Slide 1: Equity Trustees confirms full-year result and final dividend
26 August 2010 For personal use only Equity Trustees confirms full-year result and final dividend. Equity Trustees Limited (ASX: EQT) today confirmed its full year financial results, which are in line with the company’s unaudited results announced on 3rd August, 2010. Net profit after tax is unchang
Slide 2: Management commentary and contact details
“All of our business units performed well in light of the specific factors each faced in its sector For personal use only and we are particularly pleased to note the continuing growth in the private client business. This augurs well for the company over the long-term given the level of demand foreca
Slide 3: Equity Trustees Limited Full Year Results to June 2010
For personal use only Equity Trustees Limited Full Year Results to 30 June 2010
Slide 4: Overview – FY2010
Overview – FY2010 For personal use only ¾ Volatile markets continue to impact financial performance. ¾ Underlying profitability levels generally maintained. ¾ 110¢ full-year, fully franked dividend maintained at 2009 levels. ¾ New business generation remains positive. ¾ All business units perform de
Slide 5: Overview – group results
Overview – group results For personal use only 2010 2009 $m $m Change Operating revenue 34.5 33.8 2.1% Operating expenses (23.8) (22.9) (4.0%) Operating profit before tax 10.7 10.9 (1.8%) Income tax expense 3.2 3.1 Operating Profit after tax 7.5 7.8 (3.5%) Net profit from sale of investments (net of
Slide 6: Operating Revenue
Operating Revenue For personal use only $39.2m Investment income ($m) (Excludes profit on sale of investments) 1.2 $33.8m $34.5m $32.4m 0.9 Business unit revenue ($m) 1.1 1.1 $24.8m $19.8m 1.2 $16.8m 38.0 1.0 33.6 31.3 32.7 0.7 23.6 2.1% 18.8 increase 16.1 2004 2005 2006 2007 2008 2009 2010 Trusted
Slide 7: Operating Expenses
Operating Expenses For personal use only Operating costs, including depreciation ($m) $24.6m $23.8m $22.9m $21.3m $18.2m $15.6m $13.7m 4% increase 2004 2005 2006 2007 2008 2009 2010 Trusted since 1888 5
Slide 8: Operating margin
Operating margin For personal use only Operating Profit (pre-tax) ($m) 37.1% Operating margin (%) 34.3% 32.4% 31.1% 14.6 26.8% 11.1 10.9 10.7 21.2% 18.5% 6.6 1.8% decline 4.2 3.1 2004 2005 2006 2007 2008 2009 2010 Trusted since 1888 6
Slide 9: Revenue recovering
Revenue recovering For personal use only S&P / ASX200 Index July 2007 to June 2010 7500 7000 6828.7 6500 FY 2008 FY 2009 FY 2010 6000 S&P/ASX200 5500 (16.9%) (24.1%) +10.9% 4954.3 Year on year 5000 4500 EQT operating revenue +21.2% (13.7%) +2.1% 4000 4301.5 year on year 3500 3145.5 3000 09/08 11/08
Slide 10: Profitability
Profitability For personal use only ¾ Operating profit before tax down 1.8% to $10.7m $14.6m ¾ Net profit after tax unchanged (Includes profit on sale of investments) $11.1m $10.9m $10.7m $10.6m Operating profit before tax Net profit after tax $8.1m $8.0m $8.0m $6.6m $5.2m $4.2m $3.4m $3.1m $2.8m 20
Slide 11: Operating revenue - change
Operating revenue - change For personal use only ¾ Operating revenue up 2.1% to $34.5m $39.2m Variance – 2010 vs 2009 ($m) Investment income ($m) 1.2 (Excludes profit on sale of investments) +0.4 (0.3) Business units ($m) $33.8m $34.5m (0.2) (0.2) +1.0 $32.4m 1.1 0.9 1.1 $24.8m Funds 1.2 Management
Slide 12: Operating revenue - composition
Operating revenue - composition For personal use only ¾ An even spread of revenue across business units $39.2m 3% Investment income $33.8m $34.5m 20% 2% Superannuation $32.4m 3% 3% Fund Services Funds Management 24% 16% 25% Private Clients $24.8m 24% 5% 24% 18% 25% $19.8m 24% 5% $16.8m 4% 17% 23% 26
Slide 13: Expense management
