Law Debenture Corp PLC · LSE:LWDB
Law Debenture — Shareholder Meeting (April 2021)
19 slides from Law Debenture's shareholder meeting presentation, April 2021
Slide 1: AGM: April 2021
AGM: April 2021 , FF ta ar QQ
Slide 2: The Law Debenture model
1. The Law Debenture model Total Shareholder Return Investment Portfolio Independent Professional Services (IPS) ~ 83% NAV ~ 17% NAV • Equity portfolio managed by James • Trusted, professional, independent third Henderson and Laura Foll of Janus party provider: Henderson • Pensions • Selective, bott
Slide 3: Dividend Update
2. Dividend Update • First three interim dividends of 6.5 pence per ordinary share have been paid. • Board announced an increase to the total 2020 dividend of 5.8% to 27.5 pence per share, with a final interim dividend of 8.0p to be paid in April, subject to Shareholder approval. • Based on current
Slide 4: IPS: Overview – Pensions, Corporate Trust, Corporate Services
3. IPS: Overview Pensions Corporate Trust Corporate Services The longest established and A leading independent Highly regarded range of largest provider of corporate trustee across outsourced solutions to independent pension trustees international capital markets corporates in the UK • Trusted, prof
Slide 5: IPS: Overview
3. IPS: Overview • Resilient IPS business has provided 68% of group revenue, with an increase in revenue (net of cost of sales) of 8.5% and earnings per share up 9.5%. • Objective of mid to high single digit growth delivered in 2020 against the backdrop of Covid-19, highlighting the strength and div
Slide 6: IPS: Pensions
3. IPS: Pensions • Our trustee team now support in excess of 200 clients, with oversight of over £350bn of assets, providing pension benefits to more than three million families • Following the launch of our outsourced administration service Pegasus in 2017, we have seen significant growth in the de
Slide 7: IPS: Corporate Trust
3. IPS: Corporate Trust • Income is generated by a mixture of up-front acceptance fees on new business and long term, annual annuity fees on existing business • Fought hard to maintain market share in a highly competitive market where capital market transaction volumes have fallen • Long-term nature
Slide 8: IPS: Corporate Services
3. IPS: Corporate Services • Acquisition of the Company Secretarial Services business line from Konexo UK, a division of Eversheds Sutherland (International) LLP for £20m completed at the end of January 2021. • Our core corporate services business is performing well, winning clients and expanding th
Slide 9: Acquisition of Company Secretarial business from Eversheds
3. Acquisition of Company Secretarial business from Eversheds • For the financial year ended 30 April 2020, CSS recorded revenues of £6.2m and estimated EBITDA of £2.2m. • The Acquisition will further strengthen Law Debenture's position as a leading professional services and governance firm and enha
Slide 10: IPS: In Summary
3. IPS: In Summary • IPS has very attractive financial characteristics: – High margins and high return on capital – Proven track record of delivery of mid-to-high single digit growth • Strong free cash flow offers bolt-on/cash reinvestment opportunities and supports the dividend • On-going investmen
Slide 11: Investment Portfolio – James Henderson & Laura Foll, Janus Henderson
Investment Portfolio – James Henderson & Laura Foll, Janus Henderson
Slide 12: Investment Portfolio: Investment Approach
Investment Portfolio: Investment Approach • Investment objective: long term capital growth in real terms and steadily increasing income • Selective, bottom-up approach, deliberately diversified by sector and geography • Valuation-driven process, aiming to identify high quality companies that are und
Slide 13: Investment Portfolio: Long Term Performance
Investment Portfolio: Long Term Performance as of 31 December 2020 Strong performance track record – outperformance over 1, 3, 5, 10 years Source: Law Debenture Corporation as at 31st December 2020 13
Slide 14: The UK has materially underperformed other global markets
Investment Portfolio: The UK has materially underperformed other global markets 220 FTSE All Share Index 200 MSCI World Index MSCI Europe ex UK Index 180 S&P 500 Index 160 140 120 100 80 Jun-16 Oct-16 Jun-17 Oct-17 Jun-18 Oct-18 Jun-19 Oct-19 Jun-20 Oct-20 Feb-16 Apr-16 Feb-17 Apr-17 Feb-18 Apr-18 F
Slide 15: Portfolio overview
Investment Portfolio: Portfolio overview Top 10 holdings (%) Geographic weightings (%) Source:Source: Law Debenture. Based as Law Debenture onat the 31 Portfolio December as2020 of 31 December 2020 15
Slide 16: Current Opportunities, what are we buying?
Investment Portfolio: Current Opportunities, what are we buying? Recent purchases include: Barclays (new position in 2020) – also added to existing holdings in banks including Natwest, Lloyds, HSBC Marks & Spencer (new position in 2020) Anglo American (new position in 2020, recently added to holding
Slide 17: Attribution: Largest contributors and detractors
Investment Portfolio: 31 December 2020 Attribution Largest contributors Largest detractors 1. Ceres Power 1. Royal Dutch Shell 2. ITM Power 2. Hammerson 3. Herald Investment Trust 3. GlaxoSmithKline 4. Rio Tinto 4. BP 5. Royal Mail 5. HSBC Source: Law Debenture as at 31 December 2020. Only includes
Slide 18: Investment Portfolio: Outlook
Investment Portfolio: Outlook • Law Debenture is well positioned for a global economic recovery and the vehicle allows flexibility to invest in lower yielding areas, while maintaining an attractive dividend yield for shareholders • The companies we hold have experienced management teams • Balance sh
Slide 19: Janus Henderson Investors – Important information
Janus Henderson Investors 201 Bishopsgate, London EC2M 3AE Tel: 020 7818 1818 Fax: 020 7818 1819 Before investing in an investment trust referred to in this document, you should satisfy yourself as to its suitability and the risks involved. Past performance is not a guide to future performance. The