Perpetual Limited · ASX:PPT
Perpetual — FY2015 Earnings Presentation
29 slides from Perpetual's earnings presentation, Aug 27, 2015
Slide 1: FY15 Results: Twelve Months to 30 June 2015
27 August 2015 PERPETUAL LIMITED For personal use only FY15 RESULTS TWELVE MONTHS TO 30 JUNE 2015 Geoff Lloyd Chief Executive Officer & Managing Director Gillian Larkins Chief Financial Officer ABN 86 000 431 827
Slide 2: Agenda
AGENDA For personal use only │ FY15 overview │ Financials │ Strategy update │ Q&A 2
Slide 3: FY15 Overview: Strategy Delivering Sustained Growth
FY15 OVERVIEW STRATEGY DELIVERING SUSTAINED GROWTH For personal use only Strong results for FY15 with increased returns to shareholders - NPAT up 50% - DPS up 37% Transformation 2015 strategy complete and benefits achieved The Trust Company integration complete ahead of time with additional synergie
Slide 4: T15 Strategy Delivered Strong Earnings and Returns
FY15 T15 STRATEGY DELIVERED STRONG EARNINGS AND RETURNS For personal use only UPAT, $m NPAT, $m UPAT EPS, cps DPS, cps +26% +22% 130.5 122.5 282.6 +39% 240.0 +66% 104.1 237.8 175.0 81.6 185.0 75.9 156.8 130.0 65.4 61.0 90.0 26.7 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 FY12 FY13 F
Slide 5: T15 Strategy – The Trust Company Scorecard
T15 STRATEGY – THE TRUST COMPANY SCORECARD PROGRAM COMPLETE EARLIER For personal use only FY14 PROTECT 1H15 1H15 ALIGN 2H15 2015 Single Executive Team Reduce central cost Reduce property footprint New organisation structure in (HR, Finance, Marketing) Consolidate and reduce corporate place
Slide 6: FY15 Results – Growth Highlights
FY15 RESULTS – GROWTH HIGHLIGHTS MAJOR DRIVERS MARKETS, FLOWS AND NEW CLIENTS For personal use only All Ordinaries Index Perpetual Investments net inflows, $b 6200 1.1 6000 5800 0.3 5600 5400 5200 5000 4800 Average increase +5.3% 4600 -1.8 06/2014 09/2014 12/2014 03/2015 06/2015 FY13 FY14 FY15 Perpe
Slide 7: Financials
For personal use only FINANCIALS GILLIAN LARKINS CHIEF FINANCIAL OFFICER
Slide 8: Financial Performance – Group
FINANCIAL PERFORMANCE – GROUP INCREASE IN NPAT AND DIVIDENDS For personal use only FY15 2H15 1H15 FY14 FY15 v For the period KEY THEMES: $m $m $m $m FY14 Operating revenue 497.1 252.6 244.5 440.6 13% • Operating revenue increased Total expenses (312.8) (156.2) (156.6) (293.8) (6%) due to higher aver
Slide 9: Financial Performance: Significant Items, Expenses and TrustCo Synergies
FINANCIAL PERFORMANCE SIGNIFICANT ITEMS, EXPENSES AND TRUSTCO SYNERGIES For personal use only FY15 FY14 Group expenses, $m For the period $m $m 312.8 Transformation costs - (14.3) 8.1 285.3 TrustCo integration costs (11.3) (10.0) +4% 39.8 12.0* 265.4 264.9 TrustCo due diligence and 262.3 - (4.4) 50.
Slide 10: Perpetual Investments
PERPETUAL INVESTMENTS HIGHER AVERAGE FUM AND IMPROVED PBT For personal use only FY15 2H15 1H15 FY14 FY15 v Average FUM, $b For the period $m $m $m $m FY14 32.3 28.7 Revenue 240.0 120.7 119.3 222.5 8% Operating expenses (104.9) (51.7) (53.2) (97.3) (8%) EBITDA1 135.1 69.0 66.1 125.2 8% FY14 FY15 Depr
Slide 11: Perpetual Private
PERPETUAL PRIVATE BENEFITS OF SCALE AND GROWTH IN FLOWS For personal use only FY15 2H15 1H15 FY14 FY15 v Revenue, $m For the period $m $m $m $m FY14 166.3 143.8 Market related revenue 110.8 54.7 56.1 95.6 16% 55.5 48.2 Non-market related revenue 55.5 29.3 26.2 48.2 15% Total revenues 166.3 84.0 82.3
Slide 12: Perpetual Corporate Trust
PERPETUAL CORPORATE TRUST GROWTH IN FUND SERVICES For personal use only FY15 2H15 1H15 FY14 FY15 v For the period Revenue, $m $m $m $m $m FY14 Trust services revenue 43.8 23.0 20.8 41.1 7% 43.8 41.1 Fund services revenue 38.2 20.2 18.0 23.8 61% 38.2 Total fiduciary services revenue 82.0 43.2 38.8 64
Slide 13: Balance Sheet: Strength Provides Opportunities
BALANCE SHEET STRENGTH PROVIDES OPPORTUNITIES For personal use only FY15 FY14 Capital requirements, $m For the period ended $m $m -44.6 221.3 Cash & Liquid investments ($m) 341.4 327.9 176.7 Corporate debt ($m) (87.0) (87.0) Net cash ($m) 254.4 240.9 FY14 FY15 Goodwill and other intangibles* ($m) 34
Slide 14: Sustained Dividend Growth Over Three Years
FINANCIAL PERFORMANCE SUSTAINED DIVIDEND GROWTH OVER THREE YEARS For personal use only EPS, cps ROE,1 % Dividend, cps 282.6 265.3 26.1 24.2 23.1 21.7 237.8 20.9 19.0 99.8% 91.3% 185.0 186.4 89.5% 148.7 240.0 175.0 130.0 FY13 FY14 FY15 FY13 FY14 FY15 FY13 FY14 FY15 UPAT EPS NPAT EPS UPAT ROE NPAT ROE
Slide 15: Strategy Update
For personal use only STRATEGY UPDATE GEOFF LLOYD CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR
