Mystate Limited · ASX:MYS
Mystate — FY2010 Earnings Presentation
29 slides from Mystate's earnings presentation, Aug 30, 2010
Slide 1: MyState Limited Investor Presentations August/September 2010
MyState Limited (ASX Code: MYS) For personal use only Investor Presentations August/September 2010
Slide 2: MyState Limited Investor Presentations
For personal use only MyState Limited Investor Presentations August/September 2010
Slide 3: John Gilbert, Managing Director
MyState Limited For personal use only Investor Presentations August/September 2010 John Gilbert Managing Director
Slide 4: Disclaimer
Disclaimer This presentation contains certain forward‐looking statements with respect to the financial condition, results of operations, business plans and objectives of management. All such forward‐looking statements involve known and unknown risks, significant uncertainties, assumptions, contingen
Slide 5: Programme
Programme For personal use only • Merger Update • Business Update • Performance Highlights • Strategic Priorities
Slide 6: Merger Update
Merger Update The Board believes that the recent merger of MSF and TPT has created a For personal use only fully integrated financial services group with increased scale which allows us to: ¾ deliver a greater range of products and services to existing and new customers ¾ enhance our future growth o
Slide 7: Our Group Structure
For personal use only Our Group Structure MyState Limited Non-Operating Holding Company d 10 ne 0% ow ow 0% ne 10 d Subsidiary Subsidiary
Slide 8: The Merger Proposal: One Year On
The Merger Proposal: One Year On • MyState Limited is a Non‐operating holding company For personal use only • MyState Financial and Tasmanian Perpetual Trustees are main subsidiaries • For All Shareholders: ¾ Earnings per share (EPS) accretive in Year 1 and strongly EPS accretive thereafter. ‐ Achie
Slide 9: MyState Limited: Market Position
MyState Limited: Market Position For personal use only Market capitalisation $ 211M NPAT $17.3M Net Assets $198.4M Funds Under Management (1) $0.93B Loans Under Management (2) $1.71B Funds Under Advice or Administration (1)(2) $741M Deposits (2) $1.57B (1) Relates to Tasmanian Perpetual Trustees Lim
Slide 10: MyState Limited: Merger Outcomes
MyState Limited: Merger Outcomes • Revenue synergies For personal use only ¾ Increased product and service offering delivering opportunities to create revenue growth ¾ Cross referral process between MSF and TPT underway • Cost synergies ¾ Operating cost synergies realised in YEJ 10 and ongoing ¾ A s
Slide 11: MYS Group Results
MYS Group Results YEJ 10 • Comprised of 12 months trading for MyState Financial (MSF) For personal use only and 10 months for Tasmanian Perpetual Trustees (TPT) • Group Revenue of $155.58M • Group Profit After Tax (PAT) of $17.34M (Includes some “one‐ off” costs and gains) • Earnings Per Share (EPS)
Slide 12: MYS Group Results - Revenues
MYS Group Results ‐ Revenues For personal use only • MSF Net Interest Margin (NIM) is stable • TPT Managed Investment Scheme (MIS) management fees have stabilised after the Global Financial Crisis (GFC), but below 2008 levels • TPT capital and income commissions down 16% on 2009 levels due to effect
Slide 13: MYS Group Results - Expenses
MYS Group Results ‐ Expenses • MSF salaries down on last year, despite “one‐offs” demonstrating For personal use only good progress with cost savings • MSF bad debts stable in YEJ 10 • All other MSF costs stable • TPT wages up in YEJ 10 due to “one‐off” redundancy costs • TPT underlying wages reduce
Slide 14: MYS Group Significant Items (pre-tax)
