Eqt Holdings Ltd. · ASX:EQT
Eqt — Investor Presentation (April 2024)
107 slides from Eqt's investor presentation, Apr 11, 2024
Slide 1: EQT Holdings Limited Investor Briefing
EQT HOLDINGS LIMITED INVESTOR BRIEFING FOUNDATIONS FOR SUCCESS Sydney – Sofitel Sydney Wentworth 11 April 2024
Slide 2: Agenda
AGENDA Introduction Q3 Financial update Trustee Wealth Services (TWS) Corporate & Superannuation Trustee Services (CSTS) People – our greatest asset Risk management – our core capability Technology – major developments on track Outlook & conclusion 2
Slide 3: Introduction
INTRODUCTION Mick O’Brien Managing Director
Slide 4: About Us
ABOUT US Established 1888 $183.8b 2 in assets #5 in Australia 3 146 years young! 1 498 Market Capitalisation $770m 4 Staff Protecting over Supporting over 850,000 200 HQ in Melbourne beneficiaries, Fund managers, super fund Presence in Sydney, Perth, members and providers and corporates Adelaide and
Slide 5: EQT specialises at the apex of the wealth value chain
EQUITY TRUSTEES SPECIALISES AT THE APEX OF THE WEALTH VALUE CHAIN Trusteeship Asset Administration / Advice Custody Management Registry • Fit for purpose trustee • Cross sell to TWS • Service provided for • Not provided to the investment clients real assets only1 market management • Older client bas
Slide 6: Significant out-performance
SIGNIFICANT OUT-PERFORMANCE 250 EQT +122% +175% inc. dividends 200 ASX 200 +54% +112% inc. dividends 150 100 03/2016 09/2016 03/2017 09/2017 03/2018 09/2018 03/2019 09/2019 03/2020 09/2020 03/2021 09/2021 03/2022 09/2022 03/2023 09/2023 03/2024 Establishing the foundations New businesses originated
Slide 7: Consistent growing dividends
CONSISTENT GROWING DIVIDENDS Cents 100 99 97 90 90 91 90 82 1H24 80 51 cents 71 68 70 60 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 Maintained dividend in covid impacted year 7
Slide 8: Our purpose and vision
Our purpose is to help people take care of their future Our vision is to be Australia’s leading trustee company
Slide 9: Our values are the core of who we are
OUR VALUES ARE THE CORE OF WHO WE ARE Trust is earned TRUSTED ACCOUNTABLE EMPOWERING Trusteeship is a privilege and requires accountability We strive to empower clients and our employees 9
Slide 10: T4 targets: balancing stakeholder needs
T4 TARGETS: BALANCING STAKEHOLDER NEEDS IS THE KEY TO OUR SUCCESS T1 T2 T3 T4 Improving Lifting Growing Deepening client employee shareholder community satisfaction engagement value impact Our clients are Our goal is to have Clients are best We are proud of the surveyed every year highly engaged and
Slide 11: Our four key assets provide a competitive advantage
OUR FOUR KEY ASSETS PROVIDE A COMPETITIVE ADVANTAGE People Licences Brand Balance sheet • Experienced • No other Australian • 136 years • Low gearing at specialists in all company has our • Synonymous with 11.5%1 aspects of trusteeship suite of trustee ‘trust’ • Cash, liquid assets, • Industry leade
Slide 12: Trusted by major financial institutions & clients
TRUSTED BY MAJOR FINANCIAL INSTITUTIONS & CLIENTS Australian fund Global fund Superannuation Charitable managers managers providers foundations & community trusts & 12
Slide 13: Experienced Board of Directors
EXPERIENCED BOARD OF DIRECTORS CAROL SCHWARTZ AO Chair 4 years KEVIN J ELEY D. GLENN SEDGWICK CATHERINE ROBSON MICK O’BRIEN Independent Director Independent Director Independent Director Managing Director 12 years 7 years 4 years 8 years TIM HAMMON KELLY O’DWYER ROBERT DALTON Independent Director In
Slide 14: Refreshed experienced leadership team
REFRESHED EXPERIENCED LEADERSHIP TEAM MICK O’ BRIEN Managing Director 8 years MORGAN LONGLEY Executive Assistant ANDREW GODFREY GEORGIE TAYLOR IAN WESTLEY PHILIP GENTRY PHING LEE Executive General Manager, Executive General Executive General Chief Financial Officer Chief Technology Corporate & Super
