Spheria Emerging Cos. Ltd. · ASX:SEC
Spheria Emerging Cos — FY2018 Earnings Presentation
14 slides from Spheria Emerging Cos's earnings presentation, Sep 5, 2018
Slide 1: Conference call reminder letter to shareholders
Spheria Emerging Companies Limited Level 35, 60 Margaret Street Sydney NSW 2000 Telephone: 1300 010 311 Email: [email protected] ACN 621 402 588 For personal use only 5 September 2018 Company Announcements ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 Dear Shareholder
Slide 2: Annual Results and Portfolio Update
For personal use only Spheria Emerging Companies Limited ASX : SEC Annual Results and Portfolio Update
Slide 3: FY2018 results
2 Spheria Emerging Companies (ASX: SEC) FY2018 results For personal use only FY2018 profit Portfolio performance $7.1m +7.7% Dividend Dividend yield* Cash 4.0c 2.1% Franking (100%) 1.7c Grossed-up 5.7c 3.0% Annualised 6.9c 3.6% Annualised grossed-up 9.8c 5.1% * Share price as at 27 August 2018 of $1
Slide 4: NTA performance breakdown for FY2018
3 NTA performance breakdown for FY2018 For personal use only $2.20 + $0.149 - $0.043 - $0.004 $2.102 $2.10 $2.00 $2.00 $1.90 Opening Portfolio Tax provided Company expenses Closing Pre-tax NTA performance Pre-tax NTA at Inception 30 June 2018
Slide 5: Company overview and NTA performance
4 Spheria Emerging Companies Ltd (ASX : SEC) For personal use only Investment Manager Spheria Asset Management Pty Limited Net Tangible Assets (NTA)1 ASX Code SEC Pre-tax NTA2 $2.102 Share price $1.945 Post-tax NTA3 $2.107 Inception date 30 November 2017 Listing date 5 December 2017 Performance as a
Slide 6: SEC – Portfolio Performance
5 SEC – Portfolio Performance For personal use only SEC Portfolio performance Net Performance as at 30th Jun 2018 Since Inception Period 1 month 3 month 6 month Inception Date SEC Mandate 0.6% 5.9% 4.2% 7.7% 30/11/2017 Benchmark 1.1% 7.7% 4.7% 7.8% Outperformance -0.5% -1.7% -0.4% -0.1% SEC NTA perf
Slide 7: Monadelphous (MND:ASX)
6 Monadelphous (MND:ASX) For personal use only Spheria prefers companies with solid cash flow conversion Cash Flow vs Profit Australian Mining Capex % of GDP 250.0 111% 120% 7% 100% 6% 200.0 5% 80% 150.0 4% 60% 100.0 3% 40% 2% 50.0 20% 1% 0.0 0% 0% FY09A FY18A FY05A FY10A FY14A FY99A FY00A FY01A FY0
Slide 8: Technology One (TNE.ASX)
7 Technology One (TNE.ASX) For personal use only Cash Flow vs Profit 70.0 120% 60.0 96% 100% 50.0 80% 40.0 60% 30.0 40% 20.0 10.0 20% 0.0 0% Free Cash Flow before Tax and Interest EBITA Cash Conversion (Average) • 20 year track record of strong cash flow generation • Transitioning to a full SAAS pro
Slide 9: Technology One – Price vs Value
8 Technology One – Price vs Value For personal use only EV/EBITA EBITA vs Share Price 45x $7.00 90 40x 80 $6.00 35x 70 $5.00 30x Spheria purchases 60 25x $4.00 50 20x $3.00 40 15x 30 $2.00 10x 20 5x $1.00 10 0x $0.00 0 Sep-08 Jul-10 Oct-07 May-01 Apr-02 Dec-05 Nov-06 Apr-13 Dec-16 Nov-17 Mar-03 Feb-
Slide 10: HT&E (HT1.ASX)
9 HT&E (HT1.ASX) For personal use only Cash Flow vs Profit 300.0 120% 101% 250.0 100% 200.0 80% 150.0 60% 100.0 40% 50.0 20% 0.0 0% FY08A FY09A FY10A FY11A FY12A FY13A FY14A FY15A FY16A FY17A Free Cash Flow before Tax and Interest EBITA Cash Conversion (Average) • Outdoor media asset (Adshel) and Ra
Slide 11: Highlights
10 Highlights For personal use only Avoid stocks/sectors exhibiting irrational exuberance Valuation led opportunities abound Further M&A likely Focus on cash flow generative businesses with strong balance sheets Valuations will matter again
Slide 12: Company positions (June 2018)
11 Company positions (June 30 2018) For personal use only Spheria Emerging Companies Limited Ticker Name % Portfolio HT1 Ht&E Limited 5.3% FBU Fletcher Building 5.0% TNE Technology One 5.0% MND Monadelphous Group 4.5% CL1 Class Limited 4.3% BGA Bega Cheese Ltd 4.2% NVT Navitas Limited 4.1% CAB Cabch
Slide 13: Experienced, cohesive investment team
12 Experienced, cohesive investment team For personal use only Marcus Burns (PM) Matthew Booker (PM) Over 20 years industry experience Over 20 years industry experience. of which 7 years in London. Significant alpha generation (+16% Significant alpha generation in pa) in 7.5 years, managing Small Au
Slide 14: LIC Disclaimer
13 LIC Disclaimer For personal use only Spheria Emerging Companies Limited ACN 621 402 588 (SEC) Spheria Asset Management Pty Ltd (ABN 42 611 081 326, Corporate Authorised Representative No. 1240979) (‘Spheria’) is the investment manager of Spheria Emerging Companies Limited ABN 84 621 402 588 (‘SEC
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