Eqt Holdings Ltd. · ASX:EQT
Eqt — Shareholder Meeting (October 2024)
43 slides from Eqt's shareholder meeting presentation, Oct 17, 2024
Slide 1: Annual General Meeting today
17 October 2024 Annual General Meeting today. The Managing Director has authorised that this document be given to the ASX. FURTHER INFORMATION Media Alicia Kokocinski General Manager – Marketing & Communications 03 8623 5396 / 0403 172 024 akokocinski@eqt.com.au Investors Mick O’Brien Johanna Platt
Slide 2: Annual General Meeting
ANNUAL GENERAL MEETING Carol Schwartz AO, Chair Mick O’Brien, Managing Director EQT Holdings Limited 17 October 2024
Slide 3: Carol Schwartz AO, Chair
CAROL SCHWARTZ AO CHAIR
Slide 4: Agenda
AGENDA A CHAIR'S ADDRESS B MANAGING DIRECTOR’S ADDRESS C ITEMS OF BUSINESS 1. FINANCIAL REPORT, DIRECTORS’ REPORT AND AUDITOR’S REPORT 2. RE-ELECTION OF DIRECTOR 3. ADOPTION OF REMUNERATION REPORT 4. APPROVAL OF LONG-TERM INCENTIVE AWARD FOR MANAGING DIRECTOR 3
Slide 5: Board of Directors
BOARD OF DIRECTORS CAROL SCHWARTZ AO Chair KEVIN J ELEY D. GLENN SEDGWICK CATHERINE ROBSON MICK O’BRIEN Independent Director Independent Director Independent Director Managing Director TIM HAMMON KELLY O’DWYER ROBERT DALTON Independent Director Independent Director Independent Director 4
Slide 6: Our strategy is delivering
OUR STRATEGY IS DELIVERING • Focus on strategy to be Australia’s leading provider of trustee services is proving successful • FY24 was a year of transformation for the business • Industry rationalisation continues to provide opportunities • Regulatory environment has intensified, and we are well pla
Slide 7: Mick O'Brien, Managing Director
MICK O'BRIEN MANAGING DIRECTOR
Slide 8: Refreshed experienced leadership team
REFRESHED EXPERIENCED LEADERSHIP TEAM MICK O’ BRIEN MORGAN LONGLEY Managing Director Executive Assistant 8 years 0.5 years ANDREW GODFREY GEORGIE TAYLOR IAN WESTLEY SAMANTHA EINHART JOHANNA PLATT Executive General Manager, Executive General Executive General Company Secretary Chief Financial Officer
Slide 9: A company founded on trust
A COMPANY FOUNDED ON TRUST PURPOSE: HELP PEOPLE TAKE CARE OF THEIR FUTURE Safeguard people’s wealth now and for Provide trustee services to help clients protect generations to come members’ and investors’ interests Act as a trusted, independent partner to grow Empower clients to improve the lives of
Slide 10: Year of transformation
YEAR OF TRANSFORMATION CHARACTERISED BY FOUR KEY DRIVERS On track Integration • The integration of the AET business progressed to plan Successful exit of non-core businesses • Fully exited the Irish business and in the final stages of winding up the UK business • Exit of the AET Platform business an
Slide 11: Strong financial performance
STRONG FINANCIAL PEFORMANCE FUMAS* REVENUE $202.8b $174.0m Up 26.7% on FY23 Up 23.1% on FY23 DIVIDENDS NPAT $20.7m 53 cents (final) Up 10.0% UNPAT $37.9m Up 13.8% 104 cents (full-year) Up 5 cents on FY23 10 * FUMAS: Funds under management, administration, advice and supervision
Slide 12: Growth from acquisition, organic & investment markets
GROWTH FROM ACQUISITION, ORGANIC & INVESTMENT MARKETS ¹ FUMAS CAGR FY20 to FY24 of 19.0%, made up of: ̶ Organic growth ~55% ̶ Investment market impact ~40% ̶ AET acquisition 5% 11 1 FUMAS: Funds under management, administration, advice and supervision
Slide 13: Continued improvement on key financial measures
