H&g High Conviction Ltd. · ASX:HCF
H&g High Conviction — Shareholder Meeting (October 2024)
19 slides from H&g High Conviction's shareholder meeting presentation, Oct 14, 2024
Slide 1: Annual General Meeting Presentation
For personal use only ASX: HCF Annual General Meeting Presentation 14 October 2024 H&G Investment Management Ltd (ACN: 125 580 305) on behalf of H&G High Conviction Limited (ACN: 660 009 165)
Slide 2: Important Information
IMPORTANT INFORMATION Status of this document This document contains general information regarding H&G High Conviction Limited (HCF) as at the date of this presentation. The information contained in this document (including this notice) (Information) is not comprehensive and subject to change. The I
Slide 3: Point of difference & alignment
Point of difference & alignment For personal use only PE APPROACH HIGH CONVICTION ACTIVE ENGAGEMENT Access to the Concentrated portfolio Close relationship with knowledge, experience of undervalued management & board and networks of H&G companies with limited including strategic broker coverage coll
Slide 4: 2024 - Year in Review
2024 - Year in Review HCF post tax NTA returned 5.2% for FY24. For personal use only • • Post-tax NTA per share of $1.042 (before dividend) as at 30 June 2024, compared to $1.030 as at 30 June 2023. • Paid $0.04 in Fully franked Dividends. • HCF added new high conviction holdings to the portfolio ov
Slide 5: Performance since IPO – October 2022
Performance since IPO – October 2022 For personal use only *If $10,000 was invested at IPO in Oct 2022, and if dividends were re-invested at post tax NTA over the period, the value of the investment at 30 September 2024 would be worth $11,669. Past performance is no guarantee of future returns. 4
Slide 6: H&G Investment Management Team
H&G Investment Management Team For personal use only Nick Atkinson Sandy Beard Stefan Piruze Nishantha Seneviratne Executive Chair – H&G Investment Director HCF & Manager Company Secretary Investment H&G Investment HCF & Chief Management Management, Financial Officer of Portfolio the Investment Mana
Slide 7: What we look for?
What we look for? For personal use only Depressed share prices with the potential for double-digit returns Limited downside due to a high margin of safety and robust balance sheets Companies run by an aligned board and management Catalysts for bridging gap between inherent and market value 6
Slide 8: Number of companies appearing in HCF's sweet spot
Number of companies appearing in HCF’s sweet spot Companies with market capitalisation <$200m & revenue > $5m p.a. For personal use only 7
Slide 9: Material investments during the year
Material investments during the year Deploying into High Conviction Investments For personal use only %* of TSR to New Positions Industry HCF at 30/9/24 cost Coventry Group (CYG) Industrial Fasteners & Fluids 14% -8% Veem Ltd (VEE) Marine Stabilisation & Propulsion 7.6% +47% SciDev (SDV) Chemicals &
Slide 10: VEEM Ltd (VEE)
VEEM Ltd (VEE) Industry Market Cap (8/10/24) Marine Technology $193 million For personal use only First acquired shares in VEE in November 2023 - unloved due to historical corporate issues VEE is a founder led, global leader in design & manufacture of precision marine and stabilization systems
Slide 11: Coventry Group Ltd (CYG)
Coventry Group Ltd (CYG) Industry Market Cap (8/10/24) Industrial – Capital Goods $149 million For personal use only First acquired shares in CYG in April 2024 CYG operates 2 divisions in ANZ: 1. Trade Distribution: Industrial fasteners 2. Fluid Systems: Coventry acquires Steelmasters NZ lubrica
Slide 12: SciDev Ltd (SDV)
Industry Market Cap (8/10/24) SciDev Ltd (SDV) Chemicals - Water Treatment/Oil & Gas $113 million For personal use only First acquired shares in SDV in May 2024 SDV is a bespoke chemistry solution provider to blue-chip clients & government June Quarterly highlights potential for US DoD PFAS work
Slide 13: Why invest with HCF?
Why invest with HCF? For personal use only Investing cash in a buyer’s market following microcap sell-off Absolute return, index unaware long-term investors that have ability to weather short-term volatility Strong alignment between HCF manager and shareholders with ~19% direct ownership by H&
Slide 14: Performance since IPO
Performance since IPO For personal use only Post tax performance as at 30 September 2024 1 month 3 months 6 months 12 months Since IPO HCF total portfolio return* 1.3% 1.4% 0.5% 8.8% 8.4% ASX Small Ordinaries 5.1% 6.5% 1.8% 18.8% 9.6% Accumulation Index Over / (Under) Performance -3.7% -5.1% -1.3% -
Slide 15: Capital Management
Capital Management Announced 10% Buy Back – Inactive during blackout For personal use only HCF Share Price vs Pre-Tax NTA $1.350 2.4 $1.250 2.2 $1.150 2 1.8 $1.050 1.6 $0.950 1.4 $0.850 1.2 $0.750 1 Gross Dividends (Cents) Pre TAX NTA Share Price 14
Slide 16: APPENDICES
For personal use only APPENDICES 1. Portfolio characteristics 2. Shareholders of the company 3. Structure and fees
Slide 17: Portfolio characteristics
Portfolio characteristics As at 30 June 2024 For personal use only Exposures as % of Equities at 30 June 2024 Top 5 Holdings (Alphabetical) Clearview Wealth Ltd (CVW) Coventry Group Ltd (CYG.AX) Eildon Capital Ltd (EDC.AX) Universal Biosensors Ltd (UBI.AX) VEEM Ltd (VEE.AX) 16
Slide 18: Shareholders of the company
Shareholders of the company Substantial Shareholders & Type For personal use only Holders Holder Type % of HCF as at 8th October 2024 % of HCF Institution 43.0% Hancock & Gore Limited 19.9% Retail 57.0% Perennial Investment 14.9% Management Total 100.0% Dr Ida Constable 7.8% Fayrstede Pty Ltd (Coope
Slide 19: Structure and fees
Structure and fees For personal use only ASX-listed $150m Hancock & Gore market cap diversified (“H&G”; ASX: HNG) investment group 100%-owned Investment management agreement H&G Investment ASX-Listed Private Equity H&G High Conviction Investments Investments Management Ltd Limited (ASX: HCF) (HGIM)
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