Regal Partners Global Investments Limited · ASX:RG1
Regal Partners Global Investments — VGI Partners Global Investments — FY2021 Earnings Presentation
31 slides from Regal Partners Global Investments's earnings presentation, Aug 20, 2021
Slide 1: FY21 Investor Briefing Presentation (ASX announcement)
VGI Partners Global Investments Limited ABN 91 619 660 721 39 Phillip Street Sydney NSW 2000 Australia T. +61 2 9237 8923 www.vgipartners.com/lics/vg1 20 August 2021 ASX Market Announcements ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 BY ELECTRONIC LODGEMENT FY21 Investor Briefing P
Slide 2: Authorised for release and contact information
Authorised for release by: Ian Cameron, Company Secretary Investor contact information: Media contact information: Ingrid Groer, CFA Max Hewett Head of Investor Relations GRACosway VGI Partners Global Investments Limited Phone: +61 432 332 215 Phone: 1800 571 917 (inside Australia) Email: mhewett@gr
Slide 3: Global & Asian Fund Updates
VGI Partners Global & Asian Fund Updates FY21 Investor Briefing – 20 August 2021
Slide 4: FY21 Summary for VG1 and VG8
FY21 Summary for VG1 and VG8 VGI Partners Global Investments (VG1) VGI Partners Asian Investments (VG8) FY21 net profit after tax: $153.9m FY21 net profit after tax: $58.8m FY21 portfolio return (net of fees and pre-tax): 25.6% FY21 portfolio return (net of fees and pre-tax): 15.0% FY21 total shareh
Slide 5: Key VG1 and VG8 Initiatives
Key VG1 and VG8 Initiatives 1. VG1 and VG8 Dividend Policy Targets Intention to target a fully franked dividend yield of 4% p.a. VG1 final dividend of 5.5c fully franked; VG8 final dividend of 5.5c fully franked 2. Enhanced Adviser Relations and Shareholder Communication Recent hire of CEO and Sydne
Slide 6: The Manager
VGI PARTNERS VGI Partners The Manager
Slide 7: Our Philosophy
Our Philosophy Absolute return focus – A long-term investment Avoid permanent loss of 10-15% p.a. horizon provides a capital compounding target, competitive advantage through the cycle Winners are rare – Size of FUM provides We are stewards of deep research flexibility capital – total staff results
Slide 8: Master Fund: Capital Preservation Performance in Up/Down Months
VGI Partners Master Fund: Capital Preservation Performance in Up/Down Months Compound Annual Return (Net) Performance in Performance in "Up Market" Months "Down Market" Months 13.8% 14% 12.0% 2.9% 12% 3% 2.3% 10% 2% 8% 1% 6% 0% (1%) 4% (0.8%) (2%) 2% (3%) (2.3%) 0% Average VGI Average MSCI Average V
Slide 9: Portfolio Construction Process
Portfolio Construction Process Identify unique businesses Analyse Build portfolio Earnings growth is the driver of stock Build detailed model using VGI Concentrated long investments: performance – we call businesses with Partners’ proprietary template Typically, top 5 holdings consistent earnings gr
Slide 10: Portfolio Construction Process
Portfolio Construction Process Long Short Quantitative Filters: Proprietary Screen: ROE, ROIC, liquidity Frauds, fads or failures Qualitative Filters: Shorts Identified: Brands, industry, company meetings (500 per year average) Red flags (10+) – insider selling, restatements, senior departures etc T
Slide 11: VGI Partners Global Investments Limited (ASX:VG1)
VGI Partners Global Investments Limited (ASX:VG1)
Slide 12: VG1 Portfolio Update
VG1 Portfolio Update As at 31 July 2021 Portfolio Value $999m Long Portfolio by Location of Exchange Listing2 Month End Exposures1 Long Equity Exposure 107% Short Equity Exposure (18%) Net Equity Exposure 89% North America 60% Net Currency Exposure AUD 100% UK/Europe 28% Investments Asia 12% Number
Slide 13: VG1 Portfolio Update: Top 10 Long Investments
VG1 Portfolio Update As at 31 July 2021 Portfolio Value $999m Long Portfolio by Sector Top 10 Long Investments Sector % of Portfolio Amazon.com Inc. eCommerce & Internet 14% eCommerce & Internet 29% Mastercard Inc. Payments 8% Information Technology 21% Cie Financière Richemont SA Luxury 7% Consumer
Slide 14: Pinterest Portfolio Holding Update
Pinterest Portfolio Holding Update First purchased June 2020 $95 Pinterest Share Price Shifting of focus to monetisation $85 Still early in this transition $75 Recent result very positive for monetisation trends $65 Weakness driven by unwind of Price (USD) $55 COVID usage boost Jun-20: $45 Initial P
Slide 15: Pinterest Users Have High Purchase Intent
Pinterest Users Have High Purchase Intent 60% Pinterest 50% 40% Portfolio Holding Update 30% 20% 10% Highly differentiated platform 0% Pinterest Facebook Instagram Twitter LinkedIn Snapchat Moat has been tested and proven % of users finding/shopping products on platform Users have intent – very valu
