Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — H1 FY2011 Earnings Presentation
44 slides from Eqt's earnings presentation, Feb 24, 2011
Slide 1: Half Year Result - Interim Dividend Maintained, Acquisition Completed
24 February 2011 For personal use only Equity Trustees Half Year Result - Interim Dividend Maintained, Acquisition Completed, and Building for Future Equity Trustees Limited (EQT) today confirmed a lift in half year revenue of 10.5% and a 3.6% increase in operating profit after tax for the six month
Slide 2: Business structure changes and outlook
Mr Burns also said that a number of changes to the business structure were in the process of being implemented. These are intended to facilitate greater focus on core service delivery, For personal use only primarily in corporate relationships, and improve co-ordination and communication within supp
Slide 3: Appendix 4D – Half-Year Report
Appendix 4D – Half-Year Report For personal use only Name of entity Equity Trustees Limited ABN or equivalent company reference Half Year Ended 46 004 031 298 31 December 2010 RESULTS FOR ANNOUNCEMENT TO THE MARKET 31 Dec 10 31 Dec 09 $ '000 $ '000 Revenue from ordinary activities 18,949 Up 9.5% Fro
Slide 4: ASX Additional Information
ASX ADDITIONAL INFORMATION Additional information required by the ASX, and not shown elsewhere in this report, follows. The information is current as at 31 December 2010. Net tangible asset backing per share The net tangible asset backing per share at 31 December 2010 was $1.37 (2009: $2.62), which
Slide 5: Consolidated Half-Year Financial Report
For personal use only Equity Trustees Limited ABN 46 004 031 298 Consolidated Half-Year Financial Report for the half-year ended 31 December 2010
Slide 6: Table of Contents
Equity Trustees Limited Table of Contents For personal use only Directors' Report 2 Auditor's Independence Declaration 4 Directors' Declaration 5 Condensed Consolidated Income Statement 6 Condensed Consolidated Statement of Comprehensive Income 7 Condensed Consolidated Statement of Financial Positio
Slide 7: Directors' Report
Equity Trustees Limited ABN 46 004 031 298 Directors' Report For personal use only The directors of Equity Trustees Limited submit herewith the financial report for Equity Trustees Limited and its subsidiaries (the Group) for the half-year ended 31.December.2010. In order to comply with the provisio
Slide 8: Directors' Report (cont'd)
Equity Trustees Limited ABN 46 004 031 298 Directors' Report (cont’d) For personal use only Dividends During the half-year period the company paid a fully franked final dividend of 60 cents per share in respect of the financial year ended 30 June 2010. Subsequent to 31 December 2010, the directors h
Slide 9: Auditor's Independence Declaration
Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia DX: 111 Tel: +61 3 9671 7000 For personal use only 24 February 2011 Fax: +61 3 9671 7001 www.deloitte.com.au The Board of Directors Equity Trustees Limited Level 2 575 Bourke Stre
Slide 10: Directors' Declaration
Directors' Declaration The directors declare that: a) in the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and For personal use only b) in the directors’ opinion, the attached financial statements a
Slide 11: Condensed Consolidated Income Statement
Equity Trustees Limited Condensed Consolidated Income Statement for the half-year ended 31 December 2010 Consolidated Half-year ended Half-year ended 31-Dec-10 31-Dec-09 For personal use only Note $ $ Continuing operations Revenue 18,234,415 16,455,114 Other revenue 715,052 848,739 Total revenue 18,
Slide 12: Condensed Consolidated Statement of Comprehensive Income
Equity Trustees Limited Condensed Consolidated Statement of Comprehensive Income for the half-year ended 31 December 2010 Consolidated Half-year ended Half-year ended 31-Dec-10 31-Dec-09 Note $ $ For personal use only Net profit after income tax expense from continuing operations 3,701,346 3,666,994
Slide 13: Condensed Consolidated Statement of Financial Position
Equity Trustees Limited Condensed Consolidated Statement of Financial Position as at 31 December 2010 Consolidated 31-Dec-10 30-Jun-10 For personal use only Note $ $ Current assets Cash and cash equivalents 3,025,489 4,975,762 Trade and other receivables 4,467,883 3,788,522 Other current financial a
Slide 14: Condensed Consolidated Statement of Changes in Equity
Equity Trustees Limited Condensed Consolidated Statement of Changes in Equity for the half-year ended 31 December 2010 Reserves Fully paid Investment Capital Equity Retained Total Equity ordinary revaluation profit & settled earnings shares General benefits $ $ $ $ $ $ For personal use only Balance
Slide 15: Condensed Consolidated Statement of Cash Flows
