Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — Shareholder Meeting (October 2012)
39 slides from Eqt's shareholder meeting presentation, Oct 26, 2012
Slide 1: 2012 Annual General Meeting
2012 Annual General Meeting 26th October 2012
Slide 2: Board of Directors
Board of Directors Mr JA (Tony) Killen OAM Mr Robin Burns Mr David Groves Non E xecutive Director C hairman Managing Director Non E xecutive Director Deputy C hairman Ms Alice Williams The Hon Jeffrey Ms Anne O’Donnell Mr Kevin Eley Non Executive Director Kennett AC Non Executive Director Non Execut
Slide 3: Agenda
Agenda 1. Overview and highlights Mr Tony Killen 2. Operational performance Mr Robin Burns 3. Items of business Mr Tony Killen 4. Questions 3
Slide 4: 2012 Shareholder Review and Annual Report
2012 Shareholder Review and Annual Report Equity Trustee s Limited (EQ Full Year Resul ts to 30 June 201 2 T) To obtain an electronic file of the Review and Annual Report, a copy of the presentation pack submitted to the ASX or a copy of this presentation go to… http://www.eqt.com.au/shareholders/co
Slide 5: Sharemarket performance. S&P/ASX200 Accum. Index vs. RBA Cash Rate
Sharemarket performance. S&P/ASX200 Accum. Index vs. RBA Cash Rate 5
Slide 6: Overview – FY2012
Overview – FY2012 • Profit growth during challenging business conditions. • Organic revenue growth in both business units. • Acquisition and integration of aged care advisory business completed – EPS positive. • Significant business re-organisation implemented, to intensify focus on strategic growth
Slide 7: Profitability
Profitability Net profit after tax up at $8.4m (includes profit on sale of investments) $10.6m $8.1m $8.0m $8.2m $8.4m $8.0m $5.2m 2006 2007 2008 2009 2010 2011 2012 7
Slide 8: Shareholder dividends
Shareholder dividends Full year, fully franked dividend 110 110 110 Interim (cps) 100 Final (cps) 85 50 50 50 75 50 40 30 50 20 60 60 60 50 45 45 30 2006 2007 2008 2009 2010 2011 2012 8
Slide 9: Dividend payout ratio
Dividend payout ratio Note, change of policy to 70-90% of NPAT (from 60-80%) 120% 113.9% 111.7% 103.1% 100% 87.9% 82.5% 80% 71.5% 71.3% 60% 40% 20% 0% 2006 2007 2008 2009 2010 2011 2012 9 Dividend payout policy range
Slide 10: Annual dividend paid (cents per share)
Annual dividend paid (cents per share) Annual dividend paid (cents per share) cents per share 2008 to 2012 120 100 21.40 23.06 12.69 80 60 88.61 86.94 87.31 85.00 40 20 0 2009 2010 2011 2012 10 Maximum dividend possible within payout policy range Dividend paid in excess of maximum
Slide 11: Relative share price performance
Relative share price performance 250% S&P/ASX 200 Index S&P/ASX 200 Diversified Financials EQT 200% 150% 100% 25th October 2012 50% 0% -50% -100% 06/2005 06/2006 06/2007 06/2008 06/2009 06/2010 06/2011 06/2012 11
Slide 12: The Board
The Board • Kevin Eley joined Board in November – planned step in Board renewal/succession process – and became a member of Audit & Compliance Committee. • Formal responsibility for future director nominations process assigned to the re-named Remuneration, Human Resources & Nominations Committee. •
Slide 13: Looking ahead
Looking ahead The business • Business conditions remain subdued: uncertain economic circumstances in major blocs affecting confidence and depressing investor activity. Investment markets still appear volatile and interest rates falling. • Although Australian economy has performed better, forward mom
Slide 14: Mr Robin Burns, Managing Director
Mr Robin Burns Managing Director Equity Trustees Limited 14
Slide 15: FY2012 in review
FY2012 in review • Organic revenue growth 6% in corporate business unit, 3% in private wealth unit, plus acquisition revenue – total revenue growth of 10%. • Recurring expense growth 7%, plus one-offs and acquired expenses – total expense growth 13%. • Operating margin at 25.6% therefore slightly do
Slide 16: FY2012 in review (cont.)
