Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — Shareholder Meeting (November 2022)
37 slides from Plato Income Maximiser's shareholder meeting presentation, Nov 21, 2022
Slide 1: 2022 Annual General Meeting
2022 ANNUAL GENERAL MEETING PLATO INCOME MAXIMISER LIMITED ASX: PL8 For personal use only 21 November 2022 1
Slide 2: Agenda
Agenda For personal use only 01 02 Chairman’s Address Formal Business 03 04 Investment Manager Update Questions 2
Slide 3: Chairman's Address
For personal use only Chairman’s Address Mr. Jonathan Trollip 3
Slide 4: PL8 Overview
PL8 Overview PLATO INCOME MAXIMISER LIMITED For personal use only First and only Based on the Designed specifically Australian Listed investment strategy of with retiree investors Investment Company the Plato Australian in mind (pension phase (LIC) paying monthly Shares Income Fund superannuation or
Slide 5: Performance
Performance Portfolio Performance1 For personal use only • 8.9% annualised total return from inception date3 to 31 October 2022 Income1 • 7.6% annualised income from inception date3 to 31 October 2022 TSR Performance2 • 7.4% annualised from listing date3 to 31 October 2022 1 Past performance is not
Slide 6: Dividend Update
Dividend Update INCREASED MONTHLY DIVIDENDS TO $0.0055 PER SHARE; SPECIAL 5TH BIRTHDAY DIVIDEND OF $0.0055 PER SHARE IN MAY1 For personal use only MONTHLY DIVIDENDS 0.6 0.5 0.4 Cents per share 0.3 0.2 0.1 0 Monthly Dividends at highest level since IPO 1 The chart refers only to the monthly PL8 divid
Slide 7: Share price has traded at a premium to NTA
Share price has traded at a premium to NTA PL8 NTA PREMIUM RESTORED AFTER TEMPORARY FALL DURING NOVEMBER 2021 PLACEMENT AND SPP For personal use only $1.35 30.00% $1.30 25.00% $1.25 Share Price / Pre-tax NTA 20.00% Premium / (Discount) % $1.20 $1.15 15.00% $1.10 10.00% $1.05 5.00% $1.00 $0.95 0.00%
Slide 8: PL8 Share Purchase Plan
PL8 Share Purchase Plan Share Purchase Plan (SPP) For personal use only • The SPP is an opportunity for Eligible Shareholders (PL8 shareholders on the record date of 18 November 2022) to purchase up to $30,000 worth of new fully paid ordinary shares (New Shares) without incurring brokerage or transa
Slide 9: PL8 Share Purchase Plan
PL8 Share Purchase Plan How to apply For personal use only • The Booklet and your personalised Application Form will be sent to you on 23 November 2022 either by email or post (depending on your shareholder communication preference set up with the PL8 share registry Automic) • You can also access yo
Slide 10: Formal Business
For personal use only Formal Business Mr. Jonathan Trollip 10
Slide 11: Financial statements and reports
Formal Business Financial statements and reports For personal use only Consideration of financial statements and reports 11
Slide 12: Resolution: Adoption of the Remuneration Report
Formal Business Resolution 1 For personal use only Adoption of the Remuneration Report To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That the Remuneration Report of the Company for the financial year ended 30 June 2022 be adopted” 12
Slide 13: Resolution - proxies
Formal Business Resolution 1 - proxies For personal use only Shares Voted For 85.85% 15,203,675 Open 6.29% 1,114,317 Against 7.86% 1,391,503 Abstain 415,045 13
Slide 14: Re-election of Katrina Onishi as a director
Formal Business Resolution 2 For personal use only Re-election of Katrina Onishi as a director To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Ms Katrina Onishi, who retires by rotation in accordance with rule 6.7 of the Company’s Constitution and,
Slide 15: Resolution - proxies
Formal Business Resolution 2 - proxies For personal use only Shares Voted For 93% 16,590,358 Open 6.52% 1,162,842 Against 0.48% 86,251 Abstain 285,089 15
Slide 16: Re-election of Jonathan Trollip as a director
Formal Business Resolution 3 For personal use only Re-election of Jonathan Trollip as a director To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Jonathan Trollip, who retires by rotation in accordance with rule 6.7 of the Company’s Constitution a
Slide 17: Resolution - proxies
Formal Business Resolution 3 - proxies For personal use only Shares Voted For 92.25% 16,688,381 Open 6.43% 1,162,842 Against 1.32% 238,227 Abstain 35,090 17
Slide 18: Re-election of Chris Meyer as a director
Formal Business Resolution 4 For personal use only Re-election of Chris Meyer as a director To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Mr Chris Meyer, having been appointed to the Board since the last Annual General Meeting of the Company and r
Slide 19: Resolution - proxies
Formal Business Resolution 4 - proxies For personal use only Shares Voted For 92.69% 16,335,718 Open 6.60% 1,162,842 Against 0.71% 124,591 Abstain 63,250 19
Slide 20: Investment Manager Update
For personal use only Investment Manager Update Dr. Don Hamson 20
Slide 21: PL8 delivering high income month realised yield
PL8 delivering high income 12 month realised yield* For personal use only 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% S&P/ASX 200 PL8 CASH 4.4 5.6 FRANKING 1.6 2.4 *to 30 September 2022, Plato, Bloomberg 21
