NGE Capital : Investor Presentation - January 2019

NGE Capital Limited (ASX:NGE)

Investor presentation

31 January 2019

Disclaimer

The information in this presentation is in summary form and should not be relied upon as a complete and accurate representation of NGE Capital Limited (NGE Capital) and or its various business activities. While management of NGE Capital have taken every effort to ensure the accuracy of the material in the presentation, the presentation is provided for information purposes only. No representation or warranty, express or implied, is or will be made by NGE Capital or its officers, directors, employees or advisers as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in, or implied by, this presentation, or as to the reasonableness of any assumption, forecasts, prospects or returns contained in, or implied by, this presentation or any part of it. The presentation may include information derived from third party sources that has not been independently verified.

This presentation does not constitute investment, legal, taxation or other advice and the presentation does not take into account your investment objectives, financial situation nor particular needs. You are responsible for forming your own opinions and conclusions on such matters and should make your own independent assessment of the information contained in, or implied by, this presentation and seek independent professional advice in relation to such information and any action taken on the basis of the information. This document is not, and does not constitute advice or an offer to sell or the solicitation, invitation or recommendation to purchase any securities that are referred to in this document.

This presentation should be read in conjunction with the latest Annual Report of NGE Capital and other periodic and continuous disclosure announcements that have been lodged by NGE Capital with the Australian Securities Exchange. To the maximum extent permitted by law, NGE Capital, its related bodies corporate, respective directors, officers, employees, agents and advisors, will not be liable in any way for any loss or damage suffered from the use of information contained in this document.

Past performance is not a reliable indicator of future performance.

This presentation contains certain forward-looking statements with respect to the financial condition, results of operations and business of NGE Capital and certain plans and objectives of the management of NGE Capital. Forward-looking statements can generally be identified by the use of words such as 'project', 'foresee', 'plan', 'expect', 'aim', 'intend', 'anticipate', 'believe', 'estimate', 'may', 'should', 'will' or similar expressions.

Any forecast or other forward-looking statement contained in this presentation involves known and unknown risks and uncertainties and may involve significant elements of subjective judgment and assumptions as to future events which may or may not be correct. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of NGE Capital, and may cause actual results to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements.

The forward-looking statements included in this presentation involve subjective judgment and analysis and are subject to significant business, economic and competitive uncertainties, risks and contingencies, many of which are outside the control of, and are unknown to NGE Capital. Given these uncertainties, you are cautioned not to place undue reliance on forward-looking statements. These forward-looking statements are based on information available to us as of the date of this presentation. Except as required by law or regulation (including the ASX Listing Rules) we undertake no obligation to update these forward-looking statements.

This presentation is provided for informational purposes only and is subject to change without notice. Subject to any obligations under applicable laws, regulations or securities exchange listing rules, NGE Capital disclaims any obligation or undertaking to release any updates or revisions to the presentation to reflect any change in expectations or assumptions. Nothing in the presentation should be interpreted to mean that future earnings per share of NGE Capital will necessarily match or exceed its historical published earnings per share, or that there has been no change in the affairs of NGE Capital since the date of the presentation.

No part of the presentation may be distributed, disseminated or used elsewhere in any context without NGE Capital's prior written consent.

References to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated.

Company snapshot

•  NGE Capital Limited (NGE or Company) is a Listed Investment Company (LIC) which allows investors to invest in a concentrated, high conviction, professionally managed portfolio of financial assets.

•  Focus primarily on listed ASX and international equities.

•  Aim to generate strong risk-adjusted returns over the medium to long term.

•  Internally managed by Chief Investment Officer David Lamm and Portfolio Manager Adam Saunders.

•  Significant Board shareholding in the Company: backing our investment decisions, and aligned with shareholders.

Board of directors

David Lamm	Chief Investment Officer
Adam Saunders	Portfolio Manager
Ilan Rimer	Non-Executive Director

Summary as at 31 December 2018

Ticker	ASX:NGE
Share price $	0.580
Shares oustanding m	37.19
Market cap $m	21.6
NTA per share before tax $	0.765
NTA per share after tax $	0.819
NTA before tax $m	28.5
NTA after tax $m	30.5

Top shareholders

(1)Entity controlled by David Lamm.

Kentgrove Capital Pty Ltd (1)	27.2%
Noontide Investments Ltd	5.7%
Wallbay Pty Ltd	5.6%

Performance

Growth in NTA per share

Since inception (1)FY2017

FY2018

(p.a.)

(cum.)

26.8%

21.4%

21.5%

50.0%

Note: (1)Returns are before tax and net of all operating expenses.

From 30 November 2016, the date on which NGE became a LIC, to 31 December 2018.

Tax efficient investment vehicle

•  The Company has recognised a $2m ($0.054 per share) deferred tax asset on the balance sheet as at 31 December 2018.

•  In addition, NGE has approximately $14m of realised but unrecognised tax losses that are not currently carried on the Company's balance sheet.

•  NGE also has approximately $22m of capital losses available as at 31 December 2018.

•  In the aggregate, NGE's potential future tax benefit equates to approximately $12m or $0.33 per share.

Share price performance

Since inception(1)FY2017

FY2018

(p.a.)

(cum.)NGE

ASX 200 Accum.

• 16.7% 27.5%

• 11.8% -2.8%

• 21.0% 48.7%

• 6.2% 13.4%

(1) From 30 November 2016, the date on which NGE became a LIC, to 31 December 2018.

75.0c 70.0c 65.0c 60.0c 55.0c 50.0c 45.0c 40.0c 35.0c

Nov-16 Feb-17 May-17 Aug-17 Nov-17 Feb-18 May-18 Aug-18 Nov-18

NGE close price (¢)ASX 200 Accum. (rebased)

A top performing LIC



NGE has been the best performing LIC on the ASX since inception (30 November 2016).

Total portfolio return since inception - NGE

30-Nov-16

31-Dec-16

31-Mar-17

30-Jun-17

30-Sep-17

31-Dec-17

31-Mar-18

30-Jun-18

30-Sep-18

31-Dec-18

Annualised portfolio return since inception - all ASX LICs(1)

25.0% 20.0% 15.0% 10.0% 5.0%

0.0%

21.5%NGE

-5.0%

-10.0%

-15.0%

-20.0%

Note:Each bar represents the total return of an ASX listed LIC since 30 November 2016. Returns include growth in NTA (pre-tax, after fees and operating expenses) and payment of dividends (grossed up for franking credits).

(1)

Peer comparison data comprises 60 ASX-listed equities focused LICs with FUM of at least A$10m that were listed as at 30 November 2016.