Argo Investments Limited · ASX:ARG
Argo Investments — Shareholder Meeting (October 2023)
25 slides from Argo Investments's shareholder meeting presentation, Oct 23, 2023
Slide 1: Annual General Meeting 2023
Annual General Meeting 2023
Slide 2: Disclaimer
Disclaimer This presentation has been prepared by Argo Service Company Pty Ltd (ASCO) (ACN 603 367 479) (Australian Financial Services Licence 470477), on behalf of Argo Investments Limited (ACN 007 519 520). ASCO’s Financial Services Guide is available on request or at argoinvestments.com.au. This
Slide 3: Board of Directors
Board of Directors Russell Higgins AO Jason Beddow Lianne Buck Peter Warne Non-executive Chairman Managing Director Non-executive Director Non-executive Director Melissa Holzberger Chris Cuffe AO Liz Lewin Non-executive Director Non-executive Director Non-executive Director
Slide 4: Our objective
Our objective To maximise long-term shareholder returns through reliable fully franked dividend income and capital growth. Actively managing a diversified portfolio of Australian shares with a low-cost, internally managed business model, we apply a conservative, long-term investment approach which h
Slide 5: 2023 overview
2023 overview Profit Earnings per share Full year dividends $271.7m $36.1c 34.5c $251.2m in 2022 34.3c per share in 2022 Fully franked per share (Excl. one-off, non-cash income) (Excl. one-off, non-cash income) 33.0c per share in 2022 Total assets MER Argo Shareholders $6.9b 0.155% 95,600 $6.4b in 2
Slide 6: Annual dividends cents per share
Annual dividends cents per share 34.5 35 33 33 30.5 31 31.5 29.5 30 30 28 28 25 20 15 10 5 0 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 Interim dividend Final dividend 7
Slide 7: Total returns
Total returns 13.5% 13.1% 11.8% 11.0% 9.1% 7.4% 6.7% 6.8% 6.1% 6.2% 5.6% 2.2% 1 year 3 years (pa) 5 years (pa) 10 years (pa) Total Shareholder Return (TSR) NTA after management expenses S&P/ASX 200 Accum. Index Figures above are to 30 September 2023. 8
Slide 8: Shareholder returns $10,000 invested
Shareholder returns $10,000 invested $54,044 $38,865 $18,026 Share price Plus dividends Plus franking Figures above are to 30 September 2023. 9
Slide 9: Roger Davis
Roger Davis BEc (Hons), MPhil (Oxon), FCPA Retired Non-executive Director 10
Slide 10: Peter Warne
Peter Warne BA (Actuarial Studies), FAICD Non-executive Director 11
Slide 11: Melissa Holzberger
Melissa Holzberger BA, LLB, LLM (Resources Law), Dip International Nuclear Law, GDLP, FGIA, GAICD Non-executive Director 12
Slide 12: Shareholder survey
Shareholder survey
Slide 13: Key survey findings
Key survey findings 97% 20+ yrs 10+ yrs Would recommend Argo One third have been Almost two thirds have been to other investors shareholders for 20+ years shareholders for 10+ years ‘Excellent’ or ‘Very good’ Diversified 95% Key findings 80% rated our engagement as Top reason for owning Argo shares:
Slide 14: Looking ahead
Looking ahead 15
Slide 15: Shareholder benefits
Shareholder benefits Low-cost, Experienced board and Long-term, proven internally managed management team investment approach Fully-franked, Strong balance Diversified and sustainable dividends sheet, no debt administratively simple 16
Slide 16: Share market performance
Share market performance 140 S&P/ASX 200 & Accumulation Index Before, during and post-pandemic 130 120 110 100 90 80 US Fed RBA First starts rate pauses 70 vaccine RBA starts rate rises rises released rate rises 60 Figures above are to 30 September 2023. 18
Slide 17: Australian equities by industry
Australian equities by industry Australian share market performance by industry 15% 3 months to 30 September 2023 Energy Consumer Discretionary 10% Financials Communication Services 5% Utilities Materials 0% Industrials Real Estate -5% Information Technology Consumer Staples -10% Health Care Source:
Slide 18: Investment portfolio
Investment portfolio Sector diversification Top 10 holdings Materials 15.7% Other Financials 12.8% Macquarie Group 6.5% Banks 12.4% BHP 6.1% Health Care 10.9% CSL 5.0% Consumer Staples 8.5% CBA 4.1% Telcos & I.T. 8.2% Wesfarmers 4.0% Energy 8.0% Rio Tinto 3.7% Industrials 7.5% ANZ 3.2% Consumer Disc
Slide 19: Recent portfolio movements
Recent portfolio movements Purchases Sales Since the end of the 2023 financial year. 21
Slide 20: Resmed (ASX code: RMD)
Resmed (ASX code: RMD) 12-month share price performance 40 35 Cents 30 25 20 15 Source: Factset 22
Slide 21: Reporting season
Reporting season
Slide 22: Consensus earnings
Consensus earnings Source: RIMES, IBES, Morgan Stanley Research. As at 31 August 2023. 24
Slide 23: Key takeouts
Key takeouts Cost of debt Dividends slightly Consumer escalating disappointing demand solid Global cyclicals Cost pressures Bad debts benefit from increasing remain low weak A$
Slide 24: Looking ahead
f Looking ahead
Slide 25: Slide 25
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