Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — H1 FY2008 Earnings Presentation
42 slides from Eqt's earnings presentation, Feb 26, 2008
Slide 1: Equity Trustees confirms strong first half result
26 February 2008 For personal use only Equity Trustees confirms strong first half result Equity Trustees Limited (ASX: EQT) today confirmed its first half financial results, which are in line with the company’s previous guidance. Net profit after tax increased 39% based on a 33% increase in after-ta
Slide 2: Full-year earnings forecast and contact
“Subject to there being no further significant market corrections we forecast full- For personal use only year earnings after tax (inclusive of investment gains) to increase by approximately 30%.” “We are mindful of the impact of market volatility but we are well diversified across a range of servic
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 2007 RESULTS FOR ANNOUNCEMENT TO THE MARKET 31 Dec 07 31 Dec 06 $ '000 $ '000 Revenue from ordinary activities 18,988 Up 20.2% Fr
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 2007. 31 Dec 07 31 Dec 06 Net tangible asset backing / per share 2.93 2.50 For personal use only Net tangible asset backing per share,
Slide 5: Consolidated Half-Year Financial Report 31 December 2007
For personal use only Equity Trustees Limited ABN 46 004 031 298 Consolidated Half-Year Financial Report for the half-year ended 31 December 2007
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 Balance Sheet 7 Condensed Consolidated Statement of Changes in Equity 8 Condensed Consoli
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.2007. In order to comply with the provis
Slide 8: Directors' Report (cont'd)
Equity Trustees Limited [ABN 46 004 031 298] Directors' Report (cont’d) For personal use only Auditor’s Independence Declaration The Auditors' Independence Declaration is included on page 4 of the half-year financial report. Signed in accordance with a resolution of the directors made pursuant to se
Slide 9: Auditor's Independence Declaration
- Deloitte pee ori e ABN 74 490 121 060 180 Lonsdale Street Melbourne VIC 3000 GPO Box 78B Melbourne VIC 3001 Australia 0x 111 Tel: +61 (0) 3 9208 7000 . Fax: +61 (0) 3 9208 7001 The Board of Directors www.deloitte.com.au Equity Trustees Limited 575 Bourke Street MELBOURNE VIC 3000 26 February 2008
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 For personal use only debts as and when they become due and payable; and 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 2007 Consolidated Half-year ended Half-year ended 31-Dec-07 31-Dec-06 For personal use only Notes $ $ Continuing operations Revenue 17,912,214 15,250,419 Other revenue 1,075,429 552,417 Total revenue
Slide 12: Condensed Consolidated Balance Sheet
Equity Trustees Limited Condensed Consolidated Balance Sheet for the half-year ended 31 December 2007 Notes Consolidated 31-Dec-07 30-Jun-07 $ $ For personal use only Current assets Cash and cash equivalents 1,209,755 1,051,510 Trade and other receivables 5,713,516 4,830,215 Prepaid expenses 734,229
Slide 13: Condensed Consolidated Statement of Changes in Equity
Equity Trustees Limited Condensed Consolidated Statement of Changes in Equity for the half-year ended 31 December 2007 Reserves Fully paid General Investment Capital Retained Equity ordinary revaluation profit earnings settled shares benefits $ $ $ $ $ $ Balance at 1 July 2006 26,122,159 1,500,000 3
Slide 14: Condensed Consolidated Cash Flow Statement
Equity Trustees Limited Condensed Consolidated Cash Flow Statement for the half-year ended 31 December 2007 Consolidated Half-year ended Half-year ended For personal use only 31-Dec-07 31-Dec-06 Notes $ $ Cash flows from operating activities Receipts from customers 19,364,705 16,143,138 Payments to
Slide 15: Notes to the Condensed Consolidated Financial Statements
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for half-year ended 31 December 2007 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 16: Notes: Dividends and Acquisition of businesses
