Eqt Holdings Ltd. · ASX:EQT
Eqt — H1 2025 Earnings Presentation
34 slides from Eqt's earnings presentation, Feb 20, 2025
Slide 1: Investor Presentation: Results for Half Year Ended 31 December 2024
INVESTOR PRESENTATION RESULTS FOR HALF YEAR ENDED 31 DECEMBER 2024 Mick O’Brien, Managing Director Johanna Platt, Chief Financial Officer EQT HOLDINGS LIMITED 20 FEBRUARY 2025
Slide 2: Agenda
AGENDA 1 OVERVIEW 2 OPERATING HIGHLIGHTS 3 FINANCIAL REVIEW 4 STRATEGY & OUTLOOK 2
Slide 3: Overview
OVERVIEW
Slide 4: Strong Growth as Transformation Nears Completion
OVERVIEW STRONG GROWTH AS TRANSFORMATION NEARS COMPLETION • Continuing strong FUMAS growth to $224bn – 26% increase on PCP • Revenue growth of 4.8% (7.6% excluding UK/Ireland and AET platform businesses) • AET integration successfully completed, and Insignia TSA exited as planned on 1 December • Dep
Slide 5: Other Achievements
OTHER ACHIEVEMENTS ✓ Strengthened Executive Leadership Team, onboarded new CFO and CRO ✓ Acquired ANZ will bank (nil consideration) – 6,000 wills, HNW client base ✓ Deployed a number of other new technology platforms: ̶ Workday Human Capital Management and Payroll modules ̶ Workday Finance Procureme
Slide 6: Closing Out a Period of Transition
CLOSING OUT A PERIOD OF TRANSITION FY23 FY24 1H25 FY25 Acquisition November 2022 AET Platform Exit Outsourcing SAF Administration to AET SuperConcepts Outsourcing Custody to HUB24 Client Transitions from EQT & Insignia Technology Modernisation Development of NavOne Workday Human Workday Human Capita
Slide 7: Operating Highlights
OPERATING HIGHLIGHTS Mick O’Brien, Managing Director
Slide 8: Financial Results
FINANCIAL RESULTS STATUTORY UNDERLYING FUMAS $224.0b 22.1% $224.0b 25.8% TOTAL REVENUE $89.7m 4.7% $89.4m 6.5% NPAT $12.3m 2.9% $16.4m 7.4% EPS 45.90 cps 3.4% 61.49 cps 7.9% INTERIM DIVIDEND 55 cents 7.8% Note: vs PCP 8
Slide 9: Consistently Delivering Growth & Shareholder Returns
CONSISTENTLY DELIVERING GROWTH & SHAREHOLDER RETURNS Funds Under Management Underlying Revenue Dividend & Supervision1 4 Year CAGR 17.3% 4 Year CAGR 5.7% 4 Year CAGR 12.7% UNPBT 4 Year CAGR 10.2% $b $m cps 240 100 60 120% 224.0 55 89.4 84.0 51 48 49 200 50 100% 178.1 80 44 160 150.1 61.1 40 90.3% 89
Slide 10: TWS Operating Highlights
TWS OPERATING HIGHLIGHTS Successfully completed the AET integration program, on time and on budget and meeting synergy Secured additional large community trust objectives appointment during the period Completed exit of AET Platform business, Achieved strong growth in Health & Personal Injury outsour
Slide 11: CSTS Operating Highlights
CSTS OPERATING HIGHLIGHTS 39 managed investment schemes and custody Appointed trustee of Perpetual superannuation appointments onboarded, with the launch of 3 products ($6b FUMAS) – 3 public offer funds and flagship listed investment trusts delivered in record Small APRA Funds (SAFs) from March 2025
Slide 12: Market Leadership in Australian Fiduciary & Trustee Services
MARKET LEADERSHIP IN AUSTRALIAN FIDUCIARY & TRUSTEE SERVICES Australia’s leading Independent Trustee Superannuation1 Small APRA Funds1 Responsible Entity for Health and Personal Managed Schemes Injury Clients $73b of assets $577m of assets $130b of assets $6.4b assets 12 funds 320 funds 336 schemes
