Cadence Capital Limited · ASX:CDM

Cadence Capital — Investor Presentation (February 2013)

15 slides from Cadence Capital's investor presentation, Feb 20, 2013

1. Slide 1: Cadence Capital Limited Placement Presentation

   Cadence Capital Limited For personal use only Placement Presentation February 2013

2. Slide 2: Who we are

   Who we are For personal use only  Privately owned, long biased Australian Equity Manager  Invests in undervalued (long) and overvalued (short) stocks, and  A disciplined approach to entering and exiting positions  Focused on both Fundamental and Technical research to generate returns  $110 Mill

3. Slide 3: Placement

   Placement For personal use only  Placement Price $ 1.43  Pre-tax NTA $ 1.426 (15th February 2013)  Post-tax NTA $ 1.425 (15th February 2013)  Last Share Price $ 1.525 (15th February 2013)  Placement Shares entitled to 6.0 cents Fully Franked Half Year dividend representing a 4.2% fully franked

4. Slide 4: Placement Timetable

   Placement Timetable For personal use only Page 3

5. Slide 5: The team

   The team For personal use only Karl Siegling CIO & Portfolio Manager 14 years experience in research and funds management, listed & unlisted equities Wayne Davies Chris Garrard COO Senior Analyst & Portfolio 17 years experience as a COO Manager and Chartered Accountant 8 years analyst and investment

6. Slide 6: CDM Performance

   CDM Performance For personal use only Performance* to 31st January 2013 CDM** All Ords Outperformance 1 Month 2.41% 5.08% -2.67% 1 Year 18.30% 18.68% -0.38% 2 Years 54.46% 10.53% +43.93% 3 Years 115.09% 21.36% +93.73% 4 Years 214.00% 67.78% +146.22% 5 Years 126.87% 7.13% +119.74% Since Inception (88

7. Slide 7: CDM Performance Ranking – years

   CDM Performance Ranking – 3 years For personal use only CDM All Ords Source: Baillieu Holst Stockbroking Ltd - Listed Investment Companies - Sector Report – 31st January 2012 Page 6

8. Slide 8: CDM Performance Ranking – years

   CDM Performance Ranking – 5 years For personal use only CDM All Ords Source: Baillieu Holst Stockbroking Ltd - Listed Investment Companies - Sector Report – 31 January 2013 Page 7

9. Slide 9: Dividends and franking

   Dividends and franking For personal use only Calendar Year Interim Final Special Total Gross (Inc. Franking) 2007 2.0c 2.0c 2.0c 6.0c 8.6c 2008 2.5c 2.2*c - 4.7c 5.8c 2009 - 2.0c - 2.0c 2.9c 2010 2.0c 2.0c - 4.0c 5.7c 2011 3.0c 3.0c 3.0c 9.0c 12.9c 2012 4.0c 4.0c 4.5c 12.5c 17.8c 2013 5.0c 1.0c 6.0c

10. Slide 10: Investment Philosophy and Beliefs

    Investment Philosophy and Beliefs For personal use only  A combination of Fundamental and Technical Research has a greater probability of producing higher returns than either Fundamental or Technical analysis alone  On a daily basis we visit and research companies to determine whether they are che

11. Slide 11: Fundamental Research

    Fundamental Research For personal use only Stock Profiles 2,500 ASX Listed Companies Around 700 made a Profit Last Year Average fundamentals  300 - 400 company visits per annum Bad (35 stocks) (630 stocks) Good (35 stocks)  Detailed industry research  A company’s relative bargaining power Short P

12. Slide 12: Entry and exit of long positions

    Entry and exit of long positions For personal use only Entering Longs Exiting Longs Soft and Hard Stops 5% 4% 3% 2% 1%  Wait until trend has turns and then accumulate  Identify a change in trend - 1, 3 and 12 month chart positions analysis  Do not average down  Individual stock positions are mon

13. Slide 13: Market Participation

    Market Participation Participate when opportunities present & stop when they don’t For personal use only  IPOs  Block Trades  Placements  Price action/sell down  SPPs  Takeover arbitrage  Rights Issues  Dual listed arbitrage  Underwriting  Convertible note arbitrage Page 12

14. Slide 14: Conclusion

    Conclusion For personal use only  Top performing and highly ranked Listed Investment Company  One of the highest yielding of all the Listed Investment Companies  Relatively ‘locked in’ dividend stream for the year ahead and medium term  A very high fully franked yield especially attractive to SM

15. Slide 15: Disclaimer

    Disclaimer For personal use only Information provided, including any expression of opinion, has been obtained from or is based upon sources believed to be reliable but has not in any way been independently verified and no guarantee, representation or warranty, express or implied, is made as to its a

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