Mirrabooka Investments Ltd · ASX:MIR
Mirrabooka Investments — Investor Presentation (March 2018)
27 slides from Mirrabooka Investments's investor presentation, March 2018
Slide 1: Shareholder Meetings March 2018
Shareholder Meetings March 2018
Slide 2: Disclaimer
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, no warranty (express or
Slide 3: Introduction
Introduction Shareholder Meetings March 2018
Slide 4: Labor Party have announced the ending of refundability of franking credits
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-for-profits and most o
Slide 5: Labor Party have announced the ending of refundability of franking credits
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 shareholders will be considerab
Slide 6: Overview of Mirrabooka and Recent Financial Performance
Overview of Mirrabooka andCompany Recent Financial Performance Shareholder Meetings March 2018
Slide 7: Mirrabooka's Investment Approach
Mirrabooka’s Investment Approach Small and Mid Cap Listed Companies in Australia and New Zealand Shareholder Meetings March 2018 Page 7
Slide 8: Management of the Portfolio
Management of the Portfolio Shareholder Meetings March 2018 Page 8
Slide 9: Half Year Financial Summary – December 2017
Half Year Financial Summary – 31 December 2017 Shareholder Meetings March 2018 Page 9
Slide 10: Changes to Tax Legislation – Franking Credits
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 pay tax at 30%, and fran
Slide 11: Share Price is at a 9% Premium to Net Asset Backing
Share Price is at a 9% Premium to Net Asset Backing Shareholder Meetings March 2018 Page 11
Slide 12: Cumulative Share Price Return Including Franking Credits – 10 Years to 28 February 2018
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 benefit of franking cre
Slide 13: Market and the Portfolio
Market and the Portfolio Shareholder Meetings March 2018
Slide 14: Resources Have Been Very Strong in the Small and Mid Cap Sectors
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 15: Mirrabooka's Portfolio – Per Annum Returns to February 2018
Mirrabooka’s Portfolio – Per Annum Returns to 28 February 2018, Including Franking Credits* Shareholder Meetings March 2018 Page 15
Slide 16: Small and Mid Cap Industrial Sector Valuations Remain High
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 17: Stocks at 'High Multiples' Trading at Average Forward P/E 43% Above 15-year Average
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 18: Very Good Performance From Holdings Added Over the Past 2 Years
We have had Some Very Good Performance From Holdings Added Over the Past 2 Years These companies have delivered positive 2.8% of absolute portfolio performance Not owning A2 Milk has detracted 3.2% from absolute portfolio performance Shareholder Meetings March 2018 Page 18
Slide 19: Portfolio at February 2018 (Excluding Cash)
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 Freedom Foods Group 2.7
Slide 20: Portfolio at February 2018 (Excluding Cash) continued
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 CYBG* 2.0% 18 Incitec
Slide 21: Major Portfolio Activity – Financial Year to Date
Major Portfolio Activity – Financial Year to Date Buying New Selling Complete Sale Complete Sale Shareholder Meetings March 2018 Page 21
Slide 22: Featured Holdings – Boral
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 Australia and the US. •
Slide 23: Featured Holdings – Webjet
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 management team has signi
Slide 24: Outlook
Outlook Shareholder Meetings March 2018
Slide 25: Recent Reporting Season Summary – Small and Mid Caps
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 growth momentum contin
Slide 26: Market Comments
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. Shareholder Meetings
Slide 27: Mirrabooka Investments Limited
MIRRABOOKA * Investments Limited
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