Washington H. Soul Pattinson And Company Limited · ASX:SOL
Washington H. Soul Pattinson And — Shareholder Meeting (December 2021)
30 slides from Washington H. Soul Pattinson And's shareholder meeting presentation, Dec 10, 2021
Slide 1: Welcome to the 119th Annual General Meeting
Welcome to the 119th Annual General Meeting
Slide 2: Welcome and Order of Proceedings
Welcome and Order of Proceedings 1. Welcome 2. Chairman’s Address 3. CEO and Managing Director’s Presentation 4. Formal business and questions Board of Directors Robert Millner Todd Barlow Tiffany Fuller Michael Hawker AM Thomas Millner Warwick Negus Josephine Sukkar AM Robert Westphal Chairman of B
Slide 3: Chairman’s Address
Chairman’s Address 3
Slide 4: Dividends
Dividends WHSP is the only company in the All Ordinaries Index to have increased its dividend every year since 2000 ▪ WHSP has resolved to pay an FY21 Final 20 year Total Ordinary Dividend History Dividend of 36cps, fully franked ▪ Total dividends for FY21 of 62cps (up 3.3%) ▪ 21st consecutive incre
Slide 5: Total shareholder returns
Total shareholder returns An investment in WHSP over the last 20 years has increased over 1,100% Annualised TSRs 1 Year 3 Year 5 Year 10 Year 15 Year 20 Year +1,140% WHSP 70.4% 17.1% 16.4% 13.0% 13.6% 13.4% All Ordinaries Accumulation 30.4% 10.2% 10.4% 9.9% 7.3% 8.7% Index Relative performance 40.0%
Slide 6: Long-term total shareholder returns
Long-term total shareholder returns WHSP has provided strong equity returns over the last 40 years $1,000 invested in 1981 worth $239,182 a Compound annual return of 14.7% for 50 years 1981 1986 1991 1996 2001 2006 2011 2016 2021 Source: Capital IQ Cumulative performance to 31 July 2021 (Including r
Slide 7: Director Re-elections
Director Re-elections Robert Westphal retires at today’s AGM Mr Westphal has served as Chairman of the Board Audit Committee since his appointment in 2006 He has made a significant contribution to the Company over the time he has served as a Director On behalf of the Board, we would like to thank Ro
Slide 8: Managing Director’s Presentation
Managing Director’s Presentation 8
Slide 9: WHSP is a unique investment product in the Australian market
WHSP is a unique investment product in the Australian market Through WHSP, an investor has the opportunity to gain exposure to: — A range of asset classes, including private equity, private credit and property — Investment strategies that have delivered above market returns for decades — Steady and
Slide 10: Our Investment Philosophy
Our Investment Philosophy DIVERSIFIED UNCONSTRAINED LONG TERM Diverse range of uncorrelated A flexible investment mandate allows Disciplined and value focussed investments across listed equities, WHSP to invest in and support approach to investing through market private equity & venture capital, com
Slide 11: Review of 2021
Review of 2021 2021 was a year of transformation and significant achievement 12 Month Share Price Performance1 Net Asset Value per share $11.7 billion ▲ 17.3% Market Capitalisation1 last 12 months2 $26.40/share Total Acquisitions and Disposals $22.51/share (last 12 months) ▲ 12% $5.41 billion Nov-20
Slide 12: Milton merger
Milton merger 12
Slide 13: Milton Corporation merger
Milton Corporation merger WHSP is well positioned following its merger with Milton The merger is highly strategic and provides WHSP with: Financial Outcomes (pro-forma FY21) –1 Greater portfolio diversification and additional liquidity Net Asset Value1 FY21A Net cashflows from investments for future
Slide 14: Increased diversification
Increased diversification The merger with Milton improves liquidity to enable potential future diversification across multiple asset classes WHSP1 (Before) WHSP2 (After) Gross Asset Value: $6.5 billion Gross Asset Value: $9.7 billion Structured Structured Cash Cash Property Yield Property Yield Priv
Slide 15: Portfolio overview
Portfolio overview 15
Slide 16: Portfolio overview
Portfolio overview Net Asset Value of WHSP (pre-tax) as at 30 November 2021 was $9.5 billion NAV per share is up over 17% for the last 12 months Portfolio Value ($m) ▪ Post-merger, WHSP has divided its portfolio by asset class Strategic portfolio (1) 4,263 ▪ Strategic portfolio is now less than 45%
Slide 17: Strategic portfolio
Strategic portfolio WHSP has a portfolio of cornerstone shareholdings in diversified industries with low correlations Value* $4.26 billion Portfolio changes in last 12 months Percentage of portfolio* 45% ▪ API stake sold to Wesfarmers as part of its proposed acquisition – What does it include? Stake
