EQT Holdings Ltd. · ASX:EQT
EQT — Equity Trustees — Shareholder Meeting (October 2011)
44 slides from EQT's shareholder meeting presentation, Oct 28, 2011
Slide 1: 2011 Annual General Meeting
2011 Annual General Meeting 28th October 2011
Slide 2: Board of Directors
Board of Directors Mr JA (Tony) Killen OAM Mr Robin Burns Mr David Groves Non Executive Director Chairman Managing Director Non Executive Director Deputy Chairman Mr John McConnell Ms Alice Williams The Hon Jeffrey Ms Anne O’Donnell Non Executive Director Non Executive Director Kennett AC 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: 2011 Shareholder Review and Annual Report
2011 Shareholder Review and Annual Report 4
Slide 5: Sharemarket performance: S&P/ASX200 Accum Index vs. MSCI ex Australia
Sharemarket performance. S&P/ASX200 Accum Index vs. MSCI ex Australia 20.0% 10.0% 0.0% -10.0% -20.0% -30.0% -40.0% -50.0% -60.0% 30 June 2007 30 June 2008 30 June 2009 30 June 2010 30 June 2011 MSCI Ex Australia (USD) S&P/ ASX 200 Accumulation Index 5
Slide 6: External net flows to EQT retail funds
External net flows to EQT retail funds $m. $400 $300 $200 $100 $0 -$100 2007/8 2008/9 2009/10 2010/11 Aust Cash & Fixed Interest International Equities Aust Equities Listed Property 6
Slide 7: Overview – FY2011
Overview – FY2011 • Profit growth despite difficult conditions. • All revenue business units profitable. • Two acquisitions – one completed, one in progress at 30 June 2011. • 100¢ full-year, fully franked dividend, reduced by 10¢ from 2010. • Strong balance sheet, nil debt. • Systems upgrade comple
Slide 8: Profitability
Profitability Net profit after tax up at $8.2m (includes profit on sale of investments) 8
Slide 9: Shareholder Dividends
Shareholder Dividends Full-year, fully-franked dividend Reflecting a current yield of approximately 8.0% before franking credits 9
Slide 10: Dividend payout ratio
Dividend payout ratio Full-year divided as percentage of EPS 120% 111.7% 113.9% 103.1% 100% 75.5% 71.5% 71.3% 82.5% 80% 60% 40% 20% 0% 2005 2006 2007 2008 2009 2010 2011 Dividend payout policy range 10
Slide 11: Share price performance - diversified financials
Share price performance - diversified financials 80% 60% 40% 20% 0% -20% -40% -60% -80% 30/06/2005 30/06/2006 30/06/2007 30/06/2008 30/06/2009 30/06/2010 30/06/2011 S&P/ASX 200 Index S&P/ASX 200 Banks S&P/ASX 200 Diversified Financials 11
Slide 12: Total Shareholder Returns
Shareholder Returns 5 Year and 6 Year Total Shareholder Returns as at 30 June. EQT and five comparable organisations 15.00% 10.00% 5.00% 0.00% Return -5.00% -10.00% -15.00% -20.00% EQT B C D E F Company 6 Years 5 Years 12
Slide 13: Recent acquisition – OAMPS Superfund
Recent acquisition – OAMPS Superfund • Completion of OAMPS super fund (renamed Apex) acquisition as planned on 1 November 2010. $265m FUM. • Profitable from day one and generated better performance than expected in first 8 months. • Transition and integration complete. • Lifetime Planning and Tender
Slide 14: The Board
The Board • Formal performance appraisal in March 2010 – overall conclusion was positive – tracking progress on suggestions. Board actively reviewing deliberative processes to enhance focus on strategic issues. • Succession planning process is in place – based on desired skills mix and timetable for
Slide 15: Looking ahead
Looking ahead Outlook for 2012 • Economic conditions still difficult in some major economies – continues to impact confidence, equity markets, investors and therefore fund flows. • Despite Australia’s better position, same factors affecting business conditions here. • Long term outlook for financial
Slide 16: Mr Robin Burns, Managing Director
Mr Robin Burns Managing Director Equity Trustees Limited 16
Slide 17: Overview – FY2011
Overview – FY2011 • Revenue growth 14% – mix of organic (Private Clients, Corporate) and acquired. • Expenses grew 19% – comprises recurring, non-recurring and acquired. • Mixed conditions affected revenue units performances – overall margin healthy. • Base IT operating platform upgrade completed –
Slide 18: S&P/ASX All Ordinaries Index – Year on Year
S&P/ASX All Ordinaries Index – Year on Year 5500 5000 4500 4000 3500 3000 Jun Jul Aug Sep Oct Nov Dec Jan Feb Mar Apr May Jun All Ords 2011/12 All Ords 2010/11 All Ords 2009/10 All Ords 2008/09 18
Slide 19: Share price performance - diversified financials
Share price performance - diversified financials 15.00% 10.00% 5.00% 0.00% -5.00% -10.00% -15.00% -20.00% -25.00% -30.00% -35.00% -40.00% 31/12/2010 31/01/2011 28/02/2011 31/03/2011 30/04/2011 31/05/2011 30/06/2011 31/07/2011 31/08/2011 30/09/2011 S&P/ASX 200 Index S&P/ASX 200 Banks S&P/ASX 200 Dive
Slide 20: Expense composition
Expense composition Year-on-year, Group expenses have increased by 19% $28.4m $1.5 $0.7 $23.8m $0.4 Apex Recurring Expenses - 8 mths ($m) Recurring Non-Recurring Expenses ($m) expenses $26.2 increase $23.4 by 11.8% Recurring Expenses ($m) 2010 2011 20
Slide 21: Business units – activities and key measures
Business units – activities and key measures 2011 Revenue, 2011 FUM/FUA, Business unit Key services Target market / channel vs 2010 vs 2010 Private Clients • Trusts & Estates • Private clients $9.6m $1,312m • Philanthropy • Business to business referrals +12.2% +4% • Wealth Management • Asset Manage
