Plato Income Maximiser Ltd. · ASX:PL8

Plato Income Maximiser — H1 FY2023 Earnings Presentation

25 slides from Plato Income Maximiser's earnings presentation, Mar 7, 2023

  1. Slide 1: Shareholder webinar reminder and presentation on half-year results

    Plato Income Maximiser Limited (Company) Level 35, 60 Margaret Street Sydney NSW 2000 T: 1300 010 311 E: invest@plato.com.au ABN 63 616 746 215 For personal use only 7 March 2023 By Electronic Lodgement Market Announcements Office ASX Ltd 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Shareholder w

  2. Slide 2: Company Half-Year FY23 Results

    COMPANY HALF-YEAR FY23 RESULTS PLATO INCOME MAXIMISER LIMITED ASX: PL8 For personal use only 1

  3. Slide 3: Disclaimer

    Disclaimer Note: Past performance is not a reliable indicator of future performance. For personal use only 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 oth

  4. Slide 4: Agenda

    Agenda For personal use only 01 PL8 Company Update 02 Market update 03 Questions 3

  5. Slide 5: PL8

    For personal use only 4 PL8 Company Update

  6. Slide 6: 1HFY23 sees strong portfolio returns

    1HFY23 sees strong portfolio returns For personal use only • 1HFY23 operating profit after tax of $43.4 million (+$28.0m to 1HFY22) • Total dividends of $0.033 per share, equivalent to annualised distributed yield of 8.0%4 • Monthly fully franked dividends at $0.0055 per share representing the large

  7. Slide 7: PL8 NTA performance breakdown for 1HFY23

    PL8 NTA performance breakdown for 1HFY232 For personal use only $1.20 • In 1HFY23, the pre-tax NTA per share increased from $0.984 on 30 June 2022 to $1.054 on 31 $1.15 December 2022. + $0.101 - $0.001 -$0.033 • The $0.070 increase in NTA per $1.10 share reflects the strong + 0.003 $1.054 portfolio

  8. Slide 8: PL8 investment portfolio performance

    PL8 investment portfolio performance PERFORMANCE TO 31 DECEMBER 2022 AFTER FEES AND COSTS* For personal use only Since Half-Year 12 Months Inception p.a.** Including Franking (28/4/2017) Total Portfolio 12.3% 4.5% 9.2% Performance S&P/ASX200 Tax 10.8% 0.5% 8.7% Exempt Excess Return 1.5% 4.0% 0.5% *I

  9. Slide 9: PL8 objective one: generate income in excess of the Benchmark

    PL8 objective one: generate income1 in excess of the Benchmark2 For personal use only Plato Aussie Income Fund (gross normalised) S&P200 Gross 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 May-2022 Sep-2012 Sep-2013 Sep-2

  10. Slide 10: PL8 objective two: outperform the Benchmark

    PL8 objective two: outperform the Benchmark1 For personal use only Source: Plato, Bloomberg. 1 S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Tax-Exempt) *Data as at 31 December 2022 9

  11. Slide 11: Delivering consistent monthly income

    Delivering consistent monthly income PAID SIX MONTHLY DIVIDENDS OF $0.0055 PER SHARE DURING 1HFY23. THIS REPRESENTS THE HIGHEST LEVEL OF MONTHLY DIVIDEND THE COMPANY HAS PAID (EXCLUDING SPECIAL DIVIDENDS) For personal use only Only Australian LIC paying monthly fully franked dividends Source: Plato.

