Spheria Emerging Cos. Ltd. · ASX:SEC
Spheria Emerging Cos — Shareholder Meeting (November 2024)
24 slides from Spheria Emerging Cos's shareholder meeting presentation, Nov 19, 2024
Slide 1: 2024 Annual General Meeting
For personal use only Spheria Emerging Companies Limited (ASX:SEC) 2024 Annual General Meeting 19 November 2024
Slide 2: Agenda
Agenda 2 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: Investment Objectives
4 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 5: Objective 1: Outperform the benchmark
5 Chairman’s Address Objective 1: Outperform the benchmark Company Performance1 For personal use only • 1.9% p.a. annualised outperformance from inception to 30 June 2024 (+6.2% p.a. compared to benchmark 4.3% p.a.) • 2.2% p.a. annualised outperformance from inception to 31 October 2024: Performance
Slide 6: Objective 2: Provide Capital Growth and Income
6 Chairman’s Address Objective 2: Provide Capital Growth and Income 1. Company Performance and TSR Performance For personal use only Performance 30 June 2024 31 October 2024 Company Performance1 (since inception) 6.2% p.a. 7.4% p.a. TSR Performance2 (since listing date) 5.8% p.a. 6.7% p.a. 2. TSR Pe
Slide 7: Pre-tax NTA and Cumulative Dividends
7 Chairman’s Address Objective 2: Provide Capital Growth and Income SEC Pre-tax NTA + Cumulative Dividends / Franking Credits $3.50 $3.228 • Looking back since the IPO of the Company until $2.965 $0.247 For personal use only $3.00 $2.866 31 October 2024: $0.077 $2.769 $0.217 $0.190 $2.537 $0.168 $0.
Slide 8: Spotlight on Dividends
8 Chairman’s Address Spotlight on Dividends SEC Dividend History • Total FY24 quarterly dividends of 12.0 cents per 6 For personal use only share Increase 5.0 to 1.5% 5 post-tax Quarterly dividends • Target dividend yield was increased to 6% of Quarterly dividends of 1% increased to 1.25% NTA 4.0 4.
Slide 9: SEC Share Price v Pre-tax NTA Premium / Discount
For personal use only • • Data to 31 October 2024 Source: Spheria Emerging Companies. $0.75 $1.00 $1.25 $1.50 $1.75 $2.00 $2.25 $2.50 $2.75 $3.00 31-Dec-17 31-Jan-18 28-Feb-18 31-Mar-18 Improvement in NTA Discount 30-Apr-18 31-May-18 30-Jun-18 Chairman’s Address 31-Jul-18 31-Aug-18 30-Sep-18 31-Oct-
Slide 10: Formal Business
For personal use only Formal Business
Slide 11: Formal Business – Financial statements and reports
Formal Business – Financial statements and reports 11 For personal use only Consideration of financial statements and reports
Slide 12: Adoption of the Remuneration Report
Formal Business – Resolution 1 12 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 2024 be adopted.”
Slide 13: Resolution - Proxies
Formal Business – Resolution 1 - Proxies 13 For personal use only Shares voted For 2,346,833 84.71% Open 68,158 2.46% Against 355,565 12.83% Abstain 30,206
Slide 14: Re-election of Matt Booker as a director
Formal Business – Resolution 2 14 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 Matt Booker, who retires by rotation in accordance with rule 6.7 of the Company’s Constitution and,
Slide 15: Resolution - Proxies
Formal Business – Resolution 2 - Proxies 15 For personal use only Shares voted For 2,981,954 90.42% Open 68,158 2.07% Against 247,653 7.51% Abstain 11,000
Slide 16: Investment Manager Update
For personal use only Investment Manager Update Fundamental investing shines through
Slide 17: Product Background
Product Background 17 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 50) with a max
Slide 18: Performance – Graphical Illustration
For personal use only -40% 40% 60% 80% -20% 0% 20% Dec-17 Feb-18 Apr-18 Jun-18 Source: IRESS, Spheria to 31st October 2024 Aug-18 Oct-18 Index Spheria Dec-18 Feb-19 Apr-19 Jun-19 Aug-19 Relative Performance Oct-19 Dec-19 Feb-20 Apr-20 Jun-20 Aug-20 Oct-20 Performance – Graphical Illustration Dec-20
Slide 19: Supply Network: Quality compounder
Supply Network (ASX:SNL) 19 Quality compounder Cash Flow Conversion (EBITA) Return Metrics 60 70% 70% For personal use only 64% 60% 60% 58% 50 52% 53% 50% 50% 40 41% 39% 38% 40% 40% 37% 35% 33% 32% 31% 32% 30 30% 30% 27% 26% 20 19% 18% 20% 20% 10 10% 10% 0 0% 0% FY09A FY10A FY11A FY12A FY13A FY14A F
Slide 20: Top Company Holdings and Sector Exposure
Top 10 Company Holdings and Sector Exposure 20 For personal use only Spheria Emerging Companies Limited 30% Spheria Emerging Companies Limited Ticker Company Name % Portfolio 25% SNL Supply Network 5.5 20% FBU Fletcher Building 4.9 IFL Insignia Financial 4.4 15% IRE IRESS Limited 4.1 10% HLS Healius
Slide 21: Outlook
Outlook 21 • Waves of selling across small cap complex with large industry funds exiting, retail investors deleveraging and For personal use only hedge funds either reducing beta or shorting • Compounded by a withdrawal of buying in anything with “warts” particularly earnings weakness whether it is
Slide 22: Questions
For personal use only Questions
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
Slide 24: Thank you for joining us
For personal use only Thank you for joining us SEC Shareholder Enquiries For general information about your shareholding 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]
Spheria Emerging Companies — Shareholder Meeting (November 2024) on 6ix