weekly emails Half yearly Half yearly Half & full year including market national investor investor financial results update presentations newsletters Monthly NTA Website Media Industry announcement wamfunds.com.au conferences & investment update 24
Slide 25: Wilson Asset Management in the Community
For personal use only Wilson Asset Management in the Community
Slide 26: Community Investment
Community Investment For personal use only All donations are made by Wilson Asset Management (the investment manager) and/or its staff, not the listed entities.26
Slide 27: Disclaimer
For personal use only Disclaimer This presentation has been prepared for use in conjunction with a verbal presentation and should be read in that context. Information for the graphs, charts and quoted indices contained in this presentation has been sourced from IRESS Market Technology, Veritas Secur
Slide 28: WAM Research Limited
WAM Research Limited For personal use only Investor Presentation Sydney, November 2013