Eqt Holdings Ltd. · ASX:EQT
Eqt — H1 FY2013 Earnings Presentation
45 slides from Eqt's earnings presentation, Feb 11, 2016
Slide 1: Equity Trustees Strong Half Year Result Delivers 5% Increased Dividend
27 February 2013 Equity Trustees Strong Half Year Result Delivers 5% Increased Dividend Update on Takeover Offer for Trust Company Equity Trustees Limited (ASX: EQT) today confirmed a lift in half year revenue of 8.3% and a 13.8% increase in net profit after tax for the six months ending 31 December
Slide 2: Takeover offer for The Trust Company
-2- Takeover offer for The Trust Company Mr Burns added, “On 21 February 2013, EQT announced its intention to make a takeover offer to acquire all of the shares in The Trust Company (ASX: TRU). It is not just our view but also that of market observers and many of the interested shareholders with who
Slide 3: Appendix 4D – Half Year Report
Appendix 4D – Half Year Report Name of entity Equity Trustees Limited ABN or equivalent company reference Half Year Ended 46 004 031 298 31 December 2012 RESULTS FOR ANNOUNCEMENT TO THE MARKET 31 Dec 12 31 Dec 11 $ '000 $ '000 Revenue from ordinary activities 22,805 Up 8.3% From 21,061 Operating pro
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 2012. Net tangible asset backing per share The net tangible asset backing per share at 31 December 2012 was $1.85 (2011: $1.28), which
Slide 5: Consolidated Half Year Financial Report
Equity Trustees Limited ABN 46 004 031 298 Consolidated Half Year Financial Report for the half year ended 31 December 2012
Slide 6: Directors' Report
Equity Trustees Limited ABN 46 004 031 298 Directors' Report 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.2012. In order to comply with the provisions of the Corporations
Slide 7: Directors' Report (cont'd)
Equity Trustees Limited ABN 46 004 031 298 Directors' Report (cont’d) Dividends During the half year period the company paid a fully franked final dividend of 45 cents per share in respect of the financial year ended 30 June 2012. Subsequent to 31 December 2012, the directors have declared a fully f
Slide 8: Auditor's Independence Declaration
Deloitte. Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melboume VIC 3000 GPO Box 78 Melboume VIC 3001 Australia DX: 111 Tel: +61 (0) 3 9671 7000 Fax: +61 (0) 9691 8021 www.deloitte.com.au The Board of Directors Equity Trustees Limited Level 2 575 Bourke Street MELBOURNE VIC 3000 27
Slide 9: 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 b) in the directors’ opinion, the attached financial statements and notes thereto are i
Slide 10: Condensed Consolidated Statement of Profit or Loss
Equity Trustees Limited Condensed Consolidated Statement of Profit or Loss for the half year ended 31 December 2012 Consolidated Half year ended Half year ended 31 Dec 2012 31 Dec 2011 $ $ Continuing operations Revenue 22,222,309 20,524,538 Other revenue 582,614 536,397 Total revenue 22,804,923 21,0
Slide 11: Statement of Profit or Loss and Other Comprehensive Income
Equity Trustees Limited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the half year ended 31 December 2012 Consolidated Half year ended Half year ended 31 Dec 2012 31 Dec 2011 $ $ Net profit after income tax expense from continuing operations 4,408,188 3,872,3
Slide 12: Condensed Consolidated Statement of Financial Position
Equity Trustees Limited Condensed Consolidated Statement of Financial Position as at 31 December 2012 Consolidated 31 Dec 2012 30-Jun-12 Note $ $ Current assets Cash and cash equivalents 7,837,772 9,898,656 Trade and other receivables 5,296,087 4,870,866 Other 3,501,475 2,720,388 Total current asset
Slide 13: Condensed Consolidated Statement of Changes in Equity
Equity Trustees Limited Condensed Consolidated Statement of Changes in Equity for the half year ended 31 December 2012 Reserves Fully paid Investment Equity Retained Attributable Non- Total Equity ordinary revaluation settled earnings to owners controlling shares benefits of the parent interests $ $
Slide 14: Condensed Consolidated Statement of Cash Flows
Equity Trustees Limited Condensed Consolidated Statement of Cash Flows for the half year ended 31 December 2012 Consolidated Half-year ended Half-year ended 31 Dec 2012 31 Dec 2011 $ $ Cash flows from operating activities Receipts from customers 25,764,709 24,528,971 Payments to suppliers and employ
