NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — Q1 2022 Earnings Presentation
37 slides from NAOS Ex-50 Opportunities's earnings presentation, Oct 26, 2021
Slide 1: Q1 FY22 Investor Update & Q&A
Q1 FY22 INVESTOR UPDATE & Q&A Tuesday 26 October 2021 | 10:30 am (AEDT) Audio Dial In: +61 2 8355 1054 Audio Access Code: 628-989-569 PRESENTED BY NAOS ASSET MANAGEMENT CONVICTION. LONG TERM. ALIGNED | Copyright 2019 NAOS Asset Management Limited 1
Slide 2: Important information
Important information This material has been prepared by NAOS Asset Management Limited (ABN 23 107 624 126, AFSL 273529) (NAOS) for general information purposes only and must not be construed as investment advice. It does not constitute an offer to purchase any security or financial product or servi
Slide 3: NAOS Asset Management
NAOS Asset Management Our Mission To provide investors genuine long-term, concentrated exposure to growing Australian undervalued emerging companies with an industrial focus. NAOS established its first Listed Investment Company (LIC) in 2013 with 400 shareholders, today NAOS manages ~$400 million ac
Slide 4: NAOS Directors and Team
NAOS Directors and Team OUR DIRECTORS Sebastian Evans Warwick Evans Sarah Williams Matthew Hyder David Rickards OAM Mark Bennett Trevor Carroll Managing Director, NAOS Chairman, NAOS Asset Independent Director, Director, NAOS Asset Independent Chairman & Director, NAOS Asset Independent Chairman Ass
Slide 5: NAOS investment beliefs provide a competitive advantage
NAOS investment beliefs provide a competitive advantage Value with Long Quality over Invest for the Term Growth Quantity Long Term 5+ years Performance v Ignore the Pure Exposure Liquidity Focus Index to Industrials The closed end LIC structure No Naos holdings removes application and are part of ei
Slide 6: Reasons not to invest with NAOS
Reasons not to invest with NAOS Our LICs are not for everyone. Some reasons why you may not choose to invest with NAOS include: Concentrated portfolios (0-15 investments) Long-term investment philosophy (5+ years) Focus on smaller companies ($20 million - $500 million) Benchmark unaware (No
Slide 7: NAOS LICs investment portfolio financial year returns
NAOS LICs investment portfolio financial year returns* 60% 50% 40% 30% 20% +3.73% 10% +1.74% 0% -1.62% -10% -20% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 YTD NAOS Emerging Opportunities Company Limited (ASX: NCC) NAOS Ex-50 Opportunities Company Limited (ASX: NAC) NAOS Small Cap Opportuniti
Slide 8: NAOS LIC Fully Franked Dividend History and Profit Reserves
NAOS LIC Fully Franked Dividend History and Profit Reserves Each LIC has consistently paid dividends and holds healthy profit reserves 90 80.70 80 70 60 57.50 Cents per share (CPS) 53.40 50 47.50 44.20 40 33.25 30 26.43 18.50 20.40 20 10 0 NCC NAC NSC Total Dividends Declared (Since Inception) Total
Slide 9: Investment portfolio performance summary
Investment portfolio performance summary BENCHMARK Q1 FY22 1 YEAR 1 YEAR INCEPTION INCEPTION Investment Portfolio PERFORMANCE PERFORMANCE BENCHMARK (P.A.) PERFORMANCE PERFORMANCE (P.A) NAC Investment Portfolio Performance* +3.73% +39.26% +33.80%^ +17.64% +8.91%^ NCC Investment Portfolio Performance*
Slide 10: What research does NAOS apply to the Investment Process?
