Whitefield Industrials Limited · ASX:WHF
Whitefield Industrials — Whitefield — Investor Presentation (March 2015)
24 slides from Whitefield Industrials's investor presentation, Mar 26, 2015
Slide 1: Cover letter to ASX: Whitefield March 2015 Presentation
th 26 March 2015 Manager of Company Announcements For personal use only ASX Limited Level 6 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Whitefield Limited – March 2015 Presentation Please find attached our March 2015 Update. The presentation, along with an audio commentary by the Chief Executive
Slide 2: Whitefield Limited Update March 2015
For personal use only UPDATE MAR 2015 Listed Investment Company WHITEFIELD LIMITED March 2015 0
Slide 3: Disclaimer
DISCLAIMER For personal use only General, Limited Commentary: This presentation contains information about Whitefield and the markets in which it operates. The presentation is limited in scope and accordingly may not contain all the information necessary for an investor to make an investment decisio
Slide 4: Why invest in Whitefield? Broad exposure to Australian industrial growth
WHY INVEST IN WHITEFIELD?1 A BROAD EXPOSURE TO AUST INDUSTRIAL ECONOMIC GROWTH For personal use only Founded in 1923, Whitefield has a long history and solid track record of delivering value to its shareholders. Holders of Whitefield’s Ordinary Shares have received regular dividends and growth in th
Slide 5: Why invest in Whitefield? An efficient structure
WHY INVEST IN WHITEFIELD?1 AN EFFICIENT STRUCTURE For personal use only Whitefield’s operating structure seeks to emphasise the qualities of prudential control and specialisation. Whitefield’s Board contains a majority of independent directors and explicitly focuses on prudential control and review
Slide 6: Why invest in Whitefield? An earnings stream which has grown over time
WHY INVEST IN WHITEFIELD? AN EARNINGS STREAM WHICH HAS GROWN OVER TIME For personal use only AND WHICH SUPPORTS LONG TERM CAPITAL VALUE Note: Past performance reflects the specific circumstances and decisions that transpired across the time frames shown. Past performance may not be indicative of the
Slide 7: Recent outcomes: Earnings
RECENT OUTCOMES EARNINGS For personal use only The dividend momentum (which in turn drives our earnings) appears strongest at this time in the healthcare, property and financial sectors and selected industrial stocks over the next year. 5
Slide 8: Recent outcomes: Dividends
RECENT OUTCOMES DIVIDENDS For personal use only Full year EPS is expected to be approaching / close to DPS 6
Slide 9: Recent outcomes: Costs
RECENT OUTCOMES COSTS For personal use only Whitefield’s Management Expense ratio (MER) has remained at approximately 0.35% across the last year. Whitefield continues to provide retail investors with one of the lower cost avenues to invest in a managed portfolio of Australian Shares. 7
Slide 10: Management expenses: cost / return / service balance
MANAGEMENT EXPENSES COST / RETURN / SERVICE BALANCE For personal use only Large differences in management cost have a material impact over the long term. Small differences have limited impact on value, and where well utilised may assist in the delivery of returns and service. IMPACT OF MANAGEMENT 10
Slide 11: Returns: short and long term data
INVESTMENT RETURNS SHORT AND LONG TERM DATA For personal use only Outright Returns: Exceptionally strong over last 3 years Industrials Tilt: Has delivered 8% per annum higher performance than broad market over recent years Pre-Tax Asset Backing: Has benefitted from a small level of leverage and low
Slide 12: Returns: short and long term data
INVESTMENT RETURNS SHORT AND LONG TERM DATA For personal use only Note: Past performance reflects the specific circumstances and decisions that transpired across the time frames shown. Past performance may not be indicative of the future, and should not be relied upon as a guide or guarantee of futu
Slide 13: Returns: long term data
INVESTMENT RETURNS LONG TERM DATA For personal use only The long term differential between the performance of industrials and resources stocks has widened significantly. Whitefield and the ASX200 Industrials Index XJIAI exclude resources. The ASX200 Index - XJOAI includes resources. Note: Past perfo
Slide 14: Approach: Investment strategy
INVESTMENT APPROACH INVESTMENT STRATEGY For personal use only Whitefield targets a small number of sensible objectives. Our ability to satisfy these objectives on a repeatable basis over the long term, is supported by the disciplined structure of our investment process. Whitefield seeks to own a por
Slide 15: Approach: Core investment values
INVESTMENT APPROACH CORE INVESTMENT VALUES For personal use only Quality increases the propensity for outcomes to exceed market expectations, a vital contributor to the strength of investment return. The quality of a business is fundamentally important to an investor. Over the long term businesses b
Slide 16: Approach: Core investment values
INVESTMENT APPROACH CORE INVESTMENT VALUES For personal use only The pervasiveness of human behavioural bias is a fundamentally important influence on business cycles and investment markets. The tightly structured and quantitative elements of our investment process are designed to avoid many of the
Slide 17: Approach: Investment process
INVESTMENT APPROACH INVESTMENT PROCESS For personal use only Whitefield believes that consistent and successful investment outcomes can be provided with the greatest reliability through a defined and disciplined process. Our investment process has five stages: Raw Data Collection We utilise a range
Slide 18: Approach: Our people
INVESTMENT APPROACH OUR PEOPLE For personal use only WHF BOARD 4 Person, 3 Non-Exec FRONT OFFICE INVESTMENT TEAM 4 Person IT & OFFICE ADMIN 6 Person BACK OFFICE 6 Person 16
Slide 19: Portfolio as at Feb 2015
INVESTMENT PORTFOLIO AS AT 28 FEB 2015 For personal use only Over the last three years our portfolio has given greater emphasis than the market to non-bank financials and stocks with global operations. Over recent months the portfolio has broadened, and carries more emphasis towards mid-capitalisati
Slide 20: Portfolio as at Feb 2015
INVESTMENT PORTFOLIO AS AT 28 FEB 2015 For personal use only 18
Slide 21: Other corporate items: Bonus share plan
OTHER CORPORATE ITEMS BONUS SHARE PLAN For personal use only BONUS SHARE PLAN : KEY FEATURES The Bonus Share Plan is a convenient means of increasing a shareholder’s investment in Whitefield. It provides an alternative to the DRP that may suit the tax status of some shareholders. RECEIPT OF A holder
Slide 22: Bonus share plan: key features (continued)
OTHER CORPORATE ITEMS BONUS SHARE PLAN For personal use only BONUS SHARE PLAN : KEY FEATURES ContinuedD APPLICABILITY While Whitefield is not able to provide income tax advice to specific shareholders, it is likely that FOR DIFFERENT the Bonus Share Plan may be of interest to shareholders subject to
Slide 23: Other corporate items: Share purchase plan
OTHER CORPORATE ITEMS SHARE PURCHASE PLAN For personal use only SHARE PURCHASE PLAN : GENERAL Whitefield has announced a Share Purchase Plan which will be available to existing ordinary shareholders. PRICING Ordinary shareholders on the register at 17 March, 2015 will be able to apply for up to $15,
Slide 24: Conclusion & outlook, March 2015
CONCLUSION & OUTLOOK MARCH 2015 For personal use only EARNINGS: At this time, we continue to expect the majority of our investments to show a modest level of earnings growth across the 2015 calendar year which in turn is likely to flow via higher dividend payments into our earnings. INCOME TAX: With