Eqt Holdings Ltd. · ASX:EQT
Eqt — H1 FY2016 Earnings Presentation
25 slides from Eqt's earnings presentation, Feb 29, 2016
Slide 1: Half Year Result, correction to one slide of the shareholder presentation
29 February 2016 Half Year Result, correction to one slide of the shareholder presentation EQT Holdings Limited advises a correction to a slide in the Half Year Result shareholder presentation publicised on Thursday, 25 February. The categorisation of certain figures on slide 16 of the shareholder p
Slide 2: EQT Holdings Limited (EQT) First half results to 31 December 2015
EQT Holdings Limited (EQT) First half results to 31 December 2015 Revised 29 February 2016
Slide 3: Agenda
Agenda Summary Group Performance Business Unit • Trustee & Wealth Services (TWS) Performance • Corporate Trustee Services (CTS) Conclusion 2
Slide 4: Solid 1H Performance
Solid 1H Performance Summary • Group Operating Profit up 4% to $14.1m and Net Profit after Tax $7.0m • Solid growth in core business with FUM/A up 19% to $56.9b and Group Operating Margin of 33% maintained • Scheme of Arrangement to improve flexibility of capital structure implemented • Three key pr
Slide 5: Overview – 1H Group Results
Overview – 1H Group Results 1H FY2016 1H FY2015 $m $m Change Operating revenue 42.6 41.1 3.6% Operating expenses (28.5) (27.6) 3.3% Operating profit before tax 14.1 13.5 4.2% Income tax expense (3.9) (3.8) Operating profit after tax 10.2 9.7 4.2% Amortisation of intangibles (nil tax) (0.7) (0.8) Non
Slide 6: 1H Revenue up 4% in Declining Equity Markets
1H Revenue up 4% in Declining Equity Markets Operating revenue up 4% to $42.6m Business Unit Revenue ($m) Effective 4 July 2014, revenue includes ETWSL (formerly Average Daily ASX200 known as ANZ Trustees) 46.0 6,000 44.0 $42.6m 42.0 $ 41.1m 40.0 38.0 5,500 36.0 5,185 34.0 5,440 32.0 5,266 30.0 5,00
Slide 7: 1H Revenue – Composition
1H Revenue – Composition Trustee & Wealth Services Corporate Trustee Services 46.0 Average Daily ASX200 6,000 44.0 $ 42.6m 42.0 $ 41.1m 40.0 5,440 38.0 5,266 5,500 36.0 5,185 34.0 32.0 11.5 12.9 30.0 5,000 28.0 $26.1m 26.0 24.0 $22.5m 4,500 22.0 $ 20.7m 20.0 4,386 18.0 9.5 4,229 7.6 16.0 6.5 4,000 1
Slide 8: 1H Operating Expense Growth Contained to 3%
1H Operating Expense Growth Contained to 3 % • Operating expenses up 3% to $28.5m • Includes restructuring costs $28.5m $27.6m $19.2m $15.6m $16.4m 2012 2013 2014 2015 2016 7
Slide 9: Strong Operating Margin Maintained
Strong Operating Margin Maintained Operating Profit (Pre tax) ($m) Operating Margin (%) 32.8% 33.1% 16.0 34.0% 14.0 26.4% 26.3% 14.1 12.0 24.9% 24.0% 13.5 10.0 8.0 14.0% 6.0 5.9 6.9 4.0 5.2 4.0% 2.0 2012 2013 2014 2015 2016 0.0 -6.0% 8
Slide 10: Returns to Shareholders
Returns to Shareholders Dividend history First half dividend as percentage of reported EPS Final (cps) Interim (cps) 110 100 94 94 140% 92 85 120% 113.0% 114.0% 115.7% 60 50 48 48 100% 96.5% 50 88.7% 45 81.1% 78.9% 80% 34 60% 50 50 40% 42 46 46 40 34 20% 0% 2010 2011 2012 2013 2014 2015 2016 2010 20
Slide 11: Business Units – 1H Performance
Business Units – 1H Performance Trustee & Wealth Services (TWS) Corporate Trustee Services (CTS) 10
Slide 12: Business Unit 1H Overview – TWS
Business Unit 1H Overview – TWS Underlying growth offset by FUM/A at 31 December 2015 up declining markets 1% to $7.5b 35 $7,543m Superannuation $7,456m Philanthropy 30 Trust & Estate 2,359 2,371 Wealth Advice 25 Revenue $m $4,645m 20 1,744 1,957 $3,506m $3,626m 1,618 15 $29.6 $29.7 1,315 1,359 493
Slide 13: Repositioning the Superannuation Business for Growth
Repositioning the Superannuation Business for Growth • Pursuing scale through the integration of EQT Super funds with KPMG Executive fund • Outsourcing administration to KPMG – focus on growing FUM as Trustee, Custodian and Asset Manager • Building specialist capability to continue to grow superannu
