Argo Investments Limited · ASX:ARG

Argo Investments — Shareholder Meeting (October 2012)

21 slides from Argo Investments's shareholder meeting presentation, Oct 22, 2012

  1. Slide 1: For personal use only

    For personal use only

  2. Slide 2: Disclaimer

    Argo Investments Limited Disclaimer For personal use only “Argo Investments Limited has prepared this presentation in good faith. However, Argo does not warrant or represent that the information is free from errors or omissions or is suitable for your intended use and no warranty (explicit or implie

  3. Slide 3: Operating Profit

    Argo Investments Limited Operating Profit For personal use only $ millions 200 180 182.3 160 172.1 167.3 163.4 140 142.8 120 100 80 60 40 20 0 Jun08 Jun09 Jun10 Jun11 Jun12

  4. Slide 4: Operating Earnings per Share

    Argo Investments Limited Operating Earnings per Share For personal use only cents 35 30 32.2 25 28.2 28.1 26.8 24.2 20 15 10 5 0 Jun08 Jun09 Jun10 Jun11 Jun12

  5. Slide 5: Net Tangible Assets per Share

    Argo Investments Limited Net Tangible Assets per Share For personal use only $ 8.00 7.00 6.00 6.11 5.78 5.00 5.50 4.00 3.00 2.00 1.00 0.00 Jun11 Jun12 Sep12

  6. Slide 6: Share Price relative to NTA

    Argo Investments Limited Share Price relative to NTA For personal use only 20% Premium 15% 10% 5% 0% -5% -10% -15% Discount -20% Sep02 Sep04 Sep06 Sep08 Sep10 Sep12

  7. Slide 7: Dividends per Share

    Argo Investments Limited Dividends per Share For personal use only cents 40 35 30 30 27 26 26 25 25 20 15 10 5 0 Jun08 Jun09 Jun10 Jun11 Jun12 Ordinary LIC capital gain

  8. Slide 8: Compound Growth to September 2012

    Argo Investments Limited Compound Growth to 30 September 2012 For personal use only % per annum 15.0 14.3 13.3 10.0 8.3 8.6 8.3 7.5 5.0 0.0 -2.8 -3.6 -5.0 1 year 5 years 10 years 15 years Argo NTA growth plus dividends All Ordinaries Accumulation Index Source: JBWere

  9. Slide 9: S&P ASX All Ordinaries Index

    Argo Investments Limited S&P ASX All Ordinaries Index For personal use only 5000 4800 4600 Index Level 4400 4200 4000 3800

  10. Slide 10: Iron Ore Price v Australian Dollar

    Argo Investments Limited Iron Ore Price v Australian Dollar For personal use only Source: Bloomberg, Platts, UBS

  11. Slide 11: The A$ is high by post-float historical standards

    Argo Investments Limited The A$ is high by „post-float‟ historical standards … For personal use only 1.10 US$ A$-US$ exchange rate since ‘the float’ 1.05 1.00 0.95 0.90 Monthly average spot rate 0.85 0.80 0.75 0.70 0.65 0.60 Rolling post-float 0.55 average 0.50 0.45 83 84 85 86 87 88 89 90 91 92 93

  12. Slide 12: Major Investment Purchases

    Argo Investments Limited Major Investment Purchases For personal use only Year to 30 June 2012 $M ANZ 12.1 Challenger 9.3 Telstra 9.2 Newcrest Mining 8.6 BHP Billiton 7.7 AGL Energy 6.0 Santos 5.1

  13. Slide 13: Investment Purchases since July 2012

    Argo Investments Limited Investment Purchases For personal use only since 1 July 2012 • Total about $20m • Larger purchases - ANZ - Westpac - Telstra - APA - UGL

  14. Slide 14: Principal Equity Investments

    Argo Investments Limited Principal Equity Investments For personal use only as at 30 September 2012 $M $M BHP Billiton 265.1 Aust. United Invest. 117.0 Westpac 232.4 Macquarie 90.2 ANZ 195.6 Origin Energy 75.7 Wesfarmers 171.0 Woodside Petroleum 56.4 Commonwealth Bank 154.9 Orica 55.7 Telstra 140.0

  15. Slide 15: Portfolio Allocation as at September 2012

    Argo Investments Limited Portfolio Allocation as at 30 September 2012 For personal use only Telecommunications Utilities Energy & I.T. 3% 5% 5% Materials 17% Other Financial 20% Industrials 7% Cash & Short-term Deposits Consumer 4% Discretionary 6% Consumer Staples Banks 9% 20% Health Care 4%

  16. Slide 16: Challenges for Business Remain

    Argo Investments Limited Challenges for Business Remain For personal use only • Weak consumer environment • Rising cost pressures • Delays and cost overruns in major projects • Impact of the high Australian dollar • Political uncertainty • Rising industry competition • Lack of productivity gains

  17. Slide 17: Industrial Earnings Trajectory – Past Years

    Argo Investments Limited Industrial Earnings Trajectory – Past 4 Years For personal use only Industrials - evolution of earnings growth forecasts (%) 18 18 16 16 14 14 12 12 10 10 8 8 6 FY10F FY11F 6 4 4 FY12F FY13F 2 2 0 0 -2 -2 Aug-09 Feb-10 Aug-10 Feb-11 Aug-11 Feb-12 Aug-12 Source: IBES Datastre

  18. Slide 18: Current ASX300 Industrials - Payout ratios

    Argo Investments Limited Current ASX300 Industrials - Payout ratios For personal use only Payout ratio (%) Payout ratio (LHS) DPS growth (RHS) yoy % 80 40 70 20 60 0 50 -20 40 -40 2013E 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012E 2014E Source: Goldman Sachs

  19. Slide 19: Defensive Stocks versus Cyclical Stocks

    Argo Investments Limited Defensive Stocks versus Cyclical Stocks For personal use only Index ASX200 price performance 115 115 110 110 105 105 100 100 95 95 Defensive industrials & banks 90 90 Cyclical industrials & resources 85 85 Jan-12 Feb-12 Mar-12 Apr-12 May-12 Jun-12 Jul-12 Aug-12 Source: IBES

  20. Slide 20: Executive Team

    Argo Investments Limited Executive Team For personal use only Jason Beddow Chief Executive Officer Chris Hall Brenton Aird Senior Investment Officer Chief Operating Officer Daniel Cuthbertson Andrew Hill Investment Analyst Chief Financial Officer Andy Forster Tim Binks Investment Analyst Company Sec

  21. Slide 21: For personal use only

    For personal use only

Argo Investments — Shareholder Meeting (October 2012) on 6ix