NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — Investor Presentation (September 2016)
25 slides from NAOS Ex-50 Opportunities's investor presentation, Sep 6, 2016
Slide 1: Investor Presentation August/September 2016
For personal use only INVESTOR PRESENTATION AUGUST/SEPTEMBER 2016
Slide 2: Agenda
AGENDA For personal use only 3. NAOS 4. NAOS Emerging Absolute 5. Market 1. NAOS - An 2. NAOS Opportunities Opportunities Outlook: Introduction Philosophy Company Company Opportunities Limited (ASX: Limited (ASX: NCC) NAC) 6. Market 7. Market 8. Market Outlook: Key Outlook: Key Outlook: 9. Investor
Slide 3: NAOS – An Introduction
For personal use only NAOS – An Introduction NAOS PROVIDES INVESTORS GENUINE EXPOSURE TO EMERGING COMPANIES (EX-ASX100) WHERE WE HAVE A CLEAR COMPETITIVE ADVANTAGE TO OUTPERFORM AND DELIVER VALUE OVER THE LONG TERM • EMERGING COMPANIES ARE OFTEN NOT THE CORE COMPETENCY OF MANY INVESTORS • WE MANAGE
Slide 4: NAOS Investment Philosophy
For personal use only NAOS Investment Philosophy NAOS BELIEVE THAT LONG TERM INVESTMENT OPPORTUNITIES ARISE DUE TO MARKET INEFFICIENCIES THAT OCCUR FOR THE FOLLOWING REASONS: 1) SHORT TERMISM OF MARKET PARTICIPANTS I.E. 12 MONTHS OR LESS 2) LUMPINESS OF A COMPANY’S PROFITABILITY AND CASH GENERATION
Slide 5: NAOS Emerging Opportunities Company (NCC)
NAOS EMERGING OPPORTUNITIES COMPANY (ASX: NCC) For personal use only • Pure, concentrated exposure to quality undervalued emerging companies. • Focus on long term capital preservation. • Investment selection based on long term investment credentials regardless of size or liquidity. Key Market Statis
Slide 6: Competitive Advantage: NAOS Emerging Opportunities Company Limited
COMPETITIVE ADVANTAGE: NAOS EMERGING OPPORTUNITIES COMPANY LIMITED ( NCC) For personal use only NCC Concentrated Portfolio Structure Consistent Fully Franked Dividend Stream Benchmark Unaware AUM Limit to Maximise Performance Can Hold +100% Cash Investment Benefits via Closed Structure N
Slide 7: Dividend Profile: NAOS Emerging Opportunities Company (NCC)
DIVIDEND PROFILE: NAOS EMERGING OPPORTUNITIES COMPANY (NCC) For personal use only Growing fully Historical Fully Franked Dividends, Cents per Share franked dividend profile over 4 years. $0.07 $0.0675 $0.0575 $0.0625 ‘Clean’ capital $0.06 structure; i.e. no listed or unlisted $0.05 options on is
Slide 8: NCC: Directors Increasing Alignment with Shareholders Since IPO
NCC: DIRECTORS INCREASING ALIGNMENT WITH SHAREHOLDERS SINCE IPO AS AT 31 ST JULY 2016 For personal use only 1,910,061 2,000,000 1,800,000 1,543,000 1,600,000 1,400,000 1,016,590 1,200,000 1,000,000 578,782 800,000 600,000 283,829 200,000 400,000 200,000 0 David Rickards Sebastian Evans Warwick Evans
Slide 9: NAOS Absolute Opportunities Company (NAC)
NAOS ABSOLUTE OPPORTUNITIES COMPANY (ASX: NAC) For personal use only • Quality undervalued mid-cap companies • The ability to selectively short overvalued lower quality companies. • Focus on minimising the risk of permanent capital loss. • Produce uncorrelated returns to general market movements ove
Slide 10: Competitive Advantage: NAOS Absolute Opportunities Company Limited
COMPETITIVE ADVANTAGE: NAOS ABSOLUTE OPPORTUNITIES COMPANY LIMITED (NAC) For personal use only NAC Absolute Return Focus Shorting Ability Focus on Domestic ASX Listed Mid Cap Opportunities Ability to Supplement Portfolio With Select Global Opportunities Fully Franked Dividend Benchmark Una
Slide 11: Dividend Profile: NAOS Absolute Opportunities Company (NAC)
DIVIDEND PROFILE: NAOS ABSOLUTE OPPORTUNITIES COMPANY (NAC) For personal use only Historical Fully Franked Dividends, Cents per Share Growing fully franked dividend profile $0.05 $0.0475 On market purchase of shares to meet demand of DRP $0.04 eliminating dilution. $0.03 Shareholder base has $
Slide 12: NAC: Directors Increasing Alignment with Shareholders Since IPO
NAC: DIRECTORS INCREASING ALIGNMENT WITH SHAREHOLDERS SINCE IPO AS AT 31 ST JULY 2016 For personal use only 1,346,275 1,400,000 1,200,000 885,380 1,000,000 800,000 465,087 500,000 600,000 400,000 200,000 137,958 200,000 0 David Rickards Warwick Evans Sebastian Evans IPO Shareholding Shareholding as
Slide 13: Market Outlook: Does a Flat Market Equate to Too Few Opportunities?
