NAOS Emerging Opportunities Co. Ltd. · ASX:NCC
NAOS Emerging Opportunities — Q4 FY2017 Earnings Presentation
25 slides from NAOS Emerging Opportunities's earnings presentation, Jul 19, 2017
Slide 1: Quarterly Investor Briefing 4th Quarter FY-2017
QUARTERLY INVESTOR BRIEFING For personal use only 4TH QUARTER FY-2017 NAOS EMERGING OPPORTUNITIES COMPANY LIMITED (ASX: NCC)
Slide 2: Call Details
CALL DETAILS For personal use only 1. Date Wednesday 19 July 2017 2. Time 11.30am AEST 3. Telephone Within Australia: 1800 857 029 Outside Australia: +61 3 8687 0635 New Zealand: 0800 449 288 4. Guest Access Code 1084 2873# 5. Questions Please email all questions to enquiries@naos.com.au prior to th
Slide 3: NCC Agenda
NCC AGENDA For personal use only 1. NCC Q4 FY17 Review • Performance & Risk Summary • Stock Contribution (Since Inception) • Return Profile, Positive v Negative Return Months • Capital Analysis • Dividend Profile • Director/Shareholder Alignment • Historical Net Equity & Cash Exposure • Industry/Sec
Slide 4: 1. NCC Review
For personal use only 1. NCC Review “ESTABLISHING AND MAINTAINING AN UNCONVENTIONAL INVESTMENT PROFILE REQUIRES ACCEPTANCE OF UNCOMFORTABLY IDIOSYNCRATIC PORTFOLIOS, WHICH FREQUENTLY APPEAR DOWNRIGHT IMPRUDENT IN THE EYES OF CONVENTIONAL WISDOM.” – DAVID SWENSEN Conviction Long Term Investing | Copy
Slide 5: NCC: Performance & Portfolio Characteristics Summary
NCC: PERFORMANCE & PORTFOLIO CHARACTERISTICS SUMMARY AS AT 30 JUNE 2017 For personal use only 2 Year 3 Year 4 Year Inception Inception 3 Month 1 Year (%p.a.) (% p.a.) (% p.a.) (% p.a.) (% Nom.) NCC Investment Portfolio Performance* -2.59% +12.39% +18.41% +12.46% +16.96% +18.26% +107.06% S&P/ASX Smal
Slide 6: NCC: Positive Stock Attribution Summary (Since Inception)
NCC: POSITIVE STOCK ATTRIBUTION SUMMARY (SINCE INCEPTION) AS AT 30 JUNE 2017 For personal use only Positive Stock Contribution Analysis (Contribution is what has attributed to NCC’s performance since inception) (1 March 2013 to 30 June 2017) The table below lists the top positive contributors to NCC
Slide 7: NCC: Return Profile, Positive v Negative Months
NCC: RETURN PROFILE, POSITIVE V NEGATIVE MONTHS AS AT 30 JUNE 2017 For personal use only 11.00% 9.00% 7.00% 5.00% 3.00% 1.00% -1.00% -3.00% -5.00% Gross Return Conviction Long Term Investing | Copyright 2017 NAOS Asset Management Limited 7
Slide 8: NCC: Capital Analysis
NCC: CAPITAL ANALYSIS AS AT 30 JUNE 2017 For personal use only NTA Analysis Pre Tax - $1.31 Post Tax & Pre Unrealised Gains Tax – $1.29 Post Tax - $1.24 Share Price $1.33 Premium to NTA (Pre-Tax) 1.53% Fully Franked Dividend Yield 5.26% Shares on Issue 59,173,393 Directors Shareholding 3,829,879 Con
Slide 9: NCC: Historical Fully Franked Dividend Profile
NCC: HISTORICAL FULLY FRANKED DIVIDEND PROFILE AS AT 30 JUNE 2017 For personal use only $0.07 $0.0675 $0.0625 $0.0575 $0.06 $0.05 $0.04 Dividend $0.0250 $0.0350 $0.03 $0.02 $0.01 Interim $0.00 FY13 Maiden FY14 FY15 FY16 1H FY17 Conviction Long Term Investing | Copyright 2017 NAOS Asset Management Li
Slide 10: NCC: Directors Increasing Alignment with Shareholders Since IPO
NCC: DIRECTORS INCREASING ALIGNMENT WITH SHAREHOLDERS SINCE IPO AS AT 30 JUNE 2017 For personal use only 2,500,000 2,000,000 2,000,193 1,543,000 1,500,000 1,165,131 1,000,000 664,555 200,000 500,000 283,829 0 David Rickards* Sebastian Evans*^ Warwick Evans* IPO Shareholding Shareholding as at 30 Jun
Slide 11: NCC: Portfolio Structure Historical Net Equity and Cash Weightings
For personal use only 0% 100% 120% -40% -20% 20% 40% 60% 80% Feb-13 Mar-13 Apr-13 May-13 Jun-13 Jul-13 Aug-13 Sep-13 Oct-13 AS AT 30 JUNE 2017 Nov-13 Dec-13 Jan-14 Feb-14 Mar-14 Net Equity Weighting Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Conviction Long T
Slide 12: NCC: Portfolio Structure Allocation by Industry/Sector (Net)
