Eqt Holdings Ltd. · ASX:EQT
Eqt — Investor Presentation (April 2024)
108 slides from Eqt's investor presentation, Apr 11, 2024
Slide 1: Investor briefing: Equity Trustees' foundations for success
For personal use only . EQT HOLDINGS LIMITED @ Equity Trustees ASX ANNOUNCEMENT 11 April 2024 Investor briefing: Equity Trustees’ foundations for success Presentation for 11 April in Sydney As announced on 19 March 2024, EQT Holdings Limited (ASX:EQT), which operates under the brand name Equity Trus
Slide 2: Investor Briefing: Foundations for Success
For personal use only EQT HOLDINGS LIMITED INVESTOR BRIEFING FOUNDATIONS FOR SUCCESS Sydney – Sofitel Sydney Wentworth 11 April 2024
Slide 3: Agenda
AGENDA Introduction For personal use only Q3 Financial update Trustee Wealth Services (TWS) Corporate & Superannuation Trustee Services (CSTS) People – our greatest asset Risk management – our core capability Technology – major developments on track Outlook & conclusion 2
Slide 4: Introduction
For personal use only INTRODUCTION Mick O’Brien Managing Director
Slide 5: About Us
ABOUT US $183.8b For personal use only 2 in assets Established 1888 #5 in Australia 3 146 years young! 1 498 Market Capitalisation $770m 4 Staff Protecting over Supporting over 850,000 200 HQ in Melbourne beneficiaries, Fund managers, super fund Presence in Sydney, Perth, members and providers and c
Slide 6: Equity Trustees specialises at the apex of the wealth value chain
EQUITY TRUSTEES SPECIALISES AT THE APEX OF THE WEALTH VALUE CHAIN For personal use only Trusteeship Asset Administration / Advice Custody Management Registry • Fit for purpose trustee • Cross sell to TWS • Service provided for • Not provided to the investment clients real assets only1 market managem
Slide 7: Significant out-performance
SIGNIFICANT OUT-PERFORMANCE 250 EQT +122% For personal use only +175% inc. dividends 200 ASX 200 +54% +112% inc. dividends 150 100 03/2016 09/2016 03/2017 09/2017 03/2018 09/2018 03/2019 09/2019 03/2020 09/2020 03/2021 09/2021 03/2022 09/2022 03/2023 09/2023 03/2024 Establishing the foundations New
Slide 8: Consistent growing dividends
CONSISTENT GROWING DIVIDENDS Cents For personal use only 100 99 97 90 90 91 90 82 1H24 80 51 cents 71 68 70 60 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Maintained dividend in covid impacted year 7
Slide 9: Our purpose and vision
For personal use only Our purpose is to help people take care of their future Our vision is to be Australia’s leading trustee company
Slide 10: Our values are the core of who we are
OUR VALUES ARE THE CORE OF WHO WE ARE For personal use only Trust is earned TRUSTED ACCOUNTABLE EMPOWERING Trusteeship is a privilege and requires accountability We strive to empower clients and our employees 9
Slide 11: T4 Targets: balancing stakeholder needs
T4 TARGETS: BALANCING STAKEHOLDER NEEDS IS THE KEY TO OUR SUCCESS For personal use only T1 T2 T3 T4 Improving Lifting Growing Deepening client employee shareholder community satisfaction engagement value impact Our clients are Our goal is to have Clients are best We are proud of the surveyed every y
Slide 12: Our four key assets provide a competitive advantage
OUR FOUR KEY ASSETS PROVIDE A COMPETITIVE ADVANTAGE For personal use only People Licences Brand Balance sheet • Experienced • No other Australian • 136 years • Low gearing at specialists in all company has our • Synonymous with 11.5%1 aspects of trusteeship suite of trustee ‘trust’ • Cash, liquid as
Slide 13: Trusted by major financial institutions & clients
TRUSTED BY MAJOR FINANCIAL INSTITUTIONS & CLIENTS Australian fund Global fund Superannuation Charitable For personal use only managers managers providers foundations & community trusts & 12
Slide 14: Experienced Board of Directors
EXPERIENCED BOARD OF DIRECTORS For personal use only CAROL SCHWARTZ AO Chair 4 years KEVIN J ELEY D. GLENN SEDGWICK CATHERINE ROBSON MICK O’BRIEN Independent Director Independent Director Independent Director Managing Director 12 years 7 years 4 years 8 years TIM HAMMON KELLY O’DWYER ROBERT DALTON I
