Perpetual Limited · ASX:PPT
Perpetual — Shareholder Meeting (October 2022)
88 slides from Perpetual's shareholder meeting presentation, Oct 20, 2022
Slide 1: Perpetual Annual General Meeting 2022 announcement
Perpetual Limited ABN 86 000 431 827 Angel Place, Level 18, 123 Pitt Street Sydney NSW 2000 For personal use only 20 October 2022 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 lodgment Pe
Slide 2: Chairman's address: results and FY22 performance
PPT FY22 ANNUAL GENERAL MEETING Chairman Mr Tony D’Aloisio For personal use only Shortly I will ask our CEO and Managing Director, Rob Adams, to deliver his address. But before I do, as Chairman and on behalf of our Board, I would like to first, provide some comments on our results and performance f
Slide 3: Dividends and delivery of strategic initiatives
For our shareholders, this result allowed for total dividends in FY22 to be $2.09 per share, up 16% on FY21. This represents a payout ratio of 80% of UPAT, which is towards the upper end of the Board’s stated policy to For personal use only payout 60% to 90% of UPAT each year. The Board also determi
Slide 4: Asset management progress and investment performance
Following the successful acquisition of Barrow Hanley in FY21, Perpetual Asset Management International (PAMI) continued to build out its international presence by investing further in global distribution, For personal use only marketing and product development. We said that we would deliver with th
Slide 5: Sustainability strategy and ESG commitments
The strategy provides clear and ambitious targets for the business to reach, with 35 commitments to be reported on annually as part of Perpetual’s Sustainability Report. For personal use only The Board and Executive Committee look forward to progressing these commitments and reporting against them i
Slide 6: Board renewal and executive remuneration
Cooper has been a Non-Executive Director at Perpetual since September 2019 and has played a very important role in the transformation of Perpetual over the past three years. For personal use only In relation to the proposed acquisition of Pendal, in order to ensure continuity of knowledge and repres
Slide 7: Pendal Group acquisition terms
need to add up to three additional directors. Pendal Group Acquisition For personal use only Let me now move to the second subject which I said earlier that I would cover - the Pendal Group acquisition. On the 25th August, Perpetual announced that it had entered into a binding Scheme Implementation
Slide 8: Pendal combination rationale and synergies
lift underlying earnings and shareholder value some three years ago across all businesses but importantly, in asset management. The acquisitions of Barrow Hanley and Trillium and the addition of important For personal use only international distribution capability is now providing results and has ex
Slide 9: Management delivery and acquisition discipline
They will continue to add strength to the combined group. Thirdly, extracting value from acquisitions to achieve growth requires discipline and the Board is confident that our management team has the For personal use only credentials and capability to deliver. In coming to that conclusion, we have r
Slide 10: Completion conditions and timing
performance of the two businesses in the lead up to completion. In considering future growth opportunities, it is unlikely that the Board would approve any major new acquisition until it is comfortable that the For personal use only use of shareholder funds for these acquisitions is providing an app
Slide 11: Concluding remarks
Concluding remarks In closing, the Board continues to be proud of the manner in which all teams at Perpetual continue to deliver outcomes for clients and For personal use only shareholders. The Board and I would like to thank CEO, Rob Adams and the entire leadership team who have maintained their di
Slide 12: CEO's address: a year of investing for growth
PPT FY22 ANNUAL GENERAL MEETING CEO and Managing Director Mr Rob Adams For personal use only Good morning everyone and thank you Tony. A year of investing for growth Financial Year 2022 was a year characterised by investment and growth across all areas of Perpetual’s business, in particular, the con
Slide 13: FY22 results overview
We have also continued to invest in Environmental, Social and Governance (ESG) capabilities across all of our businesses. Our investment has remained focused and disciplined, with our expense For personal use only growth for the full year delivered within guidance. Perpetual delivered total revenue
Slide 14: Investment performance and net inflows
Despite these market movements, our relative investment performance across our asset management businesses has been very strong, with 79% of our strategies outperforming over the three years to 30 June. I’ll For personal use only provide a more recent update on our investment performance later in th
Slide 15: Unique combination of businesses and market environment
