Slide 1: Treasury Group Limited Full Year Results Presentation
Treasury Group Limited Full Year Results Presentation 30 June 2014
Slide 2: Agenda
Agenda 1. Overview 2. 2014 Financial Results 3. FUM & Performance 4. Merger with Northern Lights Capital 5. Outlook 2
Slide 3: Overview - momentum from key boutiques driving improved outcomes
1. Overview - momentum from key boutiques driving improved outcomes Financial • Normalised NPAT up 27.3% to $14.0m • Statutory NPAT up 26.0% to $13.1m • FY2014 dividend up 25.0% to 50.0cps • Basic eps up 25.8% to 56.6cps Operational • Strong momentum continues this year at RARE and IML • Total FUM u
Slide 4: Overview - operational highlights at Treasury Group
1. Overview - operational highlights at Treasury Group • Strong performance across boutiques, particularly RARE and IML: › Retail net funds inflow (aggregate) for RARE and IML– $648m vs $425m (FY2013) › IML successfully launches LIC, QV Equities which will drive higher earnings in FY2015 • Total FUM
Slide 5: Financial Results - growth in FUM; Underlying NPAT up 27.3%
2. Financial Results - growth in FUM; Underlying NPAT up 27.3% P&L Highlights ($m) FY2014 FY2013 % Change • FUM growth of 17.6% excluding addition Year end FUM ($bn) 25.4 17.1 48.5% of ROC Partners Aggregate Boutique Mgmt Fee • Aggregate net retail fund inflows for 98.3 83.0 18.4% Income ($m) RARE a
Slide 6: Financial Results - material level of non-recurring expenses in FY14
2. Financial Results – material level of non-recurring expenses in FY14 Treasury Group P&L ($000) FY2014 FY2013 % Change Profit After Tax 13,062 10,391 25.7% Settlement fee from PRV restructure - (537) • Residual carrying value in Legal, consulting and restructuring 160 495 costs relation to AR capi
Slide 7: Financial Results - operating leverage for TRG shareholders
2. Financial Results - operating leverage for TRG shareholders: FUM up 17.6% excluding ROC, NPAT up 25.1% % Aggregate P&L for Boutiques ($m) FY2014 FY2013 change • Excluding ROC, FUM increased Year end FUM ($bn) 25.4 17.1 48.5% by 17.6% during FY14 Average Net Margin (%) 58 bpts 55 bpts 5.5% • Avera
Slide 8: Financial Results - RARE driving significant profit growth during year
2. Financial Results - RARE driving significant profit growth during year Contribution to FY14 NPAT by Business Segment 16.0 3.785 (1.523) 14.0 13.062 12.0 0.409 10.391 10.0 $m 8.0 6.0 4.0 2.0 0.0 FY13 Australian Alternative Overhead, FY14 Equities Investments Outsourcing, RE Services and One off it
Slide 9: Financial Results - dividend higher
2. Financial Results – dividend higher Dividend History 60 50 50 • Final dividend 27 cps, fully franked 40 40 34 34 • Total dividend for FY 2014 up 25% cps 30 26 to 50 cps 20 • Implied payout ratio of 88% 20 10 0 2009 2010 2011 2012 2013 2014 Interim Final 9
Slide 10: FUM and Performance
4. FUM and Performance Composition of TRG FUM as at 30 June 2014 Other TRG Boutiques, 2.6% IML, 19.4% Trilogy, 19.1% • Addition of ROC Partners in June 2014 with $5.3bn total FUM • Total FUM $25.4 billion as at 30 June 2014, up 48.5% on FY2013 ROC Partners, 20.8% RARE, 35.7% Celeste, 2.4% 10
Slide 11: FUM and Performance - average margin higher due to growth at RARE and IML
4. FUM and Performance – average margin higher due to growth at RARE and IML Composition of FUM vs Average Margin 30 80 70 25 Trilogy Freehold (Evergreen) & AR Capital 60 Aubrey & Global Value Investors 20 50 TAAM FUM Avg Margin $bn at year end (bps) ROC Partners 15 40 Celeste 30 RARE Infrastructure
Slide 12: FUM and Performance - addition of ROC Partners impacts FUM profile
4. FUM and Performance – addition of ROC Partners impacts FUM profile FUM by Investor Type FUM by Investor Location FUM by Product Type 28 28 100% $bn $bn 24 24 80% 20 20 60% 16 16 12 12 40% 8 8 20% 4 4 - - 0% Jun-13 Jun-14 Alternatives Institutional International Source International Equities Retai
Slide 13: FUM and Performance
4. FUM and Performance Performance Relative to Comparative Indices (%pa) – Net of Fees to end June 2014 1 Year 3 Year 5 Year Since Inception Excess Excess Excess Sample Ratings Inception Date Returns Returns Returns Aubrey Global Conviction -6.60 -4.70 n/a -2.00 July 2010 Zenith - Recommended Celest
Slide 14: FUM and Performance - Funds flow review
4. FUM and Performance - Funds flow review 8 TRG Gross Funds Flow July 2008 to June 2014 6 • Six months to June 14 4 includes ROC Partners 2 • Net inflows at RARE and IML $bn 0 -2 -4 -6 Note: Chart shows funds flows, not change in FUM 14
Slide 15: Merger with Northern Lights Capital Group
5. Merger with Northern Lights Capital Group Merger Transaction Overview • Treasury Group Limited (TRG) and Northern Lights Capital Group (Northern Lights) agree to a merger creating an international multi-boutique business with A$49.6bn FUM • Northern Lights is a privately owned, international mult
Slide 16: Merger with Northern Lights Capital Group
5. Merger with Northern Lights Capital Group Strategy Going Forward • Continued expansion and diversification of portfolio via value enhancing new investments • Drive growth in asset base across portfolio by leveraging distribution capabilities • Second listing on a global exchange within 3 years •
Slide 17: Outlook - TRG is well positioned
6. Outlook – TRG is well positioned • Proposed merger with Northern Lights establishes platform for future growth › Significantly improved access to international clients and deal flow › Merger remains conditional and there are also risks around pre-emptive rights processes at some TRG boutiques • T
Slide 18: Disclaimer
Disclaimer The information in this presentation is general background information about Treasury Group Limited and is current only at the date of this presentation. In particular, this presentation: • is not an offer or recommendation to purchase or subscribe for securities in Treasury Group Limited