Qualitas Limited · ASX:QAL
Qualitas — Shareholder Meeting (November 2024)
42 slides from Qualitas's shareholder meeting presentation, Nov 29, 2024
Slide 1: Annual General Meeting Speeches and Presentation
ASX Announcement Qualitas Limited (ASX: QAL) 29 November 2024 Qualitas Limited – Annual General Meeting Speeches and Presentation Qualitas Limited (ASX: QAL) (Company) attaches a copy of the Chair’s Address and Group Managing Director’s Address, and presentation to be delivered today at the 2024 Ann
Slide 2: About Qualitas
About Qualitas Qualitas Limited ACN 655 057 588 (Qualitas) is an ASX-listed Australian alternative real estate investment manager with approximately $8.9 billion1 of committed funds under management. Qualitas matches global capital with access to attractive risk adjusted investments in real estate p
Slide 3: Disclaimer (continued)
assumptions that may prove to be incorrect, and accordingly, actual results or outcomes may vary. Past performance is not indicative of future returns. No representation or warranty is made by or on behalf of Qualitas that any projection, forecast, calculation, forward-looking statement, assumption
Slide 4: Chair's Address
Qualitas Limited 2024 Annual General Meeting Addresses 29 November 2024 Chair’s Address This year, Qualitas has once again confirmed its position as a leading Australian alternative real estate investment manager. The 2024 financial year saw the firm deliver strong results and growth, ending the per
Slide 5: Chair's Address (continued)
The strength of our brand and our people was recognised by PERE, a leading publication dedicated to the global private real estate industry. Qualitas was named Firm of The Year: Australia as part of their 2023 Awards. In an increasingly competitive and challenging capital raising market, it’s testam
Slide 6: Chair's and Group Managing Director's Address
Steinberg was appointed as the Chair of the Investment Committee subject to being elected as a Director of Qualitas today. Mary Ploughman remains the Chair of the Audit, Risk and Compliance Committee. In closing, I sincerely thank my fellow board members. The strong performance we see year after yea
Slide 7: Group Managing Director's Address (continued)
Having an institutional funds management model means we don’t need to raise capital on a deal-by-deal basis. We also don’t rely on fund leverage to boost returns or funds management earnings. Our discretionary funds enable us to make efficient investment decisions in the best interest of our investo
Slide 8: Group Managing Director's Address (continued)
stability. Importantly, not all private credit financiers are the same. Borrowers must do their due diligence on their financiers. Investors must ensure they understand the risk-return profile that they are investing in. Our access to institutional capital is a key differentiator, as it ultimately e
Slide 9: Group Managing Director's Address (closing)
Over the last 16 years, we have been growing at a very significant pace. This could not have been achieved without long term commitment from our talented team in particularly our founding employees who collectively have substantial shareholding in the business. I would also like to take the opportun
Slide 10: Annual General Meeting November 2024
Qualitas (ASX:QAL) Annual General Meeting For personal use only 29 November 2024
Slide 11: Acknowledgement of Country
Acknowledgement of Country For personal use only Qualitas acknowledges the Traditional Custodians of Country throughout Australia and their ongoing connection to land, sea, and community. We pay our respect to their Elders past and present. JOURNEY OF GROWTH BY ALYSHA MENZEL 2
Slide 12: Disclaimer
Disclaimer This presentation has been prepared and issued by and its sole responsibility of Qualitas Limited (ACN 655 057 588). To the maximum extent permitted by law, the information contained in this presentation is given without any liability whatsoever to Qualitas Limited, any of its related ent
Slide 13: Board of Directors
Board of Directors For personal use only Andrew Fairley AM Andrew Schwartz JoAnne Stephenson Independent Chairman Group Managing Director and Independent Non-Executive Director Appointment date: 4 November 2021 Co-Founder Appointment date: 4 November 2021 Appointment date: 4 November 2021 Mary Ploug
Slide 14: Executive management team
Executive management team For personal use only Andrew Schwartz Mark Fischer Philip Dowman Kathleen Yeung Group Managing Director Global Head of Real Estate Chief Financial Officer Global Head of Corporate and Co-Founder and Co-Founder Development Dean Winterton Tim Johansen Michelle Christou Global
Slide 15: Agenda
Agenda For personal use only 1 Chair’s Address 2 Group Managing Director’s Address 3 Formal Items of Business 6
Slide 16: How to vote
How to vote 1. Click the ‘Get a Voting Card’ button For personal use only 2. Enter your Shareholder Number (SRN/HIN) or Proxy Number and click ‘Submit Details and Vote’ 3. Select either ‘Full Vote’ or ‘Partial Vote’ 4. Complete your voting card and click ‘Submit Vote’ or ‘Submit Partial Vote’ 7
Slide 17: How to ask a question
How to ask a question 1. Click the ‘Ask a Question’ button For personal use only 2. Select the item of business from the drop down menu 3. Type your question in the space provided 4. Click ‘Submit Question’ 8
Slide 18: Chair's Address
For personal use only Chair’s Address
Slide 19: FY24 year in review
FY24 year in review FUNDS UNDER MANAGEMENT1 BUILDING UPON OUR 16 YEAR INVESTMENT • Significant inflow in private TRACK RECORD1 credit driven by strong For personal use only demand from both investors and borrowers $8.9bn $2.8bn Equity investment 48 Credit investment • Delivered strong results FUM Ne
