Perpetual Limited · ASX:PPT
Perpetual — Shareholder Meeting (October 2023)
83 slides from Perpetual's shareholder meeting presentation, Oct 19, 2023
Slide 1: Perpetual's 2023 Annual General Meeting
Perpetual Limited ABN 86 000 431 827 Angel Place, Level 18, 123 Pitt Street Sydney NSW 2000 Australia 19 October 2023 +61 9229 9000 perpetual.com.au ASX Limited ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 Via electronic lodgment Perpetual’s 2023 Annual General Me
Slide 2: Chairman's Address
Perpetual Limited’s 2023 Annual General Meeting 19 October 2023 Chairman’s Address Presented by Tony D’Aloisio Shortly, I will ask our CEO and Managing Director, Rob Adams to deliver his address. But before I do, I will provide some comments on our performance for FY23 and cover other formal matters
Slide 3: Our three businesses and FY23 results
Over the past few years, through their work, we have strengthened our three businesses including by undertaking strategic acquisitions to support our growth ambitions. The most notable of these have been in the asset management business where we acquired Trillium and Barrow Hanley in 2020 and Pendal
Slide 4: Lower franking levels in FY23
lower franking levels in FY23 reflect the increased contribution of international sources of earnings from our business as a proportion of our total earnings. Total dividends for the year were $1.55 per share. This represents a payout ratio of 78% for the full year, within the Board’s stated dividen
Slide 5: Management incentives and board renewal
To maintain an alignment between management and shareholders, the Board has implemented what it believes are fair and appropriate incentives for management to deliver the expected benefits. Importantly, the incentives for management include long-term incentives premised on absolute total shareholder
Slide 6: Board renewal and succession
would be unable to join the Board on a long-term basis, beyond our meeting today, and on behalf of the Board I would like to thank Kathryn for her contribution this year. I am pleased to confirm that we have secured Mr Phil Wagstaff to join the Board, replacing Kathryn, and he will join us in Novemb
Slide 7: Technology and Cyber Security Committee
Technology and Cyber Security Committee, chaired by Mona Aboelnaga Kanaan and including Ian Hammond, Fiona Trafford-Walker and Christopher Jones. At today’s meeting, shareholders will have the opportunity to vote for the appointment of Christopher Jones and the re-appointment of both Fiona Trafford-
Slide 8: Asset Management business update
to A$212 billion in FY23. Today our Asset Management business is a larger, more diversified and global business with seven respected brands and quality investment capabilities across geography and product sets which Rob will cover in more detail. Transformational corporate strategies, particularly w
Slide 9: First quarter FY24 business update
You will have seen in our first quarter FY24 business update released last week, Barrow Hanley had a strong quarter, achieving A$0.5 billion in net inflows across its strategies in the quarter. Over the past nine months, Barrow Hanley has seen over A$1 billion in net inflows, delivering on our expec
Slide 10: Pendal synergies and acquisition
At the time of acquisition, we announced targeted synergies of A$60 million over two years. We revised this target upward to A$80 million in annualised synergies. As at 30 June 2023, annualised expense synergies were A$29 million, on track for our targets of A$40 million achieved by January 2024, an
Slide 11: Corporate Trust and Wealth Management
Corporate Trust and Wealth Management Our strategy was not just focused on asset management. We have invested in Corporate Trust and Wealth Management, both of which have continued to deliver solid growth following continued investment in new capabilities. This further diversifies our earnings and p
Slide 12: Growth opportunities and sustainability
businesses will enable us to deliver better returns for shareholders and quality businesses enable your Board to assess additional strategic options to maximise value for shareholders. Sustainability at Perpetual This year we have made important progress in the delivery of our sustainability strateg
Slide 13: CEO and Managing Director's Address
CEO and Managing Director’s AGM Address Presented by Rob Adams Thank you, Tony and good morning to those both in the room and joining us online today. Thank you for joining us. Delivering growth, scale and diversification benefits As Tony mentioned in his address, the FY23 financial year was a signi
Slide 14: Global distribution and growth
