Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — FY2009 Earnings Presentation
22 slides from Eqt's earnings presentation, August 2009
Slide 1: Full Year Results to 30 June 2009
Equity Trustees Limited Full Year Results to 30 June 2009
Slide 2: Overview – 2008/09
Overview – 2008/09 ¾ Markets impact financial performance. ¾ Strong underlying profitability levels maintained. ¾ Strong cash flow generation from operating activities. ¾ No debt. ¾ New business generation supports operating revenue. ¾ Business units and staff respond well to volatile environment. ¾
Slide 3: Overview – group results
Overview – group results 2009 2008 $m $m Operating revenue 33.8 39.2 (13.7%) Operating expenses 22.9 24.6 (7.2%) Operating profit (pre-tax) 10.9 14.6 (24.7%) Net profit from sale of investments (pre-tax) 0.3 0.2 Net profit (pre-tax) 11.2 14.8 (23.8%) Income tax expense (3.2) (4.2) Net profit (after-
Slide 4: People, processes & systems = IP
People, processes & systems = IP Enabling our staff to be These enhancements are EQT has continued to well positioned to respond supporting the introduction invest in system to market changes of greater efficiencies across improvements through the business the downturn People Processes Systems Which
Slide 5: Operating results
Operating results Operating revenue down Operating expenses lower Investment income ($m) $39.2m Depreciation ($m) $24.6m 1.2 $22.9m Business unit revenue ($m) $33.8m Operating overheads ($m) $21.3m 1.0 $32.4m 1.7 1.1 1.1 $18.2m 0.8 $24.8m $15.6m 0.3 1.2 $13.7m 0.2 Operating $19.8m 0.1 expenses net $
Slide 6: Revenue buoyant despite market decline
Revenue buoyant despite market decline 7500 S&P/ASX200 Index. July 2007-June 2009 7000 Peak = 6828.7 (1/11/07) 07/2007- Trough = 5086.1 (18/3/08) 6500 Var = (25.5%) 2007/08 2008/09 06/2009 6000 Peak = 5114.1 (24/7/08) S&P/ASX200 Trough = 3145.5 (6/3/09) (16.9%) (24.1%) (37.0%) 5500 1H 2007/08 Var =
Slide 7: Profitability
Profitability ¾ Operating profit before tax down 24.7% to $10.9m $14.6m ¾ Net profit after tax down 24.2% to $8.0m Operating profit before tax $11.1m $10.9m $10.6m Net profit after tax $8.1m $8.0m $6.6m $5.2m $4.2m $3.4m $3.1m $2.8m 2004 2005 2006 2007 2008 2009 Trusted since 1888 7
Slide 8: Operating revenue - diversified
Operating revenue - diversified ¾ Operating revenue down 13.7% to $33.8m $39.2m Investment income ($m) 1.2 Business units ($m) $33.8m Variance – 2009 vs 2008 $32.4m 1.1 1.1 (2.9) (1.5) (0.1) (1.4) +0.5 $24.8m 1.2 Private Clients $19.8m Funds 1.0 38.0 39.2 Management $16.8m Fund 33.8 0.7 31.3 32.7 Se
Slide 9: Operating revenue - composition
Operating revenue - composition ¾ An even spread of revenue across business units $39.2m 3% Investment income $33.8m $32.4m 20% 3% Superannuation 3% Fund Services Funds Management 16% 25% Private Clients $24.8m 24% 5% 24% $19.8m 18% 24% 5% $16.8m 4% 17% 23% 26% 17% 16% 28% 13% 25% 32% 30% 35% 29% 27
Slide 10: Sensible focus on expense management
Sensible focus on expense management Management focus on responsible approach to costs ¾ Investment in people, systems & processes continued ¾ Expense growth lower than revenue growth = margin improvement Strategic decision to maintain investment +30.8% in 2008/09 – focus on ability to respond to ma
Slide 11: Earnings per share
Earnings per share ¾ Earnings per share down 26.2% to 98.45¢ per share 133.35 105.18 Weighted average shares on issue (‘000) 98.45 8,000 8,138 7,923 7,742 69.94 7,372 7,000 52.98 45.52 6,423 6,176 6,000 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Trusted since 1888 11
