Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — Shareholder Meeting (November 2007)
42 slides from Eqt's shareholder meeting presentation, Nov 8, 2007
Slide 1: Equity Trustees Limited 152nd General Meeting
1 Equity Trustees Limited 152 General Meeting nd 8 November 2007
Slide 2: Mr Tony Killen, Chairman
2 Mr Tony Killen Chairman Equity Trustees Limited
Slide 3: Board of Directors
3 Board of Directors Mr JA (Tony) Killen Non Executive Director Trusted since 1888 Chairman Mr Barry Jackson Non Executive Director Mr David Groves Non Executive Director Ms Alice Williams Non Executive Director Mr John McConnell Non Executive Director Mr Peter Williams Managing Director
Slide 4: Agenda
4 Agenda 1) 2007 overview and highlights Trusted since 1888 Mr Tony Killen Chairman 2) Operational performance Mr Peter Williams Managing Director 3) Items of ordinary business Mr Tony Killen Chairman
Slide 5: Financial Performance
5 Financial Performance 2007 2006 Variance Trusted since 1888 (1) Group operating revenue $32.4m $24.8m 30.8% (1) Group operating profit (pre tax) $11.1m $6.6m 67.7% Net profit (after tax) $8.1m $5.2m 58.0% Earnings per share (basic) 105.18¢ 69.94¢ 50.4% (2) Dividend per share 75¢ 50¢ 50.0% (3) Oper
Slide 6: Dividends
6 Dividends 80 ¢ cents per share 75 • Dividend payout ratio is Trusted since 1888 70 at the upper end of the +50.0% stated target range – 60 being 60-80% of Operating Profit after 50 45 50 Final Tax (excl gains on the Interim sale of investments) 40 40 30 • Dividends remain fully 30 30 franked @ 30%
Slide 7: Dividend policy
7 Dividend policy 9 $m Trusted since 1888 8 0.5 Previous New policy Policy 7 Investment Operating 6 Operating profit after Included Included tax 5 0.4 Investment 4 7.7 profit after Excluded Included tax 3 0.7 0.5 Payout 4.7 ratio 60-80% 70-90% 2 2.3 2.7 1 0 2004 2005 2006 2007
Slide 8: Total shareholder return
8 Total shareholder return 800,000 $ $100,000 invested in Equity Trustees shares on 1 July 2003 Trusted since 1888 700,000 would be worth over $650,000 in July 2007. 600,000 This represents an annual return of approximately 61.3% 500,000 Note – total shareholder return incorporates movements in the
Slide 9: 1st quarter 2008
9 1st quarter 2008 Unaudited results for the quarter ended Trusted since 1888 30 September 2007 2008 2007 Variance (1) Group operating revenue $9.0m $7.4m 21.1% (1) Excludes profit on the sale of investments
Slide 10: Strategic direction
10 Strategic direction 2004 2005/06 2006/07 Æ Trusted since 1888 Recovery Organic Step Growth Growth Cultural change. Improvement in Improvement in processes profit margins enabling better Development of appropriate through quality business. marketing, merger and efficiency gains. acquisition opport
Slide 11: Branding
11 Trusted since 1888 Branding ¾ Wealthpac master-trust (acquired in 2003) ¾ Templetons master-trust (2005) ¾ Freedom of Choice master-trust (2007) ¾ Templetons Superannuation Management (2007)
Slide 12: Balance sheet
12 Balance sheet 50.0 $m Net assets ($m) 44.4 Trusted since 1888 45.0 +22.2% 40.0 36.4 35.0 30.0 25.0 21.6 20.0 16.5 15.0 10.0 5.0 0.0 2004 2005 2006 2007 • Reserve fund and net tangible asset requirements are more than adequately met through the net asset position and liquid reserves
Slide 13: Eastern seaboard
13 Trusted since 1888 Eastern seaboard The eastern seaboard states account for: • 77.5% of Australia’s population Brisbane • 80.8% of Australia’s population growth 2006 • 77.7% of Australia’s high income earners Sydney 2003 Melbourne 1888 Data sourced from Australian Bureau of Statistics – 2006 Cens
Slide 14: Philanthropy
14 Philanthropy ¾ ~ $450m in charitable funds under management Trusted since 1888 ¾ $24m distributed by charitable trusts and estates in 2007 ¾ 1% of pre-tax operating profit donated by the company to the EQT Foundation
Slide 15: Mr Peter Williams, Managing Director
15 Mr Peter Williams Managing Director Equity Trustees Limited
Slide 16: Company overview
