Washington H. Soul Pattinson And Company Limited · ASX:SOL
Washington H. Soul Pattinson And — FY2016 Earnings Presentation
27 slides from Washington H. Soul Pattinson And's earnings presentation, Sep 22, 2016
Slide 1: Financial Year 2016
Financial Year 2016 2 \ QRPORATED Washington H. Soul Pattinson and Company Limited ABN 49 000 002 728 ASX Code: SOL
Slide 2: Business Overview
Business Overview For personal use only DIVERSIFIED LONG TERM CONSERVATIVE PORTFOLIO FOCUSED AND VALUE FOCUSED OVER THE LAST 15 YEARS WHSP HAS CONTINUALLY DELIVERED A TSR OF INCREASED DIVIDENDS 12.6% PER ANNUM (growing at a compound (outperforming the All Ords annual growth rate of 10.6% pa) Accumul
Slide 3: Key Highlights Year Ended 31 July 2016
Key Highlights Year Ended 31 July 2016 For personal use only NET PROFIT AFTER TAX REGULAR PROFIT AFTER TAX PRE-TAX VALUE OF PORTFOLIO $149.4m $177.2m $6.03b 79.3% ▲ 9.1% ▲ 9.6% ▲ TOTAL DIVIDENDS (fully franked) LAST 12 MONTH TSR TOTAL SHAREHOLDERS 52cps 31.4% 14,836 4.0% ▲ outperformance 27.4% 25.7%
Slide 4: Group Result (Consolidated)
Group Result (Consolidated) Year Ended 31 July 2016 For personal use only Total Profit After Tax: $149.4m up 79.3% Regular Profit After Tax* $177.2m up 9.1%** TPG up 38.7% Significantly higher Brickworks up 33.5% contributions by: API up 26.4% Offset by: New Hope down 90.3% Net loss from non
Slide 5: Portfolio Performance
Portfolio Performance As at 31 July 2016 WHSP’s Value of 12 month movement Tax payable if For personal use only Holding Holding % $m $m % disposed of on 31 July 2016 Major Strategic Investments - listed (at market value) $1.27 billion TPG Telecom 25.2% 2,738 709) 34.9%) Brickworks 44.1% 987 9) 0.9%)
Slide 6: WHSP Total Shareholder Returns
WHSP Total Shareholder Returns as at 31 July 2016 For personal use only 1 3 5 10 15 Annualised Returns Year Years Years Years Years WHSP 31.4% 12.5% 9.6% 12.3% 12.6% All Ord. Accum. Index 4.0% 8.5% 9.4% 5.7% 8.1% Out Performance by WHSP 27.4% 4.0% 0.2% 6.6% 4.5% 3 6
Slide 7: WHSP Total Shareholder Returns
WHSP Total Shareholder Returns 15 years to 31 July 2016 For personal use only 15 years to 31 July 2016 Includes the re-investment of dividends 3 7
Slide 8: WHSP Total Shareholder Returns
WHSP Total Shareholder Returns 40 years to 31 July 2016 For personal use only $500,000 $1,000 invested in 1976 worth $453,801 in 2016 $400,000 Compound annual return of 16.6% for 40 years $300,000 $200,000 $100,000 $- 1976 1981 1986 1991 1996 2001 2006 2011 2016 Includes the re-investment of div
Slide 9: Dividend History
Dividend History Final Dividend: 31 cents per share fully franked, up 3.3% For personal use only Total Dividends for the year: 52 cents fully franked, up 4.0% 90.6% of net regular cash inflows from operations paid as dividends in FY16 Dividends paid prior to June 2002 are adjusted for 10:1 Share Spl
Slide 10: TPG Telecom Limited
TPG Telecom Limited Year Ended 31 July 2016 For personal use only Percentage ownership 25.2% EBITDA $849.4m, up 75% Value of shareholding $2,738m Profit After Tax $379.6m, up 69% Contribution to WHSP profit $97.5m EPS increased by 61% to 45.3 cents per share Dividends paid to WHSP $27.7m Und
Slide 11: TPG Telecom Limited: Historical growth track record
TPG Telecom Limited Historical growth track record For personal use only In the above charts: FY16 EBITDA is the underlying EBITDA. For all other periods EBITDA is as reported. FY16 NPAT is the underlying NPAT. For all other periods NPAT is as reported except adjusted to exclude the impact of acquir
Slide 12: TPG Telecom Limited: Composition of EBITDA
TPG Telecom Limited Composition of EBITDA For personal use only 12
Slide 13: TPG Telecom Limited: Subscribers
TPG Telecom Limited Subscribers For personal use only 1.87m broadband subscribers 475k mobile subscribers 13
Slide 14: Brickworks Limited
