Spheria Emerging Cos. Ltd. · ASX:SEC
Spheria Emerging Cos — FY2023 Earnings Presentation
18 slides from Spheria Emerging Cos's earnings presentation, Aug 30, 2023
Slide 1: Shareholder webinar reminder and presentation on full year results
Spheria Emerging Companies Limited (Company) Level 25 Australia Square Tower 264 George Street Sydney NSW 2000 Telephone: 1300 010 311 Email: [email protected] ACN 621 402 588 30 August 2023 By Electronic Lodgement For personal use only Market Announcements Office ASX Limited 20 Bridge S
Slide 2: FY23 Results & Portfolio Update
For personal use only Spheria Emerging Companies Limited (ASX:SEC) FY23 Results & Portfolio Update 31 August 2023
Slide 3: Disclaimer
Disclaimer For personal use only Note: Past performance is not a reliable indicator of future Subject to any liability which cannot be excluded under the information is not intended as a securities recommendation or performance. relevant laws, SEC and Spheria disclaim all liability to any person s
Slide 4: Agenda
Agenda 3 For personal use only 1. SEC Company update 2. Portfolio update 3. Questions
Slide 5: SEC
For personal use only SEC Company Update
Slide 6: FY2023 Highlights
5 FY2023 Highlights For personal use only • FY23 net profit after tax of $9.6m • Company Performance of +9.6%, +1.2% compared to benchmark5 of +8.4% (+2.6% p.a. to benchmark since inception) • Total quarterly dividends declared for the year of 9.3 cents per share (fully franked)2 • Includes increase
Slide 7: NTA breakdown for FY23
6 NTA breakdown for FY23 Portfolio performance less dividends paid leads to an increase in NTA per share For personal use only • Pre-tax NTA increased by $0.108 from $2.090 at 1 July 2022 to $2.198 at 30 June 2023 • Post-tax NTA as at 30 June 2023 was $2.225 per share, which was $0.027 higher than p
Slide 8: Dividends
7 Dividends Delivering on the dividend target and increased quarterly dividend target to 5.% p.a. NTA dividend yield • The Company continued to declare quarterly dividends during FY23, initially at a rate of 1.0% of the Company’s post-tax NTA at the end of each calendar quarter until March 2023, and
Slide 9: Performance History
8 Performance History Since inception Company outperformance of 2.6% p.a. SEC Company performance For personal use only SEC Limited Company Performance as at 30 June 2023 Period 1 month 3 month 1 year 3 year (pa) 5 year (pa) Since Inception (pa) Inception Date SEC Ltd. -0.6% 0.5% 9.6% 13.5% 5.2% 6.0
Slide 10: NTA breakdown since IPO
9 NTA breakdown since IPO Portfolio outperformance and dividends are a meaningful driver of shareholder returns since IPO For personal use only • Pre-tax NTA increased by $0.198 from $2.00 at 5 December 2017 to $2.198 at 30 June 2023 • Portfolio performance from a combination of market (benchmark) p
Slide 11: SEC Portfolio Update
For personal use only SEC Portfolio Update
Slide 12: Spheria Asset Management Investment Process
11 Spheria Asset Management Investment Process How our investment process is different For personal use only 1. Focus on quality businesses with risk control overlay • Sustainable free cash flow generation through the cycle 2. Fundamental investment focus • Free cash flow valuation model • Lowly gea
Slide 13: SEC Portfolio Performance
12 SEC Portfolio Performance Strong relative performance in the last two years SEC Portfolio - Net Performance* since Inception 80.0% For personal use only Spheria Index 60.0% Relative Performance 40.0% 20.0% 0.0% -20.0% -40.0% Jul-18 Jul-19 Jan-20 Jan-21 Jan-22 Jan-23 Nov-17 Nov-18 Nov-19 Mar-20 Se
Slide 14: SEC Portfolio - stock attribution
13 SEC Portfolio - stock attribution Spheria Emerging Companies - Attribution - 12 Month - 31 July 2023 3.00 For personal use only 2.50 2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 Owned -1.50 Not Owned -2.00 -2.50 * Red Outline – companies we did not hold during the period Source : Bloomberg Data as at 31s
Slide 15: Top Company Holdings and Sector Exposure
14 Top 10 Company Holdings and Sector Exposure For personal use only Spheria Emerging Companies Limited Spheria Emerging Companies Limited 30.0% Ticker Company Name % Portfolio 25.0% IRE IRESS Limited 4.7 ABC Adbri Limited 4.1 20.0% VGL Vista Group Int Ltd 4.1 15.0% BGA Bega Cheese Ltd 4.1 IVC InvoC
Slide 16: Supply Network: Under the radar
Supply Network (ASX:SNL) 15 Under the radar Cash Flow Conversion (EBITA) Return Metrics 35.0 70% 60% For personal use only 66% 52% 30.0 60% 50% 25.0 50% 41% 39% 38% 40% 37% 35% 20.0 40% 33% 32% 32% 31% 30% 27% 26% 15.0 30% 19% 18% 10.0 20% 20% 5.0 10% 10% 0.0 0% 0% FY09A FY10A FY11A FY12A FY13A FY14
Slide 17: Outlook
16 Outlook • Significant share price volatility during this reporting season – in some cases overreaction For personal use only • Market repeating past cycles of crowding into the "growth" complex for perceived safety • The valuation dispersion providing a significant opportunity for long term inves
Slide 18: Questions
For personal use only Questions
Spheria Emerging Companies — FY2023 Earnings Presentation on 6ix