Washington H. Soul Pattinson And Company Limited · ASX:SOL
Washington H. Soul Pattinson And — H1 FY2020 Earnings Presentation
29 slides from Washington H. Soul Pattinson And's earnings presentation, Mar 26, 2020
Slide 1: Financial Results Half Year FY2020
For personal use only Financial Results Half Year FY2020
Slide 2: Business overview
Business overview DIVERSIFIED & LONG-TERM INVESTOR VALUE FOCUSED AND For personal use only UNCORELLATED PORTFOLIO WITH BROAD MANDATE TRUSTED PARTNER Look-through portfolio composition A$5.5 billion Diversified portfolio of uncorrelated investments across listed equities, private equity / venture c
Slide 3: 1H20 performance
For personal use only 1H20 performance As at 31 January 2020 Half Year Results January 2020 3
Slide 4: Overview – half year ended
Overview – half year ended 31 January 2020 Profit result Key performance indicators For personal use only Group Regular NPAT1 Group Statutory NPAT WHSP net asset value Net regular cash2 $124.7m $51.0m $5,478m $92.7m down 33.2% on 1H19 down 71.5% on 1H19 up 0.2% for the half up 0.7% for the half Regu
Slide 5: Dividends
Dividends Over 20 years of Interim Dividend growth For personal use only WHSP has declared an FY20 Interim Dividend of 25cps, fully franked 22nd consecutive increase in the 25 Interim Dividend 24 23 22 21 19 20 Over the last 20 years, the Interim 18 17 Dividend has grown at 9% CAGR 15 14 13 11
Slide 6: Portfolio overview
Portfolio overview Net Asset Value of WHSP (pre-tax) as at 31 January 2020 was $5.5 billion, up 0.2% For personal use only Value of As at 31 January 2020 WHSP’s 6 month Sector breakup holding Movement $m $m % TPG Telecom1 1,753 117 7.2% Brickworks1 1,307 207 18.9% New Hope Corporation1 779 (264) (25
Slide 7: Total shareholder returns
Total shareholder returns An investment in WHSP over the last 20 years increased by over 11.1 times For personal use only Annualised TSRs 1 Year 2 Year 5 Year 10 Year 15 Year 20 Year WHSP (16.0%) 14.7% 14.0% 8.0% 8.2% 13.2% +1,102% All Ordinaries Accumulation Index 24.9% 12.1% 9.6% 9.0% 8.2% 8.6% Re
Slide 8: Other achievements through first half
Other achievements through first half For personal use only New investment in agriculture New 30,000shareholders in WHSP 25,000 20,000 15,000 10,000 5,000 Citrus Aggregation (Mildura) Macadamias (Fitzroy) All Ords Accum Index Acquired high quality, diversified portfolio of land and water based D
Slide 9: Performance since half year end February 2020 to March 2020
For personal use only Performance since half year end 1 February 2020 to 25 March 2020 Half Year Results January 2020 9
Slide 10: Share price performance since end of 1H20
Share price performance since end of 1H20 Since 1 February, WHSP has performed better on a relative basis to the All Ordinaries Index For personal use only 10.0% 5.0% Since the start of 2H20 (1 February 0.0% 2020), WHSP’s share price is down 01-Feb-20 16-Feb-20 02-Mar-20 17-Mar-20 25-Mar-20 10.7%.