CONTINUED IMPROVEMENT ON KEY FINANCIAL MEASURES $m TOTAL REVENUE $174.0M $40.5M $m NPAT & BEFORE AMORTISATION 180 174.0 48 141.4 40.5 140 40 34.9 111.5 95.4 101.0 100 32 29.2 22.7 23.9 24 60 25.2 20.7 23.0 20.4 23.3 16 20 FY20 FY21 FY22 FY23 FY24 FY20 FY21 FY22 FY23 FY24 Underlying NPATA¹ Statutory
Slide 14: Strong balance sheet with flexibility
STRONG BALANCE SHEET WITH FLEXIBILITY $540M $540M GEARING Payables and DEBT / Receivables and 68 other assets 71 other liabilities EQUITY 11.9% Borrowings 47 Excl. ORFR Goodwill and 330 EXCESS intangible assets LIQUIDITY ~$36m 399 Equity Regulatory Cash Requirement 77 UNDRAWN Free Cash and BORROWING
Slide 15: Trustee wealth services
TRUSTEE WEALTH SERVICES TWS FUMAS1 TWS REVENUE $b $m 24 120 20 99.1 17.7 100 16.3 16 76.0 80 5.3 12 20.2 9.1 60 51.4 8 40 4 20 0 0.9 FY22 FY23 FY24 FY22 FY23 FY24 AET Platforms AET Revenue in FY23 and FY24 included some significant items of revenue that are one-off in nature or 1 FUMAS: Funds under
Slide 16: Corporate & superannuation trustee services
CORPORATE & SUPERANNUATION TRUSTEE SERVICES CSTS FUS1 CSTS REVENUE $b $m 185.1 3.6 100 180 66.1 143.8 80 75.0 139.8 140 5.7 5.9 65.2 3.5 44.0 60.3 3.2 34.7 60 2.9 30.7 115.4 23.1 100 0.8 20.9 99.4 40 2.2 93.1 36.5 36.7 40.8 60 20 FY22 FY23 FY24 FY22 FY23 FY24 CSTS - Corporate AET CSTS - Superannuati
Slide 17: Delivering for all stakeholders
DELIVERING FOR ALL STAKEHOLDERS IMPROVING CLIENT SATISFACTION Clients are surveyed every year and action taken to improve their experience NPS NLS SAT +33 +72% +75% +25 +22 +18 2023 2024 2023 2024 2023 2024 LIFTING EMPLOYEE ENGAGEMENT DEEPENING COMMUNITY IMPACT Our goal is to have highly engaged and
Slide 18: AET integration on track to planned completion dates
AET INTEGRATION ON TRACK TO PLANNED COMPLETION DATES DEC 22 – JUN 23 FY24 FY25 PLAN Employees Employees Employees • Employee retention • Cultural alignment • Release of ~50 roles – in August and Nov. • Combined client facing teams • New office in Adelaide • Combined single TWS Operations Team • New
Slide 19: AET overall synergies & implementation costs on track
AET OVERALL SYNERGIES & IMPLEMENTATION COSTS ON TRACK NET COST SYNERGIES REVENUE SYNERGIES IMPLEMENTATION COSTS CAPITAL RELEASE Forecast amount $3.5m p.a. $5.9m+ p.a. $22.0m $10.0m Original amount $3.5m p.a. $3.3m p.a. $22.0m $nil Timing Run Rate $0.4m in FY23 $5.6m in FY231 $10.0m in FY25 (planned)
Slide 20: Strategy & plans
STRATEGY & PLANS
Slide 21: Business unit initiatives in FY25
BUSINESS UNIT INITIATIVES IN FY25 PRIVATE CLIENT BUSINESSES CORPORATE & SUPERANNUATION TRUSTEE SERVICES TRUSTEE & WEALTH SERVICES CORPORATE • Digital launch of Australian leading philanthropy platform – iPhi • Growing existing business • Capitalise on market leading business development capability •
Slide 22: Investing in technology
INVESTING IN TECHNOLOGY $2m PLATFORM MODERNIZATION & $3m ADDITIONAL INCLUDED IN $22m AET INTEGRATION CORPORATE TRUSTEE SERVICES TRUSTEE WEALTH SERVICES • Implement a data warehouse to integrate data and • Achieve single digital platform to enhance client enable analytics experience using Quantios an
Slide 23: Good start to first quarter FY25
GOOD START TO FIRST QUARTER FY25 CSTS FUS1 TWS FUMAS² $b $b 198.9 200 24 185.1 70.5 3.6 20 66.1 17.7 18.0 160 16 6.2 6.5 12 120 128.4 8 11.5 11.5 115.4 4 FY24 Q1'25 80 FY24 Q1'25 Trustee FUMAS Asset Management FUM CSTS - Corporate CSTS - Superannuation CSTS - EU • FUS up 7.5% (Excluding CSTS – EU 9.