Slide 15: Market leadership positions
MARKET LEADERSHIP POSITIONS PRIVATE CLIENT BUSINESSES CORPORATE & SUPERANNUATION TRUSTEE SERVICES TRUSTEE & WEALTH SERVICES CORPORATE • Philanthropy – Leading provider • Responsible Entity Services – long term clear leader • Health & Personal Injury – Leading provider • Custody & Real Assets – build
Slide 16: Increasingly diversified business revenue
INCREASINGLY DIVERSIFIED BUSINESS REVENUE CSTS - Corporate Group Trustee Wealth Services Investment Mandates UK & 3% Ireland PCT - Co-Trustee Debt & Sec 2% CSTS – Super 4% 1% 18% Custody & Trustee Continuing Trusts Real Assets CSTS - Wealth 8% 1% Corporate Services 23% 59% Health & Personal Injury P
Slide 17: Client concentration is limited
CLIENT CONCENTRATION IS LIMITED TOTAL NO. OF # CSTS – REVENUE # TWS # CSTS - SUPER CLIENTS CORP Greater than 1% of Group Revenue 7 2 2 3 (~$1.7m) 0.5% to 1% of Group Revenue (~$0.85m 16 5 7 4 - $1.7m) Total 23 7 9 7 Underlying client concentration within CSTS - Corporate portfolio • 18 Managed Inves
Slide 18: Client turnover is very low
CLIENT TURNOVER IS VERY LOW SUBJECT TO BUSINESS UNIT POTENTIAL FUNDS OTHER REASONS FOR LOSS OUTFLOW CSTS • Superannuation1 Voluntary retirement by EQT2 or SFT3 • Funds Services1 Voluntary retirement by EQT and requires unitholder vote • Debt and Securitisation Maturity of loan • Custody and
Slide 19: Summary
SUMMARY Our focused specialist strategy is crystal clear and is delivering results The Leadership team have consistently executed on our plans Client satisfaction and employee engagement is high We are very focused on delivering over the next two-three years and beyond 19
Slide 20: Q3 Financial Update
Q3 FINANCIAL UPDATE Philip Gentry Chief Financial Officer & Chief Operating Officer
Slide 21: Long-term upward FUMAS trend
LONG-TERM UPWARD FUMAS TREND UNDERPINNING STRONG ORGANIC GROWTH MOMENTUM $b TOTAL EQT FUMAS1 200 194.7 183.5 180 160 160.1 • FUMAS up 6.1% on 31 144.2 148.9 December to $194.7b 140 • Significant new business activity in both TWS and 120 CSTS 101.0 100 • Discontinued & discontinuing 86.2 84.9 operati
Slide 22: All businesses contributing to FUMAS growth
ALL BUSINESSES CONTRIBUTING TO FUMAS GROWTH $b CSTS – CORPORATE FUS1 CSTS – SUPERANNUATION FUS1 $b 120 112.4 66 106.4 64.3 110 64 100 90 62 80 59.8 60 70 58 60 50 5.3 56 1H24 31/03/24 1H24 31/03/24 Discontinued operations (UK/Ireland) $b TWS FUMAS2,3 ASSET MANAGEMENT – FUM4,5 $b 20 7 18.0 18 17.3 6
Slide 23: AET integration – delivery on track
AET INTEGRATION – DELIVERY ON TRACK MILESTONES COMPLETED Q4 2023 EXIT OF THE PLATFORM BUSINESS MILESTONES Q3 FY24 Q4 FY24 NOV 2024 • SAF administration migrated to • Establish outsource SAF new administrator • Agreement to outsource administration operating model SAF administration • Custody of all
Slide 24: Overall synergies target increased
OVERALL SYNERGIES TARGET INCREASED & IMPLEMENTATION COSTS ON TRACK NET COST SYNERGIES REVENUE SYNERGIES IMPLEMENTATION COSTS CAPITAL RELEASE Targeted amount $2.9m p.a ($3.5m p.a.) $5.8m p.a. ($3.3m p.a.) $22m ($22m) $10m (nil) Timing Achieve run-rate in FY25 $0.4m in FY23 Across FY23, FY24 & 1H25 Ex
Slide 25: EQT's revenues are leveraged to equity markets
EQT’S REVENUES ARE LEVERAGED TO EQUITY MARKETS AS FEES LARGELY ASSET-BASED 1H24 TOTAL FUMAS PROXY LEVERAGE Leverage correlation to market levels REVENUE1 AS AT 1H24 is dependent on: • Mix of asset-based fees and non- TWS $48.7m $17.6b 50%-60% to average daily ASX 200 asset based “fixed” fees CSTS –
Slide 26: Trustee Wealth Services
TRUSTEE WEALTH SERVICES Ian Westley Executive General Manager, Trustee & Wealth Services
Slide 27: Trustee Wealth Services – leadership team