Slide 18: Strategic portfolio – TPG and Tuas
Strategic portfolio – TPG and Tuas WHSP’s biggest industry exposure in the portfolio is to telecommunications TPG 12 Month Share Price Performance* Tuas 12 Month Share Price Performance* ▲205% ▼20% ▪ WHSP’s 12.8% shareholding in TPG had a value as at 30 ▪ WHSP’s 25.6% shareholding in Tuas had a valu
Slide 19: Strategic portfolio – Brickworks
Strategic portfolio – Brickworks Brickworks is experiencing strong growth in the value of its industrial land Brickworks 12 Month Share Price Performance* ▲22% Oakdale West (Amazon facility in foreground, Coles facility at rear) ▪ WHSP’s 43.2% shareholding in Brickworks had a value as at 30 November
Slide 20: Strategic portfolio – New Hope
Strategic portfolio – New Hope New Hope is benefiting from strong thermal coal prices New Hope 12 Month Share Price Performance* ▲41% Rehabilitation of previously mined areas at Oakleigh East and Jeebropilly ▪ WHSP’s 39.9% shareholding in New Hope had a value as at 5 year graph of NEWC Thermal Coal
Slide 21: Large caps
Large caps Bringing together Milton and WHSP's investment capabilities to generate consistent capital and income growth Value* $3.47 billion ▪ Actively managed portfolio by an experienced and successful team Percentage of portfolio* 36% ▪ Fundamental and long-term investment approach What does it in
Slide 22: Emerging companies
Emerging companies WHSP is an active investor in both listed and pre-IPO emerging companies Value* $545 million ▪ Investing in attractive early stage and high growth companies Percentage of portfolio* 6% — Emerging companies are often capital constrained and/or What does it include? Ex-100 listed eq
Slide 23: Private equity
Private equity WHSP has a growing portfolio of private companies which are platforms for further growth Value* $641 million ▪ $60m of further investment in the agricultural portfolio in 2021 Percentage of portfolio* 7% ▪ We are looking for established businesses with sector tailwinds that What does
Slide 24: Private equity – Round Oak
Private equity – Round Oak Round Oak Metals provides exposure to the demand for copper and other base metals ▪ FY21 EBITDA of $183m ▪ WHSP is considering strategic options, IPO withdrawn ▪ Strong supply and demand fundamentals to drive prices ▪ Round Oak is focused on: — extending the mine life of J
Slide 25: Private equity – Agriculture
Private equity – Agriculture Crop type and location have been targeted to take advantage of domestic markets and export markets Fitzroy Macadamias Manjimup Kiwi Infinity Farms Permanent Crops by Type Stone Macadamias Kiwi Grapes, Stone fruit Fruit Hillston Citrus Kiwi Table Grapes ~1,600 ha Citrus C
Slide 26: Structured yield
Structured yield Investing across the capital structure to optimise risk adjusted returns on attractive opportunities Value* $360 million ▪ Seeking to opportunistically grow the structured yield portfolio by Percentage of portfolio* 4% leveraging existing expertise and relationships to respond to a
Slide 27: Property
Property The property portfolio comprises direct property investments which are actively managed with a view to generating superior returns to passive ownership Value* $169 million ▪ Underweight direct property due to significant property backing in Percentage of portfolio* 2% many other investments
Slide 28: Net working capital
Net working capital WHSP has access to significant liquidity for new opportunities Total debt ($606 million) ▪ Net working capital position is positive – currently ungeared Total cash $379 million ▪ $600 million of debt is offset by cash and receivables Net receivables $305 million Net working capit
Slide 29: Investing strategy
Investing strategy WHSP’s enhanced liquidity position following the merger will allow us to capitalise on investment opportunities arising in our target asset classes and thematics 1 WHSP has significant liquidity available for future investment Milton merger providing > $2b in additional liquidity
Slide 30: Disclaimer
Disclaimer Disclaimer This document has been prepared by Washington H. Soul Pattinson and Company Limited (‘WHSP’). All information contained in this document (including this notice) Any forward looking statements included in the Information This Information does not constitute an offer, invitation,
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