Spheria Emerging Cos. Ltd. · ASX:SEC
Spheria Emerging Cos — H1 FY2023 Earnings Presentation
18 slides from Spheria Emerging Cos's earnings presentation, Feb 28, 2023
Slide 1: ASX cover letter: shareholder webinar and half-year results presentation
Spheria Emerging Companies Limited (Company) Level 35, 60 Margaret Street For personal use only Sydney NSW 2000 Telephone: 1300 010 311 Email: invest@pinnacleinvestment.com ACN 621 402 588 28 February 2023 By Electronic Lodgement Market Announcements Office ASX Limited 20 Bridge Street Sydney NSW 20
Slide 2: 1HFY23 Results & Portfolio Update
For personal use only Spheria Emerging Companies Limited (ASX:SEC) 1HFY23 Results & Portfolio Update 28 February 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 For personal use only 3 1. SEC Company update 2. Portfolio update 3. Questions
Slide 5: SEC
For personal use only SEC Company Update
Slide 6: 1HFY2023 Highlights
5 1HFY2023 Highlights For personal use only 1HFY23 Profit Company Yield (including Dividends2 Yield performance1 franking) $4.3m +4.0% 4.3c 4.8%3 6.8%4 • 1HFY23 net profit after tax of $4.3 million • Company Performance of +4.0%, - 3.0% compared to benchmark5 of +7.0% (+2.0% p.a. to benchmark since
Slide 7: NTA breakdown for 1HFY23
6 NTA breakdown for 1HFY23 Market rise less dividends paid leads to an increase in NTA per share For personal use only • Pre-tax NTA increased $2.30 by $0.036 from $2.090 at 30 June 2022 to $2.126 at 31 +$0.091 - $0.010 - $0.004 December 2022 $2.20 - $0.043 $2.126 $2.090 • Post-tax NTA as at 31 $2.1
Slide 8: Dividends
7 Dividends Delivering on the targeted 4% p.a. NTA dividend yield commitment For personal use only • Six consecutive quarterly dividends declared since moving to a quarterly dividend at 1% of post-tax NTA • Targeted dividend yield of 4% of NTA (5.7% including franking), equal to trailing dividend yi
Slide 9: Performance History
8 Performance History Since inception Company outperformance of 2.0% p.a. For personal use only SEC Company performance SEC Limited Net Performance as at 31st Dec 2022 Period 1 month 3 month FYTD 1 year 3 year (pa) 5 year (pa) Since Inception (pa) Inception Date SEC Ltd. -2.9% 4.0% 4.0% -17.5% 4.8%
Slide 10: SEC Portfolio Update
For personal use only SEC Portfolio Update
Slide 11: Spheria Asset Management Investment Process
10 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 12: SEC Portfolio Performance
11 SEC Portfolio Performance Strong relative performance in the last two years For personal use only SEC Portfolio - Net Performance* since Inception 80.0% Spheria Index Relative Performance 60.0% 40.0% 20.0% 0.0% -20.0% -40.0% Nov-17 Mar-18 Sep-18 Nov-18 Mar-19 Sep-19 Nov-19 May-20 May-21 May-22 Ma
Slide 13: SEC Portfolio - stock attribution
12 SEC Portfolio - stock attribution For personal use only Spheria Emerging Companies - Attribution - 12 Month - Jan 2023 2.50 2.00 1.50 1.00 0.50 - (0.50) (1.00) (1.50) (2.00) (2.50) * Red Outline – companies we did not hold during the period Source : Bloomberg Data as at 31st January 2023
Slide 14: Top Company Holdings and Sector Exposure
13 Top 10 Company Holdings and Sector Exposure For personal use only Spheria Emerging Companies Limited Spheria Emerging Companies Limited Ticker Company Name % Portfolio 35.0% BKL Blackmores Limited 4.9 30.0% IVC InvoCare Limited 4.7 25.0% FLT Flight Centre Travel 4.7 20.0% IRE IRESS Limited 4.3 15
Slide 15: Flight Centre: Ready for takeoff
Flight Centre (ASX:FLT) 14 Ready for takeoff For personal use only Cash Flow Conversion (EBITA) 500 120% 100% 300 100% 100 80% -100 60% -300 40% -500 20% -700 0% FY05A FY06A FY07A FY12A FY15A FY16A FY17A FY03A FY08A FY13A FY18A FY20A FY21A FY22A FY09A FY19A FY04A FY14A FY10A FY11A Free Cash Flow bef
Slide 16: Deterra Royalties Ltd
Deterra Royalties Ltd (ASX:DRR) 15 Free Cash Flow Projections Mining Area C production (wmt) For personal use only • DRR owns a 1.2% royalty from Iron Ore production at Mining Area C (est 50yr + mining life) which is 65% owned by BHP.ASX • Mining Area C is high quality/low impurity Fe and low cost m
Slide 17: Outlook
16 Outlook For personal use only • Broad based share price declines provide significant opportunity for “through the cycle” valuation led investors. • The growth-momentum narrative collapsed providing some pockets of reasonable opportunity. • Overexuberance in some sectors remains e.g. Lithium miner
Slide 18: Questions
For personal use only Questions
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