AMCIL Limited · ASX:AMH
AMCIL — Shareholder Meeting (October 2019)
30 slides from AMCIL's shareholder meeting presentation, Oct 10, 2019
Slide 1: 2019 Annual General Meeting Presentation
10 October 2019 For personal use only The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement AMCIL Limited 2019 Annual General Meeting Presentation Dear Sir / Madam Please find attached a presentation that wil
Slide 2: Annual General Meeting 2019
For personal use only Annual General Meeting 2019
Slide 3: Disclaimer
Disclaimer For personal use only AMCIL Limited and Australian Investment Company Services Limited (AFSL: 303209) and each of their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good faith. However, no warranty (expre
Slide 4: Financial Results
For personal use only Financial Results Annual General Meeting 2019
Slide 5: Financial results
Financial results For personal use only (a) 3.5 cent dividend (interim and special) paid February 2019. Management expense ratio of 0.72% Annual General Meeting 2019
Slide 6: Our Approach
For personal use only Our Approach Annual General Meeting 2019
Slide 7: AMCIL as a listed investment company
AMCIL as a listed investment company For personal use only Shareholders Disciplined Transparent own the Company investment approach Tax effective Low cost – no Benefits of a performance fees closed end fund Annual General Meeting 2019
Slide 8: Annual portfolio performance vs the index
Annual performance can vary quite differently to the index – portfolio performance each financial year with franking* For personal use only Annual General Meeting 2019
Slide 9: Components of share price return
Components of share price return – 10 year return to 30 September 2019, including franking, has been 10.5% per annum For personal use only * Assumes an investor can take full advantage of franking credits. Annual General Meeting 2019
Slide 10: Share price relative to net asset backing per share
Share price relative to net asset backing per share For personal use only Annual General Meeting 2019
Slide 11: Performance and the Portfolio
For personal use only Performance and the Portfolio Annual General Meeting 2019
Slide 12: Portfolio performance including benefit of franking credits
Portfolio performance including benefit of franking credits* – to 30 September 2019 For personal use only * Assumes an investor can take full advantage of the franking credits. Annual General Meeting 2019
Slide 13: Sector performance to 30 September 2019
Some sectors of the market have been very strong over the 12 months to 30 September 2019 For personal use only Includes dividends Annual General Meeting 2019
Slide 14: AMCIL's investment focus
AMCIL’s investment focus For personal use only We are long term investors in high quality companies reflecting our greatest conviction. Focused portfolio covering large, medium and small companies. Our size means smaller companies can have an equally important impact on portfolio returns as large on
Slide 15: Investment approach: quality companies that can grow
AMCIL’s investment approach – focus on investing in quality companies that can grow over the long term For personal use only Companies that have a sustainable competitive advantage: • Unique set of assets • Sustainable over the long term – have survival characteristics • Independence from outside in
Slide 16: Investment approach: run by people we can trust
AMCIL’s investment approach focus on investing in quality companies that can grow over the long term continued For personal use only Are run by people we can trust: • Shareholder focus (owner/driver) • Passionate about their business • Have deep understanding of industry and their business • Are goo
Slide 17: Investment approach: consistent earnings and strong balance sheets
AMCIL’s investment approach focus on investing in quality companies that can grow over the long term continued For personal use only • Preference for businesses which generate more consistent earnings streams • With strong balance sheets – avoid companies with high levels of debt • Want to invest in
Slide 18: Companies with a dominant market position
Companies with a dominant market position For personal use only Competitive advantage in growing green energy opportunities with a strong Return on Equity and balance sheet. Strong management team, high returns, lowest cost, good balance sheet, investing in R&D for future earnings growth. High quali
Slide 19: Companies with a sustainable competitive advantage
Companies with a sustainable competitive advantage Very unique toll road assets which benefit from population growth For personal use only and have set inflation linked pricing. Further opportunities to add new growth projects which support long term cash flow growth. Attractive monopolistic assets
Slide 20: Owner/driver companies
Owner/driver companies Emerging leader in logistics solutions globally. Unique owner/driver For personal use only culture which enables long term view of investment. Generates attractive Return on Invested Capital (ROIC). Strong management team who have built a successful Australian business which g
Slide 21: Owner/driver companies continued
Owner/driver companies continued Dominant market position in the provision of online employment For personal use only classifieds in Australia and New Zealand. Emerging market opportunities in China, South East Asia and South America. Founder led business which is currently being taken over by a lar
Slide 22: Option strategies enhance portfolio income
Option strategies are used to enhance the income of the portfolio For personal use only • Banks and resource companies face some challenges in terms of longer term growth and offer a more cyclical earnings profile • However, they rank highly on our quality ranking (given strong industry/asset positi
Slide 23: Top investments as at September 2019
Top 20 investments as at 30 September 2019 Focused Portfolio Rank Company % of Portfolio For personal use only – 36 holdings in total 1 CSL Limited 7.6% 2 National Australia Bank* 5.7% 3 Mainfreight 4.7% 4 Macquarie Group 4.4% 5 Transurban Group 4.3% 6 BHP* 4.2% 7 Wesfarmers 4.0% 8 James Hardie Indu
Slide 24: Top investments as at September 2019 continued
Top 20 investments as at 30 September 2019 continued Focused Portfolio Rank Company % of Portfolio For personal use only – 36 holdings in total 11 EQT Holdings 3.0% 12 Carsales.com 3.0% 13 Qube Holdings 2.9% 14 Wellcom Group 2.9% 15 Commonwealth Bank of Australia* 2.8% 16 Oil Search 2.7% 17 Objectiv
Slide 25: Current factors at play in the market
Current factors at play in the market For personal use only • Interest rates are very low globally and appear to be going lower • Investors search for yield in the low rate environment has driven up equity prices • Multiples for high PE stocks vs low PE stocks (growth vs value) are at extreme levels
Slide 26: Valuations well above long term average for high PE stocks
With valuations remaining well above the long term average for high PE stocks For personal use only Source: Goldman Sachs Research Annual General Meeting 2019
Slide 27: How the portfolio is positioned in this environment
How the portfolio is positioned in this environment For personal use only • Reduced number of holdings in the portfolio • Quality, including balance sheet strength, before growth and value • Cash available to buy long term value in substantial dips • Currently in an investment environment where retu
Slide 28: Closing Comments
For personal use only Closing Comments Annual General Meeting 2019
Slide 29: Issues to consider
Issues to consider For personal use only Annual General Meeting 2019
Slide 30: For personal use only
For personal use only