Eqt Holdings Ltd. · ASX:EQT
Eqt — Investor Presentation (April 2025)
78 slides from Eqt's investor presentation, Apr 3, 2025
Slide 1: Investor Briefing
EQT HOLDINGS LIMITED INVESTOR BRIEFING Sydney – Radisson Blu Plaza Thursday 3 April 2025
Slide 2: Agenda
AGENDA Introduction Q3 update Trustee Wealth Services (TWS) Corporate & Superannuation Trustee Services (CSTS) Asset Management – high performing stable team People – our greatest asset Risk management – our core capability Technology – major developments on track Outlook 2
Slide 3: Introduction
INTRODUCTION Mick O’Brien Managing Director
Slide 4: The Leading Independent Australian Trustee
THE LEADING INDEPENDENT AUSTRALIAN TRUSTEE Independent model – increasingly favoured by the High employee engagement and customer market satisfaction Powerful industry tailwinds – intergenerational wealth transfer and continued growth in the superannuation Technology and people investments will enha
Slide 5: Key Investment Highlights
KEY INVESTMENT HIGHLIGHTS Position of Strength Excellent Portfolio of Clients • Trusted brand and reputation • Portfolio of complementary businesses (private • Leading governance position of wealth value chain client, corporate trustee, superannuation trustee) • Leadership positions across multiple
Slide 6: About Us
ABOUT US $222b 2 in assets Established 1888 3 1 #5 in Australia 147 years young! Market Capitalisation 462 $880m 4 Staff Protecting over Supporting over 800,000 260 HQ in Melbourne beneficiaries, Fund managers, super fund Presence in Sydney, Perth, members and providers and corporates Adelaide and B
Slide 7: Equity Trustees Specialises at the Leading Governance Position of the Wealth Value Chain
EQUITY TRUSTEES SPECIALISES AT THE LEADING GOVERNANCE POSITION OF THE WEALTH VALUE CHAIN Trusteeship Investment Schemes, Corporate Appointments Private Client Trusts & Superannuation Funds Asset Administration / Advice Custody Management Registry • Fit for purpose trustee • Cross sell to TWS clients
Slide 8: Consistent Growing Dividends
CONSISTENT GROWING DIVIDENDS Cents 5.5% CAGR 104 100 99 97 90 90 91 90 82 1H25 80 55 cents 68 71 70 60 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Maintained dividend in 8 covid impacted year
Slide 9: Australia's leading trustee
Our purpose is to help people take care of their future Our vision is to be Australia’s leading trustee company
Slide 10: T4 Targets & Our Assets Are Key to Our Success
T4 TARGETS & OUR ASSETS ARE KEY TO OUR SUCCESS T4 Targets Assets T1 T2 Improving Lifting Brand Balance sheet client satisfaction employee engagement 137 years Low gearing at 10.6%1,2 Survey clients every year Goal to have highly engaged Synonymous with ‘trust’ Cash, liquids, and undrawn Action plans
Slide 11: Experienced Board of Directors
EXPERIENCED BOARD OF DIRECTORS CAROL SCHWARTZ AO Chair D. GLENN SEDGWICK CATHERINE ROBSON TIM HAMMON Independent Director Independent Director Independent Director HON. KELLY O’DWYER ROBERT DALTON MICK O’BRIEN Independent Director Independent Director Managing Director 11
Slide 12: Refreshed Leadership Team
REFRESHED LEADERSHIP TEAM MICK O’ BRIEN Managing Director 9 years JOHANNA PLATT GEORGIE TAYLOR IAN WESTLEY ANDREW GODFREY KERRYN O'BRIEN Chief Financial Officer Executive General Executive General Executive General Manager, Chief Risk Officer Manager, People Manager, Corporate & Superannuation 28 Ap
Slide 13: Market Leadership Positions in Key Markets
MARKET LEADERSHIP POSITIONS IN KEY MARKETS CORPORATE & SUPERANNUATION PRIVATE CLIENT BUSINESSES TRUSTEE SERVICES TRUSTEE & WEALTH SERVICES CORPORATE • Philanthropy – Leading provider (~equal) • Responsible Entity Services – Long term clear leader • Health & Personal Injury – Clear leading provider •
Slide 14: Increasingly Diversified Business Revenue
INCREASINGLY DIVERSIFIED BUSINESS REVENUE CSTS - Corporate Group Trustee Wealth Services Investment Mandates Debt & Sec 3% PCT - Co-Trustee Custody & 1% 4% Real Assets 1% Continuing Trusts 8% CSTS – Super 18% Trustee CSTS - Wealth Corporate Services Health & Personal Injury 23% 59% PCT - Sole-Truste
