Whitefield Industrials Limited · ASX:WHF
Whitefield Industrials — Whitefield — Shareholder Meeting (July 2013)
18 slides from Whitefield Industrials's shareholder meeting presentation, Jul 31, 2013
Slide 1: AGM Whitefield Limited July 2013
For personal use only AGM WHITEFIELD LIMITED JULY 2013 0
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only The commentary within this presentation is general investment information only and is limited in scope. It should not be considered to provide a full outline of all information an investor should consider prior to making an investment. The presentation doe
Slide 3: An Investment Provides
WHITEFIELD AN INVESTMENT PROVIDES: For personal use only Exposure to a diversified Whitefield holds a diversified portfolio of listed Australian shares and equities. The portfolio portfolio of listed contains around 60 holdings, predominantly top 100 stocks. Whitefield's investment universe Australi
Slide 4: Investing for the Long Term Has Created Value
WHITEFIELD INVESTING FOR THE LONG TERM HAS For personal use only CREATED VALUE 90 YEARS OF INVESTMENT Whitefield has produced returns for shareholders since its foundation and listing in 1923. An investment of $1,000 in Whitefield in 1970 would at 31 March 1 2013 be worth $125,988. 1 [After the paym
Slide 5: Core Values and Strategy
WHITEFIELD CORE VALUES AND STRATEGY For personal use only A portfolio that aims to deliver Whitefield seeks to hold investments which are capable of providing a robust long term earnings growth rate of investment return through the generation of earnings and earnings growth over multiple future year
Slide 6: Investment Process
WHITEFIELD INVESTMENT PROCESS For personal use only MONITOR, INVESTIGATE & MODEL & ANALYSE RESEARCH Model, forecast and analyse Economic, Industry, Company & earnings, risks and sensitivities Divisional Data Code Name Market Whitefield Value % NWSLV News Corporation 5,624,966 2.42% SEV Seven Network
Slide 7: An Efficient Structure
WHITEFIELD AN EFFICIENT STRUCTURE For personal use only INVESTMENT RETURNS AND COSTS: WHAT MAKES A DIFFERENCE Small differences in investment return or cost have a limited impact on outcomes even over many consecutive years. Consistently large differences in cost or return do have a material impact
Slide 8: Recent Outcomes: 2013 Investment Return
RECENT OUTCOMES 2013 INVESTMENT RETURN For personal use only Whitefield’s portfolio return (excluding cash) of 32.42% for 2013 was similar to the return of the ASX200 Industrials Accumulation at 32.65% and materially ahead of the ASX200 Accumulation at 19.98%. Best performing holdings in Whitefield’
Slide 9: Recent Outcomes: Investment Returns
RECENT OUTCOMES INVESTMENT RETURNS For personal use only The Whitefield portfolio, with an emphasis on the INVESTMENT RETURNS BY YEAR value of future earnings 60% and earnings growth, has shown better performance 40% relative to its benchmark the ASX200 Industrials 20% over periods when the 0% earni
Slide 10: Recent Outcomes: Earnings & Earnings Growth
RECENT OUTCOMES EARNINGS & EARNINGS GROWTH For personal use only 2013 Underlying Operating Profit after Tax per Ordinary Share (after deducting CRPS dividends) was 1.1 cent lower than the prior year, while Total Comprehensive Income after Tax per Ordinary Share was 72.5 cents higher. Strongest divid
Slide 11: Recent Outcomes: Dividends
RECENT OUTCOMES DIVIDENDS For personal use only Dividends per ordinary share remained at 17 cps (8.5 cps per half year). Whitefield has maintained its dividend at pre-crisis levels to provide consistency of income to shareholders. Whitefield expects to maintain the ordinary share dividend at this ra
Slide 12: Consumer Conditions: Roles Reversed in 2-Speed Economy
CONSUMER CONDITIONS: ROLES REVERSED IN 2-SPEED ECONOMY For personal use only HOUSEHOLD SECTOR: MAJOR DRIVERS OF CONSUMER SPENDING • Low interest rates and improving consumer EMPLOYMENT: Unemployment is likely to continue to rise HOUSE PRICE IMPACT: Rising mildly overall, and strongly in some areas w
Slide 13: Business Conditions: Sectorally Divergent
BUSINESS CONDITIONS: SECTORALLY DIVERGENT: MINING SLOWING, FINANCE AND OTHER EXPORT IMPROVING For personal use only • The primary negative is the fall in capital expenditure as the mining boom subsides • Against this financial activity, construction and retailing have shown improvements • The AUD, w
Slide 14: International Conditions: Global Growth Has Flattened
INTERNATIONAL CONDITIONS: GLOBAL GROWTH HAS UNDENIABLY FLATTENED, HOWEVER LEAD INDICATORS ARE IMPROVING IN USA AND EUROPE For personal use only GLOBAL CONDITIONS: • US activity is likely Has eased but expected to improve with US Continuing to improve, notwithstanding to show a pick up US PMI energy
Slide 15: Risks and Opportunities
RISKS AND OPPORTUNITIES For personal use only CURRENT RISKS ARE LARGELY CONTROLLABLE It is within the power of governments to support economic growth and eliminate some risks over 2014 • We contend that improving US and European conditions and some level of Chinese policy support are the more likely
Slide 16: Portfolio: Top Holdings
PORTFOLIO For personal use only TOP 20 HOLDINGS Largest 20 Investments at 30 June 2013 $ 1 Commonwealth Bank of Australia Ltd 35,274,536 10.90% 2 Westpac Banking Corporation Ltd 28,606,824 8.84% 3 Australia & New Zealand Banking Group Ltd 25,036,852 7.74% 4 National Aust Bank Ltd 22,209,514 6.86% 5
Slide 17: Price and NTA
PRICE AND NTA For personal use only WHITEFIELD ASSET BACKING (30 JUN 13) $4.00 Whitefield NTA (JUN) $3.50 Earnings and growth being Low tax Net Assets Invested [Pre- outgoings $3.00 generated on expected over deferred tax asset backing] additional next few years $2.50 assets relative as Company $3.7
Slide 18: Conclusion
CONCLUSION For personal use only • We see the Australian economy experiencing sectorally divergent outcomes across 2013/14. • The financial sector and those benefiting from a lower Australian dollar, including manufacturers and companies with international operations are likely to show improvement.