Djerriwarrh Investments Limited · ASX:DJW
Djerriwarrh Investments — Shareholder Meeting (October 2022)
28 slides from Djerriwarrh Investments's shareholder meeting presentation, Oct 13, 2022
Slide 1: Annual General Meeting 2022
€ Dyerriwarrh Annual General Meeting 2022
Slide 2: How to ask a question
How to ask a question • To ask a written question select the Q & A icon • Select the topic your question relates to from the drop-down list • Type your question in the text box and press the send button • To ask a verbal question follow the instructions below the broadcast window. Djerriwarrh Annual
Slide 3: How to vote
How to vote • When the poll is open, select the vote icon at the top of the screen • To vote, select either For, Against or Abstain • You will see a vote confirmation • To change or cancel your vote “click here to change your vote” at any time until the poll is closed Djerriwarrh Annual General Meet
Slide 4: Board Members
Board Members Significant experience as directors, executives and investors in ASX listed companies John Paterson Graham B Goldsmith AO Kathryn J Fagg AO Chairman and Independent Deputy Chairman and Independent Non-Executive Non-Executive Director Independent Non-Executive Director Director Mark Fre
Slide 5: Annual General Meeting – Presentation 2022
Annual General Meeting – Presentation 2022
Slide 6: Disclaimer
Disclaimer Djerriwarrh Investments Limited, its related entity (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 wa
Slide 7: Agenda
Agenda Overview and Objectives Mark Freeman Financial Year in Summary Andrew Porter Portfolio Update Brett McNeill and Nicky Sun Outlook Brett McNeill Djerriwarrh Annual General Meeting – October 2022 7
Slide 8: Overview and Objectives
Overview and Objectives Djerriwarrh Annual General Meeting – October 2022 8
Slide 9: Overview
Overview Djerriwarrh is one of the largest income focused Listed Investment Companies (LIC). Djerriwarrh listed on the ASX in 1989. Shareholders get the benefit of full transparency associated with being a LIC, as well as the high governance standards delivered by an Independent Board of Directors.
Slide 10: Investment Team
Investment Team Significant experience researching and analysing ASX listed companies, as well as managing investment portfolios Brett McNeill Olga Kosciuczyk Kieran Kennedy Portfolio Manager Investment Analyst Portfolio Manager David Grace Nga Lucas Stuart Low Portfolio Manager Investment Analyst I
Slide 11: Investment Objectives
Investment Objectives • Djerriwarrh primarily seeks to provide an enhanced level of fully franked income, that is higher than what is available from the S&P/ASX 200 Index and which is delivered at a low cost to shareholders. • Djerriwarrh also aims to provide shareholders with attractive investment
Slide 12: DJW's Share Price is Trading at a Discount Relative to Net Asset Backing
DJW’s Share Price is Trading at a Discount Relative to Net Asset Backing Djerriwarrh Annual General Meeting – October 2022 12
Slide 13: Financial Year in Summary
Financial Year in Summary Djerriwarrh Annual General Meeting – October 2022 13
Slide 14: Financial Year in Summary
Financial Year in Summary *Assumes an investor can take full advantage of the franking credits. Djerriwarrh Annual General Meeting – October 2022 14
Slide 15: Portfolio Update
Portfolio Update Djerriwarrh Annual General Meeting – October 2022 15
Slide 16: Djerriwarrh Investment Approach – 2 Key Objectives
Djerriwarrh Investment Approach – 2 Key Objectives 1 Enhanced Income 2 Attractive Investment Returns Key Drivers Key Drivers Option Income Portfolio Construction Quality focus Balance between income and growth Dividend Income Diversification across stocks and sectors Djerriwarrh Annual General Meeti
Slide 17: Option Income
Option Income Approach: Writing options against our portfolio holdings enables us to generate additional income. This is a key component of Djerriwarrh’s enhanced income yield. Key Factors The Option Income ($m) results of the last two years are consistent with our objectives • We predominantly writ
Slide 18: Option Income
Option Income Active management of the option portfolio has again proved crucial given the volatile market conditions of the last 12 months. 8000 S&P/ASX 200 Index Buoyant demand and RBA’s first cash rate 7800 inflationary pressures increase since 2010 building Recession concerns build as Invasion o
Slide 19: Dividend Income
Dividend Income Approach: Constructing a portfolio of companies with the right mix of income and growth enables us to generate a level of dividend income that can deliver an enhanced income yield as well as growth in fully franked dividends. Key Factors The Dividend Income ($m) results of the last t
Slide 20: Dividend Income
Dividend Income The recent profit reporting season met our overall expectations for dividends. This included consumer facing companies such as Coles, and structural growth stories including leading healthcare company CSL. Dividend Per Share Dividend Per Share Source: Company Reports, Factset, Djerri
Slide 21: Dividend Income
Dividend Income The major banks such as Westpac are well positioned to continue their dividend recovery. While we don’t expect BHP’s profits and dividends to remain at recent levels for the long term, the near term yield and long term value remain attractive. Dividend Per Share Dividend Per Share So
Slide 22: Portfolio Construction: Overview
Portfolio Construction: Overview Approach: Constructing a diversified portfolio of high-quality companies across different sectors and with the appropriate balance of Income and Growth is the key for Djerriwarrh to deliver on its Investment Objectives in a variety of market conditions. Key Portfolio
Slide 23: Portfolio Construction: Recent Changes
Portfolio Construction: Recent Changes Sales Option Exercises Purchases Djerriwarrh Annual General Meeting – October 2022 23
Slide 24: Portfolio Construction: Growth
Portfolio Construction: Growth Market Cap: $9.1b Forecast Dividend Yield = 1.8% Reece – Net Profit After Tax ($m) Australia’s dominant plumbing trade and bathroom business. Disciplined and patient expansion into the US market which is a huge long term growth opportunity. Excellent long term financia
Slide 25: Portfolio Construction: Income
Portfolio Construction: Income Market Cap: $2.6b Forecast Dividend Yield = 6.4% SCA Property – Dividends per share A high-quality property trust that owns grocery anchored neighbourhood shopping centres across Australia. Earnings should be resilient given the long term lease structures and exposure
Slide 26: Portfolio Construction: Environment, Social and Governance (ESG)
Portfolio Construction: Environment, Social and Governance (ESG) ESG factors are an important part of the assessment of our companies. We consider a range of ESG elements for our investments, with particular focus on the issues that are most material. Our approach to ESG Regularly reviewing companie
Slide 27: Outlook
Outlook Djerriwarrh Annual General Meeting – October 2022 27
Slide 28: Outlook
Outlook Key topics: - Inflation - Interest rates - Equity market volatility - Geopolitical events Our key areas of focus: - Option income - Dividend income Against this backdrop we remain confident in the quality and diversification of our investment portfolio. Irrespective of any short-term factors
Djerriwarrh Investments — Shareholder Meeting (October 2022) on 6ix