Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — Macquarie Equities 7th Annual Australian Conference 2007
29 slides from Eqt's conference presentation, May 3, 2007
Slide 1: Trusted since 1888 - Macquarie Equities Annual Australian Conference
‘Trustees Trusted since 1888 Macquarie Equities 7'* Annual Australian Conference - 3 May 2007 Peter Williams Managing Director
Slide 2: Equity Trustees
a Equity Trustees CO ioe) “e) = ® O & ” S 2 s he i ‘Trustees An independent Australian based financial services firm that is increasing its market presence and generating improved returns. Our performance is based upon: > Well developed revenue streams > Clear performance indicators » An established
Slide 3: Key themes
Key themes 1. Background > History > Company overview 2. Financial services 3. Revenue streams > Funds Management > Private Clients > Fund Services / Responsible Entity (RE) > Superannuation 4. Key indicators 5. Growth strategy CO ioe) “e) = ® O & ” S 2 s he i 6. 2007 forecast
Slide 4: History
History ‘Trustees CO ioe) “e) = ® O & ” S 2 s he i Founded in 1888 — trustee company heritage 1980’s — expansion of trustee services into private client wealth management Early 2000’s — introduction of managed fund distribution and development of responsible entity services 2003 — significant change
Slide 5: Uncomplicated structure and revenue split
Managing Director c oe) co el <b) 1S) wal Private Funds Fund Superannuation rr; Clients Management Services 30% of 30% of 22% of 18% of re) operating operating operating operating L revenue revenue revenue revenue 3 . Support . Services E » An uncomplicated structure designed for efficiency
Slide 6: Company overview
a Company overview CO ioe) “e) = ® O & ” S 2 s he i > > > > > > > ‘Trustees Market capitalisation of approx $210m 7.8m shares on issue Inclusion in S&P/ASX All-Ordinaries Index Offices in Melbourne, Sydney & Brisbane 140 employees Operating revenue up by 90% (2004-2007) Share price up 6-fold since M
Slide 7: EQT share price
EQT share price CO ioe) “e) = ® O & ” S 2 s he i Trustees High: $28.50 (19/2/07) $30.00 $20.00 $10.00 $5.00 2006 full-year results $0.00 announcement Low: $4.55 (12/3/03) » : > © oh hh 6 FF PF oF FF PF oP A oF oF a oF o_o oF of oF Wt Fe of BRS Saga GHIIE EC CIN GINGA INORG CC
Slide 8: Growth strategy
pe Growth strategy ‘Tristees 2003 2004 2005/06 2006/07 > oo Trowt Development of Cultural change. the basis for 5 ; future viability provement in Improvement in strategy based processes profit margins on key revenue enabling better through Development of ; quality business efficiency gains. appropri
Slide 9: Investment markets
a Investment markets Trustees Australian investment funds are growing at a compound rate of 11% pa 1991 1996 2001 2006 $1,010b $619b Cc —) —) Australia is the largest investment fund market in Asia ‘Australia $1,010b . Hong Kong Japan Korea Singapore $620b $632b $268b } y Trusted since 1888 Source:
Slide 10: Investment markets
a Investment markets ‘Trustees Australia has the 4th largest investment fund market in the world..... 2015 $2,440b _.and is forecast to grow Tranee Luxembourg Australia $1,834b . q) Source: Axiss ~ Australia, A Global Financial Services Centre (Benchmark Report, August 2006). Italy Japan Ireland $60
Slide 11: Investment markets
Investment markets CO ioe) “e) = ® O & ” S 2 s he i ‘Trustees Australia is an attractive investment market > Superannuation guarantee >» Growing number of high net worth investors » Sophisticated > Prudent regu marketplace atory environment > Breadth of asset classes and managers > Presence of g oba
Slide 12: Funds Management
pe Funds Management A strategic approach to the value chain 2) co co be since Trusted Trustee / "> Investment Manager >, Investor » | Provision of RE services to a range of domestic and international investment managers Alliances with external investment managers to offer EQT co- branded fimds Insti
Slide 13: Funds Management
Funds Management EQT Funds Management undertakes two key roles ‘Trustees rere] Product Sales & c Management Marketing Liaison with external Distribution of EQT co- cab) fund managers to develop branded funds to QO a range of EQT co- wholesale and retail oo branded funds. investors through oe platfor
Slide 14: EQT co-branded funds
a EQT co-branded funds CO ioe) “e) = ® O & ” S 2 s he i ‘Tnistees Australian | International Fixed Property Equities Equities Interest > Absolute > Global Hybrid > Mortgages return (intrinsic val) Australian > LPTs (Aust) >» Concentrated | > Emerging Global » Global > Small co markets 5 Wi F >» High
Slide 15: Private Clients
