Slide 1: Equity Trustees confirms half-year result – maintains interim dividend
26 February 2009 For personal use only Equity Trustees confirms half-year result – maintains interim dividend Equity Trustees Limited (ASX: EQT) today confirmed its 2009 half year financial results, which are in line with the company’s previous guidance. In summary: 6 months to 6 months to 31/12/200
Slide 2: Business unit commentary and outlook
For personal use only “Our Superannuation business unit recorded a strong year-on-year gain in revenue boosted by our recent acquisitions, all of which have been successfully integrated.” “We recorded positive net inflows into our EQT managed funds and improved margins in our Private Client business
Slide 3: Appendix 4D – Half-Year Report
Appendix 4D – Half-Year Report For personal use only Name of entity Equity Trustees Limited ABN or equivalent company reference Half Year Ended 46 004 031 298 31 December 2008 RESULTS FOR ANNOUNCEMENT TO THE MARKET 31 Dec 08 31 Dec 07 $ '000 $ '000 Revenue from ordinary activities 18,403 Down 3.1% F
Slide 4: ASX Additional Information
ASX ADDITIONAL INFORMATION Additional information required by the ASX, and not shown elsewhere in this report, follows. The information is current as at 31 December 2008. Net tangible asset backing / per share For personal use only The net tangible asset backing per share at 31 December 2008 was $2.
Slide 5: Consolidated Half-Year Financial Report for the half-year ended 31 December 2008
For personal use only Equity Trustees Limited ABN 46 004 031 298 Consolidated Half-Year Financial Report for the half-year ended 31 December 2008
Slide 6: Table of Contents
Equity Trustees Limited Table of Contents For personal use only Directors' Report 2 Auditor's Independence Declaration 4 Directors' Declaration 5 Condensed Consolidated Income Statement 6 Condensed Consolidated Balance Sheet 7 Condensed Consolidated Statement of Changes in Equity 8 Condensed Consoli
Slide 7: Directors' Report
Equity Trustees Limited [ABN 46 004 031 298] Directors' Report For personal use only The directors of Equity Trustees Limited submit herewith the financial report for Equity Trustees Limited and its subsidiaries (the Group) for the half-year ended 31.December.2008. In order to comply with the provis
Slide 8: Directors' Report (cont'd)
Equity Trustees Limited [ABN 46 004 031 298] Directors' Report (cont’d) For personal use only At 31 December 2008 the investment revaluation reserve contained a net of tax unrealised gain of $1,582,403 (June 2008: $3,106,094). The net asset position and liquid assets more than adequately support the
Slide 9: Auditor's Independence Declaration letter
Deloitte. Deloitte Touche Tohmatsu ABN. 74.490 121 080 180 Lonsdale Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia The Board of Directors Dx 111 Equity Trustees Limited Tel: +61 (0) 3.9208 7000 Level 2, 575 Bourke Street Fax: +61 (0) 3 9208 7001 Melbourne VIC 3000 www.deloitte.com
Slide 10: Directors' Declaration
Directors' Declaration The directors declare that: a) in the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and For personal use only b) in the directors’ opinion, the attached financial statements a
Slide 11: Condensed Consolidated Income Statement
Equity Trustees Limited Condensed Consolidated Income Statement for the half-year ended 31 December 2008 Consolidated Half-year ended Half-year ended 31-Dec-08 31-Dec-07 For personal use only Notes $ $ Continuing operations Revenue 17,390,759 17,912,214 Other revenue 1,011,818 1,075,429 Total revenu
Slide 12: Condensed Consolidated Balance Sheet
Equity Trustees Limited Condensed Consolidated Balance Sheet as at 31 December 2008 Notes Consolidated 31-Dec-08 30-Jun-08 $ $ For personal use only Current assets Cash and cash equivalents 1,006,457 1,473,219 Trade and other receivables 5,070,777 6,141,928 Prepaid expenses 815,724 616,813 Other cur
Slide 13: Condensed Consolidated Statement of Changes in Equity
Equity Trustees Limited Condensed Consolidated Statement of Changes in Equity for the half-year ended 31 December 2008 Reserves Fully paid General Investment Capital Retained Equity ordinary revaluation profit earnings settled shares benefits $ $ $ $ $ $ For personal use only Balance at 1 July 2007
Slide 14: Condensed Consolidated Cash Flow Statement
Equity Trustees Limited Condensed Consolidated Cash Flow Statement for the half-year ended 31 December 2008 Consolidated Half-year ended Half-year ended For personal use only 31-Dec-08 31-Dec-07 Notes $ $ Cash flows from operating activities Receipts from customers 20,507,588 19,364,705 Payments to
