Eqt Holdings Ltd. · ASX:EQT
Eqt — ASX CEO Connect (June 2021)
26 slides from Eqt's conference presentation, Jun 15, 2021
Slide 1: Presentation to ASX CEO Connect
EQT HOLDINGS LTD ASX: EQT Presentation to ASX CEO Connect Mick O’Brien, Managing Director 15 June 2021
Slide 2: Why (invest in) EQT
Why (invest in) EQT • Income – dividend yield of 3.7% - 5.3% fully franked • Heritage Australian-made brand delivering consistent performance • Only pure-play trustee company on the ASX • Focused on markets with high growth rates • Be a part of a company that is one of Australia’s leading sources of
Slide 3: Our purpose
Our purpose is to help people take care of their future 3
Slide 4: About EQT
About EQT • Providing trustee services to private clients, fund managers, corporates and superannuation fund originators • Operating under Equity Trustees brand • 130+ years of experience • $128bn assets under supervision (1H21) 4
Slide 5: An oldie but a goodie: time-honoured Trustee worth a second look
An oldie but a goodie: time-honoured Trustee worth a second look ‘TIM BOREHAM O’Brien insists they don't have to be right on the political spectrum. s important for us to have some government experience,” he up the mandates for investment HUBQ24, AMP Life (after ‘sold to Resolution Life) and ‘Commin
Slide 6: Three core service streams
Three core service streams CORPORATE TRUSTEE SERVICES (CTS) SUPERANNUATION TRUSTEE OFFICE (STO) TRUSTEE & WEALTH SERVICES PRIVATE CLIENTS (TWS) 6
Slide 7: Specialist trustee services matched to defined clients
Specialist trustee services matched to defined clients CLIENT TYPE SERVICE Fund Managers & Responsible Entity Services (RE) and like services in the UK and Ireland Asset Owners CORPORATE Loan & Debt Security Trustee, Facility Agent, Note Trustee, Paying TRUSTEE SERVICES Capital Markets: Agent, Regis
Slide 8: Responsible Entity Services
Responsible Entity Services Unrivalled access & buying power through our network of quality partnerships and experience managing third party service providers CUSTODIANS AUDITORS ADMINISTRATOR / UNIT REGISTRY Note: Excludes UK & Ireland 8
Slide 9: Superannuation Trustee Services
Superannuation Trustee Services Unmatched core capability & experience in selection & oversight of third party service providers ADMINISTRATORS ASSET CONSULTANTS INSURERS PROMOTERS 9
Slide 10: Trusted by major financial service providers
Trusted by major financial service providers Acquired by 10
Slide 11: Our strengths
Our strengths • Best practice focus on trust, governance and fiduciary responsibility • Specialist skills and people • Unrivalled suite of required licences • Providing independent governance • Strong lightly-geared balance sheet 11
Slide 12: FINANCIALS
FINANCIALS
Slide 13: Positive financial performance
Positive financial performance • Solid half on half revenue FOR THE PERIOD 1H21 2H20 % 1H20 % growth Total revenue ($m) 48.3 46.5 3.7% 48.9 (1.3%) • Expense growth Total expenses ($m) 35.2 32.4 8.5% 32.7 7.5% contained (excluding Net profit before tax (NPBT $m) 13.1 14.1 (7.3%) 16.2 (18.9%) $1.7m M&
Slide 14: Balance sheet strength
Balance sheet strength Provides security and flexibility $m 1H21 2H20 1H20 • Debt/equity 6.5% Assets (excluding cash-backed Cash and liquid investments 73.9 80.7 63.6 ORFR Loans) ORFR cash 23.3 9.0 9.0 Trade receivables and accrued income 31.6 27.5 30.5 • Substantial headroom in Goodwill and intangi
Slide 15: Strong FUMAS growth – main driver of revenue
Strong FUMAS growth – main driver of revenue $b FUNDS UNDER MANAGEMENT, ADMINISTRATION, ADVICE AND SUPERVISION ($B) 140 130 128 120 110 101.0 100 90 86.2 85.4 80 71.4 70 60 FY17 FY18 FY19 FY20 1H21 15
Slide 16: Consistent financial performance
Consistent financial performance $m TOTAL REVENUE ($M) 100 95.4 92.5 90 88.5 79.9 80 70 60 50 48.3 40 FY17 FY18 FY19 FY20 1H21 16
Slide 17: Consistent financial performance
Consistent financial performance $m NET PROFIT AFTER TAX 25 21.2 22.2 20 19.7 19.2 15 15.4 13.3 10.7 10 9.8 5 - FY16 FY17 FY18 FY19 FY20 1H21 * underlying NPAT – excluding tax provision 17
Slide 18: Consistent financial performance
Consistent financial performance Cents EARNINGS PER SHARE 120 102.9 100 108.6 97.3 93.0 80 77.0 60 51.2 40 47.2 20 - FY17 FY18 FY19 FY20 1H21 *underlying EPS – excluding tax provision 18
Slide 19: Consistent financial performance
Consistent financial performance Cents DIVIDENDS 100 90.0 90.0 82.0 80 71.0 68.0 60 44.0 40 20 - FY16 FY17 FY18 FY19 FY20 1H21 19
Slide 20: Outstanding industry opportunity
Outstanding industry opportunity • Ageing, wealthier population increasing demand for our private client services • Government mandated superannuation inflows drive growth in superannuation and fund services • Global trend to independent trustee model 20
Slide 21: Outstanding industry opportunity
Outstanding industry opportunity • Financial Services Royal Commission has changed landscape • Financial service providers under pressure to address conflicts • Increasingly outsourcing fiduciary role • Our unconflicted services are in high demand 21
Slide 22: Resilience in challenging times
Resilience in challenging times • Calendar year 2020 highlighted our strength and resilience • Despite market volatility we grew revenue and maintained FY20 dividends • Growth in FUMAS provides strong platform • Healthy profit margins • Balance sheet remains strong with low gearing and strong liquid
Slide 23: Positive outlook for EQT & our investors
Positive outlook for EQT & our investors • Clear growth agenda with good momentum • Industry transformation providing opportunities • Investment in capability is delivering • Encouraging outlook for FY22 and beyond 23
Slide 24: QUESTIONS
QUESTIONS
Slide 25: THANK YOU
THANK YOU
Slide 26: Disclaimer
Disclaimer EQT Holdings Limited ABN 22 607 797 615. This document was prepared by EQT Holdings Limited and is only provided for information purposes. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. To the