Slide 1: 1H25 Results Presentation
Perpetual Limited (ASX:PPT) 1H25 Results Presentation rsonal use only For the half year ending 31 December 2024 Thursday 27 February 2025 Presented by: Bernard Reilly, CEO & Managing Director Chris Green, Chief Financial Officer
Slide 2: Disclaimer
Disclaimer Important information The Product Disclosure Statements (PDS) for the Perpetual Asset Management rsonal use only This presentation is in summary form and is not necessarily complete. It should be Australia funds are issued by Perpetual Investment Management Limited ABN 18 read together wi
Slide 3: 1H25 Highlights
1H25 Highlights rsonal use only Bernard Reilly CEO and Managing Director half year ending 31 December 2021
Slide 4: 1H25 Summary
1H25 Summary • Scheme with KKR terminated and Perpetual will progress the business separation program that is well underway and the sale of Wealth Management rsonal use only • Revenue and underlying profit growth driven by strong performance in Corporate Trust and Wealth Management and continued gro
Slide 5: Quality businesses that have continued to deliver value to shareholders
Quality businesses that have continued to deliver value to shareholders rsonal use only Asset Management Corporate Trust Wealth Management UPBT1 UPBT1 UPBT1 7% 8% 12% 95.8 102.6 40.8 44.0 26.0 29.2 1H24 1H25 1H24 1H25 1H24 1H25 Separation will continue with leaner central functions, enabling greater
Slide 6: Three quality businesses
Three quality businesses rsonal use only Bernard Reilly Chief Executive Officer year ending 31 December 2021
Slide 7: Asset Management
Asset Management Stable margins, supported by diversified capabilities and client base across regions • Revenue of $455.0 million in 1H25, up 4% on $439.6 million in 1H24. UPBT was $102.6 million, up 7% on $95.8 million in 1H24 − rsonal use only Underpinned by positive market movements and investmen
Slide 8: Early priorities for Asset Management
Early priorities for Asset Management We set four priorities for Asset Management at our FY24 AGM rsonal use only 1 Confirm future operating model 2 Right size the cost base 3 Reset the distribution strategy 4 Stabilise J O Hambro 8
Slide 9: New operating model for Asset Management
1 New operating model for Asset Management Transforming the way we work to improve efficiency and accountability rsonal use only What we have been Where we are going • Multi-boutique model • Multi-boutique model remains focussed on preserving the unique cultures and capabilities • Emphasis on a glob
Slide 10: Simplification Program uplifted to $70-$80 million annualised cost savings
2 Transition to new operating model sees Simplification Program uplifted from $25-$35 million1 to $70-$80 million2 annualised cost savings • Targeting $70 - $80 million in annualised cost savings (pre-tax) by the end of FY27 rsonal use only • Program supported by disciplined cost and capital managem
Slide 11: Reset distribution strategy
3 Reset distribution strategy AUM breakdown as at 31 December 2024 rsonal use only 10% • Scale our international distribution capability to support new product 31% launches in target markets AUM BY • Rebalance distribution resources across regions REGION Americas • Focus institutional distribution o
Slide 12: Stabilise J O Hambro
4 Stabilise J O Hambro Revitalising an investment platform that attracts and retains high quality talent Observations rsonal use only • Respected brand and high-quality investment capabilities that have potential to be extended • Strong platform to add new investment capabilities • High concentratio
Slide 13: A new Asset Management strategy
A new Asset Management strategy Transform and Grow A leading multi-boutique asset management business providing institutional-grade strength, global distribution and operational excellence to rsonal use only agile and unique boutique businesses Strategic imperatives SIMPLIFICATION OPERATIONAL EXCELL
Slide 14: Corporate Trust
Corporate Trust A quality, sector leading fiduciary and digital solutions provider with long-term client relationships rsonal use only Debt Managed Perpetual Market Funds Digital Services Supporting a diverse client Services Delivering fiduciary, agency, Enabling the financial base ranging from dome
Slide 15: Corporate Trust: Consistent growth across each division
Corporate Trust Consistent growth delivered across each division • UPBT was $44 million, up 8% on 1H24; Revenue was $99.2 million, up 9% on 1H24 with growth across all business lines − Debt Market Services (DMS) revenue increased by 12% compared to 1H24, driven by growth in the securitisation portfo
Slide 16: Wealth Management
Wealth Management One of Australia’s leading advisory services business focused on the comprehensive needs of families, businesses, professionals and communities rsonal use only Private Specialised segment Delivering fiduciary, agency, A trusted partner to not-for- Trustee Non-Profit & Wealth model