Slide 22: Chart of Plato Income Performance – to Sep 2022
Chart of Plato Income Performance – to 30 Sep 2022 Plato Aust. Shares Income Fund v S&P/ ASX200 Accumulation Series (incl. Franking Credits) For personal use only Indexed to $100k since inception Source: Plato, Bloomberg. Franking credits have been valued from the perspective of a tax-exempt investo
Slide 23: Significant uncertainty: It was the worst of times
Significant uncertainty IT WAS THE WORST OF TIMES For personal use only • Rapidly rising inflation – highest in 30 years ex GST introduction • Now rapidly rising interest rates - 2.75% rise in 6 mths • War in Ukraine • Supply chain issues due to COVID • House prices falling • Bonds and equities sell
Slide 24: Significant uncertainty: It was the best of times
Significant uncertainty IT WAS THE BEST OF TIMES For personal use only • Economy is at full employment • Official overnight cash rate is still close to “normal” lows • Corporate balance sheets are strong, debt levels low • Some Australian companies well placed to benefit from war in Ukraine • House
Slide 25: Last year RBA forecast three years of record low rates
Last year RBA forecast three years of record low rates RBA CASH RATE EXPECTATIONS WERE: For personal use only RBA cash rate 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Jul-2006 Jul-2009 Jul-2012 Jul-2015 Jul-2018 Jul-2021 Oct-2005 Oct-2008 Oct-2011 Oct-2014 Oct-2017 Oct-2020 Oct-2023 Jan-2005 Jan-2
Slide 26: Official RBA cash rate
For personal use only 26 Source: RBA 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 Jan-2005 8.00 May-2005 Sep-2005 Jan-2006 May-2006 OFFICIAL RBA CASH RATE Sep-2006 Jan-2007 May-2007 Sep-2007 Jan-2008 May-2008 Sep-2008 Jan-2009 May-2009 Sep-2009 Jan-2010 May-2010 Sep-2010 Jan-2011 May-2011 Sep-2011 Jan-20
Slide 27: Safe assets now losing you money big time
Safe assets now losing you money big time 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 7.3% in June 2022 Source : Plato, RBA updated to
Slide 28: Results season - Dividends
Results season - Dividends DIVIDENDS UP BUT SOME RETRACEMENT For personal use only • Over $44bn in dividends have been declared. AUG 2022 CHANGE IN DIVIDENDS PCP • Strong dividend increases: Average Median Mkt Cap Weighted Average – South32 (234%) and Iluka (108%) in resources. 19.8% – Woodside (289
Slide 29: Large Aussie income stocks
Large Aussie income stocks 7 STOCKS ACCOUNT FOR 60% OF ALL DIVIDENDS For personal use only Price Performance % of Gross Dividend Income - FY22 1.40 1.30 1.20 BHP Group 1.10 Commonwealth Bank 1.00 Fortescue Metals 0.90 National Australia Bank 0.80 Westpac 0.70 Rio Tinto 0.60 ANZ 0.50 Other ASX200 Tel
Slide 30: Reporting Season Highlight: BHP Group
Reporting Season Highlight BHP GROUP For personal use only • FY22 NPAT of US$22.4b up 64% vs FY21’s US$13.7B, above market expectations. • Record EBITDA US$40.6B – coal the standout, from US$288m to US$9.5B! • Dividend declared was US$1.75, 12.5% lower than last year’s final, but largest full year d
Slide 31: Winning by not losing - avoiding dividend traps
Winning by not losing - avoiding dividend traps MAGELLAN FINANCIAL UP TO 25% GROSS DIVIDEND YIELD For personal use only 60 30.00% 55 50 25.00% 45 Historical Yield (%) 40 20.00% Price 35 30 15.00% 25 20 10.00% 15 10 5.00% Price (LHS) Historical Gross Yield (RHS) Source: Plato, Bloomberg 31
Slide 32: Tax effective buy-backs were advantageous
Tax effective buy-backs were advantageous MCMILLAN SHAKESPEARE THE LIKELY LAST DUE TO BUDGET ANNOUNCEMENT For personal use only • Worth approximately 20% for zero tax- paying investors (e.g. many pensioners) for every share successfully tendered • But high scale-back and small • Historically buy-bac
Slide 33: Dividend outlook rising but still within normal range
For personal use only 33 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
Slide 34: Conclusion
Conclusion For personal use only Bad news: Interest rates are rising challenging asset prices – But real returns on term deposits are negative as inflation rises faster – Tax-effective buy-backs are no more Good news: Dividends are still strong after rebounding last year – Plato dividend cut model o
Slide 35: Questions
For personal use only Questions Mr. Jonathan Trollip Dr. Don Hamson 35
Slide 36: Disclaimer
Disclaimer Note: Past performance is not a reliable indicator of future performance. About this presentation For personal use only This communication has been prepared by Plato Income Maximiser Limited ABN 63 616 746 215 (PL8) and Plato Investment Management Limited AFSL 504616 ABN 77 120 730 136 (‘
Slide 37: Thank you for joining us for our AGM
For personal use only Thank you for joining us for our AGM PL8 shareholder enquiries For general information about your shareholding please contact the Share Registry Automic: T: 1300 288 664 E: hello@automicgroup.com.au For investment enquiries please contact Pinnacle T: 1300 010 311 E: invest@plat
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