Eqt Holdings Ltd. · ASX:EQT
Eqt — H1 FY2016 Earnings Presentation
26 slides from Eqt's earnings presentation, Feb 25, 2016
Slide 1: EQT Holdings Limited (ASX: EQT) – Half Year Result
25 February 2016 For personal use only EQT Holdings Limited (ASX: EQT) – Half Year Result EQT Holdings Limited (Equity Trustees) today released its auditor reviewed results for the six months to 31 December 2015, confirming solid underlying revenue and business momentum. 6 months to 6 months to % 31
Slide 2: For personal use only
Board is confident that we are well placed to weather the current conditions and succeed for the future.” For personal use only He added: “The acquisition of ETWSL (formerly ANZ Trustees) has been a significant success for Equity Trustees. Although markets have affected the earnings growth we may ha
Slide 3: EQT Holdings Limited First half results to 31 December 2015
For personal use only EQT Holdings Limited (EQT) First half results to 31 December 2015 25 February 2016
Slide 4: Agenda
Agenda For personal use only Summary Group Performance Business Unit • Trustee & Wealth Services (TWS) Performance • Corporate Trustee Services (CTS) Conclusion 2
Slide 5: Solid 1H Performance Summary
Solid 1H Performance For personal use only Summary • Group Operating Profit up 4% to $14.1m and Net Profit after Tax $7.0m • Solid growth in core business with FUM/A up 19% to $56.9b and Group Operating Margin of 33% maintained • Scheme of Arrangement to improve flexibility of capital structure impl
Slide 6: Overview – 1H Group Results
Overview – 1H Group Results For personal use only 1H FY2016 1H FY2015 $m $m Change Operating revenue 42.6 41.1 3.6% Operating expenses (28.5) (27.6) 3.3% Operating profit before tax 14.1 13.5 4.2% Income tax expense (3.9) (3.8) Operating profit after tax 10.2 9.7 4.2% Amortisation of intangibles (ni
Slide 7: 1H Revenue up 4% in Declining Equity Markets
1H Revenue up 4% in Declining Equity Markets For personal use only Operating revenue up 4% to $42.6m Business Unit Revenue ($m) Effective 4 July 2014, revenue includes ETWSL (formerly Average Daily ASX200 known as ANZ Trustees) 46.0 6,000 44.0 $42.6m 42.0 $ 41.1m 40.0 38.0 5,500 36.0 5,185 34.0 5,44
Slide 8: 1H Revenue – Composition
1H Revenue – Composition For personal use only Trustee & Wealth Services Corporate Trustee Services 46.0 Average Daily ASX200 6,000 44.0 $ 42.6m 42.0 $ 41.1m 40.0 5,440 38.0 5,266 5,500 36.0 5,185 34.0 32.0 11.5 12.9 30.0 5,000 28.0 $26.1m 26.0 24.0 $22.5m 4,500 22.0 $ 20.7m 20.0 4,386 18.0 9.5 4,22
Slide 9: 1H Operating Expense Growth Contained
1H Operating Expense Growth Contained to 3 % For personal use only • Operating expenses up 3% to $28.5m • Includes restructuring costs $28.5m $27.6m $19.2m $15.6m $16.4m 2012 2013 2014 2015 2016 7
Slide 10: Strong Operating Margin Maintained
Strong Operating Margin Maintained For personal use only Operating Profit (Pre tax) ($m) Operating Margin (%) 32.8% 33.1% 16.0 34.0% 14.0 26.4% 26.3% 14.1 12.0 24.9% 24.0% 13.5 10.0 8.0 14.0% 6.0 5.9 6.9 4.0 5.2 4.0% 2.0 2012 2013 2014 2015 2016 0.0 -6.0% 8
Slide 11: Returns to Shareholders
Returns to Shareholders For personal use only Dividend history First half dividend as percentage of reported EPS Final (cps) Interim (cps) 110 100 94 94 140% 92 85 120% 113.0% 114.0% 115.7% 60 50 48 48 100% 96.5% 50 88.7% 45 81.1% 78.9% 80% 34 60% 50 50 40% 42 46 46 40 34 20% 0% 2010 2011 2012 2013
Slide 12: Business Units – 1H Performance
Business Units – 1H Performance For personal use only Trustee & Wealth Services (TWS) Corporate Trustee Services (CTS) 10
Slide 13: Business Unit 1H Overview – TWS
Business Unit 1H Overview – TWS For personal use only Underlying growth offset by FUM/A at 31 December 2015 up declining markets 1% to $7.5b 35 $7,543m Superannuation $7,456m Philanthropy 30 Trust & Estate 2,359 2,371 Wealth Advice 25 Revenue $m $4,645m 20 1,744 1,957 $3,506m $3,626m 1,618 15 $29.6