Unique combination of businesses Our unique business combination, with around 30% of our total revenues coming from non-market linked sources in PCT and PP, has supported us extremely well through this difficult market cycle. For personal use only We have diversity in services, clients and markets,
Slide 16: Q1 FY23 summary
during such cycles that both Perpetual’s Australian Equities team, and our various capabilities in Barrow Hanley should perform well and indeed they are. Both these teams have generated substantial For personal use only outperformance of relevant indices and have added material value to our clients,
Slide 17: PAMA performance and awards
We were thrilled that PAMA last Friday received the Zenith Fund Manager of the Year award for the second year running. As one of Australia’s longest serving and most trusted investment managers, this For personal use only award highlights the dedication and expertise of our investment teams in remai
Slide 18: Perpetual Corporate Trust and Perpetual Private update
Importantly, the work to grow Perpetual Digital’s client base saw two new client wins in the quarter, including a joint MFS and Laminar Capital service capability winning a large wealth management mandate. These For personal use only clients will be onboarded in the coming 6-12 months. Lastly in PP,
Slide 19: Perpetual's Prosperity Plan commitments
Major commitments within the Plan include: • For Perpetual to have carbon neutral operations by FY23, • For our overall business operations to use 100% renewable For personal use only energy sources by FY25, • Giving the equivalent of 1% of our underlying profit before tax through community giving a
Slide 20: Planet and People progress
In addition to Trillium’s own commitment to be net zero by 2050, and as a signatory of the net Zero Asset Managers Initiative, the team at Trillium published an interim net zero target for 75% of holdings in their larger For personal use only cap equity strategies to commit to setting science-based
Slide 21: Communities and governance
Moving to Communities, we continue to make progress on our RAP to build positive outcomes with Aboriginal and Torres Strait Islander clients and communities. The specific aspirations within our RAP are an For personal use only important focus for our people, and through this focus and ongoing good g
Slide 22: Pendal brands and combined group
• J O Hambro – a global equities asset manager with specialist investment capabilities across US, UK, European, Asian, emerging markets and global equities, as well as multi-asset and fixed For personal use only income capabilities, • TSW – a US-based value-oriented investment firm, with a 50-year h
Slide 23: Strategic rationale and expected benefits
increasingly competitive and increasingly global. This growth in competition and globalisation has created margin pressures, in an environment where the cost of doing business is growing. We firmly For personal use only believe that bringing these two quality businesses together would combine the ad
Slide 24: Progress update: bringing two businesses together
Progress update – bringing two businesses together Since the acquisition announcement in August, we are pleased to report that we have made solid progress on integration planning, with the formation of a joint Transaction Integration Committee (TIC), chaired by For personal use only Sam Mosse our Ch
Slide 25: Summary and outlook
Our unique business combination, with non-market linked revenues in PCT and PP has supported us extremely well through this market cycle, providing a real anchor for the Group and giving us capacity to continue For personal use only to invest through market cycles. Our investment performance is stro
Slide 26: People and Remuneration Committee Chairman's address
PPT 2022 Annual General Meeting People and Remuneration Committee Chairman Nancy Fox For personal use only Good morning. As Chairman of the People and Remuneration Committee, on behalf of the Board it is my pleasure to present to you today our key remuneration outcomes for the 2022 financial year. A
Slide 27: Strategic delivery and remuneration outcomes
Barrow Hanley exceeded the stated target of 20% underlying EPS accretion in the first full year following acquisition, Trillium Asset Management delivered over A$639m of positive net inflows and the For personal use only acquisitions of Jacaranda Financial Planning and Laminar Capital, which each co
Slide 28: External market conditions
KMP align to the bonus funding levels approved more broadly across Perpetual. External market conditions For personal use only FY22 presented dynamic market conditions globally. The COVID-19 pandemic continued to be a driver of volatility in several markets in which Perpetual operates. As we emerged
Slide 29: FY23 remuneration changes
With this in mind, the Board reviewed compensation for Executive KMP and considered whether the current long-term incentive (LTI) plan should be enhanced. A number of resulting changes will take effect for For personal use only the performance period commencing in FY23. Firstly, aggregate fixed pay