TRUSTEE WEALTH SERVICES – LEADERSHIP TEAM IAN WESTLEY Executive General Manager, Trustee Wealth Services 17 years JO MAHONEY Manager, Office of TWS 11 years ERIC BYLSMA AARON TUNKS JODI KENNEDY RAVI MALHOTRA General Manager, Technical General Manager, Private Trustee General Manager, Philanthropy Ge
Slide 28: TWS services
TWS SERVICES Traditional trustee services Contemporary trustee & other services Estate Planning Health & Personal Injury Estate Management Active Philanthropy Continuing (Testamentary) Trusts Native Title & Community Trusts Perpetual Charitable Trusts Financial Advice Investment Mandates 28
Slide 29: TWS positioned to benefit from changing demographics
TWS POSITION TO BENEFIT FROM CHANGING AUSTRALIAN DEMOGRAPHICS Acting as a fiduciary underpins all our private client trustee services with our growth to be supported by The over 80s being the fastest growing The government’s stated objective to population cohort double philanthropic giving by 2030 I
Slide 30: Impact of AET acquisition
IMPACT OF AET ACQUISITION • Scale in all markets • Strong presence in all mainland states Legend: AET EQT TWS * Depicts FUMAS & staff spread at the time of acquisition (1 December 2022) 30
Slide 31: Traditional trustee services
TRADITIONAL TRUSTEE SERVICES LIFE CYCLE OF TRUSTEE SERVICES Perpetuity Single years to multi decades Average 15 years Asset Management Average 9 months up to 2 years Philanthropic Trust Management Estate Estate Planning Will Bank Management Continuing Trust Management Will bank contains ~200,000 wil
Slide 32: Client lifecycle & cross sell opportunity
CLIENT LIFECYCLE & CROSS SELL OPPORTUNITY Asset Management Philanthropic Trust Management Estate Continuing Trust Estate Planning Will Bank Management Management Asset Management Advice 32
Slide 33: Complexity of traditional business
COMPLEXITY OF TRADITIONAL BUSINESS • Long lead time from Estate Planning to Estate Management • Not dealing with actual client beyond Estate Planning • Unique skill set required to manage client base • No other business provides all these services Business Unit Team Size Estate Planning 19 Generatio
Slide 34: Leading market positions in traditional trustee business
LEADING MARKET POSITIONS IN TRADITIONAL TRUSTEE BUSINESS Client # FUM Asset Tenure Management Estate Planning 200,000 in Willbank N/a N/a 15 years Estate Management 525 $472m N/a Up to 2 years On average 20- Continuing Trusts 1,123 $1,258m Yes 30 years Perpetual Charitable Trusts 712 $2,628m Yes In
Slide 35: The future of philanthropy
THE FUTURE OF PHILANTHROPY Two segments to market • Invested in technology for growth • Perpetual Charitable Trusts − iPhi technology has supported the growth of the DAF − Granted over $120m in FY23 market in the US − 2019 DAF1 giving has more than doubled in 5 years. − Deep sector knowledge Increas
Slide 36: Native title overview
NATIVE TITLE OVERVIEW • Every client is unique although # clients by location 2 underlying structures are either ~$750 million funds on behalf of 3 − Charitable Trusts traditional owner groups − Direct Benefit Trusts 2 5 • 16 employees with deep understanding of Native Title We partner with market m
Slide 37: Health & personal injury overview
HEALTH & PERSONAL INJURY OVERVIEW 5-10 years + EQT appointed as Trustee / Financial Manager (Typically invested in Superannuation) Referrals from personal injury lawyers • Lawyers have strong relationships with client due to length of time to compensation • Both lawyers and clients need to have high
Slide 38: Health & personal injury overview
HEALTH & PERSONAL INJURY OVERVIEW # employees in Our team has great each office experience, scale and presence in all states Clients have unique needs 7 • Recruitment is difficult; 9 empathy, resilience, 3 prepared to make hard decisions 8 • Clients prefer local support Client # FUM Tenure Asset Man
