Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — Shareholder Meeting (November 2007)
47 slides from Eqt's shareholder meeting presentation, Nov 8, 2007
Slide 1: Chairman's Address to the 152nd Annual General Meeting
For personal use only CHAIRMAN’S ADDRESS TO THE 152nd ANNUAL GENERAL MEETING
Slide 2: Chairman's address: welcome and introductions
For personal use only Equity Trustees Limited 152nd General Meeting Fellow shareholders, ladies and gentlemen. It gives me great pleasure to welcome you to the 152nd general meeting of Equity Trustees Limited. We have a quorum present and I declare the meeting open. On the basis that the Notice of M
Slide 3: Chairman's address: 2007 results and dividends
For personal use only opportunity to extend our appreciation to Peter $8.1m, an increase of 58% on the prior year’s who is attending his last Equity Trustees AGM result. These numbers represent record levels as our auditor. In accordance with the auditor of profitability for our business. rotation r
Slide 4: Chairman's address: acquisitions and shareholder return
For personal use only The investment profit, which flows from modest Templetons Superannuation Management, a rebalancing of our equity portfolio each year, former subsidiary of Bob Templetons Financial is a much smaller proportion of total profit now Group, a Queensland based financial services as c
Slide 5: Chairman's address: sub-prime, community and closing
For personal use only clients in Queensland and it pleasing to see CEO Awards, now in its 6th year. These awards this office contributing to our results. recognise the outstanding work undertaken by individuals in the not for profit sector for the Before I conclude, I would like to touch of two bene
Slide 6: Equity Trustees Limited General Meeting
1 For personal use only Equity Trustees Limited 152 General Meeting nd 8 November 2007
Slide 7: Mr Tony Killen, Chairman
2 For personal use only Mr Tony Killen Chairman Equity Trustees Limited
Slide 8: Board of Directors
3 Board of Directors For personal use only Mr JA (Tony) Killen Non Executive Director Chairman Mr Barry Jackson Non Executive Director Mr David Groves Non Executive Director Ms Alice Williams Non Executive Director Mr John McConnell Non Executive Director Mr Peter Williams Managing Director
Slide 9: Agenda
4 Agenda For personal use only 1) 2007 overview and highlights Mr Tony Killen Chairman 2) Operational performance Mr Peter Williams Managing Director 3) Items of ordinary business Mr Tony Killen Chairman
Slide 10: Financial Performance
5 Financial Performance For personal use only 2007 2006 Variance (1) Group operating revenue $32.4m $24.8m 30.8% (1) Group operating profit (pre tax) $11.1m $6.6m 67.7% Net profit (after tax) $8.1m $5.2m 58.0% Earnings per share (basic) 105.18¢ 69.94¢ 50.4% (2) Dividend per share 75¢ 50¢ 50.0% (3) O
Slide 11: Dividends
6 Dividends For personal use only 80 ¢ cents per share 75 • Dividend payout ratio is 70 at the upper end of the +50.0% stated target range – 60 being 60-80% of Operating Profit after 50 45 50 Final Tax (excl gains on the Interim sale of investments) 40 40 30 • Dividends remain fully 30 30 franked @
Slide 12: Dividend policy
7 Dividend policy For personal use only 9 $m 8 Previous New 0.5 policy Policy 7 Investment Operating 6 Operating profit after Included Included tax 5 0.4 Investment 4 7.7 profit after Excluded Included tax 3 0.7 0.5 4.7 Payout 2 ratio 60-80% 70-90% 2.3 2.7 1 0 2004 2005 2006 2007
Slide 13: Total shareholder return
8 Total shareholder return For personal use only 800,000 $ $100,000 invested in Equity Trustees shares on 1 July 2003 700,000 would be worth over $650,000 in July 2007. 600,000 This represents an annual return of approximately 61.3% 500,000 Note – total shareholder return incorporates movements in t
Slide 14: 1st quarter 2008
9 1st quarter 2008 For personal use only Unaudited results for the quarter ended 30 September 2007 2008 2007 Variance (1) Group operating revenue $9.0m $7.4m 21.1% (1) Excludes profit on the sale of investments
Slide 15: Strategic direction
10 Strategic direction For personal use only 2004 2005/06 2006/07 Æ Recovery Organic Step Growth Growth Cultural change. Improvement in Improvement in processes profit margins enabling better Development of appropriate through quality business. marketing, merger and efficiency gains. acquisition opp
