Slide 1: Equity Trustees Strong Half Year Result Delivers 5% Increased Dividend
27 February 2013 For personal use only Equity Trustees Strong Half Year Result Delivers 5% Increased Dividend Update on Takeover Offer for Trust Company Equity Trustees Limited (ASX: EQT) today confirmed a lift in half year revenue of 8.3% and a 13.8% increase in net profit after tax for the six mon
Slide 2: Takeover offer for The Trust Company
-2- Takeover offer for The Trust Company Mr Burns added, “On 21 February 2013, EQT announced its intention to make a takeover offer to acquire all of the shares in The Trust Company (ASX: TRU). It is not just our view but also that of market observers and many of the interested shareholders with who
Slide 3: Appendix 4D – Half Year Report
Appendix 4D – Half Year Report For personal use only Name of entity Equity Trustees Limited ABN or equivalent company reference Half Year Ended 46 004 031 298 31 December 2012 RESULTS FOR ANNOUNCEMENT TO THE MARKET 31 Dec 12 31 Dec 11 $ '000 $ '000 Revenue from ordinary activities 22,805 Up 8.3% Fro
Slide 4: ASX Additional Information
ASX ADDITIONAL INFORMATION Additional information required by the ASX, and not shown elsewhere in this report, follows. The information is current as at 31 December 2012. Net tangible asset backing per share The net tangible asset backing per share at 31 December 2012 was $1.85 (2011: $1.28), which
Slide 5: Consolidated Half Year Financial Report
For personal use only Equity Trustees Limited ABN 46 004 031 298 Consolidated Half Year Financial Report for the half year ended 31 December 2012
Slide 6: Directors' Report
Equity Trustees Limited ABN 46 004 031 298 Directors' Report For personal use only The directors of Equity Trustees Limited submit herewith the financial report for Equity Trustees Limited and its subsidiaries (the Group) for the half year ended 31.December.2012. In order to comply with the provisio
Slide 7: Directors' Report (cont'd)
Equity Trustees Limited ABN 46 004 031 298 Directors' Report (cont’d) For personal use only Dividends During the half year period the company paid a fully franked final dividend of 45 cents per share in respect of the financial year ended 30 June 2012. Subsequent to 31 December 2012, the directors h
Slide 8: Auditor's Independence Declaration
Deloitte. Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melboume VIC 3000 GPO Box 78 Melboume VIC 3001 Australia DX: 111 Tel: +61 (0) 3 9671 7000 Fax: +61 (0) 9691 8021 www.deloitte.com.au The Board of Directors Equity Trustees Limited Level 2 575 Bourke Street MELBOURNE VIC 3000 27
Slide 9: Directors' Declaration
Directors' Declaration The directors declare that: a) in the directors' opinion, there are reasonable grounds to believe that the company will be able to pay its debts as and when they become due and payable; and For personal use only b) in the directors’ opinion, the attached financial statements a
Slide 10: Condensed Consolidated Statement of Profit or Loss
Equity Trustees Limited Condensed Consolidated Statement of Profit or Loss for the half year ended 31 December 2012 Consolidated Half year ended Half year ended 31 Dec 2012 31 Dec 2011 For personal use only $ $ Continuing operations Revenue 22,222,309 20,524,538 Other revenue 582,614 536,397 Total r
Slide 11: Statement of Profit or Loss and Other Comprehensive Income
Equity Trustees Limited Condensed Consolidated Statement of Profit or Loss and Other Comprehensive Income for the half year ended 31 December 2012 Consolidated Half year ended Half year ended 31 Dec 2012 31 Dec 2011 $ $ For personal use only Net profit after income tax expense from continuing operat
Slide 12: Condensed Consolidated Statement of Financial Position
Equity Trustees Limited Condensed Consolidated Statement of Financial Position as at 31 December 2012 Consolidated 31 Dec 2012 30-Jun-12 For personal use only Note $ $ Current assets Cash and cash equivalents 7,837,772 9,898,656 Trade and other receivables 5,296,087 4,870,866 Other 3,501,475 2,720,3
Slide 13: Condensed Consolidated Statement of Changes in Equity
Equity Trustees Limited Condensed Consolidated Statement of Changes in Equity for the half year ended 31 December 2012 Reserves Fully paid Investment Equity Retained Attributable Non- Total Equity ordinary revaluation settled earnings to owners controlling shares benefits of the parent interests For
Slide 14: Condensed Consolidated Statement of Cash Flows
