NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — Q4 FY2018 Earnings Presentation
30 slides from NAOS Ex-50 Opportunities's earnings presentation, Jul 24, 2018
Slide 1: Quarterly Conference Call Q4 FY2018
For personal use only QUARTERLY CONFERENCE CALL Q4 FY2018 TUESDAY, 24 JULY 2018 10:30 AM AEST WITHIN AUSTRALIA: 1300 289 804 OUTSIDE AUSTRALIA: +61 3 8687 0635 GUEST ACCESS CODE: 1084 2873 #
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only This material has been prepared by NAOS Asset Management Limited (ABN 23 107 624 126, AFSL 273529) (NAOS) for general information purposes only and must not be construed as investment advice. It does not constitute an offer to purchase any security or fina
Slide 3: NAOS Investment Beliefs
NAOS INVESTMENT BELIEFS For personal use only NAOS Asset Management is a specialist fund manager providing genuine, concentrated exposure to Australian listed industrial companies outside of the ASX50. With a proven performance track record, NAOS maintains a focus on protecting capital and aims to d
Slide 4: NAOS Listed Investment Companies
NAOS LISTED INVESTMENT COMPANIES For personal use only NAOS EMERGING NAOS SMALL CAP NAOS EX-50 OPPORTUNITIES OPPORTUNITIES OPPORTUNITIES COMPANY LIMITED COMPANY LIMITED COMPANY LIMITED ASX: NCC ASX: NSC ASX: NAC Micro Cap Small Cap Mid Cap Industrial Companies Industrial Companies Industrial Compani
Slide 5: 1. Review
1. Review For personal use only “The real big money in the investment world, the dependable money, the safe money, is made not betting the things that have gone up a lot will continue, but on betting the things that have gone down a lot and become unloved will rebound”. Howard Marks
Slide 6: NTA & Performance as at June 2018
NTA & PERFORMANCE AS AT 30 JUNE 2018 For personal use only Q4 FY18 Q4 FY18 Inception Pre Tax NTA Performance Performance Performance p.a. Benchmark NCC* $1.28 -2.93% +7.67% +16.09% NSC^ $0.95 -3.29% +7.67% -3.44% nom. NAC* $1.11 -1.47% +1.12% +15.21% *Investment performance is post all operating exp
Slide 7: Q4 FY18 Update (NCC)
Q4 FY18 UPDATE ASX: NCC AS AT 30 JUNE 2018 For personal use only • FY18 portfolio performance +7.13% • 70% of the portfolio represented by top 5 holdings ASX: BSA ASX: CGR ASX: SND • June downgrade relating • Acquisition progressing • Provided revenue to non-core HVAC ahead of schedule, guidance of
Slide 8: Looking Forward (NCC)
LOOKING FOWARD ASX: NCC AS AT 30 JUNE 2018 For personal use only • 9 positions • Portfolio cash weight +0.12% ASX: COG ASX: WNR ASX: EGG FY18 Result on 28th August • The main focus of the FY18 Result on 16th August September result will be • Integration of the the financial performance • Over the pa
Slide 9: Q4 FY18 Update (NSC)
Q4 FY18 UPDATE ASX: NSC AS AT 30 JUNE 2018 For personal use only • Performance since inception -3.44%. • 60% of the portfolio represented by top 5 holdings ASX: MNF ASX: JHC ASX: TOT • Recently announced the • Announced full • Provided financial acquisition of a accreditation from ACQA guidance for
Slide 10: Looking Forward (NSC)
LOOKING FOWARD ASX: NSC AS AT 30 JUNE 2018 For personal use only • 11 positions • Portfolio cash weight +7.97%. ASX: MNF ASX: JHC ASX: MTO FY18 Result on 28th August FY18 Results on 27th August FY18 Results TBA • Update on the integration • Focus on the organic • Update on the integration of the rec
Slide 11: Q4 FY18 Update (NAC)
Q4 FY18 UPDATE ASX: NAC AS AT 30 JUNE 2018 For personal use only • FY18 portfolio performance +10.25% • 60% of the portfolio represented by top 5 holdings ASX: ELD ASX: MNF ASX: SIQ • A very eventful quarter • Recently announced the • During FY18 SIQ raised with release of their half acquisition of
Slide 12: Looking Forward (NAC)
LOOKING FOWARD ASX: NAC AS AT 30 JUNE 2018 For personal use only • 11 positions • Portfolio cash weight +6.63% ASX: SIQ ASX: HLO ASX: REH FY18 Result 22nd August FY18 Result 21st August FY18 Result 31st August • Update on operational • Update on recent • Progress on integration efficiencies and marg
Slide 13: 2. Market Review
2. Market Review For personal use only “The light can at any time go from green to red without pausing at yellow.” Berkshire Hathaway, 2017 Letter to Shareholders
Slide 14: FY18 Market Review: Momentum vs. Value