Slide 15: Refreshed experienced leadership team
REFRESHED EXPERIENCED LEADERSHIP TEAM For personal use only MICK O’ BRIEN Managing Director 8 years MORGAN LONGLEY Executive Assistant ANDREW GODFREY GEORGIE TAYLOR IAN WESTLEY PHILIP GENTRY PHING LEE Executive General Manager, Executive General Executive General Chief Financial Officer Chief Techno
Slide 16: Market leadership positions
MARKET LEADERSHIP POSITIONS PRIVATE CLIENT BUSINESSES CORPORATE & SUPERANNUATION TRUSTEE SERVICES For personal use only TRUSTEE & WEALTH SERVICES CORPORATE • Philanthropy – Leading provider • Responsible Entity Services – long term clear leader • Health & Personal Injury – Leading provider • Custody
Slide 17: Increasingly diversified business revenue
INCREASINGLY DIVERSIFIED BUSINESS REVENUE CSTS - Corporate Group Trustee Wealth Services For personal use only Investment Mandates UK & 3% Ireland PCT - Co-Trustee Debt & Sec 2% CSTS – Super 4% 1% 18% Custody & Trustee Continuing Trusts Real Assets CSTS - Wealth 8% 1% Corporate Services 23% 59% Heal
Slide 18: Client concentration is limited
CLIENT CONCENTRATION IS LIMITED For personal use only TOTAL NO. OF # CSTS – REVENUE # TWS # CSTS - SUPER CLIENTS CORP Greater than 1% of Group Revenue 7 2 2 3 (~$1.7m) 0.5% to 1% of Group Revenue (~$0.85m 16 5 7 4 - $1.7m) Total 23 7 9 7 Underlying client concentration within CSTS - Corporate portfo
Slide 19: Client turnover is very low
CLIENT TURNOVER IS VERY LOW SUBJECT TO For personal use only BUSINESS UNIT POTENTIAL FUNDS OTHER REASONS FOR LOSS OUTFLOW CSTS • Superannuation1 Voluntary retirement by EQT2 or SFT3 • Funds Services1 Voluntary retirement by EQT and requires unitholder vote • Debt and Securitisation Maturity
Slide 20: Summary
SUMMARY For personal use only Our focused specialist strategy is crystal clear and is delivering results The Leadership team have consistently executed on our plans Client satisfaction and employee engagement is high We are very focused on delivering over the next two-three years and beyond 19
Slide 21: Q3 Financial Update
For personal use only Q3 FINANCIAL UPDATE Philip Gentry Chief Financial Officer & Chief Operating Officer
Slide 22: Long-term upward FUMAS trend
LONG-TERM UPWARD FUMAS TREND UNDERPINNING STRONG ORGANIC GROWTH MOMENTUM For personal use only $b TOTAL EQT FUMAS1 200 194.7 183.5 180 160 160.1 • FUMAS up 6.1% on 31 144.2 148.9 December to $194.7b 140 • Significant new business activity in both TWS and 120 CSTS 101.0 100 • Discontinued & discontin
Slide 23: All businesses contributing to FUMAS growth
ALL BUSINESSES CONTRIBUTING TO FUMAS GROWTH $b CSTS – CORPORATE FUS1 CSTS – SUPERANNUATION FUS1 $b For personal use only 120 112.4 66 106.4 64.3 110 64 100 90 62 80 59.8 60 70 58 60 50 5.3 56 1H24 31/03/24 1H24 31/03/24 Discontinued operations (UK/Ireland) $b TWS FUMAS2,3 ASSET MANAGEMENT – FUM4,5 $
Slide 24: AET integration – delivery on track
AET INTEGRATION – DELIVERY ON TRACK For personal use only MILESTONES COMPLETED Q4 2023 EXIT OF THE PLATFORM BUSINESS MILESTONES Q3 FY24 Q4 FY24 NOV 2024 • SAF administration migrated to • Establish outsource SAF new administrator • Agreement to outsource administration operating model SAF administra
Slide 25: Overall synergies target increased & implementation costs on track
OVERALL SYNERGIES TARGET INCREASED & IMPLEMENTATION COSTS ON TRACK For personal use only NET COST SYNERGIES REVENUE SYNERGIES IMPLEMENTATION COSTS CAPITAL RELEASE Targeted amount $2.9m p.a ($3.5m p.a.) $5.8m p.a. ($3.3m p.a.) $22m ($22m) $10m (nil) Timing Achieve run-rate in FY25 $0.4m in FY23 Acros
Slide 26: EQT's revenues are leveraged to equity markets
EQT’S REVENUES ARE LEVERAGED TO EQUITY MARKETS AS FEES LARGELY ASSET-BASED For personal use only 1H24 TOTAL FUMAS PROXY LEVERAGE Leverage correlation to market levels REVENUE1 AS AT 1H24 is dependent on: • Mix of asset-based fees and non- TWS $48.7m $17.6b 50%-60% to average daily ASX 200 asset base
