Perpetual Equity Investment Co. Ltd. · ASX:PIC
Perpetual Equity Investment — Shareholder Meeting (November 2024)
29 slides from Perpetual Equity Investment's shareholder meeting presentation, Nov 7, 2024
Slide 1: ASX Announcement: Annual General Meeting 2024
Perpetual Equity Investment Company Limited ABN 68 601 406 419 Level 18, 123 Pitt Street Sydney NSW 2000 Australia Phone 02 9229 9000 www.perpetualequity.com.au All Registry communications to: C/- Link Market Services Limited Locked Bag A14 Sydney South NSW 1235 Telephone: +61 1800 421 712 Email: pi
Slide 2: Address to Shareholders 2024 Annual General Meeting
a PERPETUAL . 4 EQUITY MINVESIVEN » COMPANY o LIMITED ADDRESS TO SHAREHOLDERS 2024 ANNUAL GENERAL MEETING Perea ACN 601 406 419 7
Slide 3: Chairman's Address
PIC FY24 ANNUAL GENERAL MEETING Chairman’s Address Nancy Fox AM I would like to start by acknowledging our fellow longstanding shareholders and welcome our new shareholders that joined this year. Thank you all for your support in PIC. We understand the value our shareholders place on income and are
Slide 4: Delivering a reliable income stream
trailing 12-month dividend yield of the S&P/ASX 300 Accumulation Index which was 3.7% as at 30 June 2024. During the year, the Board had two specific areas of focus, which I will now touch on. Firstly, our continued management of the Company’s dividend; and also our agreement and partnership with Pe
Slide 5: Management agreement review and concluding remarks
assessing our current and future Management Agreement to ensure the Company remains strongly positioned for the years ahead. This included appointing Deloitte to conduct an independent review of PIML’s investment process, operations and alternative investment managers. I would like to thank our Inde
Slide 6: Annual General Meeting & Investment Manager Update November 2024
For personal use only Annual General Meeting & Investment Manager Update 7 November 2024
Slide 7: Important note
Important note This information was prepared by Perpetual Investment Management Limited (PIML) ABN 18 000 866 535, AFSL 234426. PIML is the Manager for the Perpetual Equity Investment Company Limited (Company) (ASX: PIC) ACN 601 406 419. This For personal use only presentation is in summary form and
Slide 8: Board of Directors
Perpetual Equity Investment Company Board of Directors For personal use only Nancy Fox AM Chairman Appointed July 2017 Virginia Malley Non-executive Director Appointed August 2014 John Edstein Non-executive Director Appointed September 2014 Michael Clarke Non-executive Director Appointed September 2
Slide 9: Today's agenda
Today’s agenda For personal use only │ Chairman’s address │ Investment Manager’s Update │ Q&A Nancy Fox AM Vince Pezzullo Sean Roger │ Formal voting Chairman PIC Portfolio Equities Analyst Manager │ Closure 4
Slide 10: Chairman's Address
For personal use only Chairman’s Address Nancy Fox AM
Slide 11: FY24 results summary
FY24 results summary For personal use only Net profit $28.6m Net profit after tax Investment 7.7% 2 10.4% p.a. 2 performance 12 months to 30 June 2024 Over 5 years to 30 June 2024 Dividend 8.0 cps 6.5% 3 9.3% 3 Total FY24 fully franked dividend Annual dividend yield Grossed-up dividend yield Source:
Slide 12: Well positioned to deliver a reliable income stream through all market conditions
Well positioned to deliver a reliable income stream through all market conditions For personal use only Fully franked dividends since inception cents per share (cps) $82.5m 2.7 years Profit reserve Dividend coverage 0.5 4.0 4.0 3.3 3.4 2.8 2.8 2.8 2.5 $12.7m 1.0 year 2.0 4.0 3.0 3.1 3.2 3.3 2.8 2.8
Slide 13: Chairman's Address
For personal use only Chairman’s Address Nancy Fox AM
Slide 14: Asking a question online or by phone
Asking a question online Asking a question by phone Shareholders and non-shareholders Shareholders only Mute your webcast. Click on 'Ask a Question' 1 Click on ‘Ask a Question’ For personal use only and then 'Go to Web Phone' Select ‘General Business’ or a specific A pop up box will appear with a mi
Slide 15: Investment Manager Update
For personal use only Investment Manager Update Vince Pezzullo, PIC Portfolio Manager Head of Australian Equities, Perpetual Asset Management Australia
Slide 16: Large and experienced investment team
