Plato Income Maximiser Ltd. · ASX:PL8

Plato Income Maximiser — FY2021 Earnings Presentation

26 slides from Plato Income Maximiser's earnings presentation, Sep 6, 2021

  1. Slide 1: Shareholder webinar reminder and presentation on full year results

    Plato Income Maximiser Limited (Company) Level 35, 60 Margaret Street Sydney NSW 2000 T: 1300 010 311 E: invest@plato.com.au For personal use only ABN 63 616 746 215 6 September 2021 By Electronic Lodgement Market Announcements Office ASX Ltd 20 Bridge Street SYDNEY NSW 2000 Dear Shareholder, Shareh

  2. Slide 2: Company Full Year FY2021 Results

    COMPANY FULL YEAR FY2021 RESULTS PLATO INCOME MAXIMISER LIMITED ASX: PL8 For personal use only 1

  3. Slide 3: Disclaimer

    Disclaimer Note: Past performance is not a reliable indicator of future performance. For personal use only 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 oth

  4. Slide 4: Agenda

    Agenda For personal use only 01 PL8 investment strategy and performance 02 Market update 03 Questions 3

  5. Slide 5: PL8 investment strategy and performance

    For personal use only PL8 investment strategy and performance 4

  6. Slide 6: FY2021 sees the revival of dividends

    FY2021 SEES THE REVIVAL OF DIVIDENDS COMPARED TO FY2020’S NEGATIVE IMPACT BY COVID-19 For personal use only • FY21 operating profit after tax of $73.0 million • Total dividends of $0.048 per share, equivalent to distributed yield of 6.2%1,4. Monthly full franked dividends increased 12.5% to $0.0045

  7. Slide 7: PL8 investment portfolio performance

    PL8 investment portfolio performance PERFORMANCE TO 30 JUNE 2021 AFTER FEES AND COSTS* For personal use only Since Half-Year 12 Months Inception p.a.** Including Franking (28/4/2017) Portfolio 11.9% 26.9% 10.5% S&P/ASX200 Tax 13.5% 29.1% 10.7% Exempt Active -1.6% -2.2% -0.2% *Inclusive of the net im

  8. Slide 8: PL8 delivering high income month realised yield

    PL8 delivering high income 12 month realised yield* For personal use only 7.0% 6.0% 5.0% 4.0% 3.0% 2.0% 1.0% 0.0% RBA Cash Rate S&P/ASX 200 PL8 CASH 0.2 3.1 4.3 FRANKING 0.0 1.0 1.9 *to 30 June 2021, Plato, Bloomberg 7

  9. Slide 9: Chart of Plato Income Performance

    Chart of Plato Income Performance For personal use only Plato Aust. Shares Income Fund v S&P/ ASX200 Accumulation Series (incl. Franking Credits) 3.30 2.80 2.30 1.80 1.30 0.80 Sep-2011 Sep-2012 Sep-2013 Sep-2014 Sep-2015 Sep-2016 Sep-2017 Sep-2018 Sep-2019 Sep-2020 Plato Australian Shares Income Fun

  10. Slide 10: Delivering consistent monthly income

    Delivering consistent monthly income INCREASED MONTHLY DIVIDENDS TO $0.0045 PER SHARE For personal use only MONTHLY DIVIDENDS PAID 0.6 0.5 0.4 0.3 0.2 0.1 0 Jul-18 Jul-19 Jul-20 Jul-21 Jun-20 Nov-17 Apr-18 May-18 Jun-18 Apr-19 May-19 Jun-19 Aug-18 Nov-18 Aug-19 Nov-19 Apr-20 May-20 Apr-21 May-21 Jun

  11. Slide 11: PL8 NTA performance breakdown for FY2021

    PL8 NTA performance breakdown for FY2021 PRE-TAX NTA PER PL8 SHARE* For personal use only + $0.223 - $0.001 - $0.048 $1.20 $1.133 $1.15 $1.10 $1.05 $1.00 $0.959 $0.95 $0.90 Pre-tax NTA Portfolio Company Dividends paid Pre-tax NTA 1 Jul 2020 performance expenses 30 Jun 2021 Source: Plato. *Excludes f

  12. Slide 12: Price has closely tracked NTA

    Price has closely tracked NTA PL8 PRICE VERSUS NTA SINCE LISTING For personal use only $1.40 $1.30 $1.20 $1.10 $1.00 $0.90 $0.80 May-17 Jul-17 Mar-18 May-18 Jul-18 Mar-19 May-19 Jul-19 Mar-20 May-20 Jul-20 Mar-21 May-21 Jul-21 Nov-17 Nov-18 Nov-19 Nov-20 Sep-17 Jan-18 Sep-18 Jan-19 Sep-19 Jan-20 Sep

