Utilico Emerging Markets Trust PLC GBP · LSE:UEM
Utilico Emerging Markets Trust PLC GBP — Utilico Emerging Markets — FY2017 Earnings Presentation
31 slides from Utilico Emerging Markets Trust PLC GBP's earnings presentation, March 2017
Slide 1: Investor Presentation – Annual results March 2017
Investor Presentation Annual results March 2017 Strictly Private and Confidential
Slide 2: Important Notice
IMPORTANT NOTICE By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The information in this document has been prepared by Utilico Emerging Markets Limited (the “Company”) solely to give an overview of t
Slide 3: Contents and Presenter
A diversified investment fund focused on securing long-term total returns from emerging markets Contents Presenter Charles Jillings – Portfolio Manager Portfolio manager of UEM since inception and responsible for the o Overview day-to-day running of UEM and the investment portfolio A qualified chart
Slide 4: Overview
Overview An established closed end investment company on a stable financial footing Award winning company established in 2005 and Diversified asset portfolio mitigates market risk listed on the London Stock Exchange • Single stock exposure limit of 20% (10% internal limit) of • Gross assets less cur
Slide 5: Financial Highlights
Financial Highlights For the year ended 31 March 2017 o NAV total return of 26.2% o Diluted NAV of 241.29p per ordinary share, up 19.1% o Revenue earnings per ordinary share (diluted) of 7.70p o Dividends per ordinary share increased to 6.65p, up 3.9% o Discount to NAV of 11.1% o Bought back 4.8m sh
Slide 6: Financial Highlights
Financial Highlights For the year ended 31 March 2017 Page 4
Slide 7: Performance since inception
Performance since inception Inception – 20 July 2005 Page 5
Slide 8: Investment Opportunity
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Slide 9: Investment Opportunity – Romania update
Investment Opportunity – Romania update Economy • 2016 GDP growth at 4.8%, highest in the European Union • Q1 2017 GDP growth at 5.7%, 2017 forecast at 5.2% (Finance Ministry) • Inflation subdued; negative during 2016 • Unemployment rate at 5.5% end-16 Page 6
Slide 10: Investment Opportunity - TGS
Investment Opportunity - TGS Overview • Argentina’s dominant gas transmission company, transporting 58% of gas consumed in the country • Operates 9,183km pipeline network transporting gas from fields in south/west of country to demand centres • Owns a gas liquids processing plant supplying propane,
Slide 11: Investment Opportunity – Rumo S.A.
Investment Opportunity – Rumo S.A. Overview Capital raise in April 2016 turning point for the company • Brazil's largest railroad-based logistics operator in terms of • Raised R$2.6bn in April 2016 at R$2.50 per share to help fund total volume transported, providing rail transport logistics, R$8.5bn
Slide 12: Investment Strategy
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Slide 13: Investment Strategy
Investment Strategy Focused on long-term total return via diversified portfolio of operational, cash generative investments Investing predominantly in listed companies and Focused on investment in emerging markets that sectors displaying the characteristics of essential demonstrate: services or mono
Slide 14: Investment Strategy
Investment Strategy Focused on long-term total return via diversified portfolio of operational, cash generative investments Effective risk mitigation achieved through geographic and sector diversification: Investment Limits per Prospectus Internal March Management 2017 • Strict internal limits Limit
Slide 15: Portfolio
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Slide 16: Portfolio – Geographical weightings
Portfolio Effective risk mitigation through geographic diversification Current holdings – Geographical weightings year on year comparison Source: ICM Source: ICM Page 11
Slide 17: Portfolio – Sector weightings
Portfolio Effective risk mitigation through sector diversification Current holdings – Sector weightings year on year comparison Source: ICM Source: ICM Page 12
Slide 18: Typical portfolio investments
Portfolio Typical portfolio investments Asset: Rumo S.A. Asset: SJVN Limited Sector: Rail Sector: Electricity Brazil Nathpa Jhakri Hydro Power Station, Himachal Pradesh, India Asset: Ocean Wilsons Holdings Limited Asset: Transportadora de Gas del Sur Sector: Ports Sector: Gas Tecon Salvador port ter
Slide 19: Portfolio – Mature, operational investments
Portfolio Mature, operational investments with strong cash flows Fair Value % of total 31-Mar-17 31-Mar-16 Company (Country) £'000s investments 1 (6) International Container Terminal Services, Inc. (The Philippines) 28,913 5.0% Global container port operator 2 (7) Ocean Wilsons Holdings Limited (Bra
Slide 20: Portfolio (continued)
Portfolio (continued) Mature, operational investments with strong cash flows Fair Value % of total 31-Mar-17 31-Mar-16 Company (Country) £'000s investments 11 (15) Yuexiu Transport Infrastructure Limited (China) 15,574 2.7% Toll roads operator 12 (10) China Resources Gas Group Ltd (China) 15,355 2.7
Slide 21: Performance
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Slide 22: Performance
Performance Securing long-term returns from cash generative net investments • NAV of 241.29p (diluted) per ordinary share • Strong annualised returns since inception o NAV annual compound total return since inception of 12.1% • Robust balance sheet with no current long- term debt o Borrowings of £46
Slide 23: Performance – (Discount) / Premium to NAV
Performance (Discount) / Premium to NAV Source: ICM Page 17
Slide 24: Performance – Summary Financials
Performance Summary Financials Profit and Loss £000's (source: UEM annual report) 2011 2012 2013 2014 2015 2016 2017 Investment gains/(losses) 64,533 5,681 77,781 (25,849) 45,330 (9,649) 109,734 Income 15,190 12,710 13,945 13,742 14,531 21,418 20,153 Total income 79,723 18,391 91,726 (12,107) 59,861
Slide 25: Track record of distributing profits
Performance Track record of distributing profits to investors Source: ICM Page 19
Slide 26: Appendix
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Slide 27: Factsheet
Appendix 1 Factsheet Fund size: £532.2m as at 31 March 2017 Trading: London Stock Exchange – Main Market Indices: FTSE All-Share Ordinary Shares in issue: 211.4m as at 31 March 2017 Subscription Shares in issue: 37.8m Management fee: 0.65% of net assets plus company secretarial fee Performance fee:
Slide 28: Investment management
Appendix 2 Investment management Investment Management • Responsible for the investment portfolio ICM Investment Management Limited (“ICMIM”) • Portfolio monitoring, research and other related services o ICMIM was appointed as UEM’s Alternative Investment Fund Manager • Fees on 13 April 2015 and joi
Slide 29: Investment management team
Appendix 3 An experienced investment management team – based in the UK Investment Manager Senior Analyst Team Charles Jillings Jacqueline Broers • Responsible for the day-to-day running of UEM and • Involved in the running of UEM since 2010 the investment portfolio • Previously Corporate Finance at
Slide 30: Independent Board of Directors
Appendix 4 Independent Board of Directors John Rennocks (Chairman, appointed September 2016) Susan Hansen • Appointed in November 2015 • Appointed in September 2013 • Formerly deputy chairman of Inmarsat plc and previously • Chartered accountant and MBA graduate and has worked in a director of Forei
Slide 31: Shareholders
Appendix 5 Shareholders Number of ordinary shares held % held UIL Limited 35,829,628 16.9 Lazard Asset Management LLC 22,537,694 10.7 Bank of Montreal clients, including 19,828,309 9.4 Foreign & Colonial Investment Trust plc 14,450,000 6.8 Investec Wealth & Investment Limited 12,308,522 5.8 Rathbone
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