Equity Trustees Limited Condensed Consolidated Statement of Cash Flows for the half-year ended 31 December 2010 For personal use only Consolidated Half-year ended Half-year ended 31-Dec-10 31-Dec-09 Notes $ $ Cash flows from operating activities Receipts from customers 19,411,028 18,665,608 Payments
Slide 16: Notes: Summary of accounting policies
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for half-year ended 31 December 2010 1. Summary of accounting policies Statement of compliance For personal use only The half-year financial report is a general purpose financial report prepared in accordance with the C
Slide 17: Notes: Dividends and acquisition of businesses
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half-year ended 31 December 2010 Half-year ended Half-year ended 31-Dec-10 31-Dec-09 Cents per Cents per share $ share $ For personal use only 2. Dividends Recognised amounts Fully paid ordinary shares Final div
Slide 18: Notes: Acquisition of businesses (cont'd)
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half-year ended 31 December 2010 3. Acquisition of businesses (cont'd) Net cash outflow arising on acquisition $ Consideration paid in cash 10,782,509 For personal use only less cash and cash equivalent balances
Slide 19: Notes: Segment information
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half-year ended 31 December 2010 7. Segment information AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief
Slide 20: Independent Auditor's Review Report
Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melbourne VIC 3001 Australia DX: 111 Tel: +61 3 9671 7000 For personal use only Fax: +61 3 9671 7001 www.deloitte.com.au Independent Auditor’s Review Report to the Members of Equity Trustees Limited We have r
Slide 21: Conclusion
Conclusion Based on our review, which is not an audit, we have not become aware of any matter that For personal use only makes us believe that the half-year year financial report of Equity Trustees Limited is not in accordance with the Corporations Act 2001, 2001 including: (a) giving a true and fai
Slide 22: Half Year Results to December 2010
For personal use only Equity Trustees Limited Half Year Results to 31 December 2010
Slide 23: Overview
Overview For personal use only ¾ H1 results show positive movement emerging post GFC. ¾ Equity markets are still a major factor in turnaround. ¾ OSL acquisition highly complementary, adds scale, EPS+ve immediately. ¾ Revenue growth 10.5% vs. PCP. ¾ Expenses include one-off acquisition costs, 2010 re
Slide 24: Overview – group results
Overview – group results Half Year For personal use only Half Year 31 Dec 2010 31 Dec 2009 $m $m Change Operating revenue 18.7 16.9 10.5% Operating expenses (13.7) (12.0) 13.3% Operating profit before tax 5.0 4.9 3.3% Income tax expense 1.5 1.5 Operating profit after tax 3.5 3.4 3.6% Net profit from
Slide 25: Operating results
Operating results For personal use only Operating revenue up 10.5% to $18.7m Operating expenses increase 13.3% to $13.7m Investment income ($m) $18.6m $18.7m Depreciation ($m) $13.7m Business unit revenue ($m) $18.1m 0.4 Operating overheads ($m) 0.6 0.6 $16.9m 0.5 0.4 $12.0m $12.0m $15.8m $11.6m 0.5
Slide 26: Operating revenue - composition
Operating revenue - composition For personal use only Group operating revenue up 10.5% to $18.7m $18.6m $18.7m Investment income ($m) 0.6 $18.1m 0.4 0.6 $16.9m Change – 2011 vs 2010 ($m) Business units ($m) 0.4 $15.8m 0.5 (0.05) +0.8 $11.6m +0.4 0.7 +0.15 Superannuation $9.4m +0.5 Fund 18.7 $8.4m 0.
Slide 27: All Ordinaries Index Year on Year Comparison
All Ordinaries Index Year on Year Comparison For personal use only All Ordinaries Index Year on Year - FY08/09, FY09/10, YTD 22 Feb - FY10/11 5500 5000 4500 4000 3500 3000 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun All Ords 2010/11 All Ords 2009/10 All Ords 2008/9 Trusted since 1888 6
Slide 28: Expense analysis
Expense analysis For personal use only Expenses increased $1.6m (13.3%) compared to pcp: ¾ Salaries up due to catch up pay increases (nil increase in 2009) and extra sales focused roles. ¾ Additional temporary staff to support projects. ¾ Acquisition costs for OSL. ¾ OSL operating costs – 2 months.
Slide 29: Profitability
Profitability For personal use only Operating profit (pre-tax) Net profit (post-tax) 7.3 2nd half 2nd half 1st half 1st half 4.8 5.9 5.9 5.5 4.5 3.9 4.3 4.0 7.0 3.3 2.3 6.1 5.2 4.9 5.0 1.7 5.1 1.9 1.4 4.1 3.6 3.7 3.7 2.6 1.9 1.7 1.9 1.2 1.4 2004 2005 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007
Slide 30: Operating revenue - composition
Operating revenue - composition For personal use only ¾ An even spread of revenue across business units $18.6m $18.7m 2% 3% $18.1m 4% Investment income $16.9m Superannuation 3% 19% $15.8m 26% Fund Services 3% 24% Funds Management 24% 17% Private Clients 25% $11.6m 6% 24% 22% 24% 24% 18% $9.4m 4% $8.
