Slide 1: Equity Trustees Audited Full Year Results
29 August 2013 For personal use only Equity Trustees Audited Full Year Results Increase in Profit and Fully Franked Final Dividend Equity Trustees Limited (ASX: EQT) today confirmed its full year financial results and final dividend, which are unchanged from the unaudited results announced on 1 Augu
Slide 2: The Trust Company and business progress
For personal use only The Trust Company Regarding the company’s takeover offer for TRU Mr Killen said, “As announced recently, we are currently engaging with TRU to exchange information that will help each company assess relevant aspects of the other’s position and operations. We appreciate that the
Slide 3: Outlook, contacts and disclaimer
For personal use only Mr Burns said, “With strong growth in operating profits, improved margins, a good yield, attractive RoE, positive cash flow, debt-free balance sheet and strong development potential we can be optimistic about the company’s future. Regardless of the outcome of the TRU takeover t
Slide 4: Equity Trustees Limited (EQT) Full Year Results to June 2013
For personal use only Equity Trustees Limited (EQT) Full Year Results to 30 June 2013
Slide 5: Overview – FY2013
Overview – FY2013 For personal use only • Operating profit increased by 18%, Net profit after tax up 3%. • Revenue growth of 9% - all organic, improvement in operating margin – to 27.7%, up 2.1%. • Both major business activities grew revenue, major gain was in CFFS. • Total dividend increased by 8%
Slide 6: Overview – group results
Overview – group results For personal use only 2013 2012 Change $m $m Operating revenue 46.8 43.0 9% Operating expenses (33.9) (32.0) (6 %) Operating profit before tax 12.9 11.0 18 % Income tax expense (3.6) (3.1) Operating profit after tax 9.3 7.9 18 % Non-operating items (net of tax) 0.5 0.5 TRU A
Slide 7: Revenue
Revenue For personal use only Revenue increased 9% (excludes profit on sale of investments) Investment Income ($m) Business Unit Revenue ($m) $ 46.8m $ 43.0m 0.4 $ 39.2m 0.3 9% 0.6 increase $ 33.8m $ 34.5m 1.1 0.9 46.4 42.7 38.6 32.7 33.6 2009 2010 2011 2012 2013 4
Slide 8: Expenses
Expenses For personal use only Operating costs ($m) $33.9m $32.0m 9% 6% $28.4m increase increase $22.9m $23.8m 2009 2010 2011 2012 2013 5
Slide 9: Operating margin
Operating margin For personal use only Operating Profit (Pre-tax) ($m) Operating Margin (%) 32.4% 31.1% 27.5% 27.7% 25.6% 12.9 10.9 10.7 10.8 11.0 2009 2010 2011 2012 2013 6
Slide 10: All Ordinaries Year on Year Comparison
All Ordinaries Year on Year Comparison For personal use only All Ordinaries Index Year on Year All Ords 2012/13 All Ords 2011/12 All Ords 2010/11 All Ords 2009/10 5200 4700 4200 3700 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun 7
Slide 11: Operating revenue – change
Operating revenue – change For personal use only Operating revenue up 9% to $46.8m (Excludes profit on sale of investments) Investment Income ($m) Operating revenue movement compared to Business Units ($m) prior year $46.8m $43.0m 0.4 $39.2m 0.3 0.6 $33.8m $34.5m + $2.9m + $0.1m $46.8m +19% +35% +9%
Slide 12: Reported earnings per share
Reported earnings per share For personal use only Reported earnings per share at 96.65¢ per share Earnings Per Share Weighted average shares on… EPS (excluding TRU acquisition cost) 9,000 8,971 109.59 8,663 98.45 96.60 97.01 96.74 96.65 8,500 8,483 8,328 8,138 8,000 2009 2010 2011 2012 2013 2013* 20
Slide 13: Returns to shareholders
Returns to shareholders For personal use only Full-year dividend as percentage of NPAT Full-year, fully-franked dividend 2013: Excludes TRU Acquisition Costs. Reflecting a current yield of approximately 6% before franking credits Target Ratio: 70-90% of NPAT Interim (cps) Final (cps) 120% 111.7% 113
Slide 14: Sustained shareholder return
Sustained shareholder return For personal use only EQT total shareholder 350 Assumes all dividends are reinvested. 1 July 2005 to 30 June 2013 EQT total shareholder return + 107.0% 300 S&P/ASX 200 Accum. Index + 59.6% 250 200 150 100 Base (100) taken at 1 July 50 S&P/ASX 200 0 06/05 12/05 06/06 12/0
Slide 15: Business units – operations & performance
Business units – operations & performance For personal use only Target market / Revenue FUM/FUA Business unit Key services channel 2013 vs 2012 2013 vs 2012 Private Wealth Services • Personal Estates & • Private clients $27.8m $3,254m (PWS) Trusts • Business to + 2.7% + 13.1% • Philanthropy business
Slide 16: Business unit overview – PWS
Business unit overview – PWS For personal use only Operating revenue up 2.7% to $27.8m FUM/FUA at 30 June 2013 up 13.1% to $3,254m Superannuation Pilanthrophy Trust & Estate 3,254 Wealth Advice 3,022 2,878 2,569 2,621 1,454 1,448 1,265 1,105 1,192 27.0 27.8 450 392 390 24.3 368 334 442 19.3 20.2 467
Slide 17: Business unit overview – PWS
Business unit overview – PWS For personal use only • PWS revenue up 3%, all organic, despite some lines experiencing reductions, partly due to external factors. • Major development and growth project launched – multi-period, to improve distribution, cross-sell, revenue per client. 2013 highlights •
Slide 18: Business unit overview – CFFS
Business unit overview – CFFS For personal use only Operating revenue up 18.6% to $18.6m FUM/FUA at 30 June 2013 up 37.6% to $29,033m Responsible Entity Funds Management 29,033 21,100 19,187 15,875 25,254 18.6 12,236 18,354 15.6 16,963 14.6 13.7 13,995 13.4 10,604 2,746 3,779 1,632 1,880 2,223 2009
Slide 19: Business unit overview – CFFS
Business unit overview – CFFS For personal use only Responsible Entity Business Net inflows for funds distributed by EQT Number of Funds ($m) Number of managers $1,000 158 $750 139 123 113 105 $500 65 58 51 $250 41 34 $- 2009 2010 2011 2012 2013 2009 2010 2011 2012 2013 16
Slide 20: Business unit overview – CFFS
Business unit overview – CFFS For personal use only In Corporate Fiduciary Services: • Added a net 19 funds, servicing a net increase of 7 managers. (Closed 14 unviable funds, ended 8 manager relationships.) • Expanded Sydney team – closer manager relationships and new business development activitie
Slide 21: Business update and summary
Business update and summary For personal use only The environment • FoFA and Stronger Super (MySuper & SuperStream) impacts still being absorbed. Increased business complexity and costs. Consolidation drive eased. • CAMAC review of philanthropy roles – report issued, complex and challenging recommen
Slide 22: Directions
Directions For personal use only • Significant growth opportunity in private wealth management services. Increasing revenue per client, distribution, and growth in will bank are key goals. • Progression of Project Foundation – increases efficiency, improves controls, gives room for growth at lower m
Slide 23: Disclaimer
Disclaimer For personal use only Equity Trustees Limited ABN 46 004 031 298, Australian Financial Services Licence No 240975. This document was prepared by Equity Trustees Limited and is only provided for information purposes. It is not intended to take the place of professional advice and you shoul