Slide 1: Full Year Results - Increased Profit, Successful Acquisition
27 August, 2015 Full Year Results - Increased Profit, Successful Acquisition For personal use only Equity Trustees Limited (ASX: EQT) today confirmed its full year financial results and final dividend. Operating profit after tax is ahead of the prior year by 104%. The results are summarised as follo
Slide 2: Media release continued: final dividend and contacts
-2- For personal use only Mr Killen confirmed a fully franked final dividend of 48cps, resulting in an unchanged full year dividend of 94 cps. The company will again be offering the dividend reinvestment plan (DRP) - an attractive avenue for shareholders to continue to invest in the company at a dis
Slide 3: Full Year Results to 30 June 2015
For personal use only FULL YEAR RESULTS TO 30 JUNE 2015
Slide 4: Overview
Overview For personal use only • Overview – FY 2015 Summary of • Overview Group Results Performance • Operating Revenue • Operating Margin • Reported Earnings per Share • Return to Shareholders Shareholder Return • Sustained Shareholder Return • Operations and Performance Business Unit • Overview –
Slide 5: Business Units
Business Units For personal use only Business unit Key services Target market / channel Trustee & Wealth Services • Personal estates & trusts • Private clients (TWS) (including ETWSL) • Philanthropy • Business to business referrals • Wealth management • Small-medium size corporates • Asset managemen
Slide 6: Overview – FY2015
Overview – FY2015 For personal use only Operating profit (after tax) 104% TWS AND CTS EXPERIENCED STRONG ORGANIC REVENUE GROWTH Net profit (after tax) 75% Group Organic Revenue 15% Operating to growth of margin up 8% 35% Full year fully franked dividend per share 94¢ 4
Slide 7: Overview – FY2015
Overview – FY2015 For personal use only • Successful integration of ANZ Trustees – cost synergies achieved, under budgeted integration cost • Continuing investment in support function capability • Distribution partnerships in TWS generated large increase in new clients • CTS business FUM/A up 28% 5
Slide 8: Overview – Group Results
Overview – Group Results For personal use only 2015 2014 $m $m Change Operating revenue 84.9 53.3 59% Operating expenses (55.3) (38.9) (42%) Operating profit before tax 29.6 14.4 106% Income tax expense (8.4) (4.0) Operating profit after tax 21.2 10.4 104% Non-operating items (net of tax) (4.2) (0.7
Slide 9: Operating Revenue
Operating Revenue For personal use only Operating revenue up Operating revenue movement 59% to $84.9m compared to prior year $ 84.9m ETWSL EWTSL $23.4m EQT +$3.1m $84.9m +14.8% +$0.4m +59% +$23.4m Existing +100% $ 53.3m $61.5m $ 46.8m $ 43.0m $ 39.2m +$4.7m +14.9% $53.3m 2011 2012 2013 2014 2015 YTD
Slide 10: Operating Margin
Operating Margin For personal use only Operating Profit (Pre-tax) ($m) 34.9% Operating Margin (%) 27.7% 27.1% 27.5% 25.6% 29.6 14.4 12.9 10.8 11.0 2011 2012 2013 2014 2015 8
Slide 11: Reported Earnings per Share
Reported Earnings per Share For personal use only Reported earnings per share at 87.80¢ per share Earnings Per Share Weighted average shares on issue ('000) 88.64 20,000 87.90 87.66 87.58 87.80 19,316 18,000 16,000 14,000 12,000 10,959 10,000 9,901 9,362 9,560 8,000 2011 2012 2013 2014 2015 2011 201
Slide 12: Returns to Shareholders
Returns to Shareholders For personal use only Full-year, fully-franked dividend Full-year dividend as Reflecting a current yield of approximately 4% percentage of reported EPS before franking credits Dividend payout ratio on Reported NPAT EPS Interim (cps) Dividend payout ratio on Underlying EPS Fin
Slide 13: Sustained Shareholder Return
Sustained Shareholder Return For personal use only 1 July 2005 to 30 June 2015 400 EQT total shareholder return + 212% Assumes all dividends are reinvested. S&P/ASX 300 Accum. Index return + 96% 350 EQT total shareholder return. 300 250 200 150 100 Base (100) taken at 1 July 2005 50 S&P/ASX 300 Accu
Slide 14: Business Units - Performance
Business Units - Performance For personal use only Business unit Results Trustee & Wealth Services • BU Revenue $59.9m – Up 89% (TWS) (including ETWSL) • Profit contribution $16.2m • Margin 27% • FUM/FUA $7.8b – Up 81% Corporate • BU Revenue $24.9m – Up 17% Trustee Services • Profit contribution $12
Slide 15: Unit Overview – TWS
Business Unit Overview – TWS For personal use only Operating revenue up FUM/A at 30 June 2015 up 90% to $59.3m 81% to $7.8b (excluding share of Interest Income) Superannuation 7,780 Philanthropy 23.3 Trust & Estate 2,411 ETWSL Wealth Advice 4,269 1,901 3,254 3,022 2,878 2,312 1,454 1,597 36.0 1,448
Slide 16: Unit Overview – TWS
Business Unit Overview – TWS For personal use only Operating revenue in • External referral relationships resulted in 110% increase in existing BU up new estate planning clients 15% • 5 new business wins in RSE roles • Generating external client referrals from growing relationships with advisory net
Slide 17: Unit Overview – CTS
Business Unit Overview – CTS For personal use only Operating revenue up FUM/A at 30 June 2015 up 28% 14.8% to $24.4m to $45.4b (excluding share of Interest Income) Other Australian Fixed Interest 45,428 Australian Equities Global Fixed Interest 35,592 Global Equities 29,033 24.4 21,100 21.3 19,187 1
Slide 18: Unit Overview – CTS
Business Unit Overview – CTS For personal use only Responsible Entity Business Net flows for funds distributed by EQT ($m) Number of Funds 1,200 Number of managers 1,000 199 185 800 158 139 600 123 400 82 76 65 58 51 200 0 2011 2012 2013 2014 2015 2011 2012 2013 2014 2015 16
Slide 19: Unit Overview – CTS
Business Unit Overview – CTS For personal use only Operating revenue • Acting as RE/fiduciary for 199 funds, up by net 14 up by (27 new, less 13 fund closures) 14.8% • 82 fund manager clients, up by net 6 (11 new, less 5 exited relationships) to $24.4m • Further expansion in range of fiduciary roles
Slide 20: New Client Focus and Key Capabilities
New Client Focus and Key Capabilities For personal use only Focused Expenditure ($m) 1.0 2.7 0.5 1.6 Human Resources Enterprise Risk 0.3 0.3 TWS Business Development 1.2 + Marketing 1.1 9.1 0.3 8.2 0.7 5.7 5.1 3.4 2011 2012 2013 2014 2015 18
Slide 21: Summary and Directions
Business Summary and Directions For personal use only • Underlying business continuing to perform well in chosen sectors • Integration project completed – focus now on revenue growth • Relationship with ANZ Bank working well • Significant operational restructure projects now completed • Material inv
Slide 22: Summary and Directions
Business Summary and Directions For personal use only • Distribution strategies implemented and working in TWS, to redress long-standing deficiency • Capital and group operating structure project under way • TWS positioned to benefit from referral relationships, impending wealth transition between g
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
Slide 24: For personal use only
For personal use only