Whitefield Industrials Limited · ASX:WHF
Whitefield Industrials — Whitefield — Shareholder Meeting (July 2018)
20 slides from Whitefield Industrials's shareholder meeting presentation, Jul 26, 2018
Slide 1: AGM Whitefield Limited 26 July 2018
For personal use only AGM WHITEFIELD LIMITED 26 JULY 2018 0
Slide 2: Important Information
IMPORTANT INFORMATION 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 investm
Slide 3: Building shareholder wealth through the compounding of reliable outcomes
WHITEFIELD: BUILDING SHAREHOLDER WEALTH THROUGH THE For personal use only COMPOUNDING OF RELIABLE OUTCOMES Holders of Whitefield’s Ordinary Shares have received regular dividends and growth in the capital value of their investment over many Founded in 1923, Whitefield has decades. An investment of $
Slide 4: Whitefield provides investors with an efficient structure
WHITEFIELD: BUILDING SHAREHOLDER WEALTH THROUGH THE For personal use only COMPOUNDING OF RELIABLE OUTCOMES Whitefield’s Board contains a majority of independent directors and explicitly Whitefield’s operating structure focuses on prudential control and review of the company’s operations. seeks to em
Slide 5: Whitefield's Investment Strategy
WHITEFIELD’S INVESTMENT STRATEGY A SYSTEMATIC PROCESS DESIGNED TO DELIVER For personal use only STRENGTH OF RETURN WITH RELATIVELY LOW RISK Whitefield seeks to own a portfolio of businesses capable of maintaining and expanding their earnings over an extended period, where that positive outlook is ei
Slide 6: Whitefield: Where We Invest
WHITEFIELD: WHERE WE INVEST AN EXPOSURE TO THE AUSTRALIAN ECONOMY THROUGH ASX LISTED INDUSTRIAL SHARES For personal use only Australia: a higher growth, high affluence economy Australia remains an attractive living destination relative to many other countries as Australia is the result of climate, g
Slide 7: Portfolio emphasising industrials and staples versus banks and asset plays
The portfolio is emphasising industrials and staples versus banks and asset plays For personal use only 6
Slide 8: Benefits of investing in Australian industrial shares
Benefits of investing in Australian For personal use only industrial shares Industrials & Resources since 1979 140,000 Industrials Accum. Resources Accum. 120,000 100,000 80,000 60,000 40,000 WHF20,000 Update0 Feb 18 1979 1980 1981 1982 1983 1984 1985 1986 1987 1988 1989 1990 1991 1992 1993 1994 199
Slide 9: Australian industrial companies likely to benefit from local demographics
Australian industrial companies are likely to benefit from local demographics For personal use only 8
Slide 10: Chapter of The China Story will benefit Australian industrial companies
Chapter 2 of “The China Story” will benefit Australian industrial companies For personal use only 9
Slide 11: World responding to climate change through energy efficiency
The world is responding to climate change through energy efficiency and alternatives to fossils fuels For personal use only 10
Slide 12: 2018 Outcomes: Earnings & Asset Backing
2018 OUTCOMES EARNINGS & ASSET BACKING For personal use only Earnings per share amounted to 16.9 cents in 2018. EPS grew to 17.8 cents, up from 16.9 cps. EPS: Distribution maintained or grown across approximately 80% of holdings (Prior yr 80%) Up 5.3% Highest growth in distributions from CIMIC, Aust
Slide 13: 2018 Outcomes: Earnings & Asset Backing, long term perspective
2018 OUTCOMES EARNINGS & ASSET BACKING For personal use only A long term perspective 1970 - Present Underlying earnings have underpinned the consequent growth in asset backing over time 12
Slide 14: An Efficient Structure: Cost / Return / Service Balance
AN EFFICIENT STRUCTURE COST / RETURN / SERVICE BALANCE For personal use only WHITEFIELD AIMS TO OFFER AN EFFICIENT BALANCE BETWEEN COST, RETURN AND SERVICE Whitefield’s Operating Expense ratio (OER) was 0.40% in 2018. Efficient At this level it continues to provide retail investors with one of the l
Slide 15: 2018 Outcomes: Dividends
2018 OUTCOMES DIVIDENDS For personal use only WHF declared / paid fully franked dividends of 17.75 cents per ordinary share for 2018. Ordinary WHF increased its dividend from 8.5cps per half year to 8.75 cps (HY) and 9.00 cps (at the full year). Dividends & EPS This represents the company’s 28th con
Slide 16: Recent Outcomes: Investment Returns
RECENT OUTCOMES INVESTMENT RETURNS For personal use only Reliable outcomes over many decades In line with our objective, Whitefield’s investment portfolio has delivered returns similar or better than its Long Term benchmark index over an extended period 2018 was a soft year of outright return for th
Slide 17: Recent Outcomes: Investment Returns
RECENT OUTCOMES INVESTMENT RETURNS For personal use only 16
Slide 18: Price and NTA
PRICE AND NTA For personal use only As at 31 Mar 2018 Asset Backing Pre Deferred Tax $4.79 ; Post-Deferred Tax $4.46 Share price increasingly trading between pre-deferred tax and post-deferred tax asset backing Commentary Recent and expected growth in dividend likely to be contributing positively 17
Slide 19: Convertible Resettable Preference Shares
CONVERTIBLE RESETTABLE PREFERENCE SHARES For personal use only Initial Reset Date 30 November 2018 Company may: a. Reset the CRPS for a further term at a new dividend rate and conversion discount b. OR Convert each $100 CRPS into $100-$103.50 of Ordinary Shares c. OR Redeem CRPS for $100 each What O
Slide 20: Conclusion
CONCLUSION For personal use only A solid year of earnings growth for WHF in 2018. Macro-economic conditions likely to dominate into 2019. 2017/18 saw moderate growth in earnings across the majority of Whitefield’s portfolio 28th consecutive year of increasing or maintaining WHF’s ordinary dividend T