EQT Holdings Ltd. · ASX:EQT
EQT — Equity Trustees — H1 FY2008 Earnings Presentation
22 slides from EQT's earnings presentation, February 2008
Slide 1: Equity Trustees Limited Half Year Results to 31 December 2007
1 Equity Trustees Limited Half Year Results to 31 December 2007
Slide 2: Equity Trustees
2 Equity Trustees An independent Australian based Trusted since 1888 financial services firm that is increasing its market presence and generating improved returns. Our performance is based upon: ¾ Well developed revenue streams ¾ Clear performance indicators ¾ An established growth strategy
Slide 3: Strategic direction
3 Strategic direction 2004 2005/06 2006/07 Æ Trusted since 1888 Recovery Organic Step Growth Growth Cultural change. Improvement in Improvement in processes profit margins enabling better Development of appropriate through quality business. marketing, merger and efficiency gains. acquisition opportu
Slide 4: Half year overview
4 Half year overview 2008 2007 Trusted since 1888 Group operating revenue $18.6m $15.8m + 18.0% Group operating expenses ($11.6m) ($10.6m) + 9.9% Group operating profit (before-tax) $7.0m $5.2m + 34.1% Income tax expense ($2.2m) ($1.6m) Group operating profit (after-tax) $4.8m $3.6m + 32.5% Profit o
Slide 5: Revenue up, expenses controlled
5 Revenue up, expenses controlled 35 $m 35 $m Operating revenue up 18% Operating expenses up 9.9% Trusted since 1888 30 30 2nd Half 2nd Half 25 1st Half 25 1st Half 16.6 20 20 13.2 10.7 15 10.4 15 9.2 8.5 18.6 8.1 10 10 6.5 15.8 11.6 11.6 10.6 5 9.4 5 9.0 8.3 7.2 7.5 0 0 2004 2005 2006 2007 2008 200
Slide 6: Profitability is up
6 Profitability is up 12 $m 12 $m Operating profit before tax Net profit after tax up 39.2% up 34.1% Trusted since 1888 10 10 2nd Half 2nd Half 1st Half 1st Half 5.9 8 8 6 6 4.5 4.0 7.0 4 4 3.3 5.0 2.3 5.2 1.7 2 2.0 2 1.5 3.6 2.6 1.9 1.9 1.7 1.1 1.3 0 0 2004 2005 2006 2007 2008 2004 2005 2006 2007 2
Slide 7: Return to shareholders is up
7 Return to shareholders is up 80 ¢ Trusted since 1888 Dividends up 66.7% 70 • Dividend payout ratio is Final at mid-point of stated 60 Interim target range – being 70- 50 45 90% of operating profit after tax (incl after-tax 40 gains on sale of 30 investments) 30 50 25 • Dividends remain fully 20 fr
Slide 8: Reflected in total shareholder return
8 Reflected in total shareholder return 800,000 $100,000 invested in Equity Trustees shares on 1 July 2003 would be worth around $530,000 in February 20081 Trusted since 1888 700,000 600,000 500,000 EQT S&P/ASX200 Accumulation Index 400,000 300,000 200,000 100,000 0 03 03 03 04 04 04 04 04 04 05 05
Slide 9: Well diversified revenue streams
9 Well diversified revenue streams Corporate superannuation: Sales & marketing + product management for Trusted since 1888 • Wealthpac EQT co-branded funds • Templetons managed by external • Freedom of Super- specialists Choice annuation Funds 19% Management 29% Fund Services 26% Private Clients Wea
Slide 10: Consistent business unit contribution
10 Consistent business unit contribution Contribution reflects share of operating revenue Trusted since 1888 100% Acquisition benefit 17% 17% Super- 90% 19% 19% 19% annuation not reflected in half year revenue result 80% 12% 18% 70% 23% 25% Continued strong RE 26% Fund Services inflow – domestic & 6
Slide 11: Funds Management