Slide 15: Decreased Client Concentration Risk – Revenue
DECREASED CLIENT CONCENTRATION RISK – REVENUE FROM MATERIAL CLIENTS REDUCED FROM 34% TO 24% FY21 1H25 4 Super clients 11.0% 5 Super clients 14.3% 2 CTS clients 2.8% 3 CTS clients 7.8% 1 TWS client 1.2% >1% Group Revenue >1% Group Revenue 1/2% to 1% Group Revenue <1/2% Group Revenue <1/2% 1/2% to Gro
Slide 16: Client Turnover Is Very Low
CLIENT TURNOVER IS VERY LOW SUBJECT TO SUBJECT TO BUSINESS UNIT FUNDS POTENTIAL OTHER REASONS FOR LOSS INFLOW FUNDS OUTFLOW CSTS • Superannuation ✓✓✓ ✓ Voluntary retirement by EQT1 or SFT2 • Funds Services ✓✓✓ ✓✓✓ Voluntary retirement by EQT and requires unitholder vote or scheme closure • Debt and
Slide 17: Closing Out a Period of Major Transformation
CLOSING OUT A PERIOD OF MAJOR TRANSFORMATION FY23 FY24 FY25 Acquisition November 2022 AET Platform Exit TSA Exit March 25 Outsourcing SAF Administration to AET SuperConcepts Outsourcing Custody to HUB24 Client Transitions from EQT & Insignia Technology Modernisation Development of NavOne Workday Hum
Slide 18: February Update
FEBRUARY UPDATE Johanna Platt Chief Financial Officer
Slide 19: Long-Term Upward FUMAS Trend Underpinning Strong Organic Growth Momentum
LONG-TERM UPWARD FUMAS TREND UNDERPINNING STRONG ORGANIC GROWTH MOMENTUM TOTAL EQT FUMAS1 $b 240 229.0 221.9 220 200 183.5 180 160.1 • FUMAS up 3.2% on 31 160 144.2 148.9 December to $229.0b 140 • Significant new business 120 activity continues 101.0 100 86.2 84.9 80 66.9 71.4 60 40 2 FY16 FY17 FY18
Slide 20: FUMAS Growth by Business Line
FUMAS GROWTH BY BUSINESS LINE $b CSTS – CORPORATE FUS1 $b CSTS – SUPERANNUATION FUS1 160 100 130.3 135.7 80 73.6 74.1 120 48.3 48.6 60 80 46.3 46.6 40 40 82.0 87.1 20 27.3 28.6 - - 1H25 28/02/25 1H25 28/02/25 AUM related Non AUM related AUM related Non AUM related $b TWS FUMAS2,3,6 $b ASSET MANAGEME
Slide 21: Correlation of Revenue to Investment Markets
CORRELATION OF REVENUE TO INVESTMENT MARKETS ASSET FEE DISTRIBUTIONS PORTFOLIO REVENUE ALLOCATION COMPOSITION INCREASE FOR IMPACT 10% INVESTMENT PERFORMANCE 22 40 41 >90% Distributing TWS ~ 5% ~ 6% 78 Income 19 18 42 36 ~80% Distributions ~ 9% CTS ~61. % 64 Reinvested 40 34 37 >90% in 43 ~ 9% STS Ac
Slide 22: Trustee & Wealth Services
TRUSTEE & WEALTH SERVICES Ian Westley Executive General Manager, Trustee & Wealth Services
Slide 23: Trustee Wealth Services – Leadership Team
TRUSTEE WEALTH SERVICES – LEADERSHIP TEAM IAN WESTLEY Executive General Manager, Trustee Wealth Services 18 years JO MAHONEY Manager, Office of TWS 12 years ERIC BYLSMA AARON TUNKS JODI KENNEDY RAVI MALHOTRA General Manager, Technical General Manager, Private Trustee General Manager, Philanthropy Ge
Slide 24: 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 24
Slide 25: TWS Position to Benefit from Changing Australian 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 Ageing population – the over 80s being the fastest growing population The government’s stated objective to double philanthropic giv
Slide 26: 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 Philanthropic Trust to 2 years Management 172 Estate Estate Planning1 Will Bank Management1 212 212 Continuing Trust Management1 Will bank contai
Slide 27: Philanthropy
PHILANTHROPY TESTAMENTARY ACTIVE Perpetual Charitable Trusts Public Ancillary Funds Private Ancillary Funds (PCT) (PUF) (PAF) 774 accounts 406 clients 34 clients $3.0b FUM $0.4b FUM $0.15b FUM New: White label PUF for advisory groups (JB Were, Evans and Partners) New: Corporate foundations (ANZ, NAB
Slide 28: Digital Launch of iPhi
DIGITAL LAUNCH OF iPHI CAPITALISE ON • Breadth and depth of Philanthropy team • Leading technology • Contemporary product structures AIMS OF THE CAMPAIGN • Educate and empower • Make philanthropy accessible • Generate qualified lead leading to increase client numbers THE CAMPAIGN • A targeted, dynam
