Slide 1: EQT Release: Equity Trustees posts a record result
EQT RELEASE 4 2 6 September 2006 Equity Trustees posts a record result Equity Trustees Limited today announced record 2006 full year financial results, confirming very strong growth in revenue, profitability and increased dividend returns to shareholders. The company has earned a profit after tax (e
Slide 2: EQT Release (continued)
EQT RELEASE 4 2 operate in highly competitive and often quite complex markets but we are punching well above our weight in all areas of the business.” “We shouldn’t underestimate what has been achieved. Our Private Client and Funds Management operations now each manage well in excess of $1.3b while
Slide 3: Equity Trustees Limited Full Year Results to June 2006
¢ 1888 Equity Trustees Limited Full Year Results to 30 June 2006
Slide 4: Themes
Trusted since 1888 Themes Trustees - Record revenue and profitability - Operating profit (post-tax) up 75% - Operating revenue up 25% - Operating margin up to 26.8% - Increased returns to shareholders - Growth in all four business units - Wealthpac master-trust integration - Positioned for continued
Slide 5: In summary
Trusted since 1888 In summary Trustees Op. Revenue’ $24.8m| # 25.0% Op. Profit’ (pre-tax) | $6.6m| # 57.9% Op. Profit’ (post-tax) | $4.7m| # 74.9% Net Profit (post-tax) | $5.2m| # 51.5% EPS (basic) 69.94¢|vs 52.98¢ DPS (fully franked) 50¢| vs 40¢ * Excluding gains from the sale of investments All fi
Slide 6: Operating Revenue
Trusted since 1888 Operating Revenue 26.0 5 24.0 + 22.0 | 20.0 4 18.0 4 16.0 4 14.0 4 12.0 7 10.0 Trustees $m $24.8m 2004 | 2005 | 2006 vs vs vs 2003 | 2004 | 2005 $19.8m +17% | +18% | #25% $16.8m * Key operational focus « Growth across all business units 14.3 . . $14.3 * Budgeting for continued gro
Slide 7: Profitability
Trusted since 1888 Profitability 2005 vs | 2006 vs 2004 | 2005 +36% | +58% 2005 & 2006 resulis are calculaied in accordance with A-iFRS policies Lstees 8.07 $m . 8.0) gm . Operating Profit (pre-tax) Net Profit after Tax $6.624m 6.0 £88% 6.0 $5.156m 2% 40 40 oO $3.403m 20 20 $2.811m 0.9 Excludes gain
Slide 8: Earnings per share
Trusted since 1888 Earnings per share Trustees 65 45 25 -15 -35 ~65 eps * Growth in EPS is post impact AEP, ” ~ of capital raising conducted , in late 2005 * Capital raising increased the weighted average numbers of shares on issue by 14.8% Represents basic earnings per share calculation 2003 2004 2
Slide 9: Returns to shareholders
Trusted since 1888 Returns to shareholders Trustees Dividends per share (¢) * Dividends remain fully franked @ 30% tax rate * Dividend payout ratio is at the upper end of the stated target range — being 60-80% of Operating Profit after Tax ~ DPS (Total) DPS (Final) DPS (Interim)
Slide 10: Operating margin
Trusted since 1888 Operating margin Trustees 2005 vs | 2006 vs 2004 | 2005 | 2006 2004 2005 Operating $16.8m | $19.8m | $24.8m |————» | +18% | +25% revenue Operating | ¢43 7m | $15.6m|$18.2m|———> | +14% | +16% expenses Operating $3.1m| $4.2m| $6.6m|———-| +36% | +58% profi Operating | 48 4% | 21.2% |
Slide 11: Sources of operating revenue
Trusted since 1888 Sources of operating revenue Approved Trustee Philanthropy Trusts & Estates Trustees a Master Trust oe Client Services Private Corporate Clients Super- Fund Responsible annuation Services Entity Funds Approved Management Trustee Product Mgmt
Slide 12: Share of operating revenue
» Share of operating revenue @@ Tristees Trusted since 1888 2005 19% Superannuation 32% Funds Management 23% Fund Services 26% 200 Private Clients 2004 2005 2004
Slide 13: Revenue
" Trusted since 1888 Revenue Trustees * Significant FUM inflow Management $7.5m | +17.4% | + Targeted distribution strategy * Strong funds performance + Estates income down (cyclical) Private Clients $6.1m +2.1% |+“New” income sources strong * Stronger 24 half & start to ‘07 * Strong RE growth (new
Slide 14: Funds Management
12 Trusted since 1888 Funds Management * Strong net FUM inflow *Focus on gaining access to platforms Trustees * Continued relationships with leading managers * NSW BDM appointed FUM * Improved market presence Ang ney Managenient | iMCA Money Management |IMCA ari MANAGER OF THE YEAR 206 FOND MANAGER
Slide 15: Private Clients
13 Trusted since 1888 Private Clients * Strong asset growth — managed by in-house investment management team Trustees *Increase in “new” sources of revenue — specifically wealth management services * Cyclical decline in “traditional” revenue — eg: estate management * Stronger 2" half and good start
Slide 16: Fund Services
14 Trusted since 1888 Fund Services Trustees * Growth through strong increase in Responsible Entity (RE) appointments — specialist skill set *Now 20+ managers as RE clients «Focus also on approved trustee role — RSE licence obtained
Slide 17: Superannuation
15 Trusted since 1888 Superannuation Trustees * Acquisition of Wealthpac superannuation master trust completed in February * Solid FUM growth based on distribution focus * New Managing Director appointed in June so «Founder of business becomes Chairman *RSE licence gained * Relaunch of DIY product t
Slide 18: Support services
16 Trusted since 1888 Support services Trustees ¢ Continued people focus — attracting and retaining the right staff * Development of executive and management teams — identification and use of talent ¢ Full IT systems integration across business * Marketing focus — increasing brand presence ¢ Process
Slide 19: Positioning
17 Trusted since 1888 Positioning Trustees Well positioned for growth Superannuation guarantee *9% mandated « Favourable tax changes * Master-trust & RSE exposure Ageing population « Focus on wealth management * Need for trusted advisors * Increasing complexity of estates Funds management « Spread o
Slide 20: Balance Sheet
18 Trusted since 1888 Balance Sheet Trustees ¢ Shareholders funds up $14.7m to $36.4m * Acquisition cost of Wealthpac reflected as intangible asset * Investment portfolio reflects unrealised gains of $3.4m (vs $2.9m at Jun 05) — included in investment revaluation reserve * Reserve requirements more
Slide 21: Share price
19 Trusted since 1888 Share price ‘Trustees $20.00 $18.50 $18.00 $16.00 2006 results $16.00 update 514.00 2005 annual results $13.50 $12.50 $12.00 2006 HY Results $10.00 Share , a placement New CEO esults \, $8.50 Merger with ANZET Settlement $3.00 + Appointed $7.50 called off with Land 2009 annual
Slide 22: Strategy update
Trusted since 1888 Strategy update Trustees * Company looking to grow through merger and / or acquisition opportunities * Capital / free cash balance remains strong * Internal resources devoted to identifying growth opportunities * Focus on right opportunity — will not pursue unless benefit is antic
Slide 23: Summary
21 Trusted since 1888 Summary Trustees * Very good all-round performance in 2006 * Strong growth in Responsible Entity business — and ongoing inquiry * Funds Management FUM inflow resulting from sustained distribution focus * Some cyclical weakness in Private Client area but business is on a solid p
Slide 24: Trusted since 1888
Trusted since 1888