Spheria Emerging Cos. Ltd. · ASX:SEC
Spheria Emerging Cos — FY2024 Earnings Presentation
19 slides from Spheria Emerging Cos's earnings presentation, Aug 29, 2024
Slide 1: Shareholder webinar reminder and presentation on full year results
Spheria Emerging Companies Limited (Company) Level 25 Australia Square Tower 264 George Street Sydney NSW 2000 Telephone: 1300 010 311 Email: [email protected] ACN 621 402 588 29 August 2024 By Electronic Lodgement For personal use only Market Announcements Office ASX Limited 20 Bridge S
Slide 2: FY24 Results & Portfolio Update
For personal use only Spheria Emerging Companies Limited (ASX:SEC) FY24 Results & Portfolio Update
Slide 3: Disclaimer
Disclaimer For personal use only Note: Past performance is not a reliable indicator of future Subject to any liability which cannot be excluded under the information is not intended as a securities recommendation or performance. relevant laws, SEC and Spheria disclaim all liability to any person s
Slide 4: Agenda
3 Agenda For personal use only 1. SEC Company update 2. Portfolio update 3. Questions
Slide 5: SEC
For personal use only SEC Company Update
Slide 6: FY24 Highlights
5 FY24 Highlights Yield FY24 Profit Company Performance1 Dividends2 Yield (including For personal use only franking) $7.6m 6.9% 12.0c 5.4%3 7.7%4 • FY24 net profit after tax of $7.6m • Company Performance of 6.9%, -2.4% compared to benchmark5 of 9.3% (+1.9% p.a. to benchmark since inception) • Total
Slide 7: NTA breakdown for FY24
6 NTA breakdown for FY24 Portfolio performance less dividends paid leads to an increase in NTA per share For personal use only • Pre-tax NTA increased by $0.033 from $2.198 at 30 June 2023 to $2.231 at 30 June 2024 • Portfolio performance and dividends paid drive NTA changes. Source: Spheria Emergin
Slide 8: Performance History
7 Performance History Since inception Company outperformance of 2.3% p.a. For personal use only SEC Company performance SEC Limited Net Performance as at 31st July 2024 Period 1 month 3 month 1 year 3 year (pa) 5 year (pa) Since Inception (pa) Inception Date SEC Ltd. 6.7% 3.0% 9.7% 2.4% 7.3% 7.1% 30
Slide 9: Dividends
8 Dividends Raised the dividend target to 6.0% p.a. (excl. franking) paid at a quarterly rate of 1.5% of post-tax NTA For personal use only
Slide 10: Significant improvement in the NTA Discount
9 Significant improvement in the NTA Discount Higher dividends and Conditional Proposal help tighten the NTA discount For personal use only Source: Spheria Emerging Companies, as at 30 June 2024
Slide 11: SEC Portfolio Update
For personal use only SEC Portfolio Update
Slide 12: Spheria Asset Management Investment Process
11 Spheria Asset Management Investment Process How our investment process is different For personal use only 1. Focus on quality businesses with risk control overlay • Sustainable free cash flow generation through the cycle 2. Fundamental investment focus • Free cash flow valuation model • Lowly gea
Slide 13: SEC Portfolio Performance
12 SEC Portfolio Performance Strong relative performance in the last two years SEC Portfolio - Net Performance* since Inception 80.0% For personal use only Spheria Index 60.0% Relative Performance 40.0% 20.0% 0.0% -20.0% -40.0% Nov-19 Mar-20 Jul-18 Jul-19 Nov-17 Nov-18 Mar-21 Mar-22 Mar-23 Mar-24 Ju
Slide 14: Stock Attribution – Top and Bottom
13 Stock Attribution – Top 10 and Bottom 10 Spheria Emerging Companies - Attribution - 12 Month - July 2024 For personal use only 3.00 2.50 2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50 -2.00 -2.50 * Red Outline – companies we did not hold during the period Source : Bloomberg Data as at 31st July 2024
Slide 15: Top Holdings & Sector Exposure
14 Top 10 Holdings & Sector Exposure For personal use only Spheria Emerging Companies Limited 30% Spheria Emerging Companies Limited 25% Ticker Company Name % Portfolio IRE IRESS Limited 4.9 20% HLS Healius 4.6 15% BGA Bega Cheese Ltd 4.4 SNL Supply Network 4.4 10% SGR The Star Ent Grp 3.7 5% MFG Ma
Slide 16: NZME
NZME (ASX:NZM) OneRoof could be worth more than the entire market value of NZME! Cash Flow Conversion (EBITA) OneRoof Revenue vs Domain adjusted for The "Domain" opportunity? For personal use only 90 140% population/currency 80 $80 118% 120% 70 $70 100% 60 $60 50 80% $50 NZ NZ$m 40 recession $40 60%
Slide 17: Very attractive entry point
16 Very attractive entry point Global Smalls are very cheap in a historical context vs large caps EV/EBIT Difference between MSCI World Small vs Large 35% For personal use only 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% Difference Average +1s.d. -1s.d +2s.d. -2s.d Source: Bloomberg, to 31st July 2024.
Slide 18: Key Themes
17 Key Themes • Australia appears to have entered a recession-like environment For personal use only • Central Banks have started to cut rates (New Zealand, Canada, Switzerland, Eurozone) • Investors have deserted earnings risk leaving some sectors looking undervalued on LT basis • Short term earnin
Slide 19: Questions
For personal use only Questions
Spheria Emerging Companies — FY2024 Earnings Presentation on 6ix