What research does NAOS apply to the Investment Process? The NAOS Investment Team undertakes fundamental analysis on potential and current investments. Some examples of our key focus areas include: Internal Engagement External Engagement Hands On Research Executive Team including CEO, Company announ
Slide 11: Q1 FY22 Summary
Q1 FY22 Summary Q1 FY22 saw most NAOS portfolio companies report their full-year FY21 results. Overall, the results were in line with our expectations and provided us with further confidence in their ability to execute on their respective strategies. Given the impact of COVID-19, a distinct lack
Slide 12: Q1 FY22 Summary continued
Q1 FY22 Summary continued The trends we saw in 2H FY21 have continued, and arguably strengthened from both a domestic & global macroeconomic standpoint: Labour & skills shortages are hindering growth across many industries i.e. truck drivers and hospitality staff. Continued impact of supply ch
Slide 13: Initial Public Offering (IPO) Activity
Initial Public Offering (IPO) Activity A Decade of ASX IPOs 250 $18.0 $16.0 200 $14.0 $12.0 150 $10.0 $8.0 100 $6.0 $4.0 50 $2.0 - $0.0 2012 2013 2014 2015 2016 2017 2018 2019 2020 End Q3CY21 Annualised # of IPOs (LHS) Total Gross Proceeds ($bn) (RHS) Source: FactSet, NAOS CONVICTION. LONG TERM. ALI
Slide 14: Demand and underinvestment driving energy prices
Demand and underinvestment driving energy prices Global Energy Price Rises 4.5 4 3.5 3 2.5 2 1.5 1 0.5 0 Apr-01-2020 Jun-30-2020 Sep-28-2020 Dec-27-2020 Mar-27-2021 Jun-25-2021 Sep-23-2021 Crude Oil Natural Gas Coal Uranium Source: CapitalIQ, NAOS – Data as at 18/10/21 Prices rebased to 1 as of Apri
Slide 15: Welcome Michael Omeros
Welcome Michael Omeros Michael Omeros Managing Director, Over the Wire Holdings Limited (ASX: OTW) CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 15
Slide 16: Over the Wire company overview
Over the Wire is a technology company and integrated platform provider, establishing the model of the telco of the future. With offices across Australia, our purpose is to simplify technology to empower business. Brands include Over the Wire, NetSIP, FaktorTel, Telarus, VPN Solutions Comlinx, Access
Slide 17: CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited
CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 17
Slide 18: NCC key portfolio events Q1 FY22
NCC key portfolio events Q1 FY22 HOLDING INDUSTRY Q1 UPDATE Acquisition of Industrial Automation & Technology business, PlantWeave. PlantWeave acquisition adds technical depth to overall SND offering & Construction/ expediates entry into a variety of new markets. Engineering Declared a special
Slide 19: NCC overview: Cumulative Dividends
NCC overview as at 30 September 2021 $1.25 6.64% $1.13 11 +13.25% +36.03% $122.3m Pre-Tax Fully Franked Share Price Number of Performance 1 Year Weighted NTA Dividend Yield Holdings since Inception^ Performance ^ Average Market p.a. Capitalisation of the Investments FULLY FRANKED DIVIDEND (CENTS PER
Slide 20: NSC key portfolio events Q1 FY22
NSC key portfolio events Q1 FY22 HOLDING INDUSTRY Q1 UPDATE Reported a record FY21 profit with excellent cash conversion despite the headwinds from COVID-19. Financial Translates to a strong forward order book for COG in FY22. Services Insurance broking strategy led by former Steadfast executi
Slide 21: NSC overview: Cumulative Dividends
NSC overview as at 30 September 2021 $1.06 5.68% $0.88 7 +7.90% +48.91% $189.2m Pre-Tax Fully Franked Share Price Number of Performance 1 Year Weighted NTA Dividend Yield Holdings since Inception^ Performance ^ Average Market p.a. Capitalisation of the Investments FULLY FRANKED DIVIDEND (CENTS PER S
Slide 22: NAC key portfolio events Q1 FY22
NAC key portfolio events Q1 FY22 HOLDING INDUSTRY Q1 UPDATE UBN signed Colliers Australia as a Facilities Management software customer. Post implementation this may become a material contract and a source Software & Services of significant future opportunities. (ASX: UBN) UBN has recently sign
Slide 23: NAC overview: Cumulative Dividends