Slide 20: Group Managing Director's Address
For personal use only Group Managing Director’s Address
Slide 21: Business and strategy
Business and strategy For personal use only GROUP HIGHLIGHTS Strong deployment momentum – mostly in credit strategies with increased investment size $53.7m $37.9m 52% FY24 funds management FY24 funds management FY24 funds management revenue EBITDA excluding EBITDA margin1 Up 22% on FY23 performance
Slide 22: FY25YTD deployment momentum
FY25YTD deployment momentum DEPLOYMENT AND FY25YTD PIPELINE ($M) • Pipeline $2.89bn as at 26 November 2024 For personal use only 2,891 − Up 25% on pipeline as at 16 October 2023 − 67% in construction private credit 783 − Closed and IC approved investments represent 73%, up from 38% as at 16 October
Slide 23: Affirming guidance for FY25
Affirming guidance - we expect FY25 NPBT to grow 26% to 41% on FY24 For personal use only • FY25 guidance considerations: FY25 GUIDANCE – Draw down profile of undrawn construction credit not earning full management fees, deployment timing and quantum are key variables of the guidance range. Estimate
Slide 24: Formal Items of Business
For personal use only Formal Items of Business
Slide 25: Financial statements and reports
Item 1 Financial statements and reports For personal use only To receive and consider: (a) the financial statements; (b) the directors’ report; and (c) the auditor’s report of Qualitas, for the year ended 30 June 2024. 16
Slide 26: Questions
For personal use only Questions
Slide 27: Adoption of the Remuneration Report
Resolution 2 Adoption of the Remuneration Report For personal use only To consider and if thought fit, pass the following as an ordinary resolution: “That the Remuneration Report of the Company (which forms part of the directors' report) for the financial year ended 30 June 2024 be adopted.” Note: T
Slide 28: Questions
For personal use only Questions
Slide 29: Adoption of the Remuneration Report: voting results
Resolution 2 Adoption of the Remuneration Report For personal use only Resolution 2 For Open Against Adoption of the Remuneration % 99.70% 0.19% 0.11% Report Number of votes 155,799,785 294,692 171,323 Number of 39 7 4 security holders 20
Slide 30: Election of Darren Steinberg as a Director
Resolution 3 Approval of election of Darren Steinberg as a Director of the Company For personal use only To consider and if thought fit, pass the following as an ordinary resolution: “That Darren Steinberg is elected as a Director of the Company” 21
Slide 31: Darren Steinberg
Darren Steinberg For personal use only • Darren has over thirty years’ experience in the property and funds management industry with an extensive background in property investment and development. • Darren was appointed to the Board of Dexus Limited in 2012 and held the position of CEO, along with t
Slide 32: Questions
For personal use only Questions
Slide 33: Election of Darren Steinberg: voting results
Resolution 3 Approval of election of Darren Steinberg For personal use only Resolution 3 For Open Against Approval of election of Darren % 99.87% 0.13% 0.00% Steinberg Number of votes 227,373,163 294,692 375 Number of 46 7 1 security holders 24
Slide 34: Allocation of loan shares to the Group Managing Director
Resolution 4 Approval of allocation of loan shares to the Group Managing Director For personal use only To consider and if thought fit, pass the following resolution: That for the purposes of: (a) ASX Listing Rule 10.14, and for all other purposes, Shareholders approve respectively: (b) the acquisit
Slide 35: Questions
For personal use only Questions
Slide 36: Loan shares allocation: voting results
Resolution 4 Approval of allocation of loan shares to the Group Managing Director For personal use only Resolution 4 For Open Against Approval of allocation of Loan % 99.70% 0.19% 0.11% Shares to the Group Managing Director Number of votes 156,069,925 294,692 178,463 Number of 36 7 9 security holder
Slide 37: General business
Item 5 General business For personal use only To transact any other business which may legally be brought before the meeting 28
Slide 38: Office locations and investor enquiries
MELBOURNE OFFICE SYDNEY OFFICE BRISBANE OFFICE Level 38, 120 Collins Street, Level 5, 1 Bligh Street, Level 14, 167 Eagle Street, Melbourne VIC 3000 Sydney NSW 2000 Brisbane QLD 4000 For personal use only QAL INVESTOR ENQUIRES P: +61 3 9612 3939 E: investor.relations@qualitas.com.au
Slide 39: Appendix: Group and Funds Management Segment Earnings
For personal use only Appendix Group and Funds Management Segment Earnings
Slide 40: Group earnings
Group earnings1 For personal use only % P&L BREAKDOWN ($THOUSANDS) FY24 FY235 (YOY) Net funds management revenue2 23,297 18,754 24% Net performance fee revenue 2,421 3,212 (25%) Principal income3,4 23,274 15,850 47% Arch Finance EBITDA 1,588 3,879 (59%) (-) Corporate costs (8,685) (8,064) 8% Normali
Slide 41: Funds management segment earnings
Funds management segment earnings For personal use only % P&L BREAKDOWN ($THOUSANDS) FY24 FY234 (YOY) Base funds management fees 37,542 32,343 16% Transaction fees 16,144 11,788 37% Funds management revenue 53,686 44,131 22% (-) Core employee costs (30,389) (25,378) 20% Net funds management revenue
Slide 42: Reconciliation of restatement for FY23 financial and statutory to normalised
Reconciliation of restatement for FY23 financial and statutory financial to normalised financial In 2024, Qualitas discovered that on adoption of AASB 16 there was an accounting misstatement resulting in the understatement of trade and other payables and understatement of expenses due to the incorre