NCC: PORTFOLIO STRUCTURE ALLOCATION BY INDUSTRY/SECTOR (NET) AS AT 30 JUNE 2017 For personal use only 0.35% Capital Goods 2.31% Consumer Durables 2.70% Food & Beverage 11.06% Media 12.97% Materials 15.90% Telecommunications 24.57% Consumer Services 28.84% Diversified Financials 0% 10% 20% 30% 40% Co
Slide 13: NCC: Company Meetings
NCC: 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 man
Slide 14: 2. Market Outlook
For personal use only 2. Market Outlook “THE MARKET CAN REMAIN IRRATIONAL LONGER THAN YOU CAN REMAIN SOLVENT.” – JOHN MAYNARD KEYNES Conviction Long Term Investing | Copyright 2017 NAOS Asset Management Limited 14
Slide 15: Portfolio Update for Q4 FY2017: Enero Group
NCC MARKET OUTLOOK: PORTFOLIO UPDATE FOR Q4 FY2017 For personal use only Enero Group (ASX: EGG) - Enero Group announced a capital readjustment, which paved the way for the first special dividend ($0.05 fully franked) since NAOS has been a shareholder - over 4 years. - EGG still holds a substantial n
Slide 16: Portfolio Update for Q4 FY2017: Biotech Capital
NCC MARKET OUTLOOK: PORTFOLIO UPDATE FOR Q4 FY2017 For personal use only Biotech Capital (ASX: BTC) - New addition to the NCC investment portfolio with a market cap of $20 million. - Long term value play led by Richard Treagus, the former CEO of Acrux (ASX: ACR) - BTC is a Pooled Development Fund (P
Slide 17: Market Outlook: FY2017 Year in Review
NCC MARKET OUTLOOK: FY2017 YEAR IN REVIEW For personal use only Notable Positive Outcomes - CML Group (ASX: CGR) – Lower cost of funds through the establishment of a big-4 bank funding facility, coupled with a focus on organic growth and margin expansion. - Enero Group (ASX: EGG) – The resolution of
Slide 18: Market Outlook: Market Commentary
NCC MARKET OUTLOOK: MARKET COMMENTARY For personal use only Notable Change in Industry Performance & Divergence - Over the past quarter there has been increased focus on the “reflation” trade and what effect the potential for higher inflation and therefore higher interest rates will have on specific
Slide 19: Market Outlook: Market Commentary
NCC MARKET OUTLOOK: MARKET COMMENTARY For personal use only Conviction Long Term Investing | Copyright 2017 NAOS Asset Management Limited 19
Slide 20: Market Outlook: Market Commentary
NCC MARKET OUTLOOK: MARKET COMMENTARY For personal use only Conviction Long Term Investing | Copyright 2017 NAOS Asset Management Limited 20
Slide 21: Market Outlook: NAOS Investment Philosophy
MARKET OUTLOOK: NAOS INVESTMENT PHILOSOPHY Companies valued based on todays For personal use only Balance sheet flat earnings flexibility profile but not tomorrows growing earnings base Proven management Ability to drive teams with strong revenue and/or shareholder margin growth alignment Existing C
Slide 22: 3. Keeping Up to Date
For personal use only 3. Keeping Up to Date “SUPERIOR RESULTS DON’T COME FROM BUYING HIGH QUALITY ASSETS, BUT FROM BUYING ASSETS – REGARDLESS OF QUALITY – FOR LESS THAN THEY’RE WORTH. IT’S ESSENTIAL TO UNDERSTAND THE DIFFERENCE BETWEEN BUYING GOOD THINGS AND BUYING THINGS WELL.” – HOWARD MARKS Convi
Slide 23: Investor Awareness and Communications
INVESTOR AWARENESS AND COMMUNICATIONS For personal use only CEO Insights, Quarterly Monthly The news and Twice yearly Weekly NAOS Shareholder Investment Report media section of National Newsletter, Conference Calls, & NTA email our website is Roadshow register subscribe via our subscribe via our upd
Slide 24: The NAOS Team and Directors
THE NAOS TEAM AND DIRECTORS For personal use only Sebastian Evans Richard Preedy Ben Rundle Chief Investment Officer/ Chief Financial & Portfolio Manager Managing Director Operating Officer Warwick David Rickards Sebastian Evans Director Evans Independent Director Chairman Robert Miller Jeffrey Kim
Slide 25: Disclaimer
DISCLAIMER For personal use only 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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