Slide 1: Treasury Group 2008 Annual Results
Tuesday, 26 August 2008 TREASURY GROUP 2008 ANNUAL RESULTS Continued momentum and diversification of earnings Treasury Group (ASX:TRG) today announced a consolidated net profit after tax of $17.24 million for the financial year to 30 June 2008. This result highlights the continued growth of new busi
Slide 2: Highlights of the 2008 year
Highlights of the 2008 year • Net profit after tax of $17.24 million; • Final fully franked dividend declared of 30 cps, resulting in a full year dividend of 60 cps; • Continued strong growth in RARE, TAAM and GVI; • TAAM won the Money Management Emerging Markets Fund Manager of the Year award for 2
Slide 3: Revenue, EBITDA, pre-tax profit and earnings per share analysis
The increase in revenue is due to an increase in the average FUM for the three fund managers referred to above from $6.24b in 06/07 to $6.75b in 07/08. * The 40% investment in TAAM is consolidated due to Treasury Group’s control of the board. Earnings Before Interest, Tax, Depreciation and Amortisat
Slide 4: Normalised earnings and cash flow
Reported net profit after tax $17.24m Marked to market losses (after tax) $0.67m Revaluation increment (after tax) ($0.68m) Write off of CAM $0.10m NPAT excluding one off items $17.33m Whilst this represents a decrease of 2.7% on the headline NPAT for 2006/07, the result is an 8.6% increase over the
Slide 5: Review of Operations
Review of Operations Treasury Group Investment Services (TIS) - (wholly owned subsidiary) Treasury Group through TIS, provides its managers with a full suite of business support services as well as being the Responsible Entity for investment products issued by group managers. TIS also acts as invest
Slide 6: Global Value Investors and Treasury Asia Asset Management
Global Value Investors (GVI) - (58% owned at 30 June 2008) Excellent investment performance derived from a focused, value based global equity process, has seen GVI increase its presence in the retail market in Australia. With over four years of competitive investment returns, the GVI team is focusin
Slide 7: Outlook
Outlook The long term business goals of Treasury Group remain focussed on growing the manager line up, continual enhancement of support services, building an extensive network of local and global marketing contacts, all leading to a healthy growth in profits. The current economic uncertainty in the
Slide 8: Financial results and business update Year end June 2008
Treasury Group Financial results and business update Year end June 2008 1
Slide 9: Financial results – 12 months to 30 June
Financial results – 12 months to 30 June 2008 2007 Total revenue $62.91m $58.25m +8.0% Net profit after tax $17.24m $18.00m -4.2% Normalised net profit after tax $17.33m $15.95m +8.6% Basic earnings per share 75.29 cents 80.08 cents -6.8% Dividend per share (fully franked) 60.0 cents 60.0 cents Payo
Slide 10: Financial results – Dividend policy and history
Financial results – Dividend policy and history Dividend policy: 1. Aim to maintain an attractive annual dividend 2. Pay a half yearly dividend equal to half the previous full year dividend DIVIDENDS IN CENTS PER SHARE 30 cps 2007/08 30 30 To be paid on 26 September 2006/07 25 35 2008 2005/06 18 32
Slide 11: Capital management - buyback
Capital management - buyback Treasury Group announced a buyback in March 2008 An amount of $10m was allocated to the buyback Buyback period to end in March 2009 Stock bought to date: 187,157 shares Value of stock bought to date: $1,793,237 Average price: $9.58 The buyback remains open and will manag
Slide 12: Expenses
Expenses General expenses increased by $3m. This included $1.48m of mark to market losses on funds used to seed new products. General expenses including rent, travel, insurance, and IT services increased. Employment expenses across the group increased by $3.9 on a consolidated basis. Remuneration ad
Slide 13: Financial results – funds under management
Financial results – funds under management FUNDS UNDER MANAGEMENT ($BILLIONS) 18 16 All managers associated with Treasury Group 14 12.30 12.49 12 10 8.67 8 Total funds under management were 6 impacted by the fall in world stock 4 2.38 markets. This has been partially 2 offset by cash flows from exis
Slide 14: Profile - manager type
Profile - manager type Australian equities, value manager Australian equities, growth manager Australian equities, value manager Global equities, value manager Asian equities, absolute manager Global listed infrastructure manager RE, support services and group buying power for the boutiques European
Slide 15: Update – support services
Update – support services RE, support services and group buying power for the boutiques European funds run out of Dublin for European investors Establishment and licensing of Cannae Capital Partners Launched five new managed investment schemes during the year Introduction of Anti Money Laundering an
Slide 16: Business update – Australian equity managers
Business update – Australian equity managers IML continues to adhere to its long held value philosophy, although its underweighting to the Resource sector has adversely impacted its Funds' performances FUM fell over the year mainly as a result of a steep drop in the Australian sharemarket, particula
Slide 17: Business update – Australian equity managers
Business update – Australian equity managers Another strong year of investment performance has cemented Orion’s reputation as one of Australia’s leading boutique fund managers Orion now has a track record extending over five years and has built strong client relationships The relationship with US ba
Slide 18: Business update – International equity managers
Business update – International equity managers Excellent investment performance based on a focused value based global equity process has seen GVI grow its presence in the retail market in Australia With over four years of competitive investment returns the GVI team are focusing on continuing their
Slide 19: Business update – Alternative managers
Business update – Alternative managers Growth in funds under management to over $800m has been from various sources including local superannuation funds, local retail investors, and global clients based in North America and Europe Investment performance has been good and interest in global listed in
Slide 20: Current themes
Current themes Marketing – distribution strength continues to grow A number of new high quality local and offshore clients An expanding network of local and global contacts Greater focus on alternative investments Increase in the number of new boutiques and business opportunities being assessed A ch
Slide 21: Strategic focus
Strategic focus Continual enhancement of support services and group buying power Continue to assess and support a range of new business opportunities Keep the focus on quality investment people / teams Expand our marketing influence with international networks (eg: Sovereign wealth funds) We believe
Slide 22: Some facts
Some facts 2003 2008 Number of boutiques: 3 7 Number investment professionals 14 50 Number of investment schemes 6 22 Net profit after tax $1.16m $17.24m Funds under management $2.4b $12.49b Dividends 3 cents per share 60 cents per share Industry facts: Superannuation assets * $546,700m $1,143,200m
Slide 23: Disclaimer
Disclaimer While the information contained in this presentation has been prepared with all reasonable care, Treasury Group Limited accepts no responsibility or liability for any errors, omissions or misstatements however caused. This information is not personal advice. This information has been prep