Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — H1 FY2024 Earnings Presentation
29 slides from Plato Income Maximiser's earnings presentation, Mar 5, 2024
Slide 1: Shareholder webinar reminder and presentation on half-year results
Plato Income Maximiser Limited (Company) Level 25 Australia Square Tower 264 George Street Sydney NSW 2000 T: 1300 010 311 E: invest@plato.com.au ACN 616 746 215 5 March 2024 By Electronic Lodgement Market Announcements Office ASX Ltd 20 Bridge Street For personal use only SYDNEY NSW 2000 Dear Sir/M
Slide 2: Company Half-Year 1HFY24 Results
COMPANY HALF-YEAR 1HFY24 RESULTS PLATO INCOME MAXIMISER LIMITED ASX: PL8 For personal use only 1
Slide 3: Disclaimer
Disclaimer Note: Past performance is not a reliable indicator of future performance. 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 other advice. This commun
Slide 4: Agenda
Agenda 01 PL8 Company Update For personal use only 02 Market update 03 Questions 3
Slide 5: PL8
For personal use only 4 PL8 Company Update
Slide 6: 1HFY24 results highlights
1HFY24 results highlights CONTINUING TO DELIVER ON COMPANY OBJECTIVES For personal use only • 1HFY24 operating profit after tax of $39.6 million (-$3.8 million to 1HFY23) • Total dividends of $0.033 per share, equivalent to annualised distributed yield of 7.7%1,4 • Total portfolio return of 8.4%1, +
Slide 7: PL8 NTA performance breakdown for 1HFY24
PL8 NTA performance breakdown for 1HFY24 PRE-TAX NTA PER PL8 SHARE* For personal use only Source: Plato. *Excludes franking credits. Portfolio performance is net of management fees. 6
Slide 8: PL8 investment portfolio performance
PL8 investment portfolio performance PERFORMANCE TO 31 JANUARY 2024 AFTER FEES AND COSTS* For personal use only Since 12 Months Inception p.a.** Including Franking (28/4/2017) Portfolio 7.4% 9.7% S&P/ASX200 Tax Exempt 8.6% 9.6% Active -1.2% 0.1% *Inclusive of the net impact of GST and Reduced Input
Slide 9: PL8 delivering high income month realised yield
PL8 delivering high income 12 month realised yield* 9.0% For personal use only 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% S&P/ASX 200 PL8 CASH 4.2 5.4 FRANKING FRANKING 1.4 2.3 *to 31 January 2024, Plato, Bloomberg 8
Slide 10: PL8 portfolio outperforming the Benchmark over full investment cycle
PL8 portfolio outperforming the Benchmark over full investment cycle $450,000 Plato Aust. Shares Income Fund v S&P/ ASX200 Accumulation Series (incl. Franking Credits) $400,000 For personal use only $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Sep-11 Sep-12 Sep-13 Sep-14 Sep-15 S
Slide 11: Delivering consistent monthly income
Delivering consistent monthly income MONTHLY DIVIDENDS STEADY AT HIGHER LEVEL OF $0.0055 PER SHARE For personal use only Only Australian LIC paying monthly fully franked dividends Source: Plato. While monthly income has been consistent since October 2017, this may change in the future. The declarati
Slide 12: Share price at a premium to NTA
Share price at a premium to NTA PL8 PRICE VERSUS PRE-TAX NTA SINCE LISTING For personal use only Source: Plato, IRESS. Past performance is illustrative only and not indicative of future performance. 11
Slide 13: Growing asset base improves liquidity and lowers costs
Growing asset base improves liquidity and lowers costs PL8 ASSET BASE UP >100% SINCE IPO PL8 - Growth in assets 900.0 For personal use only 800.0 Pre-tax Net Tangible Assets ($ million) 700.0 600.0 500.0 400.0 300.0 200.0 100.0 - 5-May-17 30-Jun-21 30-Jun-22 31-Dec-23 Net Tangible Assets Source: Pla
Slide 14: Market Update
For personal use only 13 Market Update
Slide 15: Retirees are different
Retirees are different • Retirees are different to accumulators • They need to live off the income from their investments: • Investment income replaces regular salary For personal use only • They are taxed differently: • The first $1.9m in pension phase superannuation is tax free whereas accumulatio
Slide 16: Pension phase super tax rates are different
Pension phase super tax rates are different (what about that super cap?) $1.60 $1.40 For personal use only $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $- Pension/Tax Exempt (0%) Super (15%) Super (30%) Individual over $120k Top Individual (47%)* Fully Franked Dividend Long Term Capital Gain Short Term Capit