Slide 13: Financial Review
FINANCIAL REVIEW Johanna Platt, Chief Financial Officer
Slide 14: Group Financial Performance
GROUP FINANCIAL PERFORMANCE $m REVENUE Net organic growth $6.3m, 7.6% 92 2.3 0.2 89.4 CONTINUING OPERATIONS 1H25 1H24 1H25 88 3.8 V $m $m 1H24 84 84.0 Revenue 89.4 84.0 6.5% (0.9) 80 Underlying expenses1 (63.8) (56.8) (12.3%) 1H24 AET platform CSTS-A TWS Other income 1H25 Underlying NPBTA 25.6 27.2
Slide 15: Reconciliation of Expenses
RECONCILIATION OF EXPENSES • Total expenses for continuing operations $m increased by $7.5m on pcp 75 • Significant expense items for 1H24 were $2.8m AET integration, $0.9m Technology initiatives and $0.5m transaction costs 4.7 69.8 relating to exit of UK operations 70 • Underlying expenses increase
Slide 16: EPS & Dividends
EPS & DIVIDENDS DIVIDENDS cps 56 100% 90.3% 89.5% 1H25 1H24 1H25 90% V 79.0% 79.8% 55 54 76.7% 76.6% 1H24 74.9% 80% Underlying earnings per share 53 70% 61.49 66.78 (7.9%) 52 (cents) 60% Continuing Statutory earnings per 51 48.16 54.63 (11.8%) 50 50% share (cents) 50 40% 49 49 Interim dividend (cent
Slide 17: TWS Financial Results
TWS FINANCIAL RESULTS REVENUE $m Net organic growth $2.3m, 4.7% 53 1H25 1H24 1H25 4.5 50.9 V 51 49.5 $m $m 1H24 49 (0.9) Revenue 50.9 49.5 2.9% 47 (1.6) (0.6) Underlying expenses1 (36.0) (32.6) (10.4%) 45 1H24 AET platform One off One off Organicgrowth Pricing adj of a Organic growth 1H25 adjustment
Slide 18: CSTS Financial Results
CSTS FINANCIAL RESULTS REVENUE $m 1H25 1H24 1H25 40 3.2 38.3 V 38 $m $m 1H24 36 0.6 Revenue 38.3 34.5 11.0% 34.5 34 Underlying expenses2 (27.8) (24.2) (14.9%) 32 Underlying NPBTA 10.5 10.3 1.9% 1H24 ORFR Interest Organic growth and 1H25 Investment market impact Underlying NPBTA margin (%) 27.4 29.9
Slide 19: Cashflow
CASHFLOW $m 150 • Cash position excludes cash held for Operational Risk 140 Financial Reserves • Net cash flow from operations 130 13.9 was $13.9m, a $11.2m reduction on PCP due to payment of 120 redundancy and technology 113.2 costs relating to AET integration (13.2) and UK exit 110 10.0 (8.2) • Gr
Slide 20: AUM & Revenue Sensitivity
AUM & REVENUE SENSITIVITY AUM MARKET EXPOSURE FY25 AUM MARKET EXPOSURE 100% • Over 50% of reported AUM 40% 42% 43% linked to Australian and global 80% equity markets. CTS weighted more heavily to global equities 60% 41% due to larger number of global 18% 34% 40% fund managers 40% 20% • 20% to 30% of
Slide 21: Strategy & Outlook
STRATEGY & OUTLOOK Mick O’Brien, Managing Director
Slide 22: Industry Dynamics Favour Our Model
INDUSTRY DYNAMICS FAVOUR OUR MODEL Population Wealth Family Australia’s population is ageing due to increasing life Total net superannuation assets in Australia projected to Estimated $3.5 trillion in intergenerational wealth will be expectancy and declining fertility rates. continue to increase to
Slide 23: Strongly Positioned for Next Phase of Growth
STRONGLY POSITIONED FOR NEXT PHASE OF GROWTH Leading market positions Targeting new and growing Leveraging investment to will drive ongoing growth markets propel growth • Superannuation market leader • Target markets where EQT is • Transformation turning point – bordering on top 10 – now under-repre
