Slide 1: Equity Trustees Full Year Results and Final Dividend
25 August 2011 For personal use only Equity Trustees Full Year Results and 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 5 August, 2011. Net profit after tax increased
Slide 2: Media release continued: acquisitions and contacts
He said, “In particular we are very pleased that we completed the acquisition, transition and integration of the OAMPS corporate superannuation fund into the existing EquitySuper For personal use only master trust in a very efficient manner, to a tight deadline and within our project timetable and c
Slide 3: Full Year Results to 30 June 2011
For personal use only Equity Trustees Limited Full Year Results to 30 June 2011
Slide 4: Overview – FY2011
Overview – FY2011 For personal use only ¾ Adverse conditions in investment markets affected business performance. ¾ All business units remain solidly profitable, although some margin pressure. ¾ Organic FUM/revenue growth varied across business lines. ¾ Final dividend reduced to match circumstances
Slide 5: Overview – group results
Overview – group results For personal use only 2011 2010 $m $m Change Operating revenue 39.2 34.5 14% Operating expenses (28.4) (23.8) (19%) Operating profit before tax 10.8 10.7 1% Income tax expense (3.0) (3.2) Operating profit after tax 7.8 7.5 3% Net profit from sale of investments (net of tax)
Slide 6: Revenue
Revenue For personal use only Revenue increased 14% Investment Income ($m) - down 33% 14% (excludes profit on sale of investments) increase Business Unit Revenue ($m) - up 15% 1.2 $ 39.2m 0.5 $ 39.2m 1.2 $ 34.5m 0.6 $ 33.8m $ 32.4m 0.9 1.1 1.1 $ 24.8m 1.2 $ 19.8m 38.0 38.8 1.0 33.6 31.3 32.7 23.6 18
Slide 7: Expenses
Expenses For personal use only Operating costs ($m) (Refer to subsequent page for detail) $28.4m $24.6m $23.8m $22.9m $21.3m $18.2m $15.6m 2005 2006 2007 2008 2009 2010 2011 Trusted since 1888 5
Slide 8: Expense composition
Expense composition For personal use only Apex Recurring Expenses (8 mths) ($m) Non-Recurring Expenses ($m) Recurring Expenses ($m) $28.4m Year-on-year, Group $1.5 expenses have $0.7 increased by 19% $23.8m $0.4 $26.2 Recurring $23.4 expenses increase by 11.8% 2010 2011 Trusted since 1888 6
Slide 9: Operating margin
Operating margin For personal use only Operating Profit (Pre-tax) ($m) Operating Margin (%) 1 6 .0 (Not adjusted for non-recurring expenses) 4 0 .0 % 37.1% 1 4 .0 34.3% 31.1% 32.4% 27.5% 1 2 .0 3 0 .0 % 1 0 .0 26.8% 21.2% 8 .0 2 0 .0 % 14.6 6 .0 11.1 10.9 10.7 10.8 4 .0 1 0 .0 % 6.6 2 .0 4.2 0 .0 0
Slide 10: Operating revenue - change
Operating revenue - change For personal use only ¾ Operating revenue up 14% to $39.2m Investment Income ($m) (Excludes profit on sale of investments) $39.2m Business Units ($m) +13.5% +$2.9m $39.2m $39.2m +34.9% -$0.32m -20.2% 1.2 0.6 $33.8m $34.5m $32.4m 1.1 0.9 1.1 $24.8m $19.8 1.2 38.8 +$1.04m 1.