FY18 MARKET REVIEW For personal use only Momentum vs. Value – Industrials vs. Natural Resources FY18 ASX-200 Returns 10.00% 9.00% 8.00% 7.00% 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% High EPS Growth Stocks High FCF Yield Stocks Source: UBS Report June 2018 CONVICTION. LONG TERM. ALIGNED | Copyright
Slide 15: FY18 Market Review: 1 Year Total Return
FY18 MARKET REVIEW For personal use only Momentum vs. Value – Industrials vs. Natural Resources 1 Year Total Return 60.00% 50.00% 40.00% 30.00% 20.00% 10.00% 0.00% 30/06/17 31/07/17 31/08/17 30/09/17 31/10/17 30/11/17 31/12/17 31/01/18 28/02/18 31/03/18 30/04/18 31/05/18 -10.00% S&P/ASX Small Resour
Slide 16: FY18 Market Review: Small Industrials vs ASX-200 Industrials
FY18 MARKET REVIEW For personal use only ASX Small Industrials Accumulation Index +18.30% vs. ASX-200 Industrials Accumulation Index +7.80% Holding Name ASX Code Industry FY18 Return Emeco Holdings EHL Mining Services 268% Appen Limited APX Software and Services 235% Lovisa Holdings Ltd LOV Retail 2
Slide 17: Macro Outlook: US Yield Curve
MACRO OUTLOOK For personal use only US Yield Curve 2 Year Bonds vs. 10 Year Bonds Mid Price (basis points) 300 250 200 150 100 50 0 07/1998 07/2000 07/2002 07/2004 07/2006 07/2008 07/2010 07/2012 07/2014 07/2016 07/2018 -50 -100 Source: Bloomberg Data July 2018 CONVICTION. LONG TERM. ALIGNED | Copyr
Slide 18: Macro Outlook: US Yields
MACRO OUTLOOK For personal use only US 10 Year Yields Last Price (basis points) 700 600 500 400 300 200 100 0 07/1998 07/2000 07/2002 07/2004 07/2006 07/2008 07/2010 07/2012 07/2014 07/2016 07/2018 Source: Bloomberg Data July 2018 CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management
Slide 19: Pockets of Opportunity: Major Transport Infrastructure Projects
POCKETS OF OPPORTUNITY For personal use only Major Transport Infrastructure Projects – Australia Source: Macromonitor – Australian Construction Outlook Overview, June 2018 CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Limited 19
Slide 20: Appendix
Appendix For personal use only “Betting on people can sometimes be more certain than betting on physical assets.“ Berkshire Hathaway, 2017 Letter to Shareholders
Slide 21: NCC Dividend History
NCC DIVIDEND HISTORY AS AT 30 JUNE 2018 For personal use only ASX: NCC Fully Franked Dividend Profile $0.08 $0.0700 $0.0675 8.25% 100% $0.07 $0.0625 Gross Dividend Franking $0.0575 Yield $0.06 $0.05 $0.0375 $14m 3.75c $0.04 Profit Fully Franked $0.0250 Reserves $0.03 Interim Dividend $0.02 2H FY13 F
Slide 22: NSC Dividend History
NSC DIVIDEND HISTORY AS AT 30 JUNE 2018 For personal use only ASX: NSC Fully Franked Dividend Profile $0.05 2.50c 100% $0.04 Fully Franked Franking Interim Dividend $0.03 $0.0250 $0.02 $18.5m Profit $0.01 Reserves $0.00 1H FY18 CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Li
Slide 23: NAC Dividend History
NAC DIVIDEND HISTORY AS AT 30 JUNE 2018 For personal use only ASX: NAC Fully Franked Dividend Profile $0.06 $0.0500 7.85% 100% $0.05 $0.0475 Gross Dividend Franking Yield $0.04 $0.03 $0.0275 $0.0200 $0.02 $5.6m 2.75c Profit Fully Franked $0.01 Reserves Dividend $0.00 2H FY15 FY16 FY17 1H FY18 CONVIC
Slide 24: NAOS Investment Process
NAOS INVESTMENT PROCESS For personal use only Conviction Absolute Long Short Investing | Copyright 2018 NAOS Asset Management Limited 24
Slide 25: NAOS ESG Framework
NAOS ESG FRAMEWORK For personal use only Conviction Absolute Long Short Investing | Copyright 2018 NAOS Asset Management Limited 25
Slide 26: 3. Keeping up to Date
3. Keeping For personal use only up to Date “You don't have to be brilliant, only a little bit wiser than the other guys, on average, for a long time.“ Charlie Munger
Slide 27: National Investor Roadshows
NATIONAL INVESTOR ROADSHOWS For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2018 NAOS Asset Management Limited 27
Slide 28: Investor Awareness and Communication
INVESTOR AWARENESS AND COMMUNICATION 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 subscribe via our subscribe via our updates, subs
Slide 29: NAOS Team
NAOS TEAM For personal use only OUR DIRECTORS Warwick Evans Mark Bennett David Rickards Trevor Carroll David O’Halloran Sebastian Evans Chairman, NAOS Asset Director, NAOS Asset Chairman & Director, Chairman NSC Director, NAOS Asset Managing Director, NAOS Asset Management Limited & Management Limit
Slide 30: Q&A
For personal use only Q&A THANK YOU FOR YOUR SUPPORT
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