Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — H1 FY2022 Earnings Presentation
26 slides from Plato Income Maximiser's earnings presentation, Mar 1, 2022
Slide 1: Shareholder webinar reminder and presentation on half-year results
Plato Income Maximiser Limited (Company) Level 35, 60 Margaret Street Sydney NSW 2000 T: 1300 010 311 E: invest@plato.com.au For personal use only ABN 63 616 746 215 1 March 2022 By Electronic Lodgement Market Announcements Office ASX Ltd 20 Bridge Street SYDNEY NSW 2000 Dear Shareholder, Shareholde
Slide 2: Company Half-Year 1HFY22 Results
COMPANY HALF-YEAR 1HFY22 RESULTS PLATO INCOME MAXIMISER LIMITED ASX: PL8 For personal use only 1
Slide 3: Disclaimer
Disclaimer Note: Past performance is not a reliable indicator of future performance. For personal use only This communication has been prepared by Plato Income Maximiser Limited ABN 63 616 746 215 (PL8). Nothing contained in this communication constitutes investment, legal, business, taxation or oth
Slide 4: Agenda
Agenda For personal use only 01 PL8 Company Update 02 Market update 03 Questions 3
Slide 5: PL8
For personal use only 4 PL8 Company Update
Slide 6: 1HFY22 sees dividends restored and Company growth
1HFY22 sees dividends restored and Company growth For personal use only • 1HFY22 operating profit after tax of $15.4 million • Total dividends of $0.0285 per share, equivalent to annualised distributed yield of 6.4%1,3 • Monthly fully franked dividends increased from $0.0045 per share to $0.005 per
Slide 7: PL8 investment portfolio performance
PL8 investment portfolio performance PERFORMANCE TO 31 DECEMBER 2021 AFTER FEES AND COSTS* For personal use only Since Half-Year 12 Months Inception p.a.** Including Franking (28/4/2017) Portfolio 4.0% 16.5% 10.2% S&P/ASX200 Tax 4.6% 18.8% 10.6% Exempt Active -0.6% -2.3% -0.4% *Inclusive of the net
Slide 8: PL8 delivering high income
PL8 delivering high income For personal use only 12 month realised yield* 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% RBA Cash Rate S&P/ASX 200 PL8 CASH 0.1 3.7 4.3 FRANKING 0.0 1.3 1.8 *to 31 December 2021, Plato, Bloomberg 7
Slide 9: Chart of Plato Income Performance
Chart of Plato Income Performance For personal use only Plato Aust. Shares Income Fund v S&P/ ASX200 Accumulation Series (incl. Franking Credits) 3.80 3.30 2.80 2.30 1.80 1.30 0.80 Sep-2011 Sep-2012 Sep-2013 Sep-2014 Sep-2015 Sep-2016 Sep-2017 Sep-2018 Sep-2019 Sep-2020 Sep-2021 Plato Australian Sha
Slide 10: Delivering consistent monthly income
Delivering consistent monthly income INCREASED MONTHLY DIVIDENDS TO $0.005 PER SHARE For personal use only Only Australian LIC paying monthly fully franked dividends 9 Source: Plato. While monthly income has been consistent since October 2017, this may change in the future. The declaration of divide
Slide 11: PL8 NTA performance breakdown for 1HFY22
PL8 NTA performance breakdown for 1HFY22 PRE-TAX NTA PER PL8 SHARE* For personal use only Source: Plato. *Excludes franking credits. 10
Slide 12: Share price has traded at a premium to NTA
Share price has traded at a premium to NTA PL8 PRICE VERSUS PRE-TAX NTA SINCE LISTING For personal use only Source: Plato, IRESS. Past performance is illustrative only and not indicative of future performance. 11
Slide 13: Growing asset and shareholder base
Growing asset and shareholder base PL8 ASSET AND SHAREHOLDER BASE UP >100% SINCE IPO For personal use only Source: Plato, Automic, ASX Company net assets at IPO is net of IPO costs. Current net assets is after the payment of $0.276 per share in dividends since inception. 12
Slide 14: Market Update
For personal use only 13 Market Update
Slide 15: RBA forecasts three years of record low 0.1% cash rate
RBA forecasts three years of record low 0.1% cash rate OFFICIAL RBA CASH RATE EXPECTATIONS – EVEN LOWER FOR LONGER For personal use only Source: RBA, Plato 14
Slide 16: But the market has different ideas!