Slide 27: Trustee Wealth Services
For personal use only TRUSTEE WEALTH SERVICES Ian Westley Executive General Manager, Trustee & Wealth Services
Slide 28: Trustee Wealth Services – leadership team
TRUSTEE WEALTH SERVICES – LEADERSHIP TEAM For personal use only IAN WESTLEY Executive General Manager, Trustee Wealth Services 17 years JO MAHONEY Manager, Office of TWS 11 years ERIC BYLSMA AARON TUNKS JODI KENNEDY RAVI MALHOTRA General Manager, Technical General Manager, Private Trustee General Ma
Slide 29: TWS services
TWS SERVICES Traditional trustee services Contemporary trustee & other services For personal use only Estate Planning Health & Personal Injury Estate Management Active Philanthropy Continuing (Testamentary) Trusts Native Title & Community Trusts Perpetual Charitable Trusts Financial Advice Investmen
Slide 30: TWS positioned to benefit from changing Australian demographics
TWS POSITION TO BENEFIT FROM CHANGING AUSTRALIAN DEMOGRAPHICS For personal use only Acting as a fiduciary underpins all our private client trustee services with our growth to be supported by The over 80s being the fastest growing The government’s stated objective to population cohort double philanth
Slide 31: Impact of AET acquisition
IMPACT OF AET ACQUISITION • Scale in all markets For personal use only • Strong presence in all mainland states Legend: AET EQT TWS * Depicts FUMAS & staff spread at the time of acquisition (1 December 2022) 30
Slide 32: Traditional trustee services life cycle
TRADITIONAL TRUSTEE SERVICES LIFE CYCLE OF TRUSTEE SERVICES For personal use only Perpetuity Single years to multi decades Average 15 years Asset Management Average 9 months up to 2 years Philanthropic Trust Management Estate Estate Planning Will Bank Management Continuing Trust Management Will bank
Slide 33: Client lifecycle & cross sell opportunity
CLIENT LIFECYCLE & CROSS SELL OPPORTUNITY For personal use only Asset Management Philanthropic Trust Management Estate Continuing Trust Estate Planning Will Bank Management Management Asset Management Advice 32
Slide 34: Complexity of traditional business
COMPLEXITY OF TRADITIONAL BUSINESS For personal use only • Long lead time from Estate Planning to Estate Management • Not dealing with actual client beyond Estate Planning • Unique skill set required to manage client base • No other business provides all these services Business Unit Team Size Estate
Slide 35: Leading market positions in traditional trustee business
LEADING MARKET POSITIONS IN TRADITIONAL TRUSTEE BUSINESS For personal use only Client # FUM Asset Tenure Management Estate Planning 200,000 in Willbank N/a N/a 15 years Estate Management 525 $472m N/a Up to 2 years On average 20- Continuing Trusts 1,123 $1,258m Yes 30 years Perpetual Charitable Trus
Slide 36: The future of philanthropy
THE FUTURE OF PHILANTHROPY For personal use only Two segments to market • Invested in technology for growth • Perpetual Charitable Trusts − iPhi technology has supported the growth of the DAF − Granted over $120m in FY23 market in the US − 2019 DAF1 giving has more than doubled in 5 years. − Deep se
Slide 37: Native title overview
NATIVE TITLE OVERVIEW • Every client is unique although # clients by location 2 underlying structures are either For personal use only ~$750 million funds on behalf of 3 − Charitable Trusts traditional owner groups − Direct Benefit Trusts 2 5 • 16 employees with deep understanding of Native Title We
Slide 38: Health & personal injury overview
HEALTH & PERSONAL INJURY OVERVIEW For personal use only 5-10 years + EQT appointed as Trustee / Financial Manager (Typically invested in Superannuation) Referrals from personal injury lawyers • Lawyers have strong relationships with client due to length of time to compensation • Both lawyers and cli
Slide 39: Health & personal injury overview
