Perpetual Limited · ASX:PPT
Perpetual — Morgan Stanley Asia-Pac Summit 2015
23 slides from Perpetual's conference presentation, Nov 18, 2015
Slide 1: Morgan Stanley Asia-Pac Summit 2015
18 – 19 November 2015 For personal use only MORGAN STANLEY ASIA-PAC SUMMIT 2015 PERPETUAL LIMITED Geoff Lloyd Chief Executive Officer & Managing Director Gillian Larkins Chief Financial Officer ABN 86 000 431 827
Slide 2: Agenda
AGENDA For personal use only │ Overview and strategy │ Financials 2
Slide 3: Perpetual Limited: Australia's largest and most trusted independent wealth manager
PERPETUAL LIMITED For personal use only Australia’s largest and most trusted independent wealth manager ONE PERPETUAL PERSONAL ADVISORY TO SPECIALISED ASSET CORPORATE TARGETED HIGH NET WORTH MANAGEMENT FIDUCIARY SERVICES SEGMENTS FOUNDATIONS • Heritage of 129 years • Multi-generational clients • Per
Slide 4: Macro and Strategic Themes
MACRO AND STRATEGIC THEMES For personal use only Investment themes Opportunities Growth and concentration in super driving overall ‘Retirement boom’ ‘Margin pressure’ market Active investment of assets widened from Australian Equities to include Global Equities, Credit and Multi Asset strategies
Slide 5: Australian Context
AUSTRALIAN CONTEXT AUSTRALIAN FUNDS MANAGEMENT INDUSTRY IS UNDERPINNED BY A MANDATORY SUPERANNUATION SYSTEM For personal use only 4th largest pension market in the world by Impact of superannuation guarantee to 12% on assets assets with over A$1,9b^ Pension funds have a high allocation to equities C
Slide 6: Perpetual's Strategy
PERPETUAL’S STRATEGY For personal use only LEAD in core businesses EXTEND into adjacent markets EXPLORE new opportunities GOALS PEOPLE CLIENTS SHAREHOLDERS Employee Engagement Client Advocacy NPAT growth Excellence Australia’s largest Delivering exceptional outcomes and most trusted Integrity Vision
Slide 7: Strategy Focused on Targeted Clients and Segments
STRATEGY FOCUSED ON TARGETED CLIENTS AND SEGMENTS For personal use only Business Target clients Segments Needs Perpetual Professional Institutional super funds Scale, long term performance, strategic Investments investment decision- partnerships, consultant ratings makers Multi-manager funds Reputat
Slide 8: Perpetual Investments – Strong Investment Performance
PERPETUAL INVESTMENTS PERPETUAL INVESTMENTS – STRONG INVESTMENT PERFORMANCE For personal use only Perpetual Investments is one of Australia’s leading Australian equities managers and also manages investments in other asset classes including fixed income, multi asset and global equities. It will seek
Slide 9: Extend into Global Equities
PERPETUAL INVESTMENTS EXTEND INTO GLOBAL EQUITIES For personal use only GLOBAL SHARE FUND LAUNCH PROGRAM Target Launched $1b FUM Aug 2014 People and Consultants and Major platform Dealer Group Models and Process researchers placements APLs multi channels by Aug 2017 On On On target target target Str
Slide 10: Private: HNW Segment Represents 80% of the Total $5b Advice Revenue Pool
PERPETUAL PRIVATE HNW SEGMENT REPRESENTS 80%1 OF THE TOTAL $5B ADVICE REVENUE POOL For personal use only Perpetual Private is a leading provider of financial solutions for high net worth individuals in targeted segments of business owners, established wealthy and professionals. It is also a leading
Slide 11: Independent Wealth Management
PERPETUAL PRIVATE INDEPENDENT WEALTH MANAGEMENT For personal use only Funds Under Advice, $b Performance of Flagship Strategies 13.1 PERFORMANCE – JUNE 2015 1 YR (%) 3 YR (%) 5 YR (%) Multi Manager – Balanced 9.9 14.2 10.7 4.2 Multi Manager Funds Composite Benchmark 10.7 13.4 10.3 Excess Return -0.8
Slide 12: Corporate Trust: Leverage Leadership into High Margin Adjacencies
PERPETUAL CORPORATE TRUST LEVERAGE LEADERSHIP INTO HIGH MARGIN ADJACENCIES For personal use only Perpetual Corporate Trust is a leading provider of corporate trustee services. The business comprises of Trust Services and Fund Services providing services to debt capital markets and the funds manageme
Slide 13: Financials
For personal use only FINANCIALS GILLIAN LARKINS CHIEF FINANCIAL OFFICER
Slide 14: Financial Performance – Group
FINANCIAL PERFORMANCE – GROUP INCREASE IN NPAT AND DIVIDENDS For personal use only FY15 2H15 1H15 FY14 FY15 v For the period KEY THEMES: $m $m $m $m FY14 Operating revenue 497.1 252.6 244.5 440.6 13% • Operating revenue increased Total expenses (312.8) (156.2) (156.6) (293.8) (6%) due to higher aver
Slide 15: Financial Performance: Significant Items, Expenses and TrustCo Synergies
FINANCIAL PERFORMANCE SIGNIFICANT ITEMS, EXPENSES AND TRUSTCO SYNERGIES For personal use only FY15 FY14 Group expenses, $m For the period $m $m 312.8 Transformation costs - (14.3) 8.1 285.3 TrustCo integration costs (11.3) (10.0) +4% 39.8 12.0* 265.4 264.9 TrustCo due diligence and 262.3 - (4.4) 50.
