AMCIL Limited · ASX:AMH
AMCIL — Shareholder Meeting (October 2023)
28 slides from AMCIL's shareholder meeting presentation, Oct 12, 2023
Slide 1: 2023 Annual General Meeting Presentation
12 October 2023 The Manager ASX Market Announcements Australian Securities Exchange Exchange Centre Level 4 20 Bridge Street Sydney NSW 2000 For personal use only Electronic Lodgement AMCIL Limited 2023 Annual General Meeting Presentation Dear Sir / Madam The following presentation will be delivered
Slide 2: Annual General Meeting October 2023
Annual General Meeting For personal use only October 2023
Slide 3: Disclaimer
Disclaimer For personal use only AMCIL Limited and Australian Investment Company Services Limited (AFSL: 303209) 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 4: Agenda
Agenda For personal use only Our Purpose and Approach Mark Freeman Financial Year in Summary Andrew Porter Equity Market Conditions Mark Freeman Portfolio Performance and Activity Mark Freeman and Jaye Guy Features of the AMCIL Portfolio Mark Freeman Outlook Mark Freeman Annual General Meeting / Oct
Slide 5: Our Purpose and Approach
For personal use only Our Purpose and Approach Annual General Meeting / October 2023 4
Slide 6: The Key Unique Benefits of an Investment in AMCIL
The Key Unique Benefits of an Investment in AMCIL For personal use only The key unique benefits of AMCIL are the combination of: Focused portfolio invested in quality companies where holding size is not determined by the index weighting Alignment of interests Comparatively low management cost No
Slide 7: The Key Unique Benefits of an Investment in AMCIL
The Key Unique Benefits of an Investment in AMCIL For personal use only Attributes of a high-quality company Why this matters: that we seek: The presence of these factors drives a Industry leadership position (or developing one) competitive advantage Unique assets that are hard to replicate Which le
Slide 8: Financial Year in Summary
For personal use only Financial Year in Summary Annual General Meeting / October 2023 7
Slide 9: Financial Year in Summary
Financial Year in Summary For personal use only # Includes the non-cash BHP Petroleum/Woodside merger dividend of $2.0 million in 2022. ^ Includes 1 cent per share interim dividend. Annual General Meeting / October 2023 8
Slide 10: Share Price Premium/(Discount) to NTA
Share Price Premium/(Discount) to NTA For personal use only Annual General Meeting / October 2023 9
Slide 11: Equity Market Conditions
For personal use only Equity Market Conditions Annual General Meeting / October 2023 10
Slide 12: Market Conditions
Market Conditions For personal use only Economies (and consumers) have held up better than expected but… Signs are emerging that activity is slowing Inflation is easing albeit mixed • Capex inflation is widespread, supply chain pressures are abating and wage inflation remains elevated • Companies wi
Slide 13: Equity Market Valuation (Australia) – A Long Term Perspective
Equity Market Valuation (Australia) – A Long Term Perspective For personal use only Price/Earnings indicates fair value though on historically high margins Price / Sales Price / Book 1.99 1.89 Average 1.90 Source: FactSet. Annual General Meeting / October 2023 12
Slide 14: Equity Market Valuation (United States) – A Long Term Perspective
Equity Market Valuation (United States) – A Long Term Perspective For personal use only Price / Sales Price / Book 3.71 2.30 Average 1.71 Source: FactSet. Annual General Meeting / October 2023 13
Slide 15: Equity Market Returns – A Long Term Perspective
Equity Market Returns – A Long Term Perspective GFC For personal use only -51% Eastern Aust Poseidon Drought COVID-19 Bubble -37% -33% -35% Korean War Black -34% Monday World War II -44% -22% ‘73–’74 8.9% Crash ASX All Ordinaries Accumulation -58% Index CAGR since 1992 (inception) Source: FactSet. A
Slide 16: Portfolio Performance and Activity
For personal use only Portfolio Performance and Activity Annual General Meeting / October 2023 15
Slide 17: Portfolio Performance – Per Annum
Portfolio Performance – Per Annum Returns to 30 September 2023 For personal use only AMCIL’s Investment Objectives Attractive returns through strong capital growth in the portfolio over the medium to long term The generation of fully franked dividends. Annual General Meeting / October 2023 16
Slide 18: Portfolio Activity – 2023 Calendar Year to Date
Portfolio Activity – 2023 Calendar Year to Date For personal use only Exited Reduced Added New (Purchased and Exited) Annual General Meeting / October 2023 17
Slide 19: Our Investment Philosophy in Practice – New Positions
Our Investment Philosophy in Practice – New Positions For personal use only Outbound internationally mobile students (all countries)* Global market leader in English language testing and International Student Placements. Highly credentialed, backable management. 7.1% 22 Year CAGR (IDP source countri
Slide 20: Our Investment Philosophy in Practice – New Positions
Our Investment Philosophy in Practice – New Positions For personal use only Difficult to replicate market positions in Registry Maintenance, Employee Share Plans and Governance Services. Backable management with focus on the core business and maintaining discipline with acquisitions. Balance sheet i
Slide 21: Our Investment Philosophy in Practice – New Positions
Our Investment Philosophy in Practice – New Positions For personal use only Established smaller positions Common characteristics in the following: Leading tech offering in specialist areas – Circuit Board Design, Accounting, Logistics Aligned, backable management teams Attractive growth opportunity
Slide 22: Features of the AMCIL Portfolio
For personal use only Features of the AMCIL Portfolio Annual General Meeting / October 2023 21
Slide 23: AMCIL's Portfolio Diversification
AMCIL’s Portfolio Diversification A spread of high quality of small and large businesses operating across different sectors For personal use only and geographies gives us long term confidence across a variety of possible equity market and economic conditions. Annual General Meeting / October 2023 22
Slide 24: Recent reporting season delivered strong results
Recent reporting season delivered strong results For personal use only Growth Companies Stalwart Companies Income Companies The following holdings have different reporting periods Annual General Meeting / October 2023 23
Slide 25: Some companies have experienced share price weakness
Some companies have experienced share price weakness For personal use only • Market concerns: margin recovery post-COVID, new competing product (Industry Headwinds), and rationale of latest acquisition. • CSL remains a very high quality business with an attractive growth outlook. • Market worried ab
Slide 26: Outlook
For personal use only Outlook Annual General Meeting / October 2023 25
Slide 27: Outlook
Outlook For personal use only Key questions on our minds: While AMCIL is not immune to external risks, our approach positions the portfolio to weather market volatility: What are the likely effect of higher Continued focus on quality companies interest rates on the economy, and stock Seeking t
Slide 28: For personal use only
For personal use only