Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — Shareholder Meeting (November 2009)
45 slides from Eqt's shareholder meeting presentation, Nov 6, 2009
Slide 1: Chairman's address to the 2009 Annual General Meeting
Equity Trustees Limited Chairman’s address to the 2009 Annual General Meeting For personal use only Shareholders, ladies and gentlemen, good morning. On behalf of my fellow directors, executives and all staff of Equity Trustees it gives me great pleasure to welcome you to the 2009 annual general mee
Slide 2: Chairman's address: agenda and reporting to shareholders
Equity Trustees Limited Chairman’s address to the 2009 Annual General Meeting I also take the opportunity to welcome in the audience today Mr Craig Henderson For personal use only from Allens Arthur Robinson, our legal advisers and Mr Gary McLean from Deloitte, our auditors. We have long standing re
Slide 3: Chairman's address: market impact on results
Equity Trustees Limited Chairman’s address to the 2009 Annual General Meeting other countries, a continuing cautious outlook and stance to managing the business For personal use only of EQT is still warranted. In the year under review, the impact of the crisis on our business was severe. The S&P ASX
Slide 4: Chairman's address: revenue and expense growth
Equity Trustees Limited Chairman’s address to the 2009 Annual General Meeting This slide tracks the history of the growth in the company’s operating revenue, For personal use only measured in the blue bars, and operating expenses, measured in red. In prior years the company has consistently grown re
Slide 5: Chairman's address: dividend and payout policy
Equity Trustees Limited Chairman’s address to the 2009 Annual General Meeting The Board was therefore comfortable in maintaining the full-year, fully franked For personal use only dividend at the same level as the prior year, namely 110 cents per share, comprising an interim dividend of 50 cents per
Slide 6: Chairman's address: acquisitions and Managing Director retirement
Equity Trustees Limited Chairman’s address to the 2009 Annual General Meeting acquisitions were made in the year under review, primarily because the global For personal use only financial crisis put a big question mark over the values at which willing sellers and buyers might trade. The outlook is s
Slide 7: Chairman's address: outlook
Equity Trustees Limited Chairman’s address to the 2009 Annual General Meeting property department as a teenager working his way up to become the company’s 7th For personal use only Managing Director, a position that he held for 10 years prior to his retirement in 1999 Milton had a wonderful rapport
Slide 8: Chairman's address: outlook continued
Equity Trustees Limited Chairman’s address to the 2009 Annual General Meeting seed investors; and levels of enquiry for future appointments are high as fund For personal use only managers and promoters consider timing in the investment cycle to be right to launch new funds. Net funds flow into Funds
Slide 9: Chairman's address: regulation and conclusion
Equity Trustees Limited Chairman’s address to the 2009 Annual General Meeting We do confront the prospect of some regulatory change, with the new national For personal use only Trustee legislation about to be implemented and a number of market reviews underway. But with an experienced management tea
Slide 10: 2009 Annual General Meeting November 2009
1 For personal use only Equity Trustees Limited 2009 Annual General Meeting 6 November 2009
Slide 11: Board of Directors
For personal use only Board of Directors Mr JA (Tony) Killen Mr Peter Williams Mr David Groves Non Executive Director Managing Director Non Executive Director Chairman Deputy Chairman Mr John McConnell Mr Barry Jackson Ms Alice Williams The Hon Jeffrey Kennett AC Non Executive Director Non Executive
Slide 12: Agenda
Agenda For personal use only 1. Overview and highlights Mr Tony Killen 2. Operational performance Mr Peter Williams 3. Items of ordinary business Mr Tony Killen 4. Questions Trusted since 1888 3
Slide 13: For personal use only
For personal use only Trusted since 1888 4
Slide 14: S&P/ASX200 Index. July 2007 - June 2009
