Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — Corporate Update (November 2022)
26 slides from Plato Income Maximiser's corporate update, Nov 30, 2022
Slide 1: Shareholder webinar and presentation on Share Purchase Plan
Plato Income Maximiser Limited (Company) Level 35, 60 Margaret Street Sydney NSW 2000 T: 1300 010 311 E: invest@plato.com.au ABN 63 616 746 215 For personal use only 30 November 2022 By Electronic Lodgement Market Announcements Office ASX Ltd 20 Bridge Street SYDNEY NSW 2000 Dear Sir/Madam Sharehold
Slide 2: Share Purchase Plan Webinar
SHARE PURCHASE PLAN WEBINAR PLATO INCOME MAXIMISER LIMITED ASX: PL8 For personal use only 30 November 2022 1
Slide 3: Agenda
Agenda For personal use only 01 SPP Overview 02 Investment Update 03 Questions 2
Slide 4: Share Purchase Plan Overview
For personal use only Share Purchase Plan Overview 3
Slide 5: PL8 Share Purchase Plan
PL8 Share Purchase Plan Share Purchase Plan (SPP) For personal use only • The SPP is an opportunity for Eligible Shareholders (PL8 shareholders on the record date of 18 November 2022) to purchase up to $30,000 worth of new fully paid ordinary shares (New Shares) without incurring brokerage (minimum
Slide 6: PL8 Share Purchase Plan Rationale
PL8 Share Purchase Plan Rationale For personal use only • Enable existing shareholders to invest additional capital at closer to NTA, a meaningful discount to the prevailing share price prior to the announcement of the SPP • Higher liquidity and lower management expense ratio • Including the frankin
Slide 7: Share price has traded at a premium to NTA
Share price has traded at a premium to NTA PL8 NTA PREMIUM RESTORED AFTER TEMPORARY FALL DURING NOVEMBER 2021 PLACEMENT AND SPP For personal use only $1.35 30.00% $1.30 25.00% $1.25 Share Price / Pre-tax NTA 20.00% Premium / (Discount) % $1.20 $1.15 15.00% $1.10 10.00% $1.05 5.00% $1.00 $0.95 0.00%
Slide 8: Dividends
Dividends NO IMPACT ON THE EXPECTED MONTHLY FULLY FRANKED DIVIDENDS For personal use only MONTHLY DIVIDENDS 0.6 0.5 0.4 Cents per share 0.3 0.2 0.1 0 Monthly Dividends at highest level since IPO 1 The chart refers only to the monthly PL8 dividends. PL8 has paid two special dividends that are not inc
Slide 9: PL8 Share Purchase Plan: How to apply
PL8 Share Purchase Plan How to apply For personal use only • The Booklet and your personalised Application Form will be sent to you on 23 November 2022 either by email or post (depending on your shareholder communication preference set up with the PL8 share registry Automic) • You can also access yo
Slide 10: Investment Update
For personal use only 9 Investment Update
Slide 11: PL8 delivering high income month realised yield
PL8 delivering high income 12 month realised yield* For personal use only 9.0% 8.0% 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% S&P/ASX 200 PL8 CASH 4.4 5.7 FRANKING 1.6 2.4 *to 31 October 2022, after fees Source: Plato, Bloomberg Past performance is not a reliable indicator of future performance 10
Slide 12: Chart of Plato Income Performance – to October 2022
Chart of Plato Income Performance – to 31 October 2022 $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 Sep-16 Sep-17 Sep-18 Sep-19 Sep-20 Sep-21 Sep-22 S&P/ASX 200 Franking Credit Adjusted Daily Total Return Index (Ta
Slide 13: Significant uncertainty: It was the worst of times
Significant uncertainty IT WAS THE WORST OF TIMES For personal use only • Rapidly rising inflation – highest in 30 years ex GST introduction • Now rapidly rising interest rates - 2.75% rise in 6 mths • War in Ukraine • Supply chain issues due to COVID • House prices falling • Bonds and equities sell
Slide 14: Significant uncertainty: It was the best of times
Significant uncertainty IT WAS THE BEST OF TIMES For personal use only • Economy is at full employment • Official overnight cash rate is still close to “normal” lows • Corporate balance sheets are strong, debt levels low • Some Australian companies well placed to benefit from war in Ukraine • House
Slide 15: Last year RBA forecast three years of record low rates
Last year RBA forecast three years of record low rates RBA CASH RATE EXPECTATIONS WERE: For personal use only RBA cash rate 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Jan-2020 Jan-2005 Jan-2008 Jan-2011 Jan-2014 Jan-2017 Jan-2023 Oct-2005 Jul-2006 Apr-2007 Oct-2008 Jul-2009 Apr-2010 Oct-2011 Jul-2
Slide 16: So much for 0.10% until 2023 – the cycle is back!
