Salter Brothers Emerging Companies Ltd. · ASX:SB2
Salter Brothers Emerging Companies — Investor Presentation (April 2025)
18 slides from Salter Brothers Emerging Companies's investor presentation, Apr 15, 2025
Slide 1: Webinar - Salter Brothers Emerging Companies Limited
WEBINAR For personal use only SA LTE R B ROTH E R S EMERGING COMPANIES LIMITED (ASX CODE: SB2)
Slide 2: Disclaimer
DISCLAIMER Important – General information and disclaimer warranty or assurance (express or implied) is given that the occurrence of the events expressed or implied in any forward-looking statements in this document will actually occur. Actual operations, results, performance, This information conta
Slide 3: Contents
CONTENTS 1. Executive Summary 2. Economic Fundamentals - Tariffs For personal use only 3. Economic Fundamentals - Circular Flow of Income 4. US Tariffs Outlook 5. The Global Response 6. The Impact on Australia 7. Market Valuations 8. Historical Market Declines and Recovery 9. What does this mean for
Slide 4: 1. Executive Summary
1. EXECUTIVE SUMMARY › Salter Brothers is a global alternative investments manager with over A$4B of group assets under management. For personal use only › Salter Brothers Emerging Companies Limited (ASX–SB2) is a listed investment company (LIC) dedicated to investing in small cap Australian compani
Slide 5: 1. Executive Summary (cont.)
1. EXECUTIVE SUMMARY (CONT.) › In light of the recent extreme volatility and the broad- based sell-off in global equity markets, we undertake a For personal use only review of fundamental economic principles, current tariff developments, and their potential ramifications for global economies and equ
Slide 6: 2. Economic Fundamentals - Tariffs
2. ECONOMIC FUNDAMENTALS - TARIFFS › Definition - A tariff is a tax or duty imposed on Economic Effects of Tariffs imported goods. For personal use only › Consumers will import goods when the world price Price Domestic Domestic for a good + tariff is below the domestic price Demand Supply (Goods mad
Slide 7: 3. Economic Fundamentals - Circular Flow of Income
3. ECONOMIC FUNDAMENTALS - CIRCULAR FLOW OF INCOME Expenditure (E) For personal use only Output (O) Firms Households Resources Income (Y) Leakages Injection Investment (I) Savings (S) Financial Sector Goverment Spending (G) Taxation (T) Government Sector Exports (X) Imports (M) Overseas S A LT E R B
Slide 8: 4. US Tariffs Outlook
4. US TARIFFS OUTLOOK US tariffs announced › The US government imposed a 10% tariff on all countries which took effect on 5 April 2025. For personal use only › The US has since imposed individualised reciprocal higher tariffs to 60 countries in which the US have their highest trade deficits. As at w
Slide 9: 5. The Global Response
5. THE GLOBAL RESPONSE › As the world adjusts to the uncertainty caused by Trump’s daily tariff announcements other policy instruments will For personal use only need to be called upon including: • Monetary policy likely to be the next instrument to respond to the tariffs after trade policy, with in
Slide 10: 6. The Impact on Australia
6. THE IMPACT ON AUSTRALIA › The US tariff regime should have little material effect on the Australian economy. Australia’s export exposure to America is limited, with it making up only a 4.6% export share in 2024. For personal use only › The bigger risk to Australia is the ripples, both global and
Slide 11: 7. Market Valuations
7. MARKET VALUATIONS 12-month Forward PE – ASX 200 12-month Forward PE – S&P 500 For personal use only 12-month Forward PE – ASX Small Ordinaries S A LT E R B R O T H E R S | E M E R G I N G C O M PA N I E S L I M I T E D | A P R I L 2 0 2 5 1 1
Slide 12: 8. Historical Market Declines & Recovery
8. HISTORICAL MARKET DECLINES & RECOVERY › Recent market volatility has highlighted a notable divergence in small-cap equities on the US market, which initially rallied amid earlier policy For personal use only shifts favouring domestic growth but have since faced significant pressure. Following hei
Slide 13: 9. What Does This Mean for Australian Small Caps
9. WHAT DOES THIS MEAN FOR AUSTRALIAN SMALL CAPS › The economic outlook remains balanced and recent share price sell off has balanced the risk versus reward equation: For personal use only • impact to domestic GDP growth and inflation is modest; • we are likely to see accelerated and meaningful cuts
Slide 14: 10. SB2 Exposure to Tariffs
10. SB2 EXPOSURE TO TARIFFS Majority of the Portfolio largely unaffected. For personal use only ACF - Potential benefits from Australian fiscal response and decline in interest rates. CLG - Increase in market price for restored goods, limited tariff impact as good qualify for USMCA. BOT - Minimal im
Slide 15: 11. SB2 Performance
11. SB2 PERFORMANCE › The Salter Brothers Emerging Performance ASX Emerging Companies Portfolio continues to For personal use only Summary# SB2 Companies Index* Difference deliver strong performance, achieving a 12-month return of 17.98% as of 31 March.This result outperforms the 1 Month -3.00% -1.9
Slide 16: 12. SB2 Portfolio Positioning
12. SB2 PORTFOLIO POSITIONING Key Holdings Market Cap Sector Company Description 1. Alfabs Australia Ltd Construction & Provides a design-to-delivery solution for its clients across heavy steel fabrication, construction and $100m (ASX:AAL) Engineering maintenance services, mining equipment, protecti
Slide 17: Q&A
For personal use only Q&A Q&A S A LT E R B R O T H E R S | E M E R G I N G C O M PA N I E S L I M I T E D | A P R I L 2 0 2 5 1 7
Slide 18: Contact Us
CONTACT US Gregg Taylor Head Office Investment Director Level 9, 477 Collins St For personal use only & Head of Equities Melbourne VIC 3000 Australia E | gregg.taylor@salterbrothers.com.au Sydney Office Level 36, 264 George St Sydney NSW 2000 Yossi Kraemer Australia Brisbane Office Co‑head Capital P
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