Slide 22: Business unit overview – Private Clients
Business unit overview – Private Clients Operating revenue up 12.2% to $9.6m FUM/FUA at 30 June 2011 up 4.0% to $1,312m Significant one‐off ($m) ($m) estates boost $1,490 $10.4 $9.6 $1,303 $1,333 $1,312 $1,128 $1,261 $9.3 $1,112 $8.5 $7.6 $5.9 $6.1 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2
Slide 23: Business unit overview – CF&FS
Business unit overview – CF&FS Operating revenue up 6.4% to $17.2m FUM/FUA at 30 June 2011 up 20.5% to $19,485m ($m) ($m) $18.7 $17.2 $15.9 $16.1 $19,485 $15.8 $14,949 $15,646 $16,171 $12.6 $12,124 $12,542 $9.3 $7,978 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 • Strong net
Slide 24: Business unit overview – Superannuation
Business unit overview – Superannuation Operating Revenue up 34.9% to $11.2m FUM at 30 June 2011 up 56.9% to $979m ($m) ($m) $11.2 $979 $8.5 $8.3 $7.9 $635 $615 $626 $565 $5.3 $4.4 $400 $3.4 $319 2005 2006 2007 2008 2009 2010 2011 2005 2006 2007 2008 2009 2010 2011 • Integration of OAMPS super, rena
Slide 25: Support Services
Support Services • Support services provided by Corporate, Human Resources, Business Systems & Technology, Marketing, Operations, Legal, Risk Management & Compliance and Internal Audit are all integral parts of the business. • Next major project – consolidate and integrate currently disparate IT pla
Slide 26: Business update
Business update • New business leads, generation continuing in private client and corporate services. • Fund inflows entirely skewed to defensive lower-margin classes, but strong. • Market volatility and low confidence affecting business conditions – industry experiencing retrenchment. • Stronger Su
Slide 27: Summary
Summary • Diversified revenue streams, all profitable and in attractive segments. • Group weathering a difficult period well – challenging conditions and volatile markets may be the norm for some time. • Need to continue to develop and invest for the long term, but cognisant of current results and d
Slide 28: Agenda
Agenda 1. Overview and highlights Mr Tony Killen 2. Operational performance Mr Robin Burns Items of business Mr Tony Killen 4. Questions 28
Slide 29: 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 2011. Item 2 To adopt the remuneration report for year ended 30 June 2011. Item 3 To consider the election of directors. Item 4 To consider the grant of a
Slide 30: 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 2011. 30
Slide 31: Items of ordinary business – Item 2
Items of ordinary business – Item 2 Item 2 To adopt the remuneration report for year ended 30 June 2011. 31
Slide 32: Remuneration
Remuneration • No Short Term Incentives paid for 2008/09 or 2009/10, and 38% of maximum pool paid in 2011. • 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 30/6/10) Series 4 Not Earned (ended 30/
Slide 33: Tracking remuneration vs DPS
Tracking remuneration vs DPS 33
Slide 34: Item 2 – proxies received
Item 2 – proxies received To adopt the remuneration report for year ended 30 June 2011 In respect of item 2 of ordinary business, the following proxies have been received: For Against 226,985 3,365,356 (6.25%) 34
Slide 35: Items of ordinary business – Item 3
Items of ordinary business – Item 3 Item 3 To consider the election of directors. 35
Slide 36: Item 3(a): Re-election of Mr D F Groves
Items of ordinary business – Item 3 Item 3(a): To consider the re-election of Mr D F Groves 36
Slide 37: Item 3(a) – proxies received
Item 3(a) – proxies received To consider the re-election of Mr D F Groves In respect of item 3(a) of ordinary business, the following proxies have been received: For Against Mr D F Groves 4,135,560 3,182 Open (held by EQT directors) = 403,953 37
Slide 38: Item 3(b): Re-election of The Hon J G Kennett AC
Items of ordinary business – Item 3 Item 3(b): To consider the re-election of The Hon J G Kennett AC 38
Slide 39: Item 3(b) – proxies received
Item 3(b) – proxies received To consider the re-election of The Hon J G Kennett AC In respect of item 3(b) of ordinary business, the following proxies have been received: For Against The Hon J G Kennett AC 4,054,942 80,814 Open (held by EQT directors) = 412,195 39
Slide 40: Items of special business – Item 4
Items of special business – Item 4 Item 4: To consider the grant of a long-term incentive award to Managing Director. 40
Slide 41: Managing Director’s LTI. 2011/2012 Series
Managing Director’s LTI. 2011/2012 Series • Quantum: 54% of TEC ($450k) = $243k • 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 42: Item 4 – proxies received
Item 4 – proxies received To consider the grant of a long-term incentive award to Managing Director. In respect of item 4 of special business, the following proxies have been received: For Against 3,823,320 230,032 Open (held by EQT directors) = 139,066 42
Slide 43: Agenda
Agenda 1. Overview and highlights Mr Tony Killen 2. Operational performance Mr Robin Burns 3. Items of business Mr Tony Killen • Questions 43
Slide 44: Thank you
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