Large and experienced investment team Head of Equities Portfolio managers Analysts For personal use only Anthony Aboud Guy Bunce Deputy Head of Equities Senior Equities Analyst Portfolio Manager - SHARE-PLUS Long-Short, Pure Equity Alpha, Industrial Share Clarke Wilkins Nathan Hughes Senior Equities
Slide 17: Our views on markets: contrasting last year and now
Our views on markets: contrasting last year and now • In Australia, there are risks that inflation is becoming more embedded through regulation and For personal use only government spending • Jobs market remains strong – even though many are government (NDIS) • Global money supply is starting to acc
Slide 18: PIC portfolio: value stocks
What we believe are PIC portfolio: value stocks consequences For personal use only Active ownership: Uncorrelated engaging with board and management • Risks of inflation re-emerging IAG GWA • Financial conditions may need to tighten given fiscal stimulus Ramsay Healthcare A2 Milk • Upward pressure o
Slide 19: Stocks in focus
For personal use only Stocks in focus Sean Roger, Equities Analyst Perpetual Asset Management Australia
Slide 20: Flutter Entertainment
Flutter Entertainment (NYSE: FLUT) Global online sports betting & iGaming operator • Global online sports betting & iGaming leader with #1 market share positions in key global For personal use only Portfolio markets including the US (Fanduel), UK (Paddy Power, Sky Bet, Betfair) & Australia position
Slide 21: Flutter Entertainment: Fanduel as a case study
Flutter Entertainment (NYSE: FLUT) Fanduel as a case study Fanduel market share Fanduel financial profile For personal use only • Sustained market share leadership • Strong market growth + market share gains = material revenue growth • Profitability inflecting • Flutter estimates suggest end market
Slide 22: Flutter Entertainment: Compelling financial outlook
Flutter Entertainment (NYSE: FLUT) Compelling financial outlook For personal use only • FY24-27 company released targets reflect highly attractive financial growth: FY24–27 CAGR Revenue 14% EBITDA 27% Free Cash Flow 36% • Fanduel value becoming apparent in Flutter financials • Free cash flow inflect
Slide 23: Cobram Estate Olives
Cobram Estate Olives (ASX: CBO) Australian based olive grower and premium brand owner • Vertically integrated olive grower and marketer with operations in Australia and the US For personal use only Portfolio • Dominates Australian industry: position ‒ Owns 7,000 hectares of planted olive groves (>2.
Slide 24: Cobram Estate Olives: Growth drivers
Cobram Estate Olives (ASX: CBO) Growth drivers Australia embedded growth US opportunity significant For personal use only • Volume growth of ~80% when recently planed groves • Total investment to date ~$190m mature • Cobram brand – >18k points of distribution. #2 brand • Volume growth supports margi
Slide 25: Investment Manager Update
For personal use only Investment Manager Update Vince Pezzullo, Portfolio Manager Head of Australian Equities, Perpetual Asset Management Australia
Slide 26: Investment portfolio performance
Investment portfolio performance Delivering long-term performance For personal use only Since 3 yrs 5 yrs 7 yrs As at 30 September 2024 1 mth 3 mths 1 yr inception p.a. p.a. p.a. p.a. PIC Investment Portfolio1 3.4% 4.1% 16.9% 4.8% 11.2% 9.9% 9.7% (net of fees, expenses and before tax paid) S&P/ASX 3
Slide 27: Portfolio performance in perspective
Portfolio performance in perspective Delivering long-term performance • Perpetual Equity Investment For personal use only Perpetual Equity Investment Company vs indices 250 Company (ASX:PIC) utilises Perpetual’s renowned quality and 230 value approach 210 • The last decade has been dominated 190 by
Slide 28: Summary
Summary • “Reflation” is likely here, one way or another: – Bond yields on the rise and impacting equities For personal use only • We remain well diversified in this environment – We continue to look for quality businesses with good growth prospects trading at reasonable valuations. • This includes
Slide 29: Asking a question online or by phone
Asking a question online Asking a question by phone Shareholders and non-shareholders Shareholders only Mute your webcast. Click on 'Ask a Question' 1 Click on ‘Ask a Question’ For personal use only and then 'Go to Web Phone' Select ‘General Business’ or a specific A pop up box will appear with a mi
Perpetual Equity Investment Company — Shareholder Meeting (November 2024) on 6ix