Washington H. Soul Pattinson And Company Limited · ASX:SOL
Washington H. Soul Pattinson And — FY2018 Earnings Presentation
18 slides from Washington H. Soul Pattinson And's earnings presentation, Sep 20, 2018
Slide 1: Results Presentation
For personal use only Results Presentation 2 Business Overview DIVERSIFIED LONG TERM CONSERVATIVE PORTFOLIO INVESTOR AND VALUE FOCUSED OVER THE LAST 15 YEARS WHSP HAS CONTINUALLY DELIVERED A TSR OF INCREASED DIVIDENDS 13.0% PER ANNUM (growing at a compound (outperforming the All Ords annual growth r
Slide 2: Key Highlights Year Ended 31 July 2018
Key Highlights Year Ended 31 July 2018 For personal use only HIGHEST EVER PORTFOLIO VALUE1 FULLY FRANKED REGULAR PROFIT INCREASED BY DIVIDENDS OF $331m $972m 56cps up 17.4% up 21.8% to $5.4 billion 18th consecutive increase MARKET CAP GROWTH 12 MONTH TOTAL INVESTMENT IN WHSP AND DIVIDENDS ADDED SHAR
Slide 3: Portfolio Performance as at 31 July 2018
Portfolio Performance As at 31 July 2018 For personal use only WHSP’s Value of Gross portfolio Holding Holding value increased % $m 12 month movement 1.0 billion TPG Telecom 25.3% 1,350 * 45) 3.5%) 21.8% New Hope Corporation * 50.0% 1,326 533) 67.2%) (59.6% held 31 July 2017) Brickworks 43.9% 1,023
Slide 4: WHSP Total Shareholder Returns
WHSP Total Shareholder Returns as at 31 July 2018 For personal use only 1 3 Years 5 Years 10 Years 15 Years Annualised Returns Year p.a. p.a. p.a. p.a. WHSP 27.5% 20.5% 13.7% 11.3% 13.0% All Ord. Accum. Index 14.9% 8.4% 9.4% 6.9% 9.4% Out Performance 12.6% 12.1% 4.3% 4.4% 3.6% 7 WHSP Total Sharehold
Slide 5: Wealth Creation over years / 20 Year Dividend History
WHSP Total Shareholder Returns Wealth Creation over 40 years For personal use only $500,000 $450,000 $400,000 • $1,000 invested in 1978 $350,000 worth $484,310 in 2018 $300,000 • Compound annual return $250,000 of 16.7% for 40 years $200,000 $150,000 $100,000 Includes the re-investment of $50,000 di
Slide 6: TPG Telecom Limited
TPG Telecom Limited Year Ended 31 July 2018 For personal use only Associated entity 25.3% held Underlying EBITDA of $841.1m, up 0.7% Value of shareholding $1.35b Underlying NPAT of $432.6m, up 3.7% Contribution to WHSP profit $100.0m EPS 42.8 cents per share, down 3.3% Dividends paid to WHSP $
Slide 7: TPG Telecom Limited: Broadband Subscribers
TPG Telecom Limited Broadband Subscribers For personal use only FY18 net adds include: +300k NBN and +13k FTTB 13 TPG Telecom Limited Growth in data downloads from mobile devices TB of data downloaded per quarter Number of mobile subscriptions Source: ABS 14 7
Slide 8: TPG Telecom Merger with Vodafone Australia
TPG Telecom Limited Merger with Vodafone Australia For personal use only TPG announced “merger of equals” with Vodafone Australia on 30 August WHSP will have 12.6% shareholding post merger Highly complementary businesses Significant synergy potential Pre-merger special dividend to TPG shar
Slide 9: New Hope Corporation Limited
New Hope Corporation Limited EBITDA Comparison - before non-regular items For personal use only 17 New Hope Corporation Limited AUD Newcastle Thermal Coal Price 18 9
Slide 10: New Hope Ten year total dividends
New Hope Corporation Limited Ten year total dividends of $1.91 billion For personal use only $700 $400 $350 $300 $257.5 $250 $679.7 $215.9 $197.2 $200 $150 $131.8 $132.9 $99.7 $100 $78.9 $66.5 $49.9 $50 $- FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY2016 FY2017 FY2018 Ordinary Dividend Specia
Slide 11: New Hope Global coal power plants
New Hope Corporation Limited Global coal power plants For personal use only Operating: 1,829,983 MW Under construction: 209,566 MW Planned: 442,724 MW Source: CarbonBrief 21 Brickworks Limited Year Ended 31 July 2018 Associated entity 43.9% held Record underlying NPAT $223.7m, up 13.9% Value of sh
Slide 12: Brickworks Limited
Brickworks Limited Underlying earnings history by segment For personal use only 23 Brickworks Limited Detached Housing Building Approvals 12 month moving average Source: ABS 24 12
Slide 13: Industrial Property Trust / Financial Services Portfolio
Brickworks Limited Industrial Property Trust Value For personal use only 25 Financial Services Portfolio Value of Portfolio* $414m % held Contribution to WHSP profit $16.4m BKI Investment Company Limited 8.6 Dividends paid to WHSP $15.4m Contact Asset Management Pty. Limited 20.0 Ironbark Asset Mana
Slide 14: Australian Pharmaceutical Industries Limited
Australian Pharmaceutical Industries Limited For personal use only Associated entity 19.3% held Half Year Ended 28 February 2018 Value of shareholding $161m Underlying NPAT $26.8m, down 8% Contribution to WHSP profit* $9.3m NPAT $24.9m, down 14.4% Dividends paid to WHSP** $6.7m Fully franked i
Slide 15: Round Oak Minerals
Round Oak Minerals Copper, zinc and gold projects across Australia For personal use only 29 Round Oak Minerals Forecast copper supply shortages 30 15
Slide 16: Apex Healthcare Berhad
Apex Healthcare Berhad For personal use only Associated entity 30.3% held Half Year Ended 30 June 2018 Revenue $104.4m,up 0.2% (in MYR) Value of shareholding $83m on previous corresponding period Contribution to WHSP profit* $5.0m NPAT $9.0m, up 48.1% (in MYR) Dividends paid to WHSP $1.4m Inte
Slide 17: Active M&A to add value
Active M&A to add value Major transactions across WHSP and Group Companies For personal use only 33 Investment approach capitalises on our strengths Investments in cost competitive companies DISCIPLINED Discipline on operating costs and investment cost LONG TERM Counter-cyclical investments
Slide 18: Terms and Definitions
Terms and Definitions For personal use only Regular profit after tax is a non-statutory profit measure and represents profit from continuing operations before non- 1 Regular profit regular items. A reconciliation to statutory profit is included in the half year financial report – Note 3, Segment inf
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