Slide 16: Macro and Strategic Themes
MACRO AND STRATEGIC THEMES For personal use only Insights from T15 remain relevant today and beyond Opportunities Growth and concentration in super driving overall ‘Retirement boom’ ‘Margin pressure’ market Active investment of assets widened from Australian Equities to include Global Equities,
Slide 17: Strategy: Lead, Extend, Explore
STRATEGY For personal use only LEAD in core businesses EXTEND into adjacent markets EXPLORE new opportunities GOALS PEOPLE CLIENTS SHAREHOLDERS Employee Engagement Client Advocacy NPAT growth Excellence Australia’s largest Delivering exceptional outcomes and most trusted Integrity Vision independent
Slide 18: Growth Through Focus on Target Clients
GROWTH THROUGH FOCUS ON TARGET CLIENTS For personal use only Business Target clients Segments Needs Perpetual Professional Institutional super funds Scale, long term performance, strategic Investments investment decision- partnerships, consultant ratings makers Multi-manager funds Reputation, perfor
Slide 19: Perpetual Investments: Path to Lead & Grow
PERPETUAL INVESTMENTS PATH TO LEAD & GROW For personal use only Capability Today By 2018 Long Term Actions Over the medium term fill remaining core capacity Australian at premium pricing Equities Meet market demand for satellite strategies Launched first product Global Extend proven capabili
Slide 20: Perpetual Investments – Strong Investment Performance
LEAD & GROW PERPETUAL INVESTMENTS – STRONG INVESTMENT PERFORMANCE For personal use only QUARTILE RANKINGS^ FUND WEIGHTED % OF FUNDS OVER periods ending June 2015 1 – 10 YEARS 1Yr 3Yrs 5Yrs 7Yrs 10Yrs Perpetual W Australian 4 3 1 1 1 Open 1 yr 47% 53% Perpetual W Concentrated Equity 3 2 1 1 1 Open Pe
Slide 21: Extend – Global Equities
LEAD & GROW EXTEND- GLOBAL EQUITIES For personal use only GLOBAL SHARE FUND LAUNCH PROGRAM Target Launched $1b FUM Aug 2014 People and Consultants and Major platform Dealer Group Models and Process researchers placements APLs multi channels by Aug 2017 On On On target target target Strong team Asset
Slide 22: Perpetual Private: HNW Segment Advice Revenue Pool
PERPETUAL PRIVATE HNW SEGMENT REPRESENTS 80%1 OF THE TOTAL $5B ADVICE REVENUE POOL For personal use only Opportunity for advice 2015 highlights and next steps Fordham referrals to Perpetual Private Clients up 60% Business 30% of HNW Very strong client NPS at +52 owners market Expand Fordham up
Slide 23: Perpetual Private: Wealth Management and Performance
PERPETUAL PRIVATE WEALTH MANAGEMENT AND PERFORMANCE For personal use only Funds Under Advice, $b Performance of Flagship Strategies 13.1 PERFORMANCE – JUNE 2015 1 YR (%) 3 YR (%) 5 YR (%) Multi Manager – Balanced 9.9 14.2 10.7 4.2 Multi Manager Funds Composite Benchmark 10.7 13.4 10.3 Excess Return
Slide 24: Perpetual Corporate Trust: Leverage Leadership into Adjacencies
PERPETUAL CORPORATE TRUST LEVERAGE LEADERSHIP INTO HIGH MARGIN ADJACENCIES For personal use only Segment Today Opportunity Comment Debt Capital Markets FUA grew from $307bn Continued credit growth Growing market and leading Trustee for securitisation to $380bn (23%) Book sales eg GE/Esanda posit
Slide 25: Leveraging Our Expertise: People-Led Strategy
LEVERAGING OUR EXPERTISE PEOPLE-LED STRATEGY DELIVERING BUSINESS OUTCOMES For personal use only FOCUS RESULTS* DIRECTION Our people experience: Attracting the best EMPLOYEE ENGAGEMENT 66% Leadership Building a great team of leaders Wellbeing Top quartile of Delivering exceptional outcomes
Slide 26: T15 to Lead & Grow
T15 TO LEAD & GROW For personal use only T15 STRATEGY – FIX TO GROW UPAT, $m NPAT, $m Australia’s largest +26% 130.5 Vision and most trusted independent 104.1 +66% 122.5 wealth manager 75.9 81.6 65.4 61.0 26.7 FY12 FY13 FY14 FY15 FY12 FY13 FY14 FY15 UPAT EPS, cps DPS, cps +22% 237.8 282.6 +39% 240.0
Slide 27: Q&A
For personal use only Q&A
Slide 28: Contacts
CONTACTS Chief Executive Officer & Managing Director For personal use only Geoff Lloyd [email protected] T: +612 9229 9078 Chief Financial Officer Gillian Larkins [email protected] T: +612 9229 3547 General Manager Investor Relations & Corporate Finance Neil Wesley neil.wes
Slide 29: Disclaimer
DISCLAIMER For personal use only Important information The information in this presentation is general background information about the Perpetual Group and its activities current as at 27 August 2015. It is in summary form and is not necessarily complete. It should be read together with the company’