Mirrabooka Investments Ltd · ASX:MIR
Mirrabooka Investments — Shareholder Meeting (September 2006)
29 slides from Mirrabooka Investments's shareholder meeting presentation, Sep 25, 2006
Slide 1: 2006 Annual General Meeting Chairman's Presentation
MIRRABOOKA * 25 September 2006 The Manager Company Announcements Office Australian Stock Exchange Limited Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement Mirrabooka Investments Limited 2006 Annual General Meeting Chairman’s Presentation Dear Sir or Madam Mirrabooka Inve
Slide 2: Lo i .
Lo i . _ Le o a i oo yo 7 | i |
Slide 3: Dividend increases and higher trading contribution led to improved operating profit
$ million Dividend increases and higher trading contribution led to improved operating profit Major Contributors to Increased Profit $7.28m 7 + $0.80m in dividends 6 4 + $0.42m in trading & options income 5 4 4 4 3 4 24 2005 2006 Operating Operating Profit Profit —
Slide 4: AIFRS Reported Profit up as a result of sales from the Portfolio
AIFRS Reported Profit up as a result of sales from the Portfolio Major Contributors to 4 Increased Profit $20.40m — 20 -~ + $2.15m in net realised gains « 16 4 + $0.79m in Operating Profit C) = 12 4 FA 8 4 4 4 oO 4 2006 AIFRS €. MIRRABOOKA Investoients Limit * a mited ™ Pro fit Profit
Slide 5: Small and mid caps indices have continued their upward momentum
Small and mid caps indices have contin their upward momentuM . 2); Ordinaries ued Mid Cap Price Index Price Index 6000 — + 3500 5000 -- 3000 4000 - + 2500 * ee wf | 3000 + + 2000 Beginning of financial year 2000 | + 1500 dk ak oO oO Oo oD oD oD © OO OO © 0" WO™ 0% 107 WOP 107 O° 10° OP OP Or Or” 8 D
Slide 6: Small and mid caps continue to trade at premium to large cap stocks
Small and mid caps continue to trade at premium to large cap stocks 18 © 17 = 16 = Prospective P/E OF 15.2% Prospective P/E of 13.8x 15 5 14 + 13 5 1 2 T T T T T T T T T Nig e go go Na a © Na & P e ge we f’ i oh” - al” - yp w rod @ yp w & Xo) yp w & wo yp T T —s0 LEADERS sud COMBINED SMALL & MID CAP
Slide 7: Key Investment Themes
Key Investment Themes » Risk mitigation * Reduce some holdings where valuations looked extreme * Reduce holdings that become large relative to overall portfolio » Continue to look for investments * Add to existing companies during price weakness * Add new holdings to the portfolio
Slide 8: Earnings Per Share v Dividends Per Share
Earnings Per Share v Dividends Per Share 20 5 15 10 Cents per share 2002 2003 2004 2005 2006 Financial year w Net operating profit per share ™ Realised gains per share m Dividends per share MIRRABOOKA * a Investments Limited ™
Slide 9: Portfolio Management Performance - % Per Year
Portfolio Management Performance - % Per Year 35% 4 30% + 26.4% 28.8% 27.9% 24.4% 25% - 23.9% ° 22.0% 19.5% 0, J 18.5% 20% - 16.4% 15.8% Eo 14.2% 15% + 12.6% 10% -— 5% 0% 1 1 year 2 year 3 year 4 year 5 year since return return return return return inception Wi Mirrabooka Net Asset per share growth
Slide 10: Top Contributors to the ASX Mid Cap Index over year to 30 June 2006
Top 5 Contributors to the ASX Mid Cap 50 Index over year to 30 June 2006 Point % of total Total Company Name Contribution points Return % Zinifex 140.6 15.2% 229.6% Oxiana 123.5 13.3% 255.1% Patrick Corporation* 83.9 9.1% 59.2% Lihir Gold 73.5 7.9% 136.1% Resmed Inc 52.7 5.7% 44.5% Mirrabooka is int
Slide 11: Top Contributors to the ASX Small Ordinaries Index over year to 30 June 2006
% Top 5 Contributors to the ASX Small i Ordinaries Index over year to 30 June 2006 Point % of total Total Company Name Contribution points Return % WORLEYPARSONS 52.1 10.7% 154.8% PALADIN RESOURCES 35.9 7.4% 249.8% ALLCO FINANCE GROUP 32.2 6.6% 110.8% SFE CORPORATION LIMITED 23.4 48% 54.9% FORTESCUE
Slide 12: Performance since inception
Performance since inception Base of $1,000 in April 1999 Mirrabooka: $2,595 Market: $2,399 —— Mirrabooka net asset backing plus dividends =<—=_=Combined S&P ASX Small Ordinaries and Mid Cap 50 Indices MIRRABOOKA * a Investoients Limited aad
Slide 13: Mirrabooka's Share Price Return up 26.5% over the year
Mirrabooka’s Share Price Return up 26.5% over the year 35% > 0 30% - 29.1% 28.8% 27.9% 26.5% 26.4% 95% 23.2% 22.4% 22.0% mn 19.2% 19 5% 15% - 10% 5% - 0% | | | Tyearreturn 2yearreturn 3yearreturn 4yearreturn§ 5Syearreturn M Share Price Acc Series O CPi @ Combination S&P/ASX Mid Cap 50 and Small Ordi
Slide 14: Shareholders Equity and Shareholder Numbers
