Slide 1: Half Year Results Presentation
TREASURY GROUP LIMITED HALF YEAR RESULTS PRESENTATION 31 DECEMBER 2014 TREASURY GROUP LIMITED // NORTHERN LIGHTS CAPITAL GROUP
Slide 2: Agenda
Agenda 1. Overview 2. Treasury Group 1H15 Results 3. Aurora Trust 1H15 Results 4. Outlook 5. Appendix - Group Structure TREASURY GROUP LIMITED // NORTHERN LIGHTS CAPITAL GROUP // 2
Slide 3: Overview
1. Overview Momentum from key boutiques driving improved outcomes Financial » Underlying NPAT of $9.8m – up 36.1% on 1H14 » Statutory NPAT of $137.3m includes significant abnormals (mark to market revaluation of TRG portfolio at merger completion) » Interim dividend increased to 24.0cps » Successful
Slide 4: Overview: Operational summary
1. Overview Operational summary » Merger with Northern Lights completed » Portfolio of 21 boutiques across the group with improved diversification by strategy, clients and geography » Strengthened internal investment and distribution capabilities at TRG/NLCP » Celeste to be owned directly by TRG fol
Slide 5: Capital raising uses of funds
1. Overview Capital raising uses of funds » Specifically identified investment opportunities - $12.2m • Drawdown by ROC on the loan facility - $1.5m in Dec 14 • Follow-on investment of $1.8m in Nereus completed in Feb 15 • New investment opportunities – on track (first announcement expected April) »
Slide 6: Treasury Group pro forma vs actual vs prior year results
2. TRG Results Treasury Group pro forma vs actual vs prior year results TRG TRG TRG » TRG Statutory NPAT for 1H15 Standalone Underlying Underlying Variance P&L Highlights (A$m) 1H15 1H15 1H14 % $137.3m » Actual 1H15 figures include 21 Revenue 0.7 1.2 1.0 nm weeks pre-merger results plus 5 Employee e
Slide 7: Very significant non-recurring items in HY15
2. TRG Results Very significant non-recurring items in 1 HY15 » Gain on sale is mark to market Treasury Group P&L (A$m) 1H15 1H14 adjustment of all assets and liabilities at the time of transfer Profit After Tax 137.3 6.8 to Aurora trust Gain on sale net of transaction costs and » Total transactions
Slide 8: Dividend increased
2. TRG Results Dividend increased 60 » Interim dividend 24 cps, fully 50 franked 50 » Payout ratio of 67% against 40 40 underlying NPAT 34 34 cps 30 24 20 10 0 2011 2012 2013 2014 2015 Interim Final TREASURY GROUP LIMITED // NORTHERN LIGHTS CAPITAL GROUP // 8
Slide 9: Aurora Trust balance sheet
3. Aurora Trust Results Balance sheet » TRG owned 61.2% of Aurora trust as at Balance Sheet – Aurora Trust (A$m) 31 Dec 2014 31 December (expected to be 64.0% on the basis that other Aurora Trust Current Assets 47.0 unitholders participate to the level that Non-Current Assets has been indicated) Inv
Slide 10: Details of Non-Current Liabilities
3. Aurora Trust Results Details of Non-Current Liabilities Name Amount Maturity Notes Redeemable Preference Units USD 15m May ’16 Unit holder debt Redeemable Preference Units USD 42m Nov ’16 Unit holder debt, contingent on value of certain NL boutiques achieving profit targets by 2021. Conditional r
Slide 11: Illustrative aggregation of portfolio P&L
3. Aurora Trust Results Illustrative aggregation of portfolio P&L as if all boutiques were 100% owned Pro-forma » Total FUM of A$50.9bn at 31 December Aggregate P&L for Boutiques (A$m) 1H15 2014 Year end FUM ($bn) 50.9 » Aggregated results include all the Average Net Margin (%) 48 bpts boutiques of
Slide 12: Contribution by boutique – pro forma for 6 months
3. Aurora Trust Results Contribution by boutique – pro forma for 6 months A$50.9bn » RARE, Seizert, Investors Mutual and 100% Aether contribute the majority of earnings 90% » No dividend received from WHV in 80% 1H15, however A$1.0m of fee income received 70% » Well diversified portfolio of strategi
Slide 13: Outlook: TRG/NLCP Group is well positioned
4. Outlook TRG/NLCP Group is well positioned » Merger with Northern Lights completed • Establishes platform for future growth • Significantly improved access to international clients and deal flow • First new investment opportunities on track • Strengthened distribution and investment capabilities •
Slide 14: Simplified Group Structure
5. Appendix Simplified Group Structure TRG NLCP BNP Class A Units Class B Units Class B&C Units 64.0%1 27.2%1 8.8% Aurora Trust 100.0% Various % Midco External Debt Facility Various % RARE Investors Aether Seizert Infrastructure Mutual Aust/Other Other US Boutiques2 Boutiques2 1 Ownership percentage
Slide 15: Disclaimer
Disclaimer The information in this presentation is general background information about Treasury Group Limited and is current only at the date of this presentation. In particular, this presentation: » is not an offer or recommendation to purchase or subscribe for securities in Treasury Group Limited