Whitefield Industrials Limited · ASX:WHF
Whitefield Industrials — Whitefield — Shareholder Meeting (July 2015)
21 slides from Whitefield Industrials's shareholder meeting presentation, Jul 30, 2015
Slide 1: AGM Whitefield Limited July 2015
For personal use only AGM WHITEFIELD LIMITED JULY 2015 0
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only The commentary within this presentation is general investment information only and is limited in scope. It should not be considered to provide a full outline of all information an investor should consider prior to making an investment. The presentation doe
Slide 3: Whitefield Primary Attributes
WHITEFIELD PRIMARY ATTRIBUTES: For personal use only Holders of Whitefield’s Ordinary Shares have received regular dividends and growth in the capital value of their investment over many Founded in 1923, Whitefield has decades. An investment of $10,000 in Whitefield in 1970 would have been a long hi
Slide 4: Whitefield Primary Attributes: Efficient Structure
WHITEFIELD PRIMARY ATTRIBUTES: For personal use only Whitefield’s Board contains a majority of independent directors and explicitly Whitefield’s operating structure focuses on prudential control and review of the company’s operations. seeks to emphasise the The company’s Investment Team, Accounting
Slide 5: Whitefield's Investment Strategy
WHITEFIELD’S INVESTMENT STRATEGY A SYSTEMATIC PROCESS DESIGNED TO DELIVER For personal use only STRENGTH OF RETURN WITH RELATIVELY LOW RISK Whitefield seeks to own a portfolio of attractively priced, high-quality businesses with a proven or strengthening ability to deliver shareholder value. We util
Slide 6: The Importance of Quality
WHITEFIELD’S INVESTMENT STRATEGY THE IMPORTANCE OF QUALITY For personal use only The quality of a business is fundamentally important to an investor. Over the long term businesses benefitting from favourable or improving industry structures, competitive position, management application and longer Th
Slide 7: Mispricing Creates Risks and Opportunities
WHITEFIELD’S INVESTMENT STRATEGY MISPRICING CREATES RISKS AND OPPORTUNITIES For personal use only Patterns of mispricing materially influence investment returns. Mispricing occurs when share prices diverge from the intrinsic value of a company. The share market routinely misprices stocks, in some ca
Slide 8: Whitefield's Investment Process
WHITEFIELD’S INVESTEMNT PROCESS A DEFINED AND DISCIPLINED METHOD For personal use only Whitefield believes that consistent and successful investment outcomes can be provided with the greatest reliability through a defined and disciplined process. We gather data from a wide range of sources including
Slide 9: An Efficient Structure: Cost / Return / Service Balance
AN EFFICIENT STRUCTURE COST / RETURN / SERVICE BALANCE For personal use only WHITEFIELD AIMS TO OFFER AN EFFICIENT BALANCE BETWEEN COST, RETURN AND SERVICE Whitefield’s Management Expense ratio (MER) MER has remained at approximately 0.35% across the last year. Whitefield continues to provide retail
Slide 10: Recent Outcomes: Investment Returns
RECENT OUTCOMES INVESTMENT RETURNS For personal use only Portfolio ahead of benchmark over 1, 2, 3 years Industrials tilt has added a very significant margin over recent years, and over last 30 years Pre-tax asset backing a margin higher again reflecting leverage from Convertible Pref Shares. Share
Slide 11: Recent Outcomes: Investment Returns
RECENT OUTCOMES INVESTMENT RETURNS For personal use only 10
Slide 12: Recent Outcomes: Investment Returns
RECENT OUTCOMES INVESTMENT RETURNS For personal use only WHF Share Price & Div Outperformance • Reflecting the benefit from narrowing of price and asset backing differential over 30 years Long and medium term benefit from Industrials tilt • Industrials tilt has added value over both recent years and
Slide 13: Recent Outcomes: Earnings & Asset Backing
RECENT OUTCOMES EARNINGS & ASSET BACKING For personal use only Earnings per share grew by 15.4% to 16.7 cents in 2015. Investment income grew by 13.5% Investment income from Dividends & Interest Many companies within the portfolio increased dividends including ResMed, Lend Lease, Harvey Norman, Amco
Slide 14: Recent Outcomes: Dividends
RECENT OUTCOMES DIVIDENDS For personal use only WHF declared / paid fully franked dividends of 17.0 cents per ordinary share for 2015. Having maintained its ordinary dividend at pre-Global Financial Crisis levels for some years, WHF’s EPS (Earnings per share) are now at a similar level to DPS (Divid
Slide 15: Consumer Conditions: Mildly Positive
CONSUMER CONDITIONS: MILDLY POSITIVE For personal use only EMPLOYMENT WEALTH: HOUSING Many of the underlying drivers Had softened but now stabilising Exceptionally strong of consumer spending are positive, but the benefit is less than expected Ultra low interest rates are feeding into higher house p
Slide 16: Business Conditions: Improving Slowly
BUSINESS CONDITIONS: IMPROVING DSLOWLY For personal use only RETAIL SALES CAPITAL EXPENDITURE The status quo of the last year Moderate growth Remains a drag on the economy remains Broadly - conditions are improving, underpinned by a lower $AUD The downturn in INDUSTRIAL PRODUCTION AUST DOLLAR the mi
Slide 17: International Conditions
INTERNATIONAL CONDITIONS: SUPPORTIVE POLICY IN EUROPE & CHINA NOW ASSISTING For personal use only USA EUROZONE US economic Activity continues to expand, although impacted by Activity recovers, particularly in previously troubled activity has been falling oil & gas activity across the last year econo
Slide 18: Risks and Opportunities
RISKS AND OPPORTUNITIES For personal use only A period of change D. however the changes are more positive than negative Many former risks have receded The possibility of a slowdown in China continues to threaten. Against this a lower AUD, a wind-back of austerity policies, and supportive policy in C
Slide 19: Portfolio: Top Holdings at Jun 2015
PORTFOLIO For personal use only WHF’S PORTFOLIO TOP 20 at Jun 2015 Commonwealth Bank Of Australia 10.42% The portfolio contains ~140 Westpac Banking Corporation 7.92% stocks across all market Diversified Telstra Corporation Limited 6.60% sectors excluding resources Industrials National Australia Ban
Slide 20: Price and NTA
PRICE AND NTA For personal use only As at 30 June 2015 Pre-Deferred Tax $4.66 Post-Deferred Tax $4.35 19
Slide 21: Conclusion
CONCLUSION For personal use only 2015 – a successful year for WHF 2015 was a successful year for WHF, driven by growth in earnings which in turn was mirrored 2015 by strong growth in asset backing The market is more fully valued than a year ago, however recent falls are creating opportunities Macro-