Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — FY2024 Earnings Presentation
28 slides from Plato Income Maximiser's earnings presentation, August 2024
Slide 1: Company Full-Year FY24 Results
COMPANY FULL-YEAR FY24 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 Company Update 02 Market update 03 Questions 3
Slide 4: PL8 Company Update
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Slide 5: FY24 results highlights
FY24 results highlights CONTINUING TO DELIVER ON COMPANY OBJECTIVES • FY24 operating profit after tax of $65.9 million (+$8.5 million to FY23) • Total dividends of $0.066 per share, equivalent to annualised distributed yield of 7.8%1,4 • Total portfolio return of 13.6%1, equal to benchmark (+0.1% p.
Slide 6: PL8 NTA performance breakdown for FY24
PL8 NTA performance breakdown for FY24 PRE-TAX NTA PER PL8 SHARE* Source: Plato. *Excludes franking credits. Portfolio performance is net of management fees. 6
Slide 7: PL8 investment portfolio performance
PL8 investment portfolio performance PERFORMANCE TO 31 JULY 2024 AFTER FEES AND COSTS PORTFOLIO PERFORMANCE1 3 MTHS 1 YR P.A. INCEPT. P.A. Total return2 5.6% 15.2% 10.1% Income3 2.0% 7.8% 7.6% Benchmark total return2 6.4% 15.0% 10.1% Excess total return2 -0.8% 0.2% 0.0% Excess income3 1.2% 2.7% 2.3%
Slide 8: PL8 delivering high income
PL8 delivering high income *to 31 July 2024, Plato, Bloomberg 8
Slide 9: PL8 portfolio outperforming the Benchmark over full investment cycle
PL8 portfolio outperforming the Benchmark over full investment cycle $500,000 Plato Aust. Shares Income Fund v S&P/ ASX200 Accumulation Series (incl. Franking Credits) $450,000 $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 Sep-16 Sep-17
Slide 10: Delivering consistent monthly income
Delivering consistent monthly income MONTHLY DIVIDENDS STEADY AT HIGHER LEVEL OF $0.0055 PER SHARE Only Australian LIC paying monthly fully franked dividends Source: Plato. While monthly income has been consistent since October 2017, this may change in the future. The declaration of dividends by the
Slide 11: Share price at a premium to NTA
Share price at a premium to NTA PL8 PRICE VERSUS PRE-TAX NTA SINCE LISTING Source: Plato, IRESS. Past performance is illustrative only and not indicative of future performance. 11
Slide 12: Market Update
Market Update 12
Slide 13: Retirees are different
Retirees are different • Retirees are different to accumulators • They need to live off the income from their investments: • Investment income replaces regular salary • They are taxed differently: • The first $1.9m in pension phase superannuation is tax free whereas accumulation superannuation is ta
Slide 14: Pension phase super tax rates are different
Pension phase super tax rates are different (what about that super cap?) $1.60 $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $- Pension/Tax Exempt (0%) Super (15%) Super (30%) Individual (39%)# Top Individual (47%)* Fully Franked Dividend Long Term Capital Gain Short Term Capital Gain Unfranked Income T
Slide 15: Why own Aussie shares? It's all about the income & franking
Why own Aussie shares? It’s all about the income & franking 19 YEARS TO JUNE 2024 ASX300 Price Index ASX300 Accumulation Index ASX300 Accumulation Index (incl, Franking Credits) 6 5 4 3 2 1 0 2005 2008 2011 2014 2017 2020 2023 Source: Plato S&P Growth 3.2%pa, accumulation 7.6%pa, plus franking 9.1%p
Slide 16: Australian share price growth has lagged
Australian share price growth has lagged Price Growth 6.0 5.0 4.0 Axis Title 3.0 2.0 1.0 0.0 Jun-05 May-06 Apr-07 Mar-08 Feb-09 Jan-10 Dec-10 Nov-11 Oct-12 Sep-13 Aug-14 Jul-15 Jun-16 May-17 Apr-18 Mar-19 Feb-20 Jan-21 Dec-21 Nov-22 Oct-23 ASX300Price MSCI World price SP500 Price Source: Plato, Fact
Slide 17: But Australian dividends are higher
But Australian dividends are higher Accumulation 8.0 7.0 6.0 5.0 Axis Title 4.0 3.0 2.0 1.0 0.0 Jun-05 May-06 Apr-07 Mar-08 Feb-09 Jan-10 Dec-10 Nov-11 Oct-12 Sep-13 Aug-14 Jul-15 Jun-16 May-17 Apr-18 Mar-19 Feb-20 Jan-21 Dec-21 Nov-22 Oct-23 ASX300 Accum MSCI World - Net Accum SP 500 - Accum Net So
Slide 18: Don't forget the franking!
