WAM Capital Ltd. · ASX:WAM
WAM Capital — Investor Presentation (June 2007)
18 slides from WAM Capital's investor presentation, June 2007
Slide 1: WAM Capital Limited Presentation June 2007
WAM CAPITAL LIMITED (ACN O86 SRF BOS) PRESENTATION June 2007
Slide 2: Objectives
WAM CAPITAL LTD OBJECTIVES High Real Rate of Return Preserve Capital Strong Dividend Flow
Slide 3: Performance History
PERFORMANCE HISTORY Performance History 550 500 450 400 350 % Performance 300 250 200 150 100 50 - (50) August 1999 - April 2007 WAM Capital Ltd - Gross Portfolio before all expenses, fees, taxes and dividends All Ordinaries Accumulation Index
Slide 4: WAM Capital - Dividends
DIVIDENDS WAM CAPITAL - DIVIDENDS 18 16 14 12 Special cents 10 per Ordinary share 8 6 4 2 0 1999/00 2000/01 2001/02 2002/03 2003/04 2004/05 2005/06 2006/07* * Annualised interim dividend
Slide 5: Capital Management: Option Issue
CAPITAL MANAGEMENT OPTION ISSUE Bonus 1 for 1 Issue at $1.80 Exercisable anytime up to 17 Dec 2007 Currently 17,748,619 (26%) options exercised raising $31.9m 50,462,152 options remain unexercised
Slide 6: Portfolio Structure
PORTFOLIO STRUCTURE INVESTMENT PORTFOLIO 79% of Gross Assets Research Stocks 37% Trading Stocks 42% CASH & FIXED INTEREST 21% of Gross Assets
Slide 7: Research Ranking Process
RESEARCH RANKING PROCESS Each company is ranked on: - Management - Earnings Growth - Valuation - Industry Position Emphasis is also placed on a company s free cash flow and return on equity. Identify a catalyst or event.
Slide 8: Top Trading Stocks October 2006
TOP 5 TRADING STOCKS October 2006 - % Gross % CODE Company Value Assets Cost 1 RTN Rattoon (NSX) Hldgs $2,367,823 1.9% 14.8% 2 TIM Timbercorp Ltd $2,350,600 1.9% 3.5% 3 OMP Oamps Ltd $2,304,991 1.9% 90.0% 4 OXR Oxiana Ltd $1,853,600 1.5% 7.1% 5 OFM OFM Investments Ltd $1,278,491 1.1% 24.3%
Slide 9: Top Trading Stocks May 2007
TOP 5 TRADING STOCKS May 2007 - % Gross % CODE Company Value Assets Cost 1 SEV Seven Network Ltd $4,534,600 2.6% 1.4% 2 RTN Rattoon Holdings Ltd $4,176,331 2.4% 49.1% 3 CIW Clime Investment M ment Ltd $2,962,072 1.7% 111.3% 4 SLV Sylvania Resources Ltd $2,494,000 1.4% 79.9% 5 MFI Mariner Financial L
Slide 10: Top Research Stocks October 2006
TOP 10 RESEARCH STOCKS - October 2006 - % Gross % CODE Company Value Assets Cost 1 CCP Credit Corp Group Ltd $6,293,911 5.2% 177.4% 2 RKN Reckon Ltd $4,202,664 3.5% 92.3% 3 PGA Photon Group Ltd $4,021,284 3.3% 134.3% 4 SHV Select Harvests Ltd $3,578,603 2.9% 66.7% 5 MMS McMillan Shakespeare Ltd $2,9
Slide 11: Top Research Stocks May 2007
TOP 10 RESEARCH STOCKS - May 2007 - % Gross % CODE Company Value Assets Cost 1 CCP Credit Corp Group Ltd $7,741,502 4.4% 226.3% 2 RKN Reckon Ltd $4,966,572 2.8% 123.1% 3 MLB Melbourne IT Ltd $4,386,978 2.5% 225.2% 4 REF Reverse Corp Ltd $4,175,435 2.4% 59.4% 5 MMS McMillan Shakespeare Ltd $4,123,459
Slide 12: Are Industrial Stocks Expensive or Cheap?
ARE INDUSTRIAL STOCKS EXPENSIVE OR CHEAP? ALL INDUSTRIALS PROSPECTIVE PER VALUATION GSJBW Quantitative Research 21.0 19.0 17.0 High (+1 Std Dev) 15.0 AVERAGE 13.0 11.0 Low (-1 Std Dev) 9.0 7.0 Feb-88 Feb-89 Feb-90 Feb-91 Feb-92 Feb-93 Feb-94 Feb-95 Feb-96 Feb-97 Feb-98 Feb-99 Feb-00 Feb-01 Feb-02 Fe
Slide 13: What About the Banks?
WHAT ABOUT THE BANKS? ALL INDUSTRIALS Ex Banks PROSPECTIVE PER VALUATION GSJBW Quantitative Research 27.0 25.0 23.0 High (+1 Std Dev) 21.0 19.0 17.0 AVERAGE 15.0 13.0 11.0 Low (-1 Std Dev) 9.0 7.0 Aug-89 Aug-90 Aug-91 Aug-92 Aug-93 Aug-94 Aug-95 Aug-96 Aug-97 Aug-98 Aug-99 Aug-00 Aug-01 Aug-02 Aug-0
Slide 14: Are Resources Expensive or Cheap?
ARE RESOURCES EXPENSIVE OR CHEAP? ALL RESOURCES PROSPECTIVE PER VALUATION GSJBW Quantitative Research 29.0 27.0 25.0 23.0 21.0 High (+1Std Dev) 19.0 17.0 AVERAGE 15.0 13.0 Lower (-1 Std Dev) 11.0 9.0 Aug-90 Aug-91 Aug-92 Aug-93 Aug-94 Aug-95 Aug-96 Aug-97 Aug-98 Aug-99 Aug-00 Aug-01 Aug-02 Aug-03 Au
Slide 15: Price appreciation since March 2003 trough
Price appreciation due to Analyst EPS Revisions Percentage change in ASX 200 from March-2003 trough to today Price appreciation due to Forward PER Expansion Total Price Change 300% 250% 200% 150% 264.2% 133.2% 100% 108.0% 60.5% 50% 50.5% 51.1% 23.5% 0% -10.6% -50% ASX 200 ASX 200 Industrials ASX 200
Slide 16: Price appreciation since June 2006 trough
Price appreciation due to Analyst EPS Revisions - 2007 EPS Percentage change in ASX 200 from Jun-2006 trough to today Price appreciation due to PER Expansion Total Price Change 50% 45% 40% 11.4% 35% 30% 0.9% 25% 8.0% 20% 21.7% 15% 31.7% 28.3% 10% 21.2% 5% 7.2% 0% ASX 200 ASX 200 Industrials ASX 200
Slide 17: 5 Years On - 2011
5 YEARS ON - 2011 Market $360 million Capitalisation Dividends 22.0 cents fully franked NTA $2.58
Slide 18: Questions?
QUESTIONS?