Slide 15: Notes to the Condensed Consolidated Financial Statements
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for half year ended 31 December 2012 1. Summary of accounting policies Statement of compliance The half year financial report is a general purpose financial report prepared in accordance with the Corporations Act 2001 a
Slide 16: Notes: Dividends and Acquisition of businesses
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half year ended 31 December 2012 Half year ended Half year ended 31 Dec 2012 31 Dec 2011 Cents per Cents per share $ share $ 2. Dividends Recognised amounts Fully paid ordinary shares Final dividend 45.00 4,015,
Slide 17: Notes: Acquisition of businesses (cont'd)
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half year ended 31 December 2012 3. Acquisition of businesses (cont'd) Half year ended 31 Dec 2012 31 Dec 2011 Goodwill arising on acquisition $ $ Consideration - 1,384,589 Less fair value of identifiable net as
Slide 18: Notes: Segment information
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half year ended 31 December 2012 8. Segment information AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief
Slide 19: Independent Auditor's Review Report
Deloitte. Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melboume VIC 3001 Australia DX: 111 Tel: +61 (0) 3 9671 7000 Fax: +61 (0) 9691 8021 www.deloitte.com.au Independent Auditor’s Review Report to the Members of Equity Trustees Limited We have reviewed
Slide 20: Auditor's Review Report (continued)
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. Dik Ze ~—— DELOITTE TOUCHE TOHMATSU —_—— Neil Brown Partner Chartered Accountants 27 February 2013
Slide 21: Equity Trustees Limited (EQT) Half Year Results
Equity Trustees Limited (EQT) Half Year Results to 31 December 2012
Slide 22: Contents & Disclaimer
Contents & Disclaimer Disclaimer Contents Equity Trustees Limited ABN 46 004 031 298, Australian Financial Services Licence No 240975. This document was prepared by Equity Trustees Limited (“EQT”) and is only 1. Half Year Results to 31 provided for information purposes. It is not intended to take th
Slide 23: 1H 2013 Financial Results
1H 2013 Financial Results
Slide 24: Overview – HY to 31 Dec 2012
Overview – HY to 31 Dec 2012 9 Revenue +8% • Organic growth drives increase in the 9 Expenses +6% revenue of both Business Units • Margin improvement through cost 9 Operating margins +6% control 9 Profit before tax +15% • FUM continues to increase - favourable 9 EPS +9% market conditions for defensi
Slide 25: Overview – HY group results
Overview – HY group results Half Year Half Year 31 Dec 2012 31 Dec 2011 Change $m $m Operating revenue 22.5 20.7 8% Operating expenses (16.7) (15.7) (6 %) Operating profit before tax 5.8 5.0 15 % Income tax expense (1.7) (1.4) Operating profit after tax 4.1 3.6 14 % Non-operating items (net of tax)
Slide 26: Progress of key internal initiatives
Progress of key internal initiatives Initiative Status • Private Wealth Services Business Unit created 1 Restructuring • Single group‐wide administration and IT support unit formed • Strategic Business Development Project 2 Private Wealth Services underway Project “Foundation” 3 • Achieving timetabl
Slide 27: HY Revenue
HY Revenue Revenue increased 8.3% Investment Income ($m) $22.5m (Excludes profit on sale of investments) $20.7m 0.2 Business Unit Revenue ($m) $18.6m $18.7m 0.2 $18.1m 8.3% $16.9m increase 0.6 0.4 $15.8m 0.6 0.4 0.5 22.3 18.0 20.5 15.3 17.5 18.3 16.5 2007 2008 2009 2010 2011 2012 2013 7
Slide 28: HY Expenses
HY Expenses Operating costs increased 6% $16.7m $15.7m $13.7m $12.0m $12.0m $11.6m $10.6m 2007 2008 2009 2010 2011 2012 2013 8
Slide 29: HY Operating margin
HY Operating margin be ‘Trustees Operating Profit (Pre tax) ($m) = Operating Margin (°0) 2007 2008 2009 2010 2011 2012 2013
Slide 30: HY Operating revenue – composition
HY Operating revenue – composition 10
Slide 31: HY Reported earnings per share
HY Reported earnings per share Reported earnings per share at 49.3¢ per share Earnings Per Share Weighted average shares on issue ('000) 64.48 9,000 8,938 50.86 49.32 8,589 47.35 44.23 43.85 45.08 8,441 8,291 8,000 8,085 7,880 7,710 7,000 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2
