Odyssean Investment Trust PLC · LSE:OIT
Odyssean Investment Trust — Q4 2022 Earnings Presentation
35 slides from Odyssean Investment Trust's earnings presentation, December 2025
Slide 1: Odyssean Investment Trust PLC Q4 2022 Update
Odyssean Investment Trust PLC Q4 2022 Update
Slide 2: Important Information
Important Information • The information contained in this presentation is for the use of Professional and Institutional Investors only. • Past performance is not a reliable indicator of future performance and Investors may not get back the value of their original investment • The value of Odyssean I
Slide 3: Executive Summary – Q4 2022
Executive Summary – Q4 2022 A strong absolute and relative end to 2022 • NAV per share rose 15.0%1,2 in the period. NSCI +AIM ex IC index (“Comparator”) rose 6.9% 2,3 • NAV per share growth of 5.5% in 2022. Net cash balance averaged 5%. • Comparator Index fell 21.9% over the same period • We estimat
Slide 4: Performance update
Performance update NAV per share rose 15% in Q4, leaving NAV per share growth of 5.5% in 2022 Performance % Annualised Inception Since Q4-22 CY22 CY21 CY20 CY19 since to Dec-18 inception inception NAV Total Return Per Share1 +15.0% +5.5% +25.0% +13.1% +22.0% -3.7% +75.2% +12.8% Share price return3 +
Slide 5: 2022 Performance commentary
2022 Performance commentary Multiple drivers of OIT’s differentiated performance – not just M&A • Our focus on absolute value avoided “crowded”/momentum trades, especially highly Valuation & rated growth companies capital allocation • Focus on absolute return drove re-allocation of capital during a
Slide 6: Portfolio takeover activity validates valuation discipline
Portfolio takeover activity validates valuation discipline Average completed day 1 bid premium of c.49%. Typically overseas trade buyers Announced/completed take over offer premia 2019 2020 2021 2022 70% 65% 60%* 59% 60% Average premia 52%* all bids 50% 48% 50% 49% 39% Average trade acquiror 40% 34%
Slide 7: Case Study: Chemring
Case Study: Chemring Over 4.5 years our investment in Chemring delivered >19% IRR (1.44x CoC) in flat markets • One of the first investments made by OIT post IPO Chemring TSR vs Comparator • Investment thesis based on: Investment IRR 19.4% − Expected rebound in countermeasures demand 430 with post d
Slide 8: 2023 Outlook
2023 Outlook A more benign/supportive market backdrop for UK equities than 2022? Market • Albeit some ratings recovery since nadir of early October 2022 Undemanding • Earnings downgrades expected valuations • UK still cheap vs other global equity markets Markets are • Markets anticipating mild reces
Slide 9: Performance drivers in Q4 2022
Performance drivers in Q4 2022 Key stock contributors Largest positive contributors Largest negative contributors • Q3 trading ‘in-line’ with expectations with strong Coatings and Personal Care • Brief AGM statement held full year expectations but performance noted accelerating momentum in the Assur
Slide 10: Portfolio
Portfolio High conviction portfolio Top portfolio holdings¹ • Top 10 holdings account for 75% of NAV Elementis Ascential • Curtis Banks and Devro (14% of NAV at year end) 3.1% subject to Recommended bids Xaar 13.3% • Completed exit of position in Chemring through Curtis Banks sales into the market 2
Slide 11: Portfolio
Portfolio Focused on our core sectors and core market cap range Holding by sector 1 Holding by market cap 1 3.1% 5.3% 3.1% 5.9% 6.9% Industrials Sub £100m 8.6% TMT £100m-£500m 33.7% Healthcare £500m-£1bn 11.1% Business Services Over £1bn 42.8% Financial Services Net cash 11.3% Other Equity 41.2% Cas
Slide 12: Portfolio
Portfolio Portfolio has higher proportion of international earnings than the FTSE Small Cap Revenue exposure of portfolio¹,² Revenue exposure of FTSE Small Cap Index3 (NAV weighted exc. cash) (% sales) 15.3% 24.6% UK UK 32.0% US 11.5% US EU EU 10.5% 62.7% 19.4% RoW RoW 23.9% • Portfolio revenue gene