  13. Slide 13: Market Update

    12 For personal use only Market Update

  14. Slide 14: RBA forecasts three years of record low 0.1% cash rate

    RBA forecasts three years of record low 0.1% cash rate OFFICIAL RBA CASH RATE EXPECTATIONS – EVEN LOWER FOR LONGER For personal use only RBA cash rate 8.00 7.00 6.00 5.00 4.00 3.00 2.00 1.00 0.00 Oct-2005 Jul-2006 Jul-2009 Jul-2012 Jul-2015 Oct-2017 Jul-2018 Jul-2021 Oct-2008 Oct-2011 Oct-2014 Oct-2

  15. Slide 15: Yields on all asset classes have fallen

    Yields on all asset classes have fallen BUT NOTE THE RECENT INCREASE For personal use only Plato Aussie Income Fund (gross normalised) S&P200 Gross CashRate 12 Mth Term Deposit 3yr BBB Credit 12.00% 10.00% 8.00% 6.00% 4.00% 2.00% 0.00% Aug-2015 Aug-2020 Jul-2013 May-2014 Jul-2018 May-2019 Oct-2014 M

  16. Slide 16: Tax effective buy-backs can be very advantageous

    Tax effective buy-backs can be very advantageous CBA BUYBACK – WORTH 14% AFTER TAX FOR ZERO TAX INVESTORS For personal use only • A$6bn off market buyback - >3.5% of shares on issue • Worth 14% for pensioners for every share successfully tendered • Possibly lower scale back given its profitability i

  17. Slide 17: Big Aussie income stocks doing it tough

    Big Aussie income stocks doing it tough! 6 STOCKS ACCOUNT FOR NEARLY HALF OF ALL DIVIDENDS For personal use only Price Performance % of Gross Dividend Income - FY21 1.30 1.20 1.10 BHP Group 1.00 Commonwealth Bank Fortescue Metals 0.90 ANZ National Australia Bank 0.80 Rio Tinto 0.70 Other 0.60 0.50 2

  18. Slide 18: Largest Contributors to Income

    Largest Contributors to Income YEAR TO 30 JUNE 2021 For personal use only Top 10 Contributors to Excess Income Investment Reasoning (Last 12mths) Excess Income Return Capital Income Stock Yield Run up Value Momentum Reasoning (%) (%) (%) (%) Increased yield, good total return, Fortescue Metals 0.49

  19. Slide 19: Largest Contributors to Active Performance

    Largest Contributors to Active Performance YEAR TO 30 JUNE 2021 For personal use only Top 10 Contributors To Active Performance (Last 12mths) Investment Reasoning Active Return Capital Income Stock Performance Yield Run up Value Momentum Reasoning (%) (%) (%) (%) Good business momentum and price sen

  20. Slide 20: Dividend Traps

    Dividend Traps YEAR TO 30 JUNE 2021 For personal use only Dividend Traps Investment Reasoning Div’d Cut Return Stock Date of Divd Yield Runup Value Momentum Reasoning (%) (%) Poor business momentum, suffering from Covid related Insurance Australia Aug-20 -100% -6.6 P O O write downs and business int

  21. Slide 21: Winning by not losing - avoiding dividend traps

    Winning by not losing - avoiding dividend traps AGL ENERGY UP TO 13% GROSS DIVIDEND YIELD For personal use only 20.00 14.00% 18.00 13.00% 16.00 12.00% Historical Yield (%) Price 14.00 11.00% 12.00 10.00% 10.00 9.00% 8.00 8.00% Price (LHS) Historical Gross Yield (RHS) 20

  22. Slide 22: Results season August 2021 - Dividends

    Results season August 2021 - Dividends EARNINGS UP AND DIVIDENDS EVEN MORE For personal use only • Over $38bn in dividends have been declared, $17bn more than last year and $10bn more than in 2019. 2020 AND 2021 CHANGE IN DIVIDENDS PCP • Strong dividend increases: Average Median* Mkt Cap Weighted Av

  23. Slide 23: Dividend Outlook

    Dividend Outlook LARGE DIVIDEND PAYERS For personal use only Good Bad Ugly Source: Plato, Bloomberg, S&P200 22

  24. Slide 24: Asset Class Outlook for Income

    Asset Class Outlook for Income FORECAST 12 MONTH INCOME AS AT 01/09/2021 For personal use only 31/12/2020 2/03/2021 1/09/2021 6% 5% 4% 3% 2% 1% 0% Official Overnight 10yr Aust Bonds Term Deposits* Company BB MSCI World ex REITs Aust Equities Cash Credit* Aust (Gross) Source: Plato, Bloomberg, *RBA T

  25. Slide 25: The income summary

    The income summary For personal use only Bad news: Interest rates to remain at historic lows – 2-3 years of bad news for retirees in term deposits Good news: Dividends are rebounding strongly – Plato dividend cut model returns to normal – Strong dividends from iron ore miners and banks – Take advant

  26. Slide 26: Thank you - Questions

    25 For personal use only THANK YOU Questions

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