Whitefield Industrials Limited · ASX:WHF
Whitefield Industrials — Investor Presentation (March 2006)
17 slides from Whitefield Industrials's investor presentation, Mar 24, 2006
Slide 1: Listed Investment Companies: Whitefield & Sylvastate Update March 2006
Listed Investment Companies WHITEFIELD & SYLVASTATE UPDATE March 2006 WHITEFIELD 1 SYLVASTATE
Slide 2: Whitefield
WHITEFIELD Founded: Objective: 1. To generate an investment return which is In excess of the market return over the ‘ongar term. 2. To provide investors with a structurally efficient investment vehicie. Assets: Sharas listed on the Australian Stock Exchange. Portfolio Strategy: Seeks to provide an e
Slide 3: Sylvastate
SYLVASTATE BUINOS TATE LT Founded: 1924 Objective: 1. To generate a strong outright investment return and a growing stream of income over the jong term. 2. To provide investors with a structurally efficient investment vehicte. Assets: Shares and securities listed on the Australian Stock Exchange. Po
Slide 4: Investment Methodology
INVESTMENT METHODOLOGY Research & Analysis Style neutral, valuation and earnings focus; Defined and Struciured process; In house analytical team, *No individual share trait such as growth, value or cash flow quality alone can predict the ultimate return to an investor. Instead we emphasise the prerr
Slide 5: Investment Outcomes: Sylvastate
INVESTMENT OUTCOMES: SYLVASTATE Syivastate has produced an outright investment return of above 14% per annum over the last 20 years. SYLVASTATE LTO. RNVESTMENT RETURNS: SYLVASTATE LTD NET PROFIT AFTER TAX (Retume shawn ae per Annum except Last Gtr and Year fo Data) (CRIS PRRSHARA, eth 106 (and Guart
Slide 6: Investment Outcomes: Whitefield rolling five year periods
INVESTMENT OUTCOMES: WHITEFIELD 20 rolling five year periods. ROLLING 5 YEAR RETURNS (ANA WHTEFELD VS AGOOE ACCUM ATOR LIE EIELEPSESEBSESES PEL \WHETEFIELD MONTHLY RETURNS 2506 VS ASKZ06 Whitelield's investment portiolio has outperformed the ASX200 Accumulation Index in 18 of the fast NET CFRATGFROR
Slide 7: Investment Outcomes: Efficiency
INVESTMENT OUTCOMES: EFFICIENCY An investment in Aust shares of $100,000 today will grow to $600,000 after tax in 25 years, assuming the long term market average return. A 2% per annum higher MER, however, wili erode $170,000 of value over the 25 years, resuiting in an investment worth only $430,000
Slide 8: Recent Drivers of Investment Return
RECENT DRIVERS OF INVESTMENT RETURN id Ov WhfiSyl Seven Network Whf/Syl Computershare Wht Amcor WhffSyl Foodland WhffSyl |Perpetual WhfiSyl News : Tabcorp Whffsyl -A.00% Most significant overweight holdings WHITEFIELD 8 SYLVASTATE vy VY
Slide 9: Portfolio Movements
PORTFOLIO MOVEMENTS . WHF: broadening of portfolio, expansion of key overweight positions, reduction of positions where risks are growing . SYL: removal of positions carrying increasing risk and investment inio stocks offering undervalued and strongly growing earnings streams BATEGIC BOSITIONING CHA
Slide 10: Economic Outlook
ECONOMIC OUTLOOK Significant upwards price pressures and high levels of demand will not exist concurrently for an extended period. + Accommodative monetary policy and a glut of global savings, coupled with a lack of supply have resulted in an extreme upwards movement in underlying materials costs. C
Slide 11: Economic Outlook: Sectoral Level
ECONOMIC OUTLOOK What are we seeing at a sectoral level? SECTORS EXPERIENCING BRIDE PRESSURES Be Construction ‘Steal, cement, labour Low int rates and high vatuations Rates rising, Valuations peaking, More projects uneconomic. JAutos & Parts Steal, abour Home equity withdravel, smaller cars House pr
Slide 12: Strategic Positions
STRATEGIC POSITIONS KEY SI ROTEGIC POSTIONS FOR 2006 ttoli Wot wins: Whf/Syl “WhfiSyl : Undervaiued earnings, Corp activity crystallising value. Nearing 4: WhfiSyi (g) WhfiSyl__US housing market to ease on rate pressure. Favouring sectors offering insulation from rising costs, and defensible, underv
Slide 13: Portfolio Positions: Sylvastate
PORTFOLIO POSITIONS: SYLVASTATE SY VAST ATE BORTE OLIN STRUCTHR! COMPONENT #4: Whitofild Exposure 18.9% (Undetvatved assets, providing evong, ongoing seiumns ard earines COMPONENT #2: Core Portfolio Hoitings targeting the delivery of strong outnght returns and consistency thraugh ‘a9 omphasia on sto
Slide 14: Portfolio Positions: Whitefield
PORTFOLIO POSITIONS: WHITEFIELD WHIT ERIELD BORTEOLIO TOP 20 COMMONWEALTH BANK OF AUSTRALIA TA% NATICNAL AUSTRALIA BANK LIMITED TAG WHITEFIELD ANZ BANKING GROUP LIMITED 6.1% + Risk conirol via diversification + Strength of return through RM stock selection and analytic WOOLWORTHS LIMITED : processes
Slide 15: Pricing & Corporate Actions
PRICING & CORPORATE ACTIONS WHIFEFIELDLTO: PRIGE AND NTA SYLVASTAFELTD PRICE AND NTA PFPPIPPESB ED ESS Whitefield NTA (Feb) NTA Before Tax $4.39 NTA After Tax $3.94 Sylvastate NTA (Feb) NTA Before Tax $5.20 NTA After Tax $4.78 *Share purchase plan on offer in AprillMay. WHITEFIELD 15s SYLVASTATE VY
Slide 16: WHF and SYL: Corporate Directions
WHF AND SYL: CORPORATE DIRECTIONS CORPORATE GOVERNANCE . We expect to maintain our preference for a majority of independent directors, and an independent Chairman, with strengih of experience in LICs, financial markets, and audit, as we consider these characteristics and structure essential for soun
Slide 17: Conclusion
CONCLUSION . Underlying cost pressures and slowing revenue lines to be an increasing focus for markets in 2006/7. . While we do have some concerns as to the broad market direction based on this outlook, WHF and SYL have portfolios which offer a moderate degree of insulation from the more overpriced
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