Eqt Holdings Ltd. · ASX:EQT
Eqt — Shareholder Meeting (October 2023)
41 slides from Eqt's shareholder meeting presentation, Oct 26, 2023
Slide 1: AGM: Chair's Address & Managing Director's Presentation
. EQT HOLDINGS LIMITED @ Equity Trustees ASX ANNOUNCEMENT 26 October 2023 AGM: Chair’s Address & Managing Director's Presentation Attached is a copy of the addresses to be given by the Chair and the Managing Director, and the presentation for the EQT Holdings Limited (EQT) Annual General Meeting tod
Slide 2: Annual General Meeting
ANNUAL GENERAL MEETING Carol Schwartz AO, Chair Mick O’Brien, Managing Director EQT Holdings Limited 26 October 2023
Slide 3: Carol Schwartz AO, Chair
CAROL SCHWARTZ AO CHAIR 2
Slide 4: Agenda
AGENDA A CHAIR'S ADDRESS B MANAGING DIRECTOR’S ADDRESS C ITEMS OF BUSINESS 1. FINANCIAL REPORT, DIRECTORS’ REPORT AND AUDITOR’S REPORT 2. ELECTION OF DIRECTOR 3. RE-ELECTION OF DIRECTORS 4. ADOPTION OF REMUNERATION REPORT 5. INCREASE IN THE CAP ON NON-EXECUTIVE DIRECTOR REMUNERATION 6. APPROVAL OF G
Slide 5: Board of Directors
BOARD OF DIRECTORS CAROL SCHWARTZ AO Chair KEVIN J ELEY D. GLENN SEDGWICK CATHERINE ROBSON MICK O’BRIEN Independent Director Independent Director Independent Director Managing Director TIM HAMMON KELLY O’DWYER ROBERT DALTON Independent Director Independent Director Independent Director 4
Slide 6: Our Strategy Is Delivering
OUR STRATEGY IS DELIVERING • Focused strategy to be Australia’s leading provider of trustee services • Industry rationalisation has provided opportunities • Strong organic growth as we continue to win new clients and mandates • Investment in the business is providing the capacity to support that gro
Slide 7: Mick O'Brien, Managing Director
MICK O'BRIEN MANAGING DIRECTOR 6
Slide 8: Leadership Team
LEADERSHIP TEAM MICK O’ BRIEN Managing Director PHILIP GENTRY GEORGIE TAYLOR IAN WESTLEY ANDREW GODFREY Chief Financial Officer Executive General Executive General Executive General & Chief Operating Officer Manager, People Manager, Manager, TWS Private Clients Corporate & Superannuation Trustee Ser
Slide 9: Strong Financial Performance
STRONG FINANCIAL PEFORMANCE FUMAS* REVENUE $160.1b $141.4m Up 7.5% on FY22 Up 26.8% on FY22 DIVIDENDS NPAT 99 cents $18.8m Final dividend 50c, up 1 cent on 1H23. Underlying NPAT $29.1m 19.4% on FY22 Total FY23 dividends up 2 cents on FY22 8 * FUMAS: Funds under management, administration,
Slide 10: Continuing To Grow
CONTINUING TO GROW $b TOTAL EQT FUMAS1 180 173.0 160.1 160 148.9 7.0 • FUMAS up 7.5% on FY22 to 144.2 $160.1b 140 • Significant new business 120 activity offset by a number of 101 client/mandate losses in CTS 100 86.2 85.4 • AET contributes additional 80 71.4 FUMAS of $7.0b 60 • Q1 FY24 FUMAS increa
Slide 11: Transformation To Improve Competitive Edge And Drive Growth
TRANSFORMATION TO IMPROVE COMPETITIVE EDGE AND DRIVE GROWTH • Growth agenda – Expertise in an increasingly intense regulatory environment is giving us a competitive edge – Focused strategy to be Australia’s leading provider of trustee services • Building the capacity to support growth – AET acquisit
Slide 12: Corporate and Superannuation Trustee Services
CORPORATE AND SUPERANNUATION TRUSTEE SERVICES COMING TOGETHER SERVICES COMING TOGETHER $b CORPORATE FUS1 $b SUPERANNUATION FUS1 50 110 105.1 105 Aon*** 46 44.8 100.8 0.8 100 99.0 42 95 38 90 34.7 33.6 - 34 - 85 80 30 FY21 FY22 FY23 FY21 FY22 FY23 • FUS down 5.8% on pcp • FUS up 29.1% on pcp • Multip
Slide 13: Trustee Wealth Services & Asset Management
TRUSTEE WEALTH SERVICES & ASSET MANAGEMENT $b TWS FUMAS1 $b ASSET MANAGEMENT FUM 5 4.8 18 16.3 4.3 16 4 3.8 14 6.2 12 9.8 3 10 9.1 4.3 8 2 6 4 1 FY21 FY22 FY23 FY 21 FY 22 FY 23 • FUMAS up 79.1% on pcp driven largely by • FUM growth of 11.6% AET $6.2b and good growth in new clients • Strengthened ca
Slide 14: Delivering For Shareholders
DELIVERING FOR SHAREHOLDERS Cents EARNINGS PER SHARE • Underlying EPS flat on FY22 120 114.8 114.38 107.54 • Statutory EPS down on FY22 110 106.16 101.72 reflecting: 100 113.94 – Acquisition/integration costs 90 80 92.04 102.03 114.38CENTS – Technology replacement costs 73.94 70 – AET management rig
Slide 15: Delivering For All Stakeholders
