Perpetual Limited · ASX:PPT

Perpetual — H1 2018 Earnings Presentation

22 slides from Perpetual's earnings presentation, Feb 22, 2018

  1. Slide 1: Perpetual Limited 1H18 Results

    22 February 2018 For personal use only PERPETUAL LIMITED 1H18 RESULTS Six months to 31 December 2017 Geoff Lloyd Chief Executive Officer & Managing Director Gillian Larkins Chief Financial Officer ABN 86 000 431 827

  2. Slide 2: Geoff Lloyd, Chief Executive Officer & Managing Director

    For personal use only GEOFF LLOYD CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR

  3. Slide 3: 1H18: Diversification Delivering Profit

    For personal use only 1H18: DIVERSIFICATION DELIVERING PROFIT NPAT 3% on 1H17 DPS 4% on 1H17 Revenue ($m) NPAT ($m) EPS (NPAT, CPS) DPS (CPS) +6% +3% +3% +4% 252.4 263.0 266.8 66.0 71.3 68.1 142 153 146 130 135 135 1H17 2H17 1H18 1H17 2H17 1H18 1H17 2H17 1H18 1H17 2H17 1H18 3

  4. Slide 4: 1H18 Overview: A Diversified Business With a Clear Focus

    1H18 OVERVIEW: A DIVERSIFIED BUSINESS WITH A CLEAR FOCUS For personal use only V I S I ON  Australia’s largest and most trusted independent wealth manager PERPETUAL $32.8b PERPETUAL $13.7b PERPETUAL $662b INVESTMENTS FUM PRIVATE FUA CORPORATE TRUST FUA Maintaining leadership in Targeted High Net Wo

  5. Slide 5: 1H18 Drivers

    1H18 DRIVERS STRONG MARKETS AND ASSET VALUES, CLIENT GROWTH AND SECURITISATION ISSUANCE For personal use only All Ordinaries Index Perpetual Investments Net flows, $b 6200 6000 5800 0.0 5600 Average 1H18 vs 2H17: +1.5% -0.8 5400 -0.9 Average 1H18 vs 1H17: +7.0% 5200 Jul-16 Nov-16 Mar-17 Jul-17 Nov-1

  6. Slide 6: Investments: Extensions Gaining Traction

    PERPETUAL INVESTMENTS EXTENSIONS GAINING TRACTION For personal use only Majority of funds 1st or 2nd Money Magazine Winner 2018 100% of funds above median quartile for 1H18 Best Fund Manager over 7 years Australian Equities Global Equities Credit and Fixed Income  Investment performance improving 

  7. Slide 7: Investments: Strong Long-Term Investment Performance

    PERPETUAL INVESTMENTS STRONG LONG-TERM INVESTMENT PERFORMANCE For personal use only Quartile Rankings1 % of funds quartile ranking periods ending December 2017 over 6 months – 10 years1 6mths 1 yr 3 yrs 5 yrs 7 yrs 10 yrs Perpetual W Australian 2 4 4 4 2 1 6 mths 67% 33% Perpetual W Concentrated Equ

  8. Slide 8: Private: Strategy Delivering Strong Profit Growth

    PERPETUAL PRIVATE STRATEGY DELIVERING STRONG PROFIT GROWTH For personal use only 3% growth in 13% growth in Market-related Funds Under Advice PP Funds Under revenue margin vs 1H17 Management vs 1H17 improving Funds Under Advice, $b Funds Under Management, $b Market-Related Revenue Margin, bps 6.1 5.

  9. Slide 9: Private: Strategy Delivering Strong Profit Growth

    PERPETUAL PRIVATE STRATEGY DELIVERING STRONG PROFIT GROWTH For personal use only Net Flows - FUA, $b New Clients - Fordham 234 9 consecutive halves of positive net flows 120 0.2 0.2 72 79 Continued new 0.1 27 25 client growth across HNW and Fordham 1H17 2H17 1H18 1H17 2H17 1H18 Fordham - Accounting

  10. Slide 10: Corporate Trust – Managed Fund Services: Meaningful Contribution

    PERPETUAL CORPORATE TRUST – MANAGED FUND SERVICES MEANINGFUL CONTRIBUTION For personal use only Managed Fund Services, Managed Fund Services FUA, $b Revenue Breakdown  Managed Fund Services growing strongly 12%  Inbound capital flows remain 16% 45% strong and high asset prices 199.1 203.8 214.2 dr

  11. Slide 11: Corporate Trust - Debt Markets Services: Consistent Growth in 1H18

    PERPETUAL CORPORATE TRUST - DEBT MARKETS SERVICES CONSISTENT GROWTH IN 1H18 For personal use only  Securitisation markets Securitisation FUA - $b Growth in Product Adjacencies continue to improve 430.5 436.1 430.4 26.6 27.9 +10% 43.0 45.1 45.8 FUA- 25.5  Strong issuance of higher- 10.1 +13% 48.9 5

