Slide 1: Equity Trustees Full Year Results - Profit and Dividend Increase
28 August 2014 Equity Trustees Full Year Results For personal use only Profit and Dividend Increase Acquisition of ANZ Trustees Limited Equity Trustees Limited (ASX: EQT) today confirmed its full year financial results and final dividend. Operating profit before tax and net profit after tax are both
Slide 2: Dividend increase and business progress
Mr Killen confirmed that the full year dividend would increase from 92 to 94 cps. The final fully franked dividend of 48 cps is payable to all shareholders, including the new shares issued as part of the major For personal use only capital raising in April/May 2014. He said, “As a result of the one-
Slide 3: Equity Trustees Limited (EQT) Full Year Results to 30 June 2014
For personal use only Equity Trustees Limited (EQT) Full Year Results to 30 June 2014
Slide 4: Overview – FY2014
Overview – FY2014 For personal use only • Operating profit and net profit after tax – both up 12%. • Revenue growth of 14% - all organic, operating margin at 27%. • Successful acquisition of ANZ Trustees – effective 4 July 2014. • Both Business Units grew revenue strongly. • Full year dividend incre
Slide 5: Overview – group results
Overview – group results For personal use only 2014 2013 Change $m $m Operating revenue 53.3 46.8 14 % Operating expenses (38.9) (33.9) (15 %) Operating profit before tax 14.4 12.9 12 % Income tax expense (4.0) (3.6) Operating profit after tax 10.4 9.3 11 % Non-operating items (net of tax) (0.7) (0.
Slide 6: Operating revenue – change
Operating revenue – change For personal use only Operating revenue up 14.1% to $53.3m Operating revenue movement compared (Excludes profit on sale of investments) to prior year $53.3m $46.8m $43.0m +$0.3m $53.3m $39.2m +$2.8m +83.1% +14.1% +14.6% $34.5m +$3.4m +12.7% $46.8m 2010 2011 2012 2013 2014
Slide 7: Expenses
Expenses For personal use only Operating costs ($m) $38.9m $33.9m $32.0m $28.4m 9% increase $23.8m 2010 2011 2012 2013 2014 5
Slide 8: Operating margin
Operating margin For personal use only Operating Profit (Pre-tax) ($m) Operating Margin (%) 31.1% 27.7% 27.1% 25.6% 27.5% 14.4 12.9 10.7 10.8 11.0 2010 2011 2012 2013 2014 6
Slide 9: Reported earnings per share
Reported earnings per share For personal use only Reported earnings per share at 88.64¢ per share Earnings Per Share Weighted average shares on issue ('000) 88.64 87.90 11,500 87.53 87.66 87.58 11,000 10,959 10,500 10,000 9,901 9,500 9,560 9,362 9,000 9,191 8,500 2010 2011 2012 2013 2014 2010 2011 2
Slide 10: Returns to shareholders
Returns to shareholders For personal use only Full-year dividend as percentage of Full-year, fully-franked dividend Reported EPS Reflecting a current yield of approximately 4.3% before franking credits Interim (cps) Final (cps) 120% 113.9% 106.0% 103.1% 110 100% 95.2% 100 87.9% 92 94 85 80% 50 50 42
Slide 11: Sustained shareholder return
Sustained shareholder return For personal use only 1 July 2005 to 30 June 2014 400 EQT total shareholder return + 206.2% Assumes all dividends S&P/ASX 200 Accum. Index return + 87.5% 350 are reinvested. 300 EQT total shareholder return. 250 200 150 100 Base (100) taken at 1 July 2005 50 S&P/ASX 200
Slide 12: Business units – operations & performance
Business units – operations & performance For personal use only Target market / Revenue FUM/FUA Business unit Key services channel 2014 vs 2013 2014 vs 2013 Trustee & Wealth Services • Personal Estates & • Private clients $31.3m $4.3b (TWS) Trusts • Business to + 12.7% + 31.2% • Philanthropy busines
Slide 13: Business unit overview – TWS
Business unit overview – TWS For personal use only FUM/FUA at 30 June 2014 up 31.2% to $4.3b Superannuation Operating revenue up 12.7% to $31.3m Philanthropy Trust & Estate 4,269 Wealth Advice 3,254 3,022 2,312 2,878 2,621 1,454 1,448 1,265 1,105 31.3 507 27.0 27.8 450 392 390 24.3 368 442 512 20.2
Slide 14: Business unit overview – TWS
Business unit overview – TWS For personal use only • Revenue up 12.7% to $31.3m • FUM up 31.2% to $4.3b • Organic growth continues across all business lines. • Additional external partners in place to provide referrals for estate planning services, with approx one third recording EQT as Executor – p
Slide 15: Business unit overview – CTS
Business unit overview – CTS For personal use only FUM/FUA at 30 June 2014 up 21.3% to $35.2b Responsible Entity 35,214 Operating revenue up 14.6% to $21.3m Funds Management 29,033 21,100 19,187 31,565 15,875 25,254 21.3 18.6 18,354 16,963 15.6 13,995 14.6 13.7 2,746 3,779 3,649 1,880 2,223 2010 201
Slide 16: Business unit overview – CTS
Business unit overview – CTS For personal use only Responsible Entity Business Net flows for funds distributed by EQT ($m) Number of Funds Number of managers $1,200 $1,000 185 158 $800 139 123 $600 113 $400 76 65 58 51 41 $200 $- 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 14
Slide 17: Business unit overview – CTS
Business unit overview – CTS For personal use only Business Unit: • Revenue up by 14 .6% to $21.3m • FUM increased from $29b to $35b Corporate Trustee Services: • Added a net 27 funds to 185 funds, servicing 76 managers - net increase of 11. • Expanded service offering to include wider trustee roles
Slide 18: Business update and summary
Business update and summary For personal use only The environment • Overall wealth industry growth – but outcomes from FSI, publicity re advice model problems, MySuper, FoFA all yet to be experienced. Increased business complexity and costs. • Impending wealth transition and need for advice post-ret
Slide 19: Acquisition of ANZ Trustees Limited
Acquisition of ANZ Trustees Limited For personal use only Acquisition of ANZ Trustees Limited • 10 April 2014 – Announced acquisition and capital raising • 3:4 capital raising at $17.00 per share – Approx 50% via placement and insto entitlement – approx 50% via retail entitlement • 4 July 2014 – Com
Slide 20: Directions
Directions For personal use only • Acquisition of ANZ Trustees enables EQT to enter ASX300 – Inclusion in index possible • Market Capitalisation now approximately $400m • Share Register contains a much broader spread of institutions • Only remaining independent listed trustee company • Trustee Wealt
Slide 21: Disclaimer
Disclaimer 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 shoul