Perpetual Limited · ASX:PPT
Perpetual — Macquarie Australia Conference 2022
21 slides from Perpetual's conference presentation, May 5, 2022
Slide 1: Macquarie Australia Conference Presentation
Perpetual Limited ABN 86 000 431 827 Angel Place, Level 18, 123 Pitt Street Sydney NSW 2000 5 May 2022 Australia Phone +61 9229 9000 ASX Limited www.perpetual.com.au ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 Via electronic lodgment Macquarie Australia Conferenc
Slide 2: Perpetual Limited (ASX:PPT) Macquarie Australia Conference
Perpetual Limited (ASX:PPT) Macquarie Australia Conference 5 May 2022 Rob Adams Chief Executive Officer & Managing Director
Slide 3: Disclaimer
Disclaimer Important information This presentation is in summary form and is not necessarily complete. It should be read Disclaimer: The Zenith Fund Awards were issued on 15 October 2021 by Zenith together with Perpetual Limited’s (Perpetual) consolidated financial statements and other Investment Pa
Slide 4: Perpetual: a unique, high quality and growing financials business
Perpetual: a unique, high quality and growing financials business A distinctive business with highly regarded asset management capabilities, financial advisory and trustee services, providing earnings resilience through market cycles A clear strategy that is being successfully executed, delivering r
Slide 5: Recent financial results (1H22)
Recent financial results (1H22) Positive momentum across all divisions delivering strong Group results Operating revenue1 $384.9m UPAT2 $79.1m NPAT $59.3m ROE3 17.3% Dividend4 $1.12 410 37% 113% bps 54% 33% 384.9 280.6 79.1 59.3 17.3 1.12 51.3 0.84 27.9 13.2 1H21 1H22 1H21 1H22 1H21 1H22 1H21 1H22 1
Slide 6: Recent operational highlights
Recent operational highlights1 Execution of strategy delivering positive outcomes ~80% 7 years 17 No. 1 A$1bn+ $1tr on track to deliver consecutive halves net flows for Trillium new milestone for of all strategies2 Zenith strongest year of of net inflows for over 12 months5 Perpetual Corporate outpe
Slide 7: We are now in a 'value' period for investment markets
We are now in a ‘value’ period for investment markets Ideal environment for majority of Perpetual’s investment capabilities to outperform Characteristics of a ‘value’ market Strong, but uneven, recovery in global growth Inflationary environment Pricing pressures Supply chain pressures Labour
Slide 8: Recent investment performance positions us well for the value rotation
Recent investment performance positions us well for the value rotation Proportion of strategies outperforming benchmark1,2 Perpetual Asset Management Australia 100% 100% 92% 92% 92% 80% 83% 62% 69% 71% 67% 69% 58% 60% 57% 40% 33% 17% 1 Yr 3 Yrs 5 Yrs 1 Yr 3 Yrs 5 Yrs 1 Yr 3 Yrs 5 Yrs 1 Yr 3 Yrs 5 Yr
Slide 9: Our unique combination of businesses provides earnings resilience
Our unique combination of businesses provides earnings resilience ~30% of group revenue not linked to investment markets Corporate Trust: provides critical infrastructure across the Non-market linked revenue5 versus All Ordinaries and MSCI financial services market World indices6 over 5 years • Prov
Slide 10: Positive long-term system growth across our core markets
Positive long-term system growth across our core markets $1m+ Australian wealth segment v Australian Managed Funds4 and Global AUM1 and ESG AUM2 (US$tr) financial adviser #’s3 (2018 – 2026F) Housing market5 (2016 – 2021) (2020 – 2025F) $136tr $3,000 25 $9.1tr c.6% $103tr $2,500 CAGR 20 $6.0tr $53tr
Slide 11: ESG capability - a key strategic focus area
ESG capability - a key strategic focus area Leveraging ‘traditional’ investment capabilities to dedicated ESG capabilities 1H22 AUM1 by capability approach2 Leveraging traditional capabilities Growth in dedicated ESG AUM ($b, %) New capabilities 20 20.00% • Multi-asset ESG Real Return Fund – June 20
Slide 12: A strategy delivering sustained growth
A strategy delivering sustained growth OUR STRATEGY OUR PURPOSE OUR VISION OUR VALUES Enduring prosperity Most trusted in financial services Excellence, integrity, partnership Clients People Shareholders Trusted brand and Attract, develop and inspire Delivering sustainable enduring relationships the
Slide 13: FY22: Positive momentum and continued focus on growth
FY22: Positive momentum and continued focus on growth Market shift to ‘value’ benefiting our investment performance and client interest, with a continual improvement in new client pipeline, particularly in Europe Brand strength in retail segment combined with solid investment performance leading to
Slide 14: Why invest in Perpetual
Why invest in Perpetual Unique Trusted brand Clear strategy Disciplined Strong A highly portfolio of with a strong executed at investment in balance sheet experienced businesses and established pace and quality growth and financial leadership underpins heritage delivering opportunities flexibility t
Slide 15: Q&A
Q&A OTe
Slide 16: Thank you.
Perpetual Trust is earned.
Slide 17: Contacts
Contacts Emma Rumble Susie Reinhardt General Manager, Corporate Affairs Head of Investor Relations & Investor Relations emma.rumble@perpetual.com.au susie.reinhardt@perpetual.com.au +612 9229 3998 +61 401 399 781 Connect with us at: About Perpetual Head Office perpetual.com.au Level 18, Angel Place,
Slide 18: Appendix 1H22 Results – Summary Slides
Appendix 1H22 RESULTS – SUMMARY SLIDES
Slide 19: 1H22 financial results
1H22 financial results UPAT up 54% and dividend up 33% 1H22 2H214 1H214 1H22 v 2H21 1H22 v 1H21 For the period $m $m $m (%) (%) Key highlights Operating revenue 384.9 359.9 280.6 7% 37% • Revenue growth of 37% primarily driven by a full six month contribution from Barrow Hanley, and Total expenses (
Slide 20: FY22 guidance
FY22 guidance Continuing to invest in our growth strategy Growth related expenses Operating Expenses ($m) The operating expense growth attributable HIGH to growth investments is expected to be 2- LOW 3% ex PAMI and 13-14% for PAMI. Growth HIGH LOW investments include acquisitions (Barrow Hanley and
Slide 21: Balance sheet
Balance sheet Strong financial position with headroom for further growth 1H22 2H211 1H211 1H22 v 2H21 1H22 v 1H21 For the period $m $m $m (%) (%) Key movements vs 2H21 Cash 130.9 147.1 172.1 (11%) (24%) • Moderate decrease in Cash related to acquired businesses and payment of the final dividend. Off