AMCIL Limited · ASX:AMH
AMCIL — Shareholder Meeting (October 2002)
31 slides from AMCIL's shareholder meeting presentation, Nov 13, 2002
Slide 1: Chairman's Presentation AGM 2002 cover letter
AMCIL Limited ACN 073 996 735 101 Collins Street Melbourne Victoria 3000 GPO Box 21148 Melbourne 3001 Telephone 03 9650 9944 Facsimile 03 9650 9100 Email: invest@ameil.com.au Internet: hrup://www.amcil.com.au Dear Shareholder CHAIRMAN’S PRESENTATION — AGM 2002 Enclosed is a copy of my presentation t
Slide 2: Annual General Meeting 23 October 2002
a a 2 : ooo eo ited Annual General Meeting 23 October 2002
Slide 3: Investment Environment
jwea@mm@is Limited Investment Environment Media Price Telco Price Index Index Fall Mar 00 peak To Sept 01 53.6% 53.0% Fall from Sept 01 to Sept 02 25.5% 10.7% Approximate cumulative fall from peak 65% 58%
Slide 4: Last year, we held our AGM one month out from September 11
SLIDE 1 Last year, we held our AGM on 11 October, one month out from the September 11 terrorist attacks in the United States. At that point the two sectors in which we invest, the media and telecommunications sectors, had fallen dramatically from their peaks during March 2000. The media sector was d
Slide 5: AMCIL's Performance
AMCIL’s Performance Dividends & Interest Option Trading Other Income Expenses Gains/(Losses) on disposals Net write down of securities Income tax Total Changes in Equity 2002 2001 $7000 $000 7,004 8,010 3,811 7,209 0 59 (718) (769) (8,316) 5,644 (22,341) (64,978) (2,590) (2,717) (23,150) (47,542)
Slide 6: How did AMCIL perform for the year?
SLIDE 2 In this very difficult investment environment, how did AMCIL perform for the year? This next slide summarises AMCIL’s Statement of Financial Performance. During the past two years, we have used up capital reserves and, as a result, some losses on disposals had to be taken through the profit
Slide 7: Overview to June 2002
jea@mm@bs Limited Overview to June 30 2002 * AMCIL Total return (Net Assets + div) «S&P/ASX Media Accum Index «S&P/ASX Media Accum Index ex NCP « S&P/ASX Telco Accum Index * S&P/ASX Telco Accum Index ex TLS down 10% down 40% down 5% down 13% down 25%
Slide 8: AMCIL's total return versus the indices
SLIDE 3 These results in percentage terms show that AMCIL’s total return as measured by return on net assets and dividends to June 30 2002 was a decline of 10%, which represent significant out performance compared with the Media Accumulation Index and the Telecommunications Accumulation Index over t
Slide 9: AMCIL Returns
jea@mm@bs Limited AMCIL Returns 01/02 00/01 99/00 98/99 97/98 96/97 DIVIDEND/SHARE Cents 0 14 8 7.5 7 4 NET ASSETS/SHARE Cents 188 214 276 271 229 207 TOTAL RETURN Y%pa -10.4 -17.6 14.5 21.6 282 6.8 COMPOUND ANNUAL 5 YEAR RETURN = 5.7% pa
Slide 10: Performance since inception
SLIDE 4 This next slide shows the performance of AMCIL since inception as measured by the growth in net assets per share and dividends paid. This is a measure of the internal performance of the company’s management of its assets including dividends paid out to shareholders from the profits earned. I
Slide 11: Net Asset Backing
AMCI L | Limited Net Asset Backing Net Asset Backing (before providing for final dividend) 30 June 2000 $2.76 30 June 2001 $2.14 30 June 2002 $1.88 30 Sept 2002 $1.79
Slide 12: Movement in net asset backing per share
SLIDE 5 This next slide shows the movement in the net asset backing per share of AMCIL over the last two years and updating it for the latest quarter. As at 30 September 2002, the net asset backing was $1.79.
Slide 13: Overview June-September 2002
jea@mm@bs Limited Overview June-September 2002 « AMCIL Total return down 4.77% ¢ S&P/ASX 300 Media Accum Index down 9.33% * S&P/ASX 300 Telco Accum Index up 3.99%
Slide 14: Performance for the quarter
SLIDE 6 The performance for the quarter was a further decline of 4.8%. This compares to the Media Accumulation Index which was cown 9.3%. The Telecommunications index was up 4.0%, the first positive movement in that index for some time.