For personal use only 15 Source: RBA 0.00 1.00 2.00 3.00 4.00 5.00 6.00 7.00 Jan-2005 8.00 May-2005 Sep-2005 Jan-2006 May-2006 OFFICIAL RBA CASH RATE Sep-2006 Jan-2007 May-2007 Sep-2007 Jan-2008 May-2008 Sep-2008 Jan-2009 May-2009 Sep-2009 Jan-2010 May-2010 Sep-2010 Jan-2011 May-2011 Sep-2011 Jan-20
Slide 17: Safe assets now losing you money big time
Safe assets now losing you money big time REAL AFTER INFLATION EARNINGS ON $1M For personal use only Real Earnings Term Deposits Real Earnings Bonds $120,000 $100,000 $80,000 $60,000 $40,000 $20,000 $- -$20,000 -$40,000 -$60,000 -$80,000 Inflation hit 7.3% in Sept 2022 Source : Plato, RBA updated to
Slide 18: Results season - Dividends
Results season - Dividends DIVIDENDS UP BUT SOME RETRACEMENT For personal use only • Over $44bn in dividends have been declared. AUG 2022 CHANGE IN DIVIDENDS PCP • Strong dividend increases: Average Median Mkt Cap Weighted Average – South32 (234%) and Iluka (108%) in resources. 19.8% – Woodside (289
Slide 19: Large Aussie income stocks
Large Aussie income stocks 7 STOCKS ACCOUNT FOR 60% OF ALL DIVIDENDS For personal use only Price Performance % of Gross Dividend Income - FY22 1.40 1.30 1.20 BHP Group 1.10 Commonwealth Bank 1.00 Fortescue Metals 0.90 National Australia Bank 0.80 Westpac 0.70 Rio Tinto 0.60 ANZ 0.50 Other ASX200 Tel
Slide 20: Reporting Season Highlight: BHP Group
Reporting Season Highlight BHP GROUP For personal use only • FY22 NPAT of US$22.4b up 64% vs FY21’s US$13.7B, above market expectations. • Record EBITDA US$40.6B – coal the standout, from US$288m to US$9.5B! • Dividend declared was US$1.75, 12.5% lower than last year’s final, but largest full year d
Slide 21: Winning by not losing - avoiding dividend traps
Winning by not losing - avoiding dividend traps MAGELLAN FINANCIAL UP TO 25% GROSS DIVIDEND YIELD For personal use only 60 30.00% 55 50 25.00% 45 Historical Yield (%) 40 20.00% Price 35 30 15.00% 25 20 10.00% 15 10 5.00% Price (LHS) Historical Gross Yield (RHS) Source: Plato, Bloomberg Illustrative
Slide 22: Tax effective buy-backs were advantageous
Tax effective buy-backs were advantageous MCMILLAN SHAKESPEARE THE LIKELY LAST DUE TO BUDGET ANNOUNCEMENT For personal use only • Worth approximately 20% for zero tax- paying investors (e.g. many pensioners) for every share successfully tendered • But high scale-back and small • Historically buy-bac
Slide 23: Dividend outlook rising but still within normal range
For personal use only 22 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% 200112 Source: Plato, based on MSCI World IMI (Australian portion) 200205 200210 200303 200308 200401 200406 200411 200504 200509 200602 200607 200612 200705 200710 200803 200808 200901 200906 200911 201004 AVERAGE % CHANCE OF DIVIDE
Slide 24: Conclusion
Conclusion For personal use only Bad news: Interest rates are rising challenging asset prices – But real returns on term deposits are negative as inflation rises faster – Tax-effective buy-backs are no more Good news: Dividends are still strong after rebounding last year – Plato dividend cut model o
Slide 25: Questions
For personal use only 24 Questions
Slide 26: Disclaimer
Disclaimer Note: Past performance is not a reliable indicator of future performance. About this presentation For personal use only This communication has been prepared by Plato Income Maximiser Limited ABN 63 616 746 215 (PL8) and Plato Investment Management Limited AFSL 504616 ABN 77 120 730 136 (‘
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