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8/13/2019 Selector June 2012 Quarterly Newsletter
1/21
In this quarterly edition we review performance and attribution. We profile Technology One and take a look at retailer Super Group Limited. We also comment on the economic landscape and transformations. Photo
Selector Funds Management Limited ACN 102756347 AFSL 225316 Level 3, 66 Hunter Street Sydney NSW 2000 Australia Tel 612 8090 3610 www.selectorfund.com.au
S e l e c t o r F u n d s M a n a g e
m e n t L t d
Q u a r t e r l y N e w s l e t t e r N o . 3
0
J u n e 2 0 1 2
8/13/2019 Selector June 2012 Quarterly Newsletter
2/21
June 201
Selector
ACN 102
Level 3,
Telepho
Dear In
In a re‐
investo
reasoni
level b
In our
govern
share i
in the
who u
preserv
invest
Three
reflecte
Netherl
on an e
Not su
Investo
Under t
seems
convinc
Now is
Stock
downgr
risk dis
article
speciali
landsca
Finally,
a gross
Index.
To all o
Regard
Tony Sc
Corey
Selector Austr
Funds Manage
756347 AFSL 2
66 Hunter Stree
ne 612 8090 36
vestor,
un of the ev
rs are once
ng will shake
st to destroy
ecember 20
ent bonds
vestors buyi
arch 2012 q
ashamedly
e their capit
ent of
the
n
onths on an
d in ten yea
ands and Au
quivalent PE
rprisingly, th
rs have been
hese circum
extreme. N
ed that now
he time
to
b
election is
ades and ne
ount to shar
this quarter,
st Technolo
pe facing bus
over the cou
negative ret
nder the cir
ur investors
enna
incent
alian Equities F
ent Limited
5316
t Sydney NSW
0 Web www.s
nts that too
gain contem
away the c
confidence.
1 quarterly
itting record
ng businesse
uarterly whe
dded that
l, abandoni
xt generatio
d the situati
r bonds selli
tralia, just t
of 65 times
e stampede
pushed to t
tances, it’s
twithstandi
is not the ti
e in
equities
always criti
capital rais
e valuations
we profile
y One. We
inesses and
rse of the fi
urn of 1.13%
umstances,
e trust that
nd Quarterly N
000, Australia
lectorfund.co
k hold durin
plating the
ncerns of in
ewsletter,
lows of 3.7
s on price to
n we quoted
ith US yiel
g all sense
n”.
n has not i
ng at all tim
name a few
while the S&
into cash
he limit and
nderstanda
g the risin
e to exit. Ra
because the
al in this
ings would r
across the b
one such c
follow this
ow one bus
ancial year,
as compare
e believe th
you find the
ewsletter #30
.au
the latter st
orst. Fear h
estors whe
e highlighte
. At the tim
earnings rati
James Grant
ds pushed t
f investmen
proved, wit
e lows in th
. Such is the
P 500 Share
as been mi
are now voti
le to seek c
tide of re
ther it is a ti
overwhelmin
rocess, as
einforce. Tha
ard, that in
mpany that
up with a
iness is deali
he Fund out
d to the 7.0
is is a comm
report infor
ages of 2011
as taken hol
all around,
the rush to
, it was not
os (PER) of 2
, editor of G
near zero
t logic, “I thi
the run int
US, Germa
swing, that
Index is on a
rrored by t
ng in the m
ver, howeve
sentment to
e to consid
g consensus
any number
t said, invest
ur opinion a
ticks all th
hort article
g with these
performed t
% fall in the
ndable resu
ative.
global finan
d and no a
government
cash with te
d that this w
7 times. We
ant’s Interesand investo
nk it’s going
cash becom
ny, France,
S Treasuries
12.9 times m
e stampede
st direct wa
r what we a
wards equit
r the opport
is telling
you
of recent
ors are appl
ppear unjust
boxes. Th
on the cha
changes.
e general m
All Ordinari
lt.
cial markets
ount of logi
are doing t
year Austra
as equivalen
followed thi
t Rate Obser rs desperat
to be the w
ing a stamp
nited Kingd
are now tra
ultiple.
out of sha
, by selling
e now endu
ies, we re
unities on o
do otherwis
company pr
ing a signifi
ified. In our l
company i
nging econo
arket, delive
s Accumula
1
and
or
heir
lian
t to
up
ver, to
orst
de,
om,
ing
res.
ut.
ring
ain
fer.
