EQT Holdings Ltd. · ASX:EQT
EQT — Equity Trustees — Shareholder Meeting (October 2014)
42 slides from EQT's shareholder meeting presentation, Oct 31, 2014
Slide 1: 2014 Annual General Meeting
2014 Annual General Meeting 31 October 2014
Slide 2: Board of Directors
Board of Directors Mr JA (Tony) Killen OAM Mr Robin Burns Mr David Groves Ms Alice Williams Non-Executive Director, Chairman Managing Director Non-Executive Director, Non-Executive Director Deputy Chairman The Hon Jeffrey Kennett AC Ms Anne O’Donnell Mr Kevin Eley Mr Michael J O’Brien Non-Executive
Slide 3: Agenda
Agenda 1. Overview and Highlights Mr Tony Killen 2. Operational Performance Mr Robin Burns 3. Items of Business Mr Tony Killen 4. Questions 3
Slide 4: Overview – FY2014
Overview – FY2014 • Net Profit After Tax (NPAT) up 12% (inclusive of acquisition expenses) • Organic revenue growth in both business units – total revenue up 14% • Operating margin maintained in excess of 27%. Ungeared RoE 14.6% • Successful bid for ANZ Trustees (ANZT) – a transformative acquisition
Slide 5: Acquisition Well Supported by the Market
Acquisition Well Supported by the Market $22.50 $21.50 $20.50 $19.50 $18.50 $17.50 $16.50 $15.50 Jan-14 Feb-14 Mar-14 Apr-14 May-14 Jun-14 Jul-14 Aug-14 Sep-14 Oct-14 EQT ASX 200 Offer Price ($17.00) TERP ($19.83) *TERP – Theoretical Ex-Rights Price 5
Slide 6: Change in Composition of the Register
Change in Composition of the Register Equity Trustees register Equity Trustees register pre-equity raising post-equity raising 6
Slide 7: Profitability
Profitability NPAT up at $9.7m, net of takeover costs of $2.6m (includes profit on sale of investments) $9.7m $8.4m $8.7m $8.0m $8.2m 2010 2011 2012 2013 2014 7
Slide 8: Dividends
Dividends Full year, fully franked dividend Interim (cps) Final (cps) 110 100 92 94 85 50 50 42 46 40 60 50 45 50 48 2010 2011 2012 2013 2014 8
Slide 9: Equity Trustees’ Role in Philanthropy
Equity Trustees’ Role in Philanthropy • Both Equity Trustees and ANZT have a long history in supporting the philanthropic sector • Approximately $1.8b in philanthropic assets managed or guided by the merged businesses, distributing around $80m per annum • Equity Trustees now supports over 450 charit
Slide 10: The Board
The Board • Mr Mick O’Brien, FIAA, CFA, appointed in August as a Non-Executive Director (NED), part of planned orderly renewal process • New NED’s appointed in each of 2007, 2008, 2010, 2011 and 2014 • Intention to appoint another NED in the coming year, ahead of likely retirements • Another very ac
Slide 11: ASX 200 Index 1 July to Current Date
ASX 200 Index 1 July to Current Date 106 S&P/ASX 200 Index 104 102 100 98 96 94 92 90 06/14 07/14 08/14 09/14 11
Slide 12: Looking Ahead
Looking Ahead • Global economic conditions and confidence still far from strong – US showing some positive signs but Europe weak and local conditions subdued • Recent reverses in ASX reflect risk expectations, poor growth and market sensitivity • Although there is overall net growth in FUM, the indu
Slide 13: ANZ Trustees – Acquisition Goals
ANZ Trustees – Acquisition Goals Transaction rationale: • Benefits from increased scale, combining operations, distribution networks The acquisition supports Equity Trustees’ strategic objectives in Trustee & Wealth Services through: • Realising cost savings from combining operations • Extracting ad
Slide 14: Mr Robin Burns
Mr Robin Burns Managing Director Equity Trustees Limited 14
Slide 15: Agenda
Agenda 1. Overview and Highlights Mr Tony Killen 2. Operational Performance Mr Robin Burns 3. Items of Business Mr Tony Killen 4. Questions 15
Slide 16: FY2014 – Building for Long Term Success
FY2014 – Building for Long Term Success • Organic revenue growth 15% in corporate business unit (CTS), 13% in private unit (TWS) • Operating margin 27.1%, slight decline from 27.7% • Total Funds Under Management / Administration (FUM/A) grew to $39.5b, up from $32.3b • Net inflows in funds distribut
Slide 17: Equity Trustees Organisation Structure
Equity Trustees Organisation Structure Robin Burns Managing Director & Chief Executive Officer Dr Paul Kasian Terry Ryan Amanda Noble Head of Asset Management Chief Financial Officer Chief Risk Officer Head of Equities Corporate Services Enterprise Risk Harvey Kalman Lisa Barp Ryan Bessemer Executiv
Slide 18: Business Update
Business Update • Net inflows to Equity Trustees’ co-branded funds at 121% of 2013 level for Q1 • Two new manager relationships in Q1. Number of funds remain at 184 • CTS FUM/A $36.56b at end Q1 • TWS FUM/A $7.33b at end Q1 (includes $2.67b from ANZT) • Priorities for 2015: − Integration of ANZT bus
Slide 19: Summary
Summary • Company is financially strong, performing well • Acquisition of ANZT builds scale and capability in strategic growth channels. Brings: − Large will bank − Focus on core fiduciary services − Long term FUM − Skilled team, complementary values − Continuing relationship with ANZ bank • Product
Slide 20: Agenda
