Whitefield Industrials Limited · ASX:WHF
Whitefield Industrials — Whitefield — Investor Presentation (July 2017)
21 slides from Whitefield Industrials's investor presentation, Jul 18, 2017
Slide 1: Update Whitefield Limited July 2017
For personal use only UPDATE WHITEFIELD LIMITED JULY 2017 0
Slide 2: Important Information
IMPORTANT INFORMATION For personal use only General, Limited Commentary: This presentation contains information about Whitefield and the markets in which it operates. The presentation is limited in scope and accordingly may not contain all the information necessary for an investor to make an investm
Slide 3: Whitefield: Building Shareholder Wealth Through Compounding of Reliable Outcomes
WHITEFIELD: BUILDING SHAREHOLDER WEALTH THROUGH THE COMPOUNDING OF RELIABLE OUTCOMES For personal use only Holders of Whitefield’s Ordinary Shares have received regular dividends and growth in the capital value of their investment over many Founded in 1923, Whitefield has decades. An investment of
Slide 4: Whitefield: Building Shareholder Wealth Through Compounding of Reliable Outcomes
WHITEFIELD: BUILDING SHAREHOLDER WEALTH THROUGH THE COMPOUNDING OF RELIABLE OUTCOMES For personal use only Whitefield’s Board contains a majority of independent directors and explicitly Whitefield’s operating structure focuses on prudential control and review of the company’s operations. seeks to
Slide 5: Whitefield: Where We Invest
WHITEFIELD: WHERE WE INVEST AN EXPOSURE TO THE AUSTRALIAN ECONOMY THROUGH ASX LISTED INDUSTRIAL SHARES For personal use only Australia: a higher growth, high affluence economy Australia remains an attractive living destination relative to many other countries as Australia is the result of climate,
Slide 6: Whitefield's Investment Strategy
WHITEFIELD’S INVESTMENT STRATEGY A SYSTEMATIC PROCESS DESIGNED TO DELIVER STRENGTH OF RETURN WITH RELATIVELY LOW RISK For personal use only Whitefield seeks to own a portfolio of businesses capable of maintaining and expanding their earnings over an extended period, where that positive outlook is ei
Slide 7: 2017 Outcomes: Earnings & Asset Backing
2017 OUTCOMES EARNINGS & ASSET BACKING For personal use only Earnings per share amounted to 16.9 cents in 2017. EPS grew to 16.9 cents, up from 16.6 cps. EPS: Distribution maintained or grown across approximately 80% of holdings Up 1.8% Highest growth in distributions from Crown, APA Group, Ar
Slide 8: 2017 Outcomes: Earnings & Asset Backing
2017 OUTCOMES EARNINGS & ASSET BACKING For personal use only A long term perspective 1970 - Present Underlying earnings have underpinned the consequent growth in asset backing over time 7
Slide 9: An Efficient Structure: Cost / Return / Service Balance
AN EFFICIENT STRUCTURE COST / RETURN / SERVICE BALANCE For personal use only WHITEFIELD AIMS TO OFFER AN EFFICIENT BALANCE BETWEEN COST, RETURN AND SERVICE Whitefield’s Operating Expense ratio (OER) was 0.37% in 2017. Efficient At this level it continues to provide retail investors with one of t
Slide 10: 2017 Outcomes: Dividends
2017 OUTCOMES DIVIDENDS For personal use only WHF declared / paid fully franked dividends of 17.0 cents per ordinary share for 2017. Ordinary Having maintained its ordinary dividend at pre-Global Financial Crisis levels for some years, WHF’s EPS Dividends & (Earnings per share) are in line with DP
Slide 11: Recent Outcomes: Investment Returns
RECENT OUTCOMES INVESTMENT RETURNS For personal use only Reliable outcomes over many decades In line with our objective, Whitefield’s investment portfolio has delivered returns similar or better than its Long Term benchmark index over the long term, the compound benefit of which has been substanti
Slide 12: Recent Outcomes: Investment Returns
RECENT OUTCOMES INVESTMENT RETURNS WHF Share Price & Divs Gross of Franking For personal use only • Value of a long term stream of franked dividends is significant WHF Long Term Outperformance • Margin of outperformance above Industrials Index Long and medium term benefit from Industrials tilt • ASX
Slide 13: Whitefield's Portfolio
PORTFOLIO For personal use only WHITEFIELD’S PORTFOLIO (At 31 Mar 2017) Diversified 167 holdings spread across Across the 11 segments of the Australian Industrials economy Universe 12
Slide 14: WHF's Portfolio Exposures
PORTFOLIO WHF’S PORTFOLIO EXPOSURES For personal use only At year end the portfolio carried approximately 40 overweight and underweight exposures (2016 Overweight & - 60) relative to our underlying benchmark index providing a high degree of breadth through Underweight which we seek to deliver outp
Slide 15: Price and NTA
PRICE AND NTA As at Year End 31 Mar 2017 For personal use only Asset Backing Pre Deferred Tax $5.08 ; Post-Deferred Tax $4.65 Commentary Rally in 2017 underlying asset backing has been strong with share price still to catch up. 14
Slide 16: Investment Approach: Strategic Differences Explained
INVESTMENT APPROACH STRATEGIC DIFFERENCES EXPLAINED For personal use only TRADITIONAL TECHNIQUES WHITEFIELD’S APPROACH IN MARKET Manual Data Gathering Automated Data Gathering and Individual Analysis Vs and Structured Analysis Traditional Techniques How WHF’s Techniques Differ Reasons Behind Our App
Slide 17: Investment Approach: Strategic Differences Explained
INVESTMENT APPROACH STRATEGIC DIFFERENCES EXPLAINED For personal use only TRADITIONAL WHITEFIELD’S APPROACH TECHNIQUES IN MARKET One Opinion Multiple Opinions Mix, spread, change analysis Vs Traditional Techniques Used How WHF’s Techniques Differ Reasons Behind Our Approach in Market Utilises larg
Slide 18: Investment Approach: Strategic Differences Explained
INVESTMENT APPROACH STRATEGIC DIFFERENCES EXPLAINED For personal use only Traditional Techniques Used How WHF’s Techniques Differ Reasons Behind Our Approach in Market The complex relationships Deals with Complexity: Real world relationships are complex Strategies generally target between hist
Slide 19: 1st Quarter Update
1ST QUARTER UPDATE For personal use only 1st Quarter [Apr-Jun 2017] Slightly ahead of benchmark in a soft quarter for the market Returns: WHF portfolio return (1.33%) vs S&P/ASX200 Industrials Accum Index (1.41%) Asset $4.91 Pre-Deferred Tax Asset Backing, $4.51 Post Deferred Tax at 30 June 20
Slide 20: Share Purchase Plan
SHARE PURCHASE PLAN For personal use only 2017 Share Purchase Plan Opens: 20 July 2017 Closing Date: 31 July 2017 $4.41 (or 2.5% discount to weighted average market price over 5 days to closing date if lower) Price: Represents 2.5% discount to market price ahead of issue and 10.2% discount t
Slide 21: Conclusion
CONCLUSION For personal use only Some challenges in retail and banking into 2018, but general industrial earnings growth appears positive at this time 2016/17 represented a further year of economic and political change, which while broadly 2017 in Review positive for investment markets involved so