Slide 15: AMCIL Portfolio Composition September 2002
yn GM INEVEGEEA Limite AMCIL Portfolio Composition 30 September 2002 = 4.54, 240, (liquid securities, 4 cash & deposits) Telco 27% A Li fp ey, Sy Related Sectors 2% Media 50%
Slide 16: Portfolio composition as at September 30, 2002
SLIDE 7 This pie chart shows the composition of the portfolio as at September 30, 2002. At this point, 27% of the portfolio is held in Telecommunications stocks, primarily Telstra (approx. 73% of the Telco investments) and also Telecom New Zealand and Singapore Telecommunications (which took over OP
Slide 17: Specific Actions
AMCI L | Limited Specific Actions Manage the portfolio defensively Retain high cash levels Maintain sound financial position Continue the share buy back Propose a wind up
Slide 18: Key actions taken
SLIDE 8 Last year, | indicated that “the past 18 months have been about as difficult as they could possibly get in investment in these two sectors”. This year | could reiterate this comment but referring to the past 30 months. In this environment, we have continued to seek to preserve the company’s
Slide 19: Net Asset Backing v Share Price Since Listing
jea@mm@bs Limited Net Asset Backing v Share Price Since 350.00 320.00 290.00 260.00 230.00 200.00 170.00 140.00 Listing Net Asset Backing . # ae ue aan a Share Price ian oeoee ee _ => x= 1 2 ws Se te = S$ fF Ff 2?PFSs7?7 fF? FFF FS Ff =F F&F i = -» et 6 2 £ € Bs & S £ EE SB S$ £5 35 6§ ®©®©§ 8B BSB
Slide 20: Share price versus net asset backing since listing
SLIDE 9 This graph tracks the Company’s share price since listing in February 2000 as compared with the net asset backing of the shares over the same period. While our share price traded around the net asset backing in the period up to July 2000, since August 2000 it has consistently traded at a dis
Slide 21: Share Price to Net Asset Backing Premium/Discount Since Listing
IGNEGREM Limited Share Price to Net Asset Backing Premium/Discount Since Listing 10% OY. - -10% -20%
Slide 22: Stock traded at a discount of more than 10%
SLIDE 10 Except for two months the stock traded at a discount of more than 10% from August 2000 through to June 2002. Just after September 11 2007 it was trading at a discount of over 20%. The Board viewed this with considerable concern. It meant that shareholders who were selling their investments
Slide 23: Index Components
jea@mm@bs Limited INDEX COMPONENTS ¢ S&P/ASX 300 Media Index NCP 76.2% ¢ S&P/ASX 300 Telco Index TLS 88.3%
Slide 24: Domination of sectors by News Corporation and Telstra
SLIDE 11 A key element in our thinking is the domination of the media sector by News Corporation and the domination of the telecommunications sector by Telstra. In benchmark terms News Corporation now represents more than 75% of the S&P/ASX 300 Media Index and Telstra now represents 88.3% of the S&P
Slide 25: Alternatives
jea@mm@bs Limited ALTERNATIVES * Continue as before ¢ Widen investment mandate geographically ¢ Invest in different sectors ¢ Takeover or merger ¢ Wind-up
Slide 26: Alternatives considered by the Board
SLIDE 12 The first of the alternatives which the Board considered was the “tough it out” scenario of continuing as before. This almost certainly would mean a continuation of the discount at which the shares were trading relative to asset backing. It also meant a considerable continuing investment in
Slide 27: Reasons for the Wind up
jea@mm@bs Limited Reasons for the Wind up e Structural changes in the industries e Shares persistently trading at a big discount to Net asset backing ¢ Performance dominated by News Corporation, Telstra and cash holdings
Slide 28: Key reasons for the wind-up proposal
SLIDE 13 That brings us again to the wind-up proposal — what are the key reasons? First structural changes have occurred within the Media and Telecommunications sectors since the company was established in 1996. Whereas there was a sense of vitality and growth coming from the many start up and other
Slide 29: Wind up Proposal
jea@mm@bs Limited Wind up Proposal * Progressively sell AMCIL’s investments carefully at sensible prices ¢ As appropriate repay capital to shareholders in two or three payments * Liquidate preferably by June 2003 subject to market
Slide 30: The wind-up proposal — how is it achieved?
SLIDE 14 The wind-up proposal — how is it achieved? The idea is that the company would progressively sell all its investments, but choosing to do so carefully and at sensible prices. During this period a number of returns of capital would be made as the cash was freed up. Once the portfolio had been
Slide 31: he Ls
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