Perpetual Limited · ASX:PPT
Perpetual — FY2017 Earnings Presentation
28 slides from Perpetual's earnings presentation, Aug 24, 2017
Slide 1: Perpetual Limited FY17 Results
24 August 2017 PERPETUAL LIMITED For personal use only FY17 RESULTS Twelve months to 30 June 2017 Geoff Lloyd Chief Executive Officer & Managing Director Gillian Larkins Chief Financial Officer ABN 86 000 431 827
Slide 2: Geoff Lloyd, Chief Executive Officer & Managing Director
For personal use only GEOFF LLOYD CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR
Slide 3: Strategy Delivering to Stakeholders
FY17 STRATEGY DELIVERING TO STAKEHOLDERS For personal use only NPAT DPS 4% on FY16 4% on FY16 Shareholders Clients People NPAT, $m DPS, cps NPS1 Engagement +6% +5% +2% +21% 132.0 137.3 255 265 38 71 69 122.5 240 66 33 26 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 Note: Percentage in
Slide 4: Diversified Business with Clear Focus
FY17 OVERVIEW DIVERSIFIED BUSINESS WITH CLEAR FOCUS For personal use only Australia’s largest and most trusted VISION independent wealth manager Perpetual $31.4b Perpetual $13.5b Perpetual $658b Investments FUM Private FUA Corporate Trust FUA Maintaining leadership in Targeted HNW Leading corporate
Slide 5: Drivers Are Markets, Flows and New Clients
FY17 RESULTS DRIVERS ARE MARKETS, FLOWS AND NEW CLIENTS For personal use only All Ordinaries Index Perpetual Private 6,100 New Clients 306 5,900 5,700 5,500 Average 178 149 FY17/FY16: 5,300 107 +8% 78 82 5,100 4,900 4,700 FY15 FY16 FY17 4,500 Jun-14 Oct-14 Feb-15 Jun-15 Oct-15 Feb-16 Jun-16 Oct-16 F
Slide 6: Ongoing Investment for Sustainable Growth
LEAD & GROW ONGOING INVESTMENT FOR SUSTAINABLE GROWTH For personal use only Perpetual Investments Perpetual Private Perpetual Corporate Trust Investing in our teams Fordham Expansion Data Services 2 new senior analysts in AEQ 7 new partners from eastern seaboard Over $10m invested over 2 years
Slide 7: Highlights – Solid Results in Challenging Environment
PERPETUAL INVESTMENTS HIGHLIGHTS – SOLID RESULTS IN CHALLENGING ENVIRONMENT For personal use only Proven, disciplined approach Majority of funds 1st or 2nd 100% of funds above median to value investing quartile for the year over 7 years Maintained market share and position in Australian equities ove
Slide 8: Expanding International Equities Capability Across PI
INTERNATIONAL EQUITIES EXPANDING CAPABILITY ACROSS PI For personal use only 1,281 Global Multi-asset 576 Share Funds $576m $233m funds & 835 & mandates mandates 760 International 233 516 equities capability 560 63 $1.3b 156 148 60 410 Australian Perpetual 38 111 6 equities funds $410m $63m Equity In
Slide 9: Strong Long-Term Investment Performance
PERPETUAL INVESTMENTS STRONG LONG-TERM INVESTMENT PERFORMANCE For personal use only QUARTILE RANKINGS1 % of funds quartile ranking periods ending June 2017 over 1 – 10 years1 1Yr 3Yrs 5Yrs 7Yrs 10Yrs Perpetual W Australian 3 4 3 2 2 1 yr 60% 40% Perpetual W Concentrated Equity 2 3 2 1 1 Australian E
Slide 10: Committed to Value Investing
PERPETUAL INVESTMENTS COMMITTED TO VALUE INVESTING For personal use only Rolling performance of Value vs Growth1 Valuations remain elevated3 20x S&P/ASX All Ords FY1 PE 20% Rolling % outperformance 18x 10% 16x 14x 0% 12x -10% 10x -20% 8x Jul 08 Jul 10 Jul 12 Jul 14 Jul 16 Jul 08 Jul 10 Jul 12 Jul 14
Slide 11: Strategy on Track – 18% PBT Growth
PERPETUAL PRIVATE STRATEGY ON TRACK – 18% PBT GROWTH For personal use only Heritage Strategic Right Scale Distribution Tech uplift business segment focus service model benefits excellence Organic growth continues: Lead & Grow investments underway: Eight consecutive halves of positive net flows The P
Slide 12: Tailored HNW Product Delivering Strong Performance and Flows
PERPETUAL PRIVATE TAILORED HNW PRODUCT DELIVERING STRONG PERFORMANCE AND FLOWS For personal use only 3 months 1 Year 3 Years 5 Years Excess Returns to June 2017 (%) (%) (%pa) (%pa) Established investment team Growth Opportunities Fund1 +0.3 +4.0 +1.8 +3.2 and well-developed capability Balanced Risk
Slide 13: Expertise in Chosen Fields – Business Owners
PERPETUAL PRIVATE EXPERTISE IN CHOSEN FIELDS For personal use only Business owners Established wealthy Professionals 30% of HNW market Fordham New Clients 306 82 107 Fordham is Perpetual’s specialist accounting, FY15 FY16 FY17 business and financial advice offer for private Fordham Revenue, $m busin
Slide 14: Expertise in Chosen Fields – Professionals
PERPETUAL PRIVATE EXPERTISE IN CHOSEN FIELDS For personal use only Business owners Established wealthy Professionals 20% of HNW market Focus to date in the professional segment has been on medical specialists The Private Practice (TPP) was acquired December 2015 as part of Fintuition TPP initiatives