NAC overview as at 30 September 2021 $1.60 4.87% $1.18 9 +17.64% +39.26% $197.4m Pre-Tax Fully Franked Share Price Number of Performance 1 Year Weighted NTA Dividend Yield Holdings since Inception^ Performance ^ Average Market p.a. Capitalisation of the Investments FULLY FRANKED DIVIDEND (CENTS PER
Slide 24: Capital Management Initiatives
Capital Management Initiatives Performance • Maintain a focus on long term performance without deviating from the NAOS investment philosophy. • Continue to focus on a growing stream of dividends, franked to the maximum extent possible, whilst maintaining an Dividends adequate reserve balance. Alignm
Slide 25: Overview and Outlook Q2 FY22
Overview and Outlook Q2 FY22 • The easing of lockdown restrictions will have a significant effect on the earnings trajectory of many businesses over the short and medium term. Headwinds will continue to pose a challenge for many businesses with a specific focus on: Supply chain issues Employme
Slide 26: NAOS Asset Management 1% Pledge
NAOS Asset Management 1% Pledge As a company, we commit to Pledge 1% of revenue, time and intellect to movements and missions that matter. 1% Revenue 1% Time 1% Intellect Each year NAOS donates 1% of its annual Our people have an incredible range of skills NAOS sees the value in supporting revenue t
Slide 27: Q&A
Q&A Thank you for your continued support. “Games are won by players who focus on the playing field - not by those whose eyes are glued to the scoreboard.” Warren Buffett CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 27
Slide 28: Appendix
APPENDIX CONVICTION. LONG TERM. ALIGNED | Copyright 2019 NAOS Asset Management Limited 28
Slide 29: NAOS strong long term risk-adjusted returns
NAOS strong long term (5 years+) risk-adjusted returns * NCC Investment Portfolio Risk and Performance Metrics NAC Investment Portfolio Risk and Performance Metrics 15% 20% 13.25% 17.64% 15% 10% 7.77% 10% 8.91% 5% 3.47% 2.71% 5% 3.01% 2.67% 0% 0% -1.10% -0.50% -3.25% -2.79% -5% -5% Performance Since
Slide 30: The features of a NAOS LIC
The features of a NAOS LIC Closed-end structure Long-term Intra-day Liquidity No applications or Investment decisions Trades on the ASX redemptions Corporate Governance Dividends Opportunity Public companies provide A growing stream of May trade at a discount or accountability of Directors dividends
Slide 31: Key business & industry traits for maximising long-term performance
Key business & industry traits for maximising long-term performance and reducing the risk of permanent capital loss events A growing revenue base provides companies with a number of competitive advantages such as the ability to Industry Tailwinds Supporting Long Term scale their fixed cost base and
Slide 32: NAOS Listed Investment Companies
NAOS Listed Investment Companies Each of our LICs target a concentrated portfolio of 0-20 companies CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 32
Slide 33: NAOS management alignment
NAOS management alignment NAOS Director’s shareholdings have significantly increased since the inception of each LIC Inception Directors Shareholding (Ordinary Shares) 30 September 2021 Directors Shareholding (Ordinary Shares) 9,000,000 8,141,555 8,000,000 7,000,000 6,000,000 5,187,123 5,000,000 4,0
Slide 34: NAOS investment process
NAOS investment process CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 34
Slide 35: NAOS ESG framework
NAOS ESG framework CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 35
Slide 36: Historical shareholder numbers
Historical shareholder numbers 8000 6000 4000 2000 0 NCC Shareholders NAC Shareholders NSC Shareholders CONVICTION. LONG TERM. ALIGNED | Copyright 2021 2019 NAOS Asset Management Limited 36
Slide 37: Investor awareness and communication
Investor awareness and communication CEO Insights, NAOS Quarterly Monthly Investment The news and media Newsletter, Webinars Report & NTA email section of our website subscribe via our updates, subscribe via is updated regularly website our website naos.com.au naos.com.au/ naos.com.au/ subscribe sub
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