Slide 31: Earnings per share
Earnings per share For personal use only 133.35 105.18 Weighted average shares on issue (‘000) Half year 98.45 96.6 Full year 8,441 8,085 8,291 7,880 69.94 7,710 64.48 52.98 50.86 7,089 45.52 47.35 44.23 43.85 A capital raising in late 2005 increased the number of shares on issue by 14.8% 6,373 26.7
Slide 32: Returns to shareholders
Returns to shareholders For personal use only Fully-franked dividends Final (cps) Interim (cps) 60 60 60 Strategic decision to maintain interim dividend at prior year level. This reflects: ¾ Confidence in the prospects of the business including recent acquisition 45 ¾ Ongoing strong cash flow genera
Slide 33: Balance sheet
Balance sheet For personal use only ¾ Strong net asset base. Nil debt. $53.9m $54.3m $52.9m $52.0m $44.4m $36.4m ¾ No impairment charges on past acquisitions $21.6m $16.5m 05 06 07 08 09 10 10 4 00 20 20 20 20 20 20 20 /2 6/ 6/ 6/ 6/ 6/ 6/ 2/ 06 /0 /0 /0 /0 /0 /0 /1 0/ 30 30 30 30 30 30 31 '3 Truste
Slide 34: Sustained share price outperformance
Sustained share price outperformance For personal use only 800 Compound 7.5 years 5 years 1 year growth p.a. (from 1 (from 1 (from 1 Jul 2003) Jan 2006) Jan 2010) EQT Total Shareholder 700 Return EQT Total ¾ Assumes all dividends are Shareholder 21.2% 9.3% ( 5.9%) reinvested. Return 600 S&P/ASX 200
Slide 35: Business units – operations & performance
Business units – operations & performance For personal use only 6 months to 6 months to Business unit Key services Target market 31/12/10 31/12/10 Revenue FUM Private Clients ¾ Wealth Management Private investors $4.7m $1,354m ¾ Personal Superannuation +10.5% +4.5% ¾ Asset Management ¾ Trusts & Esta
Slide 36: Business unit overview - Private Clients
Business unit overview - Private Clients For personal use only Operating revenue Consistent revenue performance Assets under management resulting from sales focus – growth in client base 1,407 1,479 4.9 1,295 1,354 4.7 4.7 1,260 4.0 4.3 1,093 1,091 994 2.8 2.9 2.9 2004 2005 2006 2007 2008 2009 2010
Slide 37: Business unit overview – Funds Management
Business unit overview – Funds Management For personal use only Operating revenue Funds under management 5.2 2,447 4.7 2,266 4.3 4.1 4.2 2,181 1,973 3.6 3.0 3.1 1,620 1,180 863 659 2004 2005 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007 2008 2009 2010 2011 Diversified across major asset classes
Slide 38: Business unit overview - Fund Services
Business unit overview - Fund Services For personal use only Operating revenue Funds under administration 16,631 15,527 4.6 4.4 4.4 14,316 4.0 12,802 3.5 11,210 2.4 8,015 5,350 1.4 0.9 3,298 2004 2005 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007 2008 2009 2010 2011 • Good demand for new RE role
Slide 39: Business unit overview - Superannuation
Business unit overview - Superannuation For personal use only Operating revenue Funds under management Impact of acquisitions 940 4.9 4.4 4.1 622 3.5 615 434 565 2.6 375 2.0 1.4 1.6 162 132 2004 2005 2006 2007 2008 2009 2010 2011 2004 2005 2006 2007 2008 2009 2010 2011 • Acquisition of OSL effective
Slide 40: Revenue & FUM comparison
Revenue & FUM comparison For personal use only Operating revenue Funds under management $18.6m $18.7m $21.2b Investment Income $18.1m Despite market $20.1b Superannuation $16.9m volatility, revenue Fund Services & FUM compare $18.4b $15.8m Funds Management well against prior Private Clients correspo
Slide 41: Recent acquisition – OSL Superfund
Recent acquisition – OSL Superfund For personal use only ¾ Further step growth into Super ¾ 27,000 members ¾ $265m FUM ¾ Cost $10.8 million – funded from internal resources ¾ Bolt-on to existing master trust – currently well advanced ¾ Earnings accretive, 1 November 2010 ¾ Full synergy benefits emer
Slide 42: Business update
Business update For personal use only Strategic options ¾ Good organic growth potential in business lines. Deeper participation in wealth management sector remains an opportunity. Industry changes likely to be positive for EQT. ¾ Focus moving from internal to external initiatives as recovery from GF
Slide 43: Summary and outlook
Summary and outlook For personal use only The EQT Group: ¾ Positive trend in revenue as new business opportunities crystallise and relative stability and optimism return to investment markets. ¾ All business lines are profitable and have good organic growth prospects. Margins healthy. ¾ Investment i
Slide 44: For personal use only
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 should not take