Slide 15: 8% Profit Before Tax Growth from Diversified Business
PERPETUAL CORPORATE TRUST 8% PROFIT BEFORE TAX GROWTH FROM DIVERSIFIED BUSINESS For personal use only MANAGED FUND SERVICES DEBT MARKET SERVICES Revenue of $40.6m +12% on FY16 Revenue of $52.1m +2% on FY16 Commercial Industrial Hotels Forestry Infrastructure Residential Automobiles Credit Cards Comm
Slide 16: Corporate Trust – Managed Fund Services
PERPETUAL CORPORATE TRUST – MANAGED FUND SERVICES STRONG REVENUE GROWTH IN FY17 For personal use only Managed Fund Services, % of PCT revenue Managed Fund Services FUA, $b FY12: $52m FY17: $93m +11% 221.8 19% 178.6 193.0 44% 56% 81% Debt Markets Managed Funds FY15 FY16 FY17 Managed Fund Services g
Slide 17: Corporate Trust – Debt Markets Services
PERPETUAL CORPORATE TRUST - DEBT MARKETS SERVICES CONSISTENT GROWTH IN FY17 For personal use only Securitisation FUA - $b 436 Strong 2H17 issuance 427 380 of higher margin ABS & 307 RMBS business 259 217 Lower savings rate reducing back book run off FY12 FY13 FY14 FY15 FY16 FY17 ABS growth continues
Slide 18: ABSPerpetual Business Intelligence
ABSPERPETUAL BUSINESS INTELLIGENCE NEW DIGITAL MORTGAGE ANALYTICS PLATFORM For personal use only Get instant access to a unique mortgage data warehouse covering 15 years of history, 54 lenders and over 180 million loan records ABSPerpetual Business Intelligence helps manage your total mortgage portf
Slide 19: Financials – Gillian Larkins, CFO
For personal use only FINANCIALS GILLIAN LARKINS CHIEF FINANCIAL OFFICER
Slide 20: Financial Performance – Group
FINANCIAL PERFORMANCE – GROUP INCREASE IN NPAT AND DIVIDENDS For personal use only FY17 2H17 1H17 FY16 FY17 v For the period KEY THEMES $m $m $m $m FY16 Operating revenue 515.4 263.0 252.4 494.2 4% Operating revenue increase Total expenses (326.4) (165.7) (160.7) (316.3) (3%) supported by higher equ
Slide 21: Investments – Consistent Earnings
PERPETUAL INVESTMENTS CONSISTENT EARNINGS For personal use only FY17 2H17 1H17 FY16 FY17 v Average FUM, $b For the period $m $m $m $m FY16 30.0 31.5 Revenue 228.1 114.2 113.8 227.9 - Operating expenses (103.0) (52.1) (50.9) (103.0) - EBITDA1 125.1 62.1 63.0 124.9 - FY16 FY17 Depreciation & amortisat
Slide 22: Private – Strong Profit Growth
PERPETUAL PRIVATE STRONG PROFIT GROWTH For personal use only FY17 2H17 1H17 FY16 FY17 v Revenue, $m For the period $m $m $m $m FY16 167.6 178.4 Market related revenue 113.6 57.9 55.7 107.8 5% 59.8 64.8 Non-market related revenue 64.8 34.0 30.9 59.8 8% 107.8 113.6 Total revenues 178.4 91.8 86.6 167.6
Slide 23: Corporate Trust – Strong Profit Growth
PERPETUAL CORPORATE TRUST STRONG PROFIT GROWTH For personal use only FY17 2H17 1H17 FY16 FY17 v Revenue, $m For the period $m $m $m $m FY16 50.9 52.1 Debt Market Services revenue 52.1 26.6 25.5 50.9 2% 40.6 36.4 Managed Fund Services revenue 40.6 21.6 19.1 36.4 12% Total revenues 92.7 48.2 44.5 87.3
Slide 24: Balance Sheet – Strength and Capacity
BALANCE SHEET STRENGTH AND CAPACITY For personal use only Capital requirements3, $m FY17 FY16 As at 30 June $m $m -5.5% 160.0 151.2 Net cash ($m)1 236.5 191.2 Goodwill and other intangibles2 ($m) 350.4 349.6 FY16 FY17 Net tangible assets ($m) 284.0 255.9 Gearing, % 12.6 12.1 Net tangible assets per
Slide 25: Sustained Dividend Growth Over Three Years
FINANCIAL PERFORMANCE SUSTAINED DIVIDEND GROWTH OVER THREE YEARS For personal use only EPS, cps ROE1, % Dividend, cps +5% +1% 293.9 22.2 22.1 +5% 284.3 21.7 265.3 265 255 240 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 NPAT EPS NPAT ROE Fully franked dividends Fully franked Payout ratio2 Dividend p
Slide 26: Strategy Delivering to Stakeholders
FY17 STRATEGY DELIVERING TO STAKEHOLDERS For personal use only NPAT DPS 4% on FY16 4% on FY16 Shareholders Clients People NPAT, $m DPS, cps NPS1 Engagement +6% +5% +2% +21% 132.0 137.3 255 265 38 71 69 122.5 240 66 33 26 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 FY15 FY16 FY17 Note: Percentage in
Slide 27: Contacts
CONTACTS For personal use only Geoff Lloyd Level 18 Angel Place, 123 Pitt Street Chief Executive Officer & Managing Director SYDNEY NSW 2000 Australia geoff.lloyd@perpetual.com.au +612 9229 9078 Gillian Larkins Chief Financial Officer gillian.larkins@perpetual.com.au +612 9229 3547 Andrew Ehlich Act
Slide 28: 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 24 August 2017. It is in summary form and is not necessarily complete. It should be read together with the company’