Perpetual Limited · ASX:PPT
Perpetual — ASX CEO Connect (August 2021)
44 slides from Perpetual's conference presentation, Aug 31, 2021
Slide 1: ASX CEO Connect Conference Presentation
Perpetual Limited ABN 86 000 431 827 Angel Place, Level 18, 123 Pitt Street Sydney NSW 2000 For personal use only 31 August 2021 Australia Phone +61 9229 9000 ASX Limited www.perpetual.com.au ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 ASX CEO Connect Conference
Slide 2: ASX CEO Connect
ASX CEO Connect For personal use only Rob Adams CEO and Managing Director Tuesday 31 August 2021
Slide 3: Overview of Perpetual
Overview of Perpetual A high quality financial services firm investing in future growth For personal use only High quality business complemented by transformational Highlights acquisitions • Unique business combination delivering results across all divisions: Revenue ($m) 640.6 • Perpetual Asset Man
Slide 4: FY21 overview
FY21 overview Investing for growth and delivering results For personal use only $640.6m $124.1m $74.9m 15.8% $1.80 Operating revenue1 UPAT2 NPAT ROE3 Total dividend 31% on FY20 26% on FY20 9% on FY20 80bps on FY20 16% on FY20 640.6 124.1 82.0 1.80 74.9 15.8 1.55 490.5 98.6 15.0 FY20 FY21 F
Slide 5: Key highlights
Key highlights Execution of strategy driving sustainable growth For personal use only Strategy to build a global FY21 financial performance A unique business Entering FY22 with renewed asset management business, reflects growing contribution combination with all divisions confidence and positive add
Slide 6: Momentum building across each division
Momentum building across each division For personal use only Perpetual Asset Management Perpetual Private Perpetual Corporate Trust AUM ($b)1 FUA ($b) FUA ($b) 246% 19% 2% 941.9 922.8 AUM/FUA/FUA $b vs FY20 vs FY20 98.3 vs FY20 764.5 17.0 27.2 28.4 14.8 14.3 FY19 FY20 FY21 FY19 FY20 FY21 FY19 FY
Slide 7: A unique combination of businesses
A unique combination of businesses High quality capabilities across asset management, corporate trust and private wealth For personal use only Operating revenue1,2 Underlying profit before tax 3,4 PCT Managed Funds Services 10% Perpetual Asset Management Australia PCT Debt Markets Services 27% 12% 2
Slide 8: Evolution to a truly global asset management firm well underway
Evolution to a truly global asset management firm well underway Where we are going For personal use only Where are we today • A successful, growing global asset manager • Global presence, diversified by and financial services provider Where we were geography, distribution channel and • Leveraging ES
Slide 9: International expansion driving scale and growth
International expansion driving scale and growth A$98.3b1 AUM across multiple asset classes, channels and regions For personal use only AUM by asset class1 AUM by channel1 AUM by account domicile1 Retail Other 1% Australian Listed investment vehicles 5% EMEA (incl Bermuda), 6% Fixed equities 1% Asia
Slide 10: Expanding our global footprint
Expanding our global footprint 75% of AUM managed offshore supported by growing presence in key regions For personal use only UK, Europe • Head of European Distribution recently appointed and building a team of four initially 2 • Planning underway to launch a UCITS1 range of funds • Offices in Londo
Slide 11: ESG is now mainstream
ESG is now mainstream Foundations of ESG throughout Perpetual's 135 year history For personal use only Trillium • Unrivalled 39 years of impact driven investing • Record net flows in FY21 with AUM growth of 50% in USD since acquisition1 • Global Equities now 5 Star-rated by Morningstar in the US2 •
Slide 12: Building a sustainable future
Building a sustainable future Active year across Environment, Social and Governance For personal use only Environment Social Governance Support c.100 NFP clients with ‘Future Fit Workplace’ PAMA launched Principles for PP assisted philanthropists to CDP climate score improved to a more than $103m th
Slide 13: Perpetual Asset Management International