.
ofit
ant
ead
s IT
mic
ring
ion
8/13/2019 Selector June 2012 Quarterly Newsletter
3/21
June 201
Selector
ACN 102
Level 3,
Telepho
Table o
Page 1:
Page 4:
Page 13
Page 1
Page 1
Page 20
Quote
Finally
“By maadvanc
which “I am ahave thnew.” Who is
given t
Selector Austr
Funds Manage
756347 AFSL 2
66 Hunter Stree
ne 612 8090 36
f Contents
Letter to inv
Company Re
: Survival of
: Changing e
: Transforma
: Company v
politician th
king a series e, and by taon’t simply t pains to pe confidence
the politician
the
Menzie
alian Equities F
ent Limited
5316
t Sydney NSW
0 Web www.s
stors
view – Tech
he fittest – s
conomic lan
tions
isit diary Jun
at gets it;
of sensible ing most pee reversed bint out most to invest the
that gets it
Research C
nd Quarterly N
000, Australia
lectorfund.co
ology One
napshot revi
scape
Quarter 20
ecisions, whople with yoy the next lot days in parl ir own mone
John Key, P
ntre.
ewsletter #30
.au
ew Super Ret
2
ch build on u as you go, who come i iament – joby to expand
ime Ministe
ail Group
ach other a you can eff to governms are only cr hat they ar
of New Zeal
d which are ct real and nt.” eated when e doing or to
and, an edite
signalled wedurable cha
business ow start somet
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ll in ge,
ers ing
ly
8/13/2019 Selector June 2012 Quarterly Newsletter
4/21
June 201
Selector
ACN 102
Level 3,
Telepho
Perfor
Source: T
As the
investo
That sa
Decem
For the
In the group’s
of the
the mo
growin
compa
largest
focus i
Fund’s
Europe
period.
Selector Austr
Funds Manage
756347 AFSL 2
66 Hunter Stree
ne 612 8090 36
ance Global
he Australian Fi
accompanyin
rs with the i
id, for all t
er 2011, rei
June quarte
ase of New
business tra
usiness into
e and expec
internation
y’s profile r
negative con
vestors on t
holding in P
an approval
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alian Equities F
ent Limited
5316
t Sydney NSW
0 Web www.s
Equity Mar
nancial review
g table abo
dex down d
e woes em
forcing our
a couple of
Corporatio
nsparency w
two listed e
t further pos
al awarene
eflected in s
tribution for
he group’s c
armaxis, wh
as well Aust
e now expect
nd Quarterly N
000, Australia
lectorfund.co
ets
e illustrates,
ouble digit c
anating fro
iew that inv
notable perf
, the past y
hich has cul
ntities, bein
itive perfor
s regarding
trong dose
the quarter,
heap funda
ich took an
ralian Phar
ed this quart
ewsletter #30
.au
the past tw
ompared to
Europe, th
stors are co
rmers inclu
ear has seen
inated in th
publishing
ance over th
the group’s
unit sales. Fl
however we
ental valuat
ther positiv
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er with US a
elve months
ositive gain
e local mar
ing with a ti
ed News Co
manageme
e company
nd entertai
e course of t
liver canc
ight Centre
expect a ver
ion. Also im
step durin
nefit Schem
proval soug
have been
recorded in
et actually
de of negativ
rporation an
t focused o
nnouncing t
ment. We a
he year. In t
r treatment
provided th
strong full
acting perfo
the quarte
e listing gra
t during 201
ifficult for l
the US mar
rose 0.6% si
e sentiment.
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e case of Sir
has lifted
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ear result to
rmance was
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nted during
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nce
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the
inal
the
8/13/2019 Selector June 2012 Quarterly Newsletter
5/21
June 201
Selector
ACN 102
Level 3,
Telepho
Techno
Table 1Year
1987
1999
1999
1999
2000
2000
2000
2000
2000
2001
2001
2001
2002
2002
2002
2002
2003
2003
2003
2004
2005
2006
2007
2008
2009
2010
2011
2011
2012
History The Te
current
solutioestablis
applica
In Dece
the gro
investo
Selector Austr
Funds Manage
756347 AFSL 2
66 Hunter Stree
ne 612 8090 36
logy One (TN
: TechnologyEvent
Technology O
December, b
at $101M. Wi
Technology O
Technology O
supports the I
University of
Shares hit all
October, Tec
November, c
December, ac
fully integrat
January, foun
April, compa
August, anno
May, local go
July, compan
November, c
technology s
November, s
September, n
September, a
CEO Di Marc
expected rele
August, 2004
November, c
February, init
Company rep
Revenue exce
Company cel
Record reven
Revenue pass
Major corpor
investment in
First half prof
hnology On
executive ch
s,
servicing hed a separa
ions culmina
mber 1999,
up at just o
rs keen for i
alian Equities F
ent Limited
5316
t Sydney NSW
0 Web www.s
E)
One time lin
ne founded by
siness lists on
th a forecast N
ne offering re‐p
ne service repu
IT requirements
echnology Syd
ime high of $4.
