Perpetual Limited · ASX:PPT
Perpetual — H1 2008 Earnings Presentation
16 slides from Perpetual's earnings presentation, Feb 20, 2008
Slide 1: 2008 Half Year Results Media Presentation
For personal use only 2008 Half Year Results Media Presentation 20 February 2008
Slide 2: Key highlights for the half year to December 2007
Key highlights for the half year to 31 December 2007 For personal use only 15 per cent increase in operating profit after tax to $79.3 million 11 per cent decrease in net profit after tax to $87.6 million 19 per cent increase in operating profit before tax to $114.2 million – Perpetual Investm
Slide 3: Financial highlights
Financial highlights For personal use only Dec 2007 Dec 2006 Change Six months ended $m $m % Operating profit before tax(1),(2) 114.2 96.2 19 Operating profit after tax(1),(2) 79.3 68.8 15 Net profit after tax 87.6 98.8 (11) Interim dividend per share 189¢ 173¢ 9 (1) Excludes gain on sale of investm
Slide 4: Track record of continued growth
Track record of continued growth Operating profit after tax up 15% EPS(1) up 14% For personal use only $M Ce nts pe r S ha re 79.3 80 200 191 68.8 168 60 5 8.2 150 143 48.5 129 43.2 114 40 100 20 50 0 0 De c Dec D ec D ec De c Dec D ec D ec Dec Dec 03 04* 0 5* 06 07 03 04* 05* 06 07 (1) Diluted EPS
Slide 5: Operating profit before tax up 19%
For personal use only Operating profit before tax up 19% Dec 2007(1) Dec 2006(2) Change Six months ended $m $m % Perpetual Investments 92.5 70.4 31 Perpetual Private Clients 22.2 17.9 24 Perpetual Corporate Trust 13.6 17.2 (21) Group and Support Services (14.1) (9.3) ~ Total operating profit before
Slide 6: Business unit profit before tax margins remain strong
Business unit profit before tax (PBT) margins remain strong For personal use only Perpetual Investments’ Perpetual Private Clients’ Perpetual Corporate Trust’s PBT margins grow PBT margins grow PBT margins reduce % % % 60 60 60 55 52 53 52 50 50 50 48 50 45 46 40 40 40 33 30 30 30 20 20 20 10 10 10
Slide 7: Volume growth slowing
Volume growth slowing For personal use only Perpetual Investments Perpetual Private Clients Perpetual Corporate Trust FUM FUA(1) FUA $B $B $B 40 39.1 36.8 37.2 9 8.6 240 8.4 35 32.8 8 2 10 .1 2 05 .7 210 30.3 7.2 1 85 .0 30 7 6.6 17 8 .6 180 6.1 6 15 2 .8 25 150 5 20 120 4 15 90 3 10 60 2 5 30 1 0 0
Slide 8: Perpetual Investments FUM totalled $37.2 billion at December 2007
Perpetual Investments FUM totalled $37.2 billion at 31 December 2007 For personal use only 30 Jun Net Other(1) 31 Dec Funds under management 2007 inflows 2007 $b $b $b $b Retail 9.5 (0.4) (0.1) 9.0 Intermediary (masterfund and wrap) 18.0 0.6 (0.2) 18.4 Institutional 11.6 (2.0) 0.2 9.8 All channels 3
Slide 9: Australian equities revenue margins increasing
For personal use only Australian equities revenue margins increasing Price increases in January 2007 Encouraging flows into intermediary channel Institutional outflows due to: FUM – Continued industry rebalancing away from Australian equites – Institutional book continues to be closed to new a
Slide 10: Perpetual Private Clients FUA - continued net inflows
Perpetual Private Clients FUA - continued net inflows 31 For personal use only 30 June Net December 2007 inflows Other(1) 2007 $b $b $b $b Financial Advisory - Superannuation 3.0 0.1 (0.1) 3.0 - Non-superannuation 2.2 0.1 (0.1) 2.2 5.2 0.2 (0.2) 5.2 Fiduciary Services - Philanthropic 1.2 0.1 - 1.3 -
Slide 11: Corporate Trust business is changing as lower margin mortgage services grows
Corporate Trust business is changing as lower margin mortgage services business grows For personal use only Dec 2007 Dec 2006 Change Six months ended $m $m % Debt Markets (incl. Fund Services) 17.2 17.0 1 Mortgage Services (incl. integration costs) (2.2) 0.2 ~ Restructure costs (1.4) - ~ Operating p
Slide 12: Perpetual Corporate Trust FUA balance continues to exceed $200b
Perpetual Corporate Trust FUA balance continues to exceed $200b For personal use only Corporate Trust Funds Under Administration $B 250 210.1 205.7 200 185.0 CMBS 178.6 1 and ABS 152.8 150 144.3 124.1 RMBS - non bank 100 50 RMBS - bank 0 Dec 04 Jun 05 Dec 05 Jun 06 Dec 06 Jun 07 Dec 07 (1) Commercia
Slide 13: Continuing to build scale through acquisition in Mortgage Services
Continuing to build scale through acquisition in Mortgage Services For personal use only Volume of transactions in Perpetual Acquired Wignalls in February 2007 and Lenders Mortgage Services National Lending Services in July 2007 No. of transactions – Part of strategy to provide mortgage 125,000 se
Slide 14: EMCF losses mainly due to widening credit spreads
For personal use only EMCF losses mainly due to widening credit spreads AAA MBS senior debt AA MBS sub-debt Mark to market losses to 31 December 2007 total $18.3 million (before tax) and are unrealised (as disclosed to the market on 28 November 2007) Strong portfolio characteristics - high quali
Slide 15: Outlook
For personal use only Outlook Lower absolute market levels will impact second half profits Perpetual is well positioned to take advantage of market opportunities that are consistent with our strategy - we have a strong balance sheet with low gearing - our quality focused investment style typical
Slide 16: 2008 Half Year Results Media Presentation
For personal use only 2008 Half Year Results Media Presentation 20 February 2008