Whitefield Industrials Limited · ASX:WHF
Whitefield Industrials — Non-Deal Roadshow (November 2009)
19 slides from Whitefield Industrials's roadshow presentation, Nov 23, 2009
Slide 1: Whitefield & Sylvastate Update Nov 2009
For personal use only Listed Investment Companies WHITEFIELD & SYLVASTATE UPDATE Nov 2009 WHITEFIELD 1 SYLVASTATE ▼▼ ▼▼
Slide 2: Our Objectives
OUR OBJECTIVES For personal use only • TWO FUNDAMENTAL OBJECTIVES A. To produce a sound long term rate of return from investment in a carefully managed portfolio of listed Australian (industrial) shares IN DICATIVE MANAGEMENT FEE R ANGES B. To provide investors with R etail Managed Fun ds (Aust Shar
Slide 3: Investment Strategy
INVESTMENT STRATEGY For personal use only Strategy: A style neutral strategy based on the fundamental analysis of earnings and valuation Core of Research & Analysis We utilise a defined analytical methodology which seeks to obtain a qualitative and quantitative portrait of the short, medium and long
Slide 4: Investment Outcomes: Sylvastate
INVESTMENT OUTCOMES: SYLVASTATE For personal use only • SYL portfolio returns for the FYTD were just over 3% above the All Industrials Accumulation (XJIAI) for the full financial year to 31 August Primary return drivers were: 2009 Cochlear, CSL, Resmed, Woolworths, Challenger, the • EPS fell by 27%
Slide 5: Investment Outcomes: Whitefield
INVESTMENT OUTCOMES: WHITEFIELD For personal use only • WHF portfolio returns for the financial year to date (7 months) are Return drivers YTD are: 37.69%, which is 0.67% above the All Industrials Accumulation Index. Positive relative contributions from Challenger, Asciano, Macquarie, Brambles, • WH
Slide 6: Consumer Conditions Are Improving
CONSUMER CONDITIONS ARE IMPROVING For personal use only The major drivers of consumer wealth are steadily improving, HOUSEHOLD SECTOR: MAJOR DRIVERS OF CONSUMER SPENDING with unemployment proving far more UNEMPLOYMENT IMPACT: Significant Positive, as employment improves HOUSE PRICE IMPACT: Positive,
Slide 7: Business Activity Is Following the Consumer
BUSINESS ACTIVITY IS FOLLOWING THE CONSUMER For personal use only Corporate activity in Aust is starting to BUSINESS SECTOR: MAJOR DRIVERS OF ACTIVITY generate momentum, with larger businesses CONSUMER SPENDING: Moderate Positive CAPITAL EXPENDITURE: Bottomed and now growing faster to benefit than s
Slide 8: Risks to the Recovery
RISKS TO THE RECOVERY For personal use only • With unemployment at multi-decade highs in the RISKS & THREATS US and Europe, economic conditions in Japan poor, and developed economy government debt high, a moderate degree of risk remains. Higher <-------- Likelihood--------> Lower Asian Deflation Im
Slide 9: Value & Earnings
VALUE & EARNINGS For personal use only There are pockets of value and growing earnings momentum in the Australian market. • Greatest value lies in the lagged recovery stocks such as Infrastructure, Media and those impacted by currency • Evidence of a growing advertising spend, a cyclical uplift in c
Slide 10: The 2010 Outlook
THE 2010 OUTLOOK For personal use only Economic fundamentals and economic news flow are likely to show continuing progressive improvements as we move through 2010. • News flow on employment (although a lagging indicator), retail sales, construction, manufacturing outcomes, and GDP are likely to be s
Slide 11: Implications for Stocks and Sectors: Banking, Non-Bank Financials
IMPLICATIONS FOR STOCKS AND SECTORS For personal use only BANKING NON-BANK FINANCIALS Value: Value: Value modestly above current levels at long term Value moderately above current levels as market margins and volumes, with greatest upside in NAB activity recovers. given its higher risk UK assets. Ea
Slide 12: Implications for Stocks and Sectors: Insurers, Media
IMPLICATIONS FOR STOCKS AND SECTORS For personal use only INSURERS MEDIA Value: Value: Modest upside in Australian insurers, and more significant Offers some of the largest valuation upside in the Aust market. undervaluation emerging in QBE. Investors have been slow to embrace the sector given the l
Slide 13: Implications for Stocks and Sectors: Gaming, Retailing & Staples
IMPLICATIONS FOR STOCKS AND SECTORS For personal use only GAMING RETAILING & CONSUMER STAPLES Value: Value: Moderate valuation upside across the sector Moderate value in staples Reflects current regulatory uncertainties Discretionary valuations are mixed Limited upside in food & beverage but T/O tal
Slide 14: Implications for Stocks and Sectors: Healthcare, Infrastructure
IMPLICATIONS FOR STOCKS AND SECTORS For personal use only HEALTHCARE INFRASTRUCTURE Value: Value: Moderate longer term upside. Large valuation opportunities Currency a major headwind in the near term. Market metrics reflective of tight credit markets and risk aversion Sector re-rating underway, more
Slide 15: Implications for Stocks and Sectors: Industrials, Telecoms & Utilities
IMPLICATIONS FOR STOCKS AND SECTORS For personal use only OTHER INDUSTRIALS TELECOMMUNICATIONS & UTILITIES Value: Value: Transport & Logistics undervalued Valuations are relatively full except TLS Contractors undervalued, strong business momentum Value destruction a key theme still Earnings: Airline
Slide 16: Implications for Stocks and Sectors: Materials, Mining & Energy
IMPLICATIONS FOR STOCKS AND SECTORS For personal use only MATERIALS METALS, MINING & ENERGY Value: Value: BLD and BSL undervalued Limited upside in large miners and energy on value. CSR and JHX fully valued Becomes an interesting proposition if the $USD turns due to rising economic activity. Earning
Slide 17: Current Portfolios
CURRENT PORTFOLIOS For personal use only Telecoms Utilities Consumer Disc TOP 20 HOLDINGS Materials (Other) Commonwealth Bank of Australia Information Westpac Banking Corporation Technology National Australia Bank Limited FXJ, NWS, Australia and New Zealand Banking Group Limited Woolworths Limited A
Slide 18: Pricing & NTA
PRICING & NTA For personal use only WHITEFIELD PRICE AND ASSET BACKING 6.00 6.00 5.00 5.00 Whitefield NTA (Oct Post Div) NTA Before Deferred Tax on Unrealised Gains $3.66 4.00 4.00 NTA After all Tax $3.57 3.00 3.00 2.00 2.00 SYLVASTATE PRICE AND ASSET BACKING 1.00 1.00 6.00 6.00 0.00 0.00 1993 1995
Slide 19: Conclusion
CONCLUSION For personal use only INVESTMENT • We are likely to see a steady pattern of progressively better economic news flow as 2010 develops • Earnings of many companies will be coming off a very low base • Earnings momentum will steadily build as economic fundamentals improve and companies and a
Whitefield Industrials — Non-Deal Roadshow (November 2009) on 6ix