DELIVERING FOR ALL STAKEHOLDERS CLIENTS EMPLOYEES2 NPS NLS ENGAGEMENT ENABLEMENT +28 +28 +41 75 75 71 73 +36 FY22 FY23 FY22 FY23 2022 2023 2022 2023 SHAREHOLDERS COMMUNITY EPS DIVIDEND TOTAL GRANTING & BEQUESTS 114.8 114.38 99 97 113.94 122.8 92.2 73.94 FY22 FY23 FY22 FY23 FY22 FY23 1 Underlying ear
Slide 16: Strong Balance Sheet With Flexibility
STRONG BALANCE SHEET WITH FLEXIBILITY GEARING- $512M $512M DEBT / EQUITY1 Receivables Payables and other $61.8m 9.3% $71.7m and other assets Borrowings $50.6m Goodwill and $330.5m INTEREST intangible assets COVER1 37:1 = Equity $399.5 Cash and Liquid UNDRAWN $109.7m investments BORROWINGS $43m Asset
Slide 17: A Company Founded On Trust
A COMPANY FOUNDED ON TRUST PURPOSE: HELP PEOPLE TAKE CARE OF THE FUTURE Safeguard people’s wealth now and for Provide trustee services to help clients protect generations to come members’ and investors’ interests Act as a trusted, independent partner to grow Empower clients to improve the lives of o
Slide 18: Strengthened Market Leadership
STRENGTHENED MARKET LEADERSHIP PRIVATE CLIENT BUSINESSES CORPORATE & SUPERANNUATION TRUSTEE SERVICES TRUSTEE & WEALTH SERVICES CORPORATE • Philanthropy – Leading provider • Responsible Entity Services – long term clear leader • Health & Personal Injury – Leading provider • Custody & Real Assets – bu
Slide 19: Business Unit Initiatives In FY24
BUSINESS UNIT INITIATIVES IN FY24 CORPORATE AND SUPERANNUATION TRUSTEE SERVICES TRUSTEE & WEALTH SERVICES SUPERANNUATION CORPORATE • AET Integration • Capitalise on demand for professional • Digitise/streamline workflows to increase trustee services in superannuation productivity to support strong g
Slide 20: Investing In Technology
INVESTING IN TECHNOLOGY ONE-OFF OPEX ~$2.0M - $2.5M1 FOR FY24 PROJECTS CORPORATE TRUSTEE SERVICES SUPERANNUATION TRUSTEE SERVICES • Solutions to create scale and efficiency through • Solutions to create scale and efficiency through process reengineering, data analytics & automation process reenginee
Slide 21: AET Integration – Delivery On Track
AET INTEGRATION – DELIVERY ON TRACK AUGUST 22 DECEMBER 22 FEBRUARY 23 AUGUST 23 MARCH 24 JUNE 24 OCTOBER 24 INTEGRATION OF TRUSTEE BUSINESS NavOne Phase 2 NavOne Implementation Build & Data Migration Continuing Trusts 80% complete AET Integration Announced and NavOne Superconcepts Implementation Ann
Slide 22: AET Integration On Track
AET INTEGRATION ON TRACK PEOPLE • Retained AET’s trustee client base, all referring partners and key AET people PRODUCT • Single client facing organisational structure • Uplift to prices for trustee services & SAFs PREMISES • Philanthropic Foundations merged TECHNOLOGY • Safe custody business exited
Slide 23: AET Overall Synergies Target Increased
AET OVERALL SYNERGIES TARGET INCREASED IMPLEMENTATION COSTS ON TRACK TARGETED AMOUNT TIMING STATUS NET COST SYNERGIES $3.1m p.a. ($3.5m p.a.) Run-rate in FY25 REVENUE SYNERGIES $5.5m p.a. ($3.3m) $0.4m in FY23 $3.3m p.a. in FY24 increasing to $5.5m in FY25 IMPLEMENTATION $22m ($22m) Spread across FY
Slide 24: Excellent 1Q24 Start
EXCELLENT 1Q24 START $b CORPORATE FUS1 $b SUPERANNUATION FUS1 $b TWS FUMAS2 16.3 16.6 110 60 17 104.0 52.4 99.0 14 100 50 44.8 Aon*** 90 40 11 80 30 8 70 20 5 FY23 1Q24 FY23 1Q24 FY23 1Q24 • FUS up 5.1% • FUS up 17.0% • FUMAS up 1.8% • Excellent start with 20 schemes / • Excellent start with new fun
Slide 25: Outlook
OUTLOOK FY24 Assuming relatively stable markets - higher than usual revenue growth reflecting: • Full year impact of AET acquisition • Strong levels of new business activity • Increasing achievement of revenue synergies Higher than usual expense growth reflecting: • Full year impact of AET acquisiti
Slide 26: Conclusion
CONCLUSION • Strategy on track driven by organic and inorganic growth and business transformation • Pipeline of new business is healthy • Our investments in technology are progressing well • AET Acquisition provides market leadership – integration on track and expect to exceed overall revenue synerg
Slide 27: Thank You
THANK YOU 37
Slide 28: Disclaimer
EQT Holdings Limited ABN 22 607 797 615 Level 1, 575 Bourke Street Melbourne VIC 3000 1300 133 472 www.eqt.com.au Disclaimer The Board has authorised that this document be given to the ASX. EQT Holdings Limited ABN 22 607 797 615. This document was prepared by EQT Holdings Limited and is only provid
