Perpetual Limited · ASX:PPT
Perpetual — Non-Deal Roadshow (May 2005)
25 slides from Perpetual's roadshow presentation, May 25, 2005
Slide 1: Perpetual Trustees Australia Limited ('Perpetual')
Perpetual Trustees Australia Limited (‘Perpetual’)
Slide 2: Perpetual: Key messages
Perpetual: Key messages Australian financial services company participating actively in wealth management and securitisation The Australian wealth management and securitisation markets have strong fundamentals Well positioned to compete Currently implementing its growth strategy An attract
Slide 3: Perpetual is an ASX 100 company and largest independent wealth manager in Australia
Perpetual is an ASX 100 company and largest independent wealth manager in Australia Top performing manager in Australian equities ~$26 billion FUM as at May 2005 Market capitalisation ~$2 billion and approximately 850 employees Trading revenues have nearly tripled from ~A$100 million at June
Slide 4: Perpetual actively participates in two industries
Perpetual actively participates in two industries Asset Wealth Corporate Management Management Trust Responsible for producing Responsible for creating a suite Australia’s pre-eminent investment returns of wealth management provider of trust and products, providing the administration services to mar
Slide 5: In Wealth Management we focus on the 'value-add' ends of the value chain
In Wealth Management we focus on the ‘value-add’ ends of the value chain Our focus Asset managers who can continue to Consolidated Advisers can craft add alpha will be able to differentiate reporting by value proposition themselves from competitors and administrators likely around provision ch
Slide 6: Our Corporate Trust business provides services between corporates and investors
Our Corporate Trust business provides services between corporates and investors Investor Protection Originators of Capital Compliance Culture Investors and Stakeholders Markets Activity Banks Institutional Investors Non-bank Financial Fiduciary Services Retail Debenture Holders Institutions Fund Uni
Slide 7: Perpetual Trustees: Key messages
Perpetual Trustees: Key messages An Australian financial services company participating actively in wealth management and securitisation The Australian wealth management and securitisation markets have strong fundamentals Well positioned to compete Currently implementing its growth strategy
Slide 8: Strong growth is expected in pre and post Australian retirement assets
Strong growth is expected in pre and post Australian retirement assets Australian Managed Fund Market Overview Australian managed fund industry Total Superannuation Funds by Year $ Billion totals $720b with historical annual 3,000 growth of 9.2% 2,500 Superannuation assets make up 80% 2,000 of t
Slide 9: The Australian securitisation market has good underlying fundamentals
The Australian securitisation market has good underlying fundamentals Outs tanding Se curitisation ($B) $200B Supply is increasing Currently only ~25% of Australia’s residential loans are securitised (as Other ABS 1 50 opposed to ~60% in the US), and Non-bank financial institutions, the largest
Slide 10: Perpetual Trustees: Key messages
Perpetual Trustees: Key messages An Australian financial services company participating actively in wealth management and securitisation The Australian wealth management and securitisation markets have strong fundamentals Well positioned to compete Currently implementing its growth strategy
Slide 11: The Australian Equities team delivers consistent outstanding performance
The Australian Equities team delivers consistent outstanding performance Excess over benchmark (pre-fees) Variance to benchmark (3 Year Rolling Excess Performance) 10.0% 8.0 Australian Share Fund Performance 6.0 4.0 1st Quartile Performers- 2.0 Mercers Universe 0.0 Jan Apr Jul Oct Jan Apr Jul Oct De
Slide 12: Performance well recognised by the market
Performance well recognised by the market Fund Manager of the Year 2004 Morningstar Awards Australian Equities Fund Manager of the Year 2004 Australian Multi-Sector Fund Manager of the Year 2004 Personal Investor Magazine Fund Manager of the Year 2004 Awards Australian Share Fund of the Ye
Slide 13: Funds under management continues to grow strongly
Funds under management continues to grow strongly FUM ($B) 30 26.0 25 Institutional 21.7 20 19.4 17.4 Retail 15.6 15 11.6 10 Masterfund 5 0 Jun 00 Jun 01 Jun 02 Jun 03 Jun 04 Dec 04 12
Slide 14: Our leading position (~60% share) in the corporate trust market supports strong growth in balances
Our leading position (~60% share) in the corporate trust market supports strong growth in balances Funds Under Administration ($B) 150 124.1 112.4 100 87.1 52.3 50 42.2 28.0 0 Jun 00 Jun 01 Jun 02 Jun 03 Jun 04 Dec 04 13
Slide 15: Perpetual Trustees: Key messages
Perpetual Trustees: Key messages An Australian financial services company participating actively in wealth management and securitisation The Australian wealth management and securitisation markets have strong fundamentals Well positioned to compete Currently implementing its growth strategy
Slide 16: Perpetual's strategy
Perpetual’s strategy Focus on our I. Develop a II. Develop 4 sources of competitive more balanced new growth advantage portfolio engines III. Fully engage our people to deliver our strategy 15
Slide 17: Implementation: Developing a more balanced portfolio and new growth engines
Implementation: Developing a more balanced portfolio and new growth engines Expanded our asset management footprint – Global equities – Credit Opened global equities business in Ireland Initial flows into credit income and credit enhanced cash products Launched property income and capital pr
Slide 18: Expanding our asset management footprint
Expanding our asset management footprint Skill set High breadth Low breadth Domestic Stock Broad Styles Small Caps Hedge Funds Private Equity Picking Mortgage Lending Mortgages Mezz Debt LPT Stock Picking Global Domestic Infrastructure Infra-structure Investing Currency/ Quantitative Investing Globa
Slide 19: Perpetual has created its own global equities business
Perpetual has created its own global equities business Business Manufacture a focused range of global equities products strategy Distribution of these products to: includes: – Retail and institutional investors in Australia – Institutional investors outside of Australia Perpetual Trustees Austra
Slide 20: Key points: Global equities business
Key points: Global equities business Perpetual is entering the very large global equities market Outstanding investment team that has worked together for over 10 years Philosophy and culture a perfect match with Perpetual Very experienced sales capability in the UK Very long term incentive
Slide 21: 2005 Implementation: Fully engage our people to deliver our strategy
2005 Implementation: Fully engage our people to deliver our strategy New remuneration policy Single premises Leadership team in place Long term incentives in place to retain key members of our asset management team 20
Slide 22: Perpetual Trustees: Key messages
Perpetual Trustees: Key messages An Australian financial services company participating actively in wealth management and securitisation The Australian wealth management and securitisation markets have strong fundamentals Well positioned to compete Currently implementing its growth strategy
Slide 23: Five year performance is consistently strong
Five year performance is consistently strong Growth Performance measures 2000 2001(4) 2002(4) 2003(4) 2004 Rate(1) EBITDA ($m) 71.4 82.0 100.7 113.6 143.6 19.1% Operating profit after tax (OPAT) excluding 30.7 40.7 58.7 68.2 88.2 30.2% realised gains on investment sales(2) ($m) Earnings per share (c
Slide 24: A new dividend policy in place
A new dividend policy in place Starting point Dividend policy Strong cash generation Ordinary dividends of Low capital expenditure 90% of NPAT Substantial franking credits before goodwill amortisation and gains / losses on investments, fully franked High dividend pay-out 23
Slide 25: Why Perpetual?
Why Perpetual? Independent wealth manager Fund Manager of the Year four out of the last five years Recognised top performer in Australian equities One of Australia’s largest wealth management pure plays Global option recently initiated 24