who lead their respective categories, now supported by a global distribution team covering all key regions and channels. And we have significant capacity for growth from those existing capabilities. We are now fully focused on driving that growth over time. With the acquisition of Pendal, we have do
Slide 15: Group financial highlights
commitments across four key pillars, on which I will provide an update on shortly. Group Financial Highlights Turning now to our headline results for FY23, which Tony has touched on. Perpetual delivered total operating revenue $1,013.8 million for the year, an increase of 32% on FY22, reflecting the
Slide 16: Asset management flows and drivers
- Underperformance in J O Hambro’s Global and International Select strategies. - Asset allocation shifts from equities to fixed income, primarily impacting flows in US equities for both Barrow Hanley and TSW. - And, defined benefit scheme clients becoming fully funded, hence de-risking by reducing t
Slide 17: Corporate Trust performance
In Corporate Trust we have a high-quality business that continues to deliver growth, through our unmatched long-term client relationships. UPBT was up 12% and revenue up 12% in FY23. It has been particularly pleasing to see the consistent delivery of the prized combination of strong margins and earn
Slide 18: Global investment capabilities
We therefore needed to add global investment capabilities in order to be more relevant to our Australian clients and to access growth opportunities outside of Australia. In June 2020, we acquired leading ESG specialist firm Trillium, and later that year we acquired a 75% interest in Barrow Hanley, a
Slide 19: Focused on strategy execution
Focused on strategy execution in Asset Management We are entirely focused on positive strategy execution for our Asset Management business. Since completion we have: Retained all key investment professionals across our seven boutique businesses and brands; Simplified our Asset Management leaders
Slide 20: Pendal integration update
We have strong investment performance across our capabilities, which we will leverage to deliver improved growth; Continuing to streamline and rationalise our product structures to drive efficiency and focus; and Our new leadership structure which now provides us with a global view to allocate
Slide 21: Technology, product and platform rationalisation
This financial year, our integration activities are focused on technology, product and platform rationalisation, combining head offices in Sydney, and a programme of work to optimise our third-party vendor costs. Whilst there is much for us to do, I firmly believe that this acquisition will deliver
Slide 22: Stronger, simpler, better
advice, strong investment performance and contemporary product solutions to support our clients’ needs. Simplify - and streamline. We will seek areas of simplification across our portfolio of businesses and will be focused on areas where Perpetual adds value. Sustainable growth –as said, our focus g
Slide 23: Perpetual's Prosperity Plan
of our 35 commitments either being on track or having been achieved. We have plans in place to better address those that are not currently on track. Turning to the next slide, where I’ll talk in more detail about some of the initiatives across the pillars. Supporting a more equitable and sustainable
Slide 24: Supporting a more equitable world
- For the 6th year in a row, we have been named a Workplace Gender Equality Agency (WGEA) Employer of Choice for gender equality; - We have implemented market-leading benefits that support diversity, flexibility and the wellbeing of our people; and - As at June 2023, 34% of our senior leader cohort
Slide 25: Thank you
Trust businesses will deliver continued growth, including growth of our non market-linked revenues; we will drive simplification and streamlining across our businesses, and; we will be entirely focused on delivering to our shareholders the expected return on investments made across the firm. Thank y
Slide 26: People and Remuneration Committee Address
Chairman of the People and Remuneration Committee’s AGM Address Presented by Nancy Fox Good morning. As Chair of the People and Remuneration Committee, I am pleased to present to you today our key remuneration outcomes for the 2023 financial year. As Tony and Rob have already highlighted, FY23 was a
Slide 27: Group FY23 remuneration highlights
At a Group level, while Perpetual delivered growth in underlying profit after tax (UPAT) to A$163.2m, underlying EPS of A$1.966 was down 24% on FY22. Continued profit growth was delivered in Corporate Trust and Wealth Management, however net outflows of A$8.1b across our Asset Management business im
Slide 28: Pendal integration and remuneration outcomes