Don’t forget the franking! Accum + Franking 8.0 7.0 6.0 5.0 Axis Title 4.0 3.0 2.0 1.0 0.0 Jun-05 Apr-06 Feb-07 Dec-07 Oct-08 Aug-09 Jun-10 Apr-11 Feb-12 Dec-12 Oct-13 Aug-14 Jun-15 Apr-16 Feb-17 Dec-17 Oct-18 Aug-19 Jun-20 Apr-21 Feb-22 Dec-22 Oct-23 ASX300 Accum +Franking MSCI World - Net Accum SP
Slide 19: Results season August 2024 - Dividends
Results season August 2024 - Dividends DIVIDENDS UP, $ VALUE DOWN • Over $34bn in dividends have been declared so far v $35B last year. • Strong dividend increases: – Insurance Australia (89%), QBE Insurance (71%) and Suncorp (63%) in financials. AUG 2024 CHANGE IN DIVIDENDS PCP Average Median Total
Slide 20: Reporting Season Analysis: CBA
Reporting Season Analysis CBA • FY24 Cash NPAT of $9,836m, down 2% from PCP. • Final Dividend 250c vs 240c last year, up 4.2%. • Payout Ratio 79% of FY24 Earnings. • Bad debts of 9bps (fell from 12bps in FY23), home loan arrears picking up but still low. Source: Plato 20
Slide 21: Reporting Season Analysis: CBA
Reporting Season Analysis CBA Source: Plato 21
Slide 22: Reporting Season Analysis: JB Hi-Fi
Reporting Season Analysis JB HI-FI • Earnings 4% above expectations. Driven by strong performance at JB Hi-fi Australia. • Final Dividend 183c total including 80c special dividend vs 115c last year • July sales growing strongly with management sounded confident: – JB Aust : up 5.6% vs FY24. – JB NZ
Slide 23: Reporting Season Analysis: Insurers
Reporting Season Analysis INSURERS • FY24 Cash earnings of $1,372m, up 17% in line with market • FY24 Cash earnings of $905m, up 100% with insurance margin expectations. Profit from general insurance up 29% and banking moving from 9.6% to 15.6%. down 20% (sold to ANZ). • Final dividend 17c up 89% on
Slide 24: Reporting Season Analysis: BHP Group
Reporting Season Analysis BHP GROUP • Solid FY24 Underlying NPAT of US$13.7b up 2% vs pcp, 1% above market expectations with strong cashflow. • Dividend declared was A$ (equivalent) 1.09 , 13% lower than last year which equates to an annual gross dividend yield of 7.6%. • Jansen (Potash project) sta
Slide 25: Top Dividend Traps
TOP DIVIDEND TRAPS BE CAREFUL LOOKING AT HISTORICAL YIELD STOCK HIST. ANNUAL YIELD % DIVIDEND CUT (30 JUN 2024) • Dividend Cuts: – Pilbara 100% 7.1% 18% – Magellan 49% – Perpetual 18% 15.5% 49% 6.5% 100% Source: Plato *Companies mentioned on this slide are illustrative only and not a recommendation
Slide 26: Dividend outlook within normal range
Dividend outlook within normal range AVERAGE % CHANCE OF DIVIDEND CUTS FOR AUSTRALIAN MARKET Div Cut Probability - Australia Dec 2001 - Aug 2024 50% 45% 40% 35% 30% Long term average 25% 20% 15% 10% 5% 0% Source: Plato, based on MSCI World IMI (Australian portion) 26
Slide 27: The income summary – Cautiously Optimistic
The income summary – Cautiously Optimistic Caution: Interest rates rose rapidly but near their peaks Optimism: Dividends are still strong Active fund management critical in delivering income, total return & avoiding dividend traps 27
Slide 28: Questions
Questions THANK YOU 28
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