Slide 24: FY25 Outlook
FY25 OUTLOOK • Focus will be to capitalise on sales momentum in CSTS: ̶ Complete pipeline of new CTS Fund Services appointments 40+ establishments in progress, with additional 10 acceptances ̶ Complete three new superannuation fund take-ons and a range of other fund consolidation • Begin implementat
Slide 25: The Leading Independent Australian Trustee
THE LEADING INDEPENDENT AUSTRALIAN TRUSTEE Strong independent model – increasingly favoured High employee engagement and customer by the market satisfaction Powerful industry dynamics – intergenerational Technology and people investments enhance wealth transfer and continued growth in the ability to
Slide 26: Questions
QUESTIONS
Slide 27: Appendix
APPENDIX
Slide 28: Group Financial Performance vs 2H24
GROUP FINANCIAL PERFORMANCE VS 2H24 $m REVENUE Net organic growth $3.5m 92 1.9 0.3 89.4 CONTINUING OPERATIONS 1H25 2H24 1H25 88 1.3 86.5 V $m $m 2H24 84 (0.6) Revenue 89.4 86.5 3.4% 80 Underlying expenses1 (63.8) (59.5) (7.2%) 2H24 AET platform CSTS-A TWS Other income 1H25 Underlying NPBTA 25.6 27.0
Slide 29: Expenses vs 2H24
EXPENSES VS 2H24 $m • Total expenses for continuing businesses increased by $0.9m on prior 80 half • Significant expense items for 2H24 were $6.6m AET integration, $1.1m 75 Technology initiatives and $0.4m transaction costs relating to UK exit 4.7 69.8 70 68.9 8.1 • Underlying expenses increased by
Slide 30: EPS & Dividends vs 2H24
EPS & DIVIDENDS VS 2H24 DIVIDENDS cps 56 100% 89.5% 1H25 2H24 1H25 90% V 54 79.8% 55 77.8% 79.0% 76.7% $m $m 2H24 80% 53 Underlying earnings per share 52 70% 61.49 66.45 (7.5%) (cents) 60% 50 Continuing earnings per share 50 48.16 43.65 (10.3%) 50% (cents) 49 48 40% Interim dividend (cents per share
Slide 31: TWS Financial Results vs 2H24
TWS FINANCIAL RESULTS VS 2H24 $m REVENUE Net organic growth $1.9m 53 3.8 50.9 51 1H25 2H24 1H25 49.6 V 49 $m $m 2H24 (0.6) 47 (1.4) Revenue 50.9 49.6 2.7% (0.5) 45 Underlying expenses1 (36.0) (34.1) (5.6%) 2H24 AET platform One One off off Organic Pricing adj of a Organic growth 1H25 adjustments eve
Slide 32: CSTS Financial Results vs 2H24
CSTS FINANCIAL RESULTS VS 2H24 $m REVENUE 39 1H25 2H24 1H25 0.8 38.3 V 38 0.5 $m $m 2H24 37.0 37 Revenue 38.3 37.0 3.6% 36 Underlying expenses2 (27.8) (25.4) (9.4%) 35 2H24 ORFR Interest Organic growth and 1H25 Underlying NPBTA 10.5 11.6 (9.5%) Investment market impact Underlying NPBTA margin (%) 27
Slide 33: Glossary of Terms
GLOSSARY OF TERMS TERM DEFINITION AET Australian Executor Trust (business acquired by EQT in November 2023) AUM Assets under management Average basis points Average revenue yield based upon average FUMAS over the reporting period Continuing Financial measures excluding discontinued operations CTS-EU
Slide 34: EQT Holdings Limited contact and disclaimer
EQT Holdings Limited ABN 22 607 797 615 Level 1, 575 Bourke Street Melbourne VIC 3000 1300 133 472 www.eqt.com.au DISCLAIMER Forward Looking Statements This Presentation contains forward-looking statements. Forward-looking statements include all statements other than statements of historical or pres