Slide 12: Returns to shareholders
Returns to shareholders ¾ Full-year, fully-franked dividend maintained Strategic decision to maintain dividend at the same level as the prior year. This reflects: 110 110 ¾ Confidence in the prospects of the business ¾ Ongoing strong cash flow generation ¾ Strong balance sheet – nil debt ¾ High leve
Slide 13: Net asset base
Net asset base ¾ Strong net asset base. Nil debt. $52.0m $52.9m $44.4m $36.4m ¾ No impairment charges on recent acquisitions ¾ Minimal mark to market impact on investment portfolio $21.6m $16.5m 2004 2005 2006 2007 2008 2009 Trusted since 1888 13
Slide 14: Sustained share price outperformance
Sustained share price outperformance 800 EQT Total Shareholder Return ¾ Assumes all dividends are reinvested. 700 600 1 July 2003 to 30 June 2009 500 EQT Total Shareholder Return + 183.2% S&P/ASX 200 Accum. Index + 69.4% 400 300 Base (100) taken at 1 July 2003 200 100 S&P/ASX 200 Accumulation Index
Slide 15: Business units – operations & performance
Business units – operations & performance 2009 Revenue 2009 FUM Business unit Key services Target market vs 2008 vs 2008 Private Clients ¾ Wealth Management Private investors $7.6m $1,112m ¾ Personal superannuation (27.6%) (16.6%) ¾ Asset Management ¾ Trusts & Estates ¾ Philanthropy ¾ Tax Funds Mana
Slide 16: Business unit overview - Private Clients
Business unit overview - Private Clients Operating revenue down 27.6% to $7.6m AUM down 16.6% to $1,112m Significant one-off estates boost Cyclical downturn in estates business. Other business lines at run-rate allowing for impact of markets 1,490 10.4 1,303 1,333 9.3 1,128 1,112 7.6 998 5.9 6.1 5.2
Slide 17: Business unit overview – Funds Management
Business unit overview – Funds Management Operating revenue down 15.1% to $8.5m FUM down 18.1% to $1,938m 2,367 10.0 2,002 9.0 1,938 8.5 7.5 6.4 1,414 5.9 989 617 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 Shift from Diversified across major asset classes growth assets • Positive ne
Slide 18: Business unit overview - Fund Services
Business unit overview - Fund Services Operating revenue down 15.1% to $8.1m FUA down 20.2% to $11,209m 13,845 14,046 9.6 8.1 11,130 11,209 7.7 5.6 7,211 3.1 4,130 2.1 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 • Ongoing enquiry from domestic and global investment managers as market
Slide 19: Business unit overview - Superannuation
Business unit overview - Superannuation Operating revenue up 6.7% to $8.5m Revenue - existing & acquired businesses Addition of Freedom 2.2 of Choice, MBC & TSM 2.0 8.5 7.9 5.9 6.3 5.3 5.3 4.4 4.4 2.9 3.4 2.9 3.4 2004 2005 2006 2007 2008 2009 2004 2005 2006 2007 2008 2009 FUM down 8.1% to $565m • On
Slide 20: Business update
Business update Regulatory changes ¾ EQT an active participant in national Trustee Company legislation. ¾ Changes expected to be introduced in 2010. ¾ Other government and industry inquiries being monitored. EQT will participate through industry channels as required. All business units well position
Slide 21: Outlook
Outlook Company base is solid: ¾ Business units established, performing well and have good relationships with key clients. ¾ Active sales & marketing culture - client numbers increasing across business. ¾ Investment in people and systems maintained through downturn. ¾ Remuneration structure well lin
Slide 22: Equity Trustees Limited ABN 46 004 031 298, Australian Financial Services Licence No 240975
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 action on specific iss