Slide 30: Growth LTI and Non-Executive Director fee cap
In order to support successful integration and implementation across a number of key deliverables, in September 2022, the Company allocated a growth-orientated long-term incentive to Executive KMP. For personal use only As set out in the Notice of Meeting, vesting of this grant will be subject to me
Slide 31: For personal use only
shareholder interests whilst also ensuring that our team is appropriately remunerated such that your company has the best possible opportunity to deliver on our strategic goals. For personal use only [END] 6
Slide 32: Perpetual Limited 2022 Annual General Meeting
For personal use only Perpetual Limited (ASX:PPT) 2022 Annual General Meeting ABN 86 000 431 827 20 October 2022
Slide 33: Disclaimer
Disclaimer For personal use only This presentation is in summary form and is not necessarily complete. It should be read The Zenith Fund Awards were issued on 14 October 2022 by Zenith Investment Partners (ABN together with Perpetual Limited’s (Perpetual) and PendalGroup Limited’s (Pendal) 27 130 13
Slide 34: Mr Tony D'Aloisio AM, Chairman
For personal use only Mr Tony D’Aloisio AM Chairman
Slide 35: Perpetual's Board
Perpetual’s Board For personal use only Craig Ueland Fiona Trafford-Walker Independent Director Independent Director BA (Hons and Distinction), MBA BEc, M. Fin (Hons), CFA Appointed December 2019 Appointed September 2012 4
Slide 36: Perpetual's Executive Team
Perpetual’s Executive Team For personal use only Amanda Gazal Amanda Gillespie Chris Green Group Executive, Integration Group Executive, Perpetual Chief Financial Officer Joined: 2020 Asset Management Australia Joined: 2006 Joined: 2018 David Lane Richard McCarthy Sam Mosse Group Executive, Perpetua
Slide 37: KPMG audit partner
For personal use only Brendan Twining Partner Audit, Assurance & Risk Consulting KPMG 6
Slide 38: Today's Agenda
Today’s Agenda For personal use only 1. Presentation of FY22 Financial Statements and Reports 2. Adoption of the Remuneration Report for FY22 3. Re-appointment of Greg Cooper as a Non-executive Director 4. Increase in the Non-executive Director remuneration pool 5. Approval of the FY22 variable ince
Slide 39: Mr Tony D'Aloisio AM, Chairman
For personal use only Mr Tony D’Aloisio AM Chairman
Slide 40: Voting is now open
For personal use only Voting is now open Voting will close five minutes after close of meeting 9
Slide 41: How to vote online
How to vote online For personal use only Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform). 2 Proxy Number and Postcode. 3 for each item of business. Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 990 3
Slide 42: Asking a question online or by phone
Asking a question online Asking a question by phone For personal use only Only Shareholders and Proxyholders Shareholders Call Question Line are able to ask questions must register for on 1800 875 033 ? a unique PIN to ask live questions Click on ‘Ask a Question’ Ask a Question 1 during AGM The mode
Slide 43: Mr Tony D'Aloisio AM, Chairman
For personal use only Mr Tony D’Aloisio AM Chairman
Slide 44: Mr Rob Adams, CEO & Managing Director
For personal use only Mr Rob Adams CEO & Managing Director
Slide 45: Overview of FY22 results
Overview of FY22 results Positive momentum across all divisions delivering strong results For personal use only Operating revenue1 $767.7m UPAT2 $148.2m NPAT $101.2m ROE3 16.2% Dividend4 $2.09 20% 21% 39% 44 16% bps 767.7 640.6 148.2 101.2 122.8 72.9 16.2 2.09 15.7 1.80 FY21 FY22 FY21 FY22 FY21 FY22
Slide 46: FY22 operational highlights
FY22 operational highlights Execution of strategy delivering positive outcomes For personal use only 79% ~A$1b ~A$3b Strongest >A$1tr 9 +49 NPS in net inflows in net inflows in year of new milestone consecutive Record result, of all strategies1 intermediary outperformed their into ESG funds3,4 globa
Slide 47: Unique combination of businesses
Unique combination of businesses Providing services across equity markets, credit markets, real assets, personal wealth and philanthropy For personal use only FY22 operating revenue by division1,2 ▪ Mix of businesses, PCT and PP has provided strength PCT Digital Perpetual Asset Management through eq
Slide 48: Market environment
Market environment US equities increasingly volatile Surging bond yields have shaken up financial markets For personal use only Australian 10 Year Bond Yield US S&P 500 March 2022: 5.0 Bond sell-off: 5000 First Fed hike 4.5 • Driven by rising inflation 4.0 • And by central banks raising rates 4500 •
Slide 49: Q1 FY23 Summary
Q1 FY23 Summary1 For personal use only Perpetual total AUM was A$89.8 billion2 1% lower than the prior period Perpetual Asset Management International Perpetual Asset Management Australia - AUM A$68.5 billion1,2, down 1% - AUM A$21.3 billion1, stable compared to prior quarter - Reduction in AUM larg
Slide 50: Perpetual's Prosperity Plan
