AMCIL Limited · ASX:AMH
AMCIL — Investor Presentation (March 2023)
42 slides from AMCIL's investor presentation, Mar 17, 2023
Slide 1: Information Meetings – Presentation
17 March 2023 For personal use only The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement AMCIL Limited Information Meetings – Presentation Dear Sir / Madam Please find attached the presentation to be given a
Slide 2: Shareholder Meeting March 2023
For personal use only Shareholder Meeting March 2023 Shareholder Meeting March 2023
Slide 3: Agenda
Agenda For personal use only Overview of the Investment Process Mark Freeman/Investment Team Market Conditions Mark Freeman Portfolio Updates: Djerriwarrh Brett McNeill Mirrabooka Kieran Kennedy AMCIL Mark Freeman Outlook Mark Freeman 2 Shareholder Meeting March 2023
Slide 4: Disclaimer
Disclaimer For personal use only Djerriwarrh Investments Limited, Mirrabooka Investments Limited and AMCIL Limited and their service provider Australian Investment Company Services Limited (AICS) (AFSL 303209), their related entities and each of their respective directors, officers and agents (toget
Slide 5: Overview of the Investment Process
For personal use only Overview of the Investment Process Shareholder Meeting March 2023
Slide 6: Investment Approach
Investment Approach For personal use only Attributes of a high-quality company Why this matters: that we seek: • Industry leadership position (or developing one) • The presence of these factors drives a competitive advantage • Unique assets that are hard to replicate • Conservative balance sheets (l
Slide 7: ESG Components are Integrated into our Investment Framework
ESG Components are Integrated into our Investment Framework For personal use only Approach to Environmental, Social and Engagement with Governance (ESG) Factors Companies • Assessment of ESG risk factors is an important Voting on resolutions is one of the key functions part of our investment process
Slide 8: Examples of Companies Fitting the Investment Process
Examples of Companies Fitting the Investment Process: For personal use only Profit Split by Business Profit Split by Region Source: 1H23 Company Reports, Factset. 7 Shareholder Meeting March 2023
Slide 9: Commodities and Global Markets
Examples of Companies Fitting the Investment Process For personal use only Commodities and Global Markets • Macquarie are now a leader in commodities trading in North America. • Their scale and expertise has been built over decades, and is now very hard to replicate. • As a result, Macquarie is uniq
Slide 10: Capital and Asset Management
Examples of Companies Fitting the Investment Process For personal use only Capital and Asset Management • The Maher Asset Terminals is the largest container terminal operator in the Port of New York/New Jersey. • It is a unique asset in terms of its location and pricing power. • Recent sales of near
Slide 11: Examples of Companies Fitting the Investment Process
Examples of Companies Fitting the Investment Process For personal use only Australia’s leading producer and distributor of four-wheel drive accessories establishing a growing presence in the US, Europe and Asia. Owner driver business with the Brown family heavily involved since its founding in 1975.
Slide 12: Market Conditions
For personal use only Market Conditions Djerriwarrh Annual General Meeting – October 2022 11
Slide 13: Global conditions remain very volatile
Global conditions remain very volatile For personal use only 12 Shareholder Meeting March 2023
Slide 14: Large divergence in sector performance
These conditions have produced a large divergence in sector performance – annual return to 28 February 2023 S&P/ASX200 Price Index Sector Performance* For personal use only *Includes dividends but not franking 13 Shareholder Meeting March 2023
Slide 15: Australian and US markets – margins under pressure, valuations down
The Australian and US markets – margins now coming under pressure, valuations down from their peaks Profitability (EBITDA – %) Price/Earnings Ratio – Times For personal use only Australia S&P ASX 200 Ave 14.5 Ave 20.7 US S&P 500 Ave 18.7 Ave 15.7 Source: FactSet. As at 28 February 2023 14 Shareholde
Slide 16: State of play in early 2023
State of play in early 2023 For personal use only Inflation outbreak Sharp interest rate increases Slowing economic activity • Some temporary impacts • Much anticipation/hope • Activity has remained have eased from their that a cycle peak in rates is relatively resilient to date. peak… near. freight
Slide 17: Themes of the recent reporting season
What were the themes of the recent reporting season? For personal use only Cost inflation Prices driving revenue Margin pressure building Cost Inflation evident – Price rises taken to maintain margins Caution that future price rises are Key manufacturing inputs, energy, – price a far more material r
Slide 18: Djerriwarrh
rq Dyerriwarrh 2 R N EQUI NH
Slide 19: About Djerriwarrh
About Djerriwarrh For personal use only 18 Shareholder Meeting March 2023
Slide 20: Djerriwarrh dividends paid - five year recap
Djerriwarrh dividends paid - five year recap cents For personal use only 19 Shareholder Meeting March 2023
Slide 21: Djerriwarrh dividend yield vs the ASX Index
