Argo Investments Limited · ASX:ARG

Argo Investments — Shareholder Meeting (October 2017)

26 slides from Argo Investments's shareholder meeting presentation, Oct 23, 2017

  1. Slide 1: Welcome to the 2017 Annual General Meeting

    For personal use only 1 Welcome to the 2017 Annual General Meeting

  2. Slide 2: Summary of financial results for the year ended 30 June 2017

    2 Summary of financial results for the year ended 30 June 2017 For personal use only 2017 2016 change Profit $211.5 million $216.3 million -2.2% Earnings per share 30.7 cents 32.0 cents -4.1% Total dividends per share for the 31.0 cents 30.5 cents +1.6% full year Net tangible asset backing (NTA) $7.

  3. Slide 3: Cash rate v Argo dividends 15 year history

    3 Cash rate v Argo dividends 15 year history (excluding franking credits) For personal use only 8.0% 35 31.0 30.5 28.0 29.5 7.0% 26.5 30 26.0 26.0 27.0 25.0 6.0% 30.0 27.0 25 24.0 5.0% 21.0 18.0 20 18.0 4.0% 15 3.0% 10 2.0% 1.50% 1.0% 5 0.0% 0 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2

  4. Slide 4: Lonsec rating upgrade and awards

    LISTED INVESTMENT | LISTED INVESTMENT SELF MANAGED | company COMPANY SMSF MEMBER SUPER FUND WINNER WINNER © RIN LESEENIRININ * SSX) INVESTMENT RESEARCH wv recent rating upgrade Highly ‘Highly Recommended’ Recommended Lonsec Research IE>Y ~~ wmwup— ——Y, »~, EE lCOeeeE,l—eleeeeeele,lC—eEeeeeeee,l( —=E

  5. Slide 5: Total Returns to September 2017: % per annum

    5 Total Returns to 30 September 2017: % per annum For personal use only 12.0% 11.6% 9.8% 10.1% 9.1% 7.7% 7.0% 5.8% 4.9% 3.9% 3.3% 3.1% 1 Year 3 Years 5 Years 10 Years Share Price NTA S&P/ASX 200 acc.

  6. Slide 6: Argo attributes

    6 Argo attributes For personal use only A truly long-term, conservative investment philosophy An internally managed, low-cost business model with no performance fees A strong balance sheet with no debt Diversification of risk and administrative simplicity Active portfolio management offered by an ex

  7. Slide 7: Argo's objective

    7 “Argo’s objective is to maximise long-term returns to For personal use only shareholders through a balance of capital and dividend growth. It does this by investing in a diversified Australian equities portfolio which is actively managed in a low cost structure in a tax-aware manner.”

  8. Slide 8: Outlook

    8 Outlook For personal use only Underlying global macroeconomics have improved despite political uncertainty Australian economy continues to grow despite some conflicting signals Market valuations look somewhat stretched Cautious approach with cash available

  9. Slide 9: S&P/ASX performance excluding dividends

    9 S&P/ASX 200 performance excluding dividends For personal use only 7000 6500 ASX 200 6000 5500 5000 4500 4000 3500 3000 2500 2000 source: FactSet

  10. Slide 10: S&P/ASX v Accumulation Index including dividends

    10 S&P/ASX 200 v Accumulation Index including dividends For personal use only 200 180 Accumulation Index 160 140 120 Price Index 100 80 60 40 20 0 source: FactSet

  11. Slide 11: S&P/ASX dividend growth last three financial years

    11 S&P/ASX 20 dividend growth last three financial years (FY) For personal use only 200% 150% 100% 50% 0% -50% -100% FY15 FY16 FY17 source: FactSet

  12. Slide 12: Dividend payers within the portfolio

    12 Dividend payers within the portfolio For personal use only 5% 2% Grower Maintainer Cutter 35% Non-payer 58%

  13. Slide 13: Major investment purchases during the year to June 2017

    13 Major investment purchases during the year to 30 June 2017 For personal use only

  14. Slide 14: Major investment sales during the year to June 2017

    14 Major investment sales during the year to 30 June 2017 For personal use only

  15. Slide 15: Investment purchases since year end to September 2017

    15 Investment purchases since year end to 30 September 2017 For personal use only Total purchases of approximately $50m, with larger purchases including:

  16. Slide 16: Event Hospitality & Entertainment (EVT)

    16 Event Hospitality & Entertainment (EVT) For personal use only

  17. Slide 17: George Street Sydney

    GEORGE STREET SYDNEY Cen ees! 4 GEORGE STREET 4 at a — iS © LL ™@ 458-472 GEORGE STREET MAY2017 O OWNED PROPERTY put PEDESTRIAN ZONES «| 4 ay | MARKET STREET X

  18. Slide 18: Top equity investments as at September 2017

    18 Top 20 equity investments as at 30 September 2017 For personal use only $M $M Westpac Banking Corporation 354.8 Australian United Investment Co. 123.8 ANZ Banking Group 289.0 Milton Corporation 107.4 Commonwealth Bank of Australia 241.1 Woolworths 104.2 Wesfarmers 224.8 Sydney Airport 102.8 Macqu

  19. Slide 19: Portfolio sector allocation as at September 2017

    19 Portfolio sector allocation as at 30 September 2017 For personal use only 7.1% 5.5% Listed Investment Companies 4.5% 7.4% 3.5% Cash Utilities 4.3% 5.6% Telecommunication Services & I.T. Property 4.0% Materials Industrials Health Care 20.3% 13.4% Other Financials Banks Energy 6.0% Consumer Staples

  20. Slide 20: Rural Funds Group product & climatic diversification

    20 Rural Funds Group (RFF) product & climatic diversification Quality agricultural exposure is hard to find in ASX-listed environment For personal use only source: RFF

  21. Slide 21: Rural Funds Group business strategy

    21 Rural Funds Group business strategy Invest across full spectrum of assets, whilst ensuring asset mix continues to fund distributions For personal use only source: RFF

  22. Slide 22: Rural Funds Group total shareholder return

    22 Rural Funds Group total shareholder return For personal use only $29,000 June 2017: $79m Entitlement Offer $24,000 July 2016: $61m Entitlement Offer March 2016: S&P/ ASX300 inclusion $19,000 Oct 2015: $35m Entitlement Offer March 2015: $14,000 $15m Entitlement Offer $9,000 Jun-14 Sep-14 Dec-14 Ma

  23. Slide 23: Outlook

    23 Outlook For personal use only US markets at all time highs; cautious on higher interest rates Ongoing economic growth in China is vital Banks face well-publicised head winds; increasingly stretched consumers Domestic economy will continue to grow

  24. Slide 24: Outlook: Technology change and disruption continues

    24 Outlook For personal use only Technology change and disruption continues…

  25. Slide 25: Executive team

    25 Executive team For personal use only Jason Beddow Managing Director Andy Forster Tim Binks Andrew Hill Senior Investment Officer Chief Operating Officer Chief Financial Officer Brydie Lloyd- Colin Andrew Stephen Jo Paul Frost Roberts Whitehead Moller Mortimer Chipperfield Investment Analyst Inves

  26. Slide 26: Investing in Australia

    Investing in Australia As <a 26 IE>Y ~~ wmwup— ——Y, »~, EE lCOeeeE,l—eleeeeeele,lC—eEeeeeeee,l( —=Eeeeeeee,lC—=Eeee,,,tltC—=E:i‘i—iaTS

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