Brickworks Limited Year Ended 31 July 2016 For personal use only Percentage ownership 44.1% Record underlying NPAT $147.1m, up 22.3% Value of shareholding $987m Profit After Tax $78.2m (2015 $78.1m) Contribution to WHSP profit $9.6m* Building Products: Contribution to WHSP regular profit $38.8
Slide 15: Brickworks Limited: Financial snapshot
Brickworks Limited Financial snapshot For personal use only 15
Slide 16: Australian Housing Construction Activity
Brickworks Limited Australian Housing Construction Activity For personal use only $billion per quarter, chain volume 16
Slide 17: New Hope Corporation
New Hope Corporation Year Ended 31 July 2016 For personal use only Percentage ownership 59.6% Profit After Tax before non-regular items was $5.0m, down 90.3% Value of shareholding $793m Net loss after tax $53.7m Contribution to WHSP result ($29.2m) EBITDA of $81.3m during difficult coal Contri
Slide 18: New Hope Corporation: Operations
New Hope Corporation Operations For personal use only Record production in FY16 of 6.6 million tonnes – up 15% on FY15 Targeting 8.9 million tonnes in FY17 Focus on sustainable operating cost reduction Further cost reductions expected from QCA decision on rail access charge Bridgeport cont
Slide 19: Newcastle Thermal Coal Price FOB
For personal use only 19 USD per tonne $40 $60 $80 $100 $120 $140 $160 Jan 11 Mar 11 May 11 Jul 11 Sep 11 Nov 11 Bengalla acquisition Jan 12 Mar 12 May 12 Jul 12 Sep 12 Nov 12 New Hope Corporation Jan 13 Mar 13 May 13 Jul 13 Sep 13 Nov 13 Jan 14 Mar 14 May 14 Jul 14 Newcastle Thermal Coal Price FOB
Slide 20: New Hope Corporation: Coal outlook
New Hope Corporation Coal outlook For personal use only Asia – Incremental Coal-Fired Capacity (MW) Coal exports from key countries (Mt) Source: HDR Source: International Energy Agency 20
Slide 21: Australian Pharmaceutical Industries
Australian Pharmaceutical Industries For personal use only Half Year Ended 28 February 2016 Percentage ownership 24.6% Total revenue $1.8 billion, up 4.4% on Value of shareholding $231m previous corresponding period Contribution to WHSP profit * $11.0m EBIT of $44.6m, up 15.6% Dividends paid to
Slide 22: BKI Investment Company
BKI Investment Company Year Ended 30 June 2016 For personal use only Percentage ownership 10.3% Net operating result before special investment revenue $41.2m, up 0.7% Value of shareholding $101m TSR has exceeded ASX 300 Index by: Contribution to WHSP profit $4.5m • 3.5%pa over 5 years Dividends
Slide 23: Ruralco Holdings
Ruralco Holdings For personal use only Half Year Ended 31 March 2016 Percentage ownership 20.1% Value of shareholding $53m Revenue $803.7m, up 8.2% on previous corresponding period Contribution to WHSP profit * $2.2m NPAT $10.8m, up 3.2% Dividends paid to WHSP** $2.4m Record result • growth in
Slide 24: Apex Healthcare Berhad
Apex Healthcare Berhad For personal use only Half Year Ended 30 June 2016 Percentage ownership 30.3% Value of shareholding $45m Revenue $98.1m,up 6.4% on previous corresponding period Contribution to WHSP profit * $3.4m NPAT $6.5m, up 23.7% Dividends paid to WHSP $1.3m Interim dividend of 1.8
Slide 25: Listed Equity Portfolio
WHSP Listed Equity Portfolio (excluding Strategic Listed Investments) For personal use only Market value of the portfolio was $669m (11.1% of NAV) Net investment of $31.3m for FY16 Previously unlisted investments carried at $39.8m were listed during FY16 Profit on disposals totalled $24.1m
Slide 26: Property Portfolio
WHSP Property Portfolio For personal use only Total equity value of WHSP’s property portfolio is $176m (2.9% of portfolio) Acquisition of two properties in FY16 at Pennant Hills for $46.7m (net of borrowings) Construction of two bus depots in Victoria (completion in FY17) Expecting rezoning
Slide 27: A Diversified Investment House
For personal use only A Diversified Investment House 27
Washington H. Soul Pattinson and Company — FY2016 Earnings Presentation on 6ix