Spheria Emerging Cos. Ltd. · ASX:SEC
Spheria Emerging Cos — Shareholder Meeting (November 2020)
12 slides from Spheria Emerging Cos's shareholder meeting presentation, Nov 25, 2020
Slide 1: Annual General Meeting
For personal use only Spheria Emerging Companies Limited ASX : SEC Annual General Meeting 25 November 2020
Slide 2: Agenda
2 For personal use only Agenda 1. SEC Company update 2. Smaller companies investing 3. Opportunities
Slide 3: Spheria Emerging Companies (SEC.ASX)
3 Spheria Emerging Companies (SEC.ASX) 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 (c
Slide 4: Unintended Consequences
4 Unintended Consequences For personal use only No. of stocks with EV/ Sales > 10x 200 160 120 80 40 0 • EV/Sales > 10 is expensive in historical context • Resource stocks, BNPL wannabes and speculative micro caps have inflated this bubble Chart Source: Bloomberg data, ASX stocks with market cap > $
Slide 5: The Less You Earn, The More You Are Worth
5 The Less You Earn, The More You Are Worth For personal use only Smaller Companies Average Return – Prior 12 Months 120 100 80 60 40 20 0 -20 -40 Positive Op CF Negative Op CF • Such is the upside down world we live in – negative operating cash flow outperformed Chart Source: Bloomberg data: simple
Slide 6: However When the Weighing Machine Operates
6 However When the Weighing Machine Operates For personal use only 20 Year Returns: Positive vs. Negative Cash Flow 800 700 600 500 400 300 200 100 0 -100 Positive Op CF Benchmark - Small Ordinaries Negative Op CF • Back tested portfolio of positive operating cash flow vs. negative operating cash fl
Slide 7: SEC Performance
7 SEC Performance For personal use only Company Performance* as at 31 October 2020 Since 1 month 6 month 1 year Inception Date Inception (p.a.) Company 1.8% 21.3% -2.5% 3.1% 30/11/2017 S&P/ASX Small Ordinaries 0.5% 15.1% -2.4% 3.3% Accumulation Index Outperformance +1.3% +6.2% -0.1% -0.2% * Company
Slide 8: Breville - The Sage of Europe
Breville (ASX:BRG) 8 The Sage of Europe For personal use only Cash Flow Dynamics Return Metrics 120.0 100% 100% 86% 90% 90% 100.0 80% 80% 70% 70% 80.0 60% 60% 51%50% 60.0 50% 50% 44% 39% 38%36%37%39%37% 40% 40% 40.0 28% 30% 30% 20%20%20% 18% 20.0 20% 20% 15% 14%12%14% 13% 10% 10% 0.0 0% 0% FY01A FY0
Slide 9: Company Positions
9 Company Positions For personal use only SEC holdings as at 31 October 2020 Ticker Name % Portfolio CL1 Class Limited 4.9% BKL Blackmores Limited 4.7% HT1 Ht&E Limited 4.2% MOC Mortgage Choice Ltd 4.2% PTM Platinum Asset 4.1% HLS Healius 4.1% GBT GBST Holdings.. 4.1% ABC Adelaide Brighton 4.1% FBU
Slide 10: Outlook
10 Outlook For personal use only • Continued momentum in Fintech and GAAP (growth at any price) continues to leave opportunity in cyclicals, travel related and smaller cap stocks. • Central Banks around the world have signaled continued interest in QE and further stimulus. • The IPO pipeline is now
Slide 11: Thank you for joining us
11 For personal use only Thank you for joining us SEC Shareholder Enquiries For general information and investment For investment enquiries please contact Pinnacle enquiries please contact the Share Registry, Automic. T: 1300 010 311 T: 1300 288 664 E: [email protected] E: [email protected]
Slide 12: Disclaimer
12 Disclaimer For personal use only Note: Past performance is not a reliable indicator of future performance. Spheria Asset Management Pty Ltd (“Spheria”) ABN 42 611 081 326, a corporate authorised representative (No. 1240979) of Pinnacle Investment Management Limited (“PIML”) ABN 66 109 659 109, AF
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