Slide 1: Equity Trustees confirms audited half year result – maintains interim dividend
25 February 2010 Equity Trustees confirms audited half year result – For personal use only maintains interim dividend Equity Trustees Limited (ASX: EQT) today confirmed its audited 2010 half year financial results, which are in line with the company’s previous guidance. In summary: 6 months to 6 mon
Slide 2: Management change and contact details
“Mr Williams has been an exceptional leader, moulding together an excellent executive team supported by talented and dedicated staff. The growth of the four For personal use only business units has resulted in an outstanding growth phase, which has flowed to shareholders via increased dividends and
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 2009 RESULTS FOR ANNOUNCEMENT TO THE MARKET 31 Dec 09 31 Dec 08 $ '000 $ '000 Revenue from ordinary activities 17,303 Down 6% Fro
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 2009. Net tangible asset backing per share For personal use only The net tangible asset backing per share at 31 December 2009 was $2.62
Slide 5: Consolidated Half-Year Financial Report for the half-year ended 31 December 2009
For personal use only Equity Trustees Limited ABN 46 004 031 298 Consolidated Half-Year Financial Report for the half-year ended 31 December 2009
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 Statement of Comprehensive Income 7 Condensed Consolidated Statement of Financial Positio
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.2009. In order to comply with the provisio
Slide 8: Directors' Report (cont'd)
Equity Trustees Limited ABN 46 004 031 298 Directors' Report (cont’d) For personal use only Dividends During the half-year period the company paid a fully franked final dividend of 60 cents per share in respect of the financial year ended 30 June 2009. Subsequent to 31 December 2009, the directors h
Slide 9: Auditor's Independence Declaration letter
Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia DX 111 Tel: +61 (0) 3 9671 7000 25 February 2010 Fax: +61 (0) 3 9671 7001 For personal use only www.deloitte.com.au The Board of Directors Equity Trustees Limited Level 2 575 Bour
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 2009 Consolidated Half-year ended Half-year ended 31-Dec-09 31-Dec-08 For personal use only Note $ $ Continuing operations Revenue 16,455,114 17,470,892 Investment revenue 848,739 931,685 Total revenu
Slide 12: Condensed Consolidated Statement of Comprehensive Income
Equity Trustees Limited Condensed Consolidated Statement of Comprehensive Income for the half-year ended 31 December 2009 Consolidated Half-year ended Half-year ended 31-Dec-09 31-Dec-08 For personal use only Note $ $ Net profit after income tax expense from continuing operations 3,666,994 4,112,348
Slide 13: Condensed Consolidated Statement of Financial Position
Equity Trustees Limited Condensed Consolidated Statement of Financial Position as at 31 December 2009 Consolidated 31-Dec-09 30-Jun-09 Note $ $ Current assets For personal use only Cash and cash equivalents 2,817,939 3,180,486 Trade and other receivables 3,646,571 3,256,853 Other current financial a
Slide 14: Condensed Consolidated Statement of Changes in Equity
Equity Trustees Limited Condensed Consolidated Statement of Changes in Equity for the half-year ended 31 December 2009 Reserves Fully paid Investment Capital Equity Retained Total Equity ordinary revaluation profit & settled earnings shares General benefits $ $ $ $ $ $ Balance at 1 July 2008 34,492,
Slide 15: Condensed Consolidated Statement of Cash Flows
Equity Trustees Limited Condensed Consolidated Statement of Cash Flows for the half-year ended 31 December 2009 Consolidated Half-year ended Half-year ended For personal use only 31-Dec-09 31-Dec-08 Notes $ $ Cash flows from operating activities Receipts from customers 18,665,608 20,507,588 Payments
Slide 16: Notes to the Condensed Consolidated Financial Statements
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for half-year ended 31 December 2009 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 17: Summary of accounting policies (cont'd)
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for half-year ended 31 December 2009 1. Summary of accounting policies (cont’d). For personal use only • allow a choice on a transaction-by-transaction basis for the measurement of non-controlling interests (previously
