Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — H1 FY2007 Earnings Presentation
16 slides from Eqt's earnings presentation, February 2007
Slide 1: Equity Trustees Limited Half-Year Results to 31 December 2006
1 Equity Trustees Limited Half-Year Results to 31 December 2006
Slide 2: Themes
2 Themes • Record first half-year result • Achieved through: Trusted since 1888 – Growth across all business units – Cost management – Favourable market conditions • Strategy delivering growth • Benefiting from legislative changes • Further expansion to come in 2007
Slide 3: A record 1st half
3 st A record 1 half…. 2007 vs 2006 Revenue $15.8m +36.9% Ï Trusted since 1888 Reported Profit (post-tax) $3.7m +91.9% Ï Underlying Profit (post-tax)* $3.7m +53.3% Ï EPS 47.35¢ +76.0% Ï DPS (fully franked) 30¢ +50.0% Ï * Excludes the impact of legal costs in 2006 relating to the previous acquisition
Slide 4: Historical Comparison
4 Historical Comparison $16 Revenue Underlying Profit $m $15.8 $4 $m (post-tax) Trusted since 1888 $15 $3.649 $14 $3 $13 $2.380 * $12 $11.5 $2 $11 $10 $1.362 $9.8 $1.008 $9 $9.1 $1 Dec-03 Dec-04 Dec-05 Dec-06 Dec-03 Dec-04 Dec-05 Dec-06 * Excluding legal costs of the Wealthpac acquisition
Slide 5: Achieved through
5 Achieved through… • Growth in all business units • Cost management - sensible approach Trusted since 1888 • Implementation of strategy • Strategy delivering growth • Expansion plans being executed • Sales and Marketing focus • Focus on operating margin…. Dec ‘06 Dec ‘05 Dec ‘04 Pre- Tax Margin (un
Slide 6: Business Units
6 Business Units • Sales & marketing function for Funds Management EQT branded funds Trusted since 1888 • Support to fund managers • Wealth management Private Clients • Trusts & estates • Philanthropic services • Responsible entity roles Fund Services • Corporate trusts • Approved trustee roles • Ma
Slide 7: Revenue by business unit
7 Revenue vs Business Unit Revenue Comments Dec05 • Good FUM inflows Trusted since 1888 Funds $4.3m +17.3% • Overcoming margin squeeze Management • Strong funds’ performance • Impact of fee improvements Private Clients $4.9m +70.4% • Well positioned for DIY Super • Portfolio Manager focus • Strong d
Slide 8: Earnings per share
8 Earnings per share • Change in shares on issue - 6 months to 31/12/06 Opening balance at 1/7/06 7,683,444 Trusted since 1888 Issues under employee and share purchase plan 5,665 Dividend reinvestment plan 49,384 Closing balance at 31/12/06 7,738,493 • Earnings per share (half-year results): ¢ per s
Slide 9: Dividends
9 Dividends • 30¢ per share, fully franked Trusted since 1888 • Dividend Reinvestment Plan reactivated • DRP shortfall underwritten • At December 2006, franking credit balance = $5.6m (vs $4.3m as at Dec 2005) • Dividends declared (historical comparison) Dec Dec Dec Dec ¢ per share 06 05 04 03 Inter
Slide 10: Balance Sheet
10 Balance Sheet • Shareholders funds up $3.2m to $39.5m • Investment portfolio includes unrealised gains of Trusted since 1888 $5.7m (vs $4.9m at Dec 05) • Reserve requirements more than adequately met through net asset position and liquid reserves • Free-cash position strong for M&A activity
Slide 11: FUM
11 FUM Funds Management Private Clients Retail / IDPS $1,362m Trusted since 1888 $1,620m $1,283m $1,414m $1,128m +15% +6% $989m +43% +14% HY HY FY FY 30-Jun-05 30-Jun-06 31-Dec-06 30-Jun-05 30-Jun-06 31-Dec-06 Fund Services Superannuation $12,592m $434m $10,870m $400m $319m +25% +8% $7,875m +38% +16
Slide 12: Strategy Update
12 Strategy Update Survival Recovery Organic Step Growth Trusted since 1888 Growth Revenue Growth •M&A • Improved Profile • Improve Reach 2003 2004 2005 2006/07
Slide 13: Improve Reach
13 Improve Reach • In negotiations to purchase Superannuation Freedom of Choice Master trust and IDPS from Trusted since 1888 Australian Unity • Equity Trustees Superannuation Ltd to build Sydney base for superannuation and funds management sales • Manager appointed to generate growth in Queensland
Slide 14: Outlook
14 Outlook • Business units to capitalise on first half result • Develop further acquisition opportunities Trusted since 1888 • Positioned for superannuation changes • Leverage Queensland opportunities through the new office/presence • Operating environment remains favourable for all business units
Slide 15: Share price
15 Share price $29 FoC HoA 28.50 Low: $4.55 (13 March 03) announcement High: $28.50 (19 Feb 07) Futuris sell their 24.00 Trusted since 1888 stake to Trustco $24 At 23 Feb 07 = $26.00 2006 annual results 20.05 2006 results $19 update 2005 HY Merger with ANZET Results called off 12.50 16.00 $14 2004 H
Slide 16: ‘[rustees
EO ‘[rustees Trusted since 1888