Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — FY2021 Earnings Presentation
25 slides from Plato Income Maximiser's earnings presentation, September 2021
Slide 1: Company Full Year FY2021 Results
COMPANY FULL YEAR FY2021 RESULTS PLATO INCOME MAXIMISER LIMITED ASX: PL8 1
Slide 2: Disclaimer
Disclaimer Note: Past performance is not a reliable indicator of future performance. This communication has been prepared by Plato Income Maximiser Limited ABN 63 616 746 215 (PL8). Nothing contained in this communication constitutes investment, legal, business, taxation or other advice. This commun
Slide 3: Agenda
Agenda 01 PL8 investment strategy and performance 02 Market update 03 Questions 3
Slide 4: PL8 investment strategy and performance
PL8 investment strategy and performance 4
Slide 5: FY2021 sees the revival of dividends
FY2021 SEES THE REVIVAL OF DIVIDENDS COMPARED TO FY2020’S NEGATIVE IMPACT BY COVID-19 • FY21 operating profit after tax of $73.0 million • Total dividends of $0.048 per share, equivalent to distributed yield of 6.2%1,4. Monthly full franked dividends increased 12.5% to $0.0045 per share from July 20
Slide 6: PL8 investment portfolio performance
PL8 investment portfolio performance PERFORMANCE TO 30 JUNE 2021 AFTER FEES AND COSTS* Since Half-Year 12 Months Inception p.a.** Including Franking (28/4/2017) Portfolio 11.9% 26.9% 10.5% S&P/ASX200 Tax 13.5% 29.1% 10.7% Exempt Active -1.6% -2.2% -0.2% *Inclusive of the net impact of GST and Reduce
Slide 7: PL8 delivering high income
PL8 delivering high income 12 month realised yield* 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% RBA Cash Rate S&P/ASX 200 PL8 CASH 0.2 3.1 4.3 FRANKING 0.0 1.0 1.9 *to 30 June 2021, Plato, Bloomberg 7
Slide 8: Chart of Plato Income Performance
Chart of Plato Income Performance Plato Aust. Shares Income Fund v S&P/ ASX200 Accumulation Series (incl. Franking Credits) 3.30 2.80 2.30 1.80 1.30 0.80 Sep-2011 Sep-2012 Sep-2013 Sep-2014 Sep-2015 Sep-2016 Sep-2017 Sep-2018 Sep-2019 Sep-2020 Plato Australian Shares Income Fund Total Net Return (in
Slide 9: Delivering consistent monthly income
Delivering consistent monthly income INCREASED MONTHLY DIVIDENDS TO $0.0045 PER SHARE MONTHLY DIVIDENDS PAID 0.6 0.5 0.4 0.3 0.2 0.1 0 Jul-18 Jul-19 Jul-20 Jul-21 Nov-17 Apr-18 May-18 Jun-18 Apr-20 May-20 Jun-20 Apr-21 May-21 Jun-21 Aug-18 Nov-18 Apr-19 May-19 Jun-19 Aug-19 Nov-19 Aug-20 Nov-20 Aug-
Slide 10: PL8 NTA performance breakdown for FY2021
PL8 NTA performance breakdown for FY2021 PRE-TAX NTA PER PL8 SHARE* + $0.223 - $0.001 - $0.048 $1.20 $1.133 $1.15 $1.10 $1.05 $1.00 $0.959 $0.95 $0.90 Pre-tax NTA Portfolio Company Dividends paid Pre-tax NTA 1 Jul 2020 performance expenses 30 Jun 2021 Source: Plato. *Excludes franking credits. 10
Slide 11: Price has closely tracked NTA
Price has closely tracked NTA PL8 PRICE VERSUS NTA SINCE LISTING $1.40 $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 May-17 Jul-17 Mar-18 May-18 Jul-18 Mar-19 May-19 Jul-19 Mar-20 May-20 Jul-20 Mar-21 May-21 Jul-21 Nov-17 Nov-18 Nov-19 Nov-20 Sep-17 Jan-18 Sep-18 Jan-19 Sep-19 Jan-20 Sep-20 Jan-21 Share price
Slide 12: Market Update
Market Update 12
Slide 13: RBA forecasts three years of record low 0.1% cash rate
RBA forecasts three years of record low 0.1% cash rate OFFICIAL RBA CASH RATE EXPECTATIONS – EVEN LOWER FOR LONGER RBA cash rate 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Oct-2005 Jul-2006 Jul-2009 Jul-2012 Jul-2015 Oct-2017 Jul-2018 Jul-2021 Oct-2008 Oct-2011 Oct-2014 Oct-2020 Oct-2023 Apr-2007
Slide 14: Yields on all asset classes have fallen
Yields on all asset classes have fallen BUT NOTE THE RECENT INCREASE Plato Aussie Income Fund (gross normalised) S&P200 Gross CashRate 12 Mth Term Deposit 3yr BBB Credit 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Aug-2015 Aug-2020 Jul-2013 May-2014 Jul-2018 May-2019 Oct-2014 Mar-2015 Sep-2017 Oct-2
Slide 15: Tax effective buy-backs can be very advantageous
Tax effective buy-backs can be very advantageous CBA BUYBACK – WORTH 14% AFTER TAX FOR ZERO TAX INVESTORS • A$6bn off market buyback - >3.5% of shares on issue • Worth 14% for pensioners for every share successfully tendered • Possibly lower scale back given its profitability is marginal for 15% tax
Slide 16: Big Aussie income stocks doing it tough!