nology One rai
mpany undert
quires softwar
d software solu
der Adrian
Di
M
y announces a
nces revenue
ernment client
announces 10
ompany updat
ending slowdo
are price hits al
et profit drops
nnounces new
o re‐affirms c
ase of next gen
revenue up 7%
mpany announ
ial licence
fees
f
orting period ch
eds $100M, R&
brates ten year
ues of $136M,
es $150M, R&D
ations utilising
next generatio
its up 2% $9.3M
business tr
airman Adri
the
financite division t
ting in a gro
echnology
ver $100 mi
nformation t
nd Quarterly N
000, Australia
lectorfund.co
e 1987 – 20
drian Di Marco
tock exchange
AT of $5.5M, t
ositioned on pr
tation built on
of its clients in
ney selects Stud
74 per share, v
es $18M for ac
kes 3 for 1 shar
provider ProCl
tion to local go
arco appointed
.95 cent per sh
p 39% to $40M
list exceeds 50,
on market bu
es market, wit
n, dividends of
l time low of 20
0% to $7.0M, f
n market 10%
mmitment to
eration softwar
to $50M, net pr
ces intention to
or the
half
year
anged from Jun
D investment hi
s since listing, f
et profits of $1
investment $3
Technology On
n Cloud (Ci2 )so
, full year profit
ces its origi
n Di Marco,
l
managem investigate
ing client lis
ne listed on
llion. These
echnology (I
ewsletter #30
.au
2
focused on pro
with $1.00 per
e group’s price
oviding busines
“Power of One”
a full service off
ent One softwa
luing business a
quisition via pla
e split, increasin
aim software fo
ernment.
Chairman while
are special divi
, net profit pre
with 50% mark
back of shares
h net profits t
2 cents per sha
cents per share
ull year dividen
uy back of shar
invest heavily
“Connected In
ofits up 35% to
open operation
grew 70%,
with
e to September
ts $21M, record
ll time employ
.1M and full ye
M, net profits
e enterprise so
tware offering,
s expected to ri
s back 25 ye
developing a
nt
and
accthe develop
t servicing ed
the stock e
were the he
T) exposure.
viding accounti
hare issue pric
earnings ratio s
es with critical
, whereby the
ering.
re system to su
t $478 million.
ement of new
g issued shares
r $10.6M, enabl
continuing
as
C
end to release
mortisation up
et share of 75 o
, representing a
o fall 25% bel
re maintained.
(equal to 60 ce
s up 25% to 2.5
es, to maximu
in research an
telligence CI ser
$9.5M, R&D ful
s in United Kin
customer
num
.
net profit of $
e numbers 670
ar dividends of
it $20M, cash b
ftware applicat
new offshore R
se 10‐15% to $2
ars, with fou
nd offering
unting
induent of larg
ucation and
change, rais
ady days of
Back then t
g software for
, raising $28M,
ood at 18.5x.
enterprise soft
ompany builds,
port student gr
hares at $4.03
to 316M.
ling Technology
EO.
xcess franking
41% to $8.1M.
f largest Austral
maximum of 3
ow 2002 level
nts before 3:1 s
cents per shar
29.8M shares.
d development
ies”.
ly expensed tot
dom.
ers now
excee
7M, customer
, R&D team hea
.70 cents per s
alance $45M.
ions passes 800
&D centre to le
3M, FTE exceed
nder, major
ompany ent
stry.
In
198 scale custo
government
ing $27.8 mi
the technol
he Technolo
business.
valuing compa
are solutions.
implements a
owth.
per share.
One to provide
credits.
ian councils.
.7M shares.
of $9.4M po
hare split).
.
(R&D) with t
lling $9.5M.
ing 500.
ase 900.
dcount 500.
hare.