Slide 14: Repositioning the Superannuation Business for Growth
Repositioning the Superannuation Business for Growth For personal use only • Pursuing scale through the integration of EQT Super funds with KPMG Executive fund • Outsourcing administration to KPMG – focus on growing FUM as Trustee, Custodian and Asset Manager • Building specialist capability to cont
Slide 15: Business Unit 1H Overview – TWS
Business Unit 1H Overview – TWS For personal use only • Strong growth in compensation trusts through Operating revenue external referral networks • External referrals for estate planning up 25% $30m • Campaign to internal will bank clients underway • Superannuation Trustee business continues to perf
Slide 16: Business Unit 1H Overview – CTS
Business Unit 1H Overview – CTS For personal use only Operating revenue up FUM/A at 31 December 2015 12.2% to $12.9m up 22.7% to $49.4b 14 Other Australian Fixed Interest 12 $49,397m Australian Equities Global Fixed Interest 9,385 10 Global Equities - 2,964 Revenue $m 8 4,446 - $12.9 10,867 6 - $11.
Slide 17: Business Unit 1H Overview – CTS
Business Unit 1H Overview – CTS For personal use only Operating revenue • Acting as fiduciary for 212 funds across up by 86 fund manager clients; a net increase of 12.2% 13 funds and 4 clients • FUM from new clients of $2.6b to $12.9m • Further expansion and diversification in range of fiduciary rol
Slide 18: Building a Foundation for Growth
Building a Foundation for Growth Key Projects on track For personal use only Actual Forecast Forecast One-off Key Projects ($'m) 1H FY16 2H FY16 1H FY17 Corporate Restructure 0.77 0.30 - Superannuation Restructure 1.41 0.89 - Business Assurance 1.34 1.16 0.75 (Enhancing Risk & Regulatory Management)
Slide 19: Business Assurance Project: Building for Growth
Business Assurance Project: Building for Growth For personal use only Continuing to address the rapidly changing and increasingly complex regulatory and compliance environment: • Enhancing the Risk Management and Regulatory Compliance framework to ensure EQT remains highly competent in Risk Manageme
Slide 20: Conclusion
Conclusion For personal use only • Clear strategy with good momentum in core business • Corporate Trustee Services ̶ Achieving strong organic growth with significant FUM and new customer increases • Trustee & Wealth Services ̶ Growth in core business enduring revenues partially offset by the decline
Slide 21: Appendices
For personal use only Appendices 1. Business Units 2. Full Year Dividend payout ratio 3. Cash Flow
Slide 22: Appendix 1: Business Units
Appendix 1: Business Units For personal use only Business unit Key services Target market / channel Trustee & Wealth Services • Personal estates & trusts • Private clients (TWS) • Philanthropy • Business to business referrals • Wealth management • Small-medium size corporates • Asset management • Me
Slide 23: Appendix 2: Full-year dividend as percentage of reported EPS
Appendix 2: Full-year dividend as percentage of reported EPS For personal use only Dividend payout ratio on Reported NPAT EPS Target Ratio: 70-90% of NPAT 120% 111.7% 113.9% 106.0% 107.1% 103.1% 100% 95.2% 87.9% 82.5% 80% 71.3% 60% 40% 20% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dividend pay
Slide 24: Appendix 3: Strong Operating Cash Flow
Appendix 3: Strong Operating Cash Flow For personal use only $40 +$1.75m Millions +$1.00m - $3.75m $35 +$4.72m $30 +$5.62m - $7.86m $26.44m $24.95m $25 $20 $15 $10 $5 $0 Opening Pre-tax net Cash from Proceeds from Cash from Income tax Payment of Closing Balance cashflow from investing borrowings iss
Slide 25: Disclaimer
Disclaimer For personal use only EQT Holdings Limited ABN 22 607 797 615. This document was prepared by EQT Holdings Limited and is only provided for information purposes. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on thi
Slide 26: For personal use only
For personal use only