Slide 1: Perpetual FY22 Financial Results
Perpetual Limited ABN 86 000 431 827 Angel Place, Level 18, 123 Pitt Street Sydney NSW 2000 25 August 2022 Australia Phone +61 9229 9000 ASX Limited www.perpetual.com.au ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 Perpetual FY22 Financial Results The following an
Slide 2: Perpetual Limited (ASX:PPT) FY22 Results Presentation
Perpetual Limited (ASX:PPT) FY22 Results Presentation For the year ending 30 June 2022 Thursday 25 August 2022
Slide 3: Disclaimer
Disclaimer Important information This presentation is in summary form and is not necessarily complete. It should be should be considered before deciding whether to acquire or hold units in a fund or read together with Perpetual Limited’s (Perpetual) consolidated financial statements strategy. The ap
Slide 4: FY22 Highlights
FY22 Highlights Rob Adams CEO and Managing Director half year ending 31 December 2021
Slide 5: Strong results in every division
Strong results in every division Successful strategy execution and business performance despite market conditions All divisions performed strongly, delivering double-digit growth in earnings Significant investment in new capabilities, products, distribution channels and brands to further drive growt
Slide 6: Overview of FY22 results
Overview of FY22 results Positive momentum across all divisions delivering strong results 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 FY21 FY22 FY21 FY22 1
Slide 7: FY22 operational highlights
FY22 operational highlights Execution of strategy delivering positive outcomes 79% ~A$1b ~A$3b Strongest >A$1tr 9 +49 NPS in net inflows in net inflows in year of new milestone consecutive Record result, of all strategies1 intermediary outperformed their into ESG funds3,4 global equities for Perpetu
Slide 8: Strategy to attract new clients in key capabilities delivering early results
Strategy to attract new clients in key capabilities delivering early results Investment in distribution, marketing and product development expected to drive higher margin flows over the medium term Trillium (Net flows1 by Barrow Hanley (FY22 Net PAMA intermediary flows quarter, A$m) flows1,2 by asse
Slide 9: PCT and PP underpin strength through market cycles
PCT and PP underpin strength through market cycles Providing earnings stability and growth Perpetual Corporate Trust (PCT) Perpetual Private (PP) Delivered a 10 year UPBT CAGR1 of 15% and double digit growth in Consistent delivery of inflows driven by previous adviser growth FY22, demonstrating cont
Slide 10: FY22 priorities
FY22 priorities Continued execution of strategy, delivering on all FY22 priorities Client first Deliver contemporary Investment in refreshed Enhance and embed our Deliver improved digital Remain focused on Exceptional products investment solutions – marketing across key high- corporate sustainabilit
Slide 11: FY22 Financials
FY22 Financials Chris Green Chief Financial Officer year ending 31 December 2021
Slide 12: FY22 financial results
FY22 financial results UPAT up 21% and dividend up 16% FY22 FY214 FY22 v FY21 For the period $m $m (%) Key highlights Operating revenue 767.7 640.6 20% • Revenue growth of 20% driven by contributions for all four business units Total expenses (566.5) (471.2) (20)% • Underlying expenses increased 20%
Slide 13: Strong performance across all business divisions
Strong performance across all business divisions Double digit revenue growth delivered in each division Perpetual Asset Management Perpetual Private Perpetual Corporate Trust 2% 18% Closing AUM ($b)1 8% FUA ($b) FUA ($b) AUM/FUA/FUA $b vs FY21 vs FY21 vs FY21 1,092.3 90.4 17.0 17.4 941.9 98.3
Slide 14: FY22 UPAT analysis
FY22 UPAT analysis 21% increase in UPAT with contributions from all businesses FY21 PAMI PAMA PP PCT Group Support YoY Tax FY22 UPAT1 UPBT UPBT UPBT UPBT Services UPBT movement UPAT Additional earnings from Higher average equity Higher average equity Continued profit Lower revenue from the acquisiti
Slide 15: Expense analysis
Expense analysis Overall expense growth of 20% delivered within FY22 guidance1 5% underlying expense growth 566.5 471.2 5.2 Variable remuneration FY21 Group wide Performance Growth Other PAMI FY22 Expenses2 short-term incentives fee share initiatives3 related Expenses and equity remuneration expense
Slide 16: Cashflow analysis
Cashflow analysis Increase in Free Cash Flow Key movements • Increase in free Free Cash Flow $148m2 cashflow driven by the uplift in net cash receipts in course of operations mainly due to full year impact of Barrow Hanley earnings • Surplus liquid funds1 of $251 million as at 30 June 2022 175.4 • A
Slide 17: Balance sheet
Balance sheet Strong financial position with headroom for further growth FY22 v 30 June 2022 30 June 20211 FY21 For the period $m $m Key movements vs FY21 (%) • Increase in Cash due to inflows from the drawdown of Cash 175.4 147.1 19% debt and operating cash activities • Increase in Goodwill and oth
Slide 18: Dividends
Dividends Strong earnings growth delivering 16% increase in dividends to shareholders • Fully franked ordinary final dividend for FY22 of $0.97 per share • The final dividend represents a payout ratio of 80%1, in line with our stated dividend policy1 • Dividend payable 30 September 2022 18% Divide