Equity Trustees Limited Condensed Consolidated Statement of Cash Flows for the half year ended 31 December 2012 Consolidated Half-year ended Half-year ended 31 Dec 2012 31 Dec 2011 For personal use only $ $ Cash flows from operating activities Receipts from customers 25,764,709 24,528,971 Payments t
Slide 15: Notes to the Condensed Consolidated Financial Statements
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for half year ended 31 December 2012 1. Summary of accounting policies Statement of compliance For personal use only The half year financial report is a general purpose financial report prepared in accordance with the C
Slide 16: Notes: Dividends and Acquisition of businesses
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half year ended 31 December 2012 Half year ended Half year ended 31 Dec 2012 31 Dec 2011 Cents per Cents per share $ share $ For personal use only 2. Dividends Recognised amounts Fully paid ordinary shares Final
Slide 17: Notes: Acquisition of businesses (cont'd)
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half year ended 31 December 2012 3. Acquisition of businesses (cont'd) Half year ended 31 Dec 2012 31 Dec 2011 For personal use only Goodwill arising on acquisition $ $ Consideration - 1,384,589 Less fair value
Slide 18: Notes: Segment information
Equity Trustees Limited Notes to the Condensed Consolidated Financial Statements for the half year ended 31 December 2012 8. Segment information AASB 8 requires operating segments to be identified on the basis of internal reports about components of the Group that are regularly reviewed by the chief
Slide 19: Independent Auditor's Review Report
Deloitte. Deloitte Touche Tohmatsu ABN 74 490 121 060 550 Bourke Street Melbourne VIC 3000 GPO Box 78 Melboume VIC 3001 Australia DX: 111 Tel: +61 (0) 3 9671 7000 Fax: +61 (0) 9691 8021 www.deloitte.com.au Independent Auditor’s Review Report to the Members of Equity Trustees Limited We have reviewed
Slide 20: For personal use only
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. Dik Ze ~—— DELOITTE TOUCHE TOHMATSU —_—— Neil Brown Partner Chartered Accountants 27 February 2013
Slide 21: Half Year Results
For personal use only Equity Trustees Limited (EQT) Half Year Results to 31 December 2012
Slide 22: Contents & Disclaimer
Contents & Disclaimer For personal use only Disclaimer Contents Equity Trustees Limited ABN 46 004 031 298, Australian Financial Services Licence No 240975. This document was prepared by Equity Trustees Limited (“EQT”) and is only 1. Half Year Results to 31 provided for information purposes. It is n
Slide 23: 1H 2013 Financial Results
For personal use only 1H 2013 Financial Results
Slide 24: Overview – HY to Dec 2012
Overview – HY to 31 Dec 2012 For personal use only 9 Revenue +8% • Organic growth drives increase in the 9 Expenses +6% revenue of both Business Units • Margin improvement through cost 9 Operating margins +6% control 9 Profit before tax +15% • FUM continues to increase - favourable 9 EPS +9% market
Slide 25: Overview – HY group results
Overview – HY group results For personal use only Half Year Half Year 31 Dec 2012 31 Dec 2011 Change $m $m Operating revenue 22.5 20.7 8% Operating expenses (16.7) (15.7) (6 %) Operating profit before tax 5.8 5.0 15 % Income tax expense (1.7) (1.4) Operating profit after tax 4.1 3.6 14 % Non-operati
Slide 26: Progress of key internal initiatives
Progress of key internal initiatives For personal use only Initiative Status • Private Wealth Services Business Unit created 1 Restructuring • Single group‐wide administration and IT support unit formed • Strategic Business Development Project 2 Private Wealth Services underway Project “Foundation”
Slide 27: HY Revenue
HY Revenue For personal use only Revenue increased 8.3% Investment Income ($m) $22.5m (Excludes profit on sale of investments) $20.7m 0.2 Business Unit Revenue ($m) $18.6m $18.7m 0.2 $18.1m 8.3% $16.9m increase 0.6 0.4 $15.8m 0.6 0.4 0.5 22.3 18.0 20.5 15.3 17.5 18.3 16.5 2007 2008 2009 2010 2011 20
Slide 28: HY Expenses
HY Expenses For personal use only Operating costs increased 6% $16.7m $15.7m $13.7m $12.0m $12.0m $11.6m $10.6m 2007 2008 2009 2010 2011 2012 2013 8
Slide 29: HY Operating margin
For personal use only HY Operating margin 9
Slide 30: HY Operating revenue – composition
HY Operating revenue – composition For personal use only 10
Slide 31: HY Reported earnings per share
