Perpetual Limited · ASX:PPT
Perpetual — Investor Presentation (May 2011)
16 slides from Perpetual's investor presentation, May 26, 2011
Slide 1: Market Briefing
For personal use only Market Briefing Presented by: Chris Ryan, Managing Director & CEO 26 May 2011 ABN 86 000 431 827
Slide 2: 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 26 May 2011. It is in summary form and is not necessarily complete. The information in this presentation is not int
Slide 3: Approach to the Review
Approach to the Review For personal use only ■ Reviewed the businesses and capabilities ■ Listened to clients/regulators/research houses/investors ■ Business portfolio management approach: – Manage for Growth – invest sufficiently to ensure success, dynamic management, priority for resources, clear
Slide 4: Review Outcomes
Review Outcomes For personal use only ■ Core structure and competitive strengths of Perpetual business model validated – Scale and independence – Brand strength and heritage – Strong balance sheet – Quality and diversity of earnings – Top performing asset managers – Experienced management team ■ Mov
Slide 5: Cost & Efficiency
Cost & Efficiency For personal use only ■ Objective – Moving towards more flexible cost base operationally through greater emphasis on variable costs and away from fixed costs ■ Appointment of Group Executive Operations to lead cost & efficiency drive – New leadership in Operations to provide greate
Slide 6: Cost & Efficiency (ctd.)
Cost & Efficiency (ctd.) For personal use only ■ Continue to review whether we will perform all existing functions in-house – Outsource mature processes that provide commoditised services ▪ Outsourcing platform administration services for HNW Private Wealth (PACT) - Responses to RFP received and sho
Slide 7: Distribution – Sales and Marketing
Distribution – Sales and Marketing For personal use only ■ Brand and product strengths underexploited – Distractions of the past year now behind us – Brand remains amongst the strongest in the market – Stronger focus on sales and marketing ■ New leadership in marketing and sales, with company-wide m
Slide 8: New Management Structure
New Management Structure For personal use only CHRIS RYAN Managing Director & Chief Executive Officer ROGER BURROWS GEOFF LLOYD Chief Financial Officer Group Executive Private Wealth IVAN HOLYMAN CHRIS GREEN Chief Risk Officer Group Executive Corporate Trust RICHARD VAHTRICK CATHY DOYLE Group Execut
Slide 9: Active Capital Management
Active Capital Management For personal use only ■ Reviewed Group’s capital requirements, based on regulatory guidelines – Approximately $140m of risk based capital required – Methodology aligned with comparable regulatory guidelines, including APRA and Basel – Lower than previous levels as a result
Slide 10: Operational Environment
Operational Environment For personal use only ■ Short Term: – Industry flows continue to be subdued – Substantial build-up of household assets in cash and deposits – Slowing redemption rate suggests possible turn in sentiment – Slowing mortgage volumes ahead of expected rates rises ■ Long term: – Pr
Slide 11: Regulatory Environment
Regulatory Environment For personal use only ■ Perpetual benefits from efforts to enhance the reputation, relevance and value of financial advice through the Federal Government’s Future of Financial Advice initiatives (FOFA) ■ Perpetual already well positioned – Adhering to highest fiduciary standar
Slide 12: Business Overview: Perpetual Investments
Business Overview: Perpetual Investments For personal use only ■ Equities – Australian equities ▪ Recognised for outstanding long-term manufacturing performance ▪ Incubating new strategies – International equities ▪ Existing demand and opportunity for international equity asset class ▪ Approach unde
Slide 13: Business Overview: Private Wealth
Business Overview: Private Wealth For personal use only ■ New team and growth strategy under Geoff Lloyd since his arrival in August last year – Four senior key appointments – More comprehensive services and advice, including debt and insurance products – Capturing cross-revenue opportunities in adv
Slide 14: Business Overview: Corporate Trust
Business Overview: Corporate Trust For personal use only ■ Key portfolio component – Provides diversification from non-equity market linked revenues – Represented approximately 24% of FY10 Profit Before Tax – Leveraging our heritage and values: independence, trust and representing the best interests
Slide 15: FY11 Financial Outlook
FY11 Financial Outlook For personal use only ■ FY11 UPAT expected to be broadly in line with previous year (FY10 UPAT $72.8m) – 2H11 impacted by: – Lower than expected inflows in all three business units – Significant reduction in mortgage processing volumes due to weaker demand for housing finance
Slide 16: Summary
Summary For personal use only ■ Perpetual’s strengths confirmed, but standards can and must improve to support better execution – Benchmark to international standards – Leverage scale and independence ■ Positioned to build momentum in the business - steps already taken: – Strong team in place, inter