WAM Capital Ltd. · ASX:WAM
WAM Capital — Investor Presentation (November 2013)
29 slides from WAM Capital's investor presentation, Nov 20, 2013
Slide 1: WAM Capital Limited Investor Presentation
WAM Capital Limited For personal use only Investor Presentation Sydney, November 2013
Slide 2: Agenda
Agenda For personal use only • Recent Highlights • Dividend Growth • Outperformance • Capital Management • Investment Portfolio • Market Overview and Outlook • About Wilson Asset Management • Investor Communications • Wilson Asset Management in the Community 2
Slide 3: Recent Highlights
Recent Highlights For personal use only +9.1% 6.4% +31% Growth in full year Fully franked Investment Portfolio dividend to 12.0 cents dividend yield* performance** per share fully franked 169% 50% 137% Increase in Increase in Total Increase in shareholders Shareholders’ Equity** Shareholder Return**
Slide 4: Dividend Growth
Dividend Growth For personal use only • FY2013 fully franked dividend of 12.0 cents per share, up 9.1% • Annualised FY2013 fully franked dividend yield 6.4% • Capacity to pay future dividends • Dividend Reinvestment Plan (DRP) operated at 2.5% discount • Board committed to paying increasing stream o
Slide 5: Dividend Growth: WAM Capital dividends since inception
Dividend Growth For personal use only WAM Capital dividends since inception Cents per share 18.0 16.0 14.0 12.0 10.0 8.0 6.0 4.0 2.0 0.0 Ordinary fully franked dividend Special fully franked dividend Equal access share buy-back 5
Slide 6: Outperformance
Outperformance For personal use only Since Performance at Fin 3 Yrs 5 Yrs 10 Yrs Inception 31 October 2013 6 Mths YTD 1 Yr % pa % pa % pa % pa WAM Investment 12.7% 16.4% 31.2% 16.8% 20.7% 14.3% 18.7% Portfolio* S&P/ASX All Ordinaries 7.2% 15.1% 24.7% 9.3% 11.1% 9.7% 8.7% Accumulation Index Outperfor
Slide 7: Outperformance
Outperformance For personal use only Index re-based 1,200 1,000 WAM Portfolio up 80.3% above pre- 800 GFC peak 600 400 Index up 2.5% from pre-GFC peak 200 - WAM Investment Portfolio before all expenses, fees & taxes S&P/ASX All Ordinaries Accumulation Index 7
Slide 8: Capital Management
Capital Management For personal use only • Raised $24.7m through DRP Shortfall Placement • Oversubscribed by 67% • Placement NTA accretive • Capitalising on strong market demand • Shareholder benefits of increased capital base • reduced fixed administration costs (as % of assets) • increased liquidi
Slide 9: Investment Portfolio
For personal use only Investment Portfolio
Slide 10: Top Research Driven Holdings
Top 10 Research Driven Holdings* For personal use only ASX Code Company SGH Slater & Gordon Limited NEA Nearmap Limited AHE Automotive Holdings Group Limited NXT NEXTDC Limited MTU M2 Telecommunications Group Limited SFW SFG Australia Limited RCR RCR Tomlinson Limited CSV CSG Limited GWA GWA Group L
Slide 11: Top Market Driven Holdings
Top 10 Market Driven Holdings* For personal use only ASX Code Company CLO Clough Limited GNC Graincorp Limited FKP FKP Property Group CYA Century Australia Investments Limited HIL Hills Holdings Limited WIC Westoz Investment Company Limited IPE ING Private Equity Access Limited ELI Emerging Leaders
Slide 12: Top Contributors and Detractors
Top Contributors and Detractors* For personal use only Research Driven Contributors % Detractors % NEA Nearmap Ltd 5.2 NXT NEXTDC Ltd -0.8 IPP iProperty Group Ltd 4.7 UGL UGL Ltd -0.2 RCR RCR Tomlinson Ltd 4.6 TEN Ten Network Holdings Ltd -0.2 Market Driven Contributors % Detractors % HIL Hills Hold
Slide 13: Research Driven Investee Company: Slater & Gordon Limited (SGH)
Research Driven Investee Company For personal use only Slater & Gordon Limited (SGH) Overview • Large consumer law firm with 70 Australian offices and 12 UK offices with 1200 staff Background • Reforms implemented in April 2013 changing how claims management companies allocate work to law firms Cata
Slide 14: Market Driven Investee Company: FKP Property Group (FKP)
Market Driven Investee Company For personal use only FKP Property Group (FKP) Overview • Retirement living operator and developer Background • Previously trading at a 66% discount to NTA Catalyst • Meeting with FKP management during August reporting season. New CEO set out plan for reducing discount
Slide 15: Market Overview and Outlook
For personal use only Market Overview and Outlook
Slide 16: Current Market Themes
Current Market Themes For personal use only Employment Strong housing participation rate market falling Continued US Tech company economic renaissance recovery New government Small caps providing underperforming companies due to weak certainty resource stocks 16
Slide 17: Market Outlook
Market Outlook For personal use only P/E multiples M&A activity to Strong IPO activity expanding - continue in 2014 earnings weak Interest rates to remain low by Australian dollar QE tapering in historical to weaken early 2014 standards 17
Slide 18: Strong Housing Market
Strong Housing Market For personal use only 18
Slide 19: P/E Multiples Expanding
P/E Multiples Expanding For personal use only The S&P/ASX Small Industrials Source: Macquarie Securities Group 19
Slide 20: About Wilson Asset Management
For personal use only About Wilson Asset Management
Slide 21: Experienced Team
Experienced Team For personal use only Geoff Wilson Martin Hickson B Sc GMQ FAICD FFinsia B Bus B Comp Chairman / Senior Equity Analyst / Portfolio Manager Dealer Kate Thorley Matthew Haupt B Com CPA Grad Dip ACG CFA B Com Grad Dip App Fin Chief Executive Officer / Equity Analyst Company Secretary C
Slide 22: Investment Approach
Investment Approach For personal use only Research Research Driven Market Driven Investment Strategy & Market Investment Strategy Driven Identifying Exploiting market undervalued growth mis-pricing companies opportunities 22
Slide 23: Our LICs
Our LICs For personal use only Gross assets* $622.2m $138.4m $37.7m Share price* $1.88 $1.175 $1.24 Pre tax NTA* $1.83 $1.11 $1.12 Growth in dividends 9.1% 7.7% 5.6% Fully Franked 6.4% 6.0% 7.7% Dividend Yield* *As at 31 October 2013 23
Slide 24: Investor Communications
For personal use only Investor Communications
Slide 25: Investor communication
Investor communication For personal use only Weekly emails Half yearly Half yearly Half & full year including market national investor investor financial results update presentations newsletters Monthly NTA Website Media Industry announcement wamfunds.com.au conferences & investment update 25
Slide 26: Wilson Asset Management in the Community
For personal use only Wilson Asset Management in the Community
Slide 27: Community Investment
Community Investment For personal use only All donations are made by Wilson Asset Management (the investment manager) and/or its staff, not the listed entities.27
Slide 28: Disclaimer
For personal use only Disclaimer This presentation has been prepared for use in conjunction with a verbal presentation and should be read in that context. Information for the graphs, charts and quoted indices contained in this presentation has been sourced from IRESS Market Technology, Veritas Secur
Slide 29: WAM Capital Limited
WAM Capital Limited For personal use only Investor Presentation Sydney, November 2013