Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — H1 FY2006 Earnings Presentation
20 slides from Eqt's earnings presentation, Mar 6, 2006
Slide 1: Half Year Results to 31 December 2005
1 EO ‘Trustees Equity Trustees Limited Half Year Results to 31 December 2005
Slide 2: Themes
Themes - Strong 1° half result - Revenue growth + cost control - Contribution across the business - Strong net inflows into funds - New operating system introduced into Private Client business - Settlement of dispute with Land Roberts Nominees
Slide 3: A strong 1st half
A strong 1* half.... Trustees [Revenue $11.5m| 917.2% Profit (pre-tax) $2.7m| #& 17.0% Profit (post-tax) $1.9m| # 19.2% An additional 1.158m shares EPS were issued in the 1* half 26.83¢ VS 25.04¢ (18% of issued capital) DPS (fully franked) vs 15¢ - Growth driven solely by operating gains - no invest
Slide 4: Non-recurring items
Non-recurring items 1.Rebalancing company investment portfolio - $000 =| Dec 05 | Dec 04 Pre tax ($10) $487 Post-tax ($7) $341 2. One-off legal fees of $478k (Dec 05) pertaining to dispute with Land Roberts. Nil cost in pcp. Net of non-recurring items Profit (pre-tax) net of one-offs | $3.2m| #\ 76.
Slide 5: Revenue and underlying profit
12 44 10 $m Revenue $11.542 Underlying Profit (pre-tax) °% Dec 01 Dec 62 Dec 03 Dec 04 Dec 05 +$1.309 * Excluding profit on deposit received from sale of building
Slide 6: Achieved through...
Achieved through... Su - Strong revenue streams through" four business units - Integration of new IT system - Up-skilling staff - Renewed sales & marketing focus - Focus on operating margin.... —Dec05 | Dec04 | Dec03 _— Pre- Tax Margin (underlying profit)|_27:1% 20.2% 13.7%
Slide 7: Business Units
Business Units Funds Management ‘Trustees * Sales & marketing function for EQT branded funds * Support to fund managers Private Clients ¢ Wealth management * Trusts & estates ¢ Philanthropic services Fund Services * Responsible entity roles * Corporate trusts « Approved trustee roles Superannuation
Slide 8: Revenue
Revenue “NS Dec04. Business Unit Revenue Comments * Significant FUM inflow $3.6m | +18.5% | + Targeted distribution strategy * Strong funds performance Funds Management * Estates income down (cyclical) Private Clients $2.9m -1.7% |*New system implemented * Strong 2" half growth fcast * Strong RE gro
Slide 9: Expenses
Expenses < —_ nena —— Trustees oo a Dec 05 | Dec 04. Operating Expenses $8.9m| $7.6m Legal fees (non-recurring) $0.5m - $7.6m 09%] * Non-recurring fees relate to dispute with Land Roberts re the sale of the Wealthpac business * Fees outlined above are those relating only to that non-recurring expens
Slide 10: Earnings per share
Earnings per share fm es Trustees * Change in shares on issue - 6 months to 31/12/05 | Opening balance at 1/7/05 6,480,850 Issue under placement and share purchase plan 1,101,440 | Dividend reinvestment plan 57,047 Closing balance at 31/12/05 7,639,337 * Earnings per share (half-year results): ————_
Slide 11: Dividends
Dividends _ ee ‘Trustees ¢ 20¢ per share, fully franked ¢ Dividend Reinvestment Plan reactivated ¢ At December 2005, franking credit balance = $4.4m (vs $3.3m as at Dec 2004) * Dividends declared (historical comparison) Dec Dec Dec Dec Dec Dec Dec 05, 04 03 02 01 00 99 Interim Dividend |-°20.:) 15 1
Slide 12: Balance Sheet
Balance Sheet ¢ Shareholders funds up $12.2m to $33.8m ¢ Increase includes net proceeds of $10.6m from capital raising ¢ Acquisition cost of Wealthpac reflected as intangible asset * Investment portfolio includes unrealised gains of $4.9m (vs $4.1m at Dec 04) ¢ Under A-IFRS, investment revaluation r
Slide 13: Funds Management
Funds Management Retail / IDPS 30-Jun-04 30-Jun-08 31-Dec-05 30-Jun-04 30-Jun-05 31-Dac-05 Fund Services Wealthpac, $10,850m 30-Jun-04 30-Jun-05 31-Dec-05
Slide 14: Land Roberts
Land Roberts mel 1 o * Dispute with vendor of Wealthpac business settled on 3 February 06. Final payment made on 17 February - Total consideration of $17.6m (plus stamp duty) is inclusive of amounts previously paid * Full acquisition cost capitalised and recognised in accounts at 31 December 05 * We
Slide 15: Share price
Share price ‘Trustees Merger with ANZET $13.50 called off $12.50 \ i Land Roberts 2008 annual settlement 2005 HY — resuits & share Results placement 2004HY $8.50 Results “ Merger with ANZET ao announced New CEO \ 57.50 Appointed — 2003 annual 2004 annual ‘| Low: $4.55.(13 March 03) results results H
Slide 16: PIMCO
PIMCO Trustees scr) IVI SG Hiscock & Company Aust Equities EQT MIR Money Management SGH IND MANAGER GF THE VENTE age WINNER: Int'l Equities vl Australian Equities Mortgages EQT LPTs SGH i Gi Money Management High Income range FOND MANAGER OF THE VEAR 2008 Aust Fixed Interest | Pimco International Fl
Slide 17: Strategy Update
Year Strategy Update Theme ‘Trustees Key milestones 2003 Survival « Renewed culture * Business unit consolidation * Wealthpac purchase 2004 Recovery * IT system overhaul * Operational capacity * Corporate services 2005 Organic Growth * Focus on people & skills * Focus on marketing * Focus on margins
Slide 18: Positioning
Positioning Well positioned for growth Superannuation guarantee * 9% mandated * Favourable tax changes « Master-trust & A/T exposure Ageing population * Focus on wealth management ¢ Need for trusted advisors * Increasing complexity of estates Funds management * Across all asset classes * Mix of glob
Slide 19: Outlook
__ Outlook ‘Trustees * The first half provides a solid platform * Focus on Private Client activities in 2° half * Focus on distribution of funds * Integration of Wealthpac (Sydney) * Interstate expansion opportunities (organic) * Operating environment remains favourable for all business units In the
Slide 20: Trustees - Trusted since 1888
20 Trustees Trusted since 1888