Slide 39: Group dedicating more resources to business development
THE GROUP IS DEDICATING MORE RESOURCES TO BUSINESS DEVELOPMENT Business Development Business Unit Team Size Team Average tenure Estate Planning H&PI Philanthropy 6 9 19 27 20 Total years of industry experience Native Title Trusts Continuing Trusts Estate Management 142 16 12 21 Networks • Legal prof
Slide 40: Summary – use of asset management capability
SUMMARY – USE OF ASSET MANAGEMENT CAPABILITY Business Unit FUM Allocation to Asset Management Continuing Trusts $503m High Perpetual Charitable Trusts $746m High Advice $799m Low Health & Personal Injury $4,066m Low Active Philanthropy $2,628 Medium Native Title Trusts $1,258 Low 40
Slide 41: Summary – long duration business
SUMMARY – LONG DURATION BUSINESS BUSINESS UNIT FUM DURATION COMMENT CAPITAL ACCESS Estate Planning N/A 15 years At Point of Sale N/A Up to 2 Varies between 6 and 24 Estate Management $472m Fully years months 20-30 years Considerable variation in Continuing Trust $1,258m Not generally on average desi
Slide 42: Summary
SUMMARY Great talent Diversified revenue lines Long tenure clients Low client concentration risk Favourable societal demographic Business requires long-term focus trends and investment to be successful New market opportunities powered Strong market positions by technology being developed 42
Slide 43: Corporate & Superannuation Trustee Services
CORPORATE & SUPERANNUATION TRUSTEE SERVICES Andrew Godfrey Executive General Manager, Corporate & Superannuation Trustee Services
Slide 44: CSTS – leadership team
CSTS – LEADERSHIP TEAM ANDREW GODFREY Executive General Manager, Corporate & Superannuation Trustee Services 1 year KAREN COURT Executive Assistant 3 years DAVID WARREN JOHNNY FRANCIS JAMES CONNELL CRISTINA STAREK MARY O’CONNOR RUSSELL BEASLEY TBC* General Manager, General Manager, General Manager,
Slide 45: CSTS ~$170B across 520+ funds/accounts
CSTS ~$170B ACROSS 520+ FUNDS/ACCOUNTS Vision: To be the leading premium provider of corporate and superannuation trustee services in Australia: • Delivering optimal outcomes for members/unitholders and • Being the independent trustee of choice CTS STS Clients Local & international investment manage
Slide 46: Trusted by major financial institutions & clients
TRUSTED BY MAJOR FINANCIAL INSTITUTIONS & CLIENTS Australian fund Global fund Superannuation managers managers providers & 46
Slide 47: Unrivalled access to more than 50 third party service providers
UNRIVALLED ACCESS TO MORE THAN 50 THIRD PARTY SERVICE PROVIDERS UNIT REGISTRY / CUSTODIANS AUDITORS ADMINISTRATION EXCHANGES & INSURERS MARKET MAKERS PRIME BROKERS
Slide 48: CSTS – Superannuation – deep expertise
CSTS – SUPERANNUATION – DEEP EXPERTISE Superannuation Services Fund Services Debt & Securitisation Services, Custody & Real Assets Team Average tenure Team Average tenure Team Average tenure 39 3.8 52 4.0 7 3.7 Average years of industry experience Average years of industry experience Average years o
Slide 49: CSTS – Superannuation
CSTS – SUPERANNUATION
Slide 50: About Us
ABOUT US CSTS – Superannuation is Australia’s GROWTH IN BUSINESS leading specialist, independent superannuation trustee with capabilities $70B 15 15 14 900,000 14 that can be scaled and leveraged across $60B 800,000 multiple fund types using a common 12 11 700,000 infrastructure. $50B 600,000 Member
Slide 51: About Us (continued)
ABOUT US (CONTINUED) FUS by product type ($b) Members by product type $.41b $0.7b 651 4 funds 155,000 210,000 $13.3b 6 funds $36.5b 4 funds 423,000 Platform Master Trust Legacy * SAFs Platform Master Trust Legacy * SAFs * Legacy: Closed funds running off 51
Slide 52: At the centre of the wealth value chain
