Mirrabooka Investments Ltd · ASX:MIR
Mirrabooka Investments — Investor Presentation (March 2018)
28 slides from Mirrabooka Investments's investor presentation, Mar 19, 2018
Slide 1: Information Meetings – Presentation
19 March 2018 For personal use only The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Announcement Mirrabooka Investments Limited Information Meetings – Presentation Dear Sir / Madam Please find attached the presen
Slide 2: Shareholder Meetings March 2018
For personal use only Shareholder Meetings March 2018
Slide 3: Disclaimer
For personal use only Disclaimer Mirrabooka Investments Limited and Australian Investment Company Services Limited (AFSL: 303209) and each of their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good faith. However, n
Slide 4: Introduction
For personal use only Introduction Annual General Meeting 2017
Slide 5: Labor Party have announced the ending of refundability of franking credits
For personal use only Labor Party have announced the ending of refundability of franking credits • The Labor Party has announced that if elected it will stop excess franking credits being refunded to shareholders. • This particularly impacts individuals and self-managed super funds – charities, not-
Slide 6: Labor Party have announced the ending of refundability of franking credits
For personal use only Labor Party have announced the ending of refundability of franking credits • We feel that this is an unfair attack on a specific sections of the investing public i.e. SMSF’s and low-income earners who hold investments outside of retail and industry super-funds. • Many sharehold
Slide 7: Overview of Mirrabooka and Company Recent Financial Performance
For personal use only Overview of Mirrabooka andCompany Recent Financial Performance Shareholder Meetings March 2018
Slide 8: Mirrabooka's Investment Approach
For personal use only Mirrabooka’s Investment Approach Small and Mid Cap Listed Companies in Australia and New Zealand Shareholder Meetings March 2018 Page 7
Slide 9: Management of the Portfolio
For personal use only Management of the Portfolio Shareholder Meetings March 2018 Page 8
Slide 10: Half Year Financial Summary – December 2017
For personal use only Half Year Financial Summary – 31 December 2017 Shareholder Meetings March 2018 Page 9
Slide 11: Changes to Tax Legislation – Franking Credits
For personal use only Changes to Tax Legislation – Franking Credits • The Federal Government has proposed retrospective legislation to prevent Investment Companies claiming the lower company tax rate until 2023–24. • We are still waiting for it to be enacted. If passed Mirrabooka will continue to pa
Slide 12: Share Price is at a 9% Premium to Net Asset Backing
For personal use only Share Price is at a 9% Premium to Net Asset Backing Shareholder Meetings March 2018 Page 11
Slide 13: Cumulative Share Price Return Including Franking Credits – 10 Years to 28 February 2018
For personal use only Cumulative Share Price Return Including Franking Credits* – 10 Years to 28 February 2018 Mirrabooka shares Combined S&P/ASX Mid Cap 50 and Small Ordinaries Accumulation Indices Note assumes an investor can take full advantage of the franking credits. This chart calculates the b
Slide 14: Market and the Portfolio
For personal use only Market and the Portfolio Shareholder Meetings March 2018
Slide 15: Resources Have Been Very Strong in the Small and Mid Cap Sectors
For personal use only Resources Have Been Very Strong in the Small and Mid Cap Sectors Small resources Mid cap resources Small industrials Mid cap industrials Shareholder Meetings March 2018 Page 14
Slide 16: Mirrabooka's Portfolio – Per Annum Returns to February 2018
For personal use only Mirrabooka’s Portfolio – Per Annum Returns to 28 February 2018, Including Franking Credits* Shareholder Meetings March 2018 Page 15
Slide 17: Small and Mid Cap Industrial Sector Valuations Remain High
For personal use only Small and Mid Cap Industrial Sector Valuations Remain High Small Industrials Price Earnings Ratio Mid Cap Industrials Price Earnings Ratio Source: FactSet. Source: FactSet. Shareholder Meetings March 2018 Page 16
Slide 18: Stocks at 'High Multiples' Trading at Forward P/E 43% Above 15-year Average
For personal use only With Stocks at ‘High Multiples’ Trading at an Average Forward P/E of 43% Above the 15-year Average Source: Stocks in the Goldman Sachs ‘High Multiples’ screen. Shareholder Meetings March 2018 Page 17
Slide 19: Very Good Performance From Holdings Added Over the Past 2 Years
For personal use only We have had Some Very Good Performance From Holdings Added Over the Past 2 Years These companies have delivered positive 2.8% of relative portfolio performance Not owning A2 Milk has detracted 3.2% from relative portfolio performance Shareholder Meetings March 2018 Page 18
Slide 20: Portfolio at February 2018 (Excluding Cash)
For personal use only Portfolio at 28 February 2018 (Excluding Cash) Diversification of the Portfolio Top 10 Holdings – 69 holdings in total Rank Company % of Portfolio 1 Lifestyle Communities 4.6% 2 Qube Holdings 3.7% 3 Mainfreight 3.2% 4 ResMed* 2.9% 5 Seek* 2.8% 6 Challenger* 2.7% 7 ALS* 2.7% 8 F
Slide 21: Portfolio at February 2018 (Excluding Cash) continued
For personal use only Portfolio at 28 February 2018 (Excluding Cash) continued Diversification of the Portfolio Next 10 Holdings – 69 holdings in total Rank Company % of Portfolio 11 ARB Corporation 2.4% 12 IRESS 2.2% 13 Computershare* 2.2% 14 Reece 2.2% 15 AUB Group 2.2% 16 ClearView Wealth 2.1% 17
Slide 22: Major Portfolio Activity – Financial Year to Date
For personal use only Major Portfolio Activity – Financial Year to Date Buying New Selling Complete Sale Complete Sale Shareholder Meetings March 2018 Page 21
Slide 23: Featured Holdings – Boral
For personal use only Featured Holdings – Boral What we like: share price • Management have repositioned the business, sold low returning assets and invested in stronger market positions with better growth prospects. • Leaves them well placed to benefit from strengthening infrastructure cycles in Au
Slide 24: Featured Holdings – Webjet
For personal use only Featured Holdings – Webjet What we like: share price • Largest online travel agency in Australia benefitting from the structural shift to online booking away from bricks and mortar. • Growing international presence in B2B hotel wholesaling business – a business in which the man
Slide 25: Outlook
For personal use only Outlook Shareholder Meetings March 2018
Slide 26: Recent Reporting Season Summary – Small and Mid Caps
For personal use only Recent Reporting Season Summary – Small and Mid Caps • Broadly positive results from the mid and small caps, including Mirrabooka’s holdings. • Prospects for earnings growth continue to look brighter for small and midcap companies than for large caps. • Companies with earnings
Slide 27: Market Comments
For personal use only Market Comments • Mirrabooka holds an elevated cash position given high valuations in the market. • There is likely to be further market volatility as global interest rates adjust to stronger growth. • We will only buy where we see long term value on offer in quality companies.
Slide 28: Mirrabooka Investments Limited
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