Perpetual Limited · ASX:PPT
Perpetual — UBS Financial Services Conference 2008
24 slides from Perpetual's conference presentation, Jun 25, 2008
Slide 1: UBS Financial Services Conference
For personal use only UBS Financial Services Conference Sydney 25 June 2008 Roger Burrows Chief Financial Officer Perpetual Limited
Slide 2: Perpetual is one of Australia's largest independent wealth managers
Perpetual is one of Australia’s largest independent wealth managers For personal use only More than 120 years of history Top performing manager in Australian equities over long-term Quality focused investment style typically favoured in challenging market - outstanding investment performance o
Slide 3: Perpetual operates end-to-end business units in three key markets
Perpetual operates a series of end-to-end business units which participate in three key markets For personal use only Perpetual Private Perpetual Perpetual Investments Wealth Corporate Trust Income & Structured Products Perpetual Private Trust & Fund Australian Equities Global Equities Multi-sector
Slide 4: Operating environment
Operating environment For personal use only 3
Slide 5: Operating environment impacted by market conditions but long-term fundamentals strong
Operating environment impacted by current market conditions but long-term fundamentals strong For personal use only Global credit crisis heavily impacted share market volatility over past nine months - strong influence on investor sentiment Equity market continues to have sound long-term fundame
Slide 6: Current market conditions have impacted key revenue drivers
Current market conditions have impacted key revenue drivers For personal use only Perpetual Investments Perpetual Private Wealth Perpetual Corporate Trust FUM FUA(1) FUA $B $B $B 40 39.1 36.8 37.2 9 8.6 240 8.4 35 8.0 2 10.1 32.8 32.6 8 210 2 05.7 30.3 7.2 195.6 18 5.0 30 7 6.6 17 8.6 180 6.1 25 6 1
Slide 7: Key financials
Key financials For personal use only Half Year Half Year Full Year Actual Forecast Forecast Dec 2007 Jun 2008 Jun 2008 $m $m $m Operating profit after tax 79.3 50.7 - 60.7 130 - 140 EMCF (12.8) (13.4) (26.2*) Sale of investments 21.1 Net profit after tax 87.6 * EMCF mark-to-market losses as at 30 Ap
Slide 8: Responding to market conditions with review of cost base and strategic priorities
Responding to market conditions with review of cost base and strategic priorities For personal use only Exited Direct Property and Infrastructure Downsized Perpetual Corporate Trust to match business volumes Focused on reducing discretionary spending Re-engineering key processes to create ef
Slide 9: Perpetual Investments
Perpetual Investments For personal use only 8
Slide 10: Australia's wealth management industry has a high rate of underlying asset growth
Australia’s wealth management industry has a high rate of underlying asset growth For personal use only Over $1 trillion today Growing to $3 – 5 trillion 10-12 % CAGR A$b 7,000 in 10 years time 6,000 5,000 4,000 3,000 2,000 1,000 Post retirement Pre retirement 0 2005 2006 2007 2008 2009 2010 2011 20
Slide 11: Investment management continues to be our engine room
Investment management continues to be our engine room For personal use only Australian Equities Global Equities Income & Multi-sector Highly awarded, stable Stable team - quality Shifting focus: and experienced team focus - growing Strong track record of High conviction portfolio capabilit
Slide 12: Enhanced packaging and administration capabilities and opportunities
Enhanced packaging and administration capabilities and opportunities For personal use only Manufacturing Packaging and administration Advice and direct to customer Platforms Business units WealthFocus transition from defensive platform to business development tool Perpetual targeting independent adv
Slide 13: Perpetual Private Wealth
Perpetual Private Wealth For personal use only 12
Slide 14: Australia's HNW market is large, growing and highly fragmented
Australia’s HNW market is large, growing and highly fragmented with opportunity for unconstrained growth For personal use only HNW market size 1 The HNW market size is estimated to be approximately $385 billion Around 355,000 households have more than $500,000 investable assets in Australia HNW
Slide 15: Our vision is to be the adviser of choice for financially successful Australians
Our vision is to be the adviser of choice for financially successful Australians For personal use only Perpetual Private Wealth Perpetual Private Clients Perpetual Premium Professional Professional investors Sophisticated investors Retail investors Wealth $10 m + Wealth $1 – 10 m Wealth < $1 m Famil
Slide 16: Our full range of services provides us with our point of difference
Our full range of services provides us with our point of difference For personal use only Business Comprehensive Range of products/ Fiduciary services 3 advice 1 services 2 Perpetual Private Wealth 3 3 4 Independent financial 2 2 1 advisers Investment banks 4 4 1 Brokers 2 2 1 Trust companies 1 1 4
Slide 17: We are accelerating growth by expanding adviser teams and improving support capabilities
We are accelerating growth by expanding adviser teams and improving support capabilities For personal use only Organic growth Inorganic growth Aggressively recruiting Acquiring to increase HNW Adviser growth & HNW advisers Developing on-boarding, + advisers and clients Acquiring and partneri
Slide 18: Perpetual Corporate Trust
Perpetual Corporate Trust For personal use only 17
Slide 19: Australian RMBS driven by high quality securities
Australian RMBS driven by high quality securities For personal use only Australian debt securities outstanding 1200.0 1000.0 800.0 $A billion 600.0 400.0 200.0 0.0 Mar-98 Mar-99 Mar-00 Mar-01 Mar-02 Mar-03 Mar-04 Mar-05 Mar-06 Mar-07 Mar-08 Corporate Debt Issues ABS Debt Issues Govt Debt Issues Sour
Slide 20: RMBS issuance has declined significantly
RMBS issuance has declined significantly For personal use only RMBS Issuance 70 60 50 $A billion 40 30 20 10 0 2002 2003 2004 2005 2006 2007 YTD2008 Term RMBS Repo Note: YTD 2008 includes ~$30bn of “repo” deals Source data: S&P Ratings Direct & Perpetual; based on calendar year 19
Slide 21: We have adjusted our strategy and our cost base to market conditions
We have adjusted our strategy and our cost base to market conditions For personal use only Client Source funding Credit assessment and approval Arrears management Mortgage Services Trust & Fund Services Mortgage Calculation Post settlement Variations & Document Trustee agency & preparation & investo
Slide 22: Summary
For personal use only 21 Summary
Slide 23: Summary
Summary For personal use only Current market conditions remain challenging Repositioned cost base but continuing to invest in business Clear strategy to grow business and build shareholder value 22
Slide 24: Questions
For personal use only Questions Roger Burrows Chief Financial Officer Perpetual Limited