  12. Slide 12: Share price has traded at a premium to NTA

    Share price has traded at a premium to NTA For personal use only Source: Plato, IRESS. Past performance is illustrative only and not indicative of future performance. *Data as at 31 December 2022 11

  13. Slide 13: Market Update

    For personal use only 12 Market Update

  14. Slide 14: Retirees are different

    Retirees are different For personal use only • Retirees are different to accumulators • They need to live off the income from their investments: – Investment income replaces regular salary • They are taxed differently: – The first $1.7m ($1.9m July) in pension phase superannuation is tax free wherea

  15. Slide 15: Pension phase super tax rates are different

    Pension phase super tax rates are different For personal use only Tax effectiveness depends on your tax status! Source : ATO, Plato using 1 July 2020 tax rates including Medicare levy. After tax value of $1 of pre-tax return) 14

  16. Slide 16: Interest rates are rising…

    Interest rates are rising… NOMINAL EARNINGS ON $1M For personal use only Earnings Term Deposits Earnings Bonds $180,000 $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- Source : Plato, RBA updated to 30/12/2022 …but what about inflation? 15

  17. Slide 17: Safe assets now losing you money

    Safe assets now losing you money REAL AFTER INFLATION EARNINGS ON $1M For personal use only Real Earnings Term Deposits Real Earnings Bonds $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- -$20,000 -$40,000 -$60,000 -$80,000 Inflation hit 7.8% in 2022 Source : Plato, RBA updated to 31/12/2022 16

  18. Slide 18: Don't be fooled: Why retirees must get real!

    Don’t be fooled: Why retirees must get real! -5% REAL RETURN MEANS YOU’LL BE ON THE FULL PENSION AT 72… NEGATE REAL RETURNS ARE A KILLER FOR RETIREMENT BALANCES For personal use only $1,200,000 $1,000,000 $800,000 $600,000 $400,000 $200,000 $- 65 66 67 68 69 70 71 72 73 74 75 76 77 78 79 80 81 82 83

  19. Slide 19: Asset Class Outlook for Income

    Asset Class Outlook for Income FORECAST 12 MONTH INCOME AS AT 17/2/2023 For personal use only 31/12/2020 2/03/2021 1/09/2021 1/02/2022 13/07/2022 25/11/2022 17/02/2023 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% Official Overnight 10yr Aust Bonds Term Deposits* Company BB Credit* MSCI World ex Aust

  20. Slide 20: Results season February 2023 - Dividends

    Results season February 2023 - Dividends DIVIDENDS UP BUT SOME RETRACEMENT • Over $35bn in dividends have been declared, 8.9% less than last year. For personal use only • Strong dividend increases: FEB 2023 CHANGE IN DIVIDENDS PCP – Ampol (278%), Viva Energy (316%), Whitehaven Coal (300%), Santos (9

  21. Slide 21: Reporting Season Analysis: CBA

    Reporting Season Analysis CBA For personal use only • Good result, 1H FY23 Cash NPAT of $5,153m, up 9% from PCP in line with expectations. • Interim Dividend 210c vs 175c last year, up 20%. Record interim. • Payout Ratio 69% of 1H FY23 Earnings • 1H Net Interest Margin 2.10% around market expectatio

  22. Slide 22: Reporting Season Analysis: Wesfarmers

    Reporting Season Analysis WESFARMERS For personal use only • Good result - 1H FY23 NPAT of $1.3bn, 14% above pcp, revenue up 27%. • Interim dividend 88c vs 80c last year. • Retail trading results through the first five weeks of 2H23 have been broadly in line with growth reported for 1H23. *Companies

  23. Slide 23: Dividend cut risk rising but still within normal range

    For personal use only 22 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 200112 200205 200210 200303 200308 200401 200406 200411 200504 Source: Plato, based on MSCI World IMI (Australian portion) 200509 200602 200607 200612 200705 200710 200803 200808 200901 200906 200911 AVERAGE % CHANCE OF DIVIDEND CUTS

  24. Slide 24: The income summary

    The income summary For personal use only Bad news: Interest rates are rising quickly – rising interest rates will challenge asset prices but “safe assets” face negative real returns Good news: Dividends are still strong – Plato dividend cut model still fairly benign – Balance sheets are strong – Act

  25. Slide 25: Thank You

    For personal use only 24 THANK YOU Questions

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