Slide 29: Speaker notes: Carol Schwartz AO
SLIDE 2 – CAROL SCHWARTZ AO SLIDE 3 AGENDA SLIDE 4 – BOARD OF DIRECTORS - - - -
Slide 30: Speaker notes: Board and Agenda
- Kelly O'Dwyer joined the Board in 2021. Kelly is a member of the Board Risk Committee and Chair of the Responsible Entity Compliance Committee, and she recently joined our Remuneration, Human Resources and Nominations Committee. - Robert Dalton is our newest Director — appointed last month - and |
Slide 31: What Sets Us Apart
@ What sets us apart, as the business continues to grow, and as we continue to win new clients and mandates, has been our ability to handle this growth. We invested early in the right people, and we've spent a great deal of time building the expertise and systems to manage the opportunities as they
Slide 32: Board Continues To Provide A Secure Foundation
@ With a good balance of skills, experience, tenure and diversity, the Board continues to provide a secure foundation for the business. | thank my fellow directors for their support and contribution, and on behalf of the Board, | thank all our clients, people, shareholders and other partners for you
Slide 33: Leadership Team
Andrew joined the group in March and has extensive experience in overseeing large scale financial service operations. 5. Samantha Einhart, our Company Secretary. Sam joined us two years ago and has been an excellent addition to the team. 6. Darren Thompson, heading up our increasingly important Asse
Slide 34: AET Has Added $7.0bn To Our Total Funds
@ AET has added $7.0bn to our total funds — this addition will end up being about $5 % billion after we exit the AET Platform business. In the last quarter just completed to 30 September 23, funds have increased by just under $13bn, to now be $173bn. This increase has mainly been driven by funds flo
Slide 35: Trustee Wealth Services And Asset Management
@ SLIDE 12 - TRUSTEE WEALTH SERVICES AND ASSET MANAGEMENT Our Trustee Wealth Services business grew funds by 79% with the acquisition of AET. If we exclude AET, growth was still an impressive 11%. 11% is a considerably higher growth rate than normally experienced in TWS. Pleasingly, The TWS growth i
Slide 36: Strong Balance Sheet With Flexibility
@ Finally, for the community, we granted over $122m to fabulous charitable and for-purpose causes. This is such an important part of Equity Trustees, to provide stewardship over such crucial funding to the community. Our total granting over the last 5 years has exceeded $1/2 billion. This is a well-
Slide 37: Leadership With AET
@ With AET we add leadership in Estate Planning, Estate Management, the Health and Personal Injury sector, the most number of indigenous community trust clients and clear leadership in Perth and Adelaide. Being the leader isn't about size, although it's a fairly useful indicator of success. For us l
Slide 38: Business Unit Initiatives In FY24
@ And finally we are deploying WorkDay as the enterprise platform for Finance and our People function, and are well advanced with that build - starting with Finance this year and People next calendar year. SLIDE 20 - AET INTEGRATION — DELIVERY ON TRACK It is important | give shareholders an update o
Slide 39: AET Integration — Delivery On Track
@ SLIDE 22 - AET OVERALL SYNERGIES TARGET INCREASED The analysis on this slide confirms again the financial analysis we showed in August. We are well on the way to achieving the expense, revenue, and capital synergies, noting our expense synergy target is slightly lower at $3.1m, the revenue synergy
Slide 40: Outlook
@ Expense growth will be higher than usual reflecting: - Full year impact of the AET acquisition - Utilisation of majority of the $22m AET integration estimate in FY24 - Lower vacancy rates and annualisation of prior people investment - AET management right amortization of $2.3m per annum and - Inve
Slide 41: Closing Remarks
@ | continue to feel extremely privileged to lead this company and be able to look after our incredible clients and in particular all those vulnerable clients who rely so heavily on Equity Trustees. And to our shareholders, thank you for your support and the confidence you show in this company.