Perpetual Limited · ASX:PPT
Perpetual — UBS Financial Services Conference 2006
23 slides from Perpetual's conference presentation, Jun 21, 2006
Slide 1: Perpetual Limited
Perpetual Limited (Perpetual) UBS Financial Services Conference 21 June 2006 Sydney John Nesbitt Chief Financial Officer Emilio Gonzalez Chief Investment Officer rerpewesp
Slide 2: Agenda
Agenda Financial overview and outlook — John Nesbitt m Australian Equities Initiative Update — Emilio Gonzalez Perpetual
Slide 3: Perpetual is an ASX 100 company and the largest independent wealth manager in Australia
Perpetual is an ASX 100 company and the largest independent wealth manager in Australia um 120 years of history built on trust mw Top performing manager in Australian equities # $33 billion FUM as at May 2006 # $166 billion FUA as at April 2006 » Trading revenues of around $400 million for 2006 « Ma
Slide 4: Perpetual actively participates in two industries
Perpetual actively participates in two industries Funds Management | iManage’ CIE L Le 1e0 LEAs ye [PONS EWEN SHS BERANE ER SUR SHH RUSH AE EH RES AE RESUS PER EER AN EHEES EHH RERANEEREORS, Le
Slide 5: The Australian financial services industry is large and diverse
The Australian financial services industry Is large and diverse Estimated 2005 revenue (A$B) 100% 80 origag 60 Commercial 6 Lending 11.5) 40 Credit Cards 1.4 20 0 a Total Deposits Personal Lending Commercial Wealth isk GI Lending $20.38 $15.7B $11.58 $15.5B 4.8B $8.5B Total = 76.3B Perpenvaip
Slide 6: The Australian Wealth Management industry is attractive with high asset growth
The Australian Wealth Management industry is attractive with a high rate of underlying asset growth Total FUM CAGR: 2001 ~ 2005 11% $1,746 Global assets CAGR: + international 5 equities 2001 — 2005 13% + international fixed income Domestic assets CAGR: + Australian equities + Australian fixed 2004 ~
Slide 7: The Australian securitisation market has good underlying fundamentals
The Australian securitisation market has good underlying fundamentals Outstanding Securitisation ($B) $200B7 1504 1007 507 Other 96 97 98 99 00 01 02 03 04 05 Supply is increasing m Non-bank financial institutions, the largest users of securitised funding (~60% of bonds issued), are gaining market s
Slide 8: Our corporate strategy
Our corporate strategy iL Develop new growth engines il. Fully engage our people to deliver our strategy Perpenvaip
Slide 9: Implementation progress: Develop a more balanced portfolio & new growth engines
Implementation progress: Develop a more balanced portfolio & new growth engines m Expanded and enhanced our asset management footprint - Global equities - Direct Property - Australian credit - Property securities - Quantitative investments a Significantly enhanced Wholesale Sales, Product, Marketing
Slide 10: Implementation progress: Fully engage our people to deliver our strategy
Implementation progress: Fully engage our people to deliver our strategy w Completed impiementation of new remuneration system Long term incentives in place to retain key members of our asset management team w Move to single premises for Sydney in January 2006 - Angel Place Wo eeeeceeee key focus go
Slide 11: Expanding our asset management footprint
Expanding our asset management footprint Domestic Stock Picking Mortgage Lending LPT Stock Picking Infrastructure Investing Quantitative Investing Credit Investing Global Stock Picking Global Thematic Hedge Bijoad Direct Property Investing Duration Vanilla Management Bonds . Remaining 50% share P Di
Slide 12: Perpetual has experienced strong increases in asset volume in all 3 key drivers
Perpetual has experienced strong increases in asset volume in all 3 key drivers of revenue and growth FUM FUAA FUA Perpetual Investments Perpetual Private Perpetual Corporate Up 24% to May Clients Up 11% to April Trust Up 15% to April $40B5 $10B5 $180B5 166.4 Upaiw A eat 150+ 144.3 304 / i 26.7 120+
Slide 13: Going forward
Going forward w Markets with strong fundamentals « Outstanding track record of delivering value for shareholders w Continued investment in growth capabilities w Forecast 13 per cent increase in profit for 2006 over 2005 financial year — subject to market conditions Perpenvaip
Slide 14: Agenda
Agenda it Financial overview and outlook — John Nesbitt Australian Equities initiative update — Emilio Gonzalez Perpetual
Slide 15: Broadening the investment universe for Australian Equities?
Broadening the investment universe for Australian Equities? a Why has Perpetual taken initiative to broaden the universe w Process and key points of consideration m Reaction from Asset Consultants and Clients Perpenvaip
Slide 16: What have we observed
What have we observed un Domestic stocks are globalising we Definition of a domestic stock is blurred w International stock research becoming more prevalent i» Domestic stocks are trading at a premium to international stocks Perpenvaip
Slide 17: Domestic companies are globalising
Domestic companies are globalising % of revenue derived Number of % of Perpetual from offshore companies in investment universe Perpetual’s universe Greater than 0% 135 56% Greater than 25% Greater than 75% 15 6% Perpenvaip
Slide 18: Domestic stocks are trading at a premium to international
Domestic stocks are trading ata premium to international Relative value 4.05 4.06 0.95 0.90 6.85 Average 0.80 O75 O70 Source UBS Australia Limited 0.65 1993 1994 1995 1996 1997 1988 1999 2000 2001 2002 2003 2004 2006 2006 Perpetvalp
Slide 19: Broadening the investment universe
Broadening the investment universe m Purchase offshore-listed stocks we Limit of 20% of the portfolio ~ Recognise 20% is a limit, not a target ~ Sufficient to make a difference ~ Level by which risk is still within the parameters of the Australian Share Fund Perpenvaip
Slide 20: Frequently Asked Questions
Frequently Asked Questions un As a domestic manager how will you cover overseas listed stocks? n How will it impact my asset allocation? ie How are you managing the currency? Perpenvaip
Slide 21: What has been the reaction and feedback?
What has been the reaction and feedback? m Positive m Good idea/move forward w Approach clients m No funds lost Perpenvaip
Slide 22: Questions?
Questions? rerpewesp
Slide 23: Perpetual Limited
Perpetual Limited (Perpetual) UBS Financial Services Conference 21 June 2006 Sydney John Nesbitt Chief Financial Officer Emilio Gonzalez Chief Investment Officer rerpewesp