AT THE CENTRE OF THE WEALTH VALUE CHAIN Superannuation structure Client Promoter / Originator Superannuation Trustee APRA / RSE Licensee Fund Financial Fund Managers Insurers administrator Statement Auditor Fund / Members Custodian / Advisors Asset Consultant Call Centre Prime Broker 52
Slide 53: Our value proposition
OUR VALUE PROPOSITION Assisting fund promoters • Material reduction in risk for the fund promoter through an unconflicted • Reducing the inherent compliance burden associated with an in-house trustee • STS manages the relationship with the regulator specialist superannuation • Reduces costs trustee
Slide 54: Australian superannuation industry dynamics
AUSTRALIAN SUPERANNUATION INDUSTRY DYNAMICS FUM has grown by over 50% in six years, while at the same time the number of funds has almost halved. Total superannuation industry FUM $b $2,500 200 $2,000 150 Number of funds $1,500 100 $1,000 50 $500 $- 0 2017 2018 2019 2020 2021 2022 2023 Corporate Ind
Slide 55: Regulatory changes
REGULATORY CHANGES • The superannuation sector is undergoing a substantial volume of regulatory change • Given industry consolidation and the increasing regulatory burden, we see strong opportunities for demand for our services and the value proposition as an independent trustee Timeline 2023 2024 2
Slide 56: Strategy
STRATEGY To be the leading superannuation trustee in Australia Optimised member outcomes Independent trustee of choice BUSINESS GROWTH CUSTOMER SERVICE CAPABILITY COMMUNITY • Additional funds under • Continuously deliver • Be highly regarded for our • Recognised as the supervision, covering a operat
Slide 57: Summary
SUMMARY Growth from a diverse range of fund types and sizes Regulator focus on member outcomes and service is driving interest in our model Delivering on transformation agenda Leveraging capability and capacity through the combination of our Corporate and Superannuation trustee businesses 57
Slide 58: CSTS – Corporate
CSTS —- CORPORATE
Slide 59: Overview
OVERVIEW LEADING AUSTRALIAN PROVIDER OF FIDUCIARY SERVICES TO MANAGED FUNDS CSTS - CORPORATE BUSINESS UNIT Debt Capital Markets Fund Services (FS) Custody and Real Assets Sub-Business Unit (DCM) & Securitisation Clients Local & international Property investment Debenture & note trustee investment ma
Slide 60: Overview
OVERVIEW Fund Manager Locations1 Asset Allocation FUS1 Fund Types (by FUS)1 Other, 4% Asia, 5% Unregistered funds - non- Australian Equities discretionary Other (Property, 20% 14% Multi-strategy, Europe, 12% alternatives) Unregistered 31% funds - Australian FI discretionary 5% 10% Australia, 59% US,
Slide 61: DCM, securitisation, custody & real assets
DCM, SECURITISATION, CUSTODY & REAL ASSETS DCM & Securitisation Custody and Real Assets Services • Securitisation • REIT and large property trust RE/trustee • Loan markets • Managed Investment Trusts (MITs) (offshore • Security, note/bond trustee asset managers) • Issuing and paying agent • Custody
Slide 62: Funds management industry
FUNDS MANAGEMENT INDUSTRY MANAGED FUNDS INDUSTRY CONTINUES TO EXPERIENCE STRONG GROWTH, UNDERPINNED BY MANDATED GROWTH IN SUPERANNUATION SECTOR • Total superannuation assets increased 8.5% over the twelve- Australian market snapshot3 months to September 20231 • 647 Fund Managers in Australia - 55% o
Slide 63: Our role as trustee / responsible entity
OUR ROLE AS TRUSTEE / RESPONSIBLE ENTITY (RE) • Managed Funds are typically structured as Managed Investment Schemes Client (MIS) Investment manager - Regulated by Chapter 5C of the Corporations Act - Governed by constitution or trust Responsible deed ASIC Entity / Trustee • If MIS is registered (an
Slide 64: Our value proposition
OUR VALUE PROPOSITION • Material reduction in risk for the investment manager Assisting investment • Reducing the inherent compliance burden associated with an in-house trustee (including removing the managers with an need for an RE Board/Compliance Committee) unconflicted, specialist • Relationship
