Whitefield Industrials Limited · ASX:WHF
Whitefield Industrials — Whitefield — Shareholder Meeting (July 2010)
19 slides from Whitefield Industrials's shareholder meeting presentation, Jul 22, 2010
Slide 1: Annual General Meeting
For personal use only ANNUAL GENERAL MEETING WHITEFIELD LIMITED Thursday 22 July 2010 0
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only The commentary within this presentation is general investment information only and is limited in scope. It should not be considered to provide a full outline of all information an investor should consider prior to making an investment. The presentation doe
Slide 3: An Investment in Whitefield Provides…
AN INVESTMENT IN WHITEFIELD PROVIDES… For personal use only INVESTMENT RETURN EFFICIENCY EASE Long track record of One of the more cost efficient The ability to invest by outperformance versus Aust share managed purchasing shares on benchmark index. investment vehicles available the ASX. to investor
Slide 4: Long Term Objectives: Benefit to Shareholders
LONG TERM OBJECTIVES: For personal use only BENEFIT TO SHAREHOLDERS WHF: 10 YEAR RETURNS BENEFITS FROM INVESTMENT RETURN (returns annualised, returns to Mar 2010) 10% An investment of $1,000 in Whitefield in 9% Return per annum Whitefield 1970 would at 31 March 2010 be worth 8% 8.19% PA Post -Tax NT
Slide 5: Investment Strategy and Process
INVESTMENT STRATEGY AND PROCESS For personal use only Whitefield & Sylvastate seek to hold investments which are realistically capable of generating a robust and sufficient rate of investment return through the satisfactory delivery of future earnings over multiple years. While share prices will flu
Slide 6: Investment Strategy and Process
INVESTMENT STRATEGY AND PROCESS For personal use only MONITOR, INVESTIGATE & MODEL & ANALYSE RESEARCH Model, forecast and analyse Economic, Industry, Company & earnings, risks and sensitivities Divisional Data Code Name Market Whitefield Value % NWSLV News Corporation 5,624,966 2.42% SEV Seven Netwo
Slide 7: Latest Outcomes: Investment Performance
LATEST OUTCOMES For personal use only INVESTMENT PERFORMANCE: Before Tax Returns • WHF portfolio 46.10% 1 Year to Mar 2010 • 2.32% higher than ASX200 Industrials Accumulation • WHF 10 portfolio 8.19%pa 10 Years to Mar 2010 • 1.71%pa higher than ASX200 Industrials Accumulation WHF: 1 YEAR RETURN WHF:
Slide 8: Latest Outcomes: Earnings
LATEST OUTCOMES For personal use only EARNINGS • WHF eps 29% lower for the year to March 2010 • Decrease reflects the cuts and deferrals of dividends across many companies in the Australian listed market • We expect to see earnings growth from these levels into late 2010 and 2011 EARNINGS PER ORDINA
Slide 9: Latest Outcomes: Dividends
LATEST OUTCOMES For personal use only DIVIDENDS • WHF 8.5 cps for the half, 100% LIC Discount Status (17cps for the year) Dividends equate to approx 5.7% fully franked yield on share price. LIC Discount Status cuts tax rate on the div by 50% individuals, 33% super funds. WHF is able to release prior
Slide 10: Investment Companies and Tax: Frequently Misunderstood
INVESTMENT COMPANIES AND TAX: For personal use only FREQUENTLY MISUNDERSTOOD LISTED INVESTMENT COMPANIES PROVIDE INVESTORS WITH AFTER COMPANY TAX INCOME PLUS CREDITS FOR TAX PAID BY THE LIC • While an LIC pays company tax on unfranked income and realised capital gains, the LIC may in turn pay a fran
Slide 11: Investment Companies and Tax: Frequently Misunderstood
INVESTMENT COMPANIES AND TAX: For personal use only FREQUENTLY MISUNDERSTOOD INVESTORS SHOULD DISTINGUISH BETWEEN BEFORE AND AFTER TAX PERFORMANCE MEASURES AN IMPORTANT CONCEPT: “Pre-Tax asset backing” is an after tax measure 10
Slide 12: Investment Companies and Tax: Frequently Misunderstood
INVESTMENT COMPANIES AND TAX: For personal use only FREQUENTLY MISUNDERSTOOD AN INVESTMENT COMPANY’S SHARE PRICE AND PRE-TAX AND POST-TAX ASSET BACKING ARE AFTER TAX MEASURES AND SHOULD GENERALLY NOT BE COMPARED WITH BEFORE TAX INDEXES (A possible exception is where company paid tax is negligible) B
Slide 13: Consumer Conditions: Are Positive, Excluding Market Softness in May
CONSUMER CONDITIONS: ARE POSITIVE, EXCLUDING For personal use only MARKET SOFTNESS IN MAY Consumer HOUSEHOLD SECTOR: MAJOR DRIVERS OF CONSUMER SPENDING conditions remain UNEMPLOYMENT IMPACT: Positive & should continue HOUSE PRICE IMPACT: Wealth Positive, affordability stretched moderately AUS UNEMPL
Slide 14: Business Conditions: We Remain at the Early Stages of a Cyclical Uptrend
BUSINESS CONDITIONS:WE REMAIN AT THE EARLY For personal use only STAGES OF A CYCLICAL UPTREND BUSINESS SECTOR: MAJOR DRIVERS OF ACTIVITY Business activity trends remain CONSUMER SPENDING: Positive notwithstanding stimulus exit CAPITAL EXPENDITURE: Bottomed and now growing positive, however AUS RETAI
Slide 15: Risks to a Stable Recovery
RISKS TO A STABLE RECOVERY For personal use only • Improved fundamentals have seen some risks RISKS & THREATS dissipate over last 6 months. • Nevertheless Eurozone issues have emerged as the most prominent threat to stability. Higher <-------- Likelihood--------> US Cml Prop • Eurozone actions may u
Slide 16: Value and Earnings
VALUE AND EARNINGS For personal use only THE VALUATION OPPORTUNITY IN THE AUSTRALIAN MARKET IS CURRENTLY LARGE, A RESULT OF THE RECENT ESCALALTION IN PERCEIVED RISK. • Improvement in earnings momentum as employment and economic activity develop in the secondary stages of economic recovery has positi
Slide 17: Current Portfolio
For personal use only CURRENT PORTFOLIO TOP 20 HOLDINGS Materials Telecoms Commonwealth Bank of Australia Information Consumer Disc (Other) Westpac Banking Corporation Technology Utilities ANZ Banking Group Limited National Australia Bank Limited FXJ, NWS, Wesfarmers Limited SVW Macquarie Group Limi
Slide 18: Pricing and NTA
For personal use only PRICING AND NTA WHITEFIELD ASSET BACKING (MAY) Whitefield NTA (May Post Div) Net Assets Invested [Pre-tax asset $3.50 Inv estment return backing] $3.24 $3.00 being generated on additional assets Net Assets after all tax if portfolio $2.50 relativ e to share price realised in en
Slide 19: Conclusion
CONCLUSION For personal use only • Employment, retail spending, business activity, and business profits are all likely to be higher in most economies in six months time than in the last six months. • Markets may remain fearful of Eurozone debt issues, until sufficient evidence of economic progress e