NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — Q2 FY2020 Earnings Presentation
27 slides from NAOS Ex-50 Opportunities's earnings presentation, Feb 5, 2020
Slide 1: Q2 FY20 Investor Conference Call
NAOS Asset Management Limited For personal use only Q2 FY20 Investor Conference Call Wednesday 5th February 2020 10.30am AEDT Dial-in Number: 1300 264 804 International Dial-in Number: +61 2 9696 0874 Guest Access Code: 10842873 # CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Management
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 For personal use only only and must not be construed as investment advice. It does not constitute an offer to purchase any security or fina
Slide 3: Our Mission
NAOS Asset Management Our Mission For personal use only To provide investors with 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 shareho
Slide 4: Investment beliefs provide a competitive advantage
NAOS investment beliefs provide a competitive advantage For personal use only Value with Long Quality over Invest for the Performance v Term Growth Quantity Long Term Liquidity Focus 5+ years The closed end LIC structure removes application and redemption risk. Ignore the Pure Exposure Environmental
Slide 5: Investment portfolio financial year returns
NAOS investment portfolio financial year returns * For personal use only 35% 25% 20.33% 19.16% 17.55% 15% 5% -5% -15% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 YTD NAOS Emerging Opportunities Company Limited (ASX: NCC) NAOS Ex-50 Opportunities Company Limited (ASX: NAC) NAOS Small Cap Opportunities Co
Slide 6: NAOS strong long term risk-adjusted returns
* NAOS strong long term (5 years+) risk-adjusted returns For personal use only NCC Investment Portfolio Risk and Performance Metrics NAC Investment Portfolio Risk and Performance Metrics 13.94% 14% 14% 12.81% 12% 12% 10% 10% 8.43% 8% 7.15% 8% 6.32% 5.65% 5.86% 6% 5.40% 6% 4% 4% 2% 2% 0% 0% Performan
Slide 7: Market commentary
Market commentary o The S&P/ASX-200 Accumulation Index (XJOAI) returned +23.4% for CY19. For personal use only o However earnings per share growth (EPS) was just +1.0% o The P/E of the XJOAI excluding resources has increased from a low of 13.80 times in late CY18 to almost 22 times at the end of CY1
Slide 8: Market commentary
Market commentary o Credit contraction in housing loans has eased with loan commitments increasing from $15.5 billion For personal use only to $17.5 billion, led purely by owner-occupier loans. o Resultant sharp rebound in house prices with capital city prices almost completely erasing the 9% fall i
Slide 9: Market outlook
Market outlook o Reporting season commences for 1H FY20 company results in early February. For personal use only o Significantly elevated valuation levels place increased pressure on companies to deliver reasonable results to avoid being punished considerably, as seen with Cimic Group Limtied (ASX:
Slide 10: NCC Key Portfolio Events Q2 FY20
NCC Key Portfolio Events Q2 FY20 Company Industry Q2 Update For personal use only o Received an indicative, non-binding proposal from Scottish Pacific at $0.60 per share, competing with CML Group the ongoing scheme of arrangement with Consolidated Operations Group (ASX: COG). Financial Limited o Sco
Slide 11: NCC portfolio update as at December 2019
NCC portfolio update as at 31 December 2019 For personal use only $1.12 $1.035 4.30% +0.37% $90.4m 11 7.00% 25.0 Pre Tax NTA Share Price Cash FY20 Q2 Average Holdings Dividend Cents per Weighting Performance Market Cap. Yield Share of Portfolio Profits Reserve Fully Franked Dividend (cents per share
Slide 12: NSC Key Portfolio Events Q2 FY20
NSC Key Portfolio Events Q2 FY20 Company Industry Q2 Update For personal use only o Completed a $50 million institutional placement at $5.00 per share to pay down all debt and fund MNF Group IT Software and international growth initiatives. (ASX: MNF) Services o Tailwinds for MNF remain significant,
Slide 13: NSC portfolio update as at December 2019
NSC portfolio update as at 31 December 2019 For personal use only $0.85 $0.755 4.50% -2.20% $192.6m 9 5.30% 16.5 Pre Tax NTA Share Price Cash FY20 Q2 Average Holdings Dividend Cents per Weighting Performance Market Cap. Yield Share of Portfolio Profits Reserve Fully Franked Dividend (cents per share
Slide 14: NAC Key Portfolio Events Q2 FY20
NAC Key Portfolio Events Q2 FY20 Company Industry Q2 Update For personal use only o Operating Profit is expected to increase by close to 24%, and importantly recurring revenue Objective increase to 75% of 1H FY20 total revenue. Corporation IT Software and o 100% of the research and development spend
Slide 15: NAC portfolio update as at December 2019
NAC portfolio update as at 31 December 2019 For personal use only $1.18 $0.965 5.00% 3.88% $397.2m 9 5.44% 16.3 Pre Tax NTA Share Price Cash FY20 Q2 Average Long Dividend Cents per Weighting Performance Market Cap. Holdings Yield Share of Portfolio 1 Profits Reserve Short Holding Fully Franked Divid
Slide 16: Capital management initiatives
Capital management initiatives For personal use only Performance Maintain a focus on long term performance without deviating from the NAOS investment philosophy. Dividends Continue to focus on maintaining a growing stream of fully franked dividends whilst maintaining an adequate reserve balance. Ali
Slide 17: 2020 investor roadshow dates
NAOS 2020 investor roadshow dates For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Management Limited 17
Slide 18: Appendix
Appendix For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Management Limited 18
Slide 19: Investment universe
NAOS investment universe For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Management Limited 19
Slide 20: Investment process
NAOS investment process For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Management Limited 20
Slide 21: ESG framework
NAOS ESG framework For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Management Limited 21
Slide 22: Management alignment
NAOS management alignment For personal use only 9,000,000 Inception Directors Shareholding 7,925,323 (Ordinary Shares) 8,000,000 31 December 2019 Directors 7,000,000 Shareholding (Ordinary Shares) 6,000,000 5,000,000 4,220,147 4,000,000 3,000,000 2,026,836 2,078,554 2,000,000 837,958 1,007,288 1,000
Slide 23: Shareholder Numbers as at 31st December 2019
NAOS Shareholder Numbers as at 31st December 2019 For personal use only 8,000 6,000 4,000 2,000 0 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 YTD Total Shareholders (June 30) CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Management Limited 23
Slide 24: Directors and Team
NAOS Directors and Team For personal use only 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 Indepe
Slide 25: Investor awareness and communication
Investor awareness and communication For personal use only CEO Insights, NAOS Shareholder Monthly Investment The news and media Twice yearly National Newsletter, Conference Calls, Report & NTA email section of our website Roadshow subscribe via our subscribe via our updates, subscribe via is updated
Slide 26: Giving
NAOS giving For personal use only NAOS Asset Management, the management company, is proud to be giving back ~ 1% of recurring income to the following charities ‘Golden Shouldered Parrot’ threatened ‘Reef Aid’ campaign, in partnership RFDS, dedicated to providing species project, in partnership with
Slide 27: Q&A
Q&A For personal use only Thank you for your continued support CONVICTION. LONG TERM. ALIGNED | Copyright 2020 NAOS Asset Management Limited 27
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