Slide 65: Strategy
STRATEGY To be the leading premium provider of trustee services to domestic and global fund managers in Australia BUSINESS GROWTH CUSTOMER SERVICE CAPABILITY COMMUNITY • Continue growth rates of • Deliver client • Be highly regarded for our • Recognised as the new clients and funds segmentation and
Slide 66: Summary
SUMMARY Strong pipeline of growth opportunities Enhancing client service proposition Delivering on transformation agenda Leveraging capability and capacity through the combination of our Corporate and Superannuation trustee businesses 66
Slide 67: Bringing together CTS and STS
BRINGING TOGETHER CTS AND STS
Slide 68: Rationale for combination
RATIONALE FOR COMBINATION LEVERAGING CAPACITY & CAPABILITIES OF EACH BUSINESS KEY DRIVERS 1. To enable an uplift in client/member service quality and improved, consistent processes and procedures 2. To support achieving economies of scale and be positioned for profitable growth 3. Material commonali
Slide 69: Transformation program – 2024
TRANSFORMATION PROGRAM – 2024 ONGOING PROGRAM TO UPLIFT THE WAY IN WHICH WE DO BUSINESS Area Project examples Client and service segmentation • Strategic account planning for our most valued clients • Tiered service levels (and pricing) • Increase touch points with clients and value add Organisation
Slide 70: Summary
SUMMARY Ongoing investment to support growth Continuing to mature our approach to enable scale Leverage data to make decisions & provide additional value to the client Simplify and streamline existing book of business Design and implement next generation corporate trustee services 70
Slide 71: People
PEOPLE Georgie Taylor Executive General Manager, People
Slide 72: Our vision is to be Australia's leading trustee company
Our vision is to be Australia’s leading trustee company A company with purpose, forming trusted relationships to look after the interests of beneficiaries, members and investors
Slide 73: People strategy
PEOPLE STRATEGY TO ENABLE A COLLABORATIVE, INCLUSIVE AND EVOLVING WORKFORCE Attract and retain high Build internal capability Maintain a values Better enable employees performing employees in to meet the needs of our aligned, safe, diverse with new technology and a competitive market evolving workfo
Slide 74: Attract and retain high performing employees
ATTRACT AND RETAIN HIGH PERFORMING EMPLOYEES IN A COMPETITIVE MARKET • Develop a formal Graduate and Internship program • Design and implement an enterprise-wide succession development program • Expand our secondment program and create internal mobility opportunities 74
Slide 75: Build internal capability to meet our needs
BUILD INTERNAL CAPABILITY TO MEET THE NEEDS OF OUR EVOLVING WORKFORCE • Triple A Development Program − Accelerate − Advance − Amplify • New people leader induction • Mentorship program • Trusted adviser training ACCELERATE ADVANCE AMPLIFY 75
Slide 76: Maintain a values aligned, safe, diverse and inclusive culture
MAINTAIN A VALUES ALIGNED, SAFE, DIVERSE AND INCLUSIVE CULTURE Our values • Launch Diversity and Inclusion Committee TRUSTED • Implement initiatives, education and support to ensure psychological safety in the workplace − Mental Health First-Aid training − Bystander training ACCOUNTABLE • Equilibriu
Slide 77: Better enable employees with new technology
BETTER ENABLE EMPLOYEES WITH NEW TECHNOLOGY AND INFORMATION SYSTEMS • Build our internal change capability • Implement Workday HCM (Human Capital Management) • Develop and implement remuneration frameworks to support regulatory change − CPS 511 (Superannuation remuneration standard) − Financial Acco
Slide 78: Risk Management
RISK MANAGEMENT Owen Brailsford Chief Risk Officer
Slide 79: Key risks