HEALTH & PERSONAL INJURY OVERVIEW For personal use only # employees in Our team has great each office experience, scale and presence in all states Clients have unique needs 7 • Recruitment is difficult; 9 empathy, resilience, 3 prepared to make hard decisions 8 • Clients prefer local support Client
Slide 40: Group dedicating more resources to business development
THE GROUP IS DEDICATING MORE RESOURCES TO BUSINESS DEVELOPMENT For personal use only Business Development Business Unit Team Size Team Average tenure Estate Planning H&PI Philanthropy 6 9 19 27 20 Total years of industry experience Native Title Trusts Continuing Trusts Estate Management 142 16 12 21
Slide 41: Use of asset management capability
SUMMARY – USE OF ASSET MANAGEMENT CAPABILITY For personal use only Business Unit FUM Allocation to Asset Management Continuing Trusts $503m High Perpetual Charitable Trusts $746m High Advice $799m Low Health & Personal Injury $4,066m Low Active Philanthropy $2,628 Medium Native Title Trusts $1,258 L
Slide 42: Summary – long duration business
SUMMARY – LONG DURATION BUSINESS BUSINESS UNIT FUM DURATION COMMENT CAPITAL ACCESS For personal use only Estate Planning N/A 15 years At Point of Sale N/A Up to 2 Varies between 6 and 24 Estate Management $472m Fully years months 20-30 years Considerable variation in Continuing Trust $1,258m Not gen
Slide 43: Summary
SUMMARY For personal use only Great talent Diversified revenue lines Long tenure clients Low client concentration risk Favourable societal demographic Business requires long-term focus trends and investment to be successful New market opportunities powered Strong market positions by technology being
Slide 44: Corporate & Superannuation Trustee Services
For personal use only CORPORATE & SUPERANNUATION TRUSTEE SERVICES Andrew Godfrey Executive General Manager, Corporate & Superannuation Trustee Services
Slide 45: CSTS – leadership team
CSTS – LEADERSHIP TEAM For personal use only ANDREW GODFREY Executive General Manager, Corporate & Superannuation Trustee Services 1 year KAREN COURT Executive Assistant 3 years DAVID WARREN JOHNNY FRANCIS JAMES CONNELL CRISTINA STAREK MARY O’CONNOR RUSSELL BEASLEY TBC* General Manager, General Mana
Slide 46: CSTS ~$170B across 520+ funds/accounts
CSTS ~$170B ACROSS 520+ FUNDS/ACCOUNTS Vision: To be the leading premium provider of corporate and superannuation trustee services in Australia: For personal use only • Delivering optimal outcomes for members/unitholders and • Being the independent trustee of choice CTS STS Clients Local & internati
Slide 47: Trusted by major financial institutions & clients
TRUSTED BY MAJOR FINANCIAL INSTITUTIONS & CLIENTS Australian fund Global fund Superannuation For personal use only managers managers providers & 46
Slide 48: Unrivalled access to third party service providers
UNRIVALLED ACCESS TO MORE THAN 50 THIRD PARTY SERVICE PROVIDERS For personal use only UNIT REGISTRY / CUSTODIANS AUDITORS ADMINISTRATION EXCHANGES & INSURERS MARKET MAKERS PRIME BROKERS
Slide 49: CSTS – deep expertise
CSTS – SUPERANNUATION – DEEP EXPERTISE Superannuation Services Fund Services Debt & Securitisation Services, Custody & Real Assets For personal use only Team Average tenure Team Average tenure Team Average tenure 39 3.8 52 4.0 7 3.7 Average years of industry experience Average years of industry expe
Slide 50: CSTS – Superannuation
For personal use only CSTS – SUPERANNUATION
Slide 51: About us
ABOUT US CSTS – Superannuation is Australia’s GROWTH IN BUSINESS For personal use only leading specialist, independent superannuation trustee with capabilities $70B 15 15 14 900,000 14 that can be scaled and leveraged across $60B 800,000 multiple fund types using a common 12 11 700,000 infrastructur
Slide 52: About us (continued)
ABOUT US (CONTINUED) For personal use only FUS by product type ($b) Members by product type $.41b $0.7b 651 4 funds 155,000 210,000 $13.3b 6 funds $36.5b 4 funds 423,000 Platform Master Trust Legacy * SAFs Platform Master Trust Legacy * SAFs * Legacy: Closed funds running off 51