Slide 29: 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 7 • 17 employees with deep understanding of Native Title We partner with market m
Slide 30: 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 9 • Clients require local support • Portfolio includes advised
Slide 31: 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 32: TWS Is Dedicating More Resources to Business Development
TWS IS DEDICATING MORE RESOURCES TO BUSINESS DEVELOPMENT Business Development Estate Planning Total years of Total years of Team Average tenure Team Average tenure industry experience industry experience 7 9 142 21 10 241 SMEs H&PI Philanthropy Native Title Trusts Continuing Trusts Estate Management
Slide 33: Asset Management Capability Utilisation
ASSET MANAGEMENT CAPABILITY UTILISATION Allocation to Asset Business Unit FUM Future Allocation Management Native Title Trusts $746m ~10% Perpetual Charitable Trusts $3,045m ~90% Advice $648m ~12% Health & Personal Injury – Advised $2,100m 0% Health & Personal Injury – Non-Advised $2,400m ~27% Activ
Slide 34: Deployed Market Leading Technology & Services
DEPLOYED MARKET LEADING TECHNOLOGY & SERVICES NavOne iPhi - Utilising market leading technology - Client Portals in all core platforms - Ability for beneficiaries to self serve - Straight through processing of applications and payments - Embedded workflow processes 34
Slide 35: Long Duration Business
LONG DURATION BUSINESS BUSINESS UNIT COMMENT CAPITAL ACCESS Estate Planning Average ~15 years between estate plan and death N/A Estate Management Varies between 6 and 24 months Fully at completion Continuing Trusts Considerable variation in designs – 20-30 years on average Not generally until vestin
Slide 36: Asset Management
ASSET MANAGEMENT
Slide 37: Asset Management
ASSET MANAGEMENT HIGH-QUALITY ACTIVE, IN-HOUSE, FUNDS MANAGER PROVIDING TAILORED SOLUTIONS • Manage $A6.1 billion (as at 31 December 2024). Diversified and stable client base. • Operate a range of internal asset class strategies including: ‒ Australian Equities ‒ International Equities (in partnersh
Slide 38: Asset Management Team – Deep Experience
ASSET MANAGEMENT TEAM – DEEP EXPERIENCE Asset allocation DARREN THOMPSON Chief Investment Officer 34 yrs exper ience Growth Exposure Sustainability Defensive Exposure Group Defensive Exposure Communication & Service CHRIS HAYNES DILAN ASHTON LINDSAY SKARDOON TIM ALLISTER GRANT Head of Equities Gener
Slide 39: FUM Breakdown by Client & Key Growth Drivers
FUM BREAKDOWN BY CLIENT & KEY GROWTH DRIVERS $A6.1bn • Very stable, long duration capital Perpetual Charitable • Limited inflows / negligible outflows Trusts/Endowments • Growth broadly in line with capital growth • Attractive margins ~75% TWS • Material growth in FUM from continued alignment with b
Slide 40: FUM Breakdown by Asset Class
FUM BREAKDOWN BY ASSET CLASS $A6.1bn • Australian Equities core building block – capital growth and tax effective income • Quality at a Reasonable Price (QUARP) investment process Australian Equities • Highly Experienced PM and investment team - EQT Tax Aware Aust • Strong long term track record of
Slide 41: Charitable/For Purpose Market
CHARITABLE/FOR PURPOSE MARKET • Large, well governed and growing • Net Assets ~$300b; Investible assets estimated at ~$130b • Estimated $90bn investible assets held by top 3,000 organisations 20% of the sector owns 90% of investible assets • EQT has deep networks through 35 person Philanthropy and 4
Slide 42: Asset Management – Summary
ASSET MANAGEMENT – SUMMARY Highly profitable, scalable function with robust growth options • Diversified and stable client base of $6.1b • Efficient and effective in-house management • Solid 14% compound growth over last 4 years • Significant growth options: 1. Product Development: Further tailored
Slide 43: Corporate & Superannuation Trustee Services
