Australian Ethical Investment Ltd · ASX:AEF
Australian Ethical Investment — H1 FY2017 Earnings Presentation
19 slides from Australian Ethical Investment's earnings presentation, Feb 28, 2017
Slide 1: Results & company update, six months to 31 December 2016
Results & company update For personal use only Six months to 31 December 2016 Phil Vernon | Managing Director
Slide 2: 30 years of ethical investment leadership
For personal use only “30 years of ethical investment leadership”
Slide 3: Our business model
Our business model For personal use only Broad range of products, across most asset classes accessed through multiple channels Channels Direct Employers Advisers Super and Pension Managed funds Product A$1,258 (68%) A$583m (32%) packaging 13 options 9 products Investment management Manufacturing Dom
Slide 4: Our ethical charter - since 1986
Our ethical charter - since 1986 For personal use only 4
Slide 5: Investments must first pass our ethical screen
Investments must first pass our ethical screen For personal use only Yes Some On balance Does it create Does it do any Balance positives Investment positive impact? harm? and negatives assessment e.g. education, e.g. environmental, e.g. alleviate No harm only clean energy, worker exploitation povert
Slide 6: 1HY2017 results
For personal use only 1HY2017 results
Slide 7: Highlights of 1HY2017
Highlights of 1HY2017 For personal use only • Record member growth (up 30%) • Record net inflows (up 35%) • Record UPAT (up 52%) • Record funds under management (up 31%) • Revenues increase (up 22%) • NPAT* decreased by 62% due to remediation and employment restructure costs • Strong investment perf
Slide 8: Financial results
Financial results For personal use only Half year to Half year to Change Key financials 31 Dec 2015 31 Dec 2016 (%) ($,000) ($,000) Revenue 10,941 13,328 22% Operating expenses (8,475) (10,114) (19%) Non-operating expenses - (2,410) Income tax expense (765) (235) Net profit after tax – statutory 1,7
Slide 9: Financial results cont'd
Financial results cont’d For personal use only Half year to Half year to Change Key financials 31 Dec 2015 31 Dec 2016 (%) ($,000) ($,000) Net profit after tax – attributable to shareholders 1,501 564 (62%) Adjustments (gross) Add back employment restructure - 250 Add back unit price remediation exp
Slide 10: Funds under management and net inflows
Funds under management and net inflows • For personal use only A 31% increase in total FUM • A 61% increase in net super FUM Half year to Half year to Change Funds under management 31 Dec 2015 31 Dec 2016 (%) ($,000) ($,000) Opening FUM 1,167 1,557 33% Super flows (net) 96 155 61% Managed Funds flow
Slide 11: Record net inflows
Record net inflows For personal use only • Record net inflows of $209m up 35% Managed Funds Super Net Flows $300 $250 $200 $150 Inflows (m) $100 $50 $0 ($50) Outflows ($100) Dec-12 Dec-13 Dec-14 Dec-15 Dec-16 11
Slide 12: Financial results (cont'd)
Financial results (cont’d) For personal use only Funds under management ($m) Revenue ($m) 1,841 13.3 1,401 10.9 9.7 9.9 1,039 7.7 802 669 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 As at 31 December (before distribution) Six months ending 31 December Profit after tax ($m) Underlying profit af
Slide 13: Financial results (cont'd)
Financial results (cont’d) For personal use only Basic earnings per share (cps) Underlying earnings per share (cps) Interim dividend (cps) 141 211 120 119 139 141 80 80 93 50 48 53 52 40 52 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 2012 2013 2014 2015 2016 Six months ending 31 December * Six
Slide 14: Strong super member growth over half year
Strong super member growth over half year For personal use only • Record member growth up 30% • Almost double the rate of new monthly membership on 2015 • 993 new members in November – new monthly record • Achieved 30,000 member milestone 14
Slide 15: Investment performance
Investment performance For personal use only • Australian Shares Fund continues to outperform benchmark over short, medium and long term 3M 6M 1Y 2Y 3Y 5Y 7Y 10Y Since (%) (%) (%) (%) (%) (%) (%) (%) Incept’n (%) Retail Trust* 1.2 9.2 7.5 13.6 13.6 16.5 10.1 8.5 10.2 S&P ASX Small Industrials -2.6 5
Slide 16: Investment performance
Investment performance • For personal use only Relative performance against peers impacted by non-exposure to resources, underweight financials • Australian Shares Fund continues to be in the top quartile over the medium-to-longer term 1 year 3 years 5 years 7 years 10 years Managed Funds Quartile Q
Slide 17: Investment performance
Investment performance • For personal use only Relative performance against peers impacted by non-exposure to resources, financials 1 year 3 years 5 years 7 years 10 years Superannuation Accumulation Options Quartile Quartile Quartile Quartile Quartile Defensive 2nd 1st 2nd 1st 1st Conservative 3rd
Slide 18: Disclaimer
Disclaimer For personal use only Australian Ethical Investment Ltd (ABN 47 003 188 930; Australian Financial Services Licence No. 229949) is the Responsible Entity and Investment Manager of the Australian Ethical Managed Investment Funds. Interests in the Australian Ethical Retail Superannuation Fun
Slide 19: Thank you
For personal use only Thank you
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