Spheria Emerging Cos. Ltd. · ASX:SEC
Spheria Emerging Cos — H1 2024 Earnings Presentation
19 slides from Spheria Emerging Cos's earnings presentation, Mar 5, 2024
Slide 1: Shareholder webinar reminder and presentation on half-year results
Spheria Emerging Companies Limited (Company) Level 25 Australia Square Tower 264 George Street Sydney NSW 2000 Telephone: 1300 010 311 Email: [email protected] ACN 621 402 588 5 March 2024 For personal use only By Electronic Lodgement Market Announcements Office ASX Limited 20 Bridge Str
Slide 2: 1HFY24 Results & Portfolio Update
For personal use only Spheria Emerging Companies Limited (ASX:SEC) 1HFY24 Results & Portfolio Update
Slide 3: 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 4: Agenda
Agenda 3 For personal use only 1. SEC Company update 2. Portfolio update 3. Questions
Slide 5: SEC
For personal use only SEC Company Update
Slide 6: 1HFY2024 Highlights
5 1HFY2024 Highlights Yield 1HFY24 Profit Company Performance1 Dividends2 Yield (including For personal use only franking) $8.6m 9.2% 5.6c 5.4%3 7.6%4 • 1HFY24 net profit after tax of $8.6m • Company Performance of 9.2%, +2.8% compared to benchmark5 of 6.4% (also +2.8% p.a. to benchmark since incept
Slide 7: NTA breakdown for 1HFY24
6 NTA breakdown for 1HFY24 Portfolio performance less dividends paid leads to an increase in NTA per share For personal use only • Pre-tax NTA increased by $0.142 from $2.198 at 30 June 2023 to $2.340 at 31 December 2023 • Post-tax NTA as at 31 December 2023 was $2.305 per share, which was $0.035 lo
Slide 8: Performance History
7 Performance History Since inception Company outperformance of 2.7% p.a. SEC Company performance For personal use only SEC Limited Net Performance as at 31st Jan 2024 Period 1 month 3 month FYTD 1 year 3 year (pa) 5 year (pa) Since Inception (pa) Inception Date SEC Ltd. 0.3% 23.2% 9.5% 7.7% 5.9% 8.
Slide 9: Dividends
8 Dividends Delivering on the dividend target of 5.0% p.a. (excl. franking) paid quarterly SEC Dividend History For personal use only 6 5 5 Increase to 4 4 Quarterly dividends of 1% of post-tax NTA 1.25% post-tax 4 NTA 3.5 Cents per share 3 2.9 3 2.8 2.7 2.5 2.5 2.6 2.5 2.2 2.1 2.2 2.2 2 2 1 0 Divid
Slide 10: Solving the NTA Discount
ASX:SEC - Solving the NTA Discount 9 Conditional proposal to exchange shares in SEC for units in Spheria Australian Smaller Companies Fund announced For personal use only Source: Spheria Emerging Companies, as at 28 February 2024
Slide 11: SEC Portfolio Update
For personal use only SEC Portfolio Update
Slide 12: Spheria Asset Management Investment Process
11 Spheria Asset Management Investment Process How our investment process is different For personal use only 1. Focus on quality businesses with risk control overlay • Sustainable free cash flow generation through the cycle 2. Fundamental investment focus • Free cash flow valuation model • Lowly gea
Slide 13: SEC Portfolio Performance
12 SEC Portfolio Performance Strong relative performance in the last two years For personal use only * Net Portfolio performance = investment performance of mandate after investment management fees but before taxes. Source: Spheria Asset Management to 31st January 2024
Slide 14: SEC Portfolio - stock attribution
13 SEC Portfolio - stock attribution For personal use only * Red Outline – companies we did not hold during the period Source : Bloomberg Data as at 31st January 2024
Slide 15: Top Company Holdings and Sector Exposure
14 Top 10 Company Holdings and Sector Exposure For personal use only Source: IRESS, as at 31st January 2024. Companies mentioned on this slide are illustrative only and not a recommendation to buy or sell any particular security
Slide 16: Supply Network: Under the radar
Supply Network (ASX:SNL) 15 Under the radar For personal use only • Truck and bus aftermarket spare parts distributor under Multispares brand in AU/NZ • No. 1 player in the market with 25 branches (20 in Australia, 5 in NZ) • Strong history of cash generation and re-investment at high ROIC • Revenue
Slide 17: IRESS: Returning to the Core
IRESS (ASX:IRE) 16 Returning to the Core For personal use only • IRESS designs and develops software for the financial services industry in Australia, NZ, Asia, UK, South Africa and Canada. • Xplan has 65% market share in Australian Financial Planning. The next biggest player has <10% share (Adviser
Slide 18: Key Themes
17 Key Themes • Nov/Dec rally topped off by a “frenzy” of takeovers just before Christmas has narrowed the For personal use only significant valuation discounts that were on offer in the microcap/small cap space. • The takeovers largely in “unloved” value names has stoked a FOMO rally in those remai
Slide 19: Questions
For personal use only Questions
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