Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — H1 FY2022 Earnings Presentation
25 slides from Plato Income Maximiser's earnings presentation, Mar 1, 2022
Slide 1: Company Half-Year 1HFY22 Results
COMPANY HALF-YEAR 1HFY22 RESULTS PLATO INCOME MAXIMISER LIMITED ASX: PL8 1
Slide 2: Disclaimer
Disclaimer Note: Past performance is not a reliable indicator of future performance. This communication has been prepared by Plato Income Maximiser Limited ABN 63 616 746 215 (PL8). Nothing contained in this communication constitutes investment, legal, business, taxation or other advice. This commun
Slide 3: Agenda
Agenda 01 PL8 Company Update 02 Market update 03 Questions 3
Slide 4: PL8 Company Update
o » ior} ne) Q, =) may q sv} Q, g ) oO (oe) —] A
Slide 5: 1HFY22 sees dividends restored and Company growth
1HFY22 sees dividends restored and Company growth • 1HFY22 operating profit after tax of $15.4 million • Total dividends of $0.0285 per share, equivalent to annualised distributed yield of 6.4%1,3 • Monthly fully franked dividends increased from $0.0045 per share to $0.005 per share from October 202
Slide 6: PL8 investment portfolio performance
PL8 investment portfolio performance PERFORMANCE TO 31 DECEMBER 2021 AFTER FEES AND COSTS* Since Half-Year 12 Months Inception p.a.** Including Franking (28/4/2017) Portfolio 4.0% 16.5% 10.2% S&P/ASX200 Tax 4.6% 18.8% 10.6% Exempt Active -0.6% -2.3% -0.4% *Inclusive of the net impact of GST and Redu
Slide 7: PL8 delivering high income
PL8 delivering high income 12 month realised yield* 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% RBA Cash Rate S&P/ASX 200 PL8 CASH 0.1 3.7 4.3 FRANKING 0.0 1.3 1.8 *to 31 December 2021, Plato, Bloomberg 7
Slide 8: Chart of Plato Income Performance
Chart of Plato Income Performance Plato Aust. Shares Income Fund v S&P/ ASX200 Accumulation Series (incl. Franking Credits) 3.80 3.30 2.80 2.30 1.80 1.30 0.80 Sep-2011 Sep-2012 Sep-2013 Sep-2014 Sep-2015 Sep-2016 Sep-2017 Sep-2018 Sep-2019 Sep-2020 Sep-2021 Plato Australian Shares Income Fund Total
Slide 9: Delivering consistent monthly income
Delivering consistent monthly income INCREASED MONTHLY DIVIDENDS TO $0.005 PER SHARE Only Australian LIC paying monthly fully franked dividends 9 Source: Plato. While monthly income has been consistent since October 2017, this may change in the future. The declaration of dividends by the company is
Slide 10: PL8 NTA performance breakdown for 1HFY22
PL8 NTA performance breakdown for 1HFY22 PRE-TAX NTA PER PL8 SHARE* Source: Plato. *Excludes franking credits. 10
Slide 11: Share price has traded at a premium to NTA
Share price has traded at a premium to NTA PL8 PRICE VERSUS PRE-TAX NTA SINCE LISTING Source: Plato, IRESS. Past performance is illustrative only and not indicative of future performance. 11
Slide 12: Growing asset and shareholder base
Growing asset and shareholder base PL8 ASSET AND SHAREHOLDER BASE UP >100% SINCE IPO Source: Plato, Automic, ASX Company net assets at IPO is net of IPO costs. Current net assets is after the payment of $0.276 per share in dividends since inception. 12
Slide 13: Market Update
Market Update 13
Slide 14: RBA forecasts three years of record low 0.1% cash rate
RBA forecasts three years of record low 0.1% cash rate OFFICIAL RBA CASH RATE EXPECTATIONS – EVEN LOWER FOR LONGER Source: RBA, Plato 14
Slide 15: But the market has different ideas!