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half-year ended 31 December 2007 Half-year ended Half-year ended 31-Dec-07 31-Dec-06 For personal use only Cents per share $ Cents per share $ 2. Dividends Recognised amounts Fully paid ordinary shares Final div
Slide 17: Notes: Acquisition of businesses (cont'd)
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half-year ended 31 December 2007 3. Acquisition of businesses (cont'd) For personal use only Goodwill arose on the acquisition of TSM because the acquisition price included amounts relating to the benefit of exp
Slide 18: Notes: Segment information
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half-year ended 31 December 2007 6. Segment information For personal use only Half-year ended 31-Dec-07 31-Dec-06 $ $ Segment revenues Funds Management 8,575,337 6,803,429 Trustee Services and Responsible Entity
Slide 19: Independent Auditor's Review Report
= De ] Ol tte Deloitte Touche Tohmatsu e ABN 74 490 121 060 180 Lonsdale Street Melbourne VIC 3000 GPO Box 78B Melbourne VIC 3001 Australia DX 111 Tel: +61 (0) 3 9208 7000 Fax: +61 (0) 3 9208 7001 www.deloitte.com.au Independent Auditor’s Review Report to the Members of Equity Trustees Limited Repor
Slide 20: Auditor's Review Report conclusion
Deloitte. Auditor’s Independence Declaration In conducting our review, we have complied with the independence requirements of the Corporations Act 2001. Conclusion Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial re
Slide 21: Half Year Results to December 2007
1 For personal use only Equity Trustees Limited Half Year Results to 31 December 2007
Slide 22: Equity Trustees
2 Equity Trustees For personal use only An independent Australian based Trusted since 1888 financial services firm that is increasing its market presence and generating improved returns. Our performance is based upon: ¾ Well developed revenue streams ¾ Clear performance indicators ¾ An established g
Slide 23: Strategic direction
3 Strategic direction For personal use only 2004 2005/06 2006/07 Æ Trusted since 1888 Recovery Organic Step Growth Growth Cultural change. Improvement in Improvement in processes profit margins enabling better Development of appropriate through quality business. marketing, merger and efficiency gain
Slide 24: Half year overview
4 Half year overview For personal use only 2008 2007 Trusted since 1888 Group operating revenue $18.6m $15.8m + 18.0% Group operating expenses ($11.6m) ($10.6m) + 9.9% Group operating profit (before-tax) $7.0m $5.2m + 34.1% Income tax expense ($2.2m) ($1.6m) Group operating profit (after-tax) $4.8m
Slide 25: Revenue up, expenses controlled
5 Revenue up, expenses controlled For personal use only 35 $m 35 $m Operating revenue up 18% Operating expenses up 9.9% Trusted since 1888 30 30 2nd Half 2nd Half 25 1st Half 25 1st Half 16.6 20 20 13.2 10.7 15 10.4 15 9.2 8.5 18.6 8.1 10 10 6.5 15.8 11.6 11.6 10.6 5 9.4 5 9.0 8.3 7.2 7.5 0 0 2004 2
Slide 26: Profitability is up
6 Profitability is up For personal use only 12 $m 12 $m Operating profit before tax Net profit after tax up 39.2% up 34.1% Trusted since 1888 10 10 2nd Half 2nd Half 1st Half 1st Half 5.9 8 8 6 6 4.5 4.0 7.0 4 4 3.3 5.0 2.3 5.2 1.7 2 2.0 2 1.5 3.6 2.6 1.9 1.9 1.7 1.1 1.3 0 0 2004 2005 2006 2007 2008
Slide 27: Return to shareholders is up
7 Return to shareholders is up For personal use only 80 ¢ Trusted since 1888 Dividends up 66.7% 70 • Dividend payout ratio is Final at mid-point of stated 60 Interim target range – being 70- 50 45 90% of operating profit after tax (incl after-tax 40 gains on sale of 30 investments) 30 50 25 • Divide
Slide 28: Reflected in total shareholder return
8 Reflected in total shareholder return For personal use only 800,000 $100,000 invested in Equity Trustees shares on 1 July 2003 would be worth around $530,000 in February 20081 Trusted since 1888 700,000 600,000 500,000 EQT S&P/ASX200 Accumulation Index 400,000 300,000 200,000 100,000 0 03 03 03 04
Slide 29: Well diversified revenue streams