Slide 13: Top 10 holdings summary
Top 10 holdings summary Niche market leaders, often with international operations and self-help Holding Market position Self-help/engagement opportunities Global market leader with high quality industrial talc and high quality Plant footprint optimisation; more higher value add products; invest hect
Slide 14: Key portfolio themes by sub-sector
Key portfolio themes by sub-sector Account for c.75% of NAV • Market leading positions – significant strategic value Industrial products & • Revenue enhancements (new products; digital) and efficiencies driving self help services • Achieving inflation+ price rises +2 others (22% NAV) • We believe se
Slide 15: Special situations across the portfolio
Special situations across the portfolio Lots of ways for companies to create/unlock value Material cost Margin Undervalued/ SOTP¹ Geographic Market share Holding synergies for a Other improvement hidden growth discount arbitrage recovery trade buyer Mineral asset ✓ ✓ ✓ ✓ backing Sale of non ✓ ✓✓ ✓✓
Slide 16: Supporting Portfolio & Market Data
Supporting Portfolio & Market Data
Slide 17: Our investment strategy has delivered strong long term returns
Our investment strategy has delivered strong long term returns Attractive absolute and relative performance, without any gearing Strategy NAV per share performance since inception1,2,3 30 June 2009 – 31 December 2022 CAGR CAGR 900 Over 13.5 years Whilst invested 17.2% 19.0% 800 700 Strategy out of 6
Slide 18: UK equities have experienced material de-ratings since May-21
UK equities have experienced material de-ratings since May-21 Absolute ratings are undemanding relative to recent history Forward NTM p/e multiple by FTSE Index1 FTSE AIM premium to FTSE Small Cap Index1 25x 100% OIT IPO OIT IPO 80% 20x 60% 15x 40% 10x 20% 0% 5x -20% 0x -40% May-07 May-09 May-11 May
Slide 19: Quest analysis suggests UK equities are cheap in absolute terms
Quest® analysis suggests UK equities are cheap in absolute terms Within UK equities, most potential upside from UK Small valuations Aggregate Market Value (Discount)/Premium to Default Quest ® fair value 40% 37% 30% 25% 21% 20% 10% 5% 0% -10% -20% -30% -23% -23% -24% -26% -40% UK Large UK Mid 1 UK S
Slide 20: Global equities about fair value. US equities below LT average
Global equities about “fair value”. US equities below LT average UK equities trade at the largest discount to Quest® fair value of major markets Aggregate Market Value (Discount)/Premium to Default Quest ® fair value 80% 60% 49% 41% 40% 27% 26% 17% 20% 11% 5% 0% -1% -20% -6% -23% -40% World USA Euro
Slide 21: UK Small at a discount to Quest FV for first year since 2002
UK Small at a discount to Quest® FV for first year since 2002 UK Small trading at a wider discount than UK Large for the first year since 2002/3 Aggregate Market Value Premium / (discount) to Default Quest® fair value 80% 67% 60% 55% 50% 46% 46% 46% 42% 40% 33% 36% 31% 30% 27% 27% 20% 18% 18% 20% 10
Slide 22: Portfolio sector exposure overtime
Portfolio sector exposure overtime Industry exposure shifts driven by where we believe there are opportunities Sectoral split over time 100% 4% 4% 2% 4% 3% 10% 9% 10% 10% 9% 2% 11% 6% 14% 3% 6% 12% 12% 8% 9% 21% 0% 0% 4% 2% 2% 2% 9% 9% 0% 4% 5% 4% 4% 10% 2% 4% 4% 5% 5% 3% 7% 9% 4% 3% 80% 10% 4% 9% 0
Slide 23: ESG - Portfolio company voting record over Q4 2022
ESG - Portfolio company voting record over Q4 2022 Continued to follow our consistent guidelines and raise our concerns where appropriate Comment Number of meetings 2 Number of resolutions 38 Number voted 38 Voted with management 36 Voted against management 2 Abstained 0 • Relatively quiet period fo
Slide 24: ESG performance and disclosure
