Slide 1: Perpetual Half Year Financial Results
Perpetual Limited ABN 86 000 431 827 Angel Place, Level 18, 123 Pitt Street Sydney NSW 2000 27 February 2025 Australia Phone +61 9229 9000 ASX Limited www.perpetual.com.au ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 Via electronic lodgement Perpetual Half Year Fi
Slide 2: Perpetual Limited 1H25 Results Presentation
Perpetual Limited (ASX:PPT) 1H25 Results Presentation For the half year ending 31 December 2024 Thursday 27 February 2025 Presented by: Bernard Reilly, CEO & Managing Director Chris Green, Chief Financial Officer
Slide 3: Disclaimer
Disclaimer Important information The Product Disclosure Statements (PDS) for the Perpetual Asset Management This presentation is in summary form and is not necessarily complete. It should be Australia funds are issued by Perpetual Investment Management Limited ABN 18 read together with Perpetual Lim
Slide 4: 1H25 Highlights
1H25 Highlights Bernard Reilly CEO and Managing Director half year ending 31 December 2021
Slide 5: 1H25 Summary
1H25 Summary • Scheme with KKR terminated and Perpetual will progress the business separation program that is well underway and the sale of Wealth Management • Revenue and underlying profit growth driven by strong performance in Corporate Trust and Wealth Management and continued growth in Asset Man
Slide 6: Quality businesses that have continued to deliver value to shareholders
Quality businesses that have continued to deliver value to shareholders Asset Management Corporate Trust Wealth Management UPBT1 UPBT1 UPBT1 7% 8% 12% 95.8 102.6 40.8 44.0 26.0 29.2 1H24 1H25 1H24 1H25 1H24 1H25 Separation will continue with leaner central functions, enabling greater autonomy and ac
Slide 7: Three quality businesses
Three quality businesses Bernard Reilly Chief Executive Officer year ending 31 December 2021
Slide 8: Asset Management
Asset Management Stable margins, supported by diversified capabilities and client base across regions • Revenue of $455.0 million in 1H25, up 4% on $439.6 million in 1H24. UPBT was $102.6 million, up 7% on $95.8 million in 1H24 − Underpinned by positive market movements and investment performance an
Slide 9: Early priorities for Asset Management
Early priorities for Asset Management We set four priorities for Asset Management at our FY24 AGM 1 Confirm future operating model 2 Right size the cost base 3 Reset the distribution strategy 4 Stabilise J O Hambro 8
Slide 10: New operating model for Asset Management
1 New operating model for Asset Management Transforming the way we work to improve efficiency and accountability What we have been Where we are going • Multi-boutique model • Multi-boutique model remains focussed on preserving the unique cultures and capabilities • Emphasis on a global operating pla
Slide 11: Simplification Program uplifted to $70-$80 million annualised cost savings
2 Transition to new operating model sees Simplification Program uplifted from $25-$35 million1 to $70-$80 million2 annualised cost savings • Targeting $70 - $80 million in annualised cost savings (pre-tax) by the end of FY27 • Program supported by disciplined cost and capital management practices ac
Slide 12: Reset distribution strategy
3 Reset distribution strategy AUM breakdown as at 31 December 2024 10% • Scale our international distribution capability to support new product 31% launches in target markets AUM BY • Rebalance distribution resources across regions REGION Americas • Focus institutional distribution on Asia, which re
Slide 13: Stabilise J O Hambro
4 Stabilise J O Hambro Revitalising an investment platform that attracts and retains high quality talent Observations • Respected brand and high-quality investment capabilities that have potential to be extended • Strong platform to add new investment capabilities • High concentration of AUM in cert
Slide 14: A new Asset Management strategy
A new Asset Management strategy Transform and Grow A leading multi-boutique asset management business providing institutional-grade strength, global distribution and operational excellence to agile and unique boutique businesses Strategic imperatives SIMPLIFICATION OPERATIONAL EXCELLENCE GROW • Refr