Slide 14: Business Unit 1H Overview – TWS
Business Unit 1H Overview – TWS • Strong growth in compensation trusts through Operating revenue external referral networks • External referrals for estate planning up 25% $30m • Campaign to internal will bank clients underway • Superannuation Trustee business continues to perform well through the e
Slide 15: Business Unit 1H Overview – CTS
Business Unit 1H Overview – CTS Operating revenue up FUM/A at 31 December 2015 12.2% to $12.9m up 22.7% to $49.4b 14 Other Australian Fixed Interest 12 $49,397m Australian Equities Global Fixed Interest 9,385 10 Global Equities - 2,964 Revenue $m 8 4,446 - $12.9 10,867 6 - $11.5 $9.5 40,270 4 - $7.6
Slide 16: Business Unit 1H Overview – CTS
Business Unit 1H Overview – CTS Operating revenue • Acting as fiduciary for 212 funds across up by 86 fund manager clients; a net increase of 12.2% 13 funds and 4 clients • FUM from new clients of $2.6b to $12.9m • Further expansion and diversification in range of fiduciary roles FUM/A up by • PIMCO
Slide 17: Building a Foundation for Growth: Key Projects on track
Building a Foundation for Growth Key Projects on track Actual Forecast Forecast One-off Key Projects ($'m) 1H FY16 2H FY16 1H FY17 Corporate Restructure 0.75 0.32 - Superannuation Restructure 1.25 1.05 - Business Assurance 1.21 1.29 0.75 (Enhancing Risk & Regulatory Management) Other 0.35 0.40 0.20
Slide 18: Business Assurance Project: Building for Growth
Business Assurance Project: Building for Growth Continuing to address the rapidly changing and increasingly complex regulatory and compliance environment: • Enhancing the Risk Management and Regulatory Compliance framework to ensure EQT remains highly competent in Risk Management • Updating and harm
Slide 19: Conclusion
Conclusion • Clear strategy with good momentum in core business • Corporate Trustee Services ̶ Achieving strong organic growth with significant FUM and new customer increases • Trustee & Wealth Services ̶ Growth in core business enduring revenues partially offset by the decline in equity markets ̶ G
Slide 20: Appendices
Appendices 1. Business Units 2. Full Year Dividend payout ratio 3. Cash Flow
Slide 21: Appendix 1: Business Units
Appendix 1: Business Units Business unit Key services Target market / channel Trustee & Wealth Services • Personal estates & trusts • Private clients (TWS) • Philanthropy • Business to business referrals • Wealth management • Small-medium size corporates • Asset management • Members • Aged care advi
Slide 22: Appendix 2: Full-year dividend as percentage of reported EPS
Appendix 2: Full-year dividend as percentage of reported EPS Dividend payout ratio on Reported NPAT EPS Target Ratio: 70-90% of NPAT 120% 111.7% 113.9% 106.0% 107.1% 103.1% 100% 95.2% 87.9% 82.5% 80% 71.3% 60% 40% 20% 0% 2007 2008 2009 2010 2011 2012 2013 2014 2015 Dividend payout policy range 21
Slide 23: Appendix 3: Strong Operating Cash Flow
Appendix 3: Strong Operating Cash Flow $40 +$1.75m Millions +$1.00m - $3.75m $35 +$4.72m $30 +$5.62m - $7.86m $26.44m $24.95m $25 $20 $15 $10 $5 $0 Opening Pre-tax net Cash from Proceeds from Cash from Income tax Payment of Closing Balance cashflow from investing borrowings issuance of paid dividend
Slide 24: Disclaimer
Disclaimer EQT Holdings Limited ABN 22 607 797 615. This document was prepared by EQT Holdings Limited and is only provided for information purposes. It is not intended to take the place of professional advice and you should not take action on specific issues in reliance on this information. To the
Slide 25: ‘Trustees
© ‘Trustees