Slide 16: Branding
11 Branding For personal use only ¾ Wealthpac master-trust (acquired in 2003) ¾ Templetons master-trust (2005) ¾ Freedom of Choice master-trust (2007) ¾ Templetons Superannuation Management (2007)
Slide 17: Balance sheet
12 Balance sheet For personal use only 50.0 $m Net assets ($m) 45.0 44.4 +22.2% 40.0 36.4 35.0 30.0 25.0 21.6 20.0 16.5 15.0 10.0 5.0 0.0 2004 2005 2006 2007 • Reserve fund and net tangible asset requirements are more than adequately met through the net asset position and liquid reserves
Slide 18: Eastern seaboard
13 Eastern seaboard For personal use only The eastern seaboard states account for: • 77.5% of Australia’s population Brisbane • 80.8% of Australia’s population growth 2006 • 77.7% of Australia’s high income earners Sydney 2003 Melbourne 1888 Data sourced from Australian Bureau of Statistics – 2006 C
Slide 19: Philanthropy
14 Philanthropy For personal use only ¾ ~ $450m in charitable funds under management ¾ $24m distributed by charitable trusts and estates in 2007 ¾ 1% of pre-tax operating profit donated by the company to the EQT Foundation
Slide 20: 1888 - 2008
For personal use only 15 1888 - 2008
Slide 21: Mr Peter Williams, Managing Director
16 For personal use only Mr Peter Williams Managing Director Equity Trustees Limited
Slide 22: Company overview
17 Company overview For personal use only Board of Directors Managing Director Private Funds Fund Superannuation Clients Management Services 29% of 29% of 25% of 17% of operating operating operating operating revenue revenue revenue revenue Support Services An uncomplicated structure designed for ef
Slide 23: Business unit overview
18 Business unit overview For personal use only Corporate superannuation: Sales & marketing + product management for • Wealthpac EQT co-branded funds • Templetons managed by external • Freedom of Super- specialists Choice annuation 17% Funds Management 29% Fund Services 25% Private Clients Wealth ma
Slide 24: Operating margin
19 Operating margin For personal use only 35 $m 12 40.0% Operating revenue & Operating profit & margin expenses 32.4 11.1 35.0% 25 10 24.8 34.3% 30.0% Operating profit 19.8 8 Operating margin 15 16.8 25.0% 26.8% 6 6.6 20.0% 5 21.2% CAGR = 24.5% 18.4% 2004 2005 2006 2007 15.0% 4 -5 4.2 10.0% (13.7) C
Slide 25: Funds Management
20 Funds Management For personal use only 10.0 $m Operating revenue ($m) +20.5% 9.0 9.0 8.0 7.5 • Strong net FUM inflows 7.0 6.4 5.9 6.0 5.0 • Focus on IDPS presence 4.0 3.0 • Good relationships with external managers 2.0 1.0 0.0 2004 2005 2006 2007 $m Funds under management ($m) 2,002 • Expanded BD
Slide 26: Private Clients
21 Private Clients For personal use only 10.0 $m Operating revenue ($m) 9.3 +54.2% • Impact of fee 9.0 8.0 7.0 5.9 6.1 improvements 6.0 5.2 • Focus on building 5.0 4.0 3.0 portfolio management services – cross-sell 2.0 1.0 0.0 • Consistent growth from 2004 2005 2006 2007 $m Assets under management (
Slide 27: Fund Services
22 Fund Services For personal use only 9.0 $m Operating revenue ($m) 7.7 8.0 +37.8% • Consistently strong demand for RE 7.0 6.0 5.6 5.0 expertise 4.0 3.1 3.0 2.1 • Domestic and global fund managers 2.0 1.0 0.0 2004 2005 2006 2007 • 35 managers 130 funds • Building depth in corporate and superannuati
Slide 28: Superannuation
23 Superannuation For personal use only 6.0 $m Operating revenue ($m) 5.3 +18.5% 5.0 4.4 • Sydney base with 4.0 eastern seaboard reach 3.4 2.9 3.0 • Equity Trustees brand 2.0 introduced • Increased resources for 1.0 0.0 2004 2005 2006 2007 sales & marketing 700 $m Funds under management ($m) 635 600
Slide 29: Support services
24 Support services For personal use only • Continuing to invest in the business • Right people, right systems to match business requirements • Marketing activity lifting profile • IT projects delivering scale & efficiency • Process improvement in all business lines
Slide 30: Acquisitions
25 Acquisitions For personal use only Strategy • Flexibility in approach • Consistent with existing business lines • Eastern seaboard focus • Clearly measurable returns Capability • Consistent pipeline being reviewed • In-house assessment process • Quick turnaround – deal & integration
