Perpetual Limited · ASX:PPT
Perpetual — H1 2016 Earnings Presentation
21 slides from Perpetual's earnings presentation, Feb 25, 2016
Slide 1: 1H16 Results – Six months to 31 December 2015
25 February 2016 PERPETUAL LIMITED For personal use only 1H16 RESULTS SIX MONTHS TO 31 DECEMBER 2015 Geoff Lloyd Chief Executive Officer & Managing Director Gillian Larkins Chief Financial Officer ABN 86 000 431 827
Slide 2: 1H16 Overview: Solid results despite volatile equity markets
1H16 OVERVIEW SOLID RESULTS DESPITE VOLATILE EQUITY MARKETS For personal use only SOLID RESULTS NPAT up DPS up Initiatives showing 10% 9% momentum on 1H15 on 1H15 Perpetual Perpetual Perpetual Investments Private Corporate Trust continues to deliver strategy on track with benefitting from growth in
Slide 3: Solid financial results
1H16 SOLID FINANCIAL RESULTS For personal use only UPAT, $m NPAT, $m NPAT EPS, cps DPS, cps 2.4% 9.9% 9.7% 8.7% 68.4 63.9 64.4 138.5 139.1 125.0 125.0 62.1 63.6 58.6 126.8 115.0 1H15 2H15 1H16 1H15 2H15 1H16 1H15 2H15 1H16 1H15 2H15 1H16 Note: Percentage increases represented are CAGR. 3
Slide 4: 1H16 Results – Growth highlights
1H16 RESULTS – GROWTH HIGHLIGHTS DIVERSIFIED BUSINESS WITH ALL UNITS CONTRIBUTING TO GROWTH For personal use only All Ordinaries Index Perpetual Investments net inflows, $b 6500 Average 1H16 / 2H15: -7% 1.6 Average 1H16 / 1H15: -3% 6000 0.1 5500 5000 -1.3 4500 31-Dec-14 31-Mar-15 30-Jun-15 30-Sep-15
Slide 5: Strategy
STRATEGY For personal use only LEAD in core businesses EXTEND into adjacent markets EXPLORE new opportunities GOALS PEOPLE CLIENTS SHAREHOLDERS Employee Engagement Client Advocacy NPAT growth Excellence Australia’s largest Delivering exceptional outcomes and most trusted Integrity Vision independent
Slide 6: Perpetual Investments: Strong investment performance
PERPETUAL INVESTMENTS STRONG INVESTMENT PERFORMANCE For personal use only QUARTILE RANKINGS^ FUND WEIGHTED % OF FUNDS periods ending December 2015 OVER 1 – 10 YEAR 1Yr 3Yrs 5Yrs 7Yrs 10Yrs Perpetual W Australian 2 3 1 1 1 Open Perpetual W Concentrated Equity 2 2 1 1 1 Open 1 yr 73% 27% Perpetual W E
Slide 7: Perpetual Investments: Highlights
PERPETUAL INVESTMENTS HIGHLIGHTS For personal use only Superior outperformance relative to value managers Global Share Fund Australian Performance as at 31/12/15, % Equities Share-Plus exceeded $1 billion in FUM as at 29.8 31 December 2015 23.5 18.9 12.8 11.5 15.2 Global Share Fund delivering strong
Slide 8: Perpetual Private: Strategy on track
PERPETUAL PRIVATE STRATEGY ON TRACK For personal use only NET FLOWS, $b NET NEW CLIENTS 46 43 0.20 0.20 35 35 24 0.10 0.10 0.05 1H14 2H14 1H15 2H15 1H16 1H14 2H14 1H15 2H15 1H16 Organic growth continues: Lead & Grow initiatives now underway: Five consecutive halves of positive flows Acquisition of F
Slide 9: Perpetual Corporate Trust: Diversified business with a leading market position
PERPETUAL CORPORATE TRUST DIVERSIFIED BUSINESS WITH A LEADING MARKET POSITION For personal use only TRUST SERVICES – FUA, $b FUND SERVICES – FUA, $b +15% +5% 413.6 178.2 178.6 186.5 359.5 379.6 1H15 2H15 1H16 1H15 2H15 1H16 New earnings stream from investment in data services Continued growth in new
Slide 10: Financials
For personal use only FINANCIALS GILLIAN LARKINS CHIEF FINANCIAL OFFICER
Slide 11: Financial performance – Group
