AMCIL Limited · ASX:AMH
AMCIL — Shareholder Meeting (October 2020)
30 slides from AMCIL's shareholder meeting presentation, Oct 8, 2020
Slide 1: 2020 Annual General Meeting Presentation
8 October 2020 For personal use only The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 Electronic Lodgement AMCIL Limited 2020 Annual General Meeting Presentation Dear Sir / Madam Please find attached a presentation that will
Slide 2: Annual General Meeting 2020 Presentation
For personal use only Annual General Meeting 2020 Presentation
Slide 3: Presentation Agenda
Presentation Agenda For personal use only • Our Purpose and Approach (Mark Freeman) • Financial Results (Andrew Porter) • Market Conditions and Portfolio Performance (Alison Gibson) • Closing Comments (Mark Freeman) Annual GeneralMeeting Annual General Meeting 2019 2020 11
Slide 4: Disclaimer
Disclaimer AMCIL Limited and Australian Investment Company Services Limited (AFSL: 303209) For personal use only and each of their respective directors, officers and agents (together the Disclosers) have prepared the information contained in these materials in good faith. However, no warranty (expre
Slide 5: Our Purpose and Approach
For personal use only Our Purpose and Approach Annual GeneralMeeting Annual General Meeting 2019 2020 13
Slide 6: AMCIL – Our Purpose and Approach
AMCIL – Our Purpose and Approach For personal use only Purpose To deliver returns from Australian and New Zealand equities which exceed the market over the medium to long term through strong capital growth and the generation of fully franked dividends. Approach High Quality Above Focused Both Larger
Slide 7: AMCIL's Investment Approach – focus on investing in quality companies
AMCIL’s Investment Approach – focus on investing in quality companies that can grow over the long term High Quality companies: For personal use only Have a leadership position in their industry (or developing one) Have a sustainable competitive advantage and/or unique assets Reinvest to defend
Slide 8: Sector Weight Positions in AMCIL – Very Different to the ASX 200 Index
Sector Weight Positions in AMCIL – Very Different to the ASX 200 Index For personal use only As at 30 September 2020 Annual GeneralMeeting Annual General Meeting 2019 2020 16
Slide 9: Portfolio return against the S&P/ASX 200 Index since recapitalisation
Portfolio return (including franking*) against the S&P/ASX 200 Index, with franking, since recapitalisation in January 2004 return For personal use only 12.9% pa return 9.4% pa *Assumes an investor can fully utilise the franking credits Annual GeneralMeeting Annual General Meeting 2019 2020 17
Slide 10: Financial Results
For personal use only Financial Results Annual GeneralMeeting Annual General Meeting 2019 2020 18
Slide 11: Financial Year in Summary
Financial Year in Summary For personal use only Dividend policy is to maximise the distribution of available franking credits (from dividends received and realised capital gains) each financial year. As a result the amount of fully franked dividends are likely to fluctuate from year to year. Annual
Slide 12: Market Conditions and Portfolio Performance
For personal use only Market Conditions and Portfolio Performance Annual GeneralMeeting Annual General Meeting 2019 2020 20
Slide 13: COVID-19 drove a significant pull back in the market followed by a quick reversal
COVID-19 drove a significant pull back in the market followed by a quick reversal For personal use only Source: FactSet Annual GeneralMeeting Annual General Meeting 2019 2020 21
Slide 14: COVID-19 has led to a large drawdown in GDP and company earnings
COVID-19 has led to a large drawdown in GDP and company earnings For personal use only A Century of Australian real GDP Growth EPS growth fell 38% for the average stock, the weakest since the GFC (-20%) Early 1980’s & 1990’s WW1& Recessions WW2 Spanish demobilisation Flu Great Coronavirus pandemic D
Slide 15: Large fiscal easing has supported the economy
Large fiscal easing has supported the economy and lock-downs have altered consumer spending patterns For personal use only Fiscal Easing* in Response to Coronacrisis Year-on year % change in real household consumption 2Q 2020 *Discretionary policy actions taken since the outbreak that lead to higher