, significant ne
erage cost bas
s 1,000.
shareholder
erprise soft
9,
the
busi built soft
organisation
llion that val
ogy boom,
y One busi
4
y
d
a
st
e
w
.
and
are
ess are
s.
ued
ith
ess
8/13/2019 Selector June 2012 Quarterly Newsletter
6/21
June 201
Selector
ACN 102
Level 3,
Telepho
was ra
prospe
August
2000).
In subs
offerin
softwar
its co
market
formid
Table $’M
Revenu
Operat
Resear
EBIT
NPAT
EBIT M
Shareh
Net De
Market
Enterp
Buyout
ROCE (
GOCF /
Underl
PER
Divide
Divide
Share
Issued
* Adjuste
cash. Shar
Selector Austr
Funds Manage
756347 AFSL 2
66 Hunter Stree
ne 612 8090 36
e in what it
tus docume
2000, the s
equent year
s. Today, th
e solution pr
mitment to
ing, impleme
ble business
: Technolog
e
ing Expenses
h & Developm
argins (%)
olders’ Equity
bt / (net cash)
Capitalisation
ise Value
(%) **
) ***
EBITDA (%)
ing EPS (¢)
d per
share
(¢)
d Yield %
rice 30 June ($)
shares (m)
for 3:1 share spl
e price as at 30 Ju
alian Equities F
ent Limited
5316
t Sydney NSW
0 Web www.s
offered inv
t a net profi
ares hit an
s managem
e group tar
oducts. Imp
customers,
nting and s
which in tur
One Financ2000
28.1
(14.6)
nt (4.7)
8.8
5.8
31.3
14.3
(14.3)
369.7
355.4
2.5
>100
90.0
1.9
61.5
1.5
1.3
1.17
316.0*
it Nov 2000 ** B
ne 2012
nd Quarterly N
000, Australia
lectorfund.co
stors. It act
t of $5.5 mil
all time of $
ent has inv
gets seven i
rtantly the c
which mana
pporting th
n has reward
ial Snapshot2005 2
53.7 6
(28.9) (3
(10.2) (1
14.6 1
10.6 1
27.1 2
38.3 3
(22.7) (1
158.7 19
136.0 17
10.7 9
94.9 7
86.0 7
3.5 4
15.1 1
3.1
3
5.8 5
0.53 0.
299.4 29
yout represents
ewsletter #30
.au
ually made
lion and a di
4.74 ($1.58
sted heavil
ndustry seg
ompany’s ke
gement ter
ir clients, Te
ed sharehol
06 2007
.2 76.8
.2) (44.5)
.7) (13.8)
.3 18.5
.3 14.8
.1 24.0
.3 44.3
.1) (24.0)
5.8 351.3
7.7 327.3
.2 5.6
.9 91.1
.0 106.0
.1 5.0
.1 23.6
.4
3.8
.2 3.2
66 1.18
6.7 297.7
EBIT / EV as a per
oney, with
idend paym
djusted for
in building
ents, offeri
y point of di
s the “Po
chnology O
ers.
2008 200
108.5 120.
(65.5) (76.
(21.2) (24.
21.8 19.
17.2 15.
20.1 16.
50.5 57.
(16.5) (22.
236.1 237.
219.6 214.
9.9 9.1
64.1 56.
71.0 103.
5.8 5.2
13.6 15.
4.1
3.8
5.2 4.8
0.79 0.7
298.9 300.
centage *** ROC
the group f
ent of 1.5 ce
3:1 share sp
out the s
ng ten com
ferentiation
er of One”.
e has built
9 2010
7 134.0
) (84.8)
) (27.0)
22.2
17.8
16.6
63.4
) (29.8)
2 242.7
4 212.9
10.4
66.1
0 140.0
5.9
13.6
5.7
7.1
0.80
3 303.4
E = EBIT / (Shareh
orecasting in
nts per shar
lit in Novem
ftware solu
plete enterp
revolves aro
By develop
successful
2011
2012(
153.4 168.
(96.4) (104.
(31.8) (34.0
25.2 29.6
20.3 22.7
16.4 17.6
68.4 69.8
(33.8) (45.1
315.5
364.
281.7 319.
8.9 9.3
72.8 119.