16 Company overview Board of Directors Trusted since 1888 Managing Director Private Funds Fund Superannuation Clients Management Services 29% of 29% of 25% of 17% of operating operating operating operating revenue revenue revenue revenue Support Services An uncomplicated structure designed for effic
Slide 17: Business unit overview
17 Business unit overview Corporate superannuation: Sales & marketing + product management for Trusted since 1888 • Wealthpac EQT co-branded funds • Templetons managed by external • Freedom of Super- specialists Choice annuation 17% Funds Management 29% Fund Services 25% Private Clients Wealth manag
Slide 18: Operating margin
18 Operating margin 50 $m 13 $m 45.0% Operating revenue and Operating profit ($m) and expenses ($m) margin (%) 11.1 40.0% 40 Trusted since 1888 11 32.4 34.3% 35.0% 30 Operating profit 24.8 9 Operating margin 30.0% 19.8 20 16.8 26.8% 7 6.6 25.0% 10 21.2% CAGR = 24.5% 18.5% 20.0% 5 4.2 0 2004 2005 200
Slide 19: Funds Management
19 Funds Management 10.0 $m Operating revenue ($m) +20.5% 9.0 9.0 8.0 7.5 • Strong net FUM inflows Trusted since 1888 6.4 (continued in 1st qtr ’08) 7.0 5.9 6.0 5.0 4.0 • Focus on IDPS presence 3.0 • Good relationships with 2.0 1.0 0.0 2004 2005 2006 2007 external managers $m Funds under management
Slide 20: Private Clients
20 Private Clients 10.0 $m Operating revenue ($m) 9.3 9.0 +54.2% • Impact of fee improvements 8.0 Trusted since 1888 7.0 5.9 6.1 • Focus on building 6.0 5.2 5.0 4.0 portfolio management services – cross-sell, 3.0 2.0 1.0 with good 1st qtr ’08 0.0 2004 2005 2006 2007 sales results $m 1,800 Assets und
Slide 21: Fund Services
21 Fund Services 9.0 $m Operating revenue ($m) 8.0 +37.8% 7.7 • Consistently strong Trusted since 1888 7.0 6.0 5.6 demand for RE 5.0 expertise 4.0 3.1 3.0 2.1 • Domestic and global 2.0 fund managers 1.0 • 35 managers 0.0 2004 2005 2006 2007 130 funds • Building depth in corporate and superannuation
Slide 22: Superannuation
22 Superannuation 6.0 $m Operating revenue ($m) 5.0 +18.5% 5.3 • Sydney base with eastern 4.4 seaboard reach Trusted since 1888 4.0 • Equity Trustees brand 3.4 3.0 2.9 introduced 2.0 • Increased resources for sales & marketing 1.0 0.0 700 $m 2004 2005 2006 2007 • Freedom of Choice Funds under manage
Slide 23: Support services
23 Support services • Continuing to invest in the business Trusted since 1888 • Right people, right systems to match business requirements • Marketing activity lifting profile • IT projects delivering scale & efficiency • Process improvement in all business lines
Slide 24: Acquisitions
24 Acquisitions Strategy Trusted since 1888 • Flexibility in approach • Consistent with existing business lines • Eastern seaboard focus • Clearly measurable returns Capability • Consistent pipeline being reviewed • In-house assessment process • Quick turnaround – deal & integration
Slide 25: Outlook
25 Outlook Continue to push organic growth in all business lines Trusted since 1888 Seeking acquisitions where appropriate Investments in people, systems and process improvements Market movements can affect performance Focus on key KPIs: • Revenue • Margin
Slide 26: Outlook
26 Outlook Market dynamics remain favourable: Trusted since 1888 • Superannuation contributions = growth • “Better Super” = opportunity • Volatility Æ investors seeking safety • Risk management processes are critical • Diversification of revenue streams • 1st qtr ’08 delivered 21% revenue growth
Slide 27: Summary
27 Summary Strong year all-around & good start to 2008 Trusted since 1888 Performance from all business units Margin growth reflects efficiency Step growth under way – eg: FoC Eastern seaboard expansion – Qld office Investment in people and system resources
Slide 28: Mr Tony Killen, Chairman
28 Mr Tony Killen Chairman Equity Trustees Limited
Slide 29: Ordinary Business: Financial Statements and Reports
29 Ordinary Business Item 1 Trusted since 1888 To receive and consider the Financial Statements and the Reports of the Directors and the Auditor for the year ended 30 June 2007.
