Slide 1: Treasury Group Limited Interim Results presentation
Treasury Group Limited Interim Results presentation 31 December 2013
Slide 2: Agenda
Agenda 1. Financial Highlights – 6 months ending 31 December 2013 2. Funds Under Management 3. Dividend 4. Outlook & Summary 2
Slide 3: 1. Financial Highlights
1. Financial Highlights Strong profit growth, driven by RARE, IML and Celeste • NPAT up 12.1% (on H1 FY2013) to $6.8 million • Solid growth in underlying profit – up 29.9% (on H1 FY2013) to $7.2 million • Total FUM at 31 December 2013 – $19.1 billion, up $2.2 billion (or 12.7%) on H1 FY2013 • Strong
Slide 4: 1. Financial Highlights – growth in FUM; NPAT up 12.1%
1. Financial Highlights – growth in FUM; NPAT up 12.1% P&L Highlights ($m) H1- 2014 H1 -2013 % Change • Growth in FUM of 12.7% due to Half year end FUM ($bn) 19.1 17.0 12.7% increased funds inflow at RARE, IML Aggregate Boutique Mgmt Fee and Celeste and market gains, partially 48.5 37.8 28.3% Income
Slide 5: 1. Financial Results – Underlying NPAT up 29.9%
1. Financial Results – Underlying NPAT up 29.9% Treasury Group P&L ($000) H1- 2014 H1 -2013 % Change Profit After Tax 6,753.5 6,027.5 12.0% • Residual goodwill in relation to Net gain on disposal of investments - (396.3) AR capital written off • Consulting and legal costs in Settlement fee from PRV
Slide 6: 1. Financial Results – Aggregate Profit & Loss of TRG Boutiques
1. Financial Results – Aggregate Profit & Loss of TRG Boutiques % Aggregate P&L for Boutiques ($m) H1- 2014 H1 - 2013 change Half year end FUM ($bn) 19.1 17.0 12.7% Average Net Margin (%) 58 bpts 54 bpts 7.4% • Average net margin excludes Trilogy. It is increasing due to Base Management Fees 49.4 37
Slide 7: 2. FUM - diversification across boutiques lowers risks
2. FUM - diversification across boutiques lowers risks $19.1 billion FUM as at 31 December 2013 Other TRG Boutiques, 3.8% IML, 25.1% Trilogy, 22.8% Orion, 3.0% Celeste, 4.0% RARE, 41.3% 7
Slide 8: 2. FUM – Diversification away from Australian equities continues
2. FUM – Diversification away from Australian equities continues, funds from retail investors is increasing FUM by Investor Type FUM by Investor Location FUM by Product Type 20 20 100% $bn $bn 18 18 16 80% 16 14 14 60% 12 12 10 10 40% 8 8 6 6 20% 4 4 2 2 0% - - Dec-12 Dec-13 Alternatives Institution
Slide 9: 3. FUM TRG Half Yearly Net New Funds Flow
3. FUM TRG Half Yearly Net New Funds Flow $1,500 (Jan 2009 to Dec 2013) $1,000 • Inflows at RARE, IML and Trilogy were offset $500 by outflows at Orion. $0 $m -$500 -$1,000 -$1,500 -$2,000 Note: Chart shows Net Flow, not change in FUM 9
Slide 10: 4. FUM - growth at RARE and IML drives average margin higher
4. FUM - growth at RARE and IML drives average margin higher 25 Composition of FUM vs Average Margin 80 FUM Avg Margin $bn (bps) 70 20 60 Trilogy Freehold (Evergreen) & AR Capital 50 Celeste 15 TAAM 40 Aubrey & Global Value Investors 10 RARE Infrastructure 30 Orion 20 Investors Mutual 5 % incl Trilo
Slide 11: 5. Dividend – increase reflects growth in underlying profit
5. Dividend – increase reflects growth in underlying profit Dividend History 45 40 35 30 • Interim dividend for FY2014 up 25 35.3% (on H1 FY2013) to cps 20 23 cents per share 15 • Balance sheet liquid and ungeared 10 • Payout ratio of 79% 5 0 2009 2010 2011 2012 2013 2014 Interim Final 11
Slide 12: 6. Summary & Outlook
6. Summary & Outlook • Solid underlying growth driven by improved market conditions, increased appetite from retail investors and investment performance from key boutiques • Strong growth from IML & RARE offset by reduced contribution from Orion • Shift in FUM towards retail funds boosts overall mar
Slide 13: Disclaimer
Disclaimer The information in this presentation is general background information about Treasury Group Limited and is current only at the date of this presentation. In particular, this presentation: • is not an offer or recommendation to purchase or subscribe for securities in Treasury Group Limited