Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — H1 FY2014 Earnings Presentation
18 slides from Eqt's earnings presentation, Feb 27, 2014
Slide 1: Equity Trustees – Strong Half Year Result
27 February 2014 Equity Trustees – Strong Half Year Result For personal use only Equity Trustees Limited (ASX: EQT) today releases its audited results for the six months to 31 December, and confirms a strong lift in half year revenue of 16.4% and a 22.1% increase in net profit after tax compared wit
Slide 2: Equity Trustees Limited (EQT) Half Year Results to 31 December 2013
For personal use only Equity Trustees Limited (EQT) Half Year Results to 31 December 2013
Slide 3: EQT at a glance
EQT at a glance For personal use only •Founded 1888 12 month share price performance •ASX market cap $220m (at $22.70) $24.00 •1,600 shareholders; 50% retail $22.00 •220 employees in 4 locations $20.00 •Two revenue business units: $18.00 1.Private Wealth Services $16.00 2.Corporate Fiduciary & Fund
Slide 4: Overview – HY to Dec 2013
Overview – HY to 31 Dec 2013 For personal use only • Both Business Units generated an Revenue +16.4% organic increase in revenue Operating margin 26.1% • Investment in efficiency and business growth Operating Profit before • Margin maintained at 26% tax +14.0% • Strong EPS gain and lift in ful
Slide 5: Overview – HY group results
Overview – HY group results For personal use only Half Year Half Year 31 Dec 2012 Change 31 Dec 2013 $m $m Fav/(Unfav) Operating revenue 26.1 22.5 16.4 % Operating expenses (19.3) (16.5) (17.3 %) Operating profit before tax 6.8 6.0 14.0 % Income tax expense (1.9) (1.7) Operating profit after tax 4.9
Slide 6: Progress of key internal initiatives
Progress of key internal initiatives For personal use only Initiative Status • Strategic Business Development Project – positive 1 Private Wealth Services progress 2 Asset Management • New team in place – gaining traction Project “Foundation” 3 • On schedule for delivery (IT/Admin efficiency) 4 • Si
Slide 7: HY Revenue
HY Revenue For personal use only Operating Revenue increased 16.4% $ 26.1m 16.4% $22.5m increase $ 20.7m $18.7m $ 16.9m 2010 2011 2012 2013 2014 6
Slide 8: HY Operating revenue – composition
HY Operating revenue – composition For personal use only Corporate Fiduciary & Financial Services Private Wealth Services $ 26.1m $22.5m $ 20.7m 41% $ 18.7m $ 16.9m 39% 36% 39% 40% 59% 63% 61% 61% 60% 2010 2011 2012 2013 2014 7
Slide 9: HY Expenses
HY Expenses For personal use only Operating Expenses increased 17.3% $19.3m $16.5m $15.7m $13.7m $12.0m 2010 2011 2012 2013 2014 8
Slide 10: HY Operating margin
HY Operating margin For personal use only Operating Profit (Pre tax) ($m) Operating Margin (%) 9.0 35.0% 28.7% 26.6% 26.1% 7.0 26.8% 24.3% 25.0% 6.8 5.0 5.8 15.0% 4.9 5.0 5.0 3.0 5.0% 2010 2011 2012 2013 2014 9
Slide 11: HY Reported earnings per share
HY Reported earnings per share For personal use only Reported earnings per share at 58.3cps Earnings Per Share Weighted average shares on issue ('000) 9,500 58.30 9,235 49.32 44.23 43.85 45.08 9,000 8,938 8,589 8,500 8,441 8,291 8,000 2010 2011 2012 2013 2014 2010 2011 2012 2013 2014 10
Slide 12: Returns to shareholders
Returns to shareholders For personal use only Increased fully-franked interim dividend Final (cps) Interim (cps) 110 100 92 85 60 50 50 45 46 - 50 50 46 40 42 2010 2011 2012 2013 2014 11
Slide 13: Sustained shareholder return
Sustained shareholder return For personal use only 1 Jul 2005 to 31 Dec 2013 EQT total shareholder returns. 350 Assumes all dividends are reinvested EQT total shareholder return + 140.9% S&P/ASX 200 Accum. Index + 81.2% 300 S&P/ASX 200 Accum. +87.1% Financials Index 250 200 150 100 50 Base (100) tak
Slide 14: Business units - HY operations & performance
Business units - HY operations & performance For personal use only HY Revenue HY FUM/A Target market / Business unit Key services 31 Dec 13 vs 31 Dec 13 vs channel 31 Dec 12 31 Dec 12 Private Wealth • Trusts & Estates • Private clients $15.5m $3,669m • Philanthropy • Aged Care clients and Services +
Slide 15: Business unit HY overview – PWS
Business unit HY overview – PWS For personal use only Operating revenue up 13.6% to $15.5m FUM at 31 December 2013 up 18% to $3,669m 3,669 15.5 13.7 3,109 13.1 3,067 2,914 3,021 11.4 10.1 H1FY10 H1FY11 H1FY12 H1FY13 H1FY14 H1FY10 H1FY11 H1FY12 H1FY13 H1FY14 14
Slide 16: Business unit HY overview – CFFS
Business unit HY overview – CFFS For personal use only Operating revenue up 21.6% to $10.6m FUM at 31 December 2013 up 33% to $33,463m 33,463 10.6 25,169 8.7 7.2 18,599 7.6 18,105 6.8 15,499 H1FY10 H1FY11 H1FY12 H1FY13 H1FY14 H1FY10 H1FY11 H1FY12 H1FY13 H1FY14 15
Slide 17: Business HY update and summary
Business HY update and summary For personal use only • Business performing strongly - debt free, EPS and dividend increased • Solid growth in operating performance – organic revenue gains • Project Foundation implementation set to achieve main objectives by year end • PWS strategic development plan
Slide 18: Disclaimer
Disclaimer For personal use only Disclaimer Equity Trustees Limited ABN 46 004 031 298, Australian Financial Services Licence No 240975. This document was prepared by Equity Trustees Limited (“EQT”) and is only provided for information purposes. It is not intended to take the place of professional a