FY2012 in review (cont.) • Creation of Private Wealth Services business unit to consolidate all retail client services, including superannuation master trusts. • Creation of single, group-wide structure for all support business units, particularly back-offices and IT. • In July the Board approved a
Slide 17: Equity Trustees organisational structure
Equity Trustees organisational structure Managing Director Robin Burns Corporate Private Wealth Chief Financial Operations & Fiduciary & Services Officer & Company Technology Financial Services Geoff Rimmer Secretary Ryan Bessemer Harvey Kalman Terry Ryan Strategic Chief Investment Legal, Risk Human
Slide 18: Business update
Business update The business • Three regulatory matters to monitor – ASIC Class Order 11/1140, CAMAC review of philanthropy pricing and trustee ‘portability’, ACNC powers. • Implementation of efficiency project – “Foundation”. • Net inflows strong, new RE appointments, but some lag in one-off revenu
Slide 19: Summary
Summary • Business now organised by client type rather than product, with centralised support services. • “Wealth management” sector viewed as major growth opportunity, but subject to continuing regulatory reform impacts and probability of increased competition in some of our long-established busine
Slide 20: Agenda
Agenda 1. Overview and highlights Mr Tony Killen 2. Operational performance Mr Robin Burns Items of business Mr Tony Killen 4. Questions 20
Slide 21: Items of business
Items of business Item 1 To receive and consider the financial statements and the reports of the directors and auditor for the year ended 30 June 2012. Item 2 To adopt the remuneration report for year ended 30 June 2012. Item 3 To consider the election of directors. Item 4 To consider an increase in
Slide 22: Items of ordinary business – Item 1
Items of ordinary business – Item 1 Item 1 To receive and consider the financial statements and the reports of the directors and auditor for the year ended 30 June 2012. 22
Slide 23: Items of ordinary business – Item 2
Items of ordinary business – Item 2 Item 2 To adopt the remuneration report for year ended 30 June 2012. 23
Slide 24: Remuneration
Remuneration • Short Term Incentives - 31% of maximum pool paid in 2012 (38% in 2011). • Company-wide pay freeze – no pay reviews in July 2012. • Long Term Incentive allocations each year: Series 1 Earned (ended 30/6/08) Series 2 Partially Earned (ended 30/6/09) Series 3 Not Earned (ended 30/6
Slide 25: Tracking remuneration vs DPS
Tracking remuneration vs DPS 25 Cumulative growth in Non-Executive Director remuneration Cumulative growth in Top 5 Executive plus MD remuneration Cumulative growth in Dividend per Share (DPS) 20 15 10 5 0 2004 2005 2006 2007 2008 2009 2010 2011 2012 25
Slide 26: Item 2 – proxies received
Item 2 – proxies received To adopt the remuneration report for year ended 30 June 2012 In respect of item 2 of ordinary business, the following proxies have been received: F or Agains t 240,684 2,305,318 (8.58%) Open (held by EQT directors and exercisable) = 220,132 26
Slide 27: Items of ordinary business – Item 3
Items of ordinary business – Item 3 Item 3 To consider the election of directors. 27
Slide 28: Item 3(a): Re-election of Ms Alice Williams
Items of ordinary business – Item 3 Item 3(a): To consider the re-election of Ms Alice Williams 28
Slide 29: Item 3(a) – proxies received
Item 3(a) – proxies received To consider the re-election of Ms Alice Williams In respect of item 3(a) of ordinary business, the following proxies have been received: F or Agains t Ms Alic e Williams 3,219,282 5,878 Open (held by EQT directors and exercisable) = 240,032 29
Slide 30: Item 3(b): Election of Mr Kevin Eley
Items of ordinary business – Item 3 Item 3(b): To consider the election of Mr Kevin Eley 30
Slide 31: Item 3(b) – proxies received
Item 3(b) – proxies received To consider the election of Mr Kevin Eley In respect of item 3(b) of ordinary business, the following proxies have been received: F or Agains t Mr K evin E ley 3,191,851 33,309 Open (held by EQT directors and exercisable) = 240,032 31
Slide 32: Item 4: Increase in non-executive director remuneration
Items of ordinary business – Item 4 Item 4: To consider an increase in the maximum aggregate remuneration for non-executive directors from $750,000 to $900,000. 32
Slide 33: Item of ordinary business – Item 4
Item of ordinary business – Item 4 • Aggregate non-executive directors remuneration last increased in 2008. • Total remuneration now just under cap, following fee increase in 2011 and appointment of Anne O’Donnell to a subsidiary board. • Therefore no capacity to increase fees in line with market, b
Slide 34: Item 4 – proxies received
Item 4 – proxies received To consider an increase in the maximum aggregate remuneration for non-executive directors In respect of item 4 of ordinary business, the following proxies have been received: F or Agains t To consider an increase in the maximum aggregate 2,167,246 443,310 remuneration for n
Slide 35: Items of special business – Item 5
Items of special business – Item 5 Item 5: To consider the grant of a long-term incentive award to Managing Director. 35
Slide 36: Managing Director's LTI. 2012/2013 Series
Managing Director’s LTI. 2012/2013 Series • Quantum: 60% of TEC ($450k) = $270k • Measures: 50% TSR / 50% EPS • Vesting Scales over 3 years: TSR Less than 50th percentile Nil 50th percentile 50% 75th percentile and above 100% EPS Less than 5% (15% over 3 years) Nil 5% p.a. (15% over 3 year
Slide 37: Item 5 – proxies received
Item 5 – proxies received To consider the grant of a long-term incentive award to Managing Director. In respect of item 5 of special business, the following proxies have been received: F or Agains t 2,857,726 394,674 Open (held by EQT directors and exercisable) = 228,557 37
Slide 38: Agenda
Agenda 1. Overview and highlights Mr Tony Killen 2. Operational performance Mr Robin Burns 3. Items of business Mr Tony Killen • Questions 38
Slide 39: Thank you
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