Big Aussie income stocks doing it tough! 6 STOCKS ACCOUNT FOR NEARLY HALF OF ALL DIVIDENDS Price Performance % of Gross Dividend Income - FY21 1.30 1.20 1.10 BHP Group 1.00 Commonwealth Bank Fortescue Metals 0.90 ANZ National Australia Bank 0.80 Rio Tinto 0.70 Other 0.60 0.50 28/04/2017 28/04/2018 2
Slide 17: Largest Contributors to Income
Largest Contributors to Income YEAR TO 30 JUNE 2021 Top 10 Contributors to Excess Income Investment Reasoning (Last 12mths) Excess Income Return Capital Income Stock Yield Run up Value Momentum Reasoning (%) (%) (%) (%) Increased yield, good total return, Fortescue Metals 0.49 94.0 68.5 25.5 P P P P
Slide 18: Largest Contributors to Active Performance
Largest Contributors to Active Performance YEAR TO 30 JUNE 2021 Top 10 Contributors To Active Performance (Last 12mths) Investment Reasoning Active Return Capital Income Stock Performance Yield Run up Value Momentum Reasoning (%) (%) (%) (%) Good business momentum and price sentiment at reasonable F
Slide 19: Dividend Traps
Dividend Traps YEAR TO 30 JUNE 2021 Dividend Traps Investment Reasoning Div’d Cut Return Stock Date of Divd Yield Runup Value Momentum Reasoning (%) (%) Poor business momentum, suffering from Covid related Insurance Australia Aug-20 -100% -6.6 P O O write downs and business interruption claims. Poor
Slide 20: Winning by not losing - avoiding dividend traps
Winning by not losing - avoiding dividend traps AGL ENERGY UP TO 13% GROSS DIVIDEND YIELD 20.00 14.00% 18.00 13.00% 16.00 12.00% Historical Yield (%) Price 14.00 11.00% 12.00 10.00% 10.00 9.00% 8.00 8.00% Price (LHS) Historical Gross Yield (RHS) 20
Slide 21: Results season August 2021 - Dividends
Results season August 2021 - Dividends EARNINGS UP AND DIVIDENDS EVEN MORE • Over $38bn in dividends have been declared, $17bn more than last year and $10bn more than in 2019. 2020 AND 2021 CHANGE IN DIVIDENDS PCP • Strong dividend increases: Average Median* Mkt Cap Weighted Average 91.3% – BHP (263
Slide 22: Dividend Outlook
Dividend Outlook LARGE DIVIDEND PAYERS Good Bad Ugly Source: Plato, Bloomberg, S&P200 22
Slide 23: Asset Class Outlook for Income
Asset Class Outlook for Income FORECAST 12 MONTH INCOME AS AT 01/09/2021 31/12/2020 2/03/2021 1/09/2021 6% 5% 4% 3% 2% 1% 0% Official Overnight 10yr Aust Bonds Term Deposits* Company BB MSCI World ex REITs Aust Equities Cash Credit* Aust (Gross) Source: Plato, Bloomberg, *RBA The above forecast may
Slide 24: The income summary
The income summary Bad news: Interest rates to remain at historic lows – 2-3 years of bad news for retirees in term deposits Good news: Dividends are rebounding strongly – Plato dividend cut model returns to normal – Strong dividends from iron ore miners and banks – Take advantage of tax effective b
Slide 25: Questions
Questions THANK YOU 25
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