CORPORATE & SUPERANNUATION TRUSTEE SERVICES Andrew Godfrey Executive General Manager, Corporate & Superannuation Trustee Services
Slide 44: CSTS – Vision & Strategy
CSTS – VISION & STRATEGY To be the leading trustee in Australia Fund services: premium provider to domestic and global fund managers in Australia Superannuation: optimising member outcomes and being an independent trustee of choice GROWTH SCALABILITY & EFFICIENCY CAPABILITY • Grow Corporate via new
Slide 45: CSTS – Leadership Team
CSTS – LEADERSHIP TEAM ANDREW GODFREY Executive General Manager, Corporate & Superannuation Trustee Services 2 years KAREN COURT Executive Assistant 4 years DAVID WARREN JOHNNY FRANCIS JAMES CONNELL CRISTINA STAREK MARY O’CONNOR RUSSELL BEASLEY MICHAEL TROPEA General Manager, General Manager, Genera
Slide 46: A Continuing Strong Growth Story
A CONTINUING STRONG GROWTH STORY Corporate Superannuation 140 45 80 900,000 130 115 40 70 800,000 120 35 700,000 101 99 60 100 93 30 600,000 Membership 50 82 500,000 Revenue 80 FUS 25 40 FUM 69 400,000 60 20 30 300,000 15 20 40 200,000 15 15 14 14 10 11 12 12 10 100,000 20 5 - 0 FY19 FY20 FY21 FY22
Slide 47: Trusted by Major Financial Institutions & Clients
TRUSTED BY MAJOR FINANCIAL INSTITUTIONS & CLIENTS Australian fund Global fund Superannuation managers managers providers & 47
Slide 48: Unrivalled Access to More Than 50 Third Party Service Providers
UNRIVALLED ACCESS TO MORE THAN 50 THIRD PARTY SERVICE PROVIDERS CUSTODIANS AUDITORS UNIT REGISTRY / ADMINISTRATION EXCHANGES & MARKET MAKERS INSURERS PRIME BROKERS
Slide 49: CSTS – Superannuation
CSTS – SUPERANNUATION
Slide 50: CSTS – Superannuation
CSTS – SUPERANNUATION OUR GROWTH CSTS – Superannuation is Australia’s leading specialist, independent 80 900,000 superannuation trustee with capabilities that 800,000 can be scaled and leveraged across multiple 70 fund types using a common infrastructure. 700,000 60 600,000 OVERVIEW 50 Membership FU
Slide 51: CSTS – Superannuation – Vision & Strategy
CSTS – SUPERANNUATION – VISION & STRATEGY To be the leading superannuation trustee in Australia, optimising member outcomes and being an independent trustee of choice GROWTH SCALABILITY & EFFICIENCY CAPABILITY • Growth in FUM of existing funds and via • Grow “well” to support earnings margins • Focu
Slide 52: CSTS – Superannuation – Value Proposition
CSTS – SUPERANNUATION – 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 • Management of the relationship with the regulator and regulatory change specia
Slide 53: Australian Superannuation Industry Dynamics
AUSTRALIAN SUPERANNUATION INDUSTRY DYNAMICS Over 2024 Australia’s superannuation and this growth is expected to continue to the system has continued to grow from: point where the system is projected to be: $3.5tn to $3.9tn $10tn or ~170% (as of 30 June 2023) (as of 30 June 2024) (by the early 2040s)
Slide 54: 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 55: CSTS – Corporate
CSTS – CORPORATE
Slide 56: CSTS – Corporate
CSTS – CORPORATE OUR GROWTH CSTS – Corporate is the market leader in the provision of comprehensive independent 140 45 Responsible Entity and Trustee Services to 130 Australian and global fund managers. 120 115 40 101 35 99 100 93 30 82 Revenue OVERVIEW 80 25 FUM 69 • Continued strong growth in Resp
Slide 57: Overview
OVERVIEW LEADING AUSTRALIAN PROVIDER OF FIDUCIARY SERVICES TO MANAGED FUNDS CSTS – CORPORATE Debt Capital Markets Fund Services (FS) Custody and Real Assets Sub-Business Unit (DCM) & Securitisation Clients Local & international Property investment Debenture and securitization investment managers man
Slide 58: Composition of Portfolio
COMPOSITION OF PORTFOLIO Fund Manager Locations 1 Asset Allocation FUS1 Fund Types (by FUS)1 Asia Unregistered 3% funds - NZ Other discretionary, 1% 10% 3% Australian Equities, 19% Other (Property, Australian Fixed Unregistered Multi-Strategy, Income, 8% funds - non- UK/EUR Alternatives), 28% discre
Slide 59: CSTS – Corporate – Vision & Strategy
