Slide 1: Equity Trustees Audited Full Year Results and Final Dividend
30 August 2012 For personal use only Equity Trustees Audited Full Year Results and Final Dividend Profit Increase Despite Challenging Conditions Equity Trustees Limited (ASX: EQT) today confirmed its full year financial results and final dividend, which are unchanged from the unaudited results annou
Slide 2: Business restructure, dividend and contacts
For personal use only Mr Burns added: “On 1 August 2012 we implemented a further structural change. The Group will now operate two revenue business units. The Superannuation and Private Clients business units, including the aged care advisory business we acquired in August 2011, will now be combined
Slide 3: Equity Trustees Limited (EQT) Full Year Results to 30 June 2012
For personal use only Equity Trustees Limited (EQT) Full Year Results to 30 June 2012
Slide 4: Overview – FY2012
Overview – FY2012 For personal use only • Net profit after tax increased by 2%. • All major business activities remain solidly profitable, and generated organic revenue growth. • Interim dividend reinvestment plan shortfall underwritten to build up net tangible assets. • Total dividend reduced to 85
Slide 5: Overview – group results
Overview – group results For personal use only 2012 2011 Change $m $m Operating revenue 43.0 39.2 10 % Operating expenses (31.9) (28.4) (13 %) Operating profit before tax 11.1 10.8 2% Income tax expense (3.1) (3.0) Operating profit after tax 8.0 7.8 2% Non-operating items (net of tax) 0.4 0.4 Net pr
Slide 6: Revenue
Revenue For personal use only Revenue increased 10% Investment Income ($m) (excludes profit on sale of investments) Business Unit Revenue ($m) $ 43.0m $ 39.2m 0.3 $ 39.2m 1.2 0.6 $ 33.8m $ 34.5m 10% $ 32.4m increase 1.1 0.9 1.1 $ 24.8m 1.2 42.7 38.0 38.6 31.3 32.7 33.6 23.6 2006 2007 2008 2009 2010
Slide 7: Expenses
Expenses For personal use only Operating costs ($m) (Refer to subsequent page for detail) $31.9m $28.4m $24.6m $23.8m $22.9m $21.3m $18.2m 2006 2007 2008 2009 2010 2011 2012 5
Slide 8: Expense composition
Expense composition For personal use only New Business Recurring Expenses ($m) Non Recurring Expenses ($m) Existing Business Expenses ($m) $31.9m 1.6 $28.4m 0.6 0.7 Existing business 29.7 27.7 expenses increase $2m (7.2%) 2011 2012 6
Slide 9: Operating margin
Operating margin For personal use only Operating Profit (Pre-tax) ($m) Operating Margin (%) (Not adjusted for non-recurring expenses) 18.0 40.0% 37.1% 16.0 32.4% 34.3% 14.0 30.0% 31.1% 27.5% 25.6% 12.0 26.8% 10.0 20.0% 8.0 14.6 6.0 11.1 10.9 10.7 10.8 11.1 10.0% 4.0 6.6 2.0 0.0 0.0% 2006 2007 2008 2
Slide 10: All Ordinaries Year on Year Comparison
All Ordinaries Year on Year Comparison For personal use only All Ordinaries Index Year on Year All Ords 2011/12 All Ords 2010/11 All Ords 2009/10 5000 4500 4000 3500 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 8
Slide 11: Operating revenue – change
Operating revenue – change For personal use only Operating revenue up 10% to $43m Investment Income ($m) Operating revenue movement compared to prior year (Excludes profit on sale of investments) Business Units ($m) + $1.1m - $0.3m $43.0m - 2.3% $43.0m + 6.4% $39.2m $39.2m 0.3 + 9.7% 1.2 0.6 $33.8m
Slide 12: Operating revenue – composition
Operating revenue – composition For personal use only Other Corporate Fiduciary & Financial Services Private Wealth Services $ 43.0m 3% $ 39.2m $ 39.2m 5% 4% $ 33.8m $ 34.5m $ 32.4m 6% 5% 42% 6% 44% 48% $ 24.8m 7% 47% 47% 49% 51% 55% 52% 47% 48% 45% 47% 42% 2006 2007 2008 2009 2010 2011 2012 10
Slide 13: Reported earnings per share
Reported earnings per share For personal use only Reported earnings per share at 96.74¢ per share Earnings per share Weighted average shares on issue ('000) 133.35 8,663 8,483 105.18 98.45 8,328 96.60 97.01 96.74 8,138 8,000 69.94 7,923 7,742 7,372 7,000 2006 2007 2008 2009 2010 2011 2012 2006 2007