11 Funds Management 10.0 $m 2,500 Operating revenue up 21% $m FUM up 16% (half year) 9.0 2,326 Trusted since 1888 8.0 2,000 2nd Half 1st Half 2,002 7.0 4.7 6.0 1,500 3.9 5.0 1,414 3.4 2.9 4.0 1,000 5.2 989 3.0 4.3 2.0 3.6 500 618 3.0 3.0 1.0 0.0 0 2004 2005 2006 2007 2008 Jun-2004 Jun-2005 Jun-2006
Slide 12: Asset class diversity
12 Asset class diversity EQT co-branded funds by asset class Trusted since 1888 100% • Diversified 19% across major 90% 20% Listed 22% 22% property asset classes 80% 37% 70% 23% 23% Cash & • Growth in 30% 60% 33% fixed interest global equities 50% 30% 13% 2% 9% 19% Global • Ongoing relationships 40%
Slide 13: Private Clients
13 Private Clients 11 $m Operating revenue down 4% 1,800 $m AUM down 0.7% (half year) 10 1,600 Trusted since 1888 9 2nd Half 1,400 1,490 1,479 8 1st Half 1,200 1,303 7 4.4 6 1,000 1,128 998 5 800 3.0 3.2 4 2.5 600 3 4.7 4.9 400 2 2.7 2.9 2.9 200 1 0 0 2004 2005 2006 2007 2008 Jun-2004 Jun-2005 Jun-2
Slide 14: Asset management capability
14 Asset management capability EQT Flagship Fund EQT Charitable Balanced Fund Australian equity fund seeking franked A balanced fund exclusively for Trusted since 1888 income streams charitable investors ¾ A concentrated portfolio of ¾ Fund of funds model investing S&P/ASX200 stocks predominantly in
Slide 15: Fund Services
15 Fund Services 9 $m 18,000 $m Operating revenue up 31% FUA up 12% (half year) 8 16,000 Trusted since 1888 7 2nd Half 14,000 15,471 1st Half 13,845 6 12,000 4.2 5 10,000 11,086 4 3.2 8,000 7,401 3 4.6 6,000 1.7 2 4,000 3.5 1.2 4,250 1 2.4 2,000 1.4 0.9 0 0 2004 2005 2006 2007 2008 Jun-2004 Jun-2005
Slide 16: Superannuation
16 Superannuation 6 $m 700 $m Operating revenue up 35% FUM up 3% (half year) 653 Trusted since 1888 600 635 5 2nd Half 1st Half 500 4 2.7 400 2.4 3 400 300 1.8 319 1.5 3.5 2 200 2.6 1 2.0 100 149 1.4 1.6 0 0 2004 2005 2006 2007 2008 Jun-2004 Jun-2005 Jun-2006 Jun-2007 Dec-2007 • Benefit of acquisiti
Slide 17: Impact of January volatility
17 Impact of January volatility $m $m $m $m 2,326 1,479 653 15,471 2,165 1,395 14,946 Trusted since 1888 596* Funds Private Fund Super- Management Clients Services annuation FUM down FUA down AUM down FUM down 6.9% 5.7% 3.7% 8.7% Dec-2007 Jan-2008 Dec-2007 Jan-2008 Dec-2007 Jan-2008 Dec-2007 Jan-200
Slide 18: Support services
18 Support services • Continuing to invest in business Trusted since 1888 • Right people, right systems to match business requirements • Marketing activity lifting profile • IT projects delivering scale & efficiency • Process improvement in all business lines • Acquisition activity remains part of g
Slide 19: Outlook
19 Outlook • Market movements will affect performance. A Trusted since 1888 cautious approach to business and risk management ensures that we are relatively well placed in volatile markets • All business units have well established revenue streams • Investment in people, systems and processes provid
Slide 20: Forecast
20 Forecast Assuming no further significant market corrections: Trusted since 1888 • Post-tax earnings (inclusive of investment gains) forecast to increase by around 30%
Slide 21: Summary
21 Summary • Strong first half performance with solid base for full Trusted since 1888 year result • Margin growth reflects efficiency • Acquisitions (in superannuation business unit) proceeding well with revenue benefit to follow • Cautious about market volatility but well positioned to meet challe
Slide 22: ‘[rustees
EO ‘[rustees Trusted since 1888