Whitefield Industrials Limited · ASX:WHF
Whitefield Industrials — Whitefield — Shareholder Meeting (June 2006)
12 slides from Whitefield Industrials's shareholder meeting presentation, Jun 20, 2006
Slide 1: Presentation to the Annual General Meeting June 2006
Listed Investment Company WHITEFIELD LTD Presentation to the ANNUAL GENERAL MEETING JUNE 2006 WHITEFIELD 1
Slide 2: Whitefield
WHITEFIELD Founded: 1923 Objective: 1. To generate an investment return which is In excess of the market return over the ‘ongar term. 2. To provide investors with a structurally efficient investment vehicie. Assets: Sharas listed on the Australian Stock Exchange. Portfolio Strategy: Seeks to provide
Slide 3: Investment Methodology
INVESTMENT METHODOLOGY Research & Analysis Style neutral, valuation and earnings focus; Defined and Struciured process; In house analytical team, *No individual share trait such as growth, value or cash flow quality alone can predict the ultimate return to an investor. Instead we emphasise the prerr
Slide 4: Investment Outcomes: Whitefield
INVESTMENT OUTCOMES: WHITEFIELD Hae ee SLAST 9 BHANCIAL YEARS. Returns in each of the last 3 years have been exceptionally strong in outright terms, significantly above the 20 year average. 20Yrieg 2004 208 oes Whitefield’s predominanily industrials portfolio, outperformed the Ail industrials index.
Slide 5: Investment Outcomes: Efficiency
INVESTMENT OUTCOMES: EFFICIENCY An investment in Aust shares of $100,000 today will grow to $600,000 after tax in 25 years, assuming the long term market average return. A 2% per annum higher MER, however, wili erode $170,000 of value over the 25 years, resuiting in an investment worth only $430,000
Slide 6: Drivers of Investment Return
DRIVERS OF INVESTMENT RETURN Citect Whe ; 96.45% Perpetual Brickworks PBL ig Foodland Amcor Wht Tabcorp Wht Most significant overweight hotdings With the exception of News Corporation and Challenger, our largest overweight holdings generated exceptionally strong returns during the 12 months. News Co
Slide 7: Economic Outlook
ECONOMIC OUTLOOK Significant upwards price pressures and high levels of demand will not exist concurrently for an extended period. + Accommodative monetary policy and a glut of global savings, coupled with a lack of supply have resulted in an extreme upwards movement in underlying materials costs. C
Slide 8: Economic Outlook
ECONOMIC OUTLOOK Trends we are seeing in markets: + Former sources of liquidity are drying up. + Continued upwards interest rate pressure in Japan, US, Eurozone. + Home prices peaking and home equity withdrawal is falling. + Producers becoming aggressive in driving input costs down, or where impossi
Slide 9: Strategic Positions for 2007
STRATEGIC POSITIONS FOR 2007 KEY AIRATEGIC FOS ONS FOR 2006/7 US housing market to ease on rate pressure. Favouring sectors offering insulation from rising costs, and defensible, undervalued earnings streams. Avoiding stocks at significant premiums fo fair value of future earnings, where cost pressu
Slide 10: Share Price and NTA
SHARE PRICE AND NTA WHITERELD LTD: PRICE AND NTA Whitefield NTA (31 May, excluding Dividend 7.7cps) NTA Before Tax $4.34 NTA After Tax $3.93 EE NTAAT GE DT Price WHITEFIELD 10
Slide 11: WHF: Corporate Directions
WHF: CORPORATE DIRECTIONS CORPORATE GOVERNANCE . We expect to maintain our preference for a majority of independent directors, and an independent Chairman, with strengih of experience in LICs, financial markets, and audit, as we consider these characteristics and structure essential for sound pruden
Slide 12: Conclusion
CONCLUSION . Underlying cost pressures and slowing revenue lines to be an increasing focus for markets in 2006/7. . While we do have some concerns as to the broad market direction based on this outlook, WHF has a portfolio which offers a moderate degree of insulation from the more overpriced segment