Eqt Holdings Ltd. · ASX:EQT
Eqt — FY2018 Earnings Presentation
38 slides from Eqt's earnings presentation, 2018
Slide 1: 2018 Full Year Results Presentation
Mick O’Brien, Managing Director Philip Gentry, Chief Financial Officer and Chief Operating Officer
Slide 2: Agenda
AGENDA (1) 2018 IN REVIEW (2) FINANCIALS (3) STRATEGY UPDATE AND OUTLOOK (4) QUESTIONS
Slide 3: 2018 in Review
INVESTOR PRESENTATION 2018 IN REVIEW
Slide 4: 2018 in Review
• • • • • • • • *FUMAS: Funds under management, administration, advice and supervision 2018 IN REVIEW 4
Slide 5: Momentum Building
MOMENTUM BUILDING ® DRIVEN BY ORGANIC GROWTH, PARTNERSHIPS AND ACQUISITIONS * Core businesses performing strongly — Significantly improved Trustee and Wealth Services (TWS) performance — Continued, consistent Corporate Trustee Services (CTS) performance * Acquisitions and partnerships delivering — S
Slide 6: FUMAS and FUS growth
$b $b 16 80 15.1 14 70 p p 71.1 Aon*** 12 60 60.3 56.8 10 50 10.0 10.1 47.9 8 40 35.6 6 30 4 20 2 10 - - FY15 FY16 FY17 FY18 FY14 FY15 FY16 FY17 FY18 * FUS: Funds under supervision Note: TWS FUMAS has been updated to more accurately reflect underlying **FUMAS: Funds under management, administration,
Slide 7: Estate management and trusts funds
$b $b 2.0 0.35 1.8 0.30 1.6 1.4 0.25 1.2 0.20 1.0 0.8 0.15 0.6 0.10 0.4 0.2 0.05 - Estate Management Testamentary Trusts Perpetual Charitable - Trusts Community Trusts Living Donors Compensation Trusts Jun-16 Jun-17 Jun-18 Jun-16 Jun-17 Jun-18 • • • • • • *FUMAS: Funds under management, administrati
Slide 8: 2018 in Review
p p 2018 IN REVIEW 8 Note: Excludes TCL clients
Slide 9: Clarity of Purpose: T4 Targets
CLARITY OF PURPOSE: T4 TARGETS T3 GROWING SHAREHOLDER VALUE T2 LIFTING EMPLOYEE ENGAGEMENT T4 DEEPENING COMMUNITY IMPACT @ MEASUREMENT: T1 Net promoter score Net loyalty score T2 Engaged and enabled staff T3 Earnings per share growth and FUMAS growth T4 Granting and volunteering 2018 INREVIEW 9
Slide 10: Net promoter and loyalty scores
20 20 • 15 15 +15 +12 +12 10 10 • +5 5 5 - - Jun-17 Jun-18 Jun-17 Jun-18 (5) (5) (10) (10) Jun-17 Jun-18 Jun-17 Jun-18 *Net Promoter score – net measure of clients willing to recommend EQT 2018 IN REVIEW 10 **Net Loyalty score – net measure of clients prepared to purchase another EQT product or serv
Slide 11: Employee engagement
80 80 70 70 60 60 50 50 40 40 30 30 20 20 10 10 - - GI Norm Jun-16 Jun-17 Jun-18 GI Norm Jun-16 Jun-17 Jun-18 2018 IN REVIEW 11
Slide 12: 2018 in Review
$b 90 % 30 85 86.2 • 20 80 75 10 71.4 • 70 66.9 65 - Jun-16 Jun-16 Jun-17 Jun-18 60 (10) 55 50 (20) 45 (30) 40 Jun-16 Jun-17 Jun-18 FY16 FY17 FY18 FY16 FY17 FY18 2018 IN REVIEW 12 *FUMAS: Funds under management, administration, advice and supervision
Slide 13: Community impact and granting
$m 85 80.2* 80 • 75 71 70 69.2 67 • 65 60 55 50 Health Human Services 45 Education Religion Community & Economic Development Arts & Culture 40 Indigenous Animal Welfare Jun-16 Jun-17 Jun-18 Other Environment Children & Youth Agriculture Women * This includes $69.2m from charitable trusts and $11m in
Slide 14: Financials
INVESTOR PRESENTATION FINANCIALS
Slide 15: Financials
• p p • q • p p • p p • p p p p FINANCIALS 15