Agenda 1. Overview and Highlights Mr Tony Killen 2. Operational Performance Mr Robin Burns Items of Business Mr Tony Killen 4. Questions 20
Slide 21: Items of Business
Items of Business Item 1 To receive and consider the financial statements and the reports of the Directors and Auditor for the year ended 30 June 2014. Item 2 To adopt the remuneration report for year ended 30 June 2014. Item 3 To consider the election of Directors. Item 4 To consider an increase in
Slide 22: 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 2014. 22
Slide 23: Items of Ordinary Business – Item 2
Items of Ordinary Business – Item 2 Item 2 To adopt the remuneration report for year ended 30 June 2014. 23
Slide 24: Remuneration
Remuneration • Short Term Incentives – 40% of maximum pool paid in 2014 (59% in 2013). • Long Term Incentive allocations each year: − Series 7 Partially Earned (EPS 53.53% / *TSR 100%) (ends 30/6/14) − Series 8 Under Assessment (ends 30/6/15) − Series 9 Under Assessment (ends 30/6/16) − Series 10 Co
Slide 25: Tracking Remuneration vs Dividends
Tracking Remuneration vs Dividends Cumulative growth in Non-Executive Director remuneration 35 Cumulative growth in Top 5 Executive plus MD remuneration Cumulative growth in Dividend per Share (DPS) 30 25 20 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 25
Slide 26: Item 2 – Proxies Received
Item 2 – Proxies Received To adopt the remuneration report for year ended 30 June 2014 In respect of Item 2 of ordinary business, the following proxies have been received: For Against 7,484,306 307,551 (3.77%) Open (held by Equity Trustees Directors) = 85,331 26
Slide 27: Items of Ordinary Business – Item 3
Items of Ordinary Business – Item 3 Item 3 To consider the election of Directors 27
Slide 28: Item 3(a): Re-election of Mr David Groves
Items of Ordinary Business – Item 3 Item 3(a): To consider the re-election of Mr David Groves 28
Slide 29: Item 3(a) – Proxies Received
Item 3(a) – Proxies Received To consider the re-election of Mr David Groves In respect of Item 3(a) of ordinary business, the following proxies have been received: For Against Mr David Groves 8,227,880 49,208 Open (held by Equity Trustees Directors) = 316,416 29
Slide 30: Item 3(b): Re-election of Mr Jeff Kennett
Items of Ordinary Business – Item 3 Item 3(b): To consider the re-election of Mr Jeff Kennett 30
Slide 31: Item 3(b) – Proxies Received
Item 3(b) – Proxies Received To consider the re-election of Mr Jeff Kennett In respect of Item 3(b) of ordinary business, the following proxies have been received: For Against Mr Jeff Kennett 8,199,151 66,134 Open (held by Equity Trustees Directors) = 316,416 31
Slide 32: Item 3(c): Election of Mr Mick O’Brien
Items of Ordinary Business – Item 3 Item 3(c): To consider the election of Mr Mick O’Brien 32
Slide 33: Item 3(c) – Proxies Received
Item 3(c) – Proxies Received To consider the election of Mr Mick O’Brien In respect of Item 3(c) of ordinary business, the following proxies have been received: For Against Mr Mick O’Brien 8,188,115 88,973 Open (held by Equity Trustees Directors) = 316,416 33
Slide 34: Items of Special Business – Item 4
Items of Special Business – Item 4 Item 4: To consider an increase in the maximum aggregate remuneration of Non-Executive Directors 34
Slide 35: Item 4 – Proxies Received
Item 4 – Proxies Received To consider an increase in the maximum aggregate remuneration of Non-Executive Directors In respect of Item 4 of ordinary business, the following proxies have been received: For Against 7,503,095 395,340 Open (held by Equity Trustees Directors) = 107,143 35
Slide 36: Items of Special Business – Item 5
Items of Special Business – Item 5 Item 5: To consider the grant of a long term incentive award to Managing Director 36
Slide 37: Managing Director’s LTI, 2014/2015 Series
Managing Director’s LTI, 2014/2015 Series • Quantum: 60% of TEC ($580k) = $348k. Maximum potential issue is 19,194 shares. • Measures: 50% TSR / 50% EPS • Vesting Scales over three years: TSR Less than 50th percentile Nil 50th percentile 50% 75th percentile and above 100% EPS Less than 5% (1
Slide 38: Item 5 – Proxies Received
Item 5 – Proxies Received To consider the grant of a long term incentive award to Managing Director. In respect of Item 5 of special business, the following proxies have been received: For Against 7,860,739 379,673 Open (held by Equity Trustees Directors) = 172,521 38
Slide 39: Items of Special Business – Item 6
Items of Special Business – Item 6 Item 6: To consider and ratify a placement of shares 39
Slide 40: Item 6 – Proxies Received
Item 6 – Proxies Received To consider and ratify a placement of shares In respect of Item 6 of special business, the following proxies have been received: For Against 1,195,217 183,415 Open (held by Equity Trustees Directors) = 280,622 40
Slide 41: Agenda
Agenda 1. Overview and Highlights Mr Tony Killen 2. Operational Performance Mr Robin Burns 3. Items of Business Mr Tony Killen • Questions 41
Slide 42: Thank you
Thank you