Spheria Emerging Cos. Ltd. · ASX:SEC
Spheria Emerging Cos — Shareholder Meeting (November 2021)
23 slides from Spheria Emerging Cos's shareholder meeting presentation, Nov 30, 2021
Slide 1: 2021 Annual General Meeting
For personal use only Spheria Emerging Companies Limited (ASX:SEC) 2021 Annual General Meeting 30 November 2021
Slide 2: Agenda
Agenda For personal use only 1. Chairman’s Address 2. Formal Business 3. Investment Update 4. Questions
Slide 3: Chairman's Address
For personal use only Chairman’s Address
Slide 4: Company Overview
4 Chairman’s Address Company Overview For personal use only The Company The Manager Spheria Emerging Companies Spheria Asset Limited (ASX: SEC) Management Limited • SEC offers investors access to an • Believes free cash flow drives actively managed Australian and New valuations in the medium to long
Slide 5: Investment Objectives
5 Chairman’s Address Investment Objectives For personal use only The Company’s investment objectives are to: • outperform the benchmark, the S&P/ASX Small Ordinaries Accumulation Index, over each full investment cycle (which the Manager considers to be a period of typically 3 to 5 years); and • prov
Slide 6: Company Details
6 Chairman’s Address Company Details For personal use only Manager Shares1 Spheria Asset Management Outstanding 60,150,633 Price $2.60 Board of Directors Market capitalisation $156.4m • Jonathan Trollip (Chairman) NTA2 • Lorraine Berends Pre-tax (Which includes tax provided for $2.713 • Matt Booker
Slide 7: Dividends
7 Chairman’s Address Dividends For personal use only • FY21 annual dividend of 8.5 cents is an increase Dividend History 6 of 55% on the FY20 annual dividend of 5.5 cents, in recognition of the strong profit for the 5 Final year. 4 dividend Maiden (100% Cents per share Final dividend franked) • New
Slide 8: Performance
8 Chairman’s Address Performance For personal use only Company Performance1 • 12.6% annualised from inception to 31 October 2021 Inception 6 months 1 year 3 years p.a. p.a. Company 13.6% 45.9% 15.9% 12.6% Benchmark2 7.9% 31.0% 13.5% 9.8% Difference 5.7% 14.9% 2.3% 2.9% TSR Performance3 • 10.8% annua
Slide 9: Formal Business
For personal use only Formal Business
Slide 10: Formal Business – Financial statements and reports
Formal Business – Financial statements and reports For personal use only Consideration of financial statements and reports
Slide 11: Adoption of the Remuneration Report
Formal Business – Resolution 1 For personal use only Adoption of the Remuneration Report To consider and, if thought fit, to pass the following resolution: “That the Remuneration Report of the Company for the financial year ended 30 June 2021 be adopted.”
Slide 12: Resolution - Proxies
Formal Business – Resolution 1 - Proxies For personal use only Shares voted For 2,028,581 93.44% Open 11,000 0.51% Against 131,500 6.06% Abstain 17,500
Slide 13: Re-election of Matt Booker as a director
Formal Business – Resolution 2 For personal use only Re-election of Matt Booker as a director To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Matthew Booker, having been appointed to the Board since the last Annual General Meeting of the Company
Slide 14: Resolution - Proxies
Formal Business – Resolution 2 - Proxies For personal use only Shares voted For 2,327,582 99.53% Open 11,000 0.47% Against 0 0% Abstain 0
Slide 15: Investment Manager Update
For personal use only Investment Manager Update Fundamental investing shines through
Slide 16: Product Background
Product Background For personal use only SEC is a listed version of the Spheria Australian Smaller Companies Fund Designed to give investors exposure to: • cash generative • lowly geared smaller companies • with supportive valuations. SEC will typically have 20-65 stocks (currently 42) with a max.
Slide 17: Performance – Graphical Illustration
For personal use only Source: IRESS, Spheria -40.0% 40.0% 60.0% 80.0% -20.0% 0.0% 20.0% Nov-17 Jan-18 Mar-18 Index May-18 Spheria Relative Jul-18 Performance Sep-18 Nov-18 Jan-19 Mar-19 May-19 Performance – Graphical Illustration Jul-19 Sep-19 Nov-19 Jan-20 Mar-20 May-20 Jul-20 SEC - Gross Performan
Slide 18: Investment Process - Michael Hill
Investment Process - Michael Hill 18 (ASX:MHJ) A forgotten gem For personal use only Cash Flow Dynamics Share Price Performance* 90.0 100% 120 88% 80.0 90% 80% 100 70.0 70% 60.0 80 Share Price (c) 60% 50.0 50% 60 40.0 40% 30.0 40 30% 20.0 20% 20 10.0 10% 0.0 0% 0 Jan-20 Jan-21 Mar-20 Apr-20 Mar-21 A
Slide 19: Top Positions
Top Positions For personal use only Spheria Emerging Companies Ltd as of 31st October 2021 Security Company Name % Portfolio FLT Flight Centre Travel 5.2 CL1 Class Limited 4.7 IRE IRESS 3.7 BKL Blackmores 3.6 VGL Vista Group 3.6 HT1 Ht&E 3.5 ABC Adbri 3.5 MND Monadelphous 3.4 CTD Corporate Travel 3.
Slide 20: Outlook
Outlook For personal use only • The rotation we noted at last year’s AGM from “speculation to valuation” continues, this favours traditional fundamental investors like us. • Rising inflation and interest rates will likely drive volatility and possibly an adjustment in investor behaviour. • Business
Slide 21: Questions
For personal use only Questions
Slide 22: Thank you for joining us
For personal use only Thank you for joining us SEC Shareholder Enquiries For general information and investment enquiries please contact the Share Registry, Automic. T: 1300 288 664 E: [email protected] For investment enquiries please contact Pinnacle T: 1300 010 311 E: [email protected]
Slide 23: 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
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