NAOS Emerging Opportunities Co. Ltd. · ASX:NCC
NAOS Emerging Opportunities — NAOS Absolute Opportunities Company — Q4 FY2017 Earnings Presentation
23 slides from NAOS Emerging Opportunities's earnings presentation, Jul 19, 2017
Slide 1: Quarterly Investor Briefing 4th Quarter FY-2017
QUARTERLY INVESTOR BRIEFING 4TH QUARTER FY-2017 NAOS Absolute Opportunities Company Limited (ASX: NAC)
Slide 2: Call Details
CALL DETAILS 1. Date Wednesday 19 July 2017 2. Time 9.30am AEST 3. Telephone Within Australia: 1800 857 029 Outside Australia: +61 3 8687 0635 New Zealand: 0800 449 288 4. Guest Access Code 1084 2873# 5. Questions Please email all questions to enquiries@naos.com.au prior to the allotted call time Ab
Slide 3: NAC Agenda
NAC AGENDA 1. NAC Q4 FY17 REVIEW • Performance & Risk Summary • Stock Contribution (Since Inception) • Return Profile, Positive v Negative Return Months • Capital Analysis: Addressing the Discount • Dividend Profile • Director/Shareholder Alignment • Historical Net Equity & Cash Exposure • Industry/
Slide 4: 1. NAC Review
1. NAC Review “ESTABLISHING AND MAINTAINING AN UNCONVENTIONAL INVESTMENT PROFILE REQUIRES ACCEPTANCE OF UNCOMFORTABLY IDIOSYNCRATIC PORTFOLIOS, WHICH FREQUENTLY APPEAR DOWNRIGHT IMPRUDENT IN THE EYES OF CONVENTIONAL WISDOM.” – DAVID SWENSEN Absolute Long Term Investing | Copyright 2017 NAOS Asset Ma
Slide 5: Performance & Portfolio Characteristics Summary as at 30 June 2017
NAC: PERFORMANCE & PORTFOLIO CHARACTERISTICS SUMMARY AS AT 30 JUNE 2017 2 Year 1 Month 3 Month 1 Year Inception (p.a.) Inception (Nom.) (p.a.) NAC Investment Portfolio +0.65% -2.26% +6.69% +17.83% +17.15% +51.66% Performance* Benchmark (RBA Cash Rate + 250bps) +0.35% +1.07% +4.39% +4.84% +4.73% +12.
Slide 6: Positive Stock Attribution Summary (Since Inception)
NAC: POSITIVE STOCK ATTRIBUTION SUMMARY (SINCE INCEPTION) AS AT 30 JUNE 2017 Positive Stock Contribution Analysis (Contribution is what has attributed to NAC’s performance since Inception of 12 November 2014) Below is a table listing the top positive contributors to NAC’s total return since inceptio
Slide 7: Return Profile, Positive v Negative Months
NAC: RETURN PROFILE, POSITIVE V NEGATIVE MONTHS AS AT 30 JUNE 2017 9.00% 7.00% 5.00% 3.00% 1.00% -1.00% -3.00% Gross Return Absolute Long Term Investing | Copyright 2017 NAOS Asset Management Limited 7
Slide 8: Capital Analysis
NAC: CAPITAL ANALYSIS AS AT 30 JUNE 2017 NTA ANALYSIS Pre Tax - $1.08 Post Tax & Pre Unrealised Gains Tax – $1.10 Post Tax - $1.07 Share Price $1.035 Share Price (Discount)/Premium to Pre-Tax NTA (-4.17%) Fully Franked Dividend Yield 4.83% Shares on Issue 52,536,889 Directors Shareholding 6,693,760
Slide 9: Historical Fully Franked Dividend Profile
NAC: HISTORICAL FULLY FRANKED DIVIDEND PROFILE AS AT 30 JUNE 2017 $0.05 $0.0475 $0.05 $0.04 $0.04 $0.03 $0.0200 $0.03 $0.0250 $0.02 $0.02 $0.01 $0.01 Interim $0.00 FY15 Maiden FY16 1H FY17 Absolute Long Term Investing | Copyright 2017 NAOS Asset Management Limited 9
Slide 10: Directors Increasing Alignment with Shareholders Since IPO
NAC: DIRECTORS INCREASING ALIGNMENT WITH SHAREHOLDERS SINCE IPO AS AT 30 JUNE 2017 5,000,000 4,934,296 4,500,000 4,000,000 3,500,000 3,000,000 2,500,000 2,000,000 1,500,000 1,259,832 200,000 499,632 1,000,000 500,000 500,000 137,958 0 David Rickards* Warwick Evans* Sebastian Evans*^ IPO Shareholding
Slide 11: Portfolio Structure: Historical Net Equity and Cash Weightings
NAC: PORTFOLIO STRUCTURE HISTORICAL NET EQUITY AND CASH WEIGHTINGS AS AT 30 JUNE 2017 Net Equity Weighting Cash and Cash Equivalents Weighting Short Exposure Income Instruments 120% 100% 86.97% 80% 60% 40% 20% 13.03% 0% 0.00% -20% -18.79% -40% -60% Absolute Long Term Investing | Copyright 2017 NAOS