KEY RISKS Reputation Our purpose Compliance FIDUCIARY DUTY Financial Assets People Licences Brand Balance sheet Foundations CULTURE AND GOVERNANCE STRUCTURES 79
Slide 80: Regulatory changes
REGULATORY CHANGES The increasing regulatory burden has been very significant. We see strong opportunities for demand for our services and the value proposition as an independent trustee. Timeline 2021 2022 2023 2024 2025 RG274: DDO New Standards New Standards New Standards New Standards Oct RG271:
Slide 81: Regulatory landscape
REGULATORY LANDSCAPE Supervisory Intensity Regulatory Change • Thematic reviews APRA ASIC OTHERS − Technology and operational resilience • Operational Risk • Financial • Climate related − Greenwashing Management Accountability financial disclosure • Financial Regime • Productivity − Distribution Con
Slide 82: Technology
TECHNOLOGY Phing Lee Chief Technology Officer
Slide 83: Clear principles underpinning the technology strategy
CLEAR PRINCIPLES UNDERPINNING THE TECHNOLOGY STRATEGY Buy Technology Secure Australian data centres (not build) Out of the box functionality Application Program Interface (customisation limited) (API) ready Cloud first (SaaS) Everything mobile/digital ready 83
Slide 84: Technology team to only configure, customise & develop solutions
TECHNOLOGY TEAM TO ONLY CONFIGURE, CUSTOMISE & DEVELOP SOLUTIONS IN THESE AREAS Client and user experience Unique EQT business processes (workflow and automation) Data and analytics 84
Slide 85: Technology team
TECHNOLOGY TEAM PHING LEE Chief Technology Officer 11 years SANDRA HANNA DAVID HOLT BRENDAN KERRY JASON KWONG Head of Solutions Delivery Head of Infrastructure & Cyber Security Enterprise & Solutions Architect Head of Projects & Transformation 9 years 2 years 1 year 1 year • Software Development (7
Slide 86: Priority technology investments to modernize
PRIORITY TECHNOLOGY INVESTMENTS TO MODERNIZE & DELIVER A MORE CONTEMPORARY TRUSTEE COMPANY ONE-OFF OPEX ~$1.5M - $2.0M AND CAPEX ~$2.5M - $3.0M FOR FY24 PROJECTS Workday Implementation Implementation Cyber Security of new TWS of new Active Program Bringing the Finance platform Philanthropy and Peopl
Slide 87: Workday
WORKDAY BRINGING THE FINANCE AND PEOPLE FUNCTIONS ONTO A SINGLE MODERN PLATFORM Technology Delivered • Implementation of Workday Core Financials • Integrations to banking platforms • Integrations to other internal systems Progress update • Core finance capabilities implemented in November 2024 • Hum
Slide 88: Implementation of NavOne
IMPLEMENTATION OF NAVONE MODERNISATION OF THE TWS BUSINESS TO DELIVER BETTER OUTCOMES FOR ALL STAKEHOLDERS Technology Delivered • Implementation of the NavOne platform (replacing Garradin and TACT) • Outsourcing of custody administration services to HUB24 • Adoption of HUB24’s investment platform •
Slide 89: Modernisation & improving efficiencies
MODERNISATION & IMPROVING EFFICIENCIES GARRADIN (EQT ENVIRONMENT) NavOne TACT (INSIGNIA ENVIRONMENT) 89
Slide 90: Implementation of iPhi
IMPLEMENTATION OF iPhi LAUNCHING A LEADING ACTIVE PHILANTHROPY PLATFORM AND CLIENT SOLUTION Technology Delivered • Implementation of the iPhi platform • Launch of the iPhi client portal Progress update • iPhi implemented for the Equity Trustees Charitable Foundation (ECF) in November 2022 • Implemen
Slide 91: Delivering a better client experience – iPhi
DELIVERING A BETTER CLIENT EXPERIENCE – iPhi 91
Slide 92: Cyber security program
CYBER SECURITY PROGRAM CYBER SECURITY UPLIFT TO MAKE EQT A MORE CYBER RESILIENT ORGANISATION Technology Delivered • Implementation of vendor leading security perimeter technologies (FortiNet, Darktrace, Crowdstrike, Mimecast and Microsoft E5 security) Recent updates • Security Operations Center (SOC
Slide 93: Future technology developments