Slide 16: Financials
46 15 $m $m 44 13 42 11 40 9 38 7 36 5 1H16 2H16 1H17 2H17 1H18 2H18 1H16 2H16 1H17 2H17 1H18 2H18 cents 60 45 Cents per share 50 40 40 35 30 30 20 10 25 - 20 1H16 2H16 1H17 2H17 1H18 2H18 1H16 2H16 1H17 2H17 1H18 2H18 FINANCIALS 16
Slide 17: Underlying organic revenue growth
• 4.9% underlying organic revenue growth • ~4% market growth • Significant revenue contribution from acquisitions more than offsetting single client exit *FUMAS: Funds under management, administration, advice and supervision FINANCIALS 17
Slide 18: Significant items
• M&A Activity 0.3 1.0 • Restructuring costs 1.6 2.3 Business Assurance Project 0.7 1.9 Other 0.4 2.6 Total 3.0 7.8 FINANCIALS 18
Slide 19: Operating cash flow
OPERATING CASH FLOW $m 100 • 90 5.0 10.9 (0.1) 80 (3.4) 31.8 (5.5) • 70 (6.7) 60 (11.6) 60.7 50 40 40.3 30 • 20 10 - Opening Net cash Redemption Proceeds Exchange Other TCL & OVRE Income tax Payment of Closing Balance flow from of from rate Investing Acquisitions paid dividends Balance 30 30 Jun 17
Slide 20: Revenue bridge FY17 to FY18
$m 61 • 60 2.8 59.7 59 58 57 1.5 56 55 1.6 55.4 • 54 53.8 53 52 51 50 FY17 Sandhurst Adjusted Market Underlying FY18 Revenue impact on Organic FY17 FUMAS* Growth *FUMAS: Funds under management, administration, advice and supervision ***Asset Management includes TWS Investment Mandates, Superannuatio
Slide 21: Financials
71.1 60.3 • • * FUS: Funds under supervision FINANCIALS 21
Slide 22: Financials
• • 67.8 23.5 • 213.1 7.6 • 312.0 14.7 • 20.0 23.4 58.1 253.9 253.9 FINANCIALS 22 * A contingent liability has been disclosed in the financial statements relating to an objection process with the ATO, regarding the tax treatment of an acquisition made in 2011. EQT believes it has correctly calculate
Slide 23: Financials
• • • • • • • * Based on current portfolio of funds and activities FINANCIALS 23
Slide 24: Financial summary
SUMMARY SUBSTANTIAL IMPROVEMENT IN FINANCIAL PERFORMANCE ¢ Strong revenue growth * Disciplined expense management * Operating margins enhanced * Significant increase in NPAT and dividends * Benefits flowing from corporate restructure and operating model review * Strategic initiatives OVRE, TCL and A
Slide 25: Strategy Update and Outlook
STRATEGY UPDATE AND OUTLOOK
Slide 26: Strategy Update and Outlook
STRATEGY UPDATE AND OUTLOOK 26
Slide 27: Strategy Update and Outlook
• • • STRATEGY UPDATE AND OUTLOOK 27
Slide 28: Strategy Update and Outlook
• • • STRATEGY UPDATE AND OUTLOOK 28
Slide 29: Strategy Update and Outlook
• • • • STRATEGY UPDATE AND OUTLOOK 29
Slide 30: Strategy Update and Outlook
STRATEGY UPDATE AND OUTLOOK 30
Slide 31: Strategy Update and Outlook
• • • • • • STRATEGY UPDATE AND OUTLOOK 31
Slide 32: Strategy Update and Outlook
• • • • • • STRATEGY UPDATE AND OUTLOOK 32
Slide 33: Strategy Update and Outlook
• • • • STRATEGY UPDATE AND OUTLOOK 33
Slide 34: Strategy Update and Outlook
• • • STRATEGY UPDATE AND OUTLOOK 34
Slide 35: Strategy Update and Outlook
• • STRATEGY UPDATE AND OUTLOOK 35
Slide 36: Questions
INVESTOR PRESENTATION QUESTIONS
Slide 37: Thank You
THANK YOU
Slide 38: 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