Slide 19: Summary & Outlook
Summary & Outlook Rob Adams CEO and Managing Director half year ending 31 December 2021
Slide 20: Outlook
Outlook Positive momentum across all business lines Perpetual Asset Perpetual Asset Perpetual Perpetual Acquisition of Management Management Private Corporate Trust Pendal Group International Australia Strong demand from Growth in flows from Expanding our Expect continued A defining institutional cl
Slide 21: Contacts
Contacts 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 Level 18, Angel Place,
Slide 22: Appendix: Detailed divisional result commentary
Appendix Detailed divisional result commentary
Slide 23: Perpetual Asset Management International
Perpetual Asset Management International Strong growth with a full 12 month contribution from Barrow Hanley FY22 FY21 FY22 v For the period Key Highlights $m $m FY21 (%) ✓ Strong contribution from both Trillium and Barrow Hanley, with a full 12-month revenue contribution from Barrow Hanley, compared
Slide 24: Perpetual Asset Management Australia
Perpetual Asset Management Australia Strong investment performance, combined with new marketing initiatives, driving client engagement FY22 FY21 FY22 v For the period $m $m FY21 (%) Key Highlights ✓ Winner of the Zenith 2021 Fund Manager of the Year award1 Revenue 169.0 165.7 2% ✓ Strong investment
Slide 25: Perpetual Corporate Trust
Perpetual Corporate Trust Major milestone reached with over $1 trillion in FUA FY22 FY21 FY22 v For the period Key highlights $m $m FY21 (%) ✓ Strong growth driven by existing and new clients Debt Markets Services revenue 68.7 62.4 10% ✓ FUA reached a new milestone, surpassing $1 trillion ✓ DMS bene
Slide 26: Perpetual Private
Perpetual Private Continues to deliver solid flows, supplemented by recent acquisitions FY22 FY21 FY22 v FY21 For the period $m $m (%) Key highlights ✓ ~$1 billion in net flows delivered in FY22, with consistent Market related revenue 153.0 126.7 21% contribution from across the business contributin
Slide 27: Appendix: Assets under Management, Funds under Advice and Funds under Administration
Appendix Assets under Management, Funds under Advice and Funds under Administration
Slide 28: Perpetual Asset Management: AUM and flows
Perpetual Asset Management: AUM and flows Combined PAMA and PAMI ($b) Foreign For the period 30 June 2021 Flows Other1 Exchange 30 June 2022 Impacts2 Australian equities 13.9 (1.0) (1.2) - 11.7 US equities 48.2 (5.5) (3.0) 4.5 44.2 Global equities 14.7 3.3 (2.4) 1.4 17.1 Total equities 76.8 (3.2) (6
Slide 29: Perpetual Private FUA and AUM
Perpetual Private FUA and AUM FUA by client segment and AUM FUA ($b) (Inclusive of AUM) AUM ($b) FY22 v FY21 FY22 v FY21 FY22 FY21 FY22 FY21 (%) (%) Community and Social Investments (CSI) 5.2 5.2 0% Select Portfolios 2.8 3.0 (7%) High Net Worth 11.4 11.4 0% Implemented Portfolios 3.7 4.0 (6%) Other
Slide 30: Perpetual Corporate Trust FUA by segment
Perpetual Corporate Trust FUA by segment ($b) For the period FY22 FY21 FY22 v FY21 (%) Public Market Securitisation RMBS - bank (ADI) 57.4 56.9 1% RMBS - non bank 78.4 63.9 23% CMBS and ABS 52.3 39.5 32% Balance Sheet Securitisation RMBS - repos 398.9 331.4 20% Covered bonds 76.3 72.9 5% Debt Market
Slide 31: Appendix: UPAT to NPAT reconciliation
Appendix UPAT to NPAT reconciliation
Slide 32: UPAT to NPAT reconciliation
UPAT to NPAT reconciliation $47m of significant items mainly attributable to acquisitions (22.2) FY22 Transaction and Integration costs: Non-cash Net unrealised Accrued FY22 UPAT amortisation losses on incentive NPAT Trillium Barrow Other Hanley of acquired financial assets compensation intangibles
Slide 33: Appendix: Perpetual Asset Management performance charts
Appendix Perpetual Asset Management performance charts
Slide 34: Recent investment performance
Recent investment performance Proportion of strategies outperforming benchmark1,2 Perpetual Asset Management Australia3 100% 100% 92% 85% 85% 80% 80% 86% 77% 64% 69% 46% 50% 50% 38% 14% 0% 17% 1 year 3 year 5 year 1 year 3 year 5 year 1 year 3 year 5 year 1 year 3 year 5 year 1 year 3 year 5 year 1
Slide 35: PAMA investment performance
Excess returns above benchmark Below benchmark returns PAMA investment performance Majority of funds outperforming over 3 years to 30 June 2022 Annualised performance (%)1 Excess returns above benchmark (%)1 30 June 2022 Period ending 30 June 2022 Source: Perpetual, RBC and FactSet as at 30 June 202
Slide 36: PAMI (Barrow Hanley) investment performance
Excess returns above benchmark Below benchmark returns PAMI (Barrow Hanley) investment performance Majority of funds outperforming over 3 years to 30 June 2022 Annualised performance (%)1 Excess returns above benchmark (%)1 30 June 2022 Period ending 30 June 2022 Source: Barrow Hanley as at 30 June
Slide 37: PAMI (Trillium) investment performance
Excess returns above benchmark Below benchmark returns PAMI (Trillium) investment performance Recent performance impacted by sector positions Annualised performance (%)1 Excess returns above benchmark (%)1 30 June 2022 Period ending 30 June 2022 Source: Trillium performance data as at 30 June 2022.