Plato Income Maximiser Ltd. · ASX:PL8
Plato Income Maximiser — FY2024 Earnings Presentation
29 slides from Plato Income Maximiser's earnings presentation, Aug 30, 2024
Slide 1: Shareholder webinar reminder and presentation on full year results
Plato Income Maximiser Limited Level 25 Australia Square Tower 264 George Street Sydney NSW 2000 T: 1300 010 311 E: invest@plato.com.au ACN 616 746 215 30 August 2024 By Electronic Lodgement Market Announcements Office ASX Ltd 20 Bridge Street SYDNEY NSW 2000 For personal use only Dear Sir/Madam Sha
Slide 2: Company Full-Year FY24 Results
COMPANY FULL-YEAR FY24 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. 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 other advice. This commun
Slide 4: Agenda
Agenda 01 PL8 Company Update For personal use only 02 Market update 03 Questions 3
Slide 5: PL8
For personal use only 4 PL8 Company Update
Slide 6: FY24 results highlights
FY24 results highlights CONTINUING TO DELIVER ON COMPANY OBJECTIVES For personal use only • FY24 operating profit after tax of $65.9 million (+$8.5 million to FY23) • Total dividends of $0.066 per share, equivalent to annualised distributed yield of 7.8%1,4 • Total portfolio return of 13.6%1, equal
Slide 7: PL8 NTA performance breakdown for FY24
PL8 NTA performance breakdown for FY24 PRE-TAX NTA PER PL8 SHARE* For personal use only Source: Plato. *Excludes franking credits. Portfolio performance is net of management fees. 6
Slide 8: PL8 investment portfolio performance
PL8 investment portfolio performance PERFORMANCE TO 31 JULY 2024 AFTER FEES AND COSTS For personal use only PORTFOLIO PERFORMANCE1 3 MTHS 1 YR P.A. INCEPT. P.A. Total return2 5.6% 15.2% 10.1% Income3 2.0% 7.8% 7.6% Benchmark total return2 6.4% 15.0% 10.1% Excess total return2 -0.8% 0.2% 0.0% Excess
Slide 9: PL8 delivering high income
PL8 delivering high income For personal use only *to 31 July 2024, Plato, Bloomberg 8
Slide 10: PL8 portfolio outperforming the Benchmark over full investment cycle
PL8 portfolio outperforming the Benchmark over full investment cycle $500,000 Plato Aust. Shares Income Fund v S&P/ ASX200 Accumulation Series (incl. Franking Credits) $450,000 For personal use only $400,000 $350,000 $300,000 $250,000 $200,000 $150,000 $100,000 $50,000 $0 Sep-11 Sep-12 Sep-13 Sep-14
Slide 11: Delivering consistent monthly income
Delivering consistent monthly income MONTHLY DIVIDENDS STEADY AT HIGHER LEVEL OF $0.0055 PER SHARE For personal use only Only Australian LIC paying monthly fully franked dividends Source: Plato. While monthly income has been consistent since October 2017, this may change in the future. The declarati
Slide 12: Share price at a premium to NTA
Share price 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: Market Update
For personal use only 12 Market Update
Slide 14: Retirees are different
Retirees are different • Retirees are different to accumulators • They need to live off the income from their investments: For personal use only • Investment income replaces regular salary • They are taxed differently: • The first $1.9m in pension phase superannuation is tax free whereas accumulatio
Slide 15: Pension phase super tax rates are different
Pension phase super tax rates are different (what about that super cap?) $1.60 For personal use only $1.40 $1.20 $1.00 $0.80 $0.60 $0.40 $0.20 $- Pension/Tax Exempt (0%) Super (15%) Super (30%) Individual (39%)# Top Individual (47%)* Fully Franked Dividend Long Term Capital Gain Short Term Capital G
Slide 16: Why own Aussie shares? It's all about the income & franking
Why own Aussie shares? It’s all about the income & franking 19 YEARS TO JUNE 2024 ASX300 Price Index ASX300 Accumulation Index ASX300 Accumulation Index (incl, Franking Credits) 6 For personal use only 5 4 3 2 1 0 2005 2008 2011 2014 2017 2020 2023 Source: Plato S&P Growth 3.2%pa, accumulation 7.6%p
Slide 17: Australian share price growth has lagged
Australian share price growth has lagged Price Growth 6.0 For personal use only 5.0 4.0 Axis Title 3.0 2.0 1.0 0.0 Jun-05 May-06 Apr-07 Mar-08 Feb-09 Jan-10 Dec-10 Nov-11 Oct-12 Sep-13 Aug-14 Jul-15 Jun-16 May-17 Apr-18 Mar-19 Feb-20 Jan-21 Dec-21 Nov-22 Oct-23 ASX300Price MSCI World price SP500 Pri
Slide 18: But Australian dividends are higher
But Australian dividends are higher Accumulation 8.0 For personal use only 7.0 6.0 5.0 Axis Title 4.0 3.0 2.0 1.0 0.0 Jun-05 May-06 Apr-07 Mar-08 Feb-09 Jan-10 Dec-10 Nov-11 Oct-12 Sep-13 Aug-14 Jul-15 Jun-16 May-17 Apr-18 Mar-19 Feb-20 Jan-21 Dec-21 Nov-22 Oct-23 ASX300 Accum MSCI World - Net Accum
Slide 19: Don't forget the franking!