MYS Group Significant Items (pre‐tax) for YEJ 10 For personal use only Twelve months ended 30 June 2010 YEJ 10 ($M) Share sale facility costs (1.2) Redundancy costs (3.2) Stamp duty costs on Connect/Island State merger (0.4) Executive recruitment costs (0.2)
Slide 15: MSF $1.83 billion in Deposits & FUA
MSF $1.83 billion in Deposits & FUA For personal use only MSF Deposits & FUA Retail Deposits 2,000 Growth of 21% $256 million FUA* 1,500 through Financial ($ M illions ) Planning Services. 1,000 * FUA – funds under advice 500 0 2009 2010 Deposits FUA
Slide 16: MSF Household Deposits
MSF Household Deposits Balance Growth ‐ Household Deposits For personal use only System data source: APRA ‐ Licensed bank deposit data; Six month growth is to Jun‐10 annualised
Slide 17: MSF $1.71 billion in Loans
MSF $1.71 billion in Loans For personal use only MSF Loans 2,000 14% Growth in Loans ($ M illio n s) 1,500 1,000 500 0 2009 2010 Loans
Slide 18: MSF Home Lending
MSF Home Lending For personal use only Source: RBA; Six month growth is to Jun-10 annualised
Slide 19: MSF Net Interest Margin
MSF Net Interest Margin For personal use only Net Interest Margin 3.50% 3.30% 3.10% 2.90% 2.70% 2.50% Jun-09 Jul-09 Aug-09 Sep-09 Oct-09 Nov-09 Dec-09 Jan-10 Feb-10 Mar-10 Apr-10 May-10 Jun-10 Jul-10 Net Interest Margin
Slide 20: MyState Financial still leads the 'big four' - customer satisfaction
MyState Financial still leads the ‘big four’- customer satisfaction – June 2010 For personal use only
Slide 21: MYS Group Capital Adequacy
MYS Group Capital Adequacy For personal use only Capital Adequacy Group Basis 15.50 15.00 14.50 14.00 Ratio 13.50 13.00 12.50 12.00 0 0 9 09 9 0 0 9 0 0 0 09 9 -1 -1 -0 r-1 -1 0 l-1 l-0 1 1 0 g- - n- n- p- - ay ar ct ov b ec Ju Ju Ap Au Ja Ju Fe Se O M M N D Mth Note: Estimated ratio at finalisation
Slide 22: TPT $0.93 billion Funds Under Management
TPT $0.93 billion Funds Under Management For personal use only TPT Funds Under Management Fund levels impacted by GFC, 1,600 unfavourable 1,379 interest rate 1,400 1,305 1,307 1,247 1,211 environment, 1,170 1,200 intense competition 1,045 1,006 for retail funds and 934 ($ M illions) 1,000 adverse mo
Slide 23: TPT $0.48 billion Funds Under Advice
TPT $0.48 billion Funds Under Advice For personal use only TPT Funds Under Advice 700 $485 million FUA* 600 547 567 576 through Financial 501 485 500 Planning Services. ($ Millions) 400 *FUA – funds under advice 300 200 100 0 2006 2007 2008 2009 2010
Slide 24: Returns to Shareholders
Returns to Shareholders For personal use only The Board of MyState Limited has established a policy of generally paying ordinary dividends each year within the range of 70% to 90% of net profit after tax. This reflects; ¾ confidence in the prospects of the business ¾ strong cash flow generation ¾ hi
Slide 25: MyState Limited Share Price Movements
MyState Limited Share Price Movements For personal use only MyState Limited vs S&P/ASX200 since listing indexed to 100 ASX200 MYS 115 110 105 100 95 90 85 09 09 10 10 10 10 10 10 9 9 9 00 00 00 20 20 20 20 20 20 20 20 /2 /2 /2 8/ 9/ 1/ 2/ 3/ 4/ 5/ 6/ 11 12 10 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/ 1/
Slide 26: Strategic Priorities
For personal use only Strategic Priorities
Slide 27: Strategic Priorities
Strategic Priorities For personal use only • Rolling 3 year Strategic Plan developed by Board and Executive and to be reviewed each year. • Yearly targets/milestones set with quarterly progress reporting to the Board.
Slide 28: Questions?
For personal use only Questions ?
Slide 29: MyState Limited Investor Presentations
MyState Limited (ASX Code: MYS) For personal use only Investor Presentations August/September 2010