Spheria Australian Smaller Companies Active ETF · ASX:SPHX
Spheria Australian Smaller Companies Active ETF — Spheria Emerging Companies — FY2024 Earnings Presentation
18 slides from Spheria Australian Smaller Companies Active ETF's earnings presentation, September 2024
Slide 1: Spheria Emerging Companies Limited FY24 Results & Portfolio Update
Spheria Emerging Companies Limited (ASX:SEC) FY24 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
SR HIERIA EMERGING COMPANIES SEC Company Update
Slide 5: FY24 Highlights
5 FY24 Highlights Yield FY24 Profit Company Performance1 Dividends2 Yield (including franking) $7.6m 6.9% 12.0c 5.4%3 7.7%4 • FY24 net profit after tax of $7.6m • Company Performance of 6.9%, -2.4% compared to benchmark5 of 9.3% (+1.9% p.a. to benchmark since inception) • Total quarterly dividends d
Slide 6: NTA breakdown for FY24
6 NTA breakdown for FY24 Portfolio performance less dividends paid leads to an increase in NTA per share • Pre-tax NTA increased by $0.033 from $2.198 at 30 June 2023 to $2.231 at 30 June 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 2.3% p.a. SEC Company performance SEC Limited Net Performance as at 31st July 2024 Period 1 month 3 month 1 year 3 year (pa) 5 year (pa) Since Inception (pa) Inception Date SEC Ltd. 6.7% 3.0% 9.7% 2.4% 7.3% 7.1% 30/11/2017 S&P/ASX Small
Slide 8: Dividends
8 Dividends Raised the dividend target 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
9 Significant improvement in the NTA Discount Higher dividends and Conditional Proposal help tighten the NTA discount Source: Spheria Emerging Companies, as at 30 June 2024
Slide 10: SEC Portfolio Update
SEC Portfolio Update SPH\ERIA
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 SEC Portfolio - Net Performance* since Inception 80.0% Spheria Index 60.0% Relative Performance 40.0% 20.0% 0.0% -20.0% -40.0% Nov-19 Mar-20 Jul-18 Jul-19 Nov-17 Nov-18 Mar-21 Mar-22 Mar-23 Mar-24 Jul-21 Jul-20 Jul-22 Jul
Slide 13: Stock Attribution – Top and Bottom
13 Stock Attribution – Top 10 and Bottom 10 Spheria Emerging Companies - Attribution - 12 Month - July 2024 3.00 2.50 2.00 1.50 1.00 0.50 0.00 -0.50 -1.00 -1.50 -2.00 -2.50 * Red Outline – companies we did not hold during the period Source : Bloomberg Data as at 31st July 2024
Slide 14: Top Holdings & Sector Exposure
14 Top 10 Holdings & Sector Exposure Spheria Emerging Companies Limited 30% Spheria Emerging Companies Limited 25% Ticker Company Name % Portfolio IRE IRESS Limited 4.9 20% HLS Healius 4.6 15% BGA Bega Cheese Ltd 4.4 SNL Supply Network 4.4 10% SGR The Star Ent Grp 3.7 5% MFG Magellan Fin Grp Ltd 3.6
Slide 15: NZME (ASX:NZM)
NZME (ASX:NZM) OneRoof could be worth more than the entire market value of NZME! Cash Flow Conversion (EBITA) OneRoof Revenue vs Domain adjusted for The "Domain" opportunity? 90 140% population/currency 80 $80 118% 120% 70 $70 100% 60 $60 50 80% $50 NZ NZ$m 40 recession $40 60% 30 $30 40% 20 $20 20%
Slide 16: Very attractive entry point
16 Very attractive entry point 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 July 2024. Cumulative performance
Slide 17: Key Themes
17 Key Themes • Australia appears to have entered a recession-like environment • Central Banks have started to cut rates (New Zealand, Canada, Switzerland, Eurozone) • Investors have deserted earnings risk leaving some sectors looking undervalued on LT basis • Short term earnings risk remains, howev
Slide 18: Questions
Questions SPH\ERIA
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