AMCIL Limited · ASX:AMH
AMCIL — Shareholder Meeting (October 2016)
25 slides from AMCIL's shareholder meeting presentation, Oct 12, 2016
Slide 1: AMCIL Limited 2016 Annual General Meeting Presentation
12 October 2016 For personal use only The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement AMCIL Limited 2016 Annual General Meeting Presentation Dear Sir / Madam Please find attached a presentation that wil
Slide 2: Annual General Meeting 2016
ANNUAL GENERAL MEETING 2016 For personal use only
Slide 3: Disclaimer
DISCLAIMER AMCIL Limited and Australian Investment Company Services Limited (AFSL: 303209) and each of For personal use only their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good faith. However, no warranty (expre
Slide 4: Results and Shareholder Returns
For personal use only RESULTS AND SHAREHOLDER RETURNS ANNUAL GENERAL MEETING 2016
Slide 5: AMCIL's Approach
AMCIL’S APPROACH For personal use only Focused portfolio covering large and small companies. Aim is to provide: attractive returns through strong capital growth over the medium to long term; and the generation of fully franked income. Our size means small companies can have an equally important
Slide 6: Financial Year Summary – To June 2016
FINANCIAL YEAR SUMMARY – TO 30 JUNE 2016 For personal use only ANNUAL GENERAL MEETING 2016
Slide 7: Dividend reflects policy of paying out all available franking credits
DIVIDEND REFLECTS THE POLICY OF PAYING OUT ALL AVAILABLE FRANKING CREDITS EACH YEAR For personal use only ANNUAL GENERAL MEETING 2016
Slide 8: Share price is trading at a premium to net asset backing
SHARE PRICE IS TRADING AT A PREMIUM TO NET ASSET BACKING For personal use only ANNUAL GENERAL MEETING 2016
Slide 9: Share price return including dividends and benefit of franking credits
SHARE PRICE RETURN INCLUDING DIVIDENDS AND BENEFIT OF FRANKING CREDITS For personal use only *Based on net operating result * Assumes the reinvestment of dividends. This chart calculates the benefit of franking credits at the time dividends are paid for both AMCIL and the index. In practice there is
Slide 10: The Market and Portfolio Returns
For personal use only THE MARKET AND PORTFOLIO RETURNS ANNUAL GENERAL MEETING 2016
Slide 11: Small and mid cap companies significantly outperformed the 50 leaders
OVER LAST FINANCIAL YEAR SMALL AND MID CAP COMPANIES SIGNIFICANTLY OUTPERFORMED THE 50 LEADERS For personal use only ANNUAL GENERAL MEETING 2016
Slide 12: This has assisted AMCIL's performance given portfolio positioning
THIS HAS ASSISTED AMCIL’S PERFORMANCE GIVEN THE POSITIONING OF THE PORTFOLIO For personal use only ANNUAL GENERAL MEETING 2016
Slide 13: Portfolio performance including benefit of franking credits
PORTFOLIO PERFORMANCE INCLUDING BENEFIT OF FRANKING CREDITS* – TO 30 SEPTEMBER 2016 For personal use only After tax and expenses. Ignores benefits LIC tax credits. *Assumes an investor can take full advantage of the franking credits. ANNUAL GENERAL MEETING 2016
Slide 14: Some key positive contributors to performance
SOME KEY POSITIVE CONTRIBUTORS TO PERFORMANCE OVER THE 12 MONTHS TO 30 SEPTEMBER 2016 For personal use only taken over ANNUAL GENERAL MEETING 2016
Slide 15: Top investments as at September 2016
TOP 20 INVESTMENTS AS AT 30 SEPTEMBER 2016 For personal use only Rank Company % of Portfolio 1 Brambles 3.7% 2 Lifestyle Communities 3.7% 3 * Mayne Pharma Group 3.6% Based on net operating result 4 CSL 3.6% 5 Commonwealth Bank of Australia* 3.6% 6 Treasury Wine Estates 3.3% 7 Mainfreight 3.1% 8 Qube
Slide 16: Top investments as at September 2016 continued
TOP 20 INVESTMENTS AS AT 30 SEPTEMBER 2016 continued Rank Company % of Portfolio For personal use only 11 Transurban Group 2.4% 12 Oil Search* 2.4% 13 TPG Telecom 2.3% *Based on net operating result 14 AMA Group 2.2% 15 Healthscope 2.2% 16 Wellcom Group 2.1% 17 QBE Insurance Group 2.1% 18 Ardent Lei
Slide 17: Major differences from the ASX index – September 2016
MAJOR DIFFERENCES FROM THE ASX 200 INDEX – 30 SEPTEMBER 2016 For personal use only ANNUAL GENERAL MEETING 2016
Slide 18: Alignment of interests is a feature of our investment approach
ALIGNMENT OF INTERESTS IS A FEATURE OF OUR INVESTMENT APPROACH For personal use only Profile of AMCIL Portfolio* *excludes cash. ANNUAL GENERAL MEETING 2016
Slide 19: Examples of companies where we are investing alongside business owners
EXAMPLES OF COMPANIES WHERE WE ARE INVESTING ALONGSIDE THE BUSINESS OWNERS For personal use only ANNUAL GENERAL MEETING 2016
Slide 20: Recent additions
RECENT ADDITIONS For personal use only new holding new holding new holding ANNUAL GENERAL MEETING 2016
Slide 21: Recent sales
RECENT SALES For personal use only • CSG • Telstra • Pacific Brands (takeover) • Adairs • Japara Healthcare (partial sale) • Westpac ANNUAL GENERAL MEETING 2016
Slide 22: Large number of new companies being listed (IPOs)
A FEATURE OF THE MARKET HAS BEEN THE LARGE NUMBER OF NEW COMPANIES BEING LISTED (IPO’S) For personal use only Investment team has met with over 150 IPO’s in the last 5 years. Of these: • participated in 16; • purchased another 7 soon after their listing; and • still hold 13 of these today. ANNUAL GE
Slide 23: In assessing these IPOs we believe our process has worked well
IN ASSESSING THESE IPO’S WE BELIEVE OUR PROCESS HAS WORKED WELL Companies where we did not participate For personal use only Companies in the portfolio or buy subsequently ANNUAL GENERAL MEETING 2016
Slide 24: What is on our mind
WHAT IS ON OUR MIND For personal use only • Growth prospects for many large companies remain subdued. • Small and Mid cap growth stocks have risen strongly and valuations in many cases looked stretched. • Interest rate settings are likely to stay low and underpin the market. • AMCIL will continue to
Slide 25: For personal use only
For personal use only