Spheria Australian Smaller Companies Active ETF · ASX:SPHX
Spheria Australian Smaller Companies Active ETF — Spheria Emerging Companies — H1 2025 Earnings Presentation
19 slides from Spheria Australian Smaller Companies Active ETF's earnings presentation, March 2025
Slide 1: Spheria Emerging Companies Limited 1HFY25 Results & Portfolio Update
Spheria Emerging Companies Limited (ASX:SEC) 1HFY25 Results & Portfolio Update
Slide 2: Disclaimer
Disclaimer Note: Past performance is not a reliable indicator of future Subject to any liability which cannot be excluded under the information is not intended as a securities recommendation or performance. relevant laws, SEC and Spheria disclaim all liability to any person statement of opinion in
Slide 3: Agenda
Agenda 3 1. SEC Company update 2. Portfolio update 3. Questions
Slide 4: SEC Company Update
Sali) bad 1a to EMERGING COMPANIES SEC Company Update
Slide 5: 1HFY25 Highlights
5 1HFY25 Highlights Yield (including 1HFY25 Profit Company Performance1 Dividends2 Yield franking) $10.8m 11.3% 7.0c 5.8%3 8.3%4 • 1HFY25 net profit after tax of $10.8m • Company Performance of 11.3%, +5.8% above benchmark5 of 5.5% (also +2.5% p.a. above benchmark since inception) • Total quarterly
Slide 6: NTA breakdown for 1HFY25
6 NTA breakdown for 1HFY25 Portfolio performance less dividends paid leads to an increase in NTA per share • Pre-tax NTA increased by $0.178 from $2.231 at 30 June 2024 to $2.409 at 31 December 2024 • Portfolio performance and dividends paid drive NTA changes. Source: Spheria Emerging Companies
Slide 7: Performance History
7 Performance History Since inception Company outperformance of 2.5% p.a. SEC Company performance SEC Limited Net Performance as at 31st January 2025 Period 3 month 1 year 3 year (pa) 5 year (pa) Since Inception (pa) Inception Date SEC Ltd. 5.2% 13.7% 5.4% 8.2% 7.9% 30/11/2017 S&P/ASX Small Ordinari
Slide 8: Dividends
8 Dividends Since Q2 2024, dividend target raised to 6.0% p.a. (excl. franking) paid at a quarterly rate of 1.5% of post-tax NTA
Slide 9: Significant improvement in the NTA Discount
Significant improvement in the NTA Discount 9 Higher dividends and Conditional Proposal help tighten the NTA discount Source: Spheria Emerging Companies, as at 31 January 2025
Slide 10: Reinstatement of condition proposal
10 Reinstatement of condition proposal • On 7th January 2025 – announced the results of the conditional proposal. • NTA discount over measurement period (Q4 2024) was 4.75% • This being <5% meant condition to undertake the proposal to convert to an open-end fund was not met • On 26th February 2025,
Slide 11: SEC Portfolio Update
SEC Portfolio Update SPHERIA EMERGING COMPANIE 5
Slide 12: Spheria Asset Management Investment Process
12 Spheria Asset Management Investment Process How our investment process is different 1. Focus on quality businesses with risk control overlay • Sustainable free cash flow generation through the cycle 2. Fundamental investment focus • Free cash flow valuation model • Lowly geared balance sheets (id
Slide 13: SEC Portfolio Performance
13 SEC Portfolio Performance Strong relative performance over the last 4 years SEC Portfolio - Net Performance* since Inception 100% Spheria Index 80% Relative Performance 60% 40% 20% 0% -20% -40% Jul-22 Jun-20 Nov-20 May-18 Apr-21 May-23 Dec-17 Aug-19 Aug-24 Mar-19 Jan-20 Sep-21 Feb-22 Dec-22 Mar-2
Slide 14: Stock Attribution – Top 10 and Bottom 10
14 Stock Attribution – Top 10 and Bottom 10 Spheria Emerging Companies - Attribution - 12 Month - January 2025 4% 3% 2% 1% 0% -1% -2% -3% * Red Outline – companies we did not hold during the period Source : Bloomberg Data as at 31st January 2025. Companies mentioned on this slide are illustrative on
Slide 15: Top Holdings & Sector Exposure
15 Top 10 Holdings & Sector Exposure Spheria Emerging Companies Limited Spheria Emerging Companies Limited 30% Ticker Company Name % Portfolio 25% SNL Supply Network 6.1 20% IFL Insignia Financial 5.0 DRR Deterra 4.7 15% HLS Healius 4.6 10% FBU Fletcher Building 4.2 5% SGM Sims Limited 3.9 IRE IRESS
Slide 16: Domain Holdings (ASX:DHG)
Domain Holdings (ASX:DHG) 16 Opportunity in a two-player market Cash Flow Conversion (EBITA) P/E Ratio Differential 120 120% 60 109% 55 100 100% 50 45 80 80% 40 P/E 35 60 60% 30 25 40 40% 20 20 20% 15 10 0 0% FY18A FY19A FY20A FY21A FY22A FY23A FY24A Free Cash Flow before Tax and Interest EBITA Cash
Slide 17: Very attractive entry point
Very attractive entry point 17 Global Smalls are very cheap in a historical context vs large caps EV/EBIT Difference between MSCI World Small vs Large 35% 30% 25% 20% 15% 10% 5% 0% -5% -10% -15% Difference Average +1s.d. -1s.d +2s.d. -2s.d Source: Bloomberg, to 31st December 2024. Cumulative perform
Slide 18: Key Themes
Key Themes 18 • Moderating inflation and lower rates should be supportive for cyclically exposed companies, many of which have been out of favour over the last few years. • Short term earnings risk remain; however, resumption of M&A activity seems likely. • Conclusion - One of the better LT entry po
Slide 19: Questions
Questions SPHERIA EMERGING COMPANIE s
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