Slide 16: Pinterest Executing on a Huge Addressable Market
Pinterest Executing on a Huge Addressable Market $2,000m 5% Pinterest 4% Portfolio Holding Update $1,500m 3% $1,000m 2% Revenue growth driven by monetisation – attracting $500m 1% advertisers to the unique platform $0m 0% Investment in salesforce and technology are driving 2016 2017 2018 2019 2020 t
Slide 17: VGI Partners Asian Investments Limited (ASX:VG8)
VGI Partners Asian Investments Limited (ASX:VG8)
Slide 18: VG8 Portfolio Update
VG8 Portfolio Update As at 31 July 2021 Portfolio Value $585m Long Portfolio by Regional Exposure – Proxied by Revenue2 Month End Exposures1 Long Equity Exposure 99% Short Equity Exposure (8%) Japan 36% Net Equity Exposure 91% China 15% Net Currency Exposure Americas 13% AUD 100% Other Asia 12% Inve
Slide 19: VG8 Portfolio Update: Top 10 Long Investments
VG8 Portfolio Update As at 31 July 2021 Portfolio Value $585m Long Portfolio by Sector Top 10 Long Investments Sector % of Portfolio Cie Financière Richemont SA Luxury 11% eCommerce & Internet 28% Olympus Corporation Medtech 10% Gaming & Entertainment 17% Nintendo Co. Ltd Gaming & Entertainment 8% L
Slide 20: Yakult Honsha Portfolio Holding Update
Yakult Honsha Portfolio Holding Update Geographic Breakdown of Yakult Bottles Sold Japan 24% Globally recognised brand, category China 17% leader in probiotic beverages Rest of Asia 43% International business with 60% of earnings outside of Japan Americas 14% Unique and sticky distribution Europe 2%
Slide 21: Yakult Honsha Portfolio Holding Update: Penetration
Yakult Penetration Rate Japan 7.5% South Korea 6.0% Yakult Honsha Philippines 3.0% Portfolio Holding Update Australia 1.0% Brazil 0.7% US 0.1% Source: VGI Partners analysis. Significant opportunity to: Grow penetration internationally growth acceleration Introduce premiumisation internationally
Slide 22: Shareholder Engagement
VGI PARTNERS Shareholder Engagement
Slide 23: Shareholder Engagement for VG1 and VG8
Shareholder Engagement for VG1 and VG8 Please Elect Electronic Communications to Stay Informed Quarterly portfolio briefings Monthly NTA commentary Head of Investor Relations Ingrid Groer, CFA Investor Letter each January and July Phone: 1800 571 917 (inside Australia) +61 2 9237 8923 (outside Austr
Slide 24: Questions
VGI PARTNERS Questions
Slide 25: VGI Partners Office Locations
VGI Partners Office Locations Sydney New York Tokyo VGI Partners Limited VGI Partners, Inc. VGI Partners Limited ABN 33 129 188 450 600 Madison Avenue Representative Office 39 Phillip Street Suite 2101 Level 8 Tri-Seven Roppongi Sydney NSW 2000 New York, NY 10022 7-7-7 Roppongi Minato-ku Australia U
Slide 26: Appendix
VGI PARTNERS Appendix
Slide 27: A. VG1 Investment Guidelines
A. VG1 Investment Guidelines Exposure Number of Long Investments Typically 10-25 (10-15 Core) Concentration of Long Investments Top five 40-50% of NAV on average Average Size of Long Investments Start at 1-3% and build to 4-10% of Portfolio’s NAV Single Security Long Investment Limit 15% at purchase
Slide 28: B. VG8 Investment Guidelines
B. VG8 Investment Guidelines Exposure Number of Long Investments Typically 15-30 Concentration of Long Investments Top ten 40-50% of NAV on average Average Size of Long Investments Start at 1-2% and build to 4-8% of Portfolio’s NAV Single Security Long Investment Limit 8% at purchase; maximum of 20%
Slide 29: C. VGI Partners Timeline
C. VGI Partners Timeline 2008 2012 2018 2021 VGI Partners established Launch of VGI Partners Tokyo Office established A$3.2bn FUM1 Offshore Fund 13.8% p.a. New York Office global strategy2 established 2009 2017 2019 Launch of VGI Global Investments VGI lists on ASX (ASX:VGI) VGI Partners Limited (AS
Slide 30: D. VGI Partners Master Fund Returns After All Applicable Fees
D. VGI Partners Master Fund Returns After All Applicable Fees VGI Partners Master Fund Year to 30 June Master Fund Index Relative Net Exposure 2009 (6 months) 2.3% (3.4%) 5.6% 15% 2010 8.3% 5.1% 3.2% 76% 2011 18.4% 3.2% 15.2% 88% 2012 5.4% (0.6%) 5.9% 71% 2013 27.5% 33.1% (5.6%) 77% 2014 9.4% 20.1%
Slide 31: Disclaimer
Disclaimer: VGI Partners Limited (ABN 33 129 188 450) (VGI Partners) is the holder of an Australian Financial Services Licence (No. 321789) and is SEC Registered. VGI Partners is the manager of VGI Partners Global Investments Limited (VG1) (ABN 91 619 660 721). VGI Partners Asian Investments Managem
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