Slide 18: Notes: Dividends, acquisitions, subsequent events
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half-year ended 31 December 2009 Half-year ended Half-year ended 31-Dec-09 31-Dec-08 For personal use only Cents per share $ Cents per share $ 2. Dividends Recognised amounts Fully paid ordinary shares Final div
Slide 19: Segment information
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half-year ended 31 December 2009 7. Segment information (cont'd) For personal use only A range of services to Australian managed investment schemes, Corporate Trusts and Superannuation schemes including Wealth S
Slide 20: Independent Auditor's Review Report
Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia DX 111 Tel: +61 (0) 3 9671 7000 Fax: +61 (0) 3 9671 7001 For personal use only www.deloitte.com.au Independent Auditor’s Review Report to the Members of Equity Trustees Limited We
Slide 21: Auditor's Independence Declaration
Auditor’s Independence Declaration In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. For personal use only 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
Slide 22: Half Year Results to December 2009
For personal use only Equity Trustees Limited Half Year Results to 31 December 2009
Slide 23: Overview
Overview For personal use only ¾ Results in-line with January announcement and ahead of previous forecast. ¾ Markets impacting financial performance however strong underlying profitability levels maintained. ¾ New business generation supporting operating revenue. ¾ Strong cash flow generation from o
Slide 24: Overview – Half-Year group results
Overview – Half-Year group results 6 months to 6 months to For personal use only 31 Dec 2009 31 Dec 2008 $m $m Operating revenue 16.9 18.1 (6.8%) Operating expenses (12.0) (12.0) 0.0% Operating profit (pre-tax) 4.9 6.1 (20.4%) Income tax expense (1.5) (1.9) Operating profit after tax 3.4 4.2 (19.0%)
Slide 25: People, processes & systems = IP
People, processes & systems = IP For personal use only Enabling our staff to be These enhancements are EQT has continued to well positioned to respond supporting the introduction invest in system to market changes of greater efficiencies across improvements through the business the downturn People P
Slide 26: Operating results – 1st Half Comparison
Operating results – 1st Half Comparison For personal use only Operating revenue down 6.8% to $16.9m Operating expenses constant at $12.0m Investment income ($m) $18.6m $18.1m Depreciation/Amortisation ($m) Business unit revenue ($m) 0.6 0.6 $16.9m Operating overheads ($m) $15.8m 0.4 $11.6m $12.0m $1
Slide 27: Operating revenue & expense variance – 1st Half Comparison
Operating revenue & expense variance – 1st Half Comparison For personal use only Strategic decision to continue investment in core business – focus on ability to respond to market opportunities: ¾ Investment in people, systems & +36.9% processes continued ¾ Staff numbers maintained/tightly managed r
Slide 28: Profitability
Profitability For personal use only Operating profit (pre-tax) Net profit (post-tax) 2nd half 7.3 2nd half 1st half 1st half 4.8 5.9 5.5 4.5 3.9 4.0 7.0 3.3 2.3 6.1 5.2 4.9 1.7 5.1 1.9 1.4 4.1 3.6 3.7 2.6 1.9 1.4 1.7 1.9 1.2 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 Trust
Slide 29: Operating revenue – composition 1st Half Comparison
Operating revenue – composition 1st Half Comparison For personal use only Group operating revenue down 6.8% to $16.9m $18.6m $18.1m Investment income ($m) 0.6 0.6 $16.9m Business units ($m) 0.4 $15.8m 0.5 Variance – 2010 vs 2009 ($m) +0.3 (0.5) $11.6m 0.7 Private (0.4) $9.4m Clients 0.4 18.0 Funds (
Slide 30: Operating revenue – composition 1st Half Comparison
Operating revenue – composition 1st Half Comparison For personal use only ¾ An even spread of revenue across business units $18.6m $18.1m 3% 4% $16.9m Investment income Superannuation 3% $15.8m 19% Fund Services 3% 24% Funds Management 24% 17% Private Clients $11.6m 25% 6% 22% 24% 24% $9.4m 18% $8.4
Slide 31: Earnings per share
Earnings per share For personal use only 133.35 105.18 Weighted average shares on issue (‘000) Half year 98.45 Full year 8,291 8,085 7,880 69.94 64.48 7,710 52.98 50.86 7,089 45.52 47.35 44.23 A capital raising in late 2005 increased the number of shares on issue by 14.8% 6,373 26.73 26.83 6,110 20.