Expense management For personal use only Focus on responsible approach to costs ¾ Investment in people, systems & processes continued Maintained investment in 2009/10 – focus on ability to respond to market opportunities: +30.8% ¾ Staff numbers maintained +25.0% ¾ IT system upgrade continued +21.1%
Slide 14: Reported Earnings per Share
Reported Earnings per Share For personal use only ¾ Reported Earnings per Share down 1.9% to 96.6¢ per share 133.35 105.18 Weighted average shares on issue (‘000) 98.45 96.60 8,328 8,000 8,138 7,923 7,742 69.94 7,372 7,000 52.98 45.52 6,423 6,176 6,000 2004 2005 2006 2007 2008 2009 2010 2004 2005 20
Slide 15: Returns to shareholders
Returns to shareholders For personal use only ¾ Full-year, fully-franked dividend maintained Decision to maintain dividend at the same level as the prior year. This reflects: 110 110 110 ¾ Confidence in the prospects of the business ¾ Strong cash flow ¾ Strong balance sheet – nil debt ¾ Surplus fran
Slide 16: Net asset base
Net asset base For personal use only ¾ Strong net asset base. Nil debt. $53.9m $52.0m $52.9m $44.4m $36.4m No impairment charges $21.6m $16.5m 2004 2005 2006 2007 2008 2009 2010 Trusted since 1888 14
Slide 17: Sustained shareholder return
Sustained shareholder return For personal use only 800 EQT Total Shareholder Return ¾ Assumes all dividends are reinvested. 700 1 July 2003 to 600 30 June 2010 EQT Total Shareholder Return + 292.6% S&P/ASX 200 Accum. Index + 191.71% 500 400 300 Base (100) taken at 1 July 2003 200 100 S&P/ASX 200 Acc
Slide 18: Business units – operations & performance
Business units – operations & performance For personal use only 2010 Revenue 2010 FUM Business unit Key services Target market / channel vs 2009 vs 2009 Private Clients ¾ Wealth Management ¾ Private investors $8.5m $1,261m ¾ Asset Management ¾ Business to business +12.6% +13.5% ¾ Trusts & Estates re
Slide 19: Business unit overview - Private Clients
Business unit overview - Private Clients For personal use only Operating revenue up 12.6% to $8.5m AUM up 13.5% to $1,261m Significant one-off estates boost 1,490 10.4 1,303 1,333 9.3 1,261 8.5 1,128 1,112 7.6 998 5.9 6.1 5.2 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 • Si
Slide 20: Business unit overview – Funds Management
Business unit overview – Funds Management For personal use only Operating revenue down 2.3% to $8.3m FUM up 12.3% to $2,176m 2,367 10.0 2,176 9.0 2,002 1,938 8.5 8.3 7.5 6.4 1,414 5.9 989 998 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 • Strong increase in flows into the EQ
Slide 21: Business unit overview - Fund Services
Business unit overview - Fund Services For personal use only Operating revenue up 4.8% to $8.5m FUA up 28.9% to $14,452m 13,845 14,046 14,452 9.6 8.1 8.5 11,130 11,209 7.7 5.6 7,211 3.1 4,130 2.1 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 • Activity from domestic and globa
Slide 22: Business unit overview - Superannuation
Business unit overview - Superannuation For personal use only Operating revenue down 1.8% to $8.3m • The EquitySuper brand was launched 7.9 8.5 8.3 and the integration of the Templeton's brand was completed 5.3 2010 highlights • The Freedom of Choice Master Fund 4.4 2.9 3.4 was rated 5 stars by Hero
Slide 23: Business update
Business update For personal use only Regulatory changes ¾ Trustee companies have now commenced the transition to national Trustee Companies legislation during 2010 (from the previous state based legislation). ¾ The Cooper, Ripoll and Henry reviews each contain recommendations which affect EQT’s ope
Slide 24: Summary
Summary For personal use only Current results and activities ¾ Business has diversified revenue streams, all making solid contributions to NPAT. ¾ Despite continuing volatility, underlying margins remain healthy and revenue has held up well. ¾ Tight expenditure control through a difficult period but
Slide 25: For personal use only
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 take