Whitefield Industrials Limited · ASX:WHF
Whitefield Industrials — Investor Presentation (December 2010)
21 slides from Whitefield Industrials's investor presentation, Dec 2, 2010
Slide 1: Update Nov 2010
For personal use only UPDATE NOV 2010 Listed Investment Companies Whitefield Ltd & Sylvastate Ltd 0
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only The commentary within this update is general investment information only and is limited in scope. It should not be considered to provide a full outline of all information an investor should consider prior to making an investment. The presentation does not
Slide 3: Long Term Objectives
LONG TERM OBJECTIVES For personal use only INVESTMENT OBJECTIVE Whitefield and Sylvastate aim to generate an investment return which is in excess of the return of the All Industrials Accumulation Index over the long term from investment in a portfolio of industrial shares listed on the Australian St
Slide 4: Long Term Objectives: Benefit to Shareholders
LONG TERM OBJECTIVES: For personal use only BENEFIT TO SHAREHOLDERS BENEFITS FROM INVESTMENT RETURN WHF: 10 YEAR RETURNS (returns annualised, returns to Sep 2010) Whitefield 6.2% An investment of $1,000 in Whitefield in 6% PA Post -Tax NTA + Dividends* 1970 would at 30 Sep 2010 be worth Return per a
Slide 5: Investment Strategy and Process
INVESTMENT STRATEGY AND PROCESS For personal use only Whitefield & Sylvastate seek to hold investments which are realistically capable of generating a robust and sufficient rate of investment return through the satisfactory delivery of future earnings over multiple years. While share prices will flu
Slide 6: Investment Strategy and Process
INVESTMENT STRATEGY AND PROCESS For personal use only MONITOR, INVESTIGATE & MODEL & ANALYSE RESEARCH Model, forecast and analyse Economic, Industry, Company & earnings, risks and sensitivities Divisional Data Code Name Market Whitefield Value % NWSLV News Corporation 5,624,966 2.42% SEV Seven Netwo
Slide 7: An Investment in Whitefield Provides…
AN INVESTMENT IN WHITEFIELD PROVIDES… For personal use only INVESTMENT RETURN EFFICIENCY EASE Long track record of One of the more cost efficient The ability to invest by outperformance versus Aust share managed purchasing shares on benchmark index. investment vehicles available the ASX. to investor
Slide 8: Investment Portfolio Outcomes: Whitefield
INVESTMENT PORTFOLIO OUTCOMES For personal use only INVESTMENT PERFORMANCE: Before Tax Returns • WHF portfolio 8.6% three months to Sep 2010 • WHF portfolio (6.2%) six months to Sep 2010 • WHF portfolio 6.2%pa 10 Years to Sep 2010 • 10 Year 0.8%pa higher than ASX200 Industrials Accumulation WHITEFIE
Slide 9: Investment Portfolio Outcomes: Sylvastate
INVESTMENT PORTFOLIO OUTCOMES For personal use only INVESTMENT PERFORMANCE: Before Tax Returns • SYL portfolio (1.5%) 12 months to Aug 10 • SYL 10 Year 6.7%pa to Aug 10 • 10 Year 1.5%pa higher than ASX200 Industrial Accumulation SYLVASTATE: FULL YEAR RETURNS SYL: 10 YEAR RETURNS SYL Portfolio v ASX2
Slide 10: Company Earnings
COMPANY EARNINGS For personal use only EARNINGS • WHF eps +17.5% for the half-year to Sep 2010 • SYL eps (2.5%) for the full year to Aug 2010 • Strong level of earnings growth likely to be experienced through 2011 as dividends from investments are increased and restarted post financial crisis. [For
Slide 11: Shareholder Returns
SHAREHOLDER RETURNS For personal use only INVESTMENT CO’S DISTRIBUTE RETURN TO INVESTORS IN 4 PRIMARY AREAS Returns are transmitted back to shareholders via four channels: • Share price (or asset backing) • Fully franked dividends • Tax paid at the LIC level transmitted by way of a tax credit on LIC
Slide 12: Shareholder Returns
SHAREHOLDER RETURNS For personal use only Total shareholder return for an average shareholder in WHF has been around 2% per annum above the ASX200 Industrials Index over the last decade. Return has been transmitted to investors by share price and asset backing movements, dividends, LIC discount tax
Slide 13: Shareholder Returns
SHAREHOLDER RETURNS For personal use only Outcomes are similar for SYL. SYLVASTATE SHAREHOLDER RETURNS SYL: TOTAL SHAREHOLDER Return Components (to Aug 10) RETURN per annum Sep 99- Aug 10 $300 10% 9% 8.37% Value of Investment per $100 $250 8% 7% 6.42% $200 Aggregation Benefit 6% Share Issue Benefit
Slide 14: Consumer Conditions: Continuing to Improve
CONSUMER CONDITIONS: For personal use only Continuing to improve Consumer conditions remain HOUSEHOLD SECTOR: MAJOR DRIVERS OF CONSUMER SPENDING moderately positive EMPLOYMENT: Positive & should continue HOUSE PRICE IMPACT: Positive impact from recent price rises • Employment and AUS UNEMPLOYMENT RA
Slide 15: Business Conditions: Early Stage in an Upwards Trend
BUSINESS CONDITIONS: For personal use only Early stage in an upwards trend Underlying drivers BUSINESS SECTOR: MAJOR DRIVERS OF ACTIVITY of activity are Underlying drivers remain positive, The outlook is strongly positive, with Capex steadily improving, CONSUMER SPENDING: suggesting we are in an upw
Slide 16: Risks to a Stable Recovery
RISKS TO A STABLE RECOVERY For personal use only RISKS & THREATS • In general, visible risks have diminished in size over the last half year. Higher <-------- Likelihood--------> Lower US Cml • Eurozone sovereign risk issues have to Prop date been addressed. Deflation • The largest potential threat,
Slide 17: Value and Earnings
VALUE AND EARNINGS For personal use only THE AUSTRALIAN MARKET STILL OFFERS A MODERATE VALUATION OPPORTUNITY IN MANY SECTORS COMBINED WITH FAVOURABLE CYCLICAL EARNINGS MOMENTUM • Many stocks and sectors of the Australian market continue to offer valuation upside plus growing earnings momentum driven
Slide 18: Current Portfolio
CURRENT PORTFOLIO For personal use only EXPOSURES CURRENTLY GIVEN EMPHASIS PORTFOLIO COMPONENTS NOV 10 Telco • Major banks Technology Utilities • Retail: JBH, HVN, MYR • Financial: MQG Materials Media • Insurers: QBE • Industrial: SVW, TOL • Infrastructure: AIO, MQA, Map Infrastruct • Media: NWS, FX
Slide 19: Pricing and NTA
PRICING AND NTA For personal use only WHITEFIELD ASSET BACKING SYLVASTATE ASSET BACKING (OCT excluding recent dividend) (OCT excluding recent dividend) $4.00 $4.00 $3.50 Investment return being $3.50 Investment return being $3.00 generated on additional generated on additional $3.00 assets relative
Slide 20: WHF & SYL Merger
For personal use only WHF & SYL MERGER • Whitefield and Sylvastate have announced their intent to merge the two companies together through a Scheme of Arrangement. • Preparations for the Scheme are well progressed and the companies expect to announce Scheme details shortly. • Boards of both companie
Slide 21: Conclusion
CONCLUSION For personal use only INVESTMENT EARNINGS • WHF and SYL expect to see a material increase in their underlying investment income across the next year as companies in which we invest increase their dividend payments. DIVIDENDS TO SHAREHOLDERS • WHF and SYL are in a position to continue to d
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