S&P/ASX200 Index. July 2007 - June 2009 7500 53.9% decline from For personal use only 7000 peak (Nov ’07) to trough (Mar ’09) 6500 6000 5500 1H 2007/08 +1.0% 5000 2H 2007/08 (17.7)% 4500 4000 1H 2008/09 (28.6)% 3500 2H 2008/09 +6.2% 3000 7 7 7 7 7 7 8 8 8 8 8 8 8 8 8 8 8 8 9 9 9 9 9 9 /0 /0 /0 /0 /0
Slide 15: Overview of 2009 financial year
Overview of 2009 financial year For personal use only ¾ Lower profits, the direct impact of depressed investment markets. ¾ Sound underlying profitability, healthy operating margin, albeit in both cases below last year’s record highs. ¾ Strong cash flow generation. ¾ Strong balance sheet, cash reser
Slide 16: Sensible focus on expense management
Sensible focus on expense management For personal use only +30.8% +25.0% +21.1% 17.5% +18.0% +15.7% +14.1% +14.2% +14.6% 2004 2005 2006 2007 2008 2009 -7.7% Growth - operating revenue (net of gains on the sale of investments) Growth - operating expenses (net of depreciation/amortisation) (10.5%) (13
Slide 17: Profitability
Profitability ¾ Operating profit before tax down 24.7% to $10.9m $14.6m For personal use only $11.1m $10.9m Operating profit before tax $6.6m $4.2m $3.1m 2004 2005 2006 2007 2008 2009 Trusted since 1888 8
Slide 18: Returns to shareholders
Returns to shareholders ¾ Full-year, fully-franked dividend maintained For personal use only 110 110 ¾ Excess franking credits reduced Final (cps) Franking credits 7,335 7,311 Interim (cps) available 60 60 75 6,249 50 5,252 45 40 3,610 30 30 3,060 25 50 50 2004 2005 2006 2007 2008 2009 20 30 20 15 1
Slide 19: Payout ratio
Payout ratio For personal use only ¾ Full-year dividend as percentage of NPAT 120% 111.7% 100% Note, change of policy to 70- 90% of NPAT (from 60-80%) 82.5% 80% 75.5% 71.5% 71.3% 65.9% 60% 40% 20% 0% 2004 2005 2006 2007 2008 2009 Dividend payout policy range Trusted since 1888 10
Slide 20: Sustained share price outperformance
Sustained share price outperformance 700 EQT Total Shareholder Return For personal use only ¾ Assumes all dividends are reinvested. 600 1 July 2003 to 500 30 June 2009 EQT Total Shareholder Return + 183.2% 400 S&P/ASX 200 Accum. Index + 69.4% 300 Base (100) taken at 1 July 2003 200 100 S&P/ASX 200 A
Slide 21: Net asset base
Net asset base For personal use only ¾ Strong net asset base. Nil debt. $52.0m $52.9m Other net assets $44.4m Liquid assets $36.4m No impairment charges on recent acquisitions $21.6m $16.5m 2004 2005 2006 2007 2008 2009 Trusted since 1888 12
Slide 22: Managing Director
Managing Director For personal use only ¾ Peter Williams announced (in July) intention to retire. ¾ Continues to lead the business effectively while search for a replacement continues. ¾ Search is advanced but not yet complete. ¾ Company performance under Peter’s tenure has been outstanding. ¾ He le
Slide 23: S&P/ASX200 Index: 2008-09 + 2009-10 YTD
S&P/ASX200 Index: 2008-09 + 2009-10 YTD For personal use only 6000 5500 5135.6 4977.4 5000 4743.6 4643.2 4600.5 4540.11 4479.1 4500 4244.0 4018.0 4000 3954.9 3780.5 3818.0 3742.5 3722.3 3540.7 3582.1 3500 3344.5 3000 Jul-08 Aug-08 Sep-08 Oct-08 Nov-08 Dec-08 Jan-09 Feb-09 Mar-09 Apr-09 May-09 Jun-09
Slide 24: Sales update
Sales update For personal use only ¾ Strong new client growth in Private Clients ¾ Renewed demand for specialist RE services ¾ Positive net funds inflow into Funds Management ¾ Corporate superannuation stable – boosted by past acquisitions Trusted since 1888 15
Slide 25: Looking ahead
Looking ahead Outlook for 2010: For personal use only ¾ Any sustained market recovery will enhance sales and marketing opportunities and will be reflected in financial performance. ¾ Industry undergoing change – regulatory and structural. EQT is well positioned to respond. ¾ Company strategic direct
Slide 26: Mr Peter Williams, Managing Director
For personal use only Mr Peter Williams Managing Director Equity Trustees Limited Trusted since 1888 17
Slide 27: People, processes & systems = IP
People, processes & systems = IP For personal use only 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 P
Slide 28: Business units – operations & performance