  12. Slide 12: Geoff Lloyd, Chief Executive Officer & Managing Director

    For personal use only GEOFF LLOYD CHIEF EXECUTIVE OFFICER & MANAGING DIRECTOR

  13. Slide 13: Financials

    For personal use only FINANCIALS GILLIAN LARKINS CHIEF FINANCIAL OFFICER

  14. Slide 14: Financial Performance – Group

    FINANCIAL PERFORMANCE – GROUP UNDERLYING PROFIT SUPPORTED BY ONGOING COST DISCIPLINE For personal use only 1H18 2H17 1H17 1H18 v 1H18 v For the period $m $m $m 2H17 1H17 Key themes Operating revenue 266.8 263.0 252.4 1% 6%  Operating revenue Total expenses 165.3 165.7 160.7 0% (3%) increase support

  15. Slide 15: Investments: Revenue Margins Maintained

    PERPETUAL INVESTMENTS REVENUE MARGINS MAINTAINED For personal use only 1H18 2H17 1H17 1H18 v 1H18 v Average FUM, $b For the period $m $m $m 2H17 1H17 Revenue 117.6 114.2 113.8 3% 3% 30.7 32.2 31.6 Operating expenses (54.9) (52.1) (50.9) (5%) (8%) 1H17 2H17 1H18 EBITDA1 62.7 62.1 63.0 1% (0%) Depreci

  16. Slide 16: Private: Continued Strong Profit Growth

    PERPETUAL PRIVATE CONTINUED STRONG PROFIT GROWTH For personal use only 1H18 2H17 1H17 1H18 v 1H18 v Revenue, $m For the period $m $m $m 2H17 1H17 86.6 91.8 92.8 Market related revenue 61.0 57.9 55.7 5% 10% 34.0 31.8 30.9 Non-market related revenue 31.8 34.0 30.9 (6%) 3% 55.7 57.9 61.0 Total revenues

  17. Slide 17: Corporate Trust: Result Supported by Favourable Market Conditions

    PERPETUAL CORPORATE TRUST RESULT SUPPORTED BY FAVOURABLE MARKET CONDITIONS For personal use only 1H18 2H17 1H17 1H18 v 1H18 v Revenue, $m For the period $m $m $m 2H17 1H17 Debt Market Services revenue 27.9 26.6 25.5 5% 10% Managed Fund Services revenue 21.7 21.6 19.1 0% 14% 25.5 26.6 27.9 19.1 21.6

  18. Slide 18: Balance Sheet: Capacity to Pursue Growth Opportunities

    BALANCE SHEET CAPACITY TO PURSUE GROWTH OPPORTUNITIES For personal use only 1H18 2H17 1H17 1H18 v 1H18 v Capital requirements3, $m As at the period ended $m $m $m 2H17 1H17 Net cash ($m)1 183.1 236.5 169.5 (23%) 8% 160.9 151.2 155.6 Goodwill and other intangibles2 ($m) 340.2 350.4 341.2 (3%) (0%) 1H

  19. Slide 19: Financial Performance: Sustained Dividend Payout

    FINANCIAL PERFORMANCE SUSTAINED DIVIDEND PAYOUT For personal use only EPS1, cps ROE2, % Dividend, cps +3% -2% +4% 141.5 152.6 145.5 21.6 22.9 21.2 135 135 130 1H17 2H17 1H18 1H17 2H17 1H18 1H17 2H17 1H18 NPAT EPS NPAT ROE Fully franked dividends FY18 Interim Dividend Payout ratio3 Dividend payable 1

  20. Slide 20: 1H18: Diversification Delivering Profit

    For personal use only 1H18: DIVERSIFICATION DELIVERING PROFIT NPAT 3% on 1H17 DPS 4% on 1H17 Revenue ($m) NPAT ($m) EPS (NPAT, CPS) DPS (CPS) +6% +3% +3% +4% 252.4 263.0 266.8 66.0 71.3 68.1 142 153 146 130 135 135 1H17 2H17 1H18 1H17 2H17 1H18 1H17 2H17 1H18 1H17 2H17 1H18 20

  21. Slide 21: Contacts

    CONTACTS For personal use only Geoff Lloyd Level 18 Angel Place, 123 Pitt Street Chief Executive Officer & Managing Director SYDNEY NSW 2000 Australia [email protected] +612 9229 9078 Gillian Larkins Chief Financial Officer [email protected] +612 9229 3547 Andrew Ehlich Gen

  22. Slide 22: 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 22 February 2018. It is in summary form and is not necessarily complete. It should be read together with the compan

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