2019 ANNUAL GENERAL MEETING 21 OCTOBER 2019 DISCLAIMER This - - PowerPoint PPT Presentation

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2019 ANNUAL GENERAL MEETING 21 OCTOBER 2019 DISCLAIMER This - - PowerPoint PPT Presentation

Jan 05, 2023 297 likes •613 views

2019 ANNUAL GENERAL MEETING 21 OCTOBER 2019 DISCLAIMER This presentation has been prepared by Argo Service Company Pty Ltd (ASCO) (ACN 603 367 479) (Australian Financial Services Licence 470477), on behalf of Argo Investments Limited (ACN 007 519

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2019 ANNUAL GENERAL MEETING

21 OCTOBER 2019

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This presentation has been prepared by Argo Service Company Pty Ltd (ASCO) (ACN 603 367 479) (Australian Financial Services Licence 470477), on behalf of Argo Investments Limited (ACN 007 519 520). ASCO’s Financial Services Guide is available on request or at www.argoinvestments.com.au. This presentation contains unsolicited general information only, which does not take into account the particular

  • bjectives, financial situation or needs of any individual investor. It is not intended to be passed on or relied upon as a

recommendation by any person. Before making any decision about the information provided, an investor should consult their independent adviser and consider the appropriateness of the information, having regard to their objectives, financial situation and needs. Past performance may not be indicative of future performance and no guarantee of future returns is implied or given. While all reasonable care has been taken when preparing this presentation, no responsibility is accepted for any loss, damage, cost or expense resulting directly or indirectly from any error, omission or misrepresentation in the information presented.

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Argo Investments Limited

ACN 007 519 520

DISCLAIMER

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2019 FULL YEAR PROFIT

$292.7m

profit

33c

annual dividends

17c

final dividend fully franked

+33.7%

increase in profit

4c

LIC capital gain

+7.3%

NTA return

Argo Investments Limited

ACN 007 519 520

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ANNUAL DIVIDENDS CENTS PER SHARE

Argo Investments Limited

ACN 007 519 520

25 26 26 26.5 28 29.5 30.5 31 31.5 33

2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

interim final

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LIC CAPITAL GAIN TAX DEDUCTION

1 5 6

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TOTAL RETURNS % PER ANNUM TO 30 SEPTEMBER 2019

Argo Investments Limited

ACN 007 519 520

7.5% 5.7% 6.4% 8.9% 9.0% 7.4% 7.1% 9.1% 12.5% 9.5% 8.1% 9.0%

1 year 5 years (pa) 10 years (pa) 20 years (pa)

Share price NTA S&P/ASX 200 acc.

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TOTAL RETURNS 20 YEAR RETURN BASED ON $10,000 INVESTED

Argo Investments Limited

ACN 007 519 520

$78,552 $55,757 $24,768

1999 2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

+ franking credits + dividends paid Share price

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MARKET OUTLOOK

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Strong balance sheet, no debt Experienced board and management team Long-term, proven investment approach Fully-franked, sustainable dividends Low-cost, internally managed Administratively simple

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“Argo’s objective is to maximise long-term returns to shareholders through a balance of capital and dividend growth. It does this by investing in a diversified Australian equities portfolio which is actively managed in a tax- aware manner within a low-cost structure.”

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YEAR IN REVIEW

Argo Investments Limited

ACN 007 519 520

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GROWING DIVIDENDS IN A FALLING INTEREST RATE ENVIRONMENT

Argo Investments Limited

ACN 007 519 520 0.75% 5 10 15 20 25 30 35 0.0% 0.5% 1.0% 1.5% 2.0% 2.5% 3.0% 3.5% 4.0% 4.5% 5.0% 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 Axis Title Interim Dividend (cps) Final Dividend (cps) Cash Rate % (LHS)

31.0 25.0 26.0 26.0 26.5 28.0 29.5 30.5 31.5 33.0

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DIVIDEND INCREASES SEVEN YEARS IN A ROW

Argo Investments Limited

ACN 007 519 520

Company Sector CAGR* Holding ($M) Yield

Aristocrat Leisure Consumer Discretionary 31.0% 99.9 1.7% Macquarie Group Financials 15.3% 322.2 4.5% CSL Health Care 14.1% 260.2 1.3% Ramsay Health Care Health Care 11.5% 118.6 2.4% Transurban Infrastructure 10.2% 121.5 4.2% AGL Energy Utilities 10.2% 69.8 5.2% Premier Investments Consumer Discretionary 9.1% 24.2 3.8% AP Eagers Consumer Discretionary 9.0% 86.5 2.6% Sydney Airport Infrastructure 8.6% 118.5 4.9% Technology One Information Technology 8.5% 42.8 1.6% Amcor Materials 7.0% 70.8 4.8% Computershare Information Technology 6.7% 79.2 3.1% Brickworks Materials 5.0% 10.3 3.1% APA Group Utilities 5.0% 124.7 4.3%

