Slide 1: FY18 Results
30 August 2018 PERPETUAL LIMITED FY18 RESULTS Twelve months to 30 June 2018 Chris Green Interim Chief Executive Officer Gillian Larkins Chief Financial Officer ABN 86 000 431 827
Slide 2: Chris Green, Interim Chief Executive Officer
CHRIS GREEN INTERIM CHIEF EXECUTIVE OFFICER
Slide 3: FY18: Diversification Delivering to Stakeholders
FY18: DIVERSIFICATION DELIVERING TO STAKEHOLDERS $140.2 m NPAT 2% on FY17 $2.75 DPS 4% on FY17 Shareholders Clients People NPAT ($m) DPS (CPS) NPS1 Engagement 137.3 140.2 275 39 265 71 73 132.0 255 36 69 33 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 1. NPS FY17 Actual outcome : 38 r
Slide 4: FY18 Overview: A Diversified Business with a Clear Focus
FY18 OVERVIEW: A DIVERSIFIED BUSINESS WITH A CLEAR FOCUS V I S I ON Australia’s largest and most trusted independent wealth manager PERPETUAL $30.8b PERPETUAL $14.1b PERPETUAL $693b INVESTMENTS FUM PRIVATE FUA CORPORATE TRUST FUA Offering investment products Delivering tailored financial and Provi
Slide 5: Initiatives
INITIATIVES ONGOING INVESTMENT FOR FUTURE GROWTH PERPETUAL INVESTMENTS PERPETUAL PRIVATE PERPETUAL PERPETUALCORPORATE CORPORATETRUST TRUST Extending into Transforming the Investing in the core new products client experience and in extensions ▪ Launched Ethical SRI Credit Fund ▪ Successful pilot of f
Slide 6: Current Market Conditions
CURRENT MARKET CONDITIONS COMMITTED TO VALUE INVESTING Subdued volatility 1 Valuations remain elevated 2 70 19x 60 17x All Ords FY1 PE ASX 200 VIX 50 15x 40 13x 30 11x 20 9x 10 7x 0 5x Jun-08 Jun-10 Jun-12 Jun-14 Jun-16 Jun-18 Jun-08 Jun-10 Jun-12 Jun-14 Jun-16 Jun-18 The current market cycle has be
Slide 7: Australian Equities
PERPETUAL INVESTMENTS TRUE TO STYLE DELIVERS LONG-TERM PERFORMANCE Quartile Rankings1 % of funds quartile ranking periods ending June 2018 over 1 year – 10 years 1 yr 3 yrs 5 yrs 7 yrs 10 yrs Perpetual W Australian 4 4 4 3 2 Perpetual W Concentrated Equity 3 3 3 2 1 40% 60% 1 yr Australian Equities
Slide 8: Perpetual Investments
PERPETUAL INVESTMENTS STRONG MARKET OFFSET BY INSTITUTIONAL OUTFLOWS All Ordinaries Index Perpetual Investments 6400 Distribution channel $b 6200 33% 34% 31% 6000 5800 49% 48% 50% 5600 Average FY18 vs FY17: +6% 5400 Average 2H18 vs 1H18 : + 3.4% 19% 18% 18% 5200 FY16 FY17 FY18 Jul-16 Nov-16 Mar-17 J
Slide 9: Perpetual Private
PERPETUAL PRIVATE SEGMENTATION STRATEGY DRIVING CLIENT AND FUA GROWTH BUSINESS OWNERS ESTABLISHED WEALTHY PROFESSIONALS Protecting & growing wealth Leading Referral Source High Accumulation Potential across generations ▪ 190 new Fordham clients ▪ 120 net new clients ▪ 17 courses held nationally in ▪
Slide 10: Perpetual Private
PERPETUAL PRIVATE STRATEGY DELIVERING POSITIVE FLOWS AND REFERRALS Average FUA balance Fordham continues to be the New client growth across for new HNW clients largest referral partner to HNW and Fordham $3.9m Advice business continues Net Flows - FUA, $b New Clients - Fordham Net New Clients – HNW
Slide 11: Perpetual Private
PERPETUAL PRIVATE STRATEGY DELIVERING POSITIVE FLOWS AND REFERRALS 5 years of positive net flows, 12% growth in PP Funds Market-related revenue 4% growth in Funds under Under Management margin maintained Advice vs FY17 vs FY17 Funds Under Advice, $b Funds Under Management, $b Market-Related Revenue
Slide 12: Corporate Trust
PERPETUAL CORPORATE TRUST SECURITISATION ISSUANCE REMAINS STRONG ACROSS ALL ASSET CLASSES Debt Markets 75.2 Securitisation Issuance1, $b 60.8 62.1 17.4 54.8 49.7 18.3 11.9 12.7 27.8 27.9 21% increase in issuance 19.3 volumes with strong growth in 19.8 23.0 19.9 RMBS issuance by banks and 24.5 30.0 n
Slide 13: Corporate Trust – Debt Market Services