But the market has different ideas! FUTURES MARKET IMPLIED CASH RATES For personal use only Source: Macquarie Equities 15
Slide 17: Results season August 2021 - Dividends
Results season August 2021 - Dividends EARNINGS UP AND DIVIDENDS EVEN MORE For personal use only • Over $38bn in dividends have been declared, $17bn more than last year and $10bn more than in 2019. • Strong dividend increases: 20 20 A ND 20 2 1 C H A NG E I N D I VI D E NDS P C P – BHP (263%), Rio T
Slide 18: Tax effective buy-backs can be very advantageous
Tax effective buy-backs can be very advantageous CBA BUYBACK – WORTH 14% AFTER TAX FOR ZERO TAX INVESTORS For personal use only • A$6bn off market buyback - >3.5% of shares on issue • Worth 14% for pensioners for every share successfully tendered • Scale back 79.4% Source: Plato, CBA announcement 4/
Slide 19: Big Aussie income stocks doing it tough!
Big Aussie income stocks doing it tough! 6 STOCKS ACCOUNT FOR NEARLY HALF OF ALL DIVIDENDS For personal use only % of Gross Dividend Income - CY21 Price Performance 1.40 1.30 1.20 BHP Group 1.10 Commonwealth Bank 1.00 Fortescue Metals 0.90 National Australia Bank 0.80 ANZ Rio Tinto 0.70 Other 0.60 0
Slide 20: Largest Contributors to Income
Largest Contributors to Income YEAR TO 31 DECEMBER 2021 Top 10 Contributors to Excess Income Investment Reasoning For personal use only (Last 12mths) Excess Income Return Capital Income Stock Yield Run up Value Momentum Reasoning (%) (%) (%) (%) Large yield, total return took a hit during Q3 as iron
Slide 21: Largest Contributors to Active Performance
Largest Contributors to Active Performance YEAR TO 31 DECEMBER 2021 For personal use only Top 10 Contributors To Active Performance (Last 12mths) Investment Reasoning Active Performance Return Capital Income Stock Yield Run up Value Momentum Reasoning (%) (%) (%) (%) Afterpay Touch 0.64 -29.7 -29.7
Slide 22: Winning by not losing - avoiding dividend traps
Winning by not losing - avoiding dividend traps MAGELLAN FINANCIAL UP TO 14% GROSS DIVIDEND YIELD For personal use only 60 15.00% 55 14.00% 13.00% 50 12.00% 45 Historical Yield (%) 11.00% 40 Price 10.00% 35 9.00% 30 8.00% 25 7.00% 20 6.00% 15 5.00% Price (LHS) Historical Gross Yield (RHS) Source: Pl
Slide 23: Asset Class Outlook for Income
Asset Class Outlook for Income FORECAST 12 MONTH INCOME AS AT 01/02/2022 For personal use only 31/12/2020 2/03/2021 1/09/2021 1/02/2022 6.00% 5.00% 4.00% 3.00% 2.00% 1.00% 0.00% Official Overnight Cash 10yr Aust Bonds Term Deposits* Company BB Credit* MSCI World ex Aust REITs Aust Equities (Gross) S
Slide 24: Yields on all asset classes have fallen
Yields on all asset classes have fallen BUT NOTE THE RECENT INCREASE For personal use only Plato Aussie Income Fund (gross normalised) S&P200 Gross CashRate 12 Mth Term Deposit 3yr BBB Credit 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Sep-2012 May-2014 Jul-2013 Aug-2015 Dec-2013 Jun-2016 Apr-2017 S
Slide 25: The income summary
The income summary For personal use only Bad news: Interest rates to remain at historic lows – 1-2 years of bad news for retirees in term deposits Good news: Dividends have rebounded strongly – PL8 monthly dividend restored to pre-pandemic levels – Plato dividend cut model returns to normal – Strong
Slide 26: Thank You - Questions
For personal use only 25 THANK YOU Questions
Plato Income Maximiser — H1 FY2022 Earnings Presentation on 6ix