Djerriwarrh dividend yield vs the ASX 200 Index - five year recap For personal use only Assumes an investor can take full advantage of the franking credits. S&P/ASX 200 Index is the historic yield and 70 per cent franked. Finacial years other than 2023 where figures for Djerriwarrh are based on the
Slide 22: Djerriwarrh net asset backing performance
Djerriwarrh net asset backing performance - five year recap For personal use only Finacial years other than 2023 which is 12 months to 28 February. Assumes an investor can take full advantage of the franking credits. Past performance is not indicative of future performance. 21 Shareholder Meeting Ma
Slide 23: Portfolio Update: Options
Portfolio Update: Options Options are written against selected portfolio holdings in order to generate additional income. The options strategy is a key For personal use only component of Djerriwarrh’s Enhanced Yield objective. S&P/ASX 200 Price Index Closed a number of put options Closed out remaini
Slide 24: Portfolio Update: Summary
Portfolio Update: Summary Constructing a diversified portfolio of high-quality companies across different sectors and with the appropriate balance For personal use only of Income and Growth is the key for Djerriwarrh to deliver on its Investment Objectives in a variety of market conditions. Key Port
Slide 25: For personal use only
For personal use only
Slide 26: About Mirrabooka
About Mirrabooka For personal use only 25 Shareholder Meeting March 2023
Slide 27: Portfolio Performance – Per Annum Returns
Portfolio Performance – Per Annum Returns to 28 February 2023 For personal use only * Assumes an investor can take full advantage of the franking credits. Mirrabooka's portfolio return is also calculate after management fees, income tax and capital gains tax on realised sales of investments. It shou
Slide 28: Portfolio performance – long term relative to short term
Portfolio performance – long term relative to short term Consistent with our approach, our long term performance track record is far more consistent than For personal use only short term. Mirrabooka Relative Performance Since Inception 27 Shareholder Meeting March 2023
Slide 29: How are we responding to challenging market conditions?
How are we responding to challenging market conditions? For personal use only Portfolio decisions based on fundamentals, not economic predictions forecasters are far more often wrong because circumstances change we won’t be able to predict, and will be late to identify, when pressures have eas
Slide 30: Recent portfolio changes
Recent portfolio changes For personal use only New Exited Tourism Holdings Material reduction 29 Shareholder Meeting March 2023
Slide 31: Mirrabooka Top Holdings – February 2023
Mirrabooka Top 20 Holdings – 28 February 2023 % of % of Company Ownership Period Company Ownership Period Portfolio Portfolio For personal use only 1 5.7% 7.5 yrs 11 Equity Trustees 2.6% 17.5 yrs 2 4.9% 6 yrs 12 2.5% 17 yrs 3 4.2% 12.5 yrs 13 2.5% 5.5 yrs 4 3.6% 6.5 yrs 14* 2.4% 3 yrs 5* 3.0% 9 yrs
Slide 32: For personal use only
For personal use only
Slide 33: About AMCIL
About AMCIL For personal use only v 32 Shareholder Meeting March 2023
Slide 34: Portfolio Performance – Per Annum Returns
Portfolio Performance – Per Annum Returns to 28 February 2023* For personal use only * Assumes an investor can take full advantage of the franking credits. AMCIL’s portfolio return is also calculated after management fees, income tax and capital gains tax on realised sales of investments. It should
Slide 35: Portfolio Management – Recent Transactions
Portfolio Management – Recent Transactions For personal use only Sales New Purchases Complete Disposals Additions to Existing Holdings 34 Shareholder Meeting March 2023
Slide 36: New Purchases
New Purchases For personal use only • Market leader/stalwart. • Well capitalised, strong cash generation and solid dividend yield and option income. • Established a position during recent share price weakness. • Preferred bank exposure (alongside CBA). • Backable management team. • Attractive fully
Slide 37: AMCIL key holdings – longer term context against recent falls
AMCIL key holdings – A longer term context against recent falls For personal use only Returns to 28 February 2023, do not include dividends and franking 36 Shareholder Meeting March 2023
Slide 38: Quality of companies in AMCIL's Top 20 Holdings
We remain confident about the quality of companies in AMCIL's Top 20 Holdings For personal use only Rank Company % of Portfolio Rank Company % of Portfolio 1 CSL* 11.3% 11 Carsales.com* 3.2% 2 Macquarie Group 6.3% 12 ResMed 3.0% 3 BHP* 6.0% 13 Macquarie Telecom Group 3.0% 4 Wesfarmers* 5.8% 14 Auckl
Slide 39: Outlook
For personal use only October 2022 Outlook
Slide 40: Outlook
Outlook We are cautious due to: For personal use only • A challenged economic outlook while central banks continue to battle elevated inflation with higher interest rates • Company valuations that remain relatively high compared to returns now available on competing investments like term deposits •
Slide 41: Share Price Relative to Net Asset Backing – February 2023
Share Price Relative to Net Asset Backing – 28 February 2023 For personal use only 40 Shareholder Meeting March 2023
Slide 42: Questions
For personal use only Questions 41 Shareholder Meeting March 2023