Washington H. Soul Pattinson And Company Limited · ASX:SOL
Washington H. Soul Pattinson And — H1 2011 Earnings Presentation
25 slides from Washington H. Soul Pattinson And's earnings presentation, Mar 24, 2011
Slide 1: Chairman's introduction
For personal use only Good afternoon Ladies and Gentlemen, my name is Robert Millner and I am Chairman of Washington H. Soul Pattinson. 1
Slide 2: Consolidated Results
For personal use only Consolidated Results The Profit of the Group, after tax and before non-regular items, for the half year ended 31 January 2011, was $87 million, a decrease of 10% over the previous corresponding period. This decrease was mainly attributable to a reduced contribution from New Hop
Slide 3: Consolidated Results - continued
For personal use only Consolidated Results - continued The Profit after tax and non-regular items was $285 million, compared to $123 million for the first half last year. The net profit on non-regular items was $198 million. This was mainly due to the Group’s gain on the sale of Arrow Energy shares
Slide 4: Interim Dividend
For personal use only INTERIM DIVIDEND Directors have declared an interim dividend of 15 cents per share in respect of the half year ended 31 January 2011, which is an increase of 7.1% over last year’s interim dividend of 14 cents. The dividend will be fully franked and is payable on 12 May 2011. 4
Slide 5: Holding Company Equities
For personal use only Holding Company Equities WHSP’s listed equities, including controlled entities and associates, were valued at $4.13 billion as at 31 January 2011, compared to $4.07 billion at 31 July 2010. During the half year $4 million was invested in our associated company TPG Telecom Limit
Slide 6: Holding Company Equities (excluding controlled & associated entities)
For personal use only Holding Company Equities (excluding controlled & associated entities) Excluding controlled entities and associates, the market value of the listed equities held as at 31 January 2011 was $530 million, an increase of 13% compared to 31 July 2010. Dividend and distribution income
Slide 7: Holding Company Equities (excluding controlled & associated entities)
For personal use only Holding Company Equities (excluding controlled & associated entities) During the half year Choiseul Investments Limited merged with Milton Corporation Limited. This resulted in a disposal of the Company’s Choiseul shares for consideration of $42 million and the acquisition of M
Slide 8: Holding Company Equities (excluding controlled & associated entities)
For personal use only Holding Company Equities (excluding controlled & associated entities) Acquisitions other than Milton totalled $37 million and included; Exco Resources Limited Industrea Limited Snowball Group Limited and Lindsay Australia Limited. Proceeds from disposals other than Choiseul tot
Slide 9: Controlled Entities
For personal use only CONTROLLED ENTITIES New Hope Corporation Limited (59.7% held) New Hope has reported a net profit after tax and non-regular items of $407 million, this includes a non-recurring gain from the sale of its shares in Arrow Energy Limited of $326 million. The net profit after tax and
Slide 10: Controlled Entities - continued
For personal use only CONTROLLED ENTITIES New Hope Corporation Limited - continued The Directors of New Hope have declared an interim dividend of 5.25 cents per share fully franked, up from 5 cents per share last year. New Hope contributed a net profit of $244 million to the Group, up from $67 milli
Slide 11: New Hope - continued
For personal use only New Hope Corporation Limited - continued Total clean coal production for the half year was 2.8 million tonnes. This was 2% lower than for the first half last year due to heavy rain in late 2010 and January 2011. Total sales for the half year were 3 million tonnes an increase of
Slide 12: New Hope - continued
For personal use only New Hope Corporation Limited - continued 12
Slide 13: New Hope - continued
For personal use only New Hope Corporation Limited - continued New Hope’s port facility exported 3.5 million tonnes of coal during the half year, an increase of 6% compared to last year and continues to operate essentially demurrage free. The expansion of the facility was completed, under budget, in
Slide 14: New Hope - Exploration and Coal to Liquids
For personal use only New Hope Corporation Limited - continued Exploration New Hope’s exploration strategy is directed toward evaluating both open cut and underground coking coal resources in Central Queensland and open cut thermal coal in South East Queensland. Coal to Liquids During the period New
Slide 15: New Hope - Arrow Energy and Northern Energy
For personal use only New Hope Corporation Limited - continued Arrow Energy Limited Under a demerger and acquisition scheme New Hope sold its 17% interest in Arrow Energy Limited in August 2010 and recognised an after tax profit of $326 million during the half year. Northern Energy Limited In late 2
Slide 16: New Hope - Outlook
For personal use only New Hope Corporation Limited - continued Outlook New Hope has advised that its result for the second half of 2011 will be negatively impacted by the flood damaged rail line between the New Acland mine and the port. The extent of the impact is dependent upon: When the line is re
Slide 17: Associated Entities - API
For personal use only Associated Entities Australian Pharmaceutical Industries Limited (24.6% held) For the year ended 31 August 2010 API reported total revenue of $3.7 billion, up 5% on the prior year and net profit after tax of $23 million, up 24%. API paid a final fully franked dividend of 1.5 ce
Slide 18: Brickworks Limited
For personal use only Brickworks Limited (44.5% held) Brickworks’ net profit after tax and before non-regular items for the half year ended January was $61 million, up 7% on the first half last year. Brickworks’ net profit after tax and non-regular items was $117 million, up 33%. These results inclu
Slide 19: Brickworks - Land and Development
For personal use only Brickworks Limited - continued Land and Development The Land and Development Division recorded an EBIT of $21 million for the half year, an increase of 68% on the first half last year. Of this, property sales contributed an EBIT of $15 million from the sale of two lots on the M
Slide 20: Clover Corporation Limited
For personal use only Clover Corporation Limited – (28.6% held) Clover reported a net profit after tax for the first half ended 31 December 2010 of $2 million up slightly on last year. Sales were $14 million, down $2 million on the same period last year due to customers deferring sales from December
Slide 21: Ruralco Holdings Limited
For personal use only Ruralco Holdings Limited – (23.5% held) For the year ended 30 September 2010 Ruralco reported total revenue of $903 million, an increase of 8% over the prior year. Net profit after tax, attributable to shareholders, was $12 million, an increase of 43% over the prior year. A ful
Slide 22: TPG Telecom Limited
For personal use only TPG Telecom Limited (26.7% held) TPG reported earnings before interest, tax, depreciation and amortisation of $113 million and a net profit after tax of $34 million for the half year ended 31 January 2011. These results represent increases of 47% and 23% respectively compared t
Slide 23: TPG Telecom
For personal use only TPG Telecom Limited - continued A working capital adjustment and an abnormally high final tax instalment for FY 2010 restricted TPG’s debt reduction to $30 million in the half, however underlying cash flow remains very strong. The combination of earnings growth and debt repayme
Slide 24: TPG Telecom Outlook
For personal use only TPG Telecom Limited - continued Outlook TPG has upgraded its 2011 financial year EBITDA guidance from between $215 and $225 million to between $225 and $230 million. 24
Slide 25: A Diversified Investment House
Washington H Soul Pattinson & Company Limited “A Diversified Investment House” @& WHSP — Investments & Share Portfolio api API— Wholesale & Retail Pharmaceuticals BRICKWORKS Brickworks — Brick & Tile Manufacturing cisver Clover — Food Technology ie New Hope — Coal PCP - Corporate Advisory Ruralco —
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