Slide 15: Corporate Trust
Corporate Trust A quality, sector leading fiduciary and digital solutions provider with long-term client relationships Debt Managed Perpetual Market Funds Digital Services Supporting a diverse client Services Delivering fiduciary, agency, Enabling the financial base ranging from domestic custody and
Slide 16: Corporate Trust
Corporate Trust Consistent growth delivered across each division • UPBT was $44 million, up 8% on 1H24; Revenue was $99.2 million, up 9% on 1H24 with growth across all business lines − Debt Market Services (DMS) revenue increased by 12% compared to 1H24, driven by growth in the securitisation portfo
Slide 17: Wealth Management
Wealth Management One of Australia’s leading advisory services business focused on the comprehensive needs of families, businesses, professionals and communities Private Specialised segment Delivering fiduciary, agency, A trusted partner to not-for- Trustee Non-Profit & Wealth model providing servic
Slide 18: Wealth Management
Wealth Management Solid growth in market and non-market revenues • UPBT of $29.2 million, up 12% on 1H24; revenue was up 7% to $118.7 million driven by strong organic growth across all segments − Non-market related revenue grew 6% supported by growth in advisory services and a stronger interest rate
Slide 19: 1H25 Group Financials
1H25 Group Financials Chris Green Chief Financial Officer year ending 31 December 2021
Slide 20: 1H25 Financial Results Summary
1H25 Financial Results Summary 1H25 2H24 1H24 1H25 v 1H25 v $m For the period $m $m 2H24 1H24 Summary points: (%) (%) • Revenue growth driven primarily by AUM and FUA Operating revenue 686.2 677.2 657.8 1 4 growth across business Operating expenses (479.6) (474.3) (451.7) (1) (6) • Revenue included
Slide 21: 1H25 UPAT analysis
1H25 UPAT analysis 3.2 3.2 6.9 (5.5) (5.5) 760.9 98.2 67.0 98.2 100.5 298.3 275.3 1H24 Asset Management Wealth Management Corporate Trust Group Support Services YoY Tax Movement 1H25 UPAT UPBT UPBT UPBT UPBT UPAT Higher AUM and Continued organic growth Solid growth in all three Movement related to p
Slide 22: UPAT to NPAT reconciliation
UPAT to NPAT reconciliation $88.5m of significant items mainly attributable to Strategic Review and impairment (2.0) (16.5) (24.4) 100.5 (11.0) (2.0) 26.2 (5.6) (27.7) (25.5) 5 12.0 1H25 Barrow Hanley Pendal Group Strategic Review Simplification Other Non-cash Unrealised Accrued incentive Impairment
Slide 23: Expense analysis
Expense analysis 1H25 expense growth1 of 4% Controllable cost growth % 4% -0% 4% change 794.6 4.2 5.5 5.5 (3.9) (0.3) (0.4) 7.8 2.3 837.0 (0.7) 543.8 External Factors 543.1 522.4 1H24 Variable remuneration Barrow Hanley 25% Staff growth Lease make-good Technology Simplification Program Total Expense
Slide 24: Cashflow analysis
Cashflow analysis Key themes Free Cash Flow ($26.4m)2 17.7 271.3 • Negative free cash 39.3 125.0 flow driven by funding of separation activities 221.3 • Increase in borrowings (45.2) predominantly due to (13.5) (7.0) Strategic Review including the 8.2 136.1 separation program (58.8) and the Simplifi
Slide 25: Balance sheet
Balance sheet 31 Dec 20242 30 Jun 20242 1H25 v For the period $m $m 2H24 (%) • Goodwill and other intangibles increased due to Cash 271.3 221.3 23 foreign exchange movements and includes the impairment charge relating to J O Hambro Other financial assets 395.9 381.7 4 Goodwill & other intangibles 2,
Slide 26: Debt position
Debt position 31 Dec 20242 30 Jun 20242 1H25 v For the period $m $m 2H24 (%) • Gearing ratio1 was 32.0% (2H24: 28.2%) as at 31 December 2024 Gross Debt 840.3 685.5 23 • Debt facilities denominated in USD and GBP are Cash 271.3 221.3 23 partially hedged by offshore earnings Net Debt 569.0 464.2 23 •
Slide 27: Summary & Outlook
Summary & Outlook Bernard Reilly CEO and Managing Director half year ending 31 December 2021
Slide 28: Outlook and Priorities
