NAOS Ex-50 Opportunities Co. Ltd. · ASX:NAC
NAOS Ex-50 Opportunities — Q4 FY20 Earnings Presentation
33 slides from NAOS Ex-50 Opportunities's earnings presentation, Jul 28, 2020
Slide 1: NAOS Q4 FY20 Investor Update – Presentation Materials
For personal use only ASX Market Announcements ASX Limited 20 Bridge Street Sydney NSW 2000 28 July 2020 NAOS Q4 FY20 Investor Update – Presentation Materials Please find attached presentation materials for the Q4 FY20 Investor Update. Laura Newell Company Secretary Authorised for ASX release by the
Slide 2: FY20 Q4 Investor Webinar
FY20 Q4 INVESTOR For personal use only WEBINAR Tuesday, 28th July 2020 |11:00 am (AEST) Register Here (if you have not registered yet) Audio Dial-in +61 3 8488 8990 Access Code #421-642-018 P R E S E N T E D B Y S E B A S T I A N E VA N S & ROBERT MILLER CONVICTION. LONG TERM. ALIGNED | Copyright 20
Slide 3: 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 4: NAOS Asset Management
NAOS Asset Management Our Mission For personal use only To provide investors genuine long-term, concentrated exposure to Australian undervalued listed micro, small and mid-cap companies with an industrial focus. NAOS established its first Listed Investment Company (LIC) in 2013 with 400 shareholders
Slide 5: NAOS investment beliefs provide a competitive advantage
NAOS investment beliefs provide a competitive advantage For personal use only Value with Long Quality over Invest for the Term Growth Quantity Long Term 5+ years Performance v Ignore the Pure Exposure Liquidity Focus Index to Industrials The closed end LIC structure removes application and redemptio
Slide 6: NAOS investment portfolio financial year returns
NAOS investment portfolio financial year returns* For personal use only 30% 20% 10% 0% -10% -20% FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 NAOS Emerging Opportunities Company Limited (ASX: NCC) NAOS Ex-50 Opportunities Company Limited (ASX: NAC) NAOS Small Cap Opportunities Company Limited (ASX: NSC)
Slide 7: NAOS LIC Dividend History and Profit Reserves
NAOS LIC Dividend History and Profit Reserves Each LIC has consistently paid dividends and holds healthy profit reserves For personal use only 70 65.89 60 50 46.50 Cents per share (CPS) 40 37.57 30.90 30 26.30 20 16.70 17.86 14.80 12.50 10 0 NCC NAC NSC Total Dividends Paid (Since Inception) Total G
Slide 8: Where are we now?
Where are we now? For personal use only Significant market rebound Surge in growth stocks Government stimulus Change in spending habits CONVICTION. LONG TERM. ALIGNED | Copyright 2020 2019 NAOS Asset Management Limited 7
Slide 9: Effect of COVID-19 on Australian spending
Effect of COVID-19 on Australian spending For personal use only Spend for week ending 12 July vs normal (pre-Covid-19) week by industry* Food Delivery Furniture & Office Dept Stores Online Gambling Health Services Home Improvement Alcohol & Tobacco Industry Pet Care Taxi/Rideshare Travel Road Tolls
Slide 10: Australia's stimulus spend
Australia’s stimulus spend For personal use only Government Spending and Stimulus Spending since 2003* 700 600 500 400 300 200 100 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 Government Spend Stimulus Spend * Source: Federal Budget Papers, Mi
Slide 11: Market commentary – FY21 outlook
Market commentary – FY21 outlook For personal use only Forecasting earnings over the next 12-18 months will be extremely difficult but the variables below will be key to providing direction for estimates over this period of time • Earnings artificially manipulated by stimulus • Interest rates and in
Slide 12: Focus on the controllable
Focus on the controllable NAOS will continue to focus on the controllable to maximise risk adjusted returns For personal use only Can Control Investing with proven management teams based on value/price and stock specific fundamentals on a 3-5-year view Can’t Control Market noise and timing of short-
Slide 13: Key business & industry traits for maximising performance
Key business & industry traits for maximising performance For personal use only A growing revenue base provides companies with a number of competitive advantages such as the Industry Tailwinds Supporting ability to scale their fixed cost base and increase margins, the opportunity to reinvest to impr
Slide 14: NCC key portfolio events FY20 Q4
NCC key portfolio events FY20 Q4 HOLDING INDUSTRY Q4 UPDATE For personal use only • Trading update provided in June Commercial & • HY dividend and FY dividend announced Professional • Cash position - expected to remain strong Services (ASX: BSA) • Strong tender pipeline with existing and new clients
Slide 15: NCC overview as at June 2020
NCC overview as at 30 June 2020 For personal use only $0.90 9.12% $0.795 16.07% 9.37% 93.02% $68.4m Pre Tax Fully Franked Share Price Q4 FY20 Performance Performance Weighted NTA Dividend Yield Performance^ since Inception since Average Market p.a.^ Inception^ Capitalisation of (Total Return) the In
Slide 16: NSC key portfolio events FY20 Q4
NSC key portfolio events FY20 Q4 HOLDING INDUSTRY Q4 UPDATE For personal use only • No formal update post the 1HFY20 result • Greg Paramour appointed as a Non-Executive Director Real Estate • A listed peer has seen occupancy levels remain resilient over past 3-4 (ASX: EGH) months • FY20 update - OTW
