Katana Capital Ltd. · ASX:KAT
Katana Capital — Shareholder Meeting (November 2007)
20 slides from Katana Capital's shareholder meeting presentation, Nov 20, 2007
Slide 1: ASX/Media Release: Results of AGM
For personal use only ASX/MEDIA RELEASE 20 November 2007 RESULTS OF AGM Katana Capital Limited (ASX: KAT) (“Katana Capital”) Please find attached, the company's Annual General Meeting (AGM) presentation tabled at the company's AGM held yesterday. Results of AGM In accordance with ASX Listing Rule 3.
Slide 2: Katana Capital Ltd – AGM Presentation
For personal use only Katana Capital Ltd – AGM Presentation 19th November 2007 Presentation byy : Romano Sala Tenna Brad Shallard www.katanacapital.com.au
Slide 3: Disclaimer
Disclaimer For personal use only The information contained in this presentation is provided to each recipient on the following basis: a) this presentation has been produced by Classic Capital PL (CCL). This presentation does not purport to contain all the information that the recipient p may y requi
Slide 4: International outlook
Investment Update For personal use only • International – Expect continued volatility driven by US financial stocks – Global interest rates are likely to be volatile but from a global perspective retain a positive bias on equities – The ‘BRIC’ economies continue to expand – Global economic growth is
Slide 5: Global economic growth
Investment Update For personal use only Global economic growth has stabilised around 4.7% in calendar 2007 but is still forecast to grow by 4.4% in 2008, which is still above th annuall average growth the th rate t off 3 3.7% 7% over the th pastt 30 years Global economic growth (%) Weight 2004(a)
Slide 6: Global profit growth
Investment Update For personal use only Global profit growth (%) Weight 2004(a) 2005(a) 2006(a) 2007(e) 2008(e) US 0.25 3.9 3.2 3.3 1.9 2.7 Japan 0 08 0.08 23 2.3 19 1.9 22 2.2 21 2.1 22 2.2 EU 0.25 2.0 1.6 2.8 2.5 2.5 Asia 0.25 8.8 8.5 8.3 7.4 7.4 Latin America 0.08 5.7 4.2 4.8 4.0 3.8 Transition E
Slide 7: Macro domestic themes
Investment Update For personal use only The Managers of Katana Capital continue to endorse three macro domestic themes: 1. resources & resource servicing companies 2. (specifically) energy; value in coal 3. financial services companies
Slide 8: Top Holdings as at 31/10/2007
Investment Update For personal use only Top 10 Holdings as at 31/10/2007 Stock $ Value % of Portfolio Mineral Resources Limited $5,445,000 9.4% Rio Tinto Limited $3,287,800 5.7% BHP Billiton Limited $2,903,670 5.0% Global Construction Services $2,067,030 3.6% Metcash Limited $1,727,900 3.0% Jubilee
Slide 9: Investment Revenue Generation
Investment Update For personal use only I Investment t t Revenue R Generation G ti Interest Other Dividends 3% 1% 5% Options 3% Equities 88% ‘Equities’ includes realised capital gains since between 1/7/06 and 30/6/2007 & unrealised li d capital it l gains i since i iinception ti
Slide 10: Funds under management increased >100% during the period
Investment Update For personal use only F d under Funds d managementt increased i d >100% 100% d during i ththe period i d % of Portfolio Invested 90.00% 80.00% 70.00% Portfolio 60.00% 50.00% % of P 40.00% 30.00% 20.00% 10.00% 0.00% Jun-06 Oct-06 Feb-07 Jun-07 Oct-07 M th Month Cash Invested
Slide 11: Monthly Performance
Investment Update For personal use only 16/17 months = Positive Returns 5 months of > 5% return Monthly Performance 10.00% 7.50% 5.00% Return 2.50% 0.00% %R -2.50% -5.00% -7.50% -10.00% 10 00% Jun-06 Oct-06 Feb-07 Jun-07 Oct-07 Month Exercise of 95c Katana Capital All Ordinaries options provided a o
Slide 12: Why Invest in Katana Capital?
Why Invest in Katana Capital? For personal use only • Si Sizeable bl Di Discountt tto NTA • Strong medium-term track record • Strong deal & information flows • Solid dividend yield • Extensively diversified portfolio
Slide 13: Sizeable Discount to NTA
Sizeable Discount to NTA For personal use only Last reported NTA (as at 31/10/7) – $1.38.1 after all expenses pre-tax – $1.25.2 after all expenses post-tax Last traded price of $1.10 represents a 20.3% / 12.1% discount to NTA. Strong S upside from f current levels
Slide 14: Strong Medium-Term Record
Strong Medium-Term Record For personal use only Year Entity Value of Average Source Ending Portfolio Return 2003 Management Entities $ 670,000 35.46% Prospectus lodged with ASIC 11/5/05 2004 Management Entities $ 923,000 28.97% Prospectus lodged with ASIC 11/5/05 2005 Management Entities $ 1,392,000
Slide 15: Strong Medium-Term Record
Strong Medium-Term Record For personal use only Year Average All Ords Out Ending Return Index Performance 2003 35.46% 8.47% 318.65% 2004 28.97% 15.69% 84.64% 2005 89.83% 24.98% 259.61% 51.42% 16.38% 220.97% 2006* 9.95% 6.90% 44.20% 2007 49.03% 25.36% 93.34% 29.49% 16.13% 68.77% 40.46% 16.26% 144.87%
Slide 16: Strong Deal & Information Flows
Strong Deal & Information Flows For personal use only • Deals originated directly by the Investment Manager • Bell Potter Securities Limited (Associated Broker) – Largest Australia retail broker • UBS Limited (Bell Potter research partner) – Largest international broker • Other Dealer Groups – Curre
Slide 17: Solid Dividend Yield
Solid Dividend Yield For personal use only Date Cents Per Type Share 09-Oct-2007 2.5 F 20-Apr-2007 2 I 20 A 2007 20-Apr-2007 2 S 17-Oct-2006 1.5 F • Katana paid a total of 6.5c for the 2007FY • This represents a payout ratio of approximately 30% of profits • Future dividends are expected to be fully
Slide 18: Extensively Diversified Portfolio
Extensively Diversified Portfolio For personal use only Some investment managers take on a lot of risk to achieve performance: •Concentrated holdings •Small market capitalisations etc. Katana •Has in excess of 65 companies in the portfolio •Most holdings g 1-3% in size •Extensive weighting towards l
Slide 19: Extensively Diversified Portfolio
5. Extensively Diversified Portfolio For personal use only Diversification reduces risk Diversification enables a long term holding to be established through one vehicle that actively manages: – Asset allocation – Sector allocation – Economic Cycle (timing) decisions – Stock selection and allocation
Slide 20: Questions
For personal use only Katana Capital Ltd – AGM Presentation Questions www.katanacapital.com.au