Slide 1: Perpetual Limited FY24 Results Presentation
Perpetual Limited (ASX:PPT) FY24 Results Presentation For the year ending 30 June 2024 Thursday 29 August 2024 Presented by: Rob Adams, CEO & Managing Director Chris Green, Chief Financial Officer
Slide 2: Disclaimer
Disclaimer Important information This presentation is in summary form and is not necessarily complete. It should be The Product Disclosure Statements (PDS) for the Perpetual Asset Management read together with Perpetual Limited’s (Perpetual) consolidated financial statements Australia funds are issu
Slide 3: FY24 in review
FY24 in review Rob Adams CEO and Managing Director half year ending 31 December 2021
Slide 4: FY24 Summary
FY24 Summary Key themes • Strategic Review1 expected to deliver estimated net cash proceeds per share2 of between $8.38 and $9.82 as well as shares in a globally diverse, multi-boutique, debt-free standalone asset management business • Targeted annualised synergies of over $80 million from Pendal in
Slide 5: Asset Management
Asset Management Stable AUM and margins, supported by diversified capabilities and client base across regions • Revenue of $887.6 million in FY24, compared to $600.4 million in FY23. UPBT was $200.4 million, compared to $132.7 million in FY23 − Growth was underpinned by a full 12 months contribution
Slide 6: Focussed distribution, broadening capabilities and new channels
Focussed distribution, broadening capabilities and new channels Activities focussed on improving flows over the medium term Distribution Product Channels • Strengthened, regionally focused • Launched products to capture growth areas: • Barrow Hanley Global Share Fund ranked 7 distribution team in ne
Slide 7: Corporate Trust
Corporate Trust A quality, sector leading business with long-term client relationships delivering revenue growth • UPBT was $85 million, up 4% on FY23, Revenue was $187.8 million, up 6% on FY23 with growth across all business lines − Debt Market Services (DMS) revenue increased by 1% in FY24, suppor
Slide 8: Wealth Management
Wealth Management Strong core earnings growth • UPBT of $54.0 million, up 15% on FY23; revenue was up 4% to $226.8 million driven by strong organic growth across all segments − Non-market revenue grew strongly, up 9% due to growth within accounting and advice services − Market related revenue was $1
Slide 9: Scheme of Arrangement
Scheme of Arrangement Chris Green Chief Financial Officer year ending 31 December 2021
Slide 10: A transaction that will deliver value for shareholders
A transaction that will deliver value for shareholders Estimated cash proceeds A simplified asset Board and leadership for shareholders management business renewal to take the business forward Transaction represents an attractive A global, multi-boutique, debt-free New CEO, Bernard Reilly, appointed
Slide 11: Cash proceeds to shareholders expected from the transaction
Cash proceeds to shareholders expected from the transaction This assumes all conditions precedent to the transaction, including a shareholder vote, are satisfied Indicative proceeds1 to shareholders Comments $ millions Estimated range • Indicative proceeds are based on currently available Upfront Co
Slide 12: A global, multi-boutique, debt-free standalone Asset Management business
A global, multi-boutique, debt-free standalone Asset Management business with $215 billion in AUM1 Strong presence across all major markets globally With a high-quality operating platform $215B Reflecting a large base to drive scale benefits UK and Europe in AUM1 Americas $23b1 7 Strong and respecte
Slide 13: A simplified, focused business supported by a strong balance sheet
A simplified, focused business supported by a strong balance sheet Removal of stranded costs and simplification program to build a more efficient operating structure • Estimated stranded costs1 of $75 million, p.a. before tax Key simplification focus areas of the program: − Approximately $50 million
Slide 14: FY24 Group Financials
FY24 Group Financials Chris Green Chief Financial Officer year ending 31 December 2021
Slide 15: FY24 financial results
FY24 financial results UPAT includes 12 months earnings from Pendal Group; NPAT impacted by impairment and other significant items FY24 FY23 FY24 v FY23 For the period $m $m (%) Summary points: Operating revenue 1,335.0 1,013.8 32 • Revenue growth driven primarily by the inclusion of Total expenses
Slide 16: FY24 UPAT analysis
FY24 UPAT analysis 760.9 206.1 98.2 163.2 67.0 298.3 275.3 FY23 Asset Management Wealth Management Corporate Trust Group Support Services YoY Tax Movement FY24 UPAT UPBT UPBT UPBT UPBT UPAT Additional earnings Solid organic growth Continued Higher interest expense from the acquisition across all seg
Slide 17: Pendal integration update
Pendal integration update Synergies delivered ahead of two-year target; exceeding $80 million1 • Integration program essentially completed with $81.6 million of annualised synergies delivered at 30 June 2024, seven months ahead of schedule − $59.7 million in expense reduction reflected in FY24 resul
Slide 18: Expense analysis
Expense analysis Expense growth delivered at lower end of expense guidance for FY24 • Cost growth drivers include annual impact of Pendal Group related expenses, technology costs associated with IT security enhancements, technology insourcing for the Group which will benefit future years, strong per
Slide 19: Cashflow analysis