Shareholders Equity and Shareholder Numbers _ Number of $ Million Shareholders 250 - r 4,500 + 4,000 200 | L 3,500 + 3,000 rasd J 3 150 + 2,500 8 =) + 2,000 @ 100 - r 1,500 50 - r 1,000 + 500 0 0 2001 2002 2003 2004 2005 2006 time Share Capital ue Revaluation & Realisation mag Retained Profits — Num
Slide 15: Ay Uy
8% 5 4% | 0% -mm ", Ay Uy | i) q lA LAVA q 4% + Ae WS << == SS = -8% 1 I by SS SSS “12% 5 Pe gh gh gh dd oh OF FF OS HF oF yy oF of pe vl a rk % MIRRABOOKA Investoients Limited aad
Slide 16: Largest Acquisitions - (1/7/05-30/6/06)
Largest 5 Acquisitions - (1/7/05-30/6/06) $m ConnectEast Group 5.5 Toll Holdings (takeover of Patrick) 5.5 Macquarie Communications Infrastructure Group 2.8 West Australian Newspapers 2.4 FKP Property Group 2.2 % MIRRABOOKA Investments Limited}
Slide 17: Largest Disposals - (1/7/05 to 30/6/06)
Largest 5 Disposals - (1/7/05 to 30/6/06) $m Healthscope 11.2 Patrick Corporation (takeover by Toll) 7.3 Vision Systems 3.2 Macquarie Airports 3.1 Foodland 2.6 % MIRRABOOKA mis Limited
Slide 18: Cash position remains strong
Cash position remains strong $m 25 20 15 10 0 Jun04 Sep04 Dec04 Mar05 Jun05 Sep05 Dec05 Mar06 Jun06 @ Cash Position MIRRABOOKA * y Investoients Limited aad
Slide 19: Top Investments - August 2006
omAN Oat WD =| = i] Top 40 Investments - 31 August 2006 ota Value $m Code NUF TCL TOL BOL HSP APNG MMS BAX PPC CPU Company Name NUFARM TRANSURBAN GROUP TOLL HOLDINGS BOOM LOGISTICS HEALTHSCOPE APN 7.25% CONV NOTE MCMILLAN SHAKESPEARE BAXTER GROUP PEET COMPUTERSHARE 9.1 9.1 7.5 7.1 6.9 6.2 5.9 5.8 5.
Slide 20: Top Investments - August 2006 con't
Top 40 Investments - 31 August 2006 con't 11. CEU CONNECTEAST GROUP 5.2 2.4% 12 PRG PROGRAMMED MAINTENANCE 5.2 2.4% 13 ALN ALINTA 4.8 2.2% 14 ROC ROC OIL COMPANY 4.6 2.1% 15 IPL INCITEC PIVOT 4.5 2.1% 16 DVC DCA GROUP 4.3 2.0% 17 ORG ORIGIN ENERGY 4.3 2.0% 18 CAB CABCHARGE AUSTRALIA 4.1 1.9% 19 SHV
Slide 21: Top Investments - August 2006 con't
21 22 23 24 25 26 27 28 29 30 Top 40 Investments - 31 August 2006 con’t CEY CPB MCG BKN OSH GNS ILU PEM HDF DUE CENTENNIAL COAL CAMPBELL BROTHERS MACQUARIE COMMUNICATIONS BRADKEN OIL SEARCH GUNNS ILUKA RESOURCES PERILYA HASTINGS DIV UTILITIES FUND DIVERSIFIED UTILITY & ENERGY 3.8 3.7 3.6 3.5 3.5 3.3
Slide 22: Top Investments - August 2006 con't
Top 40 Investments - 31 August 2006 con’t 31 AEU AUST EDUCATION TRUST 3.0 1.4% 32 AUS AUSELECT 2.9 1.4% 33 OKN OAKTON 2.9 1.3% 34 ASZ ASG GROUP 2.9 1.3% 35 IRE — IRESS MARKET TECHNOLOGIES 2.9 1.3% 36 WAN WANEWSPAPERS 2.8 1.3% 37 WLL WELLCOM GROUP 2.8 1.3% 38 FKP FKP PROPERTY GROUP 2.7 1.2% 39 SSX |
Slide 23: Campbell Brothers
Campbell Brothers Operates analytical laboratories worldwide: mining and mineral exploration environmental monitoring equipment monitoring & maintenance certification. VVV Vv Manufacturer and distributor of chemicals Provides washroom, cleaning, security and pest control services. Supplier to the ho
Slide 24: Macquarie Communications
Macquarie Communications « Provides television and radio transmission: > core business is to provide transmission for the ABC and SBS plus regional broadcasters > covers 99% of the Australian population via 600 transmission sites. " Owns 54% of Aquiva: > major provider of radio and television transm
Slide 25: Major Purchases Since June 2006
Major Purchases Since 30 June 2006 New Stocks: « Austbrokers — Insurance Broker/Financial services » Paperlinx — Paper manufacturing and distribution Existing Stocks: «Australian Infrastructure Fund — Airports/Infrastructure » Macquarie Communications Group — Communications Infrastructure €. MIRRABO
Slide 26: Major Sales Since June 2006
Major Sales Since 30 June 2006 Disposed of: » Excel Coal » Macquarie Airports Reduced holding in: » Transurban » Boom Logistics
Slide 27: Outlook
Outlook Positives > W WV WwW Housing and retail sales recovering with employment, non-residential construction, resources strong Corporate balance sheets generally in good shape M&A activity has become a feature of the market Australia in the longer term benefiting from the continuing demand from Ch
Slide 28: Outlook (contd.)
Outlook (contd.) « Negatives » In general earnings came in at the lower end of expectations » Margin pressure emerging from rising labour and other input costs » Outlook comments from companies generally cautious €. MIRRABOOKA Investoie! * a nis Limited ™
Slide 29: Outlook (contd.)
Outlook (contd.) « Strategy » Still cautious. » Cash near end of September was 8%. » Look for opportunities on the back of any market correction or stock specific opportunity.
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