Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — Shareholder Meeting (November 2009)
36 slides from Eqt's shareholder meeting presentation, Nov 6, 2009
Slide 1: Equity Trustees Limited 2009 Annual General Meeting
1 Equity Trustees Limited 2009 Annual General Meeting 6 November 2009
Slide 2: Board of Directors
Board of Directors Mr JA (Tony) Killen Mr Peter Williams Mr David Groves Non Executive Director Managing Director Non Executive Director Chairman Deputy Chairman Mr John McConnell Mr Barry Jackson Ms Alice Williams The Hon Jeffrey Kennett AC Non Executive Director Non Executive Director Non Executiv
Slide 3: Agenda
Agenda 1. Overview and highlights Mr Tony Killen 2. Operational performance Mr Peter Williams 3. Items of ordinary business Mr Tony Killen 4. Questions Trusted since 1888 3
Slide 4: Trusted since 1888
EOUITY © Trustees a i=) i=) a | 7 OLDER RE al RE ANNUAL REPORT 200 Trusted since 1888 4
Slide 5: S&P/ASX200 Index. July 2007 - June 2009
S&P/ASX200 Index. July 2007 - June 2009 7500 53.9% decline from 7000 peak (Nov ’07) to trough (Mar ’09) 6500 6000 5500 1H 2007/08 +1.0% 5000 2H 2007/08 (17.7)% 4500 4000 1H 2008/09 (28.6)% 3500 2H 2008/09 +6.2% 3000 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0 /0
Slide 6: Overview of 2009 financial year
Overview of 2009 financial year ¾ Lower profits, the direct impact of depressed investment markets. ¾ Sound underlying profitability, healthy operating margin, albeit in both cases below last year’s record highs. ¾ Strong cash flow generation. ¾ Strong balance sheet, cash reserves and no debt. ¾ Ful
Slide 7: Sensible focus on expense management
Sensible focus on expense management +30.8% +25.0% +21.1% 17.5% +18.0% +15.7% +14.1% +14.2% +14.6% 2004 2005 2006 2007 2008 2009 -7.7% Growth - operating revenue (net of gains on the sale of investments) Growth - operating expenses (net of depreciation/amortisation) (10.5%) (13.7%) Operating 18.5% 2
Slide 8: Profitability
Profitability ¾ Operating profit before tax down 24.7% to $10.9m $14.6m $11.1m $10.9m Operating profit before tax $6.6m $4.2m $3.1m 2004 2005 2006 2007 2008 2009 Trusted since 1888 8
Slide 9: Returns to shareholders
Returns to shareholders ¾ Full-year, fully-franked dividend maintained 110 110 ¾ Excess franking credits reduced Final (cps) Franking credits 7,335 7,311 Interim (cps) available 60 60 75 6,249 50 5,252 45 40 3,610 30 30 3,060 25 50 50 2004 2005 2006 2007 2008 2009 20 30 20 15 10 2004 2005 2006 2007
Slide 10: Payout ratio
Payout ratio ¾ Full-year dividend as percentage of NPAT 120% 111.7% 100% Note, change of policy to 70- 90% of NPAT (from 60-80%) 82.5% 80% 75.5% 71.5% 71.3% 65.9% 60% 40% 20% 0% 2004 2005 2006 2007 2008 2009 Dividend payout policy range Trusted since 1888 10
Slide 11: Sustained share price outperformance
Sustained share price outperformance 700 EQT Total Shareholder Return ¾ Assumes all dividends are reinvested. 600 1 July 2003 to 500 30 June 2009 EQT Total Shareholder Return + 183.2% 400 S&P/ASX 200 Accum. Index + 69.4% 300 Base (100) taken at 1 July 2003 200 100 S&P/ASX 200 Accumulation Index 0 8
Slide 12: Net asset base
Net asset base ¾ Strong net asset base. Nil debt. $52.0m $52.9m Other net assets $44.4m Liquid assets $36.4m No impairment charges on recent acquisitions $21.6m $16.5m 2004 2005 2006 2007 2008 2009 Trusted since 1888 12
Slide 13: Managing Director
Managing Director ¾ Peter Williams announced (in July) intention to retire. ¾ Continues to lead the business effectively while search for a replacement continues. ¾ Search is advanced but not yet complete. ¾ Company performance under Peter’s tenure has been outstanding. ¾ He leaves the business in v
Slide 14: S&P/ASX200 Index: 2008-09 + 2009-10 YTD
S&P/ASX200 Index: 2008-09 + 2009-10 YTD 6000 5500 5135.6 4977.4 5000 4743.6 4643.2 4600.5 4540.11 4479.1 4500 4244.0 4018.0 4000 3954.9 3780.5 3818.0 3742.5 3722.3 3540.7 3582.1 3500 3344.5 3000 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09 Jul-09 Aug-09 Sep-09
Slide 15: Sales update
Sales update ¾ Strong new client growth in Private Clients ¾ Renewed demand for specialist RE services ¾ Positive net funds inflow into Funds Management ¾ Corporate superannuation stable – boosted by past acquisitions Trusted since 1888 15
Slide 16: Looking ahead
Looking ahead Outlook for 2010: ¾ Any sustained market recovery will enhance sales and marketing opportunities and will be reflected in financial performance. ¾ Industry undergoing change – regulatory and structural. EQT is well positioned to respond. ¾ Company strategic direction is well establishe
Slide 17: Mr Peter Williams, Managing Director
Mr Peter Williams Managing Director Equity Trustees Limited Trusted since 1888 17
Slide 18: People, processes & systems = IP
People, processes & systems = IP 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 Processes Systems Which
Slide 19: Business units – operations & performance
