Washington H. Soul Pattinson And Company Limited · ASX:SOL
Washington H. Soul Pattinson And — FY2019 Earnings Presentation
16 slides from Washington H. Soul Pattinson And's earnings presentation, Sep 19, 2019
Slide 1: Financial Results Full Year FY2019: Business overview
Financial Results Full Year FY2019 Business overview DIVERSIFIED & LONG‐TERM INVESTOR VALUE FOCUSED AND UNCORELLATED PORTFOLIO WITH BROAD MANDATE TRUSTED PARTNER Look‐through portfolio composition A$5.5 billion Diversified portfolio of uncorrelated investments across listed equities, private equit
Slide 2: Long term results and Key Highlights
Long term results INCREASING DIVIDENDS SINCE 2000 15 YEAR TSR OF 11.6% PER ANNUM (compound annual growth rate of 12.3%) (outperforming the Index by 2.6% pa) Total Ordinary Dividends Special Dividends 500% 25 12.5 400% WHSP 419% 15 15 300% 5 56 58 267% 52 54 48 50 5 44 46 200% 5 40 4 32 34 3.5 25 27
Slide 3: Portfolio overview
Portfolio overview Pre‐tax value of the portfolio as at 31 July 2019 was $5.5 billion, up 0.6% on previous year Sector breakup Communication Services Consumer Discretionary Consumer Staples Energy Financials Health Care Industrials Materials Full Year Results July 2019 5 Long‐term total shareholder
Slide 4: Active M&A to add value
Active M&A to add value Major transactions across WHSP and Group Companies Mar-18: WHSP sells its Pitt Street Building (A$95m) Oct-18: BKW acquires Jun-18: API acquires Glen-Gery in US Clearskincare Clinics Feb-08: Merger (US$110m) (A$127.4m) between SP Oct-10: New Hope’s off- Mar-15: TPG Acquisitio
Slide 5: FY2020 strategic priorities
FY2020 strategic priorities Continue to support portfolio companies in creating value through strategic M&A and capital support Continue to look for value across asset classes • private equity • private credit • retirement living • financial services • agriculture Continuation of increasing di
Slide 6: TPG Telecom Limited
TPG Telecom Limited Year Ended 31 July 2019 Associated entity 25.3% held Contribution to WHSP’s regular NPAT $95.0 million Value of WHSP’s holding $1.64 billion Dividends paid to WHSP $9.4 million Why we continue to own TPG Results for the year Valuable and extensive infrastructure network EBITD
Slide 7: TPG Telecom Limited
TPG Telecom Limited Continued migration to the NBN offset by corporate segment growth Corporate Segment Margin Growth GP % EBITDA % 70% 60% 50% 40% 30% 1H18 2H18 1H19 2H19 Full Year Results July 2019 13 TPG Telecom Limited Quality service and strong customer satisfaction Daily outages lasting over 3
Slide 8: Brickworks Limited
Brickworks Limited Year Ended 31 July 2019 Associated entity 43.8% held Contribution to WHSP’s regular NPAT $54.7 million Value of WHSP’s holding $1.10 billion Dividends paid to WHSP $36.1 million Why we continue to own Brickworks Results for the year Dividend stability Record underlying NPAT fr
Slide 9: Brickworks Limited
Brickworks Limited Joint venture asset values continue to benefit from structural trends BKW 50% share of Property Trust Assets $millions Total leased properties $1.4 billion 633 • 6 year weighted average lease expiry 538 • “Blue chip” tenants CAGR = 18% p.a. Rental return on leased assets 6%1
Slide 10: New Hope Corporation Limited
New Hope Corporation Limited Year Ended 31 July 2019 Controlled entity 50.0% held Contribution to WHSP’s regular NPAT $134.3 million Value of WHSP’s holding $1.04 billion Dividends paid to WHSP $66.5 million Why we continue to own New Hope Results for the year Low cost producer – globally competit
Slide 11: New Hope Corporation Limited
New Hope Corporation Limited New Hope has a geographically diverse customer base. New sources of demand emerging New Hope Group Coal Revenue by Jurisdiction Change in thermal coal imports (total seaborne imports), 2023 vs 2018 (Mt) Full Year Results July 2019 21 New Hope Corporation Limited Bengalla
Slide 12: Financial Services Portfolio
Financial Services Portfolio Year Ended 31 July 2019 Value of WHSP’s holdings* $353 million Contribution to WHSP’s regular NPAT $23.5 million *Market values or Directors’ valuations Dividends paid to WHSP $19.1 million As at 31 July 2019 WHSP’s Holding Results and Movements % BKI Investment Company
Slide 13: Round Oak Minerals
Round Oak Minerals Year Ended 31 July 2019 Controlled entity 100% held Operations Value of WHSP’s holding $188 million Commissioning of gold processing facility at Cloncurry Contribution to WHSP’s Regular NPAT ($54.1 million) and first gold production in December 2018 Mt Colin mine development c
Slide 14: Property Portfolio
Property Portfolio Year Ended 31 July 2019 Value of WHSP’s holdings $89 million Contribution to WHSP’s regular profit $11.0 million Sale of Head Office at 160 Pitt completed: • Proceeds of $95.0m • Gain on sale after tax of $69.0m (non‐regular) Prestons Logistic Centre Development SOLD Kingsgrov
Slide 15: Listed Investments Portfolio
Listed Investments Portfolio Year Ended 31 July 2019 WHSP Large Caps Portfolio Value of WHSP’s holdings $564 million The objective is to provide WHSP with long‐term capital Contribution to WHSP’s regular profit $23 million preservation and an attractive income stream through investment in a divers
Slide 16: Disclaimer
Disclaimer Disclaimer This document has been prepared by Washington H. Soul Pattinson and Company Limited (‘WHSP’). All information contained in this document (including this notice) Any forward looking statements included in the Information This Information does not constitute an offer, invitation,
Washington H. Soul Pattinson and Company — FY2019 Earnings Presentation on 6ix