Slide 15: Notes: Summary of accounting policies
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for half-year ended 31 December 2008 1. Summary of accounting policies For personal use only Statement of compliance The half-year financial report is a general purpose financial report prepared in accordance with the C
Slide 16: Notes: Dividends and acquisition of businesses
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half-year ended 31 December 2008 Half-year ended Half-year ended For personal use only 31-Dec-08 31-Dec-07 Cents per share $ Cents per share $ 2. Dividends Recognised amounts Fully paid ordinary shares Final div
Slide 17: Notes: Subsequent events, contingencies, segment information
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half-year ended 31 December 2008 For personal use only 4. Subsequent events There have been no material subsequent events (2007: Heads of agreement to purchase Holdfast Fund Services Pty Limited signed) 5. Conti
Slide 18: Notes: Issuances of equity securities
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half-year ended 31 December 2008 7. Issuances of equity securities Half-year ended Half-year ended For personal use only 31-Dec-08 31-Dec-07 Fully paid ordinary shares No. of shares $ No. of shares $ Opening bal
Slide 19: Independent Auditor's Review Report
H Deloitte Touche Tohmatsu e ol le ABN 74 490 121 060 180 Lonsdale Street Melbourne VIC 3000 GPO Box 78 Melboume VIC 3001 Australia DX: 111 Tel: +61 (0) 39208 7000 Fax; +61 3 9208 7001 www.deloitte.com.au Independent Auditor’s Review Report to the Members of Equity Trustees Limited We have reviewed
Slide 20: Auditor's review conclusion
Deloitte Auditor’s Independence Declaration In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. Conclusion Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial rep
Slide 21: Half Year Results to December 2008
1 For personal use only Equity Trustees Limited Half Year Results to 31 December 2008
Slide 22: Equity Trustees
Equity Trustees For personal use only An independent Australian based financial services firm that is increasing its market presence. Trusted since 1888 2
Slide 23: Overview
Overview For personal use only • Year on year profit decline due to investment markets • Small decline (< 3%) in operating revenue – business units continue to perform well • Strong growth in Superannuation – driven by acquisitions • Discretionary expenses contained responsibly • Continued investmen
Slide 24: Overview – group results
Overview – group results 6 months to 6 months to For personal use only 31/12/2008 31/12/2007 Operating revenue $18.1m $18.6m (2.6%) Operating expenses ($12.0m) ($11.6m) + 3.5% Operating profit (pre-tax) $6.1m $7.0m (13.4%) Income tax expense ($1.9m) ($2.2m) Operating profit (after-tax) $4.2m $4.8m (
Slide 25: Operating results
Operating results For personal use only Operating revenue down 2.6% to $18.1m Operating expenses up 3.5% to $12.0m Investment income ($m) $18.6m $18.1m Depreciation ($m) 0.6 0.6 Operating overheads ($m) $12.0m Business unit revenue ($m) $15.8m $11.6m $10.6m 0.6 0.5 0.5 $9.0m 0.3 Overheads $11.6m 0.2
Slide 26: Operating revenue & expense variance
Operating revenue & expense variance For personal use only Strategic decision to maintain investment in people, process and systems while maintaining a responsible approach to discretionary expenditure. +36.9% Growth in operating revenue Æ Near term impact on year-on-year operating profit Growth in
Slide 27: Operating revenue - composition
Operating revenue - composition For personal use only Group revenue down 2.6% to $18.1m $18.6m $18.1m Investment income ($m) 0.6 0.6 Business units ($m) $15.8m 0.5 Business unit revenue down 2.6% to $17.5m ($0.7m) ($0.5m) +$0.9m ($0.2m) $11.6m 0.7 $9.4m Private Clients down $0.7m (-15.0%) $8.4m 0.4
Slide 28: Profitability
Profitability For personal use only Operating profit before tax Net profit after tax down 13.4% to $6.1m down 19.1% to $4.1m 7.3 2nd half 2nd half 1st half 1st half 5.9 5.5 4.5 4.0 7.0 3.3 2.3 6.1 5.2 1.7 5.1 1.9 1.4 4.1 3.6 2.6 1.9 1.4 1.7 1.9 1.2 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2
Slide 29: Earnings per share
Earnings per share For personal use only Earnings per share down 21.1% to 50.86¢ per share 133.35 Weighted average shares on issue (‘000) 105.18 Half year 8,085 Full year 8000 7,880 7,710 7500 69.94 64.48 7000 7,089 52.98 50.86 A capital raising in late 45.52 47.35 2005 increased the number 6500 of
