Washington H. Soul Pattinson And Company Limited · ASX:SOL
Washington H. Soul Pattinson And — Investor Presentation (September 2024)
25 slides from Washington H. Soul Pattinson And's investor presentation, Sep 26, 2024
Slide 1: FY24 results
FY24 results for the financial year ended 31 July 2024 26 September 2024 SoulPatts.com.au
Slide 2: Presenters
Presenters Todd Barlow Brendan O’Dea Managing Director & Chief Investment Officer Chief Executive Officer SOL FY24 Results 2
Slide 3: A diversified investment house that is unique in Australia
A diversified investment house that is unique in Australia Our aim is to grow shareholder wealth through a diversified range of investments that perform throughout market cycles. $ 11.8 b Total Portfolio Net Asset Value (pre-tax) • 200+ actively managed investments • Targeting high quality risk-adju
Slide 4: Group performance highlights
Group performance highlights
Slide 5: FY24 highlights
FY24 highlights Shareholders People Communities • Strong performance, strategy continues to deliver – growth in cash flows – increased portfolio value – well-managed investment risk • Long-term value creation – smart portfolio allocation choices – momentum in investment activity – strong performance
Slide 6: Delivering against strategy
Delivering against strategy Long-term commitment, strength of conviction and unconstrained mandate creating value 1 Increase cash generation 2 Grow the portfolio 3 Manage investment risk Net Cash Flow From Investments Net Asset Value (pre-tax) per share Transaction activity ▲ 10.3% vs pcp ▲ 12.0% pe
Slide 7: Generating enduring value: 3-year performance
Generating enduring value: 3-year performance Milton acquisition transformative, delivered significant strategic and financial momentum 1 Increase cash generation 2 Grow the portfolio 3 Manage investment risk Net Cash Flow From Investments Net Asset Value (pre-tax) per share Transaction activity ▲ 2
Slide 8: 24 years consecutive dividend growth
24 years consecutive dividend growth Ordinary interim and final dividend increases at a CAGR of 9.6% 3-year CAGR 15.3% FY24 ordinary dividends of 95 cents per share (fully franked), 9.2% higher than pcp • Record date: 16 October 2024 • Payment date: 8 November 2024 55 51 43 final dividend (cps) 35 3
Slide 9: Sustainable long-term performance
Sustainable long-term performance Capital and income growth through share price and dividends Cumulative performance to 31 July 2024 (including reinvestment of dividends) Soul Patts’ Total Shareholder Return compounded at 11.7% p.a., outperforming market over 20 years by 3.0% p.a. Annualised return
Slide 10: Group financial results
Group financial results
Slide 11: Group profit $498.8m, down 27.8% vs pcp
Group profit Statutory NPAT • Statutory NPAT reflects lower profit contributions from FY24 $498.8m Strategic Portfolio investments – Brickworks: impairments in building products business and property devaluations ↓ 27.8% vs pcp – New Hope: coal prices coming off record highs FY23 $690.7m • Result of
Slide 12: Net Cash Flow From Investments $468.0m, up 10.3% vs pcp
Net Cash Flow From Investments Increase driven by Credit and Emerging Companies Portfolios Net Cash Flow From Investments $ millions $468.0m 33.3 FY24 66.9 468.0 (29.7) 424.3 (26.9) ↑ 10.3% vs pcp $424.3m Credit FY23 Portfolio growth Trading Gains Realised Large Caps rebalancing Lower New Hope Divid
Slide 13: Net Asset Value $11.8b, up 8.7% vs pcp
Net Asset Value Net Asset Value (pre-tax) • NAV increase of 8.7% to $11.8 billion in FY24 • Adjusted for dividends, this represents a return of 12% 1 FY24 $11.8b • Strong performance across all portfolios reflects active capital allocation to new investments ↑ 8.7% vs pcp FY24 Portfolio Total Return
Slide 14: Portfolio performance
Portfolio performance
Slide 15: Portfolio composition
Portfolio composition $11.8b actively managed diverse portfolio $5.7b $2.3b $1.6b $1.1b $1.1b $146.8m $(131.1)m 1 1 2 2 Strategic Large Caps Private Emerging Credit Property Net Working 2 1,2 Equity Companies Capital 1. At Market Value FY23 portfolio size SOL FY24 Results 2. At Cost, Directors’ Fair
Slide 16: Strategic
Strategic Significant, long-term investments in listed companies that generate reliable income 49% of total portfolio (vs 48% in FY23) Portfolio delivered total return of 11.0% FY24 FY23 Portfolio Value $5.7b $5.2b TUA Net Cash Flow From Investments $269.0m $295.9m BKW Apex • Portfolio strong contri
Slide 17: Large Caps
Large Caps Actively managed listed equities generating long-term total returns 20% of total portfolio (vs 21% in FY23) Diversified Financials FY24 FY23 Consumer Discretionary Portfolio Value $2.3b $2.3b Net Cash Flow From Investments $88.8m $118.5m Materials Industrials Health Care • Strong portfoli
Slide 18: Private Equity
Private Equity Long-term investments in unlisted companies with growth opportunities 13% of total portfolio (vs 11% in FY23) FY24 FY23 FY24 IRR FY24 Additional Portfolio Value $1.6b $1.2b Investment Net Cash Flow From Investments $29.7m $15.0m education 32% nil financial services • Portfolio value g
Slide 19: Emerging Companies
Emerging Companies Exposure to fast growing companies leveraging structural changes and global trends 9% of total portfolio (vs 6% in FY23) FY24 FY23 1 Portfolio Value $1.1b $0.6b $50-200m Net Cash Flow From Investments $46.4m $15.9m $250-500m • Portfolio value grew 68.2% vs pcp supported by new inv
Slide 20: Credit
Credit Growing portfolio targeting income and strong risk-adjusted returns 9% of total portfolio (vs 6% in FY23) FY24 FY23 Portfolio Value $1.1b $0.7b Net Cash Flow From Investments $108.4m $41.5m junior secured junior unsecured • Portfolio value grew 65.1% vs pcp, with a return of 14.9% • $644m of
Slide 21: Strategic capital management
Strategic capital management Cash deployed and capital raising (Aug 2024), positioned well for new investments Capital raise replenishes cash Net debt of $160m after an active year after active FY24 of investing Parent FY24 FY23 $ millions 911 Cash $214.0m $911.0m Borrowings $(373.8)m $(225.0)m 450
Slide 22: Outlook
Outlook
Slide 23: Outlook
Outlook 1 Increase cash generation 2 Grow the portfolio 3 Manage investment risk from our portfolio of investments and outperform the market and protect shareholder and underpin dividend growth over the long term capital • Cash generation continues to • Capital raising creates strong • Diversified,
Slide 24: Glossary
Glossary Soul Patts presents certain alternative performance measures, which are used by management to assess the performance of the business against its principal objective of maximising capital and income returns over the long term. They are not a substitute for Australian Accounting Standard meas
Slide 25: Disclaimer
Disclaimer This document has been prepared by Washington H. Soul Pattinson (‘Soul Patts’). All information contained in this document (including this notice) (‘Information’) is confidential. By receiving the Information you are deemed to agree that you will hold the Information in strict confidence,
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