Slide 53: At the centre of the wealth value chain
AT THE CENTRE OF THE WEALTH VALUE CHAIN Superannuation structure For personal use only Client Promoter / Originator Superannuation Trustee APRA / RSE Licensee Fund Financial Fund Managers Insurers administrator Statement Auditor Fund / Members Custodian / Advisors Asset Consultant Call Centre Prime
Slide 54: Our value proposition
OUR VALUE PROPOSITION Assisting fund promoters • Material reduction in risk for the fund promoter For personal use only through an unconflicted • Reducing the inherent compliance burden associated with an in-house trustee • STS manages the relationship with the regulator specialist superannuation •
Slide 55: Australian superannuation industry dynamics
AUSTRALIAN SUPERANNUATION INDUSTRY DYNAMICS FUM has grown by over 50% in six years, while at the same time the number of funds has almost halved. For personal use only Total superannuation industry FUM $b $2,500 200 $2,000 150 Number of funds $1,500 100 $1,000 50 $500 $- 0 2017 2018 2019 2020 2021 2
Slide 56: Regulatory changes
REGULATORY CHANGES • The superannuation sector is undergoing a substantial volume of regulatory change For personal use only • Given industry consolidation and the increasing regulatory burden, we see strong opportunities for demand for our services and the value proposition as an independent truste
Slide 57: Strategy
STRATEGY For personal use only To be the leading superannuation trustee in Australia Optimised member outcomes Independent trustee of choice BUSINESS GROWTH CUSTOMER SERVICE CAPABILITY COMMUNITY • Additional funds under • Continuously deliver • Be highly regarded for our • Recognised as the supervis
Slide 58: Summary
SUMMARY For personal use only Growth from a diverse range of fund types and sizes Regulator focus on member outcomes and service is driving interest in our model Delivering on transformation agenda Leveraging capability and capacity through the combination of our Corporate and Superannuation trustee
Slide 59: CSTS – Corporate
For personal use only CSTS – CORPORATE
Slide 60: Overview
OVERVIEW LEADING AUSTRALIAN PROVIDER OF FIDUCIARY SERVICES TO MANAGED FUNDS For personal use only CSTS - CORPORATE BUSINESS UNIT Debt Capital Markets Fund Services (FS) Custody and Real Assets Sub-Business Unit (DCM) & Securitisation Clients Local & international Property investment Debenture & note
Slide 61: Overview
OVERVIEW Fund Manager Locations1 Asset Allocation FUS1 Fund Types (by FUS)1 For personal use only Other, 4% Asia, 5% Unregistered funds - non- Australian Equities discretionary Other (Property, 20% 14% Multi-strategy, Europe, 12% alternatives) Unregistered 31% funds - Australian FI discretionary 5%
Slide 62: DCM, securitisation, custody & real assets
DCM, SECURITISATION, CUSTODY & REAL ASSETS DCM & Securitisation Custody and Real Assets For personal use only Services • Securitisation • REIT and large property trust RE/trustee • Loan markets • Managed Investment Trusts (MITs) (offshore • Security, note/bond trustee asset managers) • Issuing and p
Slide 63: Funds management industry
FUNDS MANAGEMENT INDUSTRY MANAGED FUNDS INDUSTRY CONTINUES TO EXPERIENCE STRONG GROWTH, UNDERPINNED BY MANDATED GROWTH IN SUPERANNUATION SECTOR For personal use only • Total superannuation assets increased 8.5% over the twelve- Australian market snapshot3 months to September 20231 • 647 Fund Manager
Slide 64: Our role as trustee / responsible entity
OUR ROLE AS TRUSTEE / RESPONSIBLE ENTITY (RE) • Managed Funds are typically structured as Managed Investment Schemes For personal use only Client (MIS) Investment manager - Regulated by Chapter 5C of the Corporations Act - Governed by constitution or trust Responsible deed ASIC Entity / Trustee • If
Slide 65: Our value proposition
