Washington H. Soul Pattinson And Company Limited · ASX:SOL
Washington H. Soul Pattinson And — Shareholder Meeting (December 2020)
25 slides from Washington H. Soul Pattinson And's shareholder meeting presentation, Dec 9, 2020
Slide 1: Welcome to the 118th Annual General Meeting
Welcome to the 118th Annual General Meeting
Slide 2: Welcome and Order of Proceedings
Welcome and Order of Proceedings 1. Welcome, Conduct of Meeting and how to participate at WHSP’s Virtual AGM 2. Chairman’s Address 3. CEO and Managing Director’s Presentation 4. Formal business and questions Board of Directors Robert Millner Todd Barlow Tiffany Fuller Michael Hawker AM Thomas Millne
Slide 3: Participating at this year's virtual AGM
Participating at this year’s virtual AGM To ask a question or to vote use the buttons at the bottom of your screen If you are experiencing any technical difficulties, please contact Advanced Share Registry on +61 (08) 6500 2114 ▪ Please provide your name and the item of business that your question r
Slide 4: Chairman's Address
Chairman’s Address 4
Slide 5: Steadily increasing dividends
Steadily increasing dividends WHSP is the only company in the All Ordinaries Index to have increased its dividend every year since 2000 20 year Total Ordinary Dividend history Compounded annual ▪ WHSP has resolved to pay an FY20 Final growth rate of 9.2% p.a. Dividend of 35cps, fully franked ▪ Total
Slide 6: Total shareholder returns – creating capital growth
Total shareholder returns – creating capital growth WHSP has significantly outperformed the index over 1, 5, 10, 15 and 20 years +1,351% Annualised TSRs 1 Year 5 Year 10 Year 15 Year 20 Year WHSP 33.6% 16.6% 12.2% 11.1% 14.3% All Ordinaries Accumulation Index (0.1%) 9.5% 8.1% 7.0% 8.1% Relative perf
Slide 7: Long-term total shareholder returns
Long-term total shareholder returns WHSP has provided outstanding equity returns over the last 40 years $1,000 invested in 1980 worth $216,470a Compound annual return of 14.4% for 50 years WHSP All Ords Accum Index Nov-1980 Nov-1985 Nov-1990 Nov-1995 Nov-2000 Nov-2005 Nov-2010 Nov-2015 Nov-2020 Cumu
Slide 8: Director Re-elections
Director Re-elections Josephine Sukkar was appointed to the Board during the year and offers herself for re-election at today’s meeting. Mrs Sukkar is Principal of Australian construction company Buildcorp, which she established with her husband 30 years ago. ▪ experienced public company director ha
Slide 9: Managing Director's Presentation
Managing Director’s Presentation 9
Slide 10: Overview - year ended July 2020
Overview - year ended 31 July 2020 Profit for the year Key performance indicators Net cash from Group Regular NPAT1 Group Statutory NPAT WHSP portfolio value investments2 $169.8m $953.0m $5.2b $252.3m down 44.7% up 284.3% 6.9% outperformance* up 48.8% ▪ Large non-regular gain from TPG uplift to mark
Slide 11: Portfolio overview
Portfolio overview Minor changes to the portfolio in the past 12 months – increasing cash and liquidity for future opportunities Value of WHSP’s Portfolio As at 30 November 2020 Holding Weighting Significant changes in last 12 months $m % Telecommunications Portfolio1 1,876 34.8% ▪ TPG merger with V
Slide 12: Covid-19
ro ANG Oy WHSP Yo, 1903 an arity Covid-19
Slide 13: Managing safe and continuous operations
Managing safe and continuous operations WHSP’s business model and operations showed resilience through COVID-19 ▪ Quickly responded with policies and practices to ensure health and safety of our staff ▪ Maintained productivity by implementing effective working from home procedures ▪ WHSP did not app
Slide 14: Resilience through volatility
Resilience through volatility WHSP has performed better than the All Ordinaries Index through COVID affected period Performance of WHSP v All Ords 1 Feb to 30 Nov 2020 40.0% +34.8% ▪ Since the start of 2H20 (1 February 2020), WHSP’s share price is up 34.8%. During 30.0% WHSP this period, the All Ord
Slide 15: Investment themes
Investment themes 15
Slide 16: Telecommunications
Telecommunications The telecommunications portfolio increased 27.6% in FY20 (including special dividend and Tuas demerger) TPG (ASX:TPG) ▪ Consumer staple - demand for products is robust in any part of the cycle ▪ Merger of equals creating a >$14.9b market cap telco (as at 31 July 2020) ▪ Growing de
Slide 17: Building products and industrial property
Building products and industrial property Brickworks is a diversified business that has delivered a total return of 12.3% pa since investing 52 years ago ▪ Brickworks has provided dividend stability over a long period of time ▪ Australian building products performed well despite challenging business
Slide 18: Energy
Energy Thermal coal prices have been impacted by COVID-19 but are recovering well Newcastle Thermal Coal (USD/tonne) – 12 months ▪ New Hope is a low cost producer – globally 80 competitive 70 ▪ Bengalla produced record tonnage in FY20 60 of 10.3 million tonnes (New Hope’s share is 50 8.3 million ton
Slide 19: Base metals
Base metals Round Oak is benefiting from increasing copper and zinc prices Copper (USD/lb) – 12 months 4.0 ▪ Industrial demand (Renewables, EVs, etc) driving 3.5 demand for commodities 3.0 ▪ Long term forecasts for supply deficits globally 2.5 (falling inventory levels) 2.0 ▪ ROM is geographically d
Slide 20: Financial Services
Financial Services Stronger equity markets are driving performance ▪ Assets include LICs, funds management and financial WHSP holding advice As at 30 November 2020 % ▪ 6.7% of the portfolio – as at 30 November BKI Investment Company (ASX: BKI) 8.5% ▪ Portfolio has increased 16.2% since 31 July 2020
Slide 21: Pharmaceuticals
Pharmaceuticals The pharmaceutical portfolio was resilient through COVID-19 ▪ Pharmaceutical portfolio was 5.8% of the total WHSP holding portfolio as at 30 November As at 30 November 2020 % ▪ Value of the portfolio has increased 9.7% since 31 July Australian Pharmaceutical Industries 19.3% 2020 (in
Slide 22: Emerging themes
Emerging themes WHSP continues to examine new long-term investment themes Agriculture Retirement and Aged Care ▪ Strong demand globally for good ▪ Continued to progress the quality Australian food products Cronulla development ▪ Global competitive advantage in ▪ Working with Provectus to agriculture
Slide 23: Outlook
ro ANG Oy WHSP Yo, 1903 an arity Outlook
Slide 24: FY21 outlook
FY21 outlook First 4 months (to 30 November 2020) Performance since FY20 (1 Aug to 30 Nov 2020) • Thermal coal price recovery – up 33% 40% • 1Q building products performance well above same period last All Ordinaries Index Coal (USD) 35% year Zinc (USD) Copper (USD) 30% • Copper and zinc prices incr
Slide 25: Terms and Definitions Disclaimer
Disclaimer Terms and Definitions Regular profit after tax is a non-statutory profit measure and represents profit from continuing operations before non-regular items. A reconciliation to 1 Group Regular NPAT statutory profit is included in the Annual Report, page 22. Net cash flows from investments
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