Washington H. Soul Pattinson And Company Limited · ASX:SOL
Washington H. Soul Pattinson And — H1 2024 Earnings Presentation
21 slides from Washington H. Soul Pattinson And's earnings presentation, Mar 21, 2024
Slide 1: 1H24 Results
1H24 Results for the Half Year ended 31 January 2024 21 March 2024 SoulPatts.com.au
Slide 2: Presenters
Presenters Todd Barlow David Grbin Brendan O’Dea Chief Executive Officer & Chief Financial Officer Chief Investment Officer Managing Director SOL 1H24 Results 2
Slide 3: A diversified investment house that is unique in Australia
A diversified investment house that is unique in Australia Soul Patts aims to grow shareholder wealth through a diversified range of investments that can perform $11.5 b Total Portfolio through market cycles. Net Asset Value (pre-tax) Our team actively manage our portfolio of 200+ investments and ca
Slide 4: Our purpose is to generate enduring success
Our purpose is to generate enduring success How we How we approach investing measure success Long-term commitment 1 Increase cash generation we back businesses over the long term and from our portfolio of investments believe in the power of compounding returns and underpin dividend growth Strength o
Slide 5: Performance highlights
Performance highlights 1. Increase cash generation 2. Grow the portfolio 3. Manage investment risk Net Asset Value (pre-tax) per share Transaction activity ↑10.0% Interim dividend (fully franked) of 40 cps ↑11.1% vs pcp vs pcp 1 $2.4b $1.6b invested into public equities and interim dividend growth P
Slide 6: Continued dividend growth
Continued dividend growth Ordinary interim and final dividend increases for 24 consecutive years at a compound annual growth rate of 9.6% 1H24 interim dividend of 40 cents per share (fully franked), 11.1% higher than pcp • Record date: 18 April 2024 • Payment date: 10 May 2024 51 43 final dividend (
Slide 7: Consistent long-term performance
Consistent long-term performance Delivering capital and income growth directly to shareholders through sustainable growth in our share price and dividends Cumulative performance to 31 January 2024 (including reinvestment of dividends) • Soul Patts Total Shareholder Return has compounded at 12.4% per
Slide 8: Net Asset Value
Net Asset Value Net Asset Value (pre-tax) Over the 12 months to 31 January 2024 Portfolio Total Return (including dividends) was 13.3% 1H24 $11.5b 1 outperforming the Index by 6.0% ↑10.0% vs pcp 0.6 0.4 0.2 11.5 0.7 (0.5) $10.5b 10.5 (0.5) — 1H23 includes dividends paid 1H23 Strategic Private Emergi
Slide 9: Net Cash Flows From Investments
Net Cash Flows From Investments 1 Net Cash Flow From Investments Increase driven by Credit and Strategic Portfolios 1H24 $263.4m 33.1 12.9 263.4 ↑6.9% vs pcp 246.5 (14.9) (14.2) 1H23 $246.5m Credit Portfolio Strategic growth Portfolio contribution Large Caps rebalancing Lower realised trading gains
Slide 10: Group profit
Group profit 1H24 1H23 Lower profit contribution from Strategic partly offset by growth in Emerging and Credit Portfolios $302.5m $453.0m Statutory NPAT 475.7 (33.2)% vs pcp lower property $241.3m $475.7m contributions Regular NPAT (49.3)% vs pcp (181.1) lower realised 22.6 241.3 coal prices 64.9 22
Slide 11: Portfolio composition
Portfolio composition Positioned to withstand volatility in markets $5.9b • Portfolio valued at $11.5b • $1.1b additional investment across Strategic, Large Caps, and Emerging Companies Portfolios • $475.1m additional investment across Private Equity and Credit Portfolios • Net Working Capital decli
Slide 12: Strategic Investments
Strategic Investments Significant, long-term investments in largely uncorrelated listed companies that generate reliable cash flows 51% of total portfolio (vs 48% in 1H23) Portfolio delivered total return of 11.3% 1H24 1H23 1 Portfolio Value $5.9b $5.2b BKW Net Cash Flow From Investments $169.6m $15
Slide 13: Large Caps
Large Caps Actively managed Australian listed equities generating consistent income and capital growth over the long-term 21% of total portfolio (vs 28% in 1H23) Diversified Financials 1H24 1H23 Materials 1 Portfolio Value $2.4b $2.9b Net Cash Flow From Investments $47.8m $62.7m Industrials Consumer
Slide 14: Private Equity
Private Equity Long-term investments in unlisted companies with strategic M&A opportunities 12% of total portfolio (vs 8% in 1H23) Portfolio is flexible on deal structure and attracted 1H24 1H23 to growth stage companies 1 Portfolio Value $1.4b $810.2m Co-invest 5% Net Cash Flow From Investments $13
Slide 15: Private Equity (cont)
Private Equity (cont) New acquisition targeting vertical integration across our farmland assets The strategic acquisition of a large automated fruit processing and storage facility aims to deliver better control over processing efficiency and channel sales Valued at over $500m, Soul Patts Agricultur
Slide 16: Emerging Companies
Emerging Companies Exposure to fast growing companies often benefiting from structural changes and global trends 9% of total portfolio (vs 5% in 1H23) Exposure to profitable, developed businesses in 1H24 1H23 addition to growth-stage companies 1 Portfolio Value $990.9m $544.8m <$50m healthcare Net C
Slide 17: Credit
Credit Actively managed to achieve strong risk-adjusted returns Loan book is widely spread, mostly senior 6% of total portfolio (vs 5% in 1H23) secured, and diverse by industry 1H24 1H23 1 Portfolio Value $696.5m $483.4m Net Cash Flow From Investments $51.9m $18.8m real estate unsecured materials Un
Slide 18: Property Net Working Capital
Property Net Working Capital Direct property investments & equity Managing portfolio liquidity accounted joint ventures 1.0% of total portfolio (unchanged) 0% of total portfolio (vs 5% in 1H23) 1H24 1H23 1H24 1H23 1 2 Portfolio Value $110.9m $112.8m Net Working Capital $26.5m $476.6m Number of Inves
Slide 19: Increasingly active portfolio management
Increasingly active portfolio management Investment choices are unconstrained by market cap, industry, or type of capital Overview of total transaction activity equities $2.4b for the half $2.9b $3.1b (77% of FY23) private equity Lar credit Priv property $1.0b Acquisitions Disposals Acquisitions Dis
Slide 20: Glossary
Glossary Soul Patts presents certain Alternative Performance Measures, which are used by management to assess the performance of the business against its principal objective of maximising capital and income returns over the long-term. They are not a substitute for Australian Accounting Standard meas
Slide 21: Disclaimer
Disclaimer This document has been prepared by Washington H. Soul Pattinson (‘WHSP’). All information contained in this document (including this notice) (‘Information’) is confidential. By receiving the Information you are deemed to agree that you will hold the Information in strict confidence, and k
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