OUR VALUE PROPOSITION • Material reduction in risk for the investment manager Assisting investment • Reducing the inherent compliance burden associated with an in-house trustee (including removing the For personal use only managers with an need for an RE Board/Compliance Committee) unconflicted, spe
Slide 66: Strategy
STRATEGY To be the leading premium provider of trustee services to domestic and For personal use only global fund managers in Australia BUSINESS GROWTH CUSTOMER SERVICE CAPABILITY COMMUNITY • Continue growth rates of • Deliver client • Be highly regarded for our • Recognised as the new clients and f
Slide 67: Summary
SUMMARY For personal use only Strong pipeline of growth opportunities Enhancing client service proposition Delivering on transformation agenda Leveraging capability and capacity through the combination of our Corporate and Superannuation trustee businesses 66
Slide 68: Bringing together CTS and STS
For personal use only BRINGING TOGETHER CTS AND STS
Slide 69: Rationale for combination
RATIONALE FOR COMBINATION LEVERAGING CAPACITY & CAPABILITIES OF EACH BUSINESS For personal use only KEY DRIVERS 1. To enable an uplift in client/member service quality and improved, consistent processes and procedures 2. To support achieving economies of scale and be positioned for profitable growth
Slide 70: Transformation program – 2024
TRANSFORMATION PROGRAM – 2024 ONGOING PROGRAM TO UPLIFT THE WAY IN WHICH WE DO BUSINESS For personal use only Area Project examples Client and service segmentation • Strategic account planning for our most valued clients • Tiered service levels (and pricing) • Increase touch points with clients and
Slide 71: Summary
SUMMARY For personal use only Ongoing investment to support growth Continuing to mature our approach to enable scale Leverage data to make decisions & provide additional value to the client Simplify and streamline existing book of business Design and implement next generation corporate trustee servi
Slide 72: People
For personal use only PEOPLE Georgie Taylor Executive General Manager, People
Slide 73: Our vision
For personal use only Our vision is to be Australia’s leading trustee company A company with purpose, forming trusted relationships to look after the interests of beneficiaries, members and investors
Slide 74: People strategy
PEOPLE STRATEGY For personal use only TO ENABLE A COLLABORATIVE, INCLUSIVE AND EVOLVING WORKFORCE Attract and retain high Build internal capability Maintain a values Better enable employees performing employees in to meet the needs of our aligned, safe, diverse with new technology and a competitive
Slide 75: Attract and retain high performing employees
ATTRACT AND RETAIN HIGH PERFORMING EMPLOYEES IN A COMPETITIVE MARKET For personal use only • Develop a formal Graduate and Internship program • Design and implement an enterprise-wide succession development program • Expand our secondment program and create internal mobility opportunities 74
Slide 76: Build internal capability
BUILD INTERNAL CAPABILITY TO MEET THE NEEDS OF OUR EVOLVING WORKFORCE For personal use only • Triple A Development Program − Accelerate − Advance − Amplify • New people leader induction • Mentorship program • Trusted adviser training ACCELERATE ADVANCE AMPLIFY 75
Slide 77: Maintain a values aligned, safe, diverse and inclusive culture
MAINTAIN A VALUES ALIGNED, SAFE, DIVERSE AND INCLUSIVE CULTURE Our values For personal use only • Launch Diversity and Inclusion Committee TRUSTED • Implement initiatives, education and support to ensure psychological safety in the workplace − Mental Health First-Aid training − Bystander training AC
Slide 78: Better enable employees with new technology
BETTER ENABLE EMPLOYEES WITH NEW TECHNOLOGY AND INFORMATION SYSTEMS For personal use only • Build our internal change capability • Implement Workday HCM (Human Capital Management) • Develop and implement remuneration frameworks to support regulatory change − CPS 511 (Superannuation remuneration stan
Slide 79: Risk Management
For personal use only RISK MANAGEMENT Owen Brailsford Chief Risk Officer