Slide 17: Interest rates near their peak
Interest rates near their peak Nominal earnings on $1m $180,000 Earnings Term Deposits Earnings Bonds For personal use only $160,000 $140,000 $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- …but what about inflation? Source : Plato, RBA updated to 31/12/2023 16
Slide 18: Safe assets finally keeping up with inflation (just)
Safe assets finally keeping up with inflation (just) Real after inflation earnings on $1m Real Earnings Term Deposits Real Earnings Bonds $120,000 For personal use only $100,000 $80,000 $60,000 $40,000 $20,000 $- -$20,000 -$40,000 -$60,000 -$80,000 Source: Plato, RBA, 31 December 2023. 17
Slide 19: Results season February 2024 - Dividends
Results season February 2024 - Dividends DIVIDENDS UP BUT SOME RETRACEMENT • Over $35bn in dividends have been declared. FEB 2024 CHANGE IN DIVIDENDS PCP • Strong dividend increases: For personal use only Average Median Mkt Cap Weighted Average – AGL Energy (225%) and Origin Energy (67%) in utilitie
Slide 20: Reporting Season Analysis: CBA
Reporting Season Analysis CBA For personal use only • Good result, 1H FY24 Cash NPAT of $5,019m, down 3% from PCP but up 3% vs 2H FY23 given increased competition for deposits. • Interim Dividend 215c vs 210c last year, up 2.4%. Equates to 5.6% annual gross yield after recent strong performance. • P
Slide 21: Reporting Season Analysis: CBA
Reporting Season Analysis CBA For personal use only Source: Plato 20 *Companies mentioned on this slide are illustrative only and not a recommendation to buy or sell any particular security
Slide 22: Reporting Season Analysis: Wesfarmers
Reporting Season Analysis WESFARMERS For personal use only • 1H FY24 NPAT of $1,425, 3% above pcp and 4% above consensus. Strong cashflow. • Interim dividend 91c vs 88c last year (3.4% increase). Equates to 4.7% annual gross yield. • Strength from department stores as consumers trade down. Lithium b
Slide 23: Reporting Season Analysis: Insurers
Reporting Season Analysis INSURERS For personal use only • 1H FY24 Cash earnings of $660m, up 14% but 4% below • Cash earnings of $1,362m, up 105% on last year. expectations. Profit from general insurance up 52%, life insurance • Final dividend 48c up 60% on last year (10% franked). Equates to down
Slide 24: Reporting Season Analysis: Miners
Reporting Season Analysis MINERS For personal use only • FY23 underlying earnings down 12% to US$11.8bn, in line with • 1H FY24 NPAT US$3.3bn, up 6% and 3% above expectations. expectations. • Dividend of $1.08c, 44% above last year (10.7% annual gross yield). • Final dividend of $3.93, up 20% on las
Slide 25: Reporting Season Analysis: Ampol
Reporting Season Analysis AMPOL For personal use only • CY23 NPAT of $740m, 1.1% above pcp and slightly above consensus. • Final dividend 120c vs 105c last year (14% increase) plus 60c special dividend. Equates to 8.0% annual gross yield excluding specials or 10.3% including special. 89% payout rati
Slide 26: Top dividend traps
TOP DIVIDEND TRAPS BE CAREFUL LOOKING AT HISTORICAL YIELD STOCK HIST. ANNUAL YIELD % DIVIDEND CUT (31 DEC 2023) For personal use only • Dividend Cuts: – Pilbara 100% 9.0% 100% – South32 92% – Magellan 37% 5.3% 92% 17.2% 37% Source: Plato *Companies mentioned on this slide are illustrative only and n
Slide 27: Dividend outlook within normal range
Dividend outlook within normal range AVERAGE % CHANCE OF DIVIDEND CUTS FOR AUSTRALIAN MARKET Div Cut Probability - Australia Dec 2001 - Feb 2024 For personal use only 50% 45% 40% 35% 30% Long term average 25% 20% 15% 10% 5% 0% 200112 200212 200312 200412 200512 200612 200712 200812 200912 201012 201
Slide 28: The income summary – Cautiously Optimistic
The income summary – Cautiously Optimistic For personal use only Caution: Interest rates rose rapidly but near their peaks Optimism: Dividends are still strong Active fund management critical in delivering income, total return & avoiding dividend traps 27
Slide 29: Thank you - Questions
For personal use only 28 THANK YOU Questions
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