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Westoz Investment Company
October 2018
Disclaimer
2
Disclaimer & Disclosure
Westoz 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.
2
Westoz Investment Company Difference
3
Western Australian based and investment focused
Generated $156m of dividends and franking credits
Investment Manager aligned with investors
Consistent investment team
3
Westoz Investment Company (WIC.ASX)
4
Snapshot, 30th Sept. 2018
Market capitalisation $153m
Last price $1.15
NTA (pre unreal. tax) $1.28
Share price discount 10%
Fully franked dividend 6cps
Fully franked yield 5.2%
Gross income yield 7.5%
NSW 18%
VIC 18%
QLD 3%
Other 3%
SA 4%
WA 27%
EUROZ 27%
Shareholder Composition
Source: Westoz Funds Management (WFM), IRESS
Performance
5
Return* 30
th Sept. 2018
FY2019
1Yr
3Yrs p.a.
10Yrs p.a.
Inception p.a.
Investment Portfolio 2.1% 28.3% 22.5% 8.4% 13.7%
ASX Small Ordinaries Acc. 1.1% 20.3% 17.0% 4.8% 4.9%
Bloomberg Bank Bill Index 0.5% 1.9% 2.0% 3.2% 4.0%
*Returns above are before expenses, fees and taxes
Source: WFM, IRESS
Payout – Cumulative Dividend Returns
6
90c
39c
0c
20c
40c
60c
80c
100c
120c
140c
2006 2008 2010 2012 2014 2016 2018
Dividends Franking Credits
$1.29 of income returned to shareholders
Source: WFM
Payout vs Price
7
1.6%
4.0%
7.4%
0% 4% 8%
P
O
N
M
L
K
J
I
H
G
F
WIC
E
D
C
B
A
Yield on NTA
-16.8%
-2.3%
20.1%
-20% 0% 20%
P
O
N
M
L
K
J
I
H
G
F
WIC
E
D
C
B
A
Premium/(Discount)
Strong relationship between yield on NTA and share price vs NTA
Source: ASX Investment Products Monthly Update – August 2018
WA Growth: Economy Entering Uptrend
Source: ABS 8
-10%
-5%
0%
5%
10%
15%
20%
Jun-00 Jun-03 Jun-06 Jun-09 Jun-12 Jun-15 Jun-18
WA State Final Demand – Annual Change (Trend)
WA Growth: Final Demand Components
Source: ABS 9
Household consumption
Government consumption
Private capital formation
Public capital formation
$0bn
$40bn
$80bn
$120bn
Jun 00 Jun 03 Jun 06 Jun 09 Jun 12 Jun 15 Jun 18
State Final Demand Components - rolling 12m (SA)
WA Growth: Low base
Source: ABS, WFM 10
NSW
WA
VIC
QLD
-20,000
20,000
60,000
100,000
140,000
Mar-1998 Mar-2002 Mar-2006 Mar-2010 Mar-2014 Mar-2018
Net Migration, rolling 12m
WA Growth: Capacity
Source: ABS 11
Wages
House Prices
80
100
120
140
160
180
200
Mar 10 Mar 14 Mar 18
NSW
Wages
House Prices
80
100
120
140
160
180
200
Mar 10 Mar 14 Mar 18
WA
WA Growth: Confidence
Source: CCIWA 12
WA Growth: Confidence driver
Source: ABS 13
+27%
-40%
-20%
0%
20%
40%
Aug-2012 Aug-2014 Aug-2016 Aug-2018
Job Vacancies - Annual Change
Investment Considerations
14
People
Capital
Cash flow
Value
Australis Oil & Gas (ATS.ASX)
Source: IRESS, WFM 15
People
Experience: Aurora Oil & Gas
Equity: Board & Management 11%
Capital
Net cash, undrawn facilities
Producing assets, land holdings
Cash flow
Cash flow from producing asset
Cash flow growth potential
Value
Information to assess
Value enhancement catalysts
10c
20c
30c
40c
50c
60c
Jul-2016 Jul-2017 Jul-2018
ATS Share Price
Portfolio Holdings
16
Westoz Sept 18
Australis Oil & Gas 13%
Cedar Woods Properties 9%
Finbar Group 6%
Ausdrill 6%
Macmahon Holdings 5%
Cooper Energy 5%
Evolution Mining 5%
Mount Gibson Iron 4%
Independence Group 4%
Southern Cross Electrical 4%
Austal 3%
Regis Resources 3%
Other 22%
Cash 11%
Cash 11%
Energy 19%
Financials 2%
Gold 13%
Industrials 24%
Materials 16%
Real Estate
15%
Shareholder Communications
Weekly Shareholder Email Weekly NTA Disclosure Economic Updates Monthly Portfolio Report Regular Shareholder Briefings Subscribe : [email protected]
Contacts
Dermot Woods Executive Director (08) 9321 7203 [email protected]
Tim Banfield Head of Distribution (08) 9321 7683 [email protected]
Jaime Underdown Chief Operating Officer (08) 9321 7682 [email protected]