88.0 98.0
6.7 7.5
15.5 16.0
6.1
7.0
5.9 5.8
1.04 1.20
303.4 303.
olders Equity + d
5
its
. In ber
ion
rise
und
ing,
and
e)
)
)
)
ebt –
8/13/2019 Selector June 2012 Quarterly Newsletter
7/21
June 201
Selector
ACN 102
Level 3,
Telepho
What i Unlike busines
One ha
from a
payroll
softwar
Deployi
project
store a
allows
Too oft
that de
Techno
The co
benefit
Techno
chain. I
externa
differe
things
The se
market
• • • • • • •
These a
custom
• • • • • •
Selector Austr
Funds Manage
756347 AFSL 2
66 Hunter Stree
ne 612 8090 36
Enterprise Sconsumers ses require s
e develope
count keepi
to name a f
e application
ng enterpris
is often a s
large amoun
or improved
en however,
liver perform
logy One buspany prom
of “One Vi
logy One off
n contrast
l parties to
ce that Di
ften go wro
ond point o
implement
Local Gov
State & Fe
Education
Financial S
Health De
Utilities
Managed
re markets
er base now
Over 130
G
Over 220 L
Building so
Over 40 ed
Healthcare
Utilities co
alian Equities F
ent Limited
5316
t Sydney NSW
0 Web www.s
oftware? ho look to stems that
specific app
g, automate
ew. And whi
s, they are a
software is
urce of signi
t of comple
efficiency, p
projects fac
ance, scalabi
iness model otes heavily
sion, One V
ring is rath
ajor compe
undertake t
arco is mor
g at the imp
f difference
nd support
rnment
deral Govern
ervices
artments
ervices
here mana
exceeding 90
overnment d
cal Govern
cieties and c
ucation instit
and aged ca
ering water,
nd Quarterly N
000, Australia
lectorfund.co
ccess indivi
re far more
lication soft
d billing syst
le small busi
must for larg
not without
ficant busine
data but to
roductivity a
cost overr
lity and
robu
the “Power
endor, One
r unique in t
itors includi
e impleme
than happ
lementation
surrounds t
nterprise so
ment
ement have
0 that includ
epartments
ents, servici
edit unions
utions
e
power, port
ewsletter #30
.au
ual pieces o
complex and
are tools to
ems, supply
nesses can
er complex o
its issues. In
ss risk. This i
also allow f
nd ultimatel
ns and fail t
stness.
of One” bus
Experience”.
hat it is pre
ng German
tation side
to exploit f
stage.
he company
lutions target
built up sign
es;
ng about 30
and airport
f software t
integrated.
meet specifi
hain manag
o without s
rganisations.
fact, the roll
because so
r interpreta
better decis
he customer
iness model,
In the ent
ared to con
ased SAP a
of things. T
or good com
s targeted
ed at
seven
ificant exper
of all natio
perform s
rganisations
c business n
ment, huma
ch expensiv
ut of large a
tware is req
ion of that
ion making
brief of pro
where cust
erprise soft
rol all aspec
d US based
is is an im
mercial reas
pproach, ch
ertical mark
tise along wi
al ratepayer
ecific functi
like Technol
eds. They ra
n resources
e tailored‐m
nd integrate
ired to not
ata. In turn
y managem
iding outco
mers enjoy
are space,
ts of the ser
Oracle, rely
ortant poin
ons, noting t
oosing to b
ets including
th a high pr
s
6
ns, ogy
nge
and
ade
d IT
nly
this
nt.