Cashflow analysis Free cash flow driven by full year contribution from Pendal acquisition Free Cash Flow $181.9m2 Key themes • Increase in free cash flow driven by full year contributions of Pendal acquisition • Borrowings reflects net repayment of debt through the period 30 June Net cash Tax & Leas
Slide 20: Balance sheet
Balance sheet Reduction in goodwill largely due to impairment 30 June 20241 30 June 20231,2 FY24 v FY23 For the period $m $m (%) Key movements vs FY23 Cash 221.3 263.2 (16) • Goodwill and other intangibles decreased by $599.2 million due to the non-cash impairment announced on 26 Liquid investments
Slide 21: Dividends
Dividends Final dividend of 53 cents per share declared • Final dividend of 53 cps declared, 50% franked, to be paid on 4 October 2024 • Total dividends were 118 cps, representing a FY24 UPAT payout ratio of 65%, within the Board’s stated target range to payout between 60% - 90% of UPAT on an annual
Slide 22: Summary & Outlook
Summary & Outlook Rob Adams CEO and Managing Director half year ending 31 December 2021
Slide 23: Outlook
Outlook Asset Management Wealth Management Corporate Trust Path to completion New CEO of Scheme Positive momentum Strong client Positive market activity Separation program Bernard Reilly in net flows in Q1, engagement in securitisation currently on track, commences 2 particularly in (NPS+48) driving
Slide 24: Contacts
Contacts Emma Rumble Susie Reinhardt Global Head of Corporate Affairs Head of Investor Relations & Sustainability emma.rumble@perpetual.com.au susie.reinhardt@perpetual.com.au +612 9229 3998 +612 9125 7047 Connect with us at: About Perpetual perpetual.com.au pendal.com.au Head Office johcm.com Perpe
Slide 25: Appendix: Detailed divisional result commentary
Appendix Detailed divisional result commentary
Slide 26: Asset Management
Asset Management FY24 FY23 FY24 v FY23 For the period $m $m (%) Revenue 887.6 600.4 48 Operating expenses (652.6) (437.7) 49 EBITDA 235.0 162.8 44 Depreciation & amortisation (18.4) (13.2) 39 Equity remuneration (14.3) (15.5) (7) Interest expense (1.8) (1.4) 27 Underlying profit before tax 200.4 132
Slide 27: Corporate Trust
Corporate Trust FY24 FY23 FY24 v FY23 For the period $m $m (%) Debt Market Services revenue 78.4 77.2 1 Managed Funds Services revenue 83.9 77.4 8 Perpetual Digital revenue 25.6 23.4 9 Total revenue 187.8 178.0 6 Operating expenses (91.8) (85.1) (8) EBITDA 96.0 92.9 3 Depreciation & amortisation (7.
Slide 28: Wealth Management
Wealth Management FY24 FY23 FY24 v FY23 For the period $m $m (%) Market related revenue 147.6 145.1 2 Non-market related revenue 79.1 72.3 9 Total revenue 226.8 217.4 4 Operating expenses (159.8) (155.4) (3) EBITDA 67.0 62.0 8 Depreciation & amortisation (7.8) (9.1) 15 Equity remuneration (4.6) (4.6
Slide 29: Appendix: UPAT to NPAT reconciliation
Appendix UPAT to NPAT reconciliation
Slide 30: UPAT to NPAT reconciliation
UPAT to NPAT reconciliation1 Transaction, Integration and Strategic Review costs Non-cash Unrealised Accrued Impairment FY24 Statutory 2 amortisation gains/losses incentive losses on EMCF FY24 OFR Accounts of acquired on financial compensation non-financial Barrow Pendal 4 5 Trillium Other3 intangib
Slide 31: Assets under Management – Investment Performance
Appendix Assets under Management – Investment Performance
Slide 32: Asset Management delivering strong investment outperformance
Asset Management delivering strong investment outperformance 66% of strategies ahead of benchmark over 3 years to 30 June 2024 Proportion of strategies outperforming benchmark1,2 100% 91% 93% 83% 83% 82% 65% 71% 60% 54% 51% 48% 46% 41% 44% 0% 25% 29% 1 year 3 years 5 years 1 year 3 years 5 years 1 y
Slide 33: Asset Management
Asset Management 1,2 Annualised gross performance (%) Excess returns above benchmark (%) 1,4 Investment performance across key3 strategies 30 June 20241,4 Period ending 30 June 2024 1. Investment performance presented gross of fees and includes reinvestment of distributions. Returns are annualised f
Slide 34: Asset Management: Disclaimer notes to slide
Asset Management Disclaimer notes to Slide 33 Barrow Hanley Material presented is based on the respective GIPS® compliant composite and not an individual account. Performance is expressed in USD currency. J O Hambro Capital Management Gross performance is the unit price returns grossed up by fees. F
Slide 35: Assets under Management, Funds under Advice and Funds under Administration
Appendix Assets under Management, Funds under Advice and Funds under Administration
Slide 36: Asset Management: AUM and flows
Asset Management: AUM and flows AUM by asset class ($b) Foreign 30 June 2023 30 June 2024 For the period Flows Other1 Exchange ($b) ($b) Impacts2 Equities Australia 28.9 (2.5) 3.0 0.0 29.4 Global/International 69.8 (7.4) 6.1 0.4 68.8 UK 8.8 (3.6) 1.1 0.1 6.3 US 52.3 (5.2) 7.5 0.3 54.9 Europe 1.5 (0.
Slide 37: Wealth Management FUA and AUM
Wealth Management FUA and AUM FUA by client segment and AUM FUA ($b) (Inclusive of AUM) AUM ($b) FY24 FY23 FY24 v FY231 FY24 FY23 FY24 v FY23 Community and Social Investments (CSI) 6.8 6.2 10% Select Portfolios 2.8 2.8 0% High Net Worth 12.1 11.5 5% Implemented Portfolios 4.9 4.2 17% Other 0.9 0.8 1
Slide 38: Corporate Trust
Corporate Trust FUA by segment ($b) For the period FY24 FY23 FY24 v FY23 ($b) ($b) (%) Public Market Securitisation RMBS - bank (ADI) 63.9 52.4 22 RMBS – non-bank 89.5 79.3 13 ABS and CMBS 67.1 60.7 11 Balance Sheet Securitisation RMBS - repos 372.7 393.3 (5) Covered bonds 101.5 89.2 14 1 Debt Marke