Business units – operations & performance 2009 Revenue 2009 F/AUM Business unit Key services Target market vs 2008 vs 2008 Private Clients ¾ Wealth Management Private investors $7.6m $1,112m ¾ Personal superannuation (27.6%) (16.6%) ¾ Asset Management ¾ Trusts & Estates ¾ Philanthropy ¾ Tax Funds Ma
Slide 20: Business unit overview - Private Clients
Business unit overview - Private Clients Operating revenue down 27.6% to $7.6m AUM down 16.6% to $1,112m Significant one-off estates boost Cyclical downturn in estates business. Other business lines at run-rate allowing for impact of markets 1,490 10.4 1,303 1,333 9.3 1,128 1,112 7.6 998 5.9 6.1 5.2
Slide 21: Business unit overview – Funds Management
Business unit overview – Funds Management Operating revenue down 15.1% to $8.5m FUM down 18.1% to $1,938m 2,367 10.0 2,002 9.0 1,938 8.5 7.5 6.4 1,414 5.9 989 617 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Shift from Diversified across major asset classes growth assets • Positive ne
Slide 22: Business unit overview - Fund Services
Business unit overview - Fund Services Operating revenue down 15.1% to $8.1m FUA down 20.2% to $11,209m 13,845 14,046 9.6 8.1 11,130 11,209 7.7 5.6 7,211 3.1 4,130 2.1 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 • Ongoing enquiry from domestic and global investment managers as market
Slide 23: Business unit overview - Superannuation
Business unit overview - Superannuation Operating revenue up 6.7% to $8.5m Revenue - existing & acquired businesses Addition of Freedom 2.2 of Choice, MBC & TSM 2.0 8.5 7.9 5.9 6.3 5.3 5.3 4.4 4.4 2.9 3.4 2.9 3.4 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 FUM down 8.1% to $565m • On
Slide 24: Business update
Business update Regulatory changes ¾ EQT an active participant in encouraging national Trustee Company legislation. ¾ Changes expected to be introduced in 2010. ¾ Other government and industry inquiries being monitored. EQT will participate through industry channels as required. All business units w
Slide 25: Summary
Summary ¾ Impact of market volatility evident in 2009 ¾ Nevertheless, EQT responded well to challenges ¾ Ongoing business investment critical to future growth ¾ Cautious about 2010 despite improving markets Trusted since 1888 25
Slide 26: Agenda
Agenda 1. Overview and highlights Mr Tony Killen 2. Operational performance Mr Peter Williams Items of ordinary business Mr Tony Killen 4. Questions Trusted since 1888 26
Slide 27: Items of ordinary business
Items of ordinary business Item 1: To receive and consider the financial statements and the reports of the directors and auditor for the year ended 30 June 2009. Item 2: To adopt the remuneration report for year ended 30 June 2009. Item 3: To consider the election of directors. Trusted since 1888 27
Slide 28: Items of ordinary business – item 1
Items of ordinary business – item 1 Item 1: To receive and consider the financial statements and the reports of the directors and auditor for the year ended 30 June 2009. Trusted since 1888 28
Slide 29: Items of ordinary business – item 2
Items of ordinary business – item 2 Item 2: To adopt the remuneration report for year ended 30 June 2009. Trusted since 1888 29
Slide 30: Tracking remuneration vs DPS
Tracking remuneration vs DPS 16 14 Cumulative growth in Non-Executive Director remuneration 12 Cumulative growth in Executive remuneration 10 Cumulative growth in Dividends Per Share (DPS) 8 6 4 2 0 2004 2005 2006 2007 2008 2009 Trusted since 1888 30
Slide 31: Tracking remuneration vs TSR
Tracking remuneration vs TSR 18 16 Cumulative growth in Non-Executive Director remuneration 14 Cumulative growth in Executive remuneration 12 Cumulative growth in Total Shareholder Return (TSR) 10 8 6 4 2 0 2004 2005 2006 2007 2008 2009 Trusted since 1888 31
Slide 32: Item 2 – proxies received
Item 2 – proxies received To adopt the remuneration report for year ended 30 June 2009 In respect of item 2 of ordinary business, the following proxies have been received: For Against 2,461,694 86,787 Open (total) = 135,892 Open (held by EQT directors) = 115,397 Trusted since 1888 32
Slide 33: Items of ordinary business – item 3
Items of ordinary business – item 3 Item 3 – to consider the election of directors Ms Alice Williams retires in accordance with Rule 49 of the company’s Constitution and, being an eligible person, offers herself for re-election. Trusted since 1888 33
Slide 34: Item 3 – proxies received
Item 3 – proxies received To consider the re-election of Ms Alice Williams In respect of item 3 of ordinary business, the following proxies have been received: For Against 2,535,743 2,224 Open (total) = 156,392 Open (held by EQT directors) = 135,897 Trusted since 1888 34
Slide 35: Agenda
Agenda 1. Overview and highlights Mr Tony Killen 2. Operational performance Mr Peter Williams 3. Items of ordinary business Mr Tony Killen Questions Trusted since 1888 35
Slide 36: ‘[rustees
EO ‘[rustees Trusted since 1888
Equity Trustees — Shareholder Meeting (November 2009) on 6ix