Slide 17: Wealth Management: Solid growth in market and non-market revenues
Wealth Management Solid growth in market and non-market revenues • UPBT of $29.2 million, up 12% on 1H24; revenue was up 7% to $118.7 million driven by strong organic growth across all segments rsonal use only − Non-market related revenue grew 6% supported by growth in advisory services and a strong
Slide 18: 1H25 Group Financials
1H25 Group Financials rsonal use only Chris Green Chief Financial Officer year ending 31 December 2021
Slide 19: 1H25 Financial Results Summary
1H25 Financial Results Summary 1H25 2H24 1H24 1H25 v 1H25 v $m $m $m 2H24 1H24 Summary points: rsonal use only For the period (%) (%) • Revenue growth driven primarily by AUM and FUA Operating revenue 686.2 677.2 657.8 1 4 growth across business Operating expenses (479.6) (474.3) (451.7) (1) (6) • R
Slide 20: 1H25 UPAT analysis
1H25 UPAT analysis rsonal use only 3.2 3.2 6.9 (5.5) (5.5) 760.9 98.2 67.0 98.2 100.5 298.3 275.3 1H24 Asset Management Wealth Management Corporate Trust Group Support Services YoY Tax Movement 1H25 UPAT UPBT UPBT UPBT UPBT UPAT Higher AUM and Continued organic growth Solid growth in all three Movem
Slide 21: UPAT to NPAT reconciliation
UPAT to NPAT reconciliation $88.5m of significant items mainly attributable to Strategic Review and impairment rsonal use only (2.0) (16.5) (24.4) 100.5 (11.0) (2.0) 26.2 (5.6) (27.7) (25.5) 5 12.0 1H25 Barrow Hanley Pendal Group Strategic Review Simplification Other Non-cash Unrealised Accrued ince
Slide 22: Expense analysis
Expense analysis 1H25 expense growth1 of 4% Controllable cost growth % 4% -0% rsonal use only 4% change 794.6 4.2 5.5 5.5 (3.9) (0.3) (0.4) 7.8 2.3 837.0 (0.7) 543.8 External Factors 543.1 522.4 1H24 Variable remuneration Barrow Hanley 25% Staff growth Lease make-good Technology Simplification Progr
Slide 23: Cashflow analysis
Cashflow analysis rsonal use only Key themes Free Cash Flow ($26.4m)2 17.7 271.3 • Negative free cash 39.3 125.0 flow driven by funding of separation activities 221.3 • Increase in borrowings (45.2) predominantly due to (13.5) (7.0) Strategic Review including the 8.2 136.1 separation program (58.8)
Slide 24: Balance sheet
Balance sheet 31 Dec 20242 30 Jun 20242 1H25 v For the period $m $m 2H24 (%) rsonal use only • Goodwill and other intangibles increased due to Cash 271.3 221.3 23 foreign exchange movements and includes the impairment charge relating to J O Hambro Other financial assets 395.9 381.7 4 Goodwill & othe
Slide 25: Debt position
Debt position 31 Dec 20242 30 Jun 20242 rsonal use only 1H25 v For the period $m $m 2H24 (%) • Gearing ratio1 was 32.0% (2H24: 28.2%) as at 31 December 2024 Gross Debt 840.3 685.5 23 • Debt facilities denominated in USD and GBP are Cash 271.3 221.3 23 partially hedged by offshore earnings Net Debt 5
Slide 26: Summary & Outlook
Summary & Outlook rsonal use only Bernard Reilly CEO and Managing Director half year ending 31 December 2021
Slide 27: Outlook and Priorities
Outlook and Priorities • Progress the internal separation of our businesses rsonal use only • Deliver cost benefits from the Simplification Program • Execute on new strategy for Asset Management including stabilising J O Hambro • Support Corporate Trust in continuing to deliver growth • Reduce gross
Slide 28: Contacts
Contacts rsonal use only Emma Rumble Susie Reinhardt Global Head of Corporate Affairs Head of Investor Relations & Sustainability emma.rumble@perpetual.com.au susie.reinhardt@perpetual.com.au +612 9229 3998 +612 9125 7047 Connect with us at: About Perpetual perpetual.com.au pendal.com.au Head Office
Slide 29: Appendix: Detailed divisional result commentary
Appendix rsonal use only Detailed divisional result commentary
Slide 30: Asset Management
Asset Management For the period 1H25 2H24 1H24 1H25 v 2H24 1H25 v 1H24 rsonal use only $m $m $m (%) (%) Revenue 455.0 447.9 439.6 2 4 Operating expenses (334.0) (331.4) (321.2) (1) (4) EBITDA 121.0 116.6 118.4 4 2 Depreciation & amortisation (10.3) (8.6) (9.8) (20) (5) Equity remuneration (6.9) (2.4
Slide 31: Corporate Trust
Corporate Trust For the period 1H25 2H24 1H24 1H25 v 2H24 1H25 v 1H24 rsonal use only $m $m $m (%) (%) Debt Market Services revenue 42.6 40.2 38.1 6 12 Managed Funds Services revenue 43.7 42.8 41.0 2 7 Perpetual Digital revenue 12.8 13.4 12.2 (4) 5 Total revenues 99.2 96.4 91.4 3 9 Operating expense
Slide 32: Wealth Management
Wealth Management For the period 1H25 2H24 1H24 1H25 v 2H24 1H25 v 1H24 rsonal use only $m $m $m (%) (%) Market related revenue 78.5 74.6 73.0 5 7 Non-market related revenue 40.3 41.1 38.0 (2) 6 Total revenues 118.7 115.7 111.0 3 7 Operating expenses (83.4) (82.1) (77.7) (2) (7) EBITDA 35.3 33.6 33.