* Cumulative Annual Growth Rate

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MAJOR PURCHASES DURING THE YEAR TO 30 JUNE 2019

Argo Investments Limited

ACN 007 519 520

ADDED TO POSITION NEW POSITION

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MAJOR SALES DURING THE YEAR TO 30 JUNE 2019

Argo Investments Limited

ACN 007 519 520

REDUCED POSITION EXITED POSITION

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Argo Investments Limited

ACN 007 519 520

RECENT PURCHASES SINCE YEAR ENDED 30 SEPTEMBER 2019

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MAJOR TRANSPORT INFRASTRUCTURE PROJECTS

Argo Investments Limited

ACN 007 519 520

Source: Macromonitor

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TOP 20 HOLDINGS AS AT 30 JUNE 2019

Argo Investments Limited

ACN 007 519 520

$M $M

Westpac Banking Corporation 337.7 Australian United Investment Co. 130.9 Macquarie Group 308.2 Ramsay Health Care 123.1 BHP Billiton 304.8 Transurban Group* 119.7 ANZ Banking Group 275.5 Sydney Airport 118.7 Commonwealth Bank of Australia 256.9 APA Group 117.5 CSL 239.4 Woolworths 107.4 Rio Tinto 217.6 Aristocrat Leisure 100.3 Wesfarmers 182.2 Sonic Healthcare* 98.3 National Australia Bank 168.6 QBE Insurance* 88.1 Telstra Corporation 167.5 Origin Energy 83.0

* Denotes new additions to top 20 holdings

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TOP HOLDINGS BY GROUP MATURE, DOMESTIC BUSINESSES

Argo Investments Limited

ACN 007 519 520

  • $671.0m in value

+4.9% on FY2018

  • 11.2% of the portfolio
  • $34.6m of dividends received*

+4.5% on FY2018

  • 5.2% yield*

* 2019 includes WES special dividend

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TOP HOLDINGS BY GROUP OFFSHORE EARNERS

Argo Investments Limited

ACN 007 519 520

  • $496.6M in value

+10.8% on FY2018

  • 8.3% of the portfolio
  • $19.2M of dividends received

+23.1% on FY2018

  • 3.9% yield
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TOP HOLDINGS BY GROUP HEALTHCARE

Argo Investments Limited

ACN 007 519 520

  • $460.8m in value

+19.9% on FY2018

  • 7.7% of the portfolio
  • $8.1m of dividends received

+22.7% on FY2018

  • 1.8% yield
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TOP HOLDINGS BY GROUP INFRASTRUCTURE

Argo Investments Limited

ACN 007 519 520

  • $355.9m in value

+24.5% on FY2018

  • 6.1% of the portfolio
  • $15.6m of dividends received

+15.6% on FY2018

  • 4.4% yield
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TOP HOLDINGS BY GROUP THE BIG MINERS

Argo Investments Limited

ACN 007 519 520

  • $522.4m in value

+15.0% on FY2018

  • 8.7% of the portfolio
  • $41.3m of dividends received*

+116.2% on FY2018

  • 7.9% yield*

* 2019 includes BHP & RIO special dividends

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TOP HOLDINGS BY GROUP BANKS

Argo Investments Limited

ACN 007 519 520

  • $1.0b in value

+1.9% on FY2018

  • 17.4% of the portfolio
  • $63.0m of dividends received

+0.2% on FY2018

  • 6.1% yield
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Argo Investments Limited

ENGAGING WITH THE BANKS

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E NVIRONMENT S OCIAL G OVERNANCE

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Argo Investments Limited

ACN 007 519 520

MARKET OUTLOOK

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PRICE/EARNINGS RATIO S&P/ASX 200 SINCE 1992

Argo Investments Limited

ACN 007 519 520 8 10 12 14 16 18 20 92 93 94 95 96 97 98 99 01 02 03 04 05 06 07 08 09 10 11 12 14 15 16 17 18 19 12MF PE (x)

12MF PE Avg +/- 1 std

source: Morgan Stanley

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Argo Investments Limited

ACN 007 519 520

source: Morgan Stanley

8 10 12 14 16 18 20 22 24 26 02 03 04 05 06 07 08 09 10 11 12 13 14 15 16 17 18 12MF PE (x)

12MF PE Avg +/- 1 std

PRICE/EARNINGS RATIO INDUSTRIALS SINCE 2002

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Get in touch

invest@argoinvestments.com.au (08) 8210 9500 www.argoinvestments.com.au