Utilico Emerging Markets Trust PLC GBP · LSE:UEM
Utilico Emerging Markets Trust PLC GBP — Utilico Emerging Markets Trust — Investor Presentation (December 2022)
26 slides from Utilico Emerging Markets Trust PLC GBP's investor presentation, Dec 12, 2022
Slide 1: Investor Presentation
Investor Presentation 12 December 2022
Slide 2: Important Notice
IMPORTANT NOTICE By attending the meeting where this presentation is made, or by reading the presentation slides, you agree to be bound by the following limitations: The information in this document has been prepared by Utilico Emerging Markets Trust plc (“UEM”) solely to give an overview of UEM. Th
Slide 3: Overview of Utilico Emerging Markets Trust plc
Overview of Utilico Emerging Markets Trust plc An attractive long-term investment opportunity Investment Objective Background • Seeks to provide long term-total returns by • Established in 2005 investing predominately in infrastructure, • Closed-ended fund listed on the London digitalisation, utilit
Slide 4: ICM Investment Team
ICM Investment Team Dedicated investment team with over 100 years of experience Charles Jillings Jacqueline Broers Jonathan Groocock Investment Manager Deputy Portfolio Manager Deputy Portfolio Manager CEO, ICM Transportation Utilities Mark Lebbell Eduardo Greca George Velikov Henry Beck Gillian Zha
Slide 5: Performance Since Inception
Performance Since Inception 20 July 2005 to 30 September 2022 NAV ANNUAL COMPOUND NAV TOTAL RETURN SHARE PRICE TOTAL TOTAL RETURN PER SHARE RETURN PER SHARE 9.3% 358.7% 309.3% 71.1M SHARES DIVIDENDS PER SHARE DIVIDENDS PAID BOUGHT BACK INCREASED FROM 1.50P CUMULATIVE PER ANNUM TO * £130.1m 8.15p £21
Slide 6: Historic NAV and Share Price Performance
Historic NAV and Share Price Performance(1) Strong performance since inception with annualised total return of 9.3% Key highlights since inception: • NAV annual compound total return of 9.3% • NAV total return per share of 358.7% • Share price total return of 309.3% • Share buybacks of £130.1m Sourc
Slide 7: Attractive Dividend Growth
Attractive Dividend Growth UEM has a covered dividend, generating a yield of 3.9%(1) • Dividend per share has continued to grow over time, increasing from 1.50p per annum to 8.15p (for the year to 30 September 2022) • Dividend remains fully covered and paid quarterly • Over 75% of UEM’s portfolio co
Slide 8: Country Spotlights
Asset: India Grid Trust Sector: Electricity Transmission Country Spotlights Asset: FPT Corporation Sector: Data Services and Digital Infrastructure
Slide 9: India – Demographic Dividend
India – Demographic Dividend Growing labour force and urbanisation India Population by Age (1) Urbanisation (2) • Second most populous country with 1.4bn people • Urbanisation rate of just 35% • India’s workforce still growing, peaking in 2050 • Over past 20 years urban population has grown by • Lab
Slide 10: India – the Modi Era
India – the Modi Era Reform agenda unlocking India’s potential • Increased digitisation and inclusivity • Over 475m new bank accounts (1) • Average time to resolve insolvency fell from 4.3 to 1.6 years (2) • Revenue collections doubled with simplification of tax codes across state borders (1) • Ease
Slide 11: India – Growth and Inflation
India – Growth and Inflation Robust GDP growth with CPI under control India Gross Domestic Product (“GDP”) growth (%) (1) Consumer Price Index (“CPI”) inflation (1) • GDP growth averaged 7.4% from 2014-2019 • Inflation averaged 8.4% in the 10 years to 2014 • COVID-19 impact to 2019/20 and subsequent
Slide 12: India – Renewables in Focus
India – Renewables in Focus Net zero commitment by 2070 India installed electricity generation capacity (Gigawatt) (1) • To date India has been reliant on fossil fuels, with coal and oil accounting for 57% and 27% of primary energy respectively (2) • Government has targeted net zero by 2070 and for
Slide 13: India – UEM Market Opportunities
India – UEM Market Opportunities Investing in essential infrastructure Powergrid India EBITDA (INR m) (1) GSPL EBITDA (INR m) (1) • Pre-COVID Powergrid delivered 13% CAGR in EBITDA • Pre-COVID GSPL delivered 25% CAGR in EBITDA • 15.5% regulated return protected - no COVID impact • 2021-23 impacted b