Perpetual’s Prosperity Plan For personal use only Planet People For more than 135 years, Accelerate the low carbon transition Champion inclusion and high Perpetual has been building Help our clients navigate the risks and performance prosperity for our clients. opportunities of a low carbon future a
Slide 51: Building a more equitable and sustainable world
Building a more equitable and sustainable world Active year in FY22 across priority sustainability pillars For personal use only Planet People Communities Governance Five ESG funds launched in Europe Making progress on the 18 actions and +49 Net Promoter Score, our highest ever classified as Article
Slide 52: Pendal - a highly respected global, multi-boutique asset manager
Pendal - a highly respected global, multi-boutique asset manager World-class investment teams with significant capacity for growth For personal use only Key facts Brands AUM by Asset Class4 Assets Under Management1 A$104.5b 7% 15% Fee Revenue2 A$668m 9% Global & EM Equities An Australian brand with
Slide 53: Strategic rationale & expected benefits
Strategic rationale & expected benefits Combining to create a global, diverse asset management business with improved scale and reach For personal use only Aligned with our Significantly Strong Highly Combination of Significant re- Financially attractive growth strategy expands global organisational
Slide 54: Acquisition progress update
Acquisition progress update Bringing two businesses together For personal use only • Solid progress on integration planning with the formation of a joint Transaction Integration Committee (TIC) with representatives from both Pendal and Perpetual • TIC Chaired by Sam Mosse, Chief Risk Officer who has
Slide 55: Summary and outlook
Summary and outlook Focused on strategy execution through equity market cycles For personal use only All divisions performed strongly in FY22, delivering double-digit growth in earnings Strong investment performance across investment capabilities with 93%1 of Barrow Hanley’s equities strategies and
Slide 56: Financial statements and reports
Financial statements and reports For personal use only Mr Tony D’Aloisio AM Chairman
Slide 57: Asking a question online or by phone
Asking a question online Asking a question by phone For personal use only Only Shareholders and Proxyholders Shareholders Call Question Line are able to ask questions must register for on 1800 875 033 ? a unique PIN to ask live questions Click on ‘Ask a Question’ Ask a Question 1 during AGM The mode
Slide 58: Mr Tony D'Aloisio AM, Chairman
For personal use only Mr Tony D’Aloisio AM Chairman
Slide 59: Resolution 1: Remuneration Report
Resolution 1: Remuneration Report For personal use only To adopt the Remuneration Report for the financial year ended 30 June 2022. Note: Perpetual’s key management personnel, named in the Company’s 2022 Remuneration Report, or their closely related parties, cannot vote on this resolution either in
Slide 60: Ms Nancy Fox AM, Chairman People and Remuneration Committee
For personal use only Ms Nancy Fox AM Chairman – People and Remuneration Committee
Slide 61: Mr Tony D'Aloisio AM, Chairman
For personal use only Mr Tony D’Aloisio AM Chairman
Slide 62: Resolution 1: Remuneration Report
Resolution 1: Remuneration Report For personal use only To adopt the Remuneration Report for the financial year ended 30 June 2022. Note: Perpetual’s key management personnel, named in the Company’s 2022 Remuneration Report, or their closely related parties, cannot vote on this resolution either in
Slide 63: Resolution 1: Remuneration Report voting results
Resolution 1: Remuneration Report For personal use only Valid proxies received 14,436,591 For (86.01%) 1,067,926 Open (6.36%) 1,279,637 Against (7.62%) Abstain 202,242 32
Slide 64: How to vote online
How to vote online For personal use only Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform). 2 Proxy Number and Postcode. 3 for each item of business. Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 990 3
Slide 65: Resolution 2: Re-appointment of Mr Greg Cooper
Resolution 2: Re-appointment of Mr Greg Cooper For personal use only Greg Cooper Independent Director FIA, FIAA, BEc (Actuarial Studies) Appointed September 2009 That Mr Greg Cooper, retiring as a Director of the Company in accordance with clause 20.9.1 of the Company’s Constitution and who has cons
Slide 66: Mr Greg Cooper, Non-executive Director
For personal use only Mr Greg Cooper Non-executive Director
Slide 67: Mr Tony D'Aloisio AM, Chairman
For personal use only Mr Tony D’Aloisio AM Chairman
Slide 68: Resolution 2: Re-appointment of Mr Greg Cooper
Resolution 2: Re-appointment of Mr Greg Cooper For personal use only Greg Cooper Independent Director FIA, FIAA, BEc (Actuarial Studies) Appointed September 2009 That Mr Greg Cooper, retiring as a Director of the Company in accordance with clause 20.9.1 of the Company’s Constitution and who has cons
Slide 69: Resolution 2: voting results
Resolution 2: Re-appointment of Mr Greg Cooper For personal use only Valid proxies received 14,733,326 For (87.58%) 1,068,954 Open (6.35%) 1,019,576 Against (6.06%) Abstain 183,585 38