PERPETUAL CORPORATE TRUST – DEBT MARKET SERVICES CONTINUED GROWTH IN PRODUCT ADJACENCIES Securitisation FUA - $b Growth in Product Adjacencies1, 427.5 436.1 434.8 % of DMS revenue 379.5 44.9 45.0 42.6 28.9 70.1 FY14 Revenue: $45.2m FY18 Revenue: $57.5m 306.5 72.0 76.0 66.8 29.8 53.6 98.6 109.1 130.2
Slide 14: Corporate Trust – Managed Fund Services
PERPETUAL CORPORATE TRUST – MANAGED FUND SERVICES LEVERAGING STRONG MARKET POSITION Managed Fund Services FUA, $b Growth & diversification of MFS Revenue % of MFS Revenue FY14 Revenue: $21.0 m2 FY18 Revenue: $45.8m 3% 13% 32% 17% 242.9 52% 44% 193.0 203.8 177.1 178.6 13% 26% 1 FY14 FY15 FY16 FY17 FY
Slide 15: FY18: Diversification Delivering to Stakeholders
FY18: DIVERSIFICATION DELIVERING TO STAKEHOLDERS $140.2 m NPAT 2% on FY17 $2.75 DPS 4% on FY17 Shareholders Clients People NPAT ($m) DPS (CPS) NPS1 Engagement 137.3 140.2 275 39 265 71 73 132.0 255 36 69 33 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 1. NPS FY17 Actual outcome : 38 r
Slide 16: Financials
FINANCIALS GILLIAN LARKINS CHIEF FINANCIAL OFFICER
Slide 17: Financial Performance – Group
FINANCIAL PERFORMANCE – GROUP FY18 2H18 1H18 FY17 FY18 v For the period $m $m $m $m FY17 Key themes Operating revenue 533.7 266.9 266.8 515.4 4% ▪ Business diversification Total expenses (337.4) (172.2) (165.3) (326.4) (3%) delivers 4% revenue growth Underlying profit after tax (UPAT) for 139.0 67.4
Slide 18: Perpetual Investments: Maintaining Margins
PERPETUAL INVESTMENTS MAINTAINING MARGINS FY18 2H18 1H18 FY17 FY18 v Revenue, $m For the period $m $m $m $m FY17 9.2 Revenue 232.3 114.6 117.6 228.1 2% 6.7 223.1 Operating expenses (110.5) (55.6) (54.9) (103.0) (7%) 214.7 FY17 FY18 EBITDA1 121.8 59.1 62.7 125.1 (3%) Management fees Performance fees
Slide 19: Perpetual Private: Continued Revenue and Profit Growth
PERPETUAL PRIVATE CONTINUED REVENUE AND PROFIT GROWTH FY18 2H18 1H18 FY18 v Revenue, $m For the period FY17 $m $m $m FY17 Market related revenue 120.5 59.5 61.0 113.6 6% 64.8 65.9 Non-market related revenue 65.9 34.2 31.8 64.8 2% 113.6 120.5 Total revenues 186.4 93.7 92.8 178.4 5% FY17 FY18 Operatin
Slide 20: Perpetual Corporate Trust: Ongoing Revenue and Profit Growth
PERPETUAL CORPORATE TRUST ONGOING REVENUE AND PROFIT GROWTH FY18 2H18 1H18 FY17 FY18 v Revenue, $m For the period $m $m $m $m FY17 Debt Market Services revenue 57.5 29.6 27.9 52.1 11% 45.8 40.6 Managed Fund Services revenue 45.8 24.1 21.7 40.6 13% Total revenues 103.3 53.7 49.6 92.7 11% 52.1 57.5 Op
Slide 21: Key Performance Indicators
KEY PERFORMANCE INDICATORS BALANCE SHEET STRENGTH AND SUSTAINED DIVIDEND PAYOUT Regulatory Capital1 Gearing Ratio2 Net Tangible Assets 311.2 284.3 160.0 155.5 12.6 255.9 FULLY FRANKED 151.2 12.1 11.6 DIVIDENDS $2.75 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 PAYOUT RATIO5 EPS3, cps DPS, cps ROE4 %
Slide 22: FY18: Diversification Delivering to Stakeholders
FY18: DIVERSIFICATION DELIVERING TO STAKEHOLDERS $140.2 m NPAT 2% on FY17 $2.75 DPS 4% on FY17 Shareholders Clients People NPAT ($m) DPS (CPS) NPS1 Engagement 137.3 140.2 275 39 265 71 73 132.0 255 36 69 33 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 FY16 FY17 FY18 1. NPS FY17 Actual outcome : 38 r
Slide 23: Contacts
CONTACTS Chris Green Level 18 Angel Place, 123 Pitt Street Interim Chief Executive Officer SYDNEY NSW 2000 Australia chris.green@perpetual.com.au +612 9229 9861 Gillian Larkins Chief Financial Officer gillian.larkins@perpetual.com.au +612 9229 3547 Andrew Ehlich General Manager, Investor Relations &
Slide 24: Disclaimer
DISCLAIMER Important information The information in this presentation is general background information about the Perpetual Group and its activities current as at 30 August 2018. It is in summary form and is not necessarily complete. It should be read together with the company’s audited consolidated