Slide 32: Returns to shareholders
Returns to shareholders For personal use only Fully-franked dividends Strategic decision to maintain dividend at the same level as the prior year. This reflects: ¾ Confidence in the prospects of the business ¾ Ongoing strong cash flow generation ¾ Strong balance sheet – nil debt ¾ High level of fran
Slide 33: Balance sheet
Balance sheet For personal use only ¾ Strong net asset base. Nil debt. $53.5m $52.9m $52.0m $44.4m $36.4m ¾ No impairment charges on past acquisitions ¾ Minimal mark to market impact on investment portfolio $21.6m $16.5m 'Jun-04 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Dec-09 Trusted since 1888 12
Slide 34: Sustained share price outperformance
Sustained share price outperformance For personal use only 800 1/7/03 1/1/06 1/1/09 to to to EQT Total Shareholder 700 31/12/09 31/12/09 31/12/09 Return ¾ Assumes all dividends are EQT Total reinvested. Shareholder + 349.1% + 65.6% + 45.1% 600 Return S&P/ASX 500 200 Accum. + 112.9% + 21.6% + 37.0% I
Slide 35: Business units – operations & performance
Business units – operations & performance For personal use only 6 months to 6 months to Business unit Key services Target market 31 Dec 2009 31 Dec 2009 Revenue FUM/AUM Private Clients ¾ Wealth Management Private investors $4.3m $1,295m ¾ Personal superannuation +7.0% +18.8% ¾ Asset Management ¾ Tru
Slide 36: Business unit overview - Private Clients
Business unit overview - Private Clients For personal use only Operating revenue Consistent revenue performance Assets under management resulting from sales focus – growth in client base 1,407 1,479 4.9 4.7 1,260 1,295 4.0 4.3 1,093 1,091 983 2.8 2.9 2.9 2004 2005 2006 2007 2008 2009 2010 2004 2005
Slide 37: Business unit overview – Funds Management
Business unit overview – Funds Management For personal use only Operating revenue Funds under management 5.2 2,447 4.7 4.3 4.1 2,181 3.6 1,973 3.0 3.1 1,620 1,180 659 863 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 Shift from Diversified across major asset classes property
Slide 38: Business unit overview - Fund Services
Business unit overview - Fund Services For personal use only Operating revenue Funds under administration 4.6 15,407 4.4 14,316 4.0 12,802 3.5 11,125 2.4 8,015 1.4 5,350 0.9 3,298 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 • Demand for new funds in wake of GFC – domestic a
Slide 39: Business unit overview - Superannuation
Business unit overview - Superannuation For personal use only Operating revenue Funds under management Impact of acquisitions 630 622 4.4 4.1 546 3.5 434 375 2.6 2.0 1.4 1.6 162 132 2004 2005 2006 2007 2008 2009 2010 2004 2005 2006 2007 2008 2009 2010 • Streamline of operations - consolidation of mu
Slide 40: Revenue & FUM – 1st Half Comparison
Revenue & FUM – 1st Half Comparison For personal use only Operating revenue Funds under management $18.6m $18.1m $20.1b Investment Income Despite market Superannuation $16.9m volatility, revenue $18.4b Fund Services $15.8m & FUM compare Funds Management well against prior Private Clients correspondi
Slide 41: Business update
Business update For personal use only Regulatory changes ¾ Government and industry inquiries being monitored. EQT will participate through industry channels. EQT is well positioned to respond to change. ¾ National Trustee Company legislation anticipated late in current financial year. EQT has been a
Slide 42: Summary and outlook
Summary and outlook For personal use only Company base is solid: ¾ Decline in operating revenue reflective of market conditions. Improvement seen in latter months of the period. ¾ Decision to maintain investment in people, processes and systems impacts short-term profitability but will benefit in th
Slide 43: 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