Slide 80: Key risks
KEY RISKS Reputation For personal use only Our purpose Compliance FIDUCIARY DUTY Financial Assets People Licences Brand Balance sheet Foundations CULTURE AND GOVERNANCE STRUCTURES 79
Slide 81: Regulatory changes
REGULATORY CHANGES The increasing regulatory burden has been very significant. We see strong opportunities for demand for our services For personal use only and the value proposition as an independent trustee. Timeline 2021 2022 2023 2024 2025 RG274: DDO New Standards New Standards New Standards New
Slide 82: Regulatory landscape
REGULATORY LANDSCAPE For personal use only Supervisory Intensity Regulatory Change • Thematic reviews APRA ASIC OTHERS − Technology and operational resilience • Operational Risk • Financial • Climate related − Greenwashing Management Accountability financial disclosure • Financial Regime • Productiv
Slide 83: Technology
For personal use only TECHNOLOGY Phing Lee Chief Technology Officer
Slide 84: Clear principles underpinning the technology strategy
CLEAR PRINCIPLES UNDERPINNING THE TECHNOLOGY STRATEGY For personal use only Buy Technology Secure Australian data centres (not build) Out of the box functionality Application Program Interface (customisation limited) (API) ready Cloud first (SaaS) Everything mobile/digital ready 83
Slide 85: Technology team to only configure, customise & develop solutions
TECHNOLOGY TEAM TO ONLY CONFIGURE, CUSTOMISE & DEVELOP SOLUTIONS IN THESE AREAS For personal use only Client and user experience Unique EQT business processes (workflow and automation) Data and analytics 84
Slide 86: Technology team
TECHNOLOGY TEAM For personal use only PHING LEE Chief Technology Officer 11 years SANDRA HANNA DAVID HOLT BRENDAN KERRY JASON KWONG Head of Solutions Delivery Head of Infrastructure & Cyber Security Enterprise & Solutions Architect Head of Projects & Transformation 9 years 2 years 1 year 1 year • So
Slide 87: Priority technology investments
PRIORITY TECHNOLOGY INVESTMENTS TO MODERNIZE & DELIVER A MORE CONTEMPORARY TRUSTEE COMPANY For personal use only ONE-OFF OPEX ~$1.5M - $2.0M AND CAPEX ~$2.5M - $3.0M FOR FY24 PROJECTS Workday Implementation Implementation Cyber Security of new TWS of new Active Program Bringing the Finance platform
Slide 88: Workday
WORKDAY BRINGING THE FINANCE AND PEOPLE FUNCTIONS ONTO A SINGLE MODERN PLATFORM For personal use only Technology Delivered • Implementation of Workday Core Financials • Integrations to banking platforms • Integrations to other internal systems Progress update • Core finance capabilities implemented
Slide 89: Implementation of NavOne
IMPLEMENTATION OF NAVONE MODERNISATION OF THE TWS BUSINESS TO DELIVER BETTER OUTCOMES FOR ALL For personal use only STAKEHOLDERS Technology Delivered • Implementation of the NavOne platform (replacing Garradin and TACT) • Outsourcing of custody administration services to HUB24 • Adoption of HUB24’s
Slide 90: Modernisation & improving efficiencies
MODERNISATION & IMPROVING EFFICIENCIES GARRADIN (EQT ENVIRONMENT) NavOne For personal use only TACT (INSIGNIA ENVIRONMENT) 89
Slide 91: Implementation of iPhi
IMPLEMENTATION OF iPhi LAUNCHING A LEADING ACTIVE PHILANTHROPY PLATFORM AND CLIENT SOLUTION For personal use only Technology Delivered • Implementation of the iPhi platform • Launch of the iPhi client portal Progress update • iPhi implemented for the Equity Trustees Charitable Foundation (ECF) in No
Slide 92: Delivering a better client experience – iPhi
DELIVERING A BETTER CLIENT EXPERIENCE – iPhi For personal use only 91
Slide 93: Cyber security program
CYBER SECURITY PROGRAM CYBER SECURITY UPLIFT TO MAKE EQT A MORE CYBER RESILIENT ORGANISATION For personal use only Technology Delivered • Implementation of vendor leading security perimeter technologies (FortiNet, Darktrace, Crowdstrike, Mimecast and Microsoft E5 security) Recent updates • Security
Slide 94: Future technology developments