Slide 31: Outlook
26 Outlook For personal use only Continue to push organic growth in all business lines Seeking acquisitions where appropriate Investments in people, systems and process improvements Market movements can affect performance Focus on key KPIs: • Revenue • Margin
Slide 32: Outlook
27 Outlook For personal use only Market dynamics remain favourable: • Superannuation contributions = growth • “Better Super” = opportunity • Volatility Æ investors seeking safety • Risk management processes are critical • Diversification of revenue streams • 1st qtr ’08 delivered 21% revenue growth
Slide 33: Summary
28 Summary For personal use only Strong year all-around & good start to 2008 Performance from all business units Margin growth reflects efficiency Step growth under way – eg: FoC Eastern seaboard expansion – Qld office Investment in people and system resources
Slide 34: Mr Tony Killen, Chairman
29 For personal use only Mr Tony Killen Chairman Equity Trustees Limited
Slide 35: Ordinary Business: Financial Statements and Reports
30 Ordinary Business For personal use only Item 1 To receive and consider the Financial Statements and the Reports of the Directors and the Auditor for the year ended 30 June 2007.
Slide 36: Ordinary Business: Remuneration Report
31 Ordinary Business For personal use only Item 2 To adopt the Remuneration Report for year ended 30 June 2007.
Slide 37: Remuneration Report: proxies received
32 Ordinary Business For personal use only Item 2 – proxies received To adopt the Remuneration Report for year ended 30 June 2007. For Against 1,671,047 22,036 Open = 289,892
Slide 38: Ordinary Business: Election of Directors
33 Ordinary Business For personal use only Item 3 To consider the election of Directors.
Slide 39: Item (a): Re-election of Mr Killen
34 Ordinary Business For personal use only Item 3 (a) Mr JA (Tony) Killen retires in accordance with Rule 73(1) of the company’s Constitution and, being an eligible person, offers himself for re-election. Mr David Groves to chair this item of business.
Slide 40: Item (a): proxies received
35 Ordinary Business For personal use only Item 3 (a) – proxies received Mr JA (Tony) Killen retires in accordance with Rule 73(1) of the company’s Constitution and, being an eligible person, offers himself for re-election. For Against 1,721,999 33 Open = 264,797
Slide 41: Item (b): Re-election of Mr Jackson
36 Ordinary Business For personal use only Item 3 (b) Mr Barry J Jackson retires in accordance with Rule 73(1) of the company’s Constitution and, being an eligible person, offers himself for re-election. Mr Tony Killen to re-assume the chair
Slide 42: Item (b): proxies received
37 Ordinary Business For personal use only Item 3 (b) – proxies received Mr Barry J Jackson retires in accordance with Rule 73(1) of the company’s Constitution and, being an eligible person, offers himself for re-election. For Against 1,736,687 545 Open = 249,597
Slide 43: Item (c): Election of Ms Williams
38 Ordinary Business For personal use only Item 3 (c) Ms Alice JM Williams having been appointed in accordance with Rule 60 of the company’s Constitution since the last Annual General Meeting, retires in accordance with that Rule and, being eligible, offers herself for election.
Slide 44: Item (c): proxies received
39 Ordinary Business For personal use only Item 3 (c) – proxies received Ms Alice JM Williams having been appointed in accordance with Rule 60 of the company’s Constitution since the last Annual General Meeting, retires in accordance with that Rule and, being eligible, offers herself for election. F
Slide 45: Special Business: Long-term incentive award
40 Special Business For personal use only Item 4 To approve the long-term incentive award for the Managing Director, Mr Peter J Williams.
Slide 46: Long-term incentive award: proxies received
41 Special Business For personal use only Item 4 – proxies received Long- Term Incentive Award for the Managing Director, Mr Peter J Williams. For Against 1,601,175 73,328 Open = 233,953
Slide 47: Questions
For personal use only 42 Questions
Equity Trustees — Shareholder Meeting (November 2007) on 6ix