es
the
the
ice
on
of
hat
ild,
file
8/13/2019 Selector June 2012 Quarterly Newsletter
8/21
June 201
Selector
ACN 102
Level 3,
Telepho
• By focu
up lead
its servi
to purc
heavily
that cu Resear
Success
prepar
has ne
the doll
all grea
In our c
Cochle
leader
develo
distribu
and the
and de
as an
shareh
creates
Manag
their re
but re
it need
ResMe
whilst
shareh
relative
develo
Table 3
Year
Revenue
R&D* ($
R&D / R
Net Profi
* Resea
Selector Austr
Funds Manage
756347 AFSL 2
66 Hunter Stree
ne 612 8090 36
Managed s
sing on thes
ing market p
ce, offering t
hase on a p
on improvin
tomers expe
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8/13/2019 Selector June 2012 Quarterly Newsletter
9/21
June 201
Selector
ACN 102
Level 3,
Telepho
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8/13/2019 Selector June 2012 Quarterly Newsletter
10/21
June 201
Selector
ACN 102
Level 3,
Telepho
the thr
contrib
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11/21
June 201
Selector
ACN 102
Level 3,
Telepho
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8/13/2019 Selector June 2012 Quarterly Newsletter
12/21
June 201
Selector
ACN 102
Level 3,
Telepho
second
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66 Hunter Stree
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8/13/2019 Selector June 2012 Quarterly Newsletter
13/21
June 201
Selector
ACN 102
Level 3,
Telepho
Table 6
Year
Reven
EBITD
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756347 AFSL 2
66 Hunter Stree
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8/13/2019 Selector June 2012 Quarterly Newsletter
14/21
June 201
Selector
ACN 102
Level 3,
Telepho
On our
attracti
a mana
shareh
Surviva
During
manag
investo
The roll
busines
taking
compa
domina
relevan
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threats
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of costs
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Brief Hi The
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service,
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756347 AFSL 2
66 Hunter Stree
ne 612 8090 36
assessment t
e and well e
gement tea
lders and a f
l of the fitte
the past qua
ment teams
rs is business
that technol
ses on high a
old has
take
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ted their fie
t competitor
stors, the b
faced are cy
ent and th
ng then, tha
end users t
and fee gen
context,
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nce of onlin
arlier article
ment had p
he light on
ion of the Re
etail Group (
story siness
was
f
followed by
et the stage
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alian Equities F
ent Limited
5316
t Sydney NSW
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he company
stablished re
that has
inancial reco
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rter we visit
. Perhaps m
longevity. W
ogy plays, th
lert. While n
n many
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s
ontext, nam
ld only to
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the biggest
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as a powerf
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domestic r
bel Sports b
SUL)
unded
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for a signifi
nding into t
nd Quarterly N
000, Australia
lectorfund.co
ticks all the
venue mode
elivered for
rd that stand
ed a numbe
re than ever
ill the busine
e migration t
one of these
urprise and
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es like Koda
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by
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into retail s
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.au
boxes. The b
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current sha
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of business
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ss grow, will
o online and
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qu
k, Dell and
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nd
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store roll o
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ll positioned
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specifically
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terviewed m
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8/13/2019 Selector June 2012 Quarterly Newsletter
15/21
June 201
Selector
ACN 102
Level 3,
Telepho
The ex
growth valued
The gr
(Boatin
appoint
include
none
better
Since h
seen t
Outdoo
to Supe
it now
Diagra
Selector Austr
Funds Manage
756347 AFSL 2
66 Hunter Stree
ne 612 8090 36
ernal appoi
trajectory, at $210 milli
up expande
g Camping &
ment of ne
d over a dec
ore importa
nderpins th
is appointme
e group ac
rs in
2010
an
r Retail Grou
epresents. D
2
alian Equities F
ent Limited
5316
t Sydney NSW
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tment in 1
hich at the n and store
d into the r
Fishing). Ho
managing
de with UK
nt than the
group’s mul
nt, Birtles ha
uire bicycle
d more
rece
p in 2011, ill
iagram 2 set
nd Quarterly N
000, Australia
lectorfund.co
98 of Bob
time of its s
umbers app
ecreational
ever, a criti
director Pet
oots group,
introduction
tiple brand s
s executed o
business G
ntly, sports
o
ustrated the
out the gro
ewsletter #30
.au
horn as ma
tock exchan
roaching 200
arena in 20
cal turning p
er Birtles in
Birtles has el
of product
rategy.
n both an or
ldcross Cycl
perator Reb
diverse natu
ps’ operatio
aging direc
e listing in .
5, with the
oint for the
2006. With
evated the b
ourcing and
ganic and re
es in 2008,
l Group
in
O
re of the bus
ns and the c
or undersco
July 2004, h
store launc
roup came
a retailing
usiness in a
supply logis
ail acquisiti
outdoor lei
ctober 2011.
iness and th
rrent store
red the gro
d the comp
h of BCF st
ith the inte
ackground t
umber of ar
tic systems t
n drive that
ure group
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six brands t
enetration.