Slide 14: Vietnam – Strong Underlying Fundamentals
Vietnam – Strong Underlying Fundamentals Solid demographics and urbanisation driving GDP growth Vietnam population age 45-50 (1) Urbanisation (2) • Median age of Vietnamese population of 32 years (3) • Urbanisation remains less than 40% of population but expected to be 44% by 2030 (3) • More than 10
Slide 15: Vietnam – Dynamic Workforce
Vietnam – Dynamic Workforce Valuable workforce driving the value chain Educated affordable workforce (1) Improving the value chain (2) PISA 579 413 431 382 350 505 Scores • Low-cost skilled workforce • No longer just the assemblers of products • Strong quality graduates • Rising complexity of produc
Slide 16: Vietnam – Geopolitically Well Placed
Vietnam – Geopolitically Well Placed Benefiting from modest exposure to China Vietnam imports from China and exports to US (1) 15% of GDP – trade deficit 22% of GDP – trade surplus • Vietnam has been the number 1 re-location destination choice for Chinese manufacturers. Benefitting from China plus o
Slide 17: Vietnam – Growth and Inflation
Vietnam – Growth and Inflation Solid GDP growth with inflation relatively under control Vietnam GDP growth (%) (1) CPI inflation (%) (1) • Solid GDP growth averaging 6.4% from 2011-2019 • Inflation remains relatively under control at average of 2.8% for the last 8 years • 2020/2021 GDP growth affect
Slide 18: Vietnam – Stock Market Performance
Vietnam – Stock Market Performance Short-term market performance affected by anti-corruption and market dynamics Market performance (1) VN Index sector split (2) • 2019 - 2021 Vietnam outperformed regional peers • Index heavily weighted towards Banks and Real Estate which have struggled to access bo
Slide 19: FPT Corporation
FPT Corporation Vietnamese Telecoms and IT Services Group with a global client base Description Five-year share price performance (VND) • IT Telecoms Group with three core segments: • IT Services to global multinationals and Vietnamese institutions • One of Vietnam's largest fibre broadband and data
Slide 20: Summary
Summary Actively managed investment trust offering differentiated EM exposure Quality cash generative Attractive investee Strong investee Experienced specialist operational assets company valuations management teams investment team Differentiated portfolio Attractive covered Current discount to NAV
Slide 21: Appendix
Appendix
Slide 22: Why We Invest in Emerging Markets?
Appendix 1 - Why We Invest in Emerging Markets? Higher economic growth coupled with attractive secular dynamics Secular Dynamics • Growth of the middle class driving increase in consumption, urbanisation and investment in infrastructure • Emerging markets generate c.60% of global economic growth(1)
Slide 23: Why Invest in UEM?
Appendix 2 - Why Invest in UEM? Dedicated and specialised investment trust providing access to emerging markets Strong Investment Team Utilities and Infrastructure Focused • Experienced and dedicated team • Long-term assets with established regulatory frameworks • Specialised analysts with detailed
Slide 24: Portfolio Construction
Appendix 3 - Portfolio Construction Risk mitigation through sector and geographical diversification Sector Diversification Sector Portfolio Construction Number of • Approximately 80 holdings holdings • Primarily equity, but unrestricted and can invest in Asset type bonds, convertibles and other type
Slide 25: UEM Top Twenty as at November 2022
Appendix 4 - UEM Top Twenty as at 30 November 2022 The portfolio continues to offer value with an attractive dividend yield Investment Company Country Sector % of UEM (£m) 1 International Container Terminal Services, Inc. (ICT) Ports and Logistics 26.8 2 Alupar Investimento S.A. Electricity Transmis
Slide 26: Fund Facts
Appendix 5 - Fund Facts Fund size: £526.1m as at 30 November 2022 Trading: London Stock Exchange – Main Market Ordinary Shares in issue: 203.9m as at 30 November 2022 Management fee: 1.0% of NAV up to and including £500m; 0.9% of NAV exceeding £500m up to and including £750m; 0.85% of NAV exceeding
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