FUTURE TECHNOLOGY DEVELOPMENTS ADDITIONAL LARGE-SCALE TECHNOLOGY INVESTMENTS NOT EXPECTED IN THE MEDIUM-TERM BUT THERE ARE MANY MORE OPPORTUNITIES TO DELIVER BENEFITS WITH TECHNOLOGY MORE VALUE FROM EXSISTING PLATFORMS DIGITAL PRODUCTS & SERVICES Continuous improvement to further enhance finance The
Slide 94: Outlook and Conclusion
OUTLOOK AND CONCLUSION
Slide 95: Favourable industry dynamics and well positioned
FAVOURABLE INDUSTRY DYNAMICS AND WELL POSITIONED TO TAKE ADVANTAGE OF OPPORTUNITIES • The industry outlook is favourable for Equity Trustees o Corporate and Superannuation Trustee services underpinned by: − Growth in superannuation assets expected to materially outstrip GDP growth − Regulation becom
Slide 96: Outlook
OUTLOOK Positive outlook with earnings growth for FY25 and FY26 expected to be supported by: • Realisation of AET expense and revenue (and capital release) synergies − Achievement of revenue synergies via re-pricing and investment allocation − Achievement of expense synergies via exit of Platform bu
Slide 97: Conclusion
CONCLUSION SPECIALIST EXPERTISE AND MARKET LEADING POSITION PROVIDES A STRONG FOUNDATION FOR THE FUTURE Equity Trustees has a market leading position with unique capability Strategy is to continue to focus Expertise and capability are Strong springboard for growth on trusteeship first class • Favour
Slide 98: Questions
QUESTIONS
Slide 99: Thank you
THANK YOU
Slide 100: EQT Holdings Limited
EQT Holdings Limited ABN 22 607 797 615 Level 1, 575 Bourke Street Melbourne VIC 3000 1300 133 472 www.eqt.com.au Disclaimer The Managing Director has authorised that this document be given to the ASX. EQT Holdings Limited ABN 22 607 797 615. This document was prepared by EQT Holdings Limited and is
Slide 101: Appendix 1. EQT Asset Management
APPENDIX 1. EQT ASSET MANAGEMENT
Slide 102: Equity Trustees Asset Management
EQUITY TRUSTEES ASSET MANAGEMENT Diversified client base underpinned by Charitable/Endowment Clients • The team predominantly manages tailored investment portfolios for charitable, corporate and private clients and specialises in funds management for tax-exempt entities and structures • Primary obje
Slide 103: Performance
PERFORMANCE ASSET MANAGEMENT – POSITIVE PERFORMANCE Alpha Generation p.a. 31 December 2023 STRATEGY 1 YEAR 3 YEAR 5 YEARS Australian Equities -0.9% +0.7% +1.3% Eight Bays Global Equities +4.7% - - Australian Fixed Income +0.1% +0.1% +0.1% Mortgage Income +0.7% +2.3% +3.0% Spectrum Strategic Income +
Slide 104: FUM by asset class
FUM BY ASSET CLASS FUM by Asset Class FUM by Source 16% 9% 7% 25% 16% 4% 65% 8% 50% Australian Equities International Equities Property Fixed Income TWS Sole Trustee TWS Co Trustee, Advised Mortgage, Credit, Alternatives Cash Superannuation External Mandate only Source EQT: As at 28 Feb 2024 104
Slide 105: Investment philosophy
INVESTMENT PHILOSOPHY Our investment philosophy is to preserve and grow the real value of capital over the long term while providing clients, beneficiaries and co-trustees with the income they need. Market inefficiencies provide investment opportunities: • We believe in active asset management where
Slide 106: EQTAM – internal asset class strategies
EQTAM – INTERNAL ASSET CLASS STRATEGIES AUSTRALIAN EQUITIES – EQT Flagship, Tax-Aware & Responsible Investment Funds • Objective of generating long-term capital growth with an income focus (5-7 year timeframe) • Active Manager adopting Quality at a reasonable price approach investing in a portfolio
Slide 107: Commitment to responsible investing
COMMITMENT TO RESPONSIBLE INVESTING We are committed to responsible investing (RI) because we believe that it can have a material impact on the both the risk and returns of investments, while progressing positive environmental, social and economic outcomes RIAA CERTIFICATION EQT RESPONSIBLE EQT RESP