Spheria Australian Smaller Companies Active ETF · ASX:SPHX
Spheria Australian Smaller Companies Active ETF — Spheria Emerging Companies — H1 FY2024 Earnings Presentation
17 slides from Spheria Australian Smaller Companies Active ETF's earnings presentation, March 2024
Slide 1: Spheria Emerging Companies Limited 1HFY24 Results & Portfolio Update
Spheria Emerging Companies Limited (ASX:SEC) 1HFY24 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
3 Agenda 1. SEC Company update 2. Portfolio update 3. Questions
Slide 4: SEC Company Update
Sal Lal 133 Uta EMERGING COMPANIES SEC Company Update
Slide 5: 1HFY2024 Highlights
5 1HFY2024 Highlights Yield 1HFY24 Profit Company Performance1 Dividends2 Yield (including franking) $8.6m 9.2% 5.6c 5.4%3 7.6%4 • 1HFY24 net profit after tax of $8.6m • Company Performance of 9.2%, +2.8% compared to benchmark5 of 6.4% (also +2.8% p.a. to benchmark since inception) • Total quarterly
Slide 6: NTA breakdown for 1HFY24
6 NTA breakdown for 1HFY24 Portfolio performance less dividends paid leads to an increase in NTA per share • Pre-tax NTA increased by $0.142 from $2.198 at 30 June 2023 to $2.340 at 31 December 2023 • Post-tax NTA as at 31 December 2023 was $2.305 per share, which was $0.035 lower than pre-tax NTA,
Slide 7: Performance History
7 Performance History Since inception Company outperformance of 2.7% p.a. SEC Company performance SEC Limited Net Performance as at 31st Jan 2024 Period 1 month 3 month FYTD 1 year 3 year (pa) 5 year (pa) Since Inception (pa) Inception Date SEC Ltd. 0.3% 23.2% 9.5% 7.7% 5.9% 8.6% 7.0% 30/11/2017 S&P
Slide 8: Dividends
8 Dividends Delivering on the dividend target of 5.0% p.a. (excl. franking) paid quarterly SEC Dividend History 6 5 5 Increase to 4 4 Quarterly dividends of 1% of post-tax NTA 1.25% post-tax 4 NTA 3.5 Cents per share 3 2.9 3 2.8 2.7 2.5 2.5 2.6 2.5 2.2 2.1 2.2 2.2 2 2 1 0 Dividend Payment Date
Slide 9: Solving the NTA Discount
9 ASX:SEC - Solving the NTA Discount Conditional proposal to exchange shares in SEC for units in Spheria Australian Smaller Companies Fund announced Source: Spheria Emerging Companies, as at 28 February 2024
Slide 10: SEC Portfolio Update
SEC Portfolio Update SPHERIA EMERGING COMPANIE s
Slide 11: Spheria Asset Management Investment Process
11 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 12: SEC Portfolio Performance
12 SEC Portfolio Performance Strong relative performance in the last two years * Net Portfolio performance = investment performance of mandate after investment management fees but before taxes. Source: Spheria Asset Management to 31st January 2024
Slide 13: SEC Portfolio - stock attribution
13 SEC Portfolio - stock attribution * Red Outline – companies we did not hold during the period Source : Bloomberg Data as at 31st January 2024
Slide 14: Top Company Holdings and Sector Exposure
14 Top 10 Company Holdings and Sector Exposure Source: IRESS, as at 31st January 2024. Companies mentioned on this slide are illustrative only and not a recommendation to buy or sell any particular security
Slide 15: Supply Network (ASX:SNL)
15 Supply Network (ASX:SNL) Under the radar • Truck and bus aftermarket spare parts distributor under Multispares brand in AU/NZ • No. 1 player in the market with 25 branches (20 in Australia, 5 in NZ) • Strong history of cash generation and re-investment at high ROIC • Revenue 14% and EBITA 20% CAG
Slide 16: Key themes
16 Key themes • Last year’s late rally has continued into this year, however, it has narrowed to the most popular (i.e most expensive) stocks in the small companies universe. • Takeover activity has continued with the strong share market backdrop firing-up acquirers. The relatively weak $AUD has als
Slide 17: Questions
Questions SPHERIA EMERGING COMPANIE s
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