westoz investment company limited august 2018 for personal ... · wic fy 2018 results 6 strong...
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Westoz Investment Company LimitedAugust 2018
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Disclaimer
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Disclaimer & DisclosureWestoz Investment Company Limited ACN 113 332 942 (WIC) and Westoz Funds Management Pty Ltd (WFM) AFSL 85607, their related entities 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 implied) is made as to the accuracy, completeness or reliability of any statements, estimates or opinions or other information contained in these materials (any of which may change without notice) and to the maximum extent permitted by law, the Disclosers disclaim all liability and responsibility (including, without limitation, any liability arising from fault or negligence on the part of any or all of the Disclosers) for any direct or indirect loss or damage which may be suffered by any recipient through relying on anything contained in or omitted from these materials. This information has been prepared and provided by WIC and WFM. To the extent that it includes any financial product advice, the advice is of a general nature only and does not take into account any individual’s objectives, financial situation or particular needs. Before making an investment decision an individual should assess whether it meets their own needs and consult a financial advisor. Past performance is not an indication of future performance.
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Westoz Funds Management Difference
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Western Australian based and investment focused
Paid $156m of dividends and franking credits
Manager aligned with investors
Stable investment process in place for 14 years
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Westoz Investment Company (WIC.ASX)
Source: IRESS, Westoz Funds Management. WIC shares listed on ASX in September 2009. 4
Company
Market Cap $153m
Last Price $1.15
Net Assets Per Share (July) $1.26
Share price discount 9%
Shares on issue 133m
Options ($1.06 strike, Aug 19 expiry) 9m
Shareholders
Euroz Limited 27%
Wilson Asset Management 8%
Ice Cold Investments 7%
Number of shareholders 1,597
-60%
-20%
20%
60%
100%
140%
180%
Jun'05 Jun'07 Jun'09 Jun'11 Jun'13 Jun'15 Jun'17
Total Shareholder Return
WIC.ASX Small Ords. Acc.
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ASX in 2018 – Everyone a Winner (Except TLS)
Source: IRESS, Westoz Funds Management 5
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
Jun-17 Sep-17 Dec-17 Mar-18 Jun-18
ASX Sectors – FY 2018
All Ords Small Ords Telco Financials Resources
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WIC FY 2018 Results
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Strong portfolio return; up 39.1% before allowance for fees and taxes
Dividend of 6.0 cents per share paid; 6.0 cents per share targeted for FY19
After all fees, taxes and dividends, NTA increases from 105.6 cents to 122.5 cents
Shareholder return of 27.6% from price gain and fully franked dividends.
Dividend capacity enhanced through further increase in profit reserves and anticipated tax payments 50
60
70
80
90
100
110
120
130
140
Jun-17 Sep Dec Mar Jun-18
After Tax NTA and Dividends
NTA DivFor
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Payout – WIC Dividend Returns
Source: Westoz Funds Management 7
90c
39c
0c
20c
40c
60c
80c
100c
120c
140c
2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018
Cumulative Dividends & Franking Credits
Dividends Franking Credits
$156 mil of dividends paid
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Current Market Conditions
Solid Global Economic Growth
Rate Normalisation
WA Economic Growth
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Synchronised Global Economic Growth
Source: IMF, Factset 9
2%
3%
4%
5%
6%
7%
8%
0%
1%
2%
3%
4%
Dec-2011 Dec-2013 Dec-2015 Dec-2017 Dec-2019
GDP Growth - IMF Forecasts
Advanced Economies Developing Economies
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Global Trade Sentiment
Source: Factset 10
44
46
48
50
52
54
56
58
40
45
50
55
60
65
70
Jan 10 Jan 12 Jan 14 Jan 16 Jan 18
Manufacturing Sentiment Surveys
USA ISM (LHS) China PMI (RHS)
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Interest Rate Normalisation
Source: IRESS 11
0%
1%
2%
3%
4%
5%
6%
7%
8%
Feb-1998 Feb-2002 Feb-2006 Feb-2010 Feb-2014 Feb-2018
Interest Rate Cycle
US 10Y Bond RateRBA Cash Rate
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WA Growth: Economy Entering Uptrend
Source: ABS 12
-10%
-5%
0%
5%
10%
15%
20%
Mar-00 Mar-03 Mar-06 Mar-09 Mar-12 Mar-15 Mar-18
WA State Final Demand - year on year change (Trend)
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WA Growth: Final Demand Components
Source: ABS 13
Household Expenditure
Government Expenditure
Private Capex.
Public Capex.$0bn
$20bn
$40bn
$60bn
$80bn
$100bn
$120bn
Mar-2000 Mar-2002 Mar-2004 Mar-2006 Mar-2008 Mar-2010 Mar-2012 Mar-2014 Mar-2016 Mar-2018
State Final Demand Components - rolling 12m expenditure (SA)
Source: ABS
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Investment Considerations
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People
Capital
Cash flow
Value
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FY2018 Winner & Loser
Source: IRESS, Westoz Funds Management 15
0
50
100
150
200
250
300
Jun'17 Sep'17 Dec'17 Mar'18 Jun'18
NWH ORRFor
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WIC Current Portfolio
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Westoz July 18
Australis Oil & Gas 14%
Cedar Woods Properties 9%
Finbar Group 7%
Cooper Energy 5%
Evolution Mining 5%
Macmahon Holdings 4%
Mount Gibson Iron 4%
Southern Cross Elec Eng 4%
Austal 3%
NRW Holdings 3%
Ausdrill 3%
Orecorp 3%
West African Resources 3%
Other (12 positions) 13%
Short Positions -5%
Cash 25%
Cash25%
Energy21%
Financials3%
Gold8%
Industrials21%
Materials6%
Real Estate 16%
Sector Allocation
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Shareholder Communications
Weekly Email Update
Weekly NTA Disclosure
Economic Updates
Monthly Portfolio reports to ASX
Regular Shareholder Briefings
Dynamic website
Subscribe by sending an email to: [email protected]
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Contacts
Dermot WoodsExecutive Director(08) 9321 [email protected]
Tim BanfieldHead of Distribution(08) 9321 [email protected]
Jaime UnderdownChief Operating Officer(08) 9321 [email protected]
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