Perpetual Asset Management International World-class investment and distribution capabilities For personal use only AUM AUM by channel $b (AUD)2,5 FY21 key highlights $73.6b large 66.5 73.6 Strong contribution from acquisitions vs FY20 6.6 5.4 Trillium AUM A$7.7b increase of 37% (A$2.1b) or in U
Slide 14: Perpetual Asset Management Australia
Perpetual Asset Management Australia Strong investment performance across asset sectors For personal use only FY21 key highlights AUM All PAMA funds outperformed1 over the year and net flows moved to AUM by channel $b5 positive in Q4 FY21 $24.7b 8% vs FY20 27.2 Strong outperformance of all Aus
Slide 15: Perpetual Private
Perpetual Private Successful execution of adviser growth strategy drives record net flows For personal use only FUA Net flows $b FY21 key highlights $17.0b 19% vs FY20 Record net flows of $783m, including $405m from adviser growth strategy in FY21 (delivered $696m since commencement of strategy)
Slide 16: Perpetual Corporate Trust
Perpetual Corporate Trust High quality business that continues to deliver strong earnings growth For personal use only FUA DMS FUA $b4,5 FY21 key highlights $922.8b 2% vs FY20 656.1 MFS Responsible Entity solutions attracting new domestic and global clients 18.1 582.9 with a 67% increase in FUA
Slide 17: Shareholder returns
Shareholder returns For personal use only 6% 16% EPS1 cps Dividend $ps vs FY20 Vs FY20 Highlights 1.80 • Final fully franked ordinary dividend for 2H21 of 96 cents per share in 220.6 1.55 line with midpoint of our dividend 207.7 policy with payout ratio of 76%3 0.96 • Total FY21 dividend for the
Slide 18: Summary
Summary Execution of strategy driving sustainable growth For personal use only Unique portfolio of Executing well Disciplined investment in businesses on strategy quality growth opportunities • High quality businesses well- • Strategy to build a global asset • Focus on new product and positioned for
Slide 19: Q&A
Q&A For personal use only Rob Adams CEO and Managing Director 18
Slide 20: Thank you.
For personal use only Thank you. 19
Slide 21: Contacts
Contacts For personal use only Emma Rumble Marisa Zammit General Manager, Corporate Affairs Head of Investor Relations & Investor Relations [email protected] [email protected] +612 9229 3998 +61 425 282 805 Connect with us at: About Perpetual Head Office perpetual.com.au Leve
Slide 22: Appendix
For personal use only Appendix 21
Slide 23: Transforming Perpetual with complementary acquisitions and service offerings
Transforming Perpetual with complementary acquisitions and service offerings delivering scale and capability For personal use only 2021 2020 2021 Perpetual acquires Jacaranda Financial Perpetual acquires Barrow Hanley Trillium adds new Planning, a highly Global Investors adding 32 new investment tea
Slide 24: Perpetual's strategy for sustained growth
Perpetual’s strategy for sustained growth For personal use only OUR STRATEGY OUR PURPOSE OUR VISION OUR HOLDERS Enduring prosperity Most trusted in financial services Excellence, integrity, partnership Clients People Shareholders Trusted brand and Attract, develop and inspire Delivering sustainable
Slide 25: Appendix: FY21 Financials
Appendix For personal use only FY21 Financials
Slide 26: FY21 financial results
FY21 financial results UPAT up 26% and dividend up 16% For personal use only FY21 2H21 1H21 FY20 FY21 For the period $m $m $m $m v FY20 Key highlights Operating revenue 640.6 359.9 280.6 490.5 31% • Earnings accretive acquisitions of Barrow Hanley (17 November 2020) and Trillium (30 June 2020) Total
Slide 27: Balance sheet
Balance sheet Minimal gearing with headroom for further growth For personal use only 2H21 1H21 2H20 1H20 For the period $m $m $m $m Key movements vs 2H20 Cash 147.1 172.1 164.1 261.7 • Moderate decrease in Cash • Increase in Liquid investments reflects an Liquid investments (FVTPL) 150.4 133.7 80.7
Slide 28: FY22 guidance
FY22 guidance Continuing to invest in our growth strategy For personal use only Significant items Operating Expenses ($m) Significant items relating to transaction and HIGH integration costs as well as amortisation of acquired intangibles with range between $35-39 HIGH LOW LOW million2 after tax 70.