fe Private Clients Solutions designed for client wealth creation and management ‘Trustees Portfolio Investment services utilising in- Management — house asset management capability Trusts & — Traditional business line governed Estates by Trustee Companies Act — Combines trustee and asset Philanthrop
Slide 16: Private Clients
CO ioe) “e) = ® O & ” S 2 s he i Private Clients Meeting a range of client requirements Generates investment returns relative to client risk profile « Asset Management Fiduciary responsibility ->——> Trustee heritage is the basis of all client interaction
Slide 17: Private Clients
CO ioe) “e) = ® O & ” S 2 s he i Private Clients ‘Trustees Wealth creation Asset & management Management Philanthro > Portfolio » In-house $4oom+ under Management » Salaried staff, not management Service commission based — $15m+ distributed » Service levels run interests aligned with per annum from
Slide 18: EQT Flagship Fund
a EQT Flagship Fund CO ioe) “e) = ® O & ” S 2 s he i ‘Trustees > Managed by Asset Management team » A concentrated portfolio of S&P/ASX200 stocks > Style neutral, tax effective with a longer term focus > Mix of qualitative and quantitative research methods > # 5 Australian Equity General fund (3 yea
Slide 19: EQT Charitable Balanced Fund
EQT Charitable Balanced Fund ‘Trustees A balanced fund exclusively for charitable investors > Fund of funds model investing predominantly in EQT co-branded funds > Exposure to Australian & international equities, property, fixed interest and cash > Rated # 1 multi-sector growth fund on the basis of
Slide 20: Fund Services
a Fund Services Strong growth in Responsible Entity services ‘Trustees > Highly specialised — legal & technical > Compliance overlay > Regulatory overlay > Significant barriers to entry >» Differentiation between start up and ongoing requirements — experience is valuable > Domestic and international
Slide 21: Responsible Entity
Responsible Entity ‘Tnistees Service chain Risk Compliance Documents Regulatory Operations management Due diligence Development Offer Management of Fund and plan on manager and approval of — documentation. required operation. compliance and = Appointment of documentation Daily audit plans external s
Slide 22: Responsible Entity - Competitive advantage
pa Responsible Entity Competitive advantage ‘Trustees > Experience — > 25 managers; >90 funds > Process — risk management & compliance >» Operations — leverage Funds Management experience > Size — large enough to generate scale, small enough to be efficient > Internal resources Able to introduce new
Slide 23: Superannuation
Trusted since 1888 Focus on corporate superannuation services > Wealthpac master-trust (acquired in 2003) > Templetons master-trust (2005) >» Freedom of Choice master-trust (2007)* Superannuation Trustees TEMPLETON _ 5 FREEDOM | : pi col WEALTHPAC * Acquisition is subject to due diligence and regula
Slide 24: Superannuation
pa Superannuation Growth in platform > Addition of 2 master-trusts since 2005 > Multiple distribution channel opportunities » Significant cross-sell opportunities >» Relationship based for members / employers > Participants in “9% contribution” market segment > Proprietary systems > On-line capabili
Slide 25: Key Indicators
pe Key Indicators Activity = growth. Measured by key indicators. CO ioe) “e) = ® O & ” S 2 s he i * Excludes gains from the sale of investments. Operating profit is pre-tax. * Represents basic EPS calculation. A capital raising in 2005 increased the weighted average shares on issue by 14%. * Share p
Slide 26: Growth strategy
a Growth strategy Step growth > Opportunities likely to come in wealth management and super (master-trust) > In-house capability to assess opportunities > All opportunities assessed against existing capabilities and returns to all stakeholders > Freedom of Choice acquisition to be completed by end-J
Slide 27: 2007 forecast
a 2007 forecast ‘Trustees Based on projections for the 2007 financial year — assuming that market conditions remain favourable 2004 | 2005 2006 2007* Operating revenue’ | $16.8m | $19.8m | $24.8m | $32m (est.) Operating margin’ 18.4% 21.2% 26.8% | 34.0% (est.) Operating profit’ $3.1m $4.2m $6.6m | $
Slide 28: Looking ahead
a Looking ahead > Financial services sector growth opportunities ‘Trustees > Relationship based = opportunities > Good buy-in from key staff and board who are determined to continue growing the company > Understanding of key revenue drivers > Build for stakeholders CO ioe) “e) = ® O & ” S 2 s he i
Slide 29: SIME
i SIME 7 Lo iran Aeon ‘Trustees Trusted since 1888 Equity Trustees Limited ABN 46 004 031 298, Australian Financial Services Licenee No 240975. This document was prepared by Equity Trustees Limited and is only provided for information purposes. It is not intended to take the place of professional ad
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