HY Reported earnings per share For personal use only Reported earnings per share at 49.3¢ per share Earnings Per Share Weighted average shares on issue ('000) 64.48 9,000 8,938 50.86 49.32 8,589 47.35 44.23 43.85 45.08 8,441 8,291 8,000 8,085 7,880 7,710 7,000 2007 2008 2009 2010 2011 2012 2013 2007
Slide 32: Returns to shareholders
Returns to shareholders For personal use only Increased fully-franked interim dividend 12
Slide 33: Sustained shareholder return
Sustained shareholder return For personal use only 1 Jul 2005 to 31 Dec 2012 EQT total shareholder returns. Assumes all dividends are reinvested EQT total shareholder return + 92.8% S&P/ASX 200 Accum. Index + 51.5% S&P/ASX 200 Diversified - 16.0% Financials Accum. Index Base (100) taken at 1 July 20
Slide 34: Business units - HY operations & performance
Business units - HY operations & performance For personal use only HY Revenue HY FUM/FUA Target market / Business unit Key services 31 Dec 12 vs 31 Dec 12 vs channel 31 Dec 11 31 Dec 11 Private Wealth • Trusts & Estates • Private clients $11.9m $2,434m Services • Philanthropy • Aged Care clients + 5
Slide 35: Business unit HY overview – PWS
Business unit HY overview – PWS For personal use only Operating revenue up 5.2% to $11.9m FUM at 31 December 2012 up 5.7% to $2,434m 11.9 2,434 11.3 2,303 2,294 9.5 2,110 8.4 8.2 1,917 8.1 1,841 7.5 1,637 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 15
Slide 36: Business unit HY overview – CFFS
Business unit HY overview – CFFS For personal use only Operating revenue up 12.9% to $9.9m FUM at 31 December 2012 up 35.0% to $25,529m 25,529 9.9 9.3 18,914 8.8 18,403 8.6 8.3 16,929 7.4 7.8 15,795 13,955 12,488 2007 2008 2009 2010 2011 2012 2013 2007 2008 2009 2010 2011 2012 2013 16
Slide 37: Business HY update and summary
Business HY update and summary For personal use only • Business continues to perform well • Positive momentum in revenue and operating margin in January – augurs well for full year in absence of any adverse external factors • Potential regulatory changes being monitored – CAMAC review of philanthrop
Slide 38: Takeover Offer for The Trust Company
For personal use only Takeover Offer for The Trust Company
Slide 39: EQT announced the offer
EQT announced the offer on 21 February For personal use only • EQT announced the intention to make a formal takeover offer for all of The Trust Company (“TRU”) • The Offer comprises: − 33 EQT shares for every 100 TRU shares − TRU shareholders retain up to 17 cents dividends per share − TRU sharehold
Slide 40: EQT + TRU = a value adding combination
EQT + TRU = a value adding combination For personal use only Creation of a leading Australasian private and corporate trustee services provider – fulfilling a long-standing corporate opportunity for consolidation and efficiency gains. 20 Note: Refer to ASX announcement on 21 February 2013 for furthe
Slide 41: Key benefits – for EQT shareholders
Key benefits – for EQT shareholders For personal use only Benefits are expected to increase earnings and dividends for all shareholders 1. Cost synergies of up to $8m p.a. is estimated 2. Opportunity to increase revenues by marketing the wide range of existing and new products/services across a larg
Slide 42: EQT has a strong track record of delivering
EQT has a strong track record of delivering For personal use only EQT has delivered on our key initiatives. • Successfully restructured operations into two key business units • Implemented a single, group-wide systems structure for all support operations • Acquired and integrated aged care advisory
Slide 43: EQT has consistently outperformed TRU
EQT has consistently outperformed TRU up to announcement of the offer For personal use only Base (100) taken at 20 10 year CAGR: 12.3% February 2003 10 year CAGR: 0.2% Source: IRESS (as at 20 February 2013 – prior to Offer announcement) 23 CAGR: Compound Annual Growth Rate – of share price performan
Slide 44: EQT has the right team to deliver
EQT has the right team to deliver For personal use only The Offer ensures that the best team is in place to integrate the two companies. • Board – All the current EQT Board remain – Intention to extend an invitation for up to 2 TRU directors to join the Board – Led by EQT’s Chairman, Mr Tony Killen
Slide 45: Change in share prices since announcement
Change in share prices since announcement For personal use only • Shareholders of both EQT and TRU have benefited from the takeover offer to date – EQT share price +9% – TRU share price +19% • It is uncommon for the share price of both companies involved in a takeover to increase – A strong sign of