Perpetual Limited · ASX:PPT
Perpetual — Merger or Acquisition (August 2022)
27 slides from Perpetual's merger presentation, Aug 25, 2022
Slide 1: Acquisition of Pendal Group
Acquisition of Pendal Group Rob Adams, CEO & Managing Director Chris Green, Chief Financial Officer 25 August 2022
Slide 2: Disclaimer
Disclaimer This presentation is in summary form and is not necessarily While Perpetual has prepared this information based on its current complete. It should be read together with Perpetual Limited’s knowledge and understanding and in good faith, there are risks (Perpetual) and Pendal Group Limited’
Slide 3: A compelling combination
A compelling combination Rob Adams CEO and Managing Director half year ending 31 December 2021
Slide 4: A defining acquisition
A defining acquisition Significant acceleration of global build-out and growth potential Creates a leading global multi-boutique asset Strong presence across all major markets, management business with improved scale and reach with significant capacity for growth Global combined AUM by client geogra
Slide 5: An ideal business model based on boutique investment autonomy leveraging institutional grade infrastructure
An ideal business model based on boutique investment autonomy leveraging institutional grade infrastructure Bringing together the best elements of both a pure boutique model and a traditional institutional model The Boutique Model The Institutional Model Promotes investment autonomy of investment te
Slide 6: Advantages of our global multi-boutique model
Advantages of our global multi-boutique model Combining the advantages of a true boutique approach with the benefits of scale A differentiated Attracts and retains the Attracts and retains the Expected to drive superior model best investment teams best distribution talent growth over time • A firm c
Slide 7: Offer overview
Offer overview Strategically and financially compelling opportunity for shareholders of both firms + Attractive offer unanimously A scrip and cash offer that allows Financially attractive with Funding via a new debt recommended by Pendal’s shareholders in both companies double digit EPS accretion fa
Slide 8: Pendal - a highly respected global, multi-boutique asset manager
Pendal - a highly respected global, multi-boutique asset manager World-class investment teams with significant capacity for growth Key facts Brands AUM by Asset Class1 Assets under Management1 A$111b 7% 15% Fee Revenue2 A$668m 9% Global & EM Equities An Australian brand with Australian equities, glo
Slide 9: Combined business improves asset class and distribution channel diversity
Combined business improves asset class and distribution channel diversity Pro-Forma Business3 AUM by Asset Class 1% Global & EM Equities 5% 13% 7% 15% 18% 14% Australian Equities Australian Equities 9% Australian Equities 17% Global Equities EUKA Equities Global Equities 8% 19% 15% US Equities US Eq
Slide 10: Diversified set of investment capabilities
Diversified set of investment capabilities Bringing together strong, differentiated investment capabilities Global Value Equities Global Growth Equities Multi-Asset Real Return Global and Emerging Markets Opportunities Sustainable Multi-Asset US ESG Equities Global Impact Solutions Global ESG Equiti
Slide 11: Leading global voice in ESG, with impact investing platform ingrained across the group
Leading global voice in ESG, with impact investing platform ingrained across the group Dedicated ESG Integrated ESG1 Pioneer ESG asset management firm A leader in thematic and impact implementing a holistic, fully ESG- investment solutions and integrated investment process using shareholder advocacy
Slide 12: Significantly enhanced global distribution platform
Significantly enhanced global distribution platform Bringing forward years of growth for each firm Materially expanded global Combined global distribution team immediately provides deeper coverage across all distribution footprint from day one key markets Expanded capability set and deeper capacity
