Perpetual Limited · ASX:PPT
Perpetual — Perpetual Trustees Australia — FY2003 Earnings Presentation
28 slides from Perpetual's earnings presentation, Aug 6, 2003
Slide 1: Perpetual Trustees Australia Limited 2003 Results Briefing
Perpetual Trustees Australia Limited 2003 Results Briefing Graham Bradley — Managing Director Michael Stefanovski — Chief Financial Officer 6 August 2003
Slide 2: 2003 Financial Results
2003 Financial Results > Eighth consecutive record operating profit : $68.2m — up 16 % > Revenue up 8.6% to $265.0m in tough market > EBITDA up 13%, reflecting careful expense management > Net profit $78.2m, up from $75.6m
Slide 3: Other Highlights of 2003
Other Highlights of 2003 Vv Vv Consistent profits in a testing year for our industry Outstanding Australian fund performance — all Australian equity funds generated positive returns Growth in retail/masterfunds offsetting loss of institutional FUM Continued strong growth in Corporate Trust New clien
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Slide 5: The same story...
The same story... Solid performance, solid financial position > Record profit and improved profitability ~ EBITDA margin ~ Revenue/FUM ‘Healthy’ financial position APRL improving Cash balance and free cash flow Dividends to shareholders Exposure to asset values Exposure to investor sentiment Sound s
Slide 6: Growing core revenues
Growing core revenues - ($m) @ Core revenues O APRL and Fund Services un. 02. sal UNS Financial year ended .
Slide 7: Improving profitability
Improving profitability ($m) [Revenue EBITDA | 290.3 245.2 202.9 134.9 265.0 244.1 100:7 113.6 60.3 714 82:0 40. * Jun 88 ung uno Jun a1 Jun 02 Jun 08 EE wT 23.1 2 P82] a3 a28 [ EBITDA / Revenue % Financial year ended
Slide 8: Growing EBITDA
Growing EBITDA Jun'02 Jun'03 Change $m $m % Operating revenue 235.7 254.0 8 Investment income 8.4 11.0 31 Total revenue 2441 265.0 9 Staff related expenses 93.2 103.2 11 Occupancy expenses 6.0 6.2 3 Admin & general expenses 442 420 5 Total operating expenses 144 151.4 6 Earnings before interest, tax
Slide 9: Revenue and EBITDA by segment
$m Revenue EBITDA % EBITDA Margins Wealth Outsourced Unallocated Consolidated Management Support Services, Jun 03 Jun 02 Jun 03 Jun 02 Jun 03 Jun 02 Jun03 Jun 02 212.1 199.1 49 366 11.0 8.4 265.0 244.1 91.6 94.2 236 17.7 (1.6) (11.2) 113.6 100.7 43.2 47.3 56.3 48.4 42.9 413
Slide 10: Growing profit before tax and gains on investments
Growing profit before tax and gains on investments ($m) 96.1 837 sv. 494 446 iF - dun 98 Jun 99 dun 00 dun 07 dun 02 Jun 03 Financial year ended
Slide 11: Basic EPS
Basic EPS EPS and dividend growth (¢ per share) 147.4 110.1 86.9 72.5 Normal dividends 199.9 207.1 Special Jun 98, ‘Jun 99 Jur oo “dunt dun.02 * dun 03 [246] [z64] [256] [B73] [378] [372] [ Weighted average number of shares (rm) ] dividend Financial year ended
Slide 12: Return on shareholders equity
Return.on shareholders equity: (percent) 25.41 23.9 on apa 210 18.9 : | : Jun 98 Jun 99 dun-00 Jun 04 Jun, 02 Jun 37 Financial year ended * Does not include the provision for final dividend of 70c per share to be paid on 3 September 2003 as per AASB 1044
Slide 13: Return on shareholders equity
Return on shareholders equity (percent) GROE including movement in reserves OROE including realised investment gains fe Returon shareholders’ equity W4 26.9 22.9. 38.4 30.8 287 Jun, 98 Jun.93 dunt. Le dua o3* Financial ‘Year Ended * Does not include the provision for final dividend of 70c per share
Slide 14: Operating cash flow
Operating cash flow. ($m) 102.4 98.1 Jun 03 ~ Financial year ended
Slide 15: Solid performance
