AVI Japan Opportunity Trust Plc · LSE:AJOT
AVI Japan Opportunity Trust — Shareholder Meeting (May 2025)
16 slides from AVI Japan Opportunity Trust's shareholder meeting presentation, May 2025
Slide 1: 2025 AGM Presentation
2025 AGM Presentation Joe Bauernfreund & Nicola Takada Wood
Slide 2: AJOT Overview
AJOT Overview AJOT NAV Total Return (GBP) 4 AJOT MSCI Japan Small Cap 21% Market Cap: £222m 16% 14% AJOT Total Assets: £263m 12% 8% 9% Benchmark: MSCI Japan Small Cap 7% 6% 3% 2% Annualised Turnover: 40%1 % Active Share: >98% -1% -1% -1% -4% Target Holdings: 15-25 2019 2020 2021 2022 2023 2024 2025
Slide 3: Review of 2024
Review of 2024 2024 NAV Total Return (GBP)1 AJOT 20.9% NAVF 15.2% MSCI Japan Small Cap 6.2% - DESPITE continuing macro headwinds, the portfolio posted Baillie Gifford Shin Nippon -9.6% +32.4% JPY return - INCREASED engagement success momentum amongst 2024 Top Contributors & Detractors (GBP) portfoli
Slide 4: 2025 Performance Year-to-Date
2025 Performance Year-to-Date 2025 YTD NAV Total Return (GBP)1 2025 YTD Top Contributors & Detractors (GBP)1 AJOT 8.9% TSI Holdings 1.9% NAVF 5.3% Tecnos Japan 1.6% MSCI Japan Small Cap 2.2% SharingTechnology 1.6% Baillie Gifford Shin Nippon -3.4% Raito Kogyo 1.3% Kurabo Industries 1.2% Shinetsu Pol
Slide 5: Yen Depreciation Has Been a Headwind
Yen Depreciation Has Been a Headwind +4% Recovery in 2025 as BoJ Raised Rates Yen -24% Weakening Since AJOT Inception Impact on Net Returns Since Inception1 150 142% AJOT 140 MSCI Japan Small Cap 130 85% 120 65% 110 AJOT -24% Since Inception 26% 100 Inception +4% 2025 YTD 90 2014 2016 2018 2020 2022
Slide 6: Tokyo Stock Exchange Embracing Activists
Tokyo Stock Exchange Embracing Activists Recent reforms made by Tokyo Stock Exchange: Companies to be more “conscious of share price and cost of capital” ▪ TSE started publishing a list of companies who disclose measures to improve their share price (Jan 2024) ▪ Published a review of the list (Sep 2
Slide 7: Regulators & Activists Pile Pressure for Reform
Regulators & Activists Pile Pressure for Reform TSE & FSA increase pressure on companies amid rising corporate activity • TSE begins publishing monthly list of • KKR launched bid for Fujisoft, which • TSE announced new • TSE mandates companies with P/B <1.0x Bain countered with 7% higher offer prote
Slide 8: Engagement Outcomes 2025 YTD
Engagement Outcomes 2025 YTD Many positive disclosures announced by portfolio companies, including 1 TOB announcement Portfolio Company Announcements Maruzen Showa ▪ New buy-back ▪ Announcement of ▪ New buy-back ▪ New buy-back ▪ Shutdown of its Anjo program (3.61% to its privatisation through progra
Slide 9: Exit via Corporate Activity: Last 12 months
Exit via Corporate Activity: Last 12 months ▪ Below are examples of how AJOT's concentrated portfolio of asset-backed Japanese small-caps can benefit from AVI's active engagement strategy, against a backdrop of rapidly increasing corporate activity in Japan ▪ While not a core part of our investment
Slide 10: High Conviction Portfolio
High Conviction Portfolio AJOT Portfolio Top 10 Holdings Date of ROI % AVI % NFV % Name Business % NAV EV / EBIT entry1 (JPY) Ownership2 Mkt Cap Kurabo Industries Textiles & Other Jan 24' 11.5 +40.4 5.3 3.0 72% Beenos* E-Commerce Jan 24' 10.2 +126.2 9.5 10.1 44% TSI Holdings Apparel Jul 22’ 9.1 +125
Slide 11: Strong Pipeline
Strong Pipeline Market NFV % EV / EBIT Name Entered Business Cap ($m) Market Cap LTM New Restaurant Job Synchro Food Mar 25' 120 30% 10.8x Additions Listings in 2025 Wakamoto Feb 25' Pharmaceuticals 82 74% - Pharmaceutical Maruzen Showa Unyu Jan 25' Logistics 834 25% 6.3x Mitsubishi Logistics Jan 25
Slide 12: AVI Japan Team
AVI Japan Team Joe Bauernfreund Nicola Takada Wood CEO & CIO Managing Director Responsible for final investment decisions Generalist 29 years’ industry experience 20 years’ industry experience Portfolio Manager of AJOT since inception Redwheel, Goldman Sachs, Mizuho Securities London Business School
Slide 13: Key Takeaways
Key Takeaways Track Record of A Japan Equity Ripe Environment for Outperformance Specialist Engagement — Since AJOT launch in 2018, AVI — Constructive engagement with — Corporate Governance reform has has delivered annualised consulting expertise reached critical mass. The returns1 of 16.3% vs 8.2%
Slide 14: Appendix
AVI Japan Opport ust Appendix
Slide 15: Japan Team Bios
Japan Team Bios Name/Position Experience & Expertise Joe Bauernfreund joined AVI in 2002 and worked closely with AVI’s founder, before becoming CEO and CIO in October 2015. Joe is the Joe Bauernfreund named portfolio manager for the AVI Global Trust plc, which he has solely managed since 2015, and f
Slide 16: Important Information
Important Information This document is an advertisement and not a prospectus and investors should not subscribe for or purchase any shares referred to in this document except on the basis of information in the prospectus to be published by AVI Japan Opportunity Trust plc (the “Company”) in due cours
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