14
p’s
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8/13/2019 Selector June 2012 Quarterly Newsletter
16/21
June 201
Selector
ACN 102
Level 3,
Telepho
Table 7
Year
Group
EBIT ($
NPAT (
Return
Divisio
Auto &
EBIT ($
Leisur
EBIT ($
Rebel In Octo
vendor
new de
$334 m
Compri
housed
Followi
revenu
At a ti
and mo
retailer
profits
succee
Investo
During
with an
results.
of a m
$1.0 bil
driven
In man
stores
Selector Austr
Funds Manage
756347 AFSL 2
66 Hunter Stree
ne 612 8090 36
: Super Retai
Revenue ($m)
m)
$m)
on Capital (%)
nal Revenue (
Cycle ($m)
m)
($m)
m)
roup ber 2011, Bir
, outlaying
bt totalling
illion.
sing 92 Rebel
under the c
ng this purch
s of
$1.7
bill
e of intens
rtar stores t
on reasona
over the ne
, profits fro
r day May we atte
y presentati
As things cu
rket valued
lion in reven
y the Amart
gement’s vi
nd specialty
alian Equities F
ent Limited
5316
t Sydney NSW
0 Web www.s
l divisional s
$m)
tles announc
610 million
296 million
Sport stores
ompany’s n
ase, the Sup
ion and
earn
debate reg
online, the
ly attractive
t five years,
this divisio
ded the Sup
n that talks
rrently stand
at $3.2
billio
e. Store nu
store rollout
w, the com
retailers. As
nd Quarterly N
000, Australia
lectorfund.co
lit 2006
526
28.9
16.5
11.7
482
32.6
44
(3.4)
ed the purc
in the proce
and new ca
and 36 Ama
wly formed
er Retail Gro
ings before
i
rding the st
move by Bir
financial ter
so as to hit
are likely to
er Retail inv
to the futur
, the combin
n. By
2017,
bers are ex
which is exp
any’s sports
a sports des
ewsletter #30
.au
2007
625
38.1
22.3
13.9
625
37.9
99
1.8
ase of sport
ss. The grou
ital provide
rt All Sports s
third divisio
up is now co
terest and
t
ructural shift
tles carries
ms, it is no
its stated r
exceed $120
stor day, spe
e, vision an
ed operatio
anagement
ected to rise
ected to rise
offering sits
ination retai
2008 20
715 8
45.7 55
25.8 3
14.1 15
559 6
41.6 4
156 2
7.9 1
retailer Reb
funded th
by existing
tores, the ne
, aptly nam
mprised of
x (EBIT)
of
$
of retail bu
ith it additio
up to the
turn on cap
million per
cifically focu
aspiration
s of Rebel a
expects to
l
from 127 to
from the cur
squarely bet
ler, the grou
09 2010
9 938
.1 65.8
.1 38.1
.6 16.8
3 686
.5 48.2
6 252
.4 21.3
el Group fro
deal with a
shareholder
wly acquired
ed Sporting
64 retail sto
55 million.
iness from t
nal risk. Hav
anagement
ital hurdle o
nnum.
sed on the R
re fine but
d Amart, en
ift its
share
t
a figure clos
rent 36 to 85
ween traditi
p’s key stren
2011
1,092
87.5
55.6
17.5
708
63.6
384
32.0
m private eq
combinatio
s to the tun
business is
Goods Retail
res, with an
raditional br
ing acquired
team to lift
20%. Shoul
bel business
hat counts
joy a 19% s
o 33%,
equa
r to 185, lar
.
nal departm
gth resides
15
uity
of
of
ow
ing.
ual
icks
the
net
d it
. As
are
are
l to
ely
ent
ith
8/13/2019 Selector June 2012 Quarterly Newsletter
17/21
June 201
Selector
ACN 102
Level 3,
Telepho
its lead
Amart
Diagra
On the
market
engage price p
that su Manag
grab si
know s
testam
highlig
million
improv
As the
In an
manag
driving
Those t
issues t
Selector Austr
Funds Manage
756347 AFSL 2
66 Hunter Stree
ne 612 8090 36
ing market p
ill offer a m
3: Sports r
issue of pric
consistent”.
with supplie
ints. The ai
ports the st
ment cites t
nificant mar
omething a
nt to manag
ts, over the
while EBIT
d from 11.7
roup’s form
nvironment
ment teams
more sales,
hat can adap
hat are at ha
alian Equities F
ent Limited
5316
t Sydney NSW
0 Web www.s
osition and
re communi
tailing visio
ing, manage
In order to
rs, including is not to b
re infrastruc
he online ris
ket share is
out running
ement’s abili
past five ye
as jumped
to 17.5% o
er chief
fina
of rising co
need to m
our sense is
t to these co
d. SFM
nd Quarterly N
000, Australia
lectorfund.co
rand strengt
ty focused a
ent offers t
ore readily
the likes of at online pri
ture.