MARKET OUTLOOK: DOES A FLAT MARKET EQUATE TO TOO FEW OPPORTUNITIES? For personal use only Significant market dispersion exists even within a relatively flat overall market and also within well known and well researched companies. This ultimately means there are significant opportunities for fund man
Slide 14: Market Outlook: Key Macro Economic Factors
MARKET OUTLOOK: KEY MACRO ECONOMIC FACTORS For personal use only Key Macro Economic Factors: • 10-Year Government Bond Yields continue to fall in expectation of lower interest rates by policy makers. • Core inflation is moderate even when excluding for deflationary pressures such as energy prices. •
Slide 15: Market Outlook: Key Domestic Economic Factors
MARKET OUTLOOK: KEY DOMESTIC ECONOMIC FACTORS For personal use only Key Domestic Economic Factors: • Underlying inflation has been low, this can be associated with spare capacity in the labour market contributing to low wage price growth in turn placing pressure on costs and margins. • Business inve
Slide 16: Market Outlook: NAOS Investment Philosophy
MARKET OUTLOOK: NAOS INVESTMENT PHILOSOPHY For personal use only Balance sheet flexibility Proven Ability to drive management teams revenue and/or with strong margin growth shareholder alignment. Companies valued based on todays flat Existing revenue earnings profile but streams not tomorrows growin
Slide 17: Investment Ideas NCC: Armidale Investments
INVESTMENT IDEAS NCC: ARMIDALE INVESTMENTS (ASX: AIK) For personal use only The AIK Story So Far: • TL Rentals leasing book has grown from ~$30 million to ~$85 million over 2.5 years. • TL Rentals secures funding arrangement with a Tier-1 lender. • AIK made two acquisitions in the finance broking sp
Slide 18: Investment Ideas NAC: My Net Fone
INVESTMENT IDEAS NAC: MY NET FONE (ASX: MNF) For personal use only The MNF Story So Far: • MNF is Australia's largest provider of wholesale and retail voice over internet (VOIP) services within Australia. • In 2015 MNF acquired TNZI, a Tier 1 international wholesale voice carrier. • MNF has been abl
Slide 19: The Outperformance of Adequately Sized Funds
THE OUTPERFORMANCE OF ADEQUATELY SIZED FUNDS For personal use only “Over the past three years, the smallest funds (under $100m) beat those with over $1bn – returning around 5 per cent annually against 4.6 per cent, according to Preqin. The gap is particularly pronounced in the year to July, during w
Slide 20: Investor Awareness and Communications
INVESTOR AWARENESS AND COMMUNICATIONS For personal use only CEO Insights, Weekly NAOS Newsletter, subscribe via our website www.naos.com.au/#subscribeform Quarterly Shareholder Conference Calls, subscribe via our website www.naos.com.au/#subscribeform Monthly Investment Report & NTA email updates, s
Slide 21: Appendix
For personal use only Appendix Conviction Absolute Long Term Investing | Copyright 2016 NAOS Asset Management Limited 21
Slide 22: The NAOS Team and Directors
THE NAOS TEAM AND DIRECTORS For personal use only Sebastian Evans Richard Preedy Chief Investment Officer/ Chief Financial & Operating Officer Managing Director Ben Rundle Julie Coventry Portfolio Manager Compliance Officer Sebastian Evans David Rickards Warwick Evans Director Independent Chairman D
Slide 23: Total Return: NAOS Absolute Opportunities Company Limited (NAC)
TOTAL RETURN: NAOS ABSOLUTE OPPORTUNITIES COMPANY LIMITED (NAC) For personal use only $0.26 $0.24 $0.22 $0.2100 $0.20 $0.18 $0.16 $0.14 $0.12 $0.10 $0.08 $0.06 $0.0425 $0.0500 $0.04 $0.0180 $0.02 $0.00 Franking Dividends (Net) NACO Options* NTA *NACO price based on last traded price as per ASX Convi
Slide 24: Total Return: NAOS Emerging Opportunities Company Limited (NCC)
TOTAL RETURN: NAOS EMERGING OPPORTUNITIES COMPANY LIMITED (NCC) For personal use only $0.34 $0.32 $0.30 $0.3000 $0.28 $0.26 $0.24 $0.22 $0.20 $0.18 $0.1775 $0.16 $0.1400 $0.14 $0.12 $0.0760 $0.10 $0.08 $0.06 $0.04 $0.02 $0.00 Franking NCCO Option Value* Dividends (Net) NTA at End of Month *Intrinsic
Slide 25: Disclaimer
For personal use only Disclaimer This presentation has been prepared by NAOS Asset Management Limited (ABN 23 107 624 126, AFSL 273529, “NAML”). The purpose of this presentation is to provide information only; any other use other than informational purposes is disclaimed. The information provided is
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