Slide 70: How to vote online
How to vote online For personal use only Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform). 2 Proxy Number and Postcode. 3 for each item of business. Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 990 3
Slide 71: Resolution 3: Increase in Non-executive Director Remuneration Pool
Resolution 3: Increase in Non-executive Director Remuneration Pool For personal use only That approval is given, for the purposes of ASX Listing Rule 10.17 and clause 20.6.1(a) of the Company’s Constitution, that the aggregate amount of remuneration that may be paid in any financial year commencing
Slide 72: Mr Tony D'Aloisio AM, Chairman
For personal use only Mr Tony D’Aloisio AM Chairman
Slide 73: Resolution 3: Increase in Non-executive Director Remuneration Pool
Resolution 3: Increase in Non-executive Director Remuneration Pool For personal use only That approval is given, for the purposes of ASX Listing Rule 10.17 and clause 20.6.1(a) of the Company’s Constitution, that the aggregate amount of remuneration that may be paid in any financial year commencing
Slide 74: Resolution 3: voting results
Resolution 3: Increase in Non-executive Director Remuneration Pool For personal use only Valid proxies received 14,470,568 For (86.12%) 1,066,481 Open (6.35%) 1,266,032 Against (7.53%) Abstain 183,315 43
Slide 75: How to vote online
How to vote online For personal use only Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform). 2 Proxy Number and Postcode. 3 for each item of business. Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 990 3
Slide 76: Resolution 4: 2022 variable incentive equity grants for CEO
Resolution 4: Approval of the 2022 variable incentive equity grants and a growth orientated LTI grant for the Managing Director & CEO For personal use only Resolution 4(a) That approval is given for all purposes, including ASX Listing Rule 10.14, for the issue of 34,243 share rights to Mr Rob Adams
Slide 77: Resolution 4(a): voting results
Resolution 4 (a): Approval of the 2022 variable incentive equity grants for the Managing Director & CEO For personal use only Valid proxies received For 14,284,357 (85.00%) Open 1,063,593 (6.33%) Against 1,456,906 (8.67%) Abstain 200,585 46
Slide 78: How to vote online
How to vote online For personal use only Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform). 2 Proxy Number and Postcode. 3 for each item of business. Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 990 3
Slide 79: Resolution 4(b): performance rights for CEO
Resolution 4: Approval of the 2022 variable incentive equity grants and a growth orientated LTI grant for the Managing Director & CEO For personal use only Resolution 4(b) That approval is given for all purposes, including ASX Listing Rule 10.14, for the issue of 39,634 performance rights to Mr Rob
Slide 80: Resolution 4(b): voting results
Resolution 4 (b): Approval of the 2022 variable incentive equity grants for the Managing Director & CEO For personal use only Valid proxies received 14,468,498 For (86.07%) 1,063,693 Open (6.33%) 1,277,009 Against (7.60%) Abstain 196,241 49
Slide 81: How to vote online
How to vote online For personal use only Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform). 2 Proxy Number and Postcode. 3 for each item of business. Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 990 3
Slide 82: Resolution 4(c): Growth Long-Term Incentive for CEO
Resolution 4: Approval of the 2022 variable incentive equity grants and a growth orientated LTI grant for the Managing Director & CEO For personal use only Resolution 4(c) That approval is given for all purposes, including ASX Listing Rule 10.14, for the issue of 170,161 performance rights to Mr Rob
Slide 83: Resolution 4(c): voting results
Resolution 4 (c): Approval of the 2022 variable incentive equity grants for the Managing Director & CEO For personal use only Valid proxies received 13,919,697 For (82.81%) 1,064,054 Open (6.33%) 1,826,456 Against (10.87%) Abstain 195,234 52
Slide 84: How to vote online
How to vote online For personal use only Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform). 2 Proxy Number and Postcode. 3 for each item of business. Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 990 3
Slide 85: Questions?
Questions? For personal use only Update image
Slide 86: How to vote online
How to vote online For personal use only Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform). 2 Proxy Number and Postcode. 3 for each item of business. Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 990 3
Slide 87: Thank you
Thank you For personal use only Update image
Slide 88: Contacts
Contacts For personal use only Emma Rumble Susie Reinhardt General Manager, Corporate Affairs Head of Investor Relations & Investor Relations emma.rumble@perpetual.com.au susie.reinhardt@perpetual.com.au +612 9229 3998 +612 9125 7047 Connect with us at: Head Office About Perpetual perpetual.com.au L