the Pendal integration program was on track, the solid performance of both wealth management and corporate trust businesses and, the continued delivery of positive client outcomes. For FY23, the aggregate Cash and Unhurdled Variable Incentive outcomes approved for the CEO are down 35% on prior year
Slide 29: Changes to KMP remuneration in FY23
Changes to KMP remuneration in FY23 Also foreshadowed in our FY22 Remuneration Report, commencing in FY23, the Hurdled Equity component of the KMP Variable Incentive was decoupled from the broader Variable Incentive structure. In effect, the Hurdled Equity component is no longer subject to the group
Slide 30: Conclusion
– noting also that the entire bonus in FY20 was allocated as hurdled Equity, with zero cash or unhurdled equity being allocated, in response to the uncertainty created by Covid-19. Conclusion On behalf of the Board, I would like to thank shareholders and other stakeholders for your valuable feedback
Slide 31: Perpetual Limited (ASX:PPT) 2023 Annual General Meeting
Perpetual Limited (ASX:PPT) 2023 Annual General Meeting Thursday 19 October 2023
Slide 32: Disclaimer
Disclaimer This presentation is in summary form and is not necessarily complete. It should be read together with Perpetual Limited’s (Perpetual) consolidated financial statements and other announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au . The prese
Slide 33: Mr Tony D'Aloisio AM
Mr Tony D’Aloisio AM Chairman Perpetual Limited - AGM - 2023
Slide 34: Perpetual Group Board
Perpetual Group Board Mona Aboelnaga Kanaan Kathryn Matthews Christopher Jones Independent Director Independent Non-executive Director Independent Non-executive Director Appointed September 2021 Appointed January 2023 Appointed January 2023 Perpetual Limited - AGM - 2023 4
Slide 35: Mr Tony D'Aloisio AM
Mr Tony D’Aloisio AM Chairman Perpetual Limited - AGM - 2023
Slide 36: Brendan Twining
Brendan Twining Partner Audit, Assurance & Risk Consulting KPMG Perpetual Limited - AGM - 2023 6
Slide 37: Today's Agenda
Today’s Agenda Presentation of FY23 Financial Statements and Reports Adoption of the Remuneration Report for FY23 Re-appointment of Tony D’Aloisio as Non-executive Director Re-appointment of Fiona Trafford-Walker as Non-executive Director Re-appointment of Christopher Jones as Non-executive Director
Slide 38: Mr Tony D'Aloisio AM
Mr Tony D’Aloisio AM Chairman Perpetual Limited - AGM - 2023
Slide 39: Voting is now open
Voting is now open Voting will close five minutes after close of meeting 9
Slide 40: How to vote online
How to vote online Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform) 2 Proxy Number and Postcode 3 for each item of business Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 577 505 Perpetual Limited - AG
Slide 41: Asking a question online
Asking a question online Asking a question by phone Only Shareholders and Proxyholders Shareholders Call Question Line are able to ask questions must register for on 1800 875 033 ? a unique PIN to ask live questions Click on ‘Ask a Question’ Ask a Question 1 during AGM The moderator will request you
Slide 42: Mr Tony D'Aloisio AM
Mr Tony D’Aloisio AM Chairman’s address Perpetual Limited - AGM - 2023
Slide 43: Mr Rob Adams
Mr Rob Adams CEO’s address Perpetual Limited - AGM - 2023
Slide 44: Group FY23 financial highlights
Group FY23 financial highlights $1,013.8m $163.2m $59.0m 155cps Operating revenue1 Underlying net profit after tax2 Statutory net profit after tax Dividends Asset Management Wealth Management Corporate Trust Operating revenue3 Operating revenue3 Operating revenue3 $132.7m $47.0m $81.6m Profit before
Slide 45: Our asset management business
Our asset management business Perpetual Group total AUM ~$212 billion1 Scale benefits, stronger global distribution, increased ESG investment and advisory capabilities Across all major markets globally Multi-boutique Diverse portfolio Americas UK and Europe Asia Australia Equities Multi-asset Fixed
Slide 46: Focused on strategy execution in Asset Management
Focused on strategy execution in Asset Management Driving the benefit of our expanded global distribution reach across all boutiques Since Completion of Pendal acquisition Future Focus • Retained all key investment professionals • Co-ordinated global distribution focused on priority products, region
Slide 47: Pendal integration update
Pendal integration update Integration tracking to plan; focus on synergy realisation and improving net flows • As at 30 June 2023, $29 million1 in run-rate synergies Synergies on track to meet targets (run-rate synergies) realised • $39.6 million in costs associated with integration incurred $80m ta
Slide 48: Our strategy