FUTURE TECHNOLOGY DEVELOPMENTS ADDITIONAL LARGE-SCALE TECHNOLOGY INVESTMENTS NOT EXPECTED IN THE MEDIUM-TERM For personal use only BUT THERE ARE MANY MORE OPPORTUNITIES TO DELIVER BENEFITS WITH TECHNOLOGY MORE VALUE FROM EXSISTING PLATFORMS DIGITAL PRODUCTS & SERVICES Continuous improvement to furth
Slide 95: Outlook and Conclusion
For personal use only OUTLOOK AND CONCLUSION
Slide 96: Favourable industry dynamics and well positioned
FAVOURABLE INDUSTRY DYNAMICS AND WELL POSITIONED TO TAKE ADVANTAGE OF OPPORTUNITIES For personal use only • The industry outlook is favourable for Equity Trustees o Corporate and Superannuation Trustee services underpinned by: − Growth in superannuation assets expected to materially outstrip GDP gro
Slide 97: Outlook
OUTLOOK For personal use only Positive outlook with earnings growth for FY25 and FY26 expected to be supported by: • Realisation of AET expense and revenue (and capital release) synergies − Achievement of revenue synergies via re-pricing and investment allocation − Achievement of expense synergies v
Slide 98: Conclusion
CONCLUSION SPECIALIST EXPERTISE AND MARKET LEADING POSITION PROVIDES A STRONG FOUNDATION For personal use only FOR THE FUTURE Equity Trustees has a market leading position with unique capability Strategy is to continue to focus Expertise and capability are Strong springboard for growth on trusteeshi
Slide 99: Questions
For personal use only QUESTIONS
Slide 100: Thank you
For personal use only THANK YOU
Slide 101: Disclaimer
EQT Holdings Limited ABN 22 607 797 615 Level 1, 575 Bourke Street Melbourne VIC 3000 1300 133 472 www.eqt.com.au For personal use only Disclaimer The Managing Director has authorised that this document be given to the ASX. EQT Holdings Limited ABN 22 607 797 615. This document was prepared by EQT H
Slide 102: Appendix 1. EQT Asset Management
For personal use only APPENDIX 1. EQT ASSET MANAGEMENT
Slide 103: Equity Trustees Asset Management
EQUITY TRUSTEES ASSET MANAGEMENT For personal use only Diversified client base underpinned by Charitable/Endowment Clients • The team predominantly manages tailored investment portfolios for charitable, corporate and private clients and specialises in funds management for tax-exempt entities and str
Slide 104: Performance: Asset management positive performance
PERFORMANCE ASSET MANAGEMENT – POSITIVE PERFORMANCE For personal use only Alpha Generation p.a. 31 December 2023 STRATEGY 1 YEAR 3 YEAR 5 YEARS Australian Equities -0.9% +0.7% +1.3% Eight Bays Global Equities +4.7% - - Australian Fixed Income +0.1% +0.1% +0.1% Mortgage Income +0.7% +2.3% +3.0% Spect
Slide 105: FUM by asset class
FUM BY ASSET CLASS FUM by Asset Class FUM by Source For personal use only 16% 9% 7% 25% 16% 4% 65% 8% 50% Australian Equities International Equities Property Fixed Income TWS Sole Trustee TWS Co Trustee, Advised Mortgage, Credit, Alternatives Cash Superannuation External Mandate only Source EQT: As
Slide 106: Investment philosophy
INVESTMENT PHILOSOPHY For personal use only Our investment philosophy is to preserve and grow the real value of capital over the long term while providing clients, beneficiaries and co-trustees with the income they need. Market inefficiencies provide investment opportunities: • We believe in active
Slide 107: EQTAM – internal asset class strategies
EQTAM – INTERNAL ASSET CLASS STRATEGIES AUSTRALIAN EQUITIES – EQT Flagship, Tax-Aware & Responsible Investment Funds • Objective of generating long-term capital growth with an income focus (5-7 year timeframe) For personal use only • Active Manager adopting Quality at a reasonable price approach inv
Slide 108: Commitment to responsible investing
COMMITMENT TO RESPONSIBLE INVESTING For personal use only We are committed to responsible investing (RI) because we believe that it can have a material impact on the both the risk and returns of investments, while progressing positive environmental, social and economic outcomes RIAA CERTIFICATION EQ