Slide 13: Acquisition provides a step-change in AUM and a significant uplift in capacity for future growth
Acquisition provides a step-change in AUM and a significant uplift in capacity for future growth Perpetual AUM and Capacity (A$) 1,2 >A$1tr AUM AUM (incl. Pendal) Total Capacity ~A$410b $201b ~A$120b ~A$70b $98b $90b $27b $28b FY19 FY20 FY21 FY22+ Leading domestic asset Acquisition of Trillium d
Slide 14: Pro-forma Financials and Synergies
Pro-forma Financials and Synergies Chris Green CFO
Slide 15: Expands asset management revenue and UPBT
Expands asset management revenue and UPBT Whilst retaining diversification benefits and non market linked revenues through PP and PCT Pro-Forma Business 11% Investments (PAMA) 22% Australia Investments 21% 24% 23% Investments (PAMI) International Investments 15% Revenue1 Investments (Australia) Priv
Slide 16: Offer cash component will be fully funded by a new debt facility
Offer cash component will be fully funded by a new debt facility Target gross debt ratio of 1.2x within 3 years of implementation Implementation • Cash component of the offer1, totaling A$757 million, will be funded by a new debt ~1.7x facility Gross debt / pro forma EBITDA (post synergies) • New de
Slide 17: Combined synergies expected to deliver substantial value; integration will be led by experienced execution team
Combined synergies expected to deliver substantial value; integration will be led by experienced execution team Targeted annual pre-tax synergies of ~A$60 million Integration principles and implementation Run-rate pre-tax expense synergies of A$60 million expected to be Experienced team, through
Slide 18: Closing Remarks
Closing Remarks Rob Adams CEO and Managing Director half year ending 31 December 2021
Slide 19: A defining acquisition that creates a leading global multi-boutique asset manager
A defining acquisition that creates a leading global multi- boutique asset manager Bringing together two storied brands with high quality investment capabilities Contemporary business Significant Creates a global Strategically and model combining the deepening of global leader in ESG financially com
Slide 20: Q&A
Q&A Rob Adams Chris Green CEO and Managing Director Chief Financial Officer Update image
Slide 21: Contacts
Contacts Emma Rumble Susie Reinhardt General Manager, Corporate Affairs Head of Investor Relations & Investor Relations emma.rumble@perpetual.com.au susie.reinhardt@perpetual.com.au +612 9229 3998 +612 9125 7047 Connect with us at: Head Office About Perpetual perpetual.com.au Level 18, Angel Place,
Slide 22: Thank you
Thank you Trust is earned.
Slide 23: Appendices
Appendices
Slide 24: Perpetual – recent investment performance
Perpetual – recent investment performance At at 30 June 2022 Proportion of strategies outperforming benchmark1,2 Perpetual Asset Management Australia3 100% 100% 92% 85% 85% 80% 80% 86% 77% 64% 69% 46% 50% 50% 38% 14% 0% 17% 1 year 3 year 5 year 1 year 3 year 5 year 1 year 3 year 5 year 1 year 3 year
Slide 25: Pendal – recent investment performance
Pendal – recent investment performance1 At at 30 June 2022 AUM % AUM outperforming (A$b) Jun 22 1 Yr 3 Yr 5 Yr Inception Global / International 47.7 50% 50% 87% 88% Australia 16.2 66% 98% 96% 98% Cash 10.7 79% 100% 100% 92% UK 7.4 33% 62% 46% 100% US 7.3 100% 100% 78% 100% Multi asset 6.8 72% 71% 74
Slide 26: Pendal financial performance overview
Pendal financial performance overview Closing AUM (A$bn) Management Fee Margin (bps)1 139 48 48 48 111 92 FY20 FY21 Jun-22 FY20 FY21 LTM Mar-22 1. LTM Mar-22 based on 1H22 management fee margin. Revenue (A$m) UPAT (A$m) 668 214 582 165 475 133 FY20 FY21 LTM Mar-22 FY20 FY21 LTM Mar-22 Note: based on
Slide 27: Scheme Implementation Deed – key terms
Scheme Implementation Deed – key terms Key terms Description Offer • Perpetual to acquire 100% of the shares in Pendal by way of a recommended Scheme of Arrangement (Scheme). Consideration • 1 Perpetual share for every 7.5 Pendal shares and A$1.976 cash per Pendal share • Any Pendal FY22 dividend pa