Slide 16: Investments: Higher Average FUM and Improved PBT
PERPETUAL INVESTMENTS HIGHER AVERAGE FUM AND IMPROVED PBT For personal use only FY15 2H15 1H15 FY14 FY15 v Average FUM, $b For the period $m $m $m $m FY14 32.3 28.7 Revenue 240.0 120.7 119.3 222.5 8% Operating expenses (104.9) (51.7) (53.2) (97.3) (8%) EBITDA1 135.1 69.0 66.1 125.2 8% FY14 FY15 Depr
Slide 17: Private: Benefits of Scale and Growth in Flows
PERPETUAL PRIVATE BENEFITS OF SCALE AND GROWTH IN FLOWS For personal use only FY15 2H15 1H15 FY14 FY15 v Revenue, $m For the period $m $m $m $m FY14 166.3 143.8 Market related revenue 110.8 54.7 56.1 95.6 16% 55.5 48.2 Non-market related revenue 55.5 29.3 26.2 48.2 15% Total revenues 166.3 84.0 82.3
Slide 18: Corporate Trust: Growth in Fund Services
PERPETUAL CORPORATE TRUST GROWTH IN FUND SERVICES For personal use only FY15 2H15 1H15 FY14 FY15 v For the period Revenue, $m $m $m $m $m FY14 Trust services revenue 43.8 23.0 20.8 41.1 7% 43.8 41.1 Fund services revenue 38.2 20.2 18.0 23.8 61% 38.2 Total fiduciary services revenue 82.0 43.2 38.8 64
Slide 19: Balance Sheet: Strength Provides Opportunities
BALANCE SHEET STRENGTH PROVIDES OPPORTUNITIES For personal use only FY15 FY14 Capital requirements, $m For the period ended $m $m -44.6 221.3 Cash & Liquid investments ($m) 341.4 327.9 176.7 Corporate debt ($m) (87.0) (87.0) Net cash ($m) 254.4 240.9 FY14 FY15 Goodwill and other intangibles* ($m) 34
Slide 20: Sustained Dividend Growth Over Three Years
FINANCIAL PERFORMANCE SUSTAINED DIVIDEND GROWTH OVER THREE YEARS For personal use only EPS, cps ROE,1 % Dividend, cps 282.6 265.3 26.1 24.2 23.1 21.7 237.8 20.9 19.0 99.8% 91.3% 185.0 186.4 89.5% 148.7 240.0 175.0 130.0 FY13 FY14 FY15 FY13 FY14 FY15 FY13 FY14 FY15 UPAT EPS NPAT EPS UPAT ROE NPAT ROE
Slide 21: Overview of the Last Four Years
OVERVIEW OF THE LAST FOUR YEARS STRATEGY DELIVERED STRONG EARNINGS AND RETURNS For personal use only UPAT, $m NPAT, $m UPAT EPS, cps DPS, cps +26% +22% 130.5 122.5 282.6 +39% 240.0 +66% 104.1 237.8 175.0 81.6 185.0 75.9 156.8 130.0 65.4 61.0 90.0 26.7 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 FY12 FY1
Slide 22: Contacts
CONTACTS Chief Executive Officer & Managing Director For personal use only Geoff Lloyd geoff.lloyd@perpetual.com.au T: +612 9229 9078 Chief Financial Officer Gillian Larkins gillian.larkins@perpetual.com.au T: +612 9229 3547 General Manager Investor Relations & Corporate Finance Neil Wesley neil.wes
Slide 23: Disclaimer
DISCLAIMER For personal use only Important information The information in this presentation is general background information about the Perpetual Group and its activities current as at 27 August 2015. It is in summary form and is not necessarily complete. It should be read together with the company’