Slide 14: Returns to shareholders
Returns to shareholders For personal use only Full-year, fully-franked dividend Full-year dividend as percentage of NPAT Reflecting a current yield of approximately Note, change of policy to 70-90% 7.7% before franking credits of NPAT (from 60-80%) 120% 114% Interim (cps) 112% Final (cps) 110 110 11
Slide 15: Net asset base
Net asset base For personal use only Strong net asset base. Nil debt. 2012 ROE on average shareholder’s funds was 14.6% $59.5m $53.9m $55.4m $52.0m $52.9m $44.4m No impairment $36.4m charges 2006 2007 2008 2009 2010 2011 2012 13
Slide 16: Sustained shareholder return
Sustained shareholder return For personal use only 350 EQT total shareholder return. Assumes all dividends are reinvested. 1 July 2005 to 30 June 2012 300 EQT total shareholder return + 44.7% S&P/ASX 200 Accum. Index + 30.0% 250 200 150 100 Base (100) taken at 1 July 2005 50 S&P/ASX 200 Accumulation
Slide 17: Business units – operations & performance
Business units – operations & performance For personal use only Target market / Revenue FUM/FUA Business unit Key services channel 2012 vs 2011 2012 vs 2011 Private Wealth Services • Trusts & estates • Private clients $23.5m $2,288m (PWS) • Philanthropy • Business to + 14.6% + 0.3% • Wealth manageme
Slide 18: Business unit overview – PWS
Business unit overview – PWS For personal use only Operating revenue up 14.4% to $23.5m FUM/FUA at 30 June 2012 up 0.3% to $2,288m 23.5 2,281 2,288 20.5 2,100 18.3 1,928 1,869 16.7 1,715 1,658 16.0 14.6 10.5 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 16
Slide 19: Business unit overview – PWS
Business unit overview – PWS For personal use only • PWS revenue up 14%, including acquisitions. Net of acquisitions the business unit achieved positive revenue growth despite market value impacts. • Successful integration of aged care advisory business, which operated to projections in first year,
Slide 20: Business unit overview – CFFS
Business unit overview – CFFS For personal use only Operating revenue up 6.4% to $18.3m FUM/FUA at 30 June 2012 up 9.9% to $21,415m 21,415 18.7 18.3 19,485 17.2 15.9 15.8 16.1 16,171 15,646 14,949 12.6 12,124 12,542 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 18
Slide 21: Business unit overview – CFFS
Business unit overview – CFFS For personal use only In Corporate Fiduciary Services: • The Sydney based RE resource has broadened the potential to develop new business opportunities through multiple offices, as well as increasing our ability to actively align EQT into the offices of our clients. • A
Slide 22: Business update and summary
Business update and summary For personal use only The environment • FoFA and Stronger Super (MySuper & SuperStream) impacts still being absorbed. Mix of opportunities and challenges – but increased business complexity and costs. • Trustee business is not immune to regulatory reform and review – but
Slide 23: Summary
Summary For personal use only The business • From now on EQT will focus and report as two business lines – Corporate Fiduciary & Financial Services and Private Wealth Services. Clear focus on meeting client needs, rather than products and services. • Integration of previously separate administration
Slide 24: Summary – The business (cont.)
Summary For personal use only The business (cont.) • Strategic direction consistent over medium – long-term. Diversified business provides some protection against difficult conditions. • Profitable, relatively stable business with annuity income sources is also an attractive workplace in current cir
Slide 25: Disclaimer
Disclaimer For personal use only Equity Trustees Limited ABN 46 004 031 298, Australian Financial Services Licence No 240975. This document was prepared by Equity Trustees Limited and is only provided for information purposes. It is not intended to take the place of professional advice and you shoul