Spheria Emerging Cos. Ltd. · ASX:SEC
Spheria Emerging Cos — H1 FY2021 Earnings Presentation
17 slides from Spheria Emerging Cos's earnings presentation, Mar 2, 2021
Slide 1: Shareholder webinar reminder and presentation on half-year results
Spheria Emerging Companies Limited (Company) Level 35, 60 Margaret Street Sydney NSW 2000 Telephone: 1300 010 311 Email: [email protected] ACN 621 402 588 For personal use only 2 March 2021 By Electronic Lodgement Market Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 D
Slide 2: Half-year FY2021 Results & Portfolio Update
For personal use only Spheria Emerging Companies Limited ASX: SEC Half-year FY2021 Results & Portfolio Update
Slide 3: Agenda
2 For personal use only Agenda 1. SEC Company update 2. Portfolio update 3. Questions
Slide 4: Half-year FY2021 Highlights
3 Half-year FY2021 Highlights Spheria Emerging Companies (ASX: SEC) For personal use only 1HFY21 profit Company performance1 Interim dividend Yield2 $25.6m +35.3% 3.5c 3.1% • 1HFY21 net profit after tax of $25.6m • Company Performance of +35.3%, +15% compared to benchmark3 • Total shareholder return
Slide 5: NTA breakdown for 1HFY21
4 NTA breakdown for 1HFY21 For personal use only $2.50 + $0.594 + $0.005 - $0.003 - $0.025 $2.40 + $0.005 $2.307 $2.30 $2.20 $2.10 $2.00 $1.90 $1.80 $1.731 $1.70 $1.60 Pre-tax NTA Portfolio Tax provided Company Dividends Buy-back Pre-tax NTA - 1 July 2020 performance or paid expenses paid accretion
Slide 6: Dividends
5 Dividends For personal use only Interim dividend of 3.5 cents per share Dividend History 5 1HFY21 Interim Dividend 4 Maiden Final Amount 3.5 cents dividend dividend per share (100% Interim Cents per share (100% 3 franked) franked) dividend Interim (100% dividend franked) Ex-dividend Date 9 March 2
Slide 7: Initiatives to close the discount to NTA
6 Initiatives to close the discount to NTA For personal use only The Board acknowledges the current discount to NTA and is unsatisfactory and remains committed to addressing the discount to NTA through a range of initiatives. • Already executed 6.17m shares (9.3% of the Company) since 1 July 2019. O
Slide 8: Performance History
7 Performance History For personal use only SEC Portfolio performance Portfolio Performance as at 31st Jan 2021 Since Inception Period 1 month 6 month 1 year 2 year (pa) Inception Date (pa) SEC Mandate -0.5% 35.1% 10.2% 13.3% 8.2% 30/11/2017 S&P/ASX Small Ordinaries Accumulation Index -0.3% 18.3% 5.
Slide 9: SEC Portfolio Performance
8 SEC Portfolio Performance For personal use only * Net Portfolio performance = investment performance of mandate after investment management fees but before taxes. Source: Spheria Asset Management
Slide 10: Macro Environment drives risk-taking investment
9 Macro Environment drives risk-taking investment For personal use only No. of stocks with EV/ Sales > 10 300 250 200 150 100 50 0 02/28/02 02/28/01 02/28/03 02/28/04 02/28/05 02/28/06 02/28/07 02/28/08 02/28/09 02/28/10 02/28/11 02/28/12 02/28/13 02/28/14 02/28/15 02/28/16 02/28/17 02/28/18 02/28/1
Slide 11: Central Bank QE continues to drive unusual outcomes
10 Central Bank QE continues to drive unusual outcomes For personal use only Smaller Companies Average Return - Prior 12 Months 200 150 100 50 0 -50 Positive Op CF Negative Op CF • Cash losing businesses have hugely outperformed, a situation we view as unsustainable Chart Source: Bloomberg data: sim
Slide 12: However When the Weighing Machine Operates
11 However When the Weighing Machine Operates For personal use only 20 Year Returns: Positive vs. Negative Cash Flow 800 700 600 500 400 300 200 100 0 -100 Positive Op CF Benchmark - Small Ordinaries Negative Op CF • Back tested portfolio of positive operating cash flow vs. negative operating cash f
Slide 13: Asaleo Care: Picking up cashflows on special
Asaleo Care (ASX:AHY) 12 Picking up cashflows on special For personal use only Essity initially bids $1.26. Receives board approval at $1.45. Initial position acquired c$0.90. • A market leader in personal care (feminine hygiene and incontinence) in the Australian and NZ retail channels and in the s
Slide 14: Corporate Travel Management: Regaining altitude after hitting an airpocket
Corporate Travel Management (ASX:CTD) 13 Regaining altitude after hitting an airpocket For personal use only • CTD has a strong track record of high ROIC growth with solid cash conversion; • The pandemic has seen CTD move to a modest loss-making position but the firm continues to enjoy significant n
Slide 15: Company Positions
14 Company Positions For personal use only Spheria Emerging Companies as at 31st January 2021 Company Name % Portfolio Fletcher Building 4.3 Ht&E Limited 3.9 Mortgage Choice Ltd 3.8 Class Limited 3.7 Seven West Media Ltd 3.7 City Chic Collective 3.6 Healius 3.6 Breville Group Ltd 3.5 Asaleo Care Lim
Slide 16: Questions
For personal use only Questions 15
Slide 17: Disclaimer
16 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 or
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