ESG performance and disclosure Improving trend of performance and disclosure ESG performance and disclosure (out of 100) of portfolio companies 60 50 40 30 20 10 0 A B C D E F G H I J K L M N O P Q R Company First year of analysis Latest year Source: CEN ESG Advisory; Odyssean Capital. As at 31st De
Slide 25: Investment strategy recap – neither growth nor value
Investment strategy recap – neither growth nor value Based on 3 pillars: Valuation, Quality and Engagement, with Sector focus Target Zone Valuation • Invest at a significant discount to owner’s valuation • Look for businesses with multiple drivers of equity value growth (sales; margin; rating; free
Slide 26: Sectors we focus on
Sectors we focus on We focus on four key sectors we know well • We believe the best investment decisions are made from a Odyssean: view of main sectors base of knowledge and experience High Low Sector B2B focus ROCE/cash • We focus on sectors where the team has expertise and where cyclicality expert
Slide 27: Corporate engagement
Corporate engagement Goal to augment returns from stock selection • We use engagement to create, defend or recover value • Operational efficiency • Fixed assets and to deliver differentiated returns • R&D allocation • • IP maximisation Capex allocation Asset • The investment team has more than 19 ye
Slide 28: Portfolio construction
Portfolio construction Our strategy is more similar to Private Equity than other Public Equity funds Typical Long Only Odyssean Strategy Typical Private Equity Number of positions 50-100 Up to 25 10-15 Typical position size 1% 3-8% at cost, max 20% 10% Typical holding period Variable 3-5 years 3-5 y
Slide 29: Odyssean Investment Trust - key company facts
Odyssean Investment Trust - key company facts NAV £190m1 Shares in issue 110,370,0531 Domicile UK Full listing, London Stock Exchange Board Fully independent. Owns c.1% of issued share capital. Will use all fees, post tax, to buy shares Internally managed, small registered UK AIFM. Portfolio Managem
Slide 30: OIT shareholder base
OIT shareholder base As at 31st December 20221 Shareholder base by investor type Shareholders >3% Harwood Capital 2.3% 0.9% Cazenove Capital Wealth Manager RBC Brewin 9.2% 15.5% Connected Parties Ian Armitage 31.4% 12.0% Investec Wealth Retail Investors 13.1% Raymond James 53.2% Institutions JM Finn
Slide 31: Disclaimer
Disclaimer The sole purpose of this document is to provide information on Odyssean Investment Trust Plc (“OIT”) and its underlying investment strategy. The information contained in this document is strictly confidential and is intended for the named recipient only. The unauthorised use, disclosure,
Slide 32: Disclaimer
Disclaimer No representation or warranty, either expressed or implied, is or will be made or given and no responsibility or liability is or will be accepted by Odyssean Capital LLP or by any of their respective directors, officers, employees, members, agents or advisers in relation to the accuracy o
Slide 33: Quest Disclaimer
Quest Disclaimer Appendix: Important Disclosures Quest® is at this stage registered in the UK and in the USA, and common law trademark rights are asserted in other jurisdictions. For the purposes of UK regulation Canaccord Genuity Limited (“CGL”) produces non-independent research which is a marketin
Slide 34: Quest Disclaimer
Quest Disclaimer objectives, and investors should make their own independent decisions regarding any securities or strategies discussed herein. Please contact your salesperson for more information regarding Canaccord Genuity’s research. General Disclaimers See “Required Company-Specific Disclosures”
Slide 35: Contact details
Contact details Portfolio Manager Distribution Partner Odyssean Capital LLP Frostrow Capital LLP 6 Stratton Street 25 Southampton Buildings London London W1J 8LD WC2A 1AL www.odysseancapital.com www.frostrow.com Stuart Widdowson Tel: 07710 031620 Tel: 020 3008 4910 Email: info@odysseancapital.com Em
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