Our strategy Simplifying and driving sustainable growth Our purpose: To create enduring prosperity Our values: Excellence, Integrity, Partnership Clients: Enduring relationships and People: Inclusive, empowered and Shareholders: Delivering sustainable Community: Support strong and trusted brand acco
Slide 49: Our Sustainability Strategy - Perpetual's Prosperity Plan
Our Sustainability Strategy - Perpetual’s Prosperity Plan 27 of our 35 commitments1 Pillars and priority themes are either on track or achieved Despite a significant period of change as we have brought together Perpetual Group and Pendal, we have made good progress on our commitments across the four
Slide 50: Supporting a more equitable and sustainable world
Supporting a more equitable and sustainable world Governance1 Planet1 People1 Communities1 Over $1 billion in net inflows in Cited as WGEA Employer of Managed over $1bn for +57 Net Promoter Score, our FY23 in funds defined as supporting Choice for Gender Equality, every Aboriginal and Native Title h
Slide 51: FY24 outlook and priorities
FY24 outlook and priorities Focus on delivering return on investments made across our quality portfolio of businesses • Operating environment for Asset Management expected to continue to be challenging with investor caution towards equities, asset allocation shifts and higher interest rates impactin
Slide 52: Mr Tony D'Aloisio AM
Mr Tony D’Aloisio AM Chairman Perpetual Limited - AGM - 2023
Slide 53: Financial statements and reports
Financial statements and reports Perpetual Limited - AGM - 2023
Slide 54: Asking a question online
Asking a question online Asking a question by phone Only Shareholders and Proxyholders Shareholders Call Question Line are able to ask questions must register for on 1800 875 033 ? a unique PIN to ask live questions Click on ‘Ask a Question’ Ask a Question 1 during AGM The moderator will request you
Slide 55: Mr Tony D'Aloisio AM
Mr Tony D’Aloisio AM Chairman Perpetual Limited - AGM - 2023
Slide 56: Resolution 1: Remuneration Report
Resolution 1: Remuneration Report To adopt the Remuneration Report for the financial year ended 30 June 2023. Note: Perpetual’s key management personnel, named in the Company’s 2023 Remuneration Report, or their closely related parties, cannot vote on this resolution either in their own capacity or
Slide 57: Ms Nancy Fox
Ms Nancy Fox Chairman, People and Remuneration Committee Perpetual Limited - AGM - 2023
Slide 58: Resolution 1: Remuneration Report
Resolution 1: Remuneration Report To adopt the Remuneration Report for the financial year ended 30 June 2023. Note: Perpetual’s key management personnel, named in the Company’s 2023 Remuneration Report, or their closely related parties, cannot vote on this resolution either in their own capacity or
Slide 59: Resolution 1: Remuneration Report
Resolution 1: Remuneration Report Valid proxies received 32,243,070 For (76.81%) 1,809,907 Open (4.32%) 7,922,269 Against (18.87%) Abstain 2,556,208 Perpetual Limited - AGM - 2023 29
Slide 60: How to vote online
How to vote online Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform) 2 Proxy Number and Postcode 3 for each item of business Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 577 505 Perpetual Limited - AG
Slide 61: Resolution 2: Re-appointment of Mr Tony D'Aloisio AM
Resolution 2: Re-appointment of Mr Tony D’Aloisio AM That Mr Tony D’Aloisio, retiring as a Director of the Company in accordance with clause 20.9.1 of the Company’s Constitution and who has consented to stand for re-appointment, be re-appointed as a Director of the Company in accordance with clause
Slide 62: Mr Tony D'Aloisio AM
Mr Tony D’Aloisio AM Chairman Perpetual Limited - AGM - 2023
Slide 63: Resolution 2: Re-appointment of Mr Tony D'Aloisio AM
Resolution 2: Re-appointment of Mr Tony D’Aloisio AM That Mr Tony D’Aloisio, retiring as a Director of the Company in accordance with clause 20.9.1 of the Company’s Constitution and who has consented to stand for re-appointment, be re- appointed as a Director of the Company in accordance with clause
Slide 64: Resolution 2: Re-appointment of Mr Tony D'Aloisio AM
Resolution 2: Re-appointment of Mr Tony D’Aloisio AM Valid proxies received 35,116,699 For (83.57%) 622,629 Open (1.48%) 6,281,540 Against (14.95%) Abstain 2,568,493 Perpetual Limited - AGM - 2023 34
Slide 65: How to vote online
How to vote online Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform) 2 Proxy Number and Postcode 3 for each item of business Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 577 505 Perpetual Limited - AG
Slide 66: Resolution 3: Re-appointment of Ms Fiona Trafford-Walker