Slide 30: Ordinary Business: Remuneration Report
30 Ordinary Business Item 2 Trusted since 1888 To adopt the Remuneration Report for year ended 30 June 2007.
Slide 31: Remuneration Report: proxies received
31 Ordinary Business Item 2 – proxies received Trusted since 1888 To adopt the Remuneration Report for year ended 30 June 2007. For Against 1,671,047 22,036 Open = 289,892
Slide 32: Ordinary Business: Election of Directors
32 Ordinary Business Item 3 Trusted since 1888 To consider the election of Directors.
Slide 33: Item (a): Re-election of Mr Killen
33 Ordinary Business Item 3 (a) Trusted since 1888 Mr JA (Tony) Killen retires in accordance with Rule 73(1) of the company’s Constitution and, being an eligible person, offers himself for re-election. Mr David Groves to chair this item of business.
Slide 34: Item (a): proxies received
34 Ordinary Business Item 3 (a) – proxies received Trusted since 1888 Mr JA (Tony) Killen retires in accordance with Rule 73(1) of the company’s Constitution and, being an eligible person, offers himself for re-election. For Against 1,721,999 33 Open = 264,797
Slide 35: Item (b): Re-election of Mr Jackson
35 Ordinary Business Item 3 (b) Trusted since 1888 Mr Barry J Jackson retires in accordance with Rule 73(1) of the company’s Constitution and, being an eligible person, offers himself for re-election. Mr Tony Killen to re-assume the chair
Slide 36: Item (b): proxies received
36 Ordinary Business Item 3 (b) – proxies received Trusted since 1888 Mr Barry J Jackson retires in accordance with Rule 73(1) of the company’s Constitution and, being an eligible person, offers himself for re-election. For Against 1,736,687 545 Open = 249,597
Slide 37: Item (c): Election of Ms Williams
37 Ordinary Business Item 3 (c) Trusted since 1888 Ms Alice JM Williams having been appointed in accordance with Rule 60 of the company’s Constitution since the last Annual General Meeting, retires in accordance with that Rule and, being eligible, offers herself for election.
Slide 38: Item (c): proxies received
38 Ordinary Business Item 3 (c) – proxies received Trusted since 1888 Ms Alice JM Williams having been appointed in accordance with Rule 60 of the company’s Constitution since the last Annual General Meeting, retires in accordance with that Rule and, being eligible, offers herself for election. For
Slide 39: Special Business: Long-term incentive award
39 Special Business Item 4 Trusted since 1888 To approve the long-term incentive award for the Managing Director, Mr Peter J Williams.
Slide 40: Long-term incentive award: proxies received
40 Special Business Item 4 – proxies received Trusted since 1888 Long- Term Incentive Award for the Managing Director, Mr Peter J Williams. For Against 1,601,175 73,328 Open = 233,953
Slide 41: Questions
41 Questions
Slide 42: ‘[rustees
EO ‘[rustees Trusted since 1888
Equity Trustees — Shareholder Meeting (November 2007) on 6ix