Slide 33: Group Support Services
Group Support Services For the period 1H25 2H24 1H24 1H25 v 2H24 1H25 v 1H24 rsonal use only $m $m $m (%) (%) Interest Income 4.4 3.5 3.8 26 18 Other Income 8.8 13.7 11.9 (35) (26) Total revenues 13.3 17.2 15.7 (23) (15) Operating expenses (14.0) (13.8) (8.0) (1) (75) EBITDA (0.7) 3.4 7.7 (121) (109
Slide 34: Appendix: Assets under Management – Investment Performance
Appendix rsonal use only Assets under Management – Investment Performance
Slide 35: Asset Management delivering strong investment outperformance
Asset Management delivering strong investment outperformance 65% of strategies ahead of benchmark over 3 years to 31 December 2024 rsonal use only Proportion of strategies outperforming benchmark1,2 95% 95% 93% 83% 83% 82% 64% 68% 59% 60% 58% 56% 50% 54% 35% 13% 14% 0% 1 year 3 years 5 years 1 year
Slide 36: Asset Management: Investment performance across key strategies
Asset Management 1,2 Investment performance across key3 strategies Annualised gross performance (%) Excess returns above benchmark (% pa) 1,4 31 December 20241,4 Period ending 31 December 2024 rsonal use only 1. Investment performance presented gross of fees and includes reinvestment of distribution
Slide 37: Asset Management: Disclaimer notes to slide
Asset Management Disclaimer notes to Slide 36 Barrow Hanley Material presented is based on the respective GIPS® compliant composite and not an individual account. rsonal use only Performance is expressed in USD currency. J O Hambro Capital Management Gross performance is the unit price returns gross
Slide 38: Appendix: AUM, FUA and FUA
Appendix rsonal use only Assets under Management, Funds under Advice and Funds under Administration
Slide 39: Asset Management: AUM and flows
Asset Management: AUM and flows AUM by asset class ($b) 30 June 2024 Foreign 31 December 2024 rsonal use only For the period Flows Other1 Exhange ($b) ($b) Impacts2 Equities Australia 29.4 2.2 1.7 — 33.3 Global/International 68.8 (3.5) 1.2 4.1 70.6 UK 6.3 (0.8) 0.3 0.3 6.1 US 54.9 (2.2) 4.2 3.9 60.8
Slide 40: Wealth Management FUA and AUM
Wealth Management FUA and AUM FUA by client segment and AUM rsonal use only FUA ($b) (Inclusive of AUM) AUM ($b) 1H25 1H24 1H25 v 1H24 1H25 1H24 1H25 v 1H24 Community and Social Investments (CSI) 7.1 6.4 11% Select Portfolios 3.3 2.8 18% High Net Worth 12.6 11.9 6% Implemented Portfolios 5.3 4.5 18%
Slide 41: Corporate Trust: FUA by segment
Corporate Trust FUA by segment ($b) 1H25 2H24 1H24 1H25 v 2H24 1H25 vs 1H24 rsonal use only For the period $b $b $b (%) (%) Public Market Securitisation RMBS - bank (ADI) 69.4 63.9 61.2 9 13 RMBS - non bank 97.5 89.5 85.2 9 14 ABS and CMBS 70.8 67.1 64.5 6 10 Balance Sheet Securitisation RMBS - repo