Don’t forget the franking! Accum + Franking 8.0 For personal use only 7.0 6.0 5.0 Axis Title 4.0 3.0 2.0 1.0 0.0 Jun-05 Apr-06 Feb-07 Dec-07 Oct-08 Aug-09 Jun-10 Apr-11 Feb-12 Dec-12 Oct-13 Aug-14 Jun-15 Apr-16 Feb-17 Dec-17 Oct-18 Aug-19 Jun-20 Apr-21 Feb-22 Dec-22 Oct-23 ASX300 Accum +Franking MSC
Slide 20: Results season August 2024 - Dividends
Results season August 2024 - Dividends DIVIDENDS UP, $ VALUE DOWN • Over $34bn in dividends have been declared so far v $35B last year. • Strong dividend increases: For personal use only – Insurance Australia (89%), QBE Insurance (71%) and Suncorp (63%) in financials. AUG 2024 CHANGE IN DIVIDENDS PC
Slide 21: Reporting Season Analysis: CBA
Reporting Season Analysis CBA For personal use only • FY24 Cash NPAT of $9,836m, down 2% from PCP. • Final Dividend 250c vs 240c last year, up 4.2%. • Payout Ratio 79% of FY24 Earnings. • Bad debts of 9bps (fell from 12bps in FY23), home loan arrears picking up but still low. Source: Plato 20
Slide 22: Reporting Season Analysis: CBA
Reporting Season Analysis CBA For personal use only Source: Plato 21
Slide 23: Reporting Season Analysis: JB Hi-Fi
Reporting Season Analysis JB HI-FI For personal use only • Earnings 4% above expectations. Driven by strong performance at JB Hi-fi Australia. • Final Dividend 183c total including 80c special dividend vs 115c last year • July sales growing strongly with management sounded confident: – JB Aust : up
Slide 24: Reporting Season Analysis: Insurers
Reporting Season Analysis INSURERS For personal use only • FY24 Cash earnings of $1,372m, up 17% in line with market • FY24 Cash earnings of $905m, up 100% with insurance margin expectations. Profit from general insurance up 29% and banking moving from 9.6% to 15.6%. down 20% (sold to ANZ). • Final
Slide 25: Reporting Season Analysis: BHP Group
Reporting Season Analysis BHP GROUP For personal use only • Solid FY24 Underlying NPAT of US$13.7b up 2% vs pcp, 1% above market expectations with strong cashflow. • Dividend declared was A$ (equivalent) 1.09 , 13% lower than last year which equates to an annual gross dividend yield of 7.6%. • Janse
Slide 26: Top dividend traps
TOP DIVIDEND TRAPS BE CAREFUL LOOKING AT HISTORICAL YIELD STOCK HIST. ANNUAL YIELD % DIVIDEND CUT (30 JUN 2024) For personal use only • Dividend Cuts: – Pilbara 100% 7.1% 18% – Magellan 49% – Perpetual 18% 15.5% 49% 6.5% 100% Source: Plato *Companies mentioned on this slide are illustrative only and
Slide 27: Dividend outlook within normal range
Dividend outlook within normal range AVERAGE % CHANCE OF DIVIDEND CUTS FOR AUSTRALIAN MARKET Div Cut Probability - Australia Dec 2001 - Aug 2024 For personal use only 50% 45% 40% 35% 30% Long term average 25% 20% 15% 10% 5% 0% Source: Plato, based on MSCI World IMI (Australian portion) 26
Slide 28: The income summary – Cautiously Optimistic
The income summary – Cautiously Optimistic For personal use only Caution: Interest rates rose rapidly but near their peaks Optimism: Dividends are still strong Active fund management critical in delivering income, total return & avoiding dividend traps 27
Slide 29: Thank you / Questions
For personal use only 28 THANK YOU Questions
Plato Income Maximiser — FY2024 Earnings Presentation on 6ix