Slide 11: Operating revenue - composition
Operating revenue - composition For personal use only Investment Income & other Superannuation Corporate Fiduciary & Financial Services Private Clients $ 39.2m $ 39.2m 5% 3% $ 33.8m $ 34.5m $ 32.4m 4% 20% 5% 29% 5% 24% 16% 25% $ 24.8m 7% $ 19.8m 18% 6% 48% 44% 17% 50% 47% 47% 51% 47% 29% 27% 24% 23%
Slide 12: Reported Earnings per Share
Reported Earnings per Share For personal use only ¾ Reported Earnings per Share up 0.42% to 97.01¢ per share Earnings Per Share 133.35 Weighted average shares on issue ('000) 8,483 105.18 8,328 98.45 96.60 97.01 8,000 8,138 7,923 7,742 69.94 7,372 52.98 7,000 6,423 6,000 2005 2006 2007 2008 2009 201
Slide 13: Returns to shareholders
Returns to shareholders ¾ Full-year, fully-franked dividend For personal use only ¾ Reflecting a current yield of approximately 7.4% before franking credits Full-year dividend as percentage of NPAT Note, change of policy to 70-90% Final (cps) 110 110 110 of NPAT (from 60-80%) Interim (cps) 100 113.9
Slide 14: Net asset base
Net asset base For personal use only ¾ Strong net asset base. Nil debt. $55.4m $52.9m $53.9m $52.0m $44.4m No impairment charges $36.4m $21.6m 2005 2006 2007 2008 2009 2010 2011 Trusted since 1888 12
Slide 15: Sustained shareholder return
Sustained shareholder return For personal use only 800 EQT Total Shareholder Return ¾ Assumes all dividends are reinvested 700 1 July 2003 to 30 June 2011 600 EQT Total Shareholder Return + 280.9% S&P/ASX 200 Accum. Index + 214.2% 500 400 300 Base (100) taken at 1 July 2003 200 100 S&P/ASX 200 Accum
Slide 16: Business units – operations & performance
Business units – operations & performance For personal use only 2011 2011 Business unit Key services Target market / channel Revenue, FUM/FUA, vs 2010 vs 2010 Private Clients ¾ Trusts & Estates ¾ Private clients $9.6m $1,312m ¾ Philanthropy ¾ Business to business +12.2% +4% ¾ Wealth Management refer
Slide 17: Business unit overview - Private Clients
Business unit overview - Private Clients For personal use only Operating revenue up 12.2% to $9.6m FUM/FUA at 30 June 2011 up 4% to $1,312m Significant one-off 1,490 10.4 9.6 1,303 1,333 1,312 9.3 1,128 1,261 8.5 1,112 7.6 5.9 6.1 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011
Slide 18: Business unit overview – CF&FS
Business unit overview – CF&FS For personal use only Operating revenue up 6.4% to $17.2m FUM/FUA at 30 June 2011 up 20.5% to $19.485m 18.7 17.2 15.9 16.1 15.8 19,485 12.6 14,949 15,646 16,171 9.3 12,124 12,542 7,978 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 • Strong net i
Slide 19: Business unit overview - Superannuation
Business unit overview - Superannuation For personal use only Operating revenue up 34.9% to $11.2m FUM at 30 June 2011 up 56.9% to $979m 11.2 979 8.5 8.3 7.9 635 615 565 626 5.3 400 4.4 3.4 319 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 • Integration of OAMPS super, rename
Slide 20: Business Update And Summary
Business Update And Summary For personal use only The Environment ¾ Regulatory changes still flowing – FoFA, Stronger Super (MySuper & SuperStream), ASIC CP140 (capital for REs), tax changes for MIS. Mix of opportunities and challenges, but increased business complexity. ¾ Markets – volatile start t
Slide 21: Summary – The Business
Summary For personal use only The Business ¾ Diversified revenue streams – all business units profitable, supported by a mix of in-house and out-sourced service functions. ¾ Continued focus on maximising efficiency and maintaining in-house activity where there is competitive advantage/reason for ret
Slide 22: Summary – The Business (continued)
Summary For personal use only The Business (continued) ¾ New business generation and opportunities strong in most business areas. ¾ Alert to potential acquisition opportunities, with disciplined selection and valuation criteria. Demonstrated ability to efficiently manage bolt-ons. ¾ Exploring additi
Slide 23: 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 should not take