CSTS – CORPORATE – VISION & STRATEGY To be the leading premium provider of trustee services to domestic and global fund managers in Australia GROWTH SCALABILITY & EFFICIENCY CAPABILITY • Benefit from growth in existing funds via • Grow “well” to support earnings margins, • Focused on our fiduciary d
Slide 60: CSTS – Corporate – Value Proposition
CSTS – CORPORATE – VALUE PROPOSITION Assisting investment • Material reduction in risk for the investment manager • 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
Slide 61: Summary
SUMMARY Market leader across Superannuation Trustee and Responsible Entity Services Continued strong growth across all segments Opportunities for enhanced future growth A focus on scalability and efficiency 61
Slide 62: People
PEOPLE Mick O’Brien Managing Director
Slide 63: Our purpose is to help people take care of their future
Our purpose is to help people take care of their future A company with purpose, forming trusted relationships to look after the interests of beneficiaries, members and investors
Slide 64: Our Values
OUR VALUES We demonstrate accountability PARTNER We partner with you We build relationships, collaborate and overcome challenges together. 64
Slide 65: 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 66: Regulatory Landscape
REGULATORY LANDSCAPE Mick O’Brien Managing Director
Slide 67: Regulatory Landscape – Opportunity & Risk
REGULATORY LANDSCAPE – OPPORTUNITY & RISK Supervisory Intensity Regulatory Change and Focus Increasing APRA ASIC OTHERS • Thematic reviews • Frequency of notices to • Operational Risk • Private markets • Climate related produce Management • Growth of Private financial disclosure • Investigations • F
Slide 68: Risk Management
RISK MANAGEMENT FIDUCIARY DUTY Our purpose Reputational Compliance Strategy Financial 3 lines of defense customised for 1st Line 2nd Line Internal Audit Business Unit independent model (note independence) Centralized Enterprise Risk Culture Foundations Governance structures Operating model 68
Slide 69: Technology
TECHNOLOGY Phing Lee Chief Technology Officer
Slide 70: Clear Principles Underpinning the Technology Strategy
CLEAR PRINCIPLES UNDERPINNING THE TECHNOLOGY STRATEGY Buy Technology Secure Australian Data Centers (Not build) Out of the box functionality Application Program Interface (customization limited) (API) ready Cloud first (SaaS) Everything Mobile/Digital ready
Slide 71: Technology Team to Only Configure, Customise & Develop Solutions in These Areas
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
Slide 72: Technology Team
TECHNOLOGY TEAM PHING LEE Chief Technology Officer 12 years SANDRA HANNA DAVID HOLT BRENDAN KERRY JASON KWONG CHAD CARROLL Head of Solutions Delivery Head of Infrastructure & Enterprise & Solutions Head of Projects & Head of Business 10 years Cyber Security Architect Transformation Process Intellige
Slide 73: Nearing End of Three Year Transformation
NEARING END OF THREE YEAR TRANSFORMATION TO DELIVER A MORE CONTEMPORARY TRUSTEE COMPANY IMPLEMENTATION TO END OF FY 25 ON TRACK FY26 Workday Implementation Implementation Cyber Security Implementation of new TWS of new Active Program of the CSTS Phase 2 platform Philanthropy Data & Implementation fo
Slide 74: FY26-FY27 Plans
FY26-FY27 PLANS Technology investments will be included in the normal operating budget. Investment shifts from TWS to CSTS. CSTS TWS Corporate Greater focus & investment Targeted value adding initiatives Ongoing investment in continuous • Implementation of workflow • Digital solutions and products (
Slide 75: Outlook
OUTLOOK
Slide 76: Outlook
OUTLOOK Positive outlook with earnings growth for 2H25 and FY26 expected to be supported by: • FUMAS growth in two months to February of $7.1b, ie 3.2% - Equity market retraction in last month will negatively impact revenue • Announced aggregate expense reduction of $6m in second half vs first half,
Slide 77: Questions
QUESTIONS
Slide 78: Thank You
THANK YOU