NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — NAOS Absolute Opportunities Company — Q1 FY2017 Earnings Presentation
23 slides from NAOS Ex-50 Opportunities's earnings presentation, Oct 13, 2016
Slide 1: Quarterly Investor Briefing 1st Quarter FY-2017
For personal use only QUARTERLY INVESTOR BRIEFING 1 ST QUARTER FY-2017 NAOS Absolute Opportunities Company (ASX: NAC)
Slide 2: Call Details
CALL DETAILS For personal use only 1. Date Thursday 13th October 2016 2. Time 10.00am AEDT 3. Telephone 1800 857 029 4. Guest Access Code 10842873# 5. Questions Please email all questions to enquiries@naos.com.au prior to the allotted call time Conviction Long Term Investing | Copyright 2016 NAOS As
Slide 3: Agenda
AGENDA For personal use only 1. NAC Q1FY17 REVIEW • Performance Summary , Positive v Negative Return Months • Stock Contribution (Since Inception) • Risk Measures • Capital Analysis • Dividend Profile • Market Awareness, Shareholder Numbers • Director/Shareholder Alignment • Historical Net Equity &
Slide 4: 1. NAC Review
For personal use only 1. NAC Review Conviction Long Term Investing | Copyright 2016 NAOS Asset Management Limited 4
Slide 5: Performance & Portfolio Characteristics Summary
NAC: PERFORMANCE & PORTFOLIO CHARACTERISTICS SUMMARY AS AT 30TH SEPTEMBER 2016 For personal use only Inception 1 Month 3 Month 6 Month 1 Year Inception (p.a.) (Nom.) NAC Investment Portfolio +3.85% +13.20% +23.35% +46.02% +28.73% +60.91% Performance* Benchmark (RBA Cash Rate + +0.35% +1.12% +2.32% +
Slide 6: Positive Stock Contribution Summary Since Inception
NAC: POSITIVE STOCK CONTRIBUTION SUMMARY SINCE INCEPTION PRE FEES & FRANKING CREDITS, NET OF OPERATING EXPENSES AS AT 30 TH SEPTEMBER 2016 For personal use only Positive Stock Attribution Analysis (Attribution is what has contributed to NAC’s performance since Inception of 12th November 2014) Below
Slide 7: Risk Metrics
NAC: RISK METRICS AS AT 30 TH SEPTEMBER 2016 For personal use only Total Number of Equity Holdings (Long & Short) 18 Total Number of Income/Debt Instruments 0 Total Number of Holdings 18 Portfolio Weighted Market Capitalisation (AUD) $430.1m Percentage of Positive Months (NAC) 74% Percentage of Posi
Slide 8: NAC Capital Analysis
NAC CAPITAL ANALYSIS AS AT 30 TH SEPTEMBER 2016 For personal use only NTA ANALYSIS OPTIONS ON ISSUE Pre Tax - $1.26 NACO Post Tax Pre Unrealised Gains – $1.26 Expiry: 30th November 2016 Post Tax - $1.21 Price Exercisable: $1.00 Share Price $1.07 Share Price Discount to NTA (undiluted, pre tax) -15.0
Slide 9: Historical Dividend Profile
NAC: HISTORICAL DIVIDEND PROFILE AS AT 30 TH SEPTEMBER 2016 For personal use only $0.0475 $0.0500 $0.0400 $0.0300 $0.0200 $0.0200 $0.0100 $0.0000 FY-2015 FY-2016 Conviction Long Term Investing | Copyright 2016 NAOS Asset Management Limited 9
Slide 10: Focus on Increasing Market Awareness
NAC: FOCUS ON INCREASING MARKET AWARENESS For personal use only September Total 565 Shareholders 600 +13% MOM +30% YOY 550 500 450 400 Number of Shareholders 350 NOV-14 FEB-15 MAY-15 AUG-15 NOV-15 FEB-16 MAY-16 AUG-16 Conviction Long Term Investing | Copyright 2016 NAOS Asset Management Limited 10
Slide 11: Directors Increasing Alignment with Shareholders Since IPO
NAC: DIRECTORS INCREASING ALIGNMENT WITH SHAREHOLDERS SINCE IPO AS AT 11 TH OCTOBER 2016 For personal use only 1,518,224 1,600,000 1,400,000 1,159,966 1,200,000 1,000,000 800,000 500,000 465,087 600,000 200,000 400,000 137,958 200,000 0 David Rickards Warwick Evans Sebastian Evans IPO Shareholding S
Slide 12: Portfolio Structure: Historical Net Equity and Cash Weightings
NAC: PORTFOLIO STRUCTURE HISTORICAL NET EQUITY AND CASH WEIGHTINGS AS AT 30 TH SEPTEMBER 2016 For personal use only Net Equity Weighting Cash and Cash Equivalents Weighting Short Exposure Income Instruments 120% 100% 80% 74.51% 60% 40% 25.49% 20% 0.00% 0% -3.50% -20% -40% -60% Conviction Long Term I
Slide 13: Portfolio Structure
NAC: PORTFOLIO STRUCTURE AS AT 30 TH SEPTEMBER 2016 For personal use only Net Industry Exposure Geographical Equity Exposure Financials 22.16% Industrials 16.22% 81.53% Australia 74.51% Telecommunications 15.95% Consumer Discretionary 10.60% 0.00% Europe Healthcare 10.01% 0.00% Information Technolog
Slide 14: Company Meetings
NAC: COMPANY MEETINGS For personal use only The NAOS investment philosophy is based around the belief that for a company to succeed and generate strong returns for shareholders it must be led by a motivated, proven and experienced management team. The NAOS’ Investment Team has direct contact with ma
Slide 15: 2. Market Outlook
For personal use only 2. Market Outlook Conviction Long Term Investing | Copyright 2016 NAOS Asset Management Limited 15
Slide 16: Market Outlook: Focus for 2Q FY2017
MARKET OUTLOOK: FOCUS FOR 2Q FY2017 For personal use only • AGM Season: • Companies will provide a trading update for the four months of the financial year. • Major focus for AGM season: • Gauge the underlying momentum within each business over the first four months. • The ability of the management
Slide 17: Market Outlook: High Yield Debt Market (Junk Bond ETF)
MARKET OUTLOOK: HIGH YIELD DEBT MARKET (JUNK BOND ETF) For personal use only Conviction Long Term Investing | Copyright 2016 NAOS Asset Management Limited 17
Slide 18: Market Outlook: Noticeable Change in Industry Performance within the ASX-300
MARKET OUTLOOK: NOTICEABLE CHANGE IN INDUSTRY PERFORMANCE WITHIN THE ASX-300 For personal use only Conviction Long Term Investing | Copyright 2016 NAOS Asset Management Limited 18
Slide 19: Market Outlook: NAOS Investment Philosophy
MARKET OUTLOOK: NAOS INVESTMENT PHILOSOPHY For personal use only Companies valued based on todays flat earnings profile but not tomorrows growing earnings Proven base. management Existing revenue teams with strong streams. shareholder alignment. Ability to drive Focus on Balance sheet revenue and/or
Slide 20: 3. Keeping Up To Date
For personal use only 3. Keeping Up To Date Conviction Long Term Investing | Copyright 2016 NAOS Asset Management Limited 20
Slide 21: 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 22: The NAOS Team and NAC Directors
THE NAOS TEAM AND NAC 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 Chairm
Slide 23: 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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