But the market has different ideas! FUTURES MARKET IMPLIED CASH RATES Source: Macquarie Equities 15
Slide 16: Results season August 2021 - Dividends
Results season August 2021 - Dividends EARNINGS UP AND DIVIDENDS EVEN MORE • Over $38bn in dividends have been declared, $17bn more than last year and $10bn more than in 2019. • Strong dividend increases: 2020 AND 2021 CHANGE IN DIVIDENDS PCP – BHP (263%), Rio Tinto (251%), Fortescue (111%) and Mine
Slide 17: Tax effective buy-backs can be very advantageous
Tax effective buy-backs can be very advantageous CBA BUYBACK – WORTH 14% AFTER TAX FOR ZERO TAX INVESTORS • A$6bn off market buyback - >3.5% of shares on issue • Worth 14% for pensioners for every share successfully tendered • Scale back 79.4% Source: Plato, CBA announcement 4/10/2021. *based on ave
Slide 18: Big Aussie income stocks doing it tough!
Big Aussie income stocks doing it tough! 6 STOCKS ACCOUNT FOR NEARLY HALF OF ALL DIVIDENDS % of Gross Dividend Income - CY21 Price Performance 1.40 1.30 1.20 BHP Group 1.10 Commonwealth Bank 1.00 Fortescue Metals 0.90 National Australia Bank ANZ 0.80 Rio Tinto 0.70 Other 0.60 0.50 28/04/2017 28/04/2
Slide 19: Largest Contributors to Income
Largest Contributors to Income YEAR TO 31 DECEMBER 2021 Top 10 Contributors to Excess Income Investment Reasoning (Last 12mths) Excess Income Return Capital Income Stock Yield Run up Value Momentum Reasoning (%) (%) (%) (%) Large yield, total return took a hit during Q3 as iron ore Fortescue Metals
Slide 20: Largest Contributors to Active Performance
Largest Contributors to Active Performance YEAR TO 31 DECEMBER 2021 Top 10 Contributors To Active Performance (Last 12mths) Investment Reasoning Active Performance Return Capital Income Stock Yield Run up Value Momentum Reasoning (%) (%) (%) (%) Afterpay Touch 0.64 -29.7 -29.7 0.0 O O O Underweight,
Slide 21: Winning by not losing - avoiding dividend traps
Winning by not losing - avoiding dividend traps MAGELLAN FINANCIAL UP TO 14% GROSS DIVIDEND YIELD 60 15.00% 55 14.00% 13.00% 50 12.00% 45 Historical Yield (%) 11.00% 40 Price 10.00% 35 9.00% 30 8.00% 25 7.00% 20 6.00% 15 5.00% Price (LHS) Historical Gross Yield (RHS) Source: Plato, Bloomberg 21
Slide 22: Asset Class Outlook for Income
Asset Class Outlook for Income FORECAST 12 MONTH INCOME AS AT 01/02/2022 31/12/2020 2/03/2021 1/09/2021 1/02/2022 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Official Overnight Cash 10yr Aust Bonds Term Deposits* Company BB Credit* MSCI World ex Aust REITs Aust Equities (Gross) Source: Plato, Bloomber
Slide 23: Yields on all asset classes have fallen
Yields on all asset classes have fallen BUT NOTE THE RECENT INCREASE Plato Aussie Income Fund (gross normalised) S&P200 Gross CashRate 12 Mth Term Deposit 3yr BBB Credit 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% May-2013 May-2014 May-2015 May-2016 May-2017 May-2018 May-2019 May-2020 May-2021 Sep-2
Slide 24: The income summary
The income summary Bad news: Interest rates to remain at historic lows – 1-2 years of bad news for retirees in term deposits Good news: Dividends have rebounded strongly – PL8 monthly dividend restored to pre-pandemic levels – Plato dividend cut model returns to normal – Strong dividends from iron o
Slide 25: Questions
Questions THANK YOU 25
Plato Income Maximiser — H1 FY2022 Earnings Presentation on 6ix