Slide 30: Returns to shareholders
Returns to shareholders For personal use only Interim, fully-franked dividend maintained at 50¢ per share Board has maintained dividend level in reflection of: • Confidence in longer term prospects • Ongoing strong cash flow generation 50 50 of business • Strong balance sheet – nil debt 30 • High le
Slide 31: Balance sheet
Balance sheet For personal use only Net asset base of $51.9m – remains strong Minimal mark to market impact on 52.0 51.9 investment portfolio 44.4 36.4 21.6 16.5 '30/06/2004 '30/06/2005 '30/06/2006 '30/06/2007 '30/06/2008 '31/12/2008 Trusted since 1888 11
Slide 32: Total shareholder return
Total shareholder return For personal use only 800,000 Between 1 July 2003 and 31 December 2008 EQT’s Total Shareholder Return1 exceeded the growth of the S&P/ASX 700,000 200 Accumulation Index by 107%. 600,000 500,000 EQT S&P/ASX200 Accumulation Index 400,000 300,000 200,000 100,000 1 Assumes all d
Slide 33: Four business units – sources of revenue
Four business units – sources of revenue Sales & marketing + For personal use only Corporate superannuation: product management for • Wealthpac EQT co-branded funds • Templetons managed by external • www.super.com.au specialists • Freedom of Super Funds Choice -annuation Management 25% 27% Fund Serv
Slide 34: Private Clients
Private Clients For personal use only Operating revenue down 15.0% to $4.0m AUM down 26.3% to $1,091m Growth in client base has assisted revenue 1,406.6 1,479.3 4.9 4.7 1,260.1 4.0 1,093.1 1,090.5 994.5 2.8 2.9 2.9 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 • Exposed to market condi
Slide 35: In-house asset management capability
In-house asset management capability For personal use only EQT Flagship Fund EQT Charitable Balanced Fund ¾ Australian equities team incubated in ¾ In-house fund of funds model for tax- 2003. exempt investors ¾ Concentrated large cap fund generating a ¾ Invests predominantly in EQT co- tax effective
Slide 36: Funds Management
Funds Management For personal use only Operating revenue down 9.4% to $4.7m FUM down 20.5% to $1,945m 2,446.6 5.2 4.7 4.3 1,620.3 1,944.7 3.6 3.0 3.1 1,179.7 863.1 659.1 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Positive net FUM inflows • Positive net inflows for ½ year +35.7 • #6
Slide 37: Fund Services
Fund Services For personal use only Operating revenue down 4.8% to $4.4m FUA down 27.8% to $11,210m 15,527.1 4.6 4.4 12,802.0 3.5 11,210.3 2.4 8,015.4 5,350.8 1.4 3,298.4 0.9 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 • Exposure to markets affecting FUA but revenue holding up well –
Slide 38: Superannuation
Superannuation For personal use only Operating revenue up 27.2% to $4.4m FUM down 14.8% to $537m 4.4 630.4 537.1 3.5 434.0 2.6 375.0 2.0 1.4 1.6 132.2 161.7 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Revenue growth driven by acquisition and by • Acquisitions performing well – underl
Slide 39: Revenue & FUM comparison
Revenue & FUM comparison For personal use only Business unit operating revenue Funds under management $20.1b $18.0m $17.5m Despite contraction, revenue & FUM are $15.3m holding well vs prior corresponding periods $16.3b Superannuation $14.8b Fund Services Funds Management Private Clients $10.9m Supe
Slide 40: Information technology upgrade
Information technology upgrade For personal use only • Upgrade to Garradin system proceeding as planned • Further integrates key services – asset management, unit registry, fiduciary accounting and tax • Builds on provision for specialised trust & estate requirements • Improvement to on-line compone
Slide 41: Outlook
Outlook For personal use only Company base is solid: • Business units established and performing well • Good relationships with key clients • Active sales & marketing culture • Investment in people and systems • Strong cash flow and no debt Outlook for 2nd half of 2009: • Performance will continue t
Slide 42: Summary
Summary For personal use only • 1st half revenue held up well in market environment • Responsible approach to discretionary cost containment • Net asset base remains strong • Maintaining investment in people, processes and systems • Systems upgrade proceeding to plan • Business remains on solid plat
Slide 43: For personal use only
23 For personal use only Equity Trustees Limited ABN 46 004 031 298, Australian Financial Services Licence No 240975. This document was prepared by Equity Trustees Limited and is only provided for information purposes. It is not intended to take the place of professional advice and you should not ta