9 Well diversified revenue streams For personal use only Corporate superannuation: Sales & marketing + product management for Trusted since 1888 • Wealthpac EQT co-branded funds • Templetons managed by external • Freedom of Super- specialists Choice annuation Funds 19% Management 29% Fund Services 2
Slide 30: Consistent business unit contribution
10 Consistent business unit contribution For personal use only Contribution reflects share of operating revenue Trusted since 1888 100% Acquisition benefit 17% 17% Super- 90% 19% 19% 19% annuation not reflected in half year revenue result 80% 12% 18% 70% 23% 25% Continued strong RE 26% Fund Services
Slide 31: Funds Management
11 Funds Management For personal use only 10.0 $m 2,500 Operating revenue up 21% $m FUM up 16% (half year) 9.0 2,326 Trusted since 1888 8.0 2,000 2nd Half 1st Half 2,002 7.0 4.7 6.0 1,500 3.9 5.0 1,414 3.4 2.9 4.0 1,000 5.2 989 3.0 4.3 2.0 3.6 500 618 3.0 3.0 1.0 0.0 0 2004 2005 2006 2007 2008 Jun-2
Slide 32: Asset class diversity
12 Asset class diversity For personal use only EQT co-branded funds by asset class Trusted since 1888 100% • Diversified 19% across major 90% 20% Listed 22% 22% property asset classes 80% 37% 70% 23% 23% Cash & • Growth in 30% 60% 33% fixed interest global equities 50% 30% 13% 2% 9% 19% Global • Ong
Slide 33: Private Clients
13 Private Clients For personal use only 11 $m Operating revenue down 4% 1,800 $m AUM down 0.7% (half year) 10 1,600 Trusted since 1888 9 2nd Half 1,400 1,490 1,479 8 1st Half 1,200 1,303 7 4.4 6 1,000 1,128 998 5 800 3.0 3.2 4 2.5 600 3 4.7 4.9 400 2 2.7 2.9 2.9 200 1 0 0 2004 2005 2006 2007 2008 J
Slide 34: Asset management capability
14 Asset management capability For personal use only EQT Flagship Fund EQT Charitable Balanced Fund Australian equity fund seeking franked A balanced fund exclusively for Trusted since 1888 income streams charitable investors ¾ A concentrated portfolio of ¾ Fund of funds model investing S&P/ASX200 s
Slide 35: Fund Services
15 Fund Services For personal use only 9 $m 18,000 $m Operating revenue up 31% FUA up 12% (half year) 8 16,000 Trusted since 1888 7 2nd Half 14,000 15,471 1st Half 13,845 6 12,000 4.2 5 10,000 11,086 4 3.2 8,000 7,401 3 4.6 6,000 1.7 2 4,000 3.5 1.2 4,250 1 2.4 2,000 1.4 0.9 0 0 2004 2005 2006 2007
Slide 36: Superannuation
16 Superannuation For personal use only 6 $m 700 $m Operating revenue up 35% FUM up 3% (half year) 653 Trusted since 1888 600 635 5 2nd Half 1st Half 500 4 2.7 400 2.4 3 400 300 1.8 319 1.5 3.5 2 200 2.6 1 2.0 100 149 1.4 1.6 0 0 2004 2005 2006 2007 2008 Jun-2004 Jun-2005 Jun-2006 Jun-2007 Dec-2007
Slide 37: Impact of January volatility
17 Impact of January volatility For personal use only $m $m $m $m 2,326 1,479 653 15,471 2,165 1,395 14,946 Trusted since 1888 596* Funds Private Fund Super- Management Clients Services annuation FUM down FUA down AUM down FUM down 6.9% 5.7% 3.7% 8.7% Dec-2007 Jan-2008 Dec-2007 Jan-2008 Dec-2007 Jan
Slide 38: Support services
18 Support services For personal use only • Continuing to invest in business Trusted since 1888 • Right people, right systems to match business requirements • Marketing activity lifting profile • IT projects delivering scale & efficiency • Process improvement in all business lines • Acquisition acti
Slide 39: Outlook
19 Outlook For personal use only • Market movements will affect performance. A Trusted since 1888 cautious approach to business and risk management ensures that we are relatively well placed in volatile markets • All business units have well established revenue streams • Investment in people, system
Slide 40: Forecast
20 Forecast For personal use only Assuming no further significant market corrections: Trusted since 1888 • Post-tax earnings (inclusive of investment gains) forecast to increase by around 30%
Slide 41: Summary
21 Summary For personal use only • Strong first half performance with solid base for full Trusted since 1888 year result • Margin growth reflects efficiency • Acquisitions (in superannuation business unit) proceeding well with revenue benefit to follow • Cautious about market volatility but well pos
Slide 42: For personal use only
EO ‘[rustees Trusted since 1888