Washington H. Soul Pattinson And Company Limited · ASX:SOL
Washington H. Soul Pattinson And — Investor Presentation (June 2023)
24 slides from Washington H. Soul Pattinson And's investor presentation, Jun 6, 2023
Slide 1: Investor Presentation – ASX Announcement
6 June 2023 ASX Announcement Investor Presentation Diversified investment house, Washington H. Soul Pattinson and Company Limited (ASX:SOL or “WHSP”), releases a copy of the presentation – inclusive of a group portfolio update – to be delivered at the Brisbane Shareholder Briefing today, being 6 Jun
Slide 2: Washington H. Soul Pattinson Brisbane Shareholder Briefing
Washington H. Soul Pattinson Brisbane Shareholder Briefing 6 June 2023
Slide 3: Presenters
Presenters Robert Millner Todd Barlow David Grbin Brendan O’Dea Chairman CEO & Managing Director Chief Financial Officer Chief Investment Officer • Welcome • Our purpose • Financial • Portfolio update overview & overview • Our history • Performance update • Investment approach 2 ASX:SOL
Slide 4: Our purpose, objectives and approach
Our purpose BUILDING ENDURING VALUE FOR ALL OF OUR SHAREHOLDERS A unique investment in the Australian market, WHSP offers shareholders exposure to a range of investments that perform throughout the cycle and have delivered above market returns for decades Our objectives 1 2 3 GROW THE PORTFOLIO INCR
Slide 5: Group performance update
Group performance update Year-to-date performance to 30 April 2023 1 • Net Asset Value (pre-tax) of $10.6b GROW THE PORTFOLIO • Net Asset Outperformance of +1.4% vs the All Ords Accumulation Index1 2 • Continued investment in high quality, cash-generative investments to INCREASE CASH GENERATION unde
Slide 6: Continued dividend growth
Continued dividend growth • WHSP has never missed a dividend payment since 1903 • Ordinary dividends have increased from 11c in FY01 to 72c in FY22 (8.5% CAGR) underpinned by high quality, cash-generating investments Interim dividend Final dividend Special dividend FY22 Final Dividend up 19.4% FY23
Slide 7: Consistent long-term performance
Consistent long-term performance • Total return on an investment in WHSP over 20 years has been 1027% (vs 477% for the Index) Total Shareholder Return 6 months 1 year 5 year 10 year 15 year 20 year (p.a.) (p.a.) (p.a.) (p.a.) WHSP 16.2% 16.8% 12.9% 11.1% 12.4% 12.9% All Ords Accumulation Index 8.5%
Slide 8: Protecting shareholder capital
Protecting shareholder capital • Volatile markets will favour profitable assets with robust cash flows Average 3.1% Performance in 2.6% • Over the last 20 years, the All Ordinaries “Down months” Accumulation Index had a negative return in one-third of the months WHSP All Ords • WHSP’s share price ou
Slide 9: Comparative long-term total shareholder returns
Comparative long-term total shareholder returns • Comparing the 30 year return between an investment in SOL vs other asset classes SOL shares1 $415,695 13.2% p.a Australian shares2 $148,534 9.4% p.a $10k invested 30 April 1993 International shares3 $90,710 7.6% p.a Australian listed property4 $89,99
Slide 10: Financial overview
Financial overview 9 ASX:SOL
Slide 11: Financial approach
Financial approach • Statutory reporting: • Key performance indicators we focus on: Net Profit After Tax (NPAT) Net Cash Flows From Investments (NCFFI) and growth in NCFFI per share Earnings Per Share (EPS) growth Dividend growth Balance Sheet Net Asset Value and growth in NAV per share,
Slide 12: Financial results – 1H23
Financial results – 1H23 Group 1H23 1H22 Profit Regular NPAT1 $475.7m $343.7m • Group Regular NPAT excludes one-off events and better ▲38.4% vs pcp reflects underlying performance of major investments Statutory NPAT2 $453.0m $(673.6)m • Statutory NPAT growth in 1H23 was supported by a non-recurring
Slide 13: Portfolio update & overview
Portfolio update & overview 12 ASX:SOL
Slide 14: Portfolio composition (as at April)
Portfolio composition (as at 30 April) • Net Asset Value is $10.6b and has outperformed the All Ords Accumulation Index by 1.4%1 year-to-date • Transaction activity in the period to 30 April: $5.2b 49% $670.4m divestments • Continued sales across Large Caps, Emerging Companies, and Property $190.2m
Slide 15: Strategic Investments
Strategic Investments • Significant, long-term investments in uncorrelated listed companies with Board representation Portfolio value $5.2b Year-to-date return1 15.7% • Performance driven by favourable returns from Brickworks and TPG Telecom • Robust cash generation across all major investments • St
Slide 16: Large Caps
Large Caps • Actively managed Australian equities delivering capital growth, dividends and portfolio liquidity Consumer Staples 16% Diversified Financials 14% Portfolio value $2.8b Materials 14% Healthcare 12% Banks 8% Year-to-date return1 7.1% Insurance 6% Commercial Services 5% • Continued to redu
Slide 17: Large Caps – top investments
Large Caps • Top 30 investments as at 30 April 2023 # Stock % of Portfolio # Stock % of Portfolio 1 Macquarie Group Limited 8.9% 16 Amcor plc 2.4% 2 BHP Group Limited 8.5% 17 Ramsay Health Care Limited 2.1% 3 CSL Limited 6.9% 18 AGL Energy Limited 2.0% 4 Wesfarmers Limited 6.7% 19 Suncorp Group Limi
Slide 18: Private Equity
Private Equity • Investments in unlisted companies with attractive growth profiles and strategic M&A opportunities Portfolio value $839.6m Agriculture • Continuing to add scale to wholly owned subsidiaries, recently including: • Aquatic Achievers recently acquired Kirby Swim, a WA-based swimming sch
Slide 19: Structured Yield
Structured Yield • Actively managed structured credit investments to achieve strong risk adjusted returns Loan book is widely spread, mostly senior secured, Portfolio value $677.7m and diverse by industry Undrawn/committed $244.7m Unsecured (Bonds) Consumer Discretionary Weighted average IRR 15.5% p
Slide 20: Emerging Companies
Emerging Companies • Exposure to fast growing companies often benefiting from structural changes and global trends Industrials 21% Materials 19% Portfolio value $609.7m Consumer Discretionary 17% Financials 13% Information Technology 12% Year-to-date return1 8.5% Health Care 7% Energy 6% • Proactive
Slide 21: Property Portfolio
Property Portfolio • Actively managed direct property investments & equity accounted joint ventures Portfolio value $113.0m • Concentrated in Sydney and positioned towards infrastructure development • Industrial property supply is tight and with the market pricing in further interest rate increases,
Slide 22: Net Working Capital
Net Working Capital • Managing portfolio liquidity via cash, interest-bearing liabilities and other assets and liabilities +$165.1m YTD $500.0 Portfolio value $439.5m $400.0 $300.0 • Deliberately conservative positioning awaiting investment opportunities outside public markets $200.0 • Expect cash b
Slide 23: Outlook
Outlook • Unconstrained mandate to invest where there is attractive growth, risk/return • Active pipeline of investments under consideration • Opportunities for value investors to take advantage of increasing price for risk in the current market • Confidence in our defensive portfolio settings, whic
Slide 24: Disclaimer
Disclaimer This document has been prepared by Washington H. Soul Pattinson and Company Limited (‘WHSP’). Except as required by law, no representation or warranty, express or No responsibility is accepted by WHSP or any of their respective implied, is made as to the fairness, accuracy, completeness o
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