Resolution 3: Re-appointment of Ms Fiona Trafford-Walker That Ms Fiona Trafford-Walker, retiring as a Director of the Company in accordance with clause 20.9.1 of the Company’s Constitution and who has consented to stand for re-appointment, be re-appointed as a Director of the Company in accordance w
Slide 67: Ms Fiona Trafford-Walker
Ms Fiona Trafford-Walker Non-executive Director Perpetual Limited - AGM - 2023
Slide 68: Resolution 3: Re-appointment of Ms Fiona Trafford-Walker
Resolution 3: Re-appointment of Ms Fiona Trafford-Walker That Ms Fiona Trafford-Walker, retiring as a Director of the Company in accordance with clause 20.9.1 of the Company’s Constitution and who has consented to stand for re-appointment, be re-appointed as a Director of the Company in accordance w
Slide 69: Resolution 3: Re-appointment of Ms Fiona Trafford-Walker
Resolution 3: Re-appointment of Ms Fiona Trafford-Walker Valid proxies received 37,621,441 For (89.64%) 621,992 Open (1.48%) 3,726,734 Against (8.88%) Abstain 2,615,893 Perpetual Limited - AGM - 2023 39
Slide 70: How to vote online
How to vote online Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform) 2 Proxy Number and Postcode 3 for each item of business Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 577 505 Perpetual Limited - AG
Slide 71: Resolution 4: Re-appointment of Mr Christopher Jones
Resolution 4: Re-appointment of Mr Christopher Jones That Mr Christopher Jones, retiring as a Director of the Company in accordance with clause 20.9.1 of the Company’s Constitution and who has consented to stand for re-appointment, be re-appointed as a Director of the Company in accordance with clau
Slide 72: Mr Christopher Jones
Mr Christopher Jones Non-executive Director Perpetual Limited - AGM - 2023
Slide 73: Resolution 4: Re-appointment of Mr Christopher Jones
Resolution 4: Re-appointment of Mr Christopher Jones That Mr Christopher Jones, retiring as a Director of the Company in accordance with clause 20.9.1 of the Company’s Constitution and who has consented to stand for re-appointment, be re-appointed as a Director of the Company in accordance with clau
Slide 74: Resolution 4: Re-appointment of Mr Christopher Jones
Resolution 4: Re-appointment of Mr Christopher Jones Valid proxies received 39.229,974 For (93.46%) 626,618 Open (1.50%) 2,116,536 Against (5.04%) Abstain 2,616,233 Perpetual Limited - AGM - 2023 44
Slide 75: How to vote online
How to vote online Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform) 2 Proxy Number and Postcode 3 for each item of business Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 577 505 Perpetual Limited - AG
Slide 76: Resolution 5(a): Grant of Share Rights to the CEO and Managing Director
Resolution 5(a): Grant of Share Rights to the CEO and Managing Director under the KMP variable incentive plan To approve the grant of 28,407 share rights to Rob Adams in accordance with Perpetual’s Variable Incentive Plan and Rob’s contract of employment. Perpetual Limited - AGM - 2023 46
Slide 77: Resolution 5(a): Grant of Share Rights to the CEO and Managing Director
Resolution 5(a): Grant of Share Rights to the CEO and Managing Director under the KMP variable incentive plan Valid proxies received 33,244,099 For (78.99%) 2,249,311 Open (5.34%) 6,593,351 Against (15.67%) Abstain 2,502,600 Perpetual Limited - AGM - 2023 47
Slide 78: How to vote online
How to vote online Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform) 2 Proxy Number and Postcode 3 for each item of business Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 577 505 Perpetual Limited - AG
Slide 79: Resolution 5(b): Grant of Performance Rights to the CEO and Managing Director
Resolution 5(b): Grant of Performance Rights to the CEO and Managing Director under the KMP variable incentive plan To approve the grant of 39,634 hurdled performance rights to Rob Adams in accordance with Perpetual’s Variable Incentive Plan and Rob’s contract of employment. Perpetual Limited - AGM
Slide 80: Resolution 5(b): Grant of Performance Rights to the CEO and Managing Director
Resolution 5(b): Grant of Performance Rights to the CEO and Managing Director under the KMP variable incentive plan Valid proxies received 36,909,970 For (87.68%) 2,251,691 Open (5.34%) 2,936,645 Against (6.98%) Abstain 2,491,055 Perpetual Limited - AGM - 2023 50
Slide 81: How to vote online
How to vote online Click ‘Get a Voting Card’ Enter your SRN/HIN or Fill out your voting card 1 (top and bottom of platform) 2 Proxy Number and Postcode 3 for each item of business Click ‘Submit Detail and Vote’ Click ‘Submit Vote’ Get a Voting Card Need help? Call 1800 577 505 Perpetual Limited - AG
Slide 82: Questions
Questions Update image
Slide 83: Thank you
Thank you Update image