Slide 11: Outlook for FY20
Outlook for FY20 For personal use only Cash outlook FY20 outlook The cash received by WHSP in FY20 is primarily Our focus is on ensuring our business is managed comprised of FY19 final dividends and FY20 through this crisis, protecting our employees and Interim dividends from its portfolio prote
Slide 12: Portfolio overview
For personal use only Portfolio overview Half Year Results January 2020 12
Slide 13: TPG Telecom Limited
TPG Telecom Limited Half year ended 31 January 2020 For personal use only Business As Usual EBITDA bridge between 1H19 and 1H20 Associated entity 25.3% shareholding Value of WHSP’s shareholding $1.75 billion Contribution to WHSP’s regular NPAT $39.9 million Dividends paid to WHSP $4.7 million 1H per
Slide 14: TPG Telecom Limited
TPG Telecom Limited Business overview Impact of COVID-19 For personal use only Offsetting earnings decline from NBN headwinds Utility like subscriptions (defensive) with other growth (primarily Corporate, Tech2 and overhead reductions) Increased demand for telecommunications with remote workfo
Slide 15: Brickworks Limited
Brickworks Limited Half year ended 31 January 2020 For personal use only Business overview Associated entity 43.8% shareholding Property delivered an EBIT of $88m for the period, Value of WHSP’s shareholding $1.31 billion down 33% primarily as result of there being no land Contribution to WHSP’s r
Slide 16: Brickworks Limited
Brickworks Limited BKW has a diversified portfolio of assets, with an inferred value of almost $3 billion For personal use only Half Year Results January 2020 16
Slide 17: Brickworks Limited – Impact of COVID-19
Brickworks Limited For personal use only Impact of COVID-19 Building products share performance since 1 February 2020 Closure of non life-sustaining businesses in Pennsylvania 10.0% on 19 March Trading was strong in early March across Australia and 0.0% 25-Mar-20 US, however, reduction in activi
Slide 18: New Hope Corporation Limited
New Hope Corporation Limited Half year ended 31 January 2020 For personal use only Controlled entity 50.0% shareholding Business overview Value of WHSP’s shareholding $779 million Solid cashflow generation - $167m in operating cash Contribution to WHSP’s regular NPAT $43.2 million during the half
Slide 19: New Hope Corporation Limited
New Hope Corporation Limited For personal use only Forecast electricity demand to 2024 Electricity growth by fuel source in Sth and SE Asia (TWh) Source: Cru The majority of the 12% growth in electricity Coal based generation will account for 64% of generation between 2019 and 2024 is from SE As
Slide 20: New Hope Corporation Limited
New Hope Corporation Limited For personal use only 10.0% Current market conditions (since end of 1H20) NHC v All Ords since 1 February 2020 0.0% Coal prices and demand for product has been resilient. (10.0%) (20.0%) Falling currency has actually increased prices in AUD (30.0%) S&P/ASX All Ordina
Slide 21: Financial Services Portfolio
Financial Services Portfolio Half year ended 31 January 2020 For personal use only Value of portfolio* $374 million Contribution to WHSP’s regular NPAT $10.2 million Portfolio overview Dividends paid to WHSP $12.2 million Assets include LICs, funds management and financial advice * Market values a
Slide 22: Pharmaceutical Portfolio
Pharmaceutical Portfolio Half year ended 31 January 2020 For personal use only API – results for year ended 31 August 2019 Value of portfolio $269 million API reported full year NPAT of $56.5m, up 17% on pcp Contribution to WHSP’s regular NPAT $5.9 million Priceline added 13 stores (total at yea
Slide 23: Pharmaceutical Portfolio
Pharmaceutical Portfolio For personal use only Update since half year end Pharmaceutical portfolio v All Ords since 1 February 2020 20.0% The pharmaceutical portfolio has performed well amidst the COVID-19 crisis 10.0% Demand for products in API and APEX has increased significantly 0.0% Pain r
Slide 24: Round Oak Minerals
Round Oak Minerals Half year ended 31 January 2020 For personal use only Controlled entity 100% held Operations Value of WHSP’s holding $160 million Round Oak continues to actively mine: Contribution to WHSP’s Regular NPAT ($37.3 million) • Jaguar zinc and copper mine in Western Australia • Mt Col
Slide 25: Property Portfolio
Property Portfolio Half year ended 31 January 2020 For personal use only Value of WHSP’s holdings $91 million Contribution to WHSP’s regular profit $8.0 million Maintained ownership of: • Office building at Pennant Hills (100% interest); • Industrial property at Castle Hill (100% interest); and Pe
Slide 26: Private Equity Portfolio
Private Equity Portfolio Half year ended 31 January 2020 For personal use only 16 unlisted investments with a total value of $239m Portfolio increased as a result of $110m new investment in Agricultural investments (managed by Argyle Capital Partners) • Citrus, macadamias, avocados • Defensive a
Slide 27: Equities Portfolios
Equities Portfolios Half year ended 31 January 2020 For personal use only WHSP Large Caps Portfolio Value of WHSP’s holdings $607 million Portfolio managed by Contact Asset Management Contribution to WHSP’s regular profit $9.3 million The objective is to provide WHSP with long-term capital prese
Slide 28: Terms and Definitions
Terms and Definitions For personal use only Regular profit after tax is a non-statutory profit measure and represents profit from continuing operations before non-regular items. A reconciliation to 1 Group Regular profit statutory profit is included in the Preliminary Final Report – Note 3, Segment
Slide 29: Disclaimer
Disclaimer Disclaimer This document has been prepared by Washington H. Soul Pattinson and Company Limited (‘WHSP’). For personal use only All information contained in this document (including this notice) Any forward looking statements included in the Information This Information does not constitute
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