Outlook and Priorities • Progress the internal separation of our businesses • Deliver cost benefits from the Simplification Program • Execute on new strategy for Asset Management including stabilising J O Hambro • Support Corporate Trust in continuing to deliver growth • Reduce gross debt to our tar
Slide 29: 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 30: Appendix: Detailed divisional result commentary
Appendix Detailed divisional result commentary
Slide 31: Asset Management
Asset Management For the period 1H25 2H24 1H24 1H25 v 2H24 1H25 v 1H24 $m $m $m (%) (%) Revenue 455.0 447.9 439.6 2 4 Operating expenses (334.0) (331.4) (321.2) (1) (4) EBITDA 121.0 116.6 118.4 4 2 Depreciation & amortisation (10.3) (8.6) (9.8) (20) (5) Equity remuneration (6.9) (2.4) (12.0) (188) 4
Slide 32: Corporate Trust
Corporate Trust For the period 1H25 2H24 1H24 1H25 v 2H24 1H25 v 1H24 $m $m $m (%) (%) Debt Market Services revenue 42.6 40.2 38.1 6 12 Managed Funds Services revenue 43.7 42.8 41.0 2 7 Perpetual Digital revenue 12.8 13.4 12.2 (4) 5 Total revenues 99.2 96.4 91.4 3 9 Operating expenses (48.2) (47.0)
Slide 33: Wealth Management
Wealth Management For the period 1H25 2H24 1H24 1H25 v 2H24 1H25 v 1H24 $m $m $m (%) (%) Market related revenue 78.5 74.6 73.0 5 7 Non-market related revenue 40.3 41.1 38.0 (2) 6 Total revenues 118.7 115.7 111.0 3 7 Operating expenses (83.4) (82.1) (77.7) (2) (7) EBITDA 35.3 33.6 33.4 5 6 Depreciati
Slide 34: Group Support Services
Group Support Services For the period 1H25 2H24 1H24 1H25 v 2H24 1H25 v 1H24 $m $m $m (%) (%) Interest Income 4.4 3.5 3.8 26 18 Other Income 8.8 13.7 11.9 (35) (26) Total revenues 13.3 17.2 15.7 (23) (15) Operating expenses (14.0) (13.8) (8.0) (1) (75) EBITDA (0.7) 3.4 7.7 (121) (109) Depreciation &
Slide 35: Assets under Management – Investment Performance
Appendix Assets under Management – Investment Performance
Slide 36: Asset Management delivering strong investment outperformance
Asset Management delivering strong investment outperformance 65% of strategies ahead of benchmark over 3 years to 31 December 2024 Proportion of strategies outperforming benchmark1,2 95% 95% 93% 83% 83% 82% 64% 68% 59% 60% 58% 56% 50% 54% 35% 13% 14% 0% 1 year 3 years 5 years 1 year 3 years 5 years
Slide 37: Asset Management investment performance across key strategies
Asset Management 1,2 Investment performance across key3 strategies Annualised gross performance (%) Excess returns above benchmark (% pa) 1,4 31 December 20241,4 Period ending 31 December 2024 1. Investment performance presented gross of fees and includes reinvestment of distributions. Returns are a
Slide 38: Asset Management: Disclaimer notes to slide
Asset Management Disclaimer notes to Slide 36 Barrow Hanley Material presented is based on the respective GIPS® compliant composite and not an individual account. Performance is expressed in USD currency. J O Hambro Capital Management Gross performance is the unit price returns grossed up by fees. F
Slide 39: Assets under Management, Funds under Advice and Funds under Administration
Appendix Assets under Management, Funds under Advice and Funds under Administration
Slide 40: Asset Management: AUM and flows
Asset Management: AUM and flows AUM by asset class ($b) 30 June 2024 Foreign 31 December 2024 For the period Flows Other1 Exhange ($b) ($b) Impacts2 Equities Australia 29.4 2.2 1.7 — 33.3 Global/International 68.8 (3.5) 1.2 4.1 70.6 UK 6.3 (0.8) 0.3 0.3 6.1 US 54.9 (2.2) 4.2 3.9 60.8 Europe 1.1 0.0
Slide 41: Wealth Management FUA and AUM
Wealth Management FUA and AUM FUA by client segment and AUM FUA ($b) (Inclusive of AUM) AUM ($b) 1H25 1H24 1H25 v 1H24 1H25 1H24 1H25 v 1H24 Community and Social Investments (CSI) 7.1 6.4 11% Select Portfolios 3.3 2.8 18% High Net Worth 12.6 11.9 6% Implemented Portfolios 5.3 4.5 18% Other 0.9 0.9 —
Slide 42: Corporate Trust FUA by segment
Corporate Trust FUA by segment ($b) For the period 1H25 2H24 1H24 1H25 v 2H24 1H25 vs 1H24 $b $b $b (%) (%) Public Market Securitisation RMBS - bank (ADI) 69.4 63.9 61.2 9 13 RMBS - non bank 97.5 89.5 85.2 9 14 ABS and CMBS 70.8 67.1 64.5 6 10 Balance Sheet Securitisation RMBS - repos 366.8 372.7 39