Slide 32: Returns to shareholders
Returns to shareholders Increased fully-franked interim dividend 12
Slide 33: Sustained shareholder return
Sustained shareholder return 1 Jul 2005 to 31 Dec 2012 EQT total shareholder returns. Assumes all dividends are reinvested EQT total shareholder return + 92.8% S&P/ASX 200 Accum. Index + 51.5% S&P/ASX 200 Diversified - 16.0% Financials Accum. Index Base (100) taken at 1 July 2005 Source: IRESS 13
Slide 34: Business units - HY operations & performance
Business units - HY operations & performance HY Revenue HY FUM/FUA Target market / Business unit Key services 31 Dec 12 vs 31 Dec 12 vs channel 31 Dec 11 31 Dec 11 Private Wealth • Trusts & Estates • Private clients $11.9m $2,434m Services • Philanthropy • Aged Care clients + 5.2% + 5.7% (PWS) • Wea
Slide 35: Business unit HY overview – PWS
Business unit HY overview – PWS Operating revenue up 5.2% to $11.9m FUM at 31 December 2012 up 5.7% to $2,434m 11.9 2,434 11.3 2,303 2,294 9.5 2,110 8.4 8.2 1,917 8.1 1,841 7.5 1,637 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 15
Slide 36: Business unit HY overview – CFFS
Business unit HY overview – CFFS Operating revenue up 12.9% to $9.9m FUM at 31 December 2012 up 35.0% to $25,529m 25,529 9.9 9.3 18,914 8.8 18,403 8.6 8.3 16,929 7.4 7.8 15,795 13,955 12,488 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 16
Slide 37: Business HY update and summary
Business HY update and summary • Business continues to perform well • Positive momentum in revenue and operating margin in January – augurs well for full year in absence of any adverse external factors • Potential regulatory changes being monitored – CAMAC review of philanthropy fees, portability; A
Slide 38: Takeover Offer for The Trust Company
Takeover Offer for The Trust Company
Slide 39: EQT announced the offer on 21 February
EQT announced the offer on 21 February • EQT announced the intention to make a formal takeover offer for all of The Trust Company (“TRU”) • The Offer comprises: − 33 EQT shares for every 100 TRU shares − TRU shareholders retain up to 17 cents dividends per share − TRU shareholders may qualify for EQ
Slide 40: EQT + TRU = a value adding combination
EQT + TRU = a value adding combination Creation of a leading Australasian private and corporate trustee services provider – fulfilling a long-standing corporate opportunity for consolidation and efficiency gains. 20 Note: Refer to ASX announcement on 21 February 2013 for further information and deta
Slide 41: Key benefits – for EQT shareholders
Key benefits – for EQT shareholders Benefits are expected to increase earnings and dividends for all shareholders 1. Cost synergies of up to $8m p.a. is estimated 2. Opportunity to increase revenues by marketing the wide range of existing and new products/services across a larger network (particular
Slide 42: EQT has a strong track record of delivering
EQT has a strong track record of delivering EQT has delivered on our key initiatives. • Successfully restructured operations into two key business units • Implemented a single, group-wide systems structure for all support operations • Acquired and integrated aged care advisory business • Proven abil
Slide 43: EQT has consistently outperformed TRU up to announcement of the offer
EQT has consistently outperformed TRU up to announcement of the offer Base (100) taken at 20 10 year CAGR: 12.3% February 2003 10 year CAGR: 0.2% Source: IRESS (as at 20 February 2013 – prior to Offer announcement) 23 CAGR: Compound Annual Growth Rate – of share price performance (excludes dividends
Slide 44: EQT has the right team to deliver
EQT has the right team to deliver The Offer ensures that the best team is in place to integrate the two companies. • Board – All the current EQT Board remain – Intention to extend an invitation for up to 2 TRU directors to join the Board – Led by EQT’s Chairman, Mr Tony Killen OAM • Management – Bes
Slide 45: Change in share prices since announcement
Change in share prices since announcement • Shareholders of both EQT and TRU have benefited from the takeover offer to date – EQT share price +9% – TRU share price +19% • It is uncommon for the share price of both companies involved in a takeover to increase – A strong sign of confidence in the deal