Slide 16: AMCIL's focus on quality delivered outperformance during COVID-19 uncertainty
AMCIL’s focus on quality delivered outperformance during COVID-19 uncertainty For personal use only In March we said: Outcome / Actions: Quality owner/drivers provided outperformance: Quality tends to outperform in difficult economic Top 5 were Objective Corporation, Macquarie conditions Telecom, Ne
Slide 17: Focusing on Quality Stocks - Portfolio Performance to end September 2020
Focusing on Quality Stocks - Portfolio Performance to end September 2020* For personal use only Annual GeneralMeeting Annual General Meeting 2019 2020 25
Slide 18: Portfolio outperformance led by long-term, high quality holdings
Portfolio outperformance led by long-term, high quality holdings Smaller Companies For personal use only Larger Companies Annual GeneralMeeting Annual General Meeting 2019 2020 26
Slide 19: Quality companies impacted by recent economic conditions
Although, some quality companies with a strong competitive advantage in the portfolio have been impacted by recent economic conditions For personal use only Annual GeneralMeeting Annual General Meeting 2019 2020 27
Slide 20: Market volatility provided opportunity to redistribute capital
Market volatility provided opportunity to redistribute capital For personal use only Exited holdings with quality and/or growth concerns… … and trimmed/exited winners To invest in high quality companies… Annual GeneralMeeting Annual General Meeting 2019 2020 28
Slide 21: Market sell off provided opportunities to invest in high quality companies
Market sell off provided opportunities to invest in high quality companies at attractive prices For personal use only $260 $10 $240 $9 $220 $8 $200 $7 $180 $6 AMCIL purchase AMCIL average $5 $160 $140/share purchase ~$5.90/share $140 $4 09/17 01/18 05/18 09/18 01/19 05/19 09/19 01/20 05/20 09/20 09/
Slide 22: Top 10 Overweight Positions
AMCIL Portfolio remains well positioned in quality companies - Top 10 Overweight Positions For personal use only Emerging leader in logistics solutions globally. Unique owner/driver culture which enables long term view of investment. Mainfreight has navigated COVID-19 challenges well, with solid mar
Slide 23: Top 10 Overweight Positions continued
AMCIL Portfolio remains well positioned in quality companies - Top 10 Overweight Positions continued For personal use only Bunnings (60% of Wesfarmers) has a dominant market position as the leading DIY retailer. Lowest cost and scale provide competitive advantage which drive growth and generate attr
Slide 24: Top Investments as at September 2020 (excluding cash)
Top 20 Investments as at 30 September 2020 (excluding cash) For personal use only Focused Portfolio Rank Company % of Portfolio – 34 Holdings in Total 1 CSL 9.4% 2 BHP 5.8% 3 Wesfarmers 5.5% 4 Mainfreight 5.1% 5 Transurban 4.6% 6 Macquarie Group 4.5% 7 Woolworths Group 4.0% 8 Carsales.com 3.7% 9 Mac
Slide 25: Top Investments as at September 2020 (excluding cash) continued
Top 20 Investments as at 30 September 2020 (excluding cash) continued For personal use only Focused Portfolio Rank Company % of Portfolio – 34 Holdings in Total 11 ARB Corporation 3.3% 12 National Australia Bank 3.3% 13 Reece 3.2% 14 James Hardie Industries 3.2% 15 Sydney Airport 3.0% 16 Ramsay Heal
Slide 26: Closing Comments
For personal use only Closing Comments Annual GeneralMeeting Annual General Meeting 2019 2020 34
Slide 27: Closing comments
Closing comments For personal use only Long term structural trends arising from COVID-19? Low interest rates to remain low for some time Election in the US Australia / China relations Valuations likely to remain stretched but opportunities will arise SPP announced today Annual GeneralMee
Slide 28: Share price to net asset backing per share
Share price to net asset backing per share For personal use only Annual GeneralMeeting Annual General Meeting 2019 2020 36
Slide 29: Details of Share Purchase Plan (SPP) Announced October
Details of Share Purchase Plan (SPP) Announced 8 October For personal use only • Up to a maximum of $30,000 per registered shareholder. • Shares issued under the SPP will rank equally for future dividends. • Price is the maximum of 97 cents per share or the price determined by the volume weighted av
Slide 30: For personal use only
A/ACIL Ajuo asn peuosied 104