FINANCIAL PERFORMANCE – GROUP INCREASE IN NPAT AND DIVIDENDS For personal use only 1H16 2H15 1H15 1H16 v 1H16 v For the period KEY THEMES: $m $m $m 2H15 1H15 Operating revenue 240.7 252.6 244.5 (5%) (2%) FUM and FUA impacted by volatile markets Total expenses (152.7) (156.2) (156.6) 2% 2% Strong
Slide 12: Perpetual Investments: Focused margin management in difficult equity markets
PERPETUAL INVESTMENTS FOCUSED MARGIN MANAGEMENT IN DIFFICULT EQUITY MARKETS For personal use only 1H16 2H15 1H15 1H16 v 1H16 v Average FUM, $b For the period $m $m $m 2H15 1H15 31.2 33.3 30.1 Revenue 110.0 120.7 119.3 (9%) (8%) Operating expenses (49.0) (51.7) (53.2) 5% 8% EBITDA1 61.0 69.0 66.1 (12
Slide 13: Perpetual Private: Client and flow momentum offset by weaker markets
PERPETUAL PRIVATE CLIENT AND FLOW MOMENTUM OFFSET BY WEAKER MARKETS For personal use only 1H16 2H15 1H15 1H16 v 1H16 v Revenue, $m For the period $m $m $m 2H15 1H15 82.3 84.0 82.3 Market related revenue 53.9 54.7 56.1 (1%) (4%) 26.2 29.3 28.4 Non-market related revenue 28.4 29.3 26.2 (3%) 8% Total r
Slide 14: Perpetual Corporate Trust: Diversified business with strong growth
PERPETUAL CORPORATE TRUST DIVERSIFIED BUSINESS WITH STRONG GROWTH For personal use only 1H16 2H15 1H15 1H16 v 1H16 v Revenue, $m For the period 23.7 $m $m $m 2H15 1H15 18.0 20.8 20.2 23.0 18.7 Trust services revenue 23.7 23.0 20.8 3% 14% Fund services revenue 18.7 20.2 18.0 (7%) 4% 1H15 2H15 1H16 To
Slide 15: Balance sheet: Strength provides opportunities
BALANCE SHEET STRENGTH PROVIDES OPPORTUNITIES For personal use only Capital requirements, $m For the period ended 1H16 2H15 1H15 -20.1 192.0 176.7 Cash & Liquid investments ($m) 316.2 341.4 316.0 171.9 Corporate debt ($m) (87.0) (87.0) (87.0) Net cash ($m) 229.2 254.4 229.0 1H15 2H15 1H16 Goodwill a
Slide 16: Financial performance: Sustained dividend growth over three years
FINANCIAL PERFORMANCE SUSTAINED DIVIDEND GROWTH OVER THREE YEARS For personal use only NPAT EPS, cps NPAT ROE1, % Fully Franked Dividend, cps 138.5 139.1 22.4 21.8 126.8 21.1 115 125 125 1H15 2H15 1H16 1H15 2H15 1H16 1H15 2H15 1H16 Fully franked dividend of Payout ratio2 of Dividend payable on 125 c
Slide 17: 1H16 Overview: Solid results despite volatile equity markets
1H16 OVERVIEW SOLID RESULTS DESPITE VOLATILE EQUITY MARKETS For personal use only SOLID RESULTS NPAT up DPS up Initiatives showing 10% 9% momentum on 1H15 on 1H15 Perpetual Perpetual Perpetual Investments Private Corporate Trust continues to deliver strategy on track with benefitting from growth in
Slide 18: Appendix
For personal use only APPENDIX
Slide 19: Lead & Grow: Extend – Global Equities
LEAD & GROW EXTEND – GLOBAL EQUITIES For personal use only TARGET AUG GLOBAL SHARE FUND LAUNCH PROGRAM $1B FUM 2014 BY AUG 2017 People Consultants and Major platform Dealer Group Models and Retail and process researchers placements APLs multi channels channel engagement ON TARGET ON TARGET ON TARGET
Slide 20: Contacts
CONTACTS Chief Executive Officer & Managing Director For personal use only Geoff Lloyd geoff.lloyd@perpetual.com.au T: +612 9229 9078 Chief Financial Officer Gillian Larkins gillian.larkins@perpetual.com.au T: +612 9229 3547 General Manager Investor Relations & Corporate Finance Neil Wesley neil.wes
Slide 21: Disclaimer
DISCLAIMER Important information For personal use only The information in this presentation is general background information about the Perpetual Group and its activities current as at 25 February 2016. It is in summary form and is not necessarily complete. It should be read together with the compan