Slide 12: Portfolio Structure: Net Industry Exposure
NAC: PORTFOLIO STRUCTURE AS AT 30 JUNE 2017 Net Industry Exposure Financials 18.50% Commercial Services 17.77% Media 16.60% Telecommunications 14.36% Software 12.35% Materials 4.42% Food & Beverage 1.88% Capital Goods 1.77% Health Care 1.61% Pharmaceuticals -2.29% -10% 0% 10% 20% Absolute Long Term
Slide 13: Company Meetings
NAC: COMPANY MEETINGS The NAOS investment philosophy is based around the belief that for a company to succeed and generate strong returns for shareholders it must be led by a motivated, proven and experienced management team. The NAOS’ Investment Team has direct contact with many listed and unlisted
Slide 14: 2. Market Outlook
2. Market Outlook “THE MARKET CAN REMAIN IRRATIONAL LONGER THAN YOU CAN REMAIN SOLVENT.” – JOHN MAYNARD KEYNES Absolute Long Term Investing | Copyright 2017 NAOS Asset Management Limited 14
Slide 15: NAC Market Outlook: FY2017 Year in Review
NAC MARKET OUTLOOK: FY2017 YEAR IN REVIEW Notable Positive Outcomes - Gentrak Group (ASX: GTK) – One of the leading positive contributors to the NAC portfolio, GTK was able to exhibit excellent cash flow conversion (all R&D expensed), strong organic revenue growth of +10% p.a., and executed on a key
Slide 16: NAC Market Outlook: Market Commentary
NAC MARKET OUTLOOK: MARKET COMMENTARY Notable Change in Industry Performance & Divergence - Over the past quarter there has been increased focus on the “reflation” trade and what effect the potential for higher inflation and therefore higher interest rates will have on specific industries. - The cha
Slide 17: NAC Market Outlook: Market Commentary
NAC MARKET OUTLOOK: MARKET COMMENTARY Absolute Long Term Investing | Copyright 2017 NAOS Asset Management Limited 17
Slide 18: NAC Market Outlook: Market Commentary
NAC MARKET OUTLOOK: MARKET COMMENTARY Absolute Long Term Investing | Copyright 2017 NAOS Asset Management Limited 18
Slide 19: Market Outlook: NAOS Investment Philosophy
MARKET OUTLOOK: NAOS INVESTMENT PHILOSOPHY Companies valued based on todays Balance sheet flat earnings flexibility profile but not tomorrows growing earnings base Proven management Ability to drive teams with strong revenue and/or shareholder margin growth alignment Existing Core revenue streams co
Slide 20: 3. Keeping Up To Date
3. Keeping Up To Date “SUPERIOR RESULTS DON’T COME FROM BUYING HIGH QUALITY ASSETS, BUT FROM BUYING ASSETS – REGARDLESS OF QUALITY – FOR LESS THAN THEY’RE WORTH. IT’S ESSENTIAL TO UNDERSTAND THE DIFFERENCE BETWEEN BUYING GOOD THINGS AND BUYING THINGS WELL.” – HOWARD MARKS Absolute Long Term Investin
Slide 21: Investor Awareness and Communications
INVESTOR AWARENESS AND COMMUNICATIONS 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 register subscribe via our subscribe via our updates, subscribe update
Slide 22: The NAOS Team and Directors
THE NAOS TEAM AND DIRECTORS Sebastian Evans Richard Preedy Ben Rundle Chief Investment Officer/ Chief Financial & Portfolio Manager Managing Director Operating Officer Warwick David Rickards Sebastian Evans Director Evans Independent Director Chairman Robert Miller Jeffrey Kim Julia Portfolio Manage
Slide 23: Disclaimer
DISCLAIMER This presentation has been prepared by NAOS Asset Management Limited (ABN 23 107 624 126, AFSL 273529, “NAML”). The purpose of this presentation is to provide information only; any other use other than informational purposes is disclaimed. The information provided is given in summary form
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