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

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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 : admin@westozfunds.com.au

Contacts

Dermot Woods Executive Director (08) 9321 7203 dwoods@westozfunds.com.au

Tim Banfield Head of Distribution (08) 9321 7683 tbanfield@westozfunds.com.au

Jaime Underdown Chief Operating Officer (08) 9321 7682 junderdown@westozfunds.com.au