as the bigg
equally big.
retail store
ty to tackle
ars, revenue
5% to $63.
er the same
cial officer,
sts and co
nage their
that compan
nditions will
ewsletter #30
.au
h. While Re
d price cons
he following
compete wit
Nike and Ad
ces but to d
st on the ra
The record
s. The succe
any of issue
s at the gro
million. Si
period.
irtles has
a
petitive thr
osts more e
ies have to
hrive and b
el will cater
cious service
that “prices
h online off
idas, to offe
liver what t
ar but also
o far sugge
ss of Super
s that plagu
p’s Auto di
ilarly the g
eel for
the
n
eats from o
ffectively. W
o both and
better posit
for the spor
offering.
will be fair,
rings, the gr
relevant pr
e consumer
otes that th
ts that Birtl
Cheap Auto
business o
ision has ris
roup’s retur
umbers and
nline, now
hile the foc
avoid borro
ioned to tac
ing enthusia
competitive
oup will acti
oduct at var
wants at a p
e opportunit
s and his t
in particula
ners. As Tab
en 47% to $
on capital
an eye
on
co
ore than
s should be
ing excessiv
le the struct
16
sts,
and
ely
ing rice
to
am
r is
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ely.
ural
8/13/2019 Selector June 2012 Quarterly Newsletter
18/21
June 201
Selector
ACN 102
Level 3,
Telepho
The ch
The Au
the arti
IBM. T
mineral
industri
With b
within
and im
The rep
“As ICT
industri
advanc
retailin
as the
Table
industri
Table 8
Source:
Selector Austr
Funds Manage
756347 AFSL 2
66 Hunter Stree
ne 612 8090 36
nging econo
tralian news
cle centred o
e report hig
s boom and
es to exploit
siness and g
usiness is to
rove efficien
ort also war
becomes a
es, including
of digital
in the deca
ew utility w
profiles ho
es.”
: Changing m
he Australian
alian Equities F
ent Limited
5316
t Sydney NSW
0 Web www.s
mic landsca
paper recent
n a report tit
hlighted the
towards th
its potential.
overnment
embrace te
cy.
s that;
tility service
free‐to‐air
echnology
des ahead.
ill enable pr
our econo
ix of industr
nd Quarterly N
000, Australia
lectorfund.co
e
ly published
led “A snaps
need for bu
e burgeonin
iscussions n
chnology to
– as electric
elevision an
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ducers to ta
my my look
revenue
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an article on
hot of Austra
inesses and
g Informatio
ow centred
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ity did durin
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esale trade
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by 2050 an
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lia’s Digital F
government
n and Com
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bat the onli
the industr
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8/13/2019 Selector June 2012 Quarterly Newsletter
19/21
June 201
Selector
ACN 102
Level 3,
Telepho
As Tabl
manufa
progres
past qu
Melbou
Sydney
In trut
from h
Group
for the
will be
Howev
are pre
As the
that th
service
are not
Transf
Too oft
transfo
costs a
have s
this list
manag
After a
ageing
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ongoin
newish
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g
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busines
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Selector Austr
Funds Manage
756347 AFSL 2
66 Hunter Stree
ne 612 8090 36
e 8 highlight
cturing sect
s, particularl
arter with th
rne printing
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rdcopy new
nd SEEK, ha
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r the jury is
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pay
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e online wo
offering to c
guaranteed
rmations
en in busine
mational un
d more pro
ught new
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we can no
ment – Perp
string of fail
investor bas
r announce
permanent
CEO Geoff L
ding “Transf
otted out th
eneral
rule
ions or tran
s is a simple
to execute o
s. Again, we
s we are pre
alian Equities F
ent Limited
5316
t Sydney NSW
0 Web www.s
s, by 2050 th
rs. While cr
y when the
e announce
presses an
ald and The
struggled t
papers to o
ing stolen a
er revenue s
e by Fairfax
still out on
for online
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f success, h
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ertakings. T
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a three ye
cost reducti
loyd, having
ormation 20
word sixtee
investors
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sforming re
one and fr
n returning t
are mindfu
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000, Australia
lectorfund.co
e driving for
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xternal forc
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adapt its b
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ces of the ec
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irfax Media
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companies
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