Business units – operations & performance For personal use only 2009 Revenue 2009 F/AUM 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 Phila
Slide 29: 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 For personal use only 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 1,1
Slide 30: 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 For personal use only 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 growt
Slide 31: 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 For personal use only 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 investm
Slide 32: Business unit overview - Superannuation
Business unit overview - Superannuation Operating revenue up 6.7% to $8.5m Revenue - existing & acquired businesses For personal use only 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 d
Slide 33: Business update
Business update Regulatory changes For personal use only ¾ EQT an active participant in encouraging 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
Slide 34: Summary
Summary For personal use only ¾ Impact of market volatility evident in 2009 ¾ Nevertheless, EQT responded well to challenges ¾ Ongoing business investment critical to future growth ¾ Cautious about 2010 despite improving markets Trusted since 1888 25
Slide 35: Agenda
Agenda For personal use only 1. Overview and highlights Mr Tony Killen 2. Operational performance Mr Peter Williams Items of ordinary business Mr Tony Killen 4. Questions Trusted since 1888 26
Slide 36: Items of ordinary business
Items of ordinary business For personal use only Item 1: To receive and consider the financial statements and the reports of the directors and auditor for the year ended 30 June 2009. Item 2: To adopt the remuneration report for year ended 30 June 2009. Item 3: To consider the election of directors.
Slide 37: Items of ordinary business – item 1
Items of ordinary business – item 1 For personal use only Item 1: To receive and consider the financial statements and the reports of the directors and auditor for the year ended 30 June 2009. Trusted since 1888 28
Slide 38: Items of ordinary business – item 2
Items of ordinary business – item 2 For personal use only Item 2: To adopt the remuneration report for year ended 30 June 2009. Trusted since 1888 29
Slide 39: Tracking remuneration vs DPS
Tracking remuneration vs DPS For personal use only 16 14 Cumulative growth in Non-Executive Director remuneration 12 Cumulative growth in Executive remuneration 10 Cumulative growth in Dividends Per Share (DPS) 8 6 4 2 0 2004 2005 2006 2007 2008 2009 Trusted since 1888 30
Slide 40: Tracking remuneration vs TSR
Tracking remuneration vs TSR For personal use only 18 16 Cumulative growth in Non-Executive Director remuneration 14 Cumulative growth in Executive remuneration 12 Cumulative growth in Total Shareholder Return (TSR) 10 8 6 4 2 0 2004 2005 2006 2007 2008 2009 Trusted since 1888 31
Slide 41: Item – proxies received
Item 2 – proxies received For personal use only To adopt the remuneration report for year ended 30 June 2009 In respect of item 2 of ordinary business, the following proxies have been received: For Against 2,461,694 86,787 Open (total) = 135,892 Open (held by EQT directors) = 115,397 Trusted since 1
Slide 42: Items of ordinary business – election of directors
Items of ordinary business – item 3 For personal use only Item 3 – to consider the election of directors Ms Alice Williams retires in accordance with Rule 49 of the company’s Constitution and, being an eligible person, offers herself for re-election. Trusted since 1888 33
Slide 43: Item – proxies received
Item 3 – proxies received For personal use only To consider the re-election of Ms Alice Williams In respect of item 3 of ordinary business, the following proxies have been received: For Against 2,535,743 2,224 Open (total) = 156,392 Open (held by EQT directors) = 135,897 Trusted since 1888 34
Slide 44: Agenda
Agenda For personal use only 1. Overview and highlights Mr Tony Killen 2. Operational performance Mr Peter Williams 3. Items of ordinary business Mr Tony Killen Questions Trusted since 1888 35
Slide 45: For personal use only
EO ‘[rustees Trusted since 1888
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