Solid performance VV VV VW WV WV WV Revenue [244.1 — 265.0] EBITDA [100.7 — 113.6] Profit before tax and realised gains [83.7 —> 96.1] Net profit (excl realised gains) [58.7 — 68.2] Net gains on sale of investments/business Return on equity Basic EPS [199.9 — 207.1] Operating EPS [155.2 — 180.6] Div
Slide 16: Solid financial position
Solid financial position Net assets: $287.4m Investments at cost $68.8m — market value: $102.1m Cash holdings: $113.2m Cash and investments (MV) equate to $5.70 per share Franking credits: $54.8m Borrowings equate to 16.7% of equity VV VV VV WV Interest expense covered 37 times by EBITDA = ‘Same old
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Slide 18: Perpetual Investments
Perpetual Investments VV VV V WV Revenues up 10.3% to $146.5m Very strong Australian equities fund performance High research ratings and shelf space retained Five star mortgage fund grew strongly to $2.4b International fund performance improving New funds launched, making progress ~ Share-Plus, Gear
Slide 19: FUM by asset class ($b)
FUM. by asset class.($b) 5.9 41.6 17.4 TOTAL FUM 15.6 419.4 18 25 24 Jun ag Juno Jun at Jun 02 Jun a3 Australian Equity 2 International Equity O Mortgages. Fixed Interest & Cash C Diversified & Property
Slide 20: Strong retail/masterfund inflows
Strong retail/masterfund inflows FUM ($b) 6.9 11.6 15.6 19.4 17.4 Jun 99 Jun a0 Jun 04 Jun 02 Jun ag O Masterfund Retail Institutional
Slide 21: Personal Financial Services
Personal Financial Services VV VV WV WV Revenues $65.6m — in line with 2002 Market values affected revenues and earnings But gross inflows were solid — $760m Financial advisory model performing well Overall cost base improved for 2004 Total funds managed — $5.1b
Slide 22: Corporate Trust
Corporate Trust > Another strong year — revenues up 14.5% to $41.9m > Securitisation assets up 36% to $71b > RMBS data collection agent for Standard & Poors > Newclients won: SG, Merrill Lynch, Investec, Firstmac, MacLaughlins, Macarthur Cook, James Fielding > Fund governance solutions unit winning
Slide 23: ASX Perpetual Registrars
ASX Perpetual Registrars > Revenues up 12% to $48.9m, despite subdued markets > EBITDA up 42% to $12.1m > Net loss $0.55m (our share), but trends are positive > Major new clients: Brambles, Fairfax, AA Co, BHP Steel, Investa, Incitec-Pivot, Westpac (Fosters lost) > CBA mandate renewed
Slide 24: Priorities for 2004
Priorities for 2004 > Further extend PI products, launch multi-manager retail masterfund > Maintain strong fund performance, deliver improved international fund returns >» Manage PFS for higher profit yield, while enhancing service quality > Consolidate market position in Corporate Trust > Continue
Slide 25: New Leader — Same Focussed Strategy
New Leader — Same Focussed Strategy VV VV WV No major change in strategic direction Investment style and process sacrosanct Organic growth the main game Value — accretive acquisitions, at the right price Commitment to rising shareholder returns
Slide 26: My Eight Year Journey — I
My Eight Year Journey — | 1995 2003 Revenues ($m) 87 265 Expenses ($m) 72 151 EBITDA ($m) 15 114 Operating PAT ($m) 11.0 68.2 Net Profit ($m) 11.3 78.2 Net Assets ($m) 106 287 EPS (¢) 33 207
Slide 27: My Eight Year Journey — II
My Eight Year Journey — Il 1995 2003 FUM ($b) 2.4 17.4 Staff (FTE) 726 824 Shareholders 3,922 13,000 Shares on Issues (m) 34.6 37.8 DPS (¢) 39 180 Share Price ($) as at 30 June 4.30 30.70 Market Cap ($m) <150 >1,200
Slide 28: Thank you for your support & encouragement
Thank you for your support & encouragement
Perpetual Trustees Australia — FY2003 Earnings Presentation on 6ix