Slide 24: Q1 FY25 update
Q1 FY25 UPDATE Key integration and transformation milestones delivered and progressing to plan ACHIEVEMENTS STATUS UPDATE AS OF 17 OCTOBER 2024 Aon*** Final client transition to NavOne and HUB24 completed COMPLETED ~ 20 operational roles in Adelaide released 31 August COMPLETED ~ 25 operational role
Slide 25: FY25 outlook & priorities
FY25 OUTLOOK & PRIORITIES DELIVER RETURN ON INVESTMENT IN TECHNOLOGY AND AET BUSINESS Complete AET integration and embed Ongoing investment required to meet synergy benefits increasingly complex regulatory obligations Continue leveraging the combining of the Achieving improvements in client experien
Slide 26: Summary
SUMMARY STRONG PERFORMANCE WITH CONTINUED GROWTH MOMENTUM AET integration and technology Growth primarily driven by new business transformation on track Earnings growth as underlying results revert Well positioned to realise benefits of scale in towards statutory results in 2nd half FY25 our key mar
Slide 27: Questions
QUESTIONS
Slide 28: Thank you
THANK YOU
Slide 29: Disclaimer
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 Board 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 only provid
Slide 30: AGM Chair speech
AGM CHAIR SPEECH SLIDE 2 – CAROL SCHWARTZ AO Shareholders, ladies and gentlemen, good morning and welcome. I am Carol Schwartz, and I am the Chair of EQT Holdings Limited. I would like to acknowledge the Wurundjeri People as the traditional custodians of this land on which this office is located. We
Slide 31: Board backgrounds
• Tim Hammon joined the Board in 2018 and is Chair of the Remuneration, Human Resources and Nominations Committee. He is also a member of the Board Risk Committee. • Catherine Robson joined the Board in 2020, after serving on our Superannuation subsidiary Board for six years. Catherine chairs our Su
Slide 32: Our strategy is delivering (speech)
SLIDE 5 – OUR STRATEGY IS DELIVERING I want to focus on an overview of the highlights of the 2024 financial year. Equity Trustees has once again had a very successful and busy year. The highlights have included the continuing integration of the Australian Executor Trustees business, together with th
Slide 33: Stakeholders and community
Our clients and communities benefit from our commitment to technology because we invest through the lens of how it equips us to take care of their future as well as delivering services to them in the most efficient and user-friendly way possible – that is, in ways that they are perhaps more used to
Slide 34: AGM Managing Director speech
I thank my fellow directors for their support and contribution, and on behalf of the Board, I thank all our clients, people, shareholders and other partners for your tremendous ongoing commitment and support. Again, best wishes to Kevin as he leaves the Board. Thank you for your time and attention.
Slide 35: Slides 8-9 reference
7. Andrew Godfrey, Executive General Manager for Corporate and Superannuation Trustee Services, covering all our corporate lines of business. Andrew joined under two years ago and has extensive experience in overseeing large scale financial service operations which is critical to this part of the bu
Slide 36: Strong financial performance (speech)
SLIDE 10 – STRONG FINANCIAL PERFORMANCE These are the headline financial results for FY24. I mentioned the growth before, and you can see Funds Under Management, Advice and Supervision (FUMAS) increased by 26.7% to be $202.8bn. Revenue was $174m, a 23% increase on FY23. This is the first full year o
Slide 37: Strong balance sheet with flexibility (speech)
can see the statutory result at $23.3m, but the underlying result at $40.5m. This underlying result increased by 16% on the prior year. 2. The gap between statutory and underlying results as at 30 June is the biggest we have had due to the investment in the AET integration, the technology developmen
Slide 38: Corporate & superannuation trustee services (speech)
SLIDE 15 – CORPORATE & SUPERANNUATION TRUSTEE SERVICES The newly combined Corporate and Superannuation Trustee Services business had a strong year of growth, reflecting our market leadership position. Excluding UK and Ireland – for the Australian business, Funds Under Supervision increased by 31.6%
Slide 39: AET integration progressing well (speech)
Finally, for the community, we granted over $178m to fabulous charitable and for-purpose causes. This is such an important part of Equity Trustees, to provide stewardship over such crucial funding to the community. This granting includes $57m to First Nations communities. This is a well-rounded set
Slide 40: Strategy & plans (speech)
We are on track to achieve this all within the $22m envelope with $3.6m of this implementation cost planned for FY25. I need to point out at our August release we had the FY24 number at $9.4m and FY25 at $7m, however the numbers are corrected here, but still adding to the same total for FY24 and FY2
Slide 41: Good start to first quarter FY25 (speech)
platform, very importantly we’ve also implemented two automated payment systems which we extracted from Insignia, meaning TWS will have straight through payment functionality for the first time. And finally, we have introduced Workday in Finance, and we have another module to come next month, and we
Slide 42: FY25 outlook & priorities (speech)
We flagged at the full year results that we would be soon releasing some roles in Adelaide, and we released about 20 roles at the end of August and another 25 people have been advised that their roles will cease next month. With the final transition we are very confident of exiting the Transitional
Slide 43: Summary (speech)
We will give more some guidance on the correlations at the half year, because with the extraordinary growth of the portfolio, some of the numbers are changing due to the mix of business. We think our past guidance for Superannuation at 20% looks right, and likewise the Corporate Trust business aroun