Slide 17: NSC overview as at June 2020
NSC overview as at 30 June 2020 For personal use only $0.68 8.88% $0.45 14.71% -5.72% -14.10% $182.7m Pre Tax Fully Franked Share Price Q4 FY20 Performance Performance Weighted NTA Dividend Yield Performance^ since Inception since Average Market p.a.^ Inception^ Capitalisation of (Total Return) the
Slide 18: NAC key portfolio events FY20 Q4
NAC key portfolio events FY20 Q4 HOLDING INDUSTRY Q4 UPDATE For personal use only • Complementary acquisition of leading cloud-based regulation solution provider Itree • FY20 Trading update highlighting strong earnings growth & cash generation Software & Services • Recurring revenue now represents o
Slide 19: NAC overview as at June 2020
NAC overview as at 30 June 2020 For personal use only $1.06 6.65% $0.79 34.67% 11.06% 80.55% $298.8m Pre Tax Fully Franked Share Price Q4 FY20 Performance Performance Weighted NTA Dividend Yield Performance^ since Inception since Average Market p.a.^ Inception^ Capitalisation of (Total Return) the I
Slide 20: The benefits of LICs
The benefits of LICs For personal use only Closed-ended structure Focus on investment credentials not share liquidity No requirement to be a forced buyer or seller of companies Smooth stream of dividends Tradeable on ASX Exposure to investment classes that are hard to replicate Transpa
Slide 21: Addressing the discount to NTA
Addressing the discount to NTA At NAOS, we understand the discount to NTA can be a concern to investors. We are taking the For personal use only following steps to address the discount. Performance Maintain a focus on long term performance without deviating from the NAOS investment philosophy. Divid
Slide 22: Reasons not to invest with NAOS
Reasons not to invest with NAOS Our LICs are not for everyone. Some reasons why you may not choose to invest with NAOS For personal use only include: Concentrated portfolios Long-term investment philosophy Focus on smaller companies Benchmark unaware Industrial focus Smaller fund size
Slide 23: Outlook + Q&A
Outlook + Q&A For personal use only Thank you for your continued support. “If you own stocks like you’d own a farm or apartment house, you don’t get a quote on those every day or every week.” Warren Buffett CONVICTION. LONG TERM. ALIGNED | Copyright 2020 2019 NAOS Asset Management Limited 22
Slide 24: APPENDIX
APPENDIX For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2019 NAOS Asset Management Limited 23
Slide 25: NAOS Listed Investment Companies
NAOS Listed Investment Companies Each of our LICs target a concentrated portfolio of 0-20 companies For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2020 2019 NAOS Asset Management Limited 24
Slide 26: NAOS strong long term (5 years+) risk-adjusted returns
NAOS strong long term (5 years+) risk-adjusted returns * For personal use only NCC Investment Portfolio Risk and Performance Metrics NAC Investment Portfolio Risk and Performance Metrics 13% 13% 11.06% 11% 11% 9.37% 9% 9% 7% 7% 5.41% 5% 4.49% 5% 3.54% 2.82% 3% 2.59% 3% 2.34% 1% 1% -1% -1% -1.28% -1.
Slide 27: NAOS management alignment
NAOS management alignment NAOS Director’s shareholdings have significantly increased since the inception of each LIC For personal use only Inception Directors Shareholding (Ordinary Shares) 9,000,000 7,966,337 8,000,000 7,000,000 6,000,000 5,000,000 4,289,990 4,000,000 3,000,000 2,026,836 2,213,910
Slide 28: NAOS investment process
NAOS investment process For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2020 2019 NAOS Asset Management Limited 27
Slide 29: NAOS ESG framework
NAOS ESG framework For personal use only CONVICTION. LONG TERM. ALIGNED | Copyright 2020 2019 NAOS Asset Management Limited 28
Slide 30: Historical shareholder numbers
For personal use only Feb-13 Apr-13 Jun-13 Aug-13 Oct-13 Dec-13 Feb-14 Apr-14 Jun-14 Aug-14 Oct-14 CONVICTION. LONG TERM. ALIGNED | Copyright 2020 Dec-14 Feb-15 Apr-15 Jun-15 Aug-15 Oct-15 Dec-15 2019 NAOS Asset Management Limited Feb-16 NCC Shareholders Apr-16 Jun-16 Aug-16 Oct-16 Historical shareh
Slide 31: Investor awareness and communication
Investor awareness and communication For personal use only CEO Insights, NAOS Shareholder Monthly Investment The news and media Twice yearly Investor Newsletter, Conference Report & NTA email section of our website Roadshow Webinar subscribe via our Calls/Webinars updates, subscribe via is updated r
Slide 32: NAOS Asset Management giving back
NAOS Asset Management giving back NAOS, the management company, is proud to be supporting the following charities. For personal use only Since 2018 NAOS has donated a total of $90,000 to the following charities. ‘Golden Shouldered Parrot’ threatened ‘Reef Aid’ campaign, in partnership RFDS, dedicate
Slide 33: NAOS Directors and Team
NAOS Directors and Team OUR For personal use only DIRECTORS Sebastian Evans Warwick Evans Matthew Hyder David Rickards Sarah Williams Mark Bennett Trevor Carroll Managing Director, NAOS Chairman, NAOS Asset Director, NAOS Asset Independent Chairman & Independent Director, Director, NAOS Asset Indepe
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