Slide 29: Perpetual Asset Management International
Perpetual Asset Management International Barrow Hanley and Trillium acquisitions completed For personal use only FY21 2H21 1H21 FY20 For the period $m $m $m $m Key movements Revenue 139.2 100.9 38.3 - • The financial performance includes Trillium (completion date of 30 June 2020) and Operating expen
Slide 30: Perpetual Asset Management Australia
Perpetual Asset Management Australia Lower revenue due to net outflows and prior period distributions For personal use only FY21 2H21 1H21 FY20 FY21 For the period $m $m $m $m v FY20 Key movements Revenue1 165.7 86.6 79.1 173.5 (5%) • 5% decrease in revenue compared with FY20 mainly driven by lower
Slide 31: Perpetual Private
Perpetual Private Positive growth in adviser inflows, non-market impacted by economic slowdown For personal use only FY21 2H21 1H21 FY20 FY21 For the period $m $m $m $m v FY20 Key movements Market related revenue 126.7 65.6 61.1 122.1 4% • Market related revenue 4% higher than FY20 due to higher ave
Slide 32: Perpetual Corporate Trust
Perpetual Corporate Trust Solid growth in revenue and profit before tax For personal use only FY21 2H21 1H21 FY20 FY21 For the period $m $m $m $m v FY20 Key movements Debt Markets Services revenue 75.0 38.2 36.9 69.9 7% • Debt Markets Services revenue growth of 7% compared to FY20 driven by underlyi
Slide 33: Perpetual Asset Management performance charts
Appendix For personal use only Perpetual Asset Management performance charts
Slide 34: PAMI investment performance as at 30 June 2021
For personal use only Diversified Small Cap Value 16.0% Small Cap Value (4.8%) Mid Cap Value 14.2% US Opportunistic Value Equity 15.3% Diversified Large Cap Value 15.9% Global Equity Value 12.4% 1. Refer to slide 48 for multi-year performance and full disclosure Equities Large Cap Value 5.4% Emergin
Slide 35: PAMI investment performance: Trillium
PAMI investment performance as at 30 June 2021 Continuation of solid performance for Trillium For personal use only 1 year excess returns against benchmark as at 30 June 20211 8.8% 8.0% 2.2% (1.7%) (1.5%) (1.8%) Sustainable Opportunities Large Cap Core ESG Global Equities All Cap Core Fossil Fuel Fr
Slide 36: Strong rebound in Barrow Hanley relative performance
Excess returns above benchmark Below benchmark returns PAMI investment performance as at 30 June 2021 Strong rebound in Barrow Hanley relative performance For personal use only Annualised performance (%)1 Excess returns above benchmark (%)1 Strategy Benchmark 1 yr 3 yr 5 yr 10 yr 1 yr 3 yr 5 yr 10 y
Slide 37: Continuation of solid performance for Trillium
Excess returns above benchmark Below benchmark returns PAMI investment performance as at 30 June 2021 Continuation of solid performance for Trillium For personal use only Trillium 30 June 2021 Performance against benchmark Annualised performance (%)1 Excess returns above benchmark (%)1 Strategy Benc
Slide 38: PAMA fund excess returns: all funds outperformed
For personal use only Perpetual W Geared Australian Share 69.7% Perpetual Pure Microcap - Class A 15.9% Perpetual W Ethical SRI 14.0% Perpetual Equity Investment Company (ASX:PIC)2 Perpetual Pure Value 13.9% 13.2% Perpetual W Smaller Companies 7.3% 1. Refer to slide 46 for multi-year performance and
Slide 39: PAMA net performance as at 30 June 2021
Excess returns above benchmark Below benchmark returns PAMA net performance as at 30 June 2021 All funds outperformed over the year Annualised performance (%)1 Excess returns above benchmark (%)1 For personal use only Fund Benchmark 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr 1 yr 2 yr 3 yr 5 yr 7 yr 10 yr Perpe
Slide 40: Other Appendix
For personal use only Other Appendix 39
Slide 41: Definitions
Definitions For personal use only Change in UPAT1 Dividend settings • Revised definition of UPAT to reflect the changes to the Group’s • The Board's current policy is that from FY21 future dividends will be operating cashflows from both existing and future opportunities paid on the revised UPAT metr
Slide 42: Definitions
Definitions For personal use only Term Definition Term Definition Term Definition $A/AUD Australian Dollar Earnings before interest, tax, depreciation and PCT Perpetual Corporate Trust EBITDA amortisation of intangible assets, equity FY19 Full Year ended 30 June 2019 remuneration expense, and signif
Slide 43: Disclaimer
Disclaimer For personal use only Important information Nothing in this presentation should be construed as either an offer to sell or solicitation of an offer to buy or sell Perpetual Limited securities or units in any fund referred to in this presentation in any jurisdiction. The This presentation
Slide 44: Key dates for the remainder of 2021
Key dates for the remainder of 2021 For personal use only Payment of FY21 Final Dividend - Friday 24 September 2021 Perpetual Annual General Meeting - Thursday 21 October 2021 Perpetual Investor Day - Wednesday 10 November 2021 This timetable is indicative only and may be subject to change. Perpetua