Perpetual Limited · ASX:PPT
Perpetual — H1 2005 Earnings Presentation
26 slides from Perpetual's earnings presentation, Jun 1, 2005
Slide 1: Update on Perpetual's 2005 Half Year Results and May Letter to Shareholders
Update on Perpetual’s 2005 Half Year Results and May Letter to Shareholders 1 June 2005 repens
Slide 2: Agenda
Agenda Financial results Corporate strategy update Outlook Perpetvaip
Slide 3: An excellent first half result
An excellent first half result Dec 2004 Dec 2003 "os Change Operating profit after tax! $41.4m 31% Profit after tax $42 4m 58% Interim dividend per G, share 70¢ 86% EPS@)(3) 109.2 ¢ 29% (1) Operating profit after tax excludes realised gains on invesiments and one-off costs of major strategic initiat
Slide 4: Track record of continued profit growth
Track record of continued profit growth Operating Profit after Tax EPS $M cents 605 150 140.6 1007 50-7 o- Dec Dec Dec Dec Dec Dec Dec Dec Dec Dec 00 O01 02 O38 04 00 O01 02 O03 04
Slide 5: 19% increase in revenues driven by strong growth in asset volumes
19% Increase in revenues driven by strong growth in asset volumes Funds Under Advice & Funds Under Management co Funds Under Administration Administration Perpetual Investments Corporate Trust Perpetual Private Clients 1505 138.4 1005 504 0 0 0 Dec Jun Dec Jun Dec Apr Dec Jun Dec Jun Dec Apr Dec Jun
Slide 6: All operating divisions performing well
All operating divisions performing well m Wealth Management — up very strongly ~ Continued outstanding investment performance -~ Good fund inflows and revenue growth ~— Continued cost management ~ Added capabilities to deliver growth m Corporate Trust — up strongly ~ Securitisation volumes and reven
Slide 7: 26% growth in EBITDA
26% growth in EBITDA EBITDA EBITDA %o Dec 2004 Dec 2003 Change Wealth Management $56.8m 32% Corporate Trust $12.9m 17% Group unallocated ($2.8m) - TOTAL* $66.9m 26% * Excludes gains on sale of investments and one-off costs of major strategic initiatives
Slide 8: Continued outstanding performance in Australian Equities
Continued outstanding performance in Australian Equities Excess over benchmark (pre-fees) (3 Year Rolling Excess Performance} Variance to benchmark 10.0% 8.0 Australian Share Fund Performance 6.05 4.04 ist Quartile 2.04 Performers- . Mercers Universe 0.0 T T T T T T T T T T T T T T T T T T T T T T 1
Slide 9: Performance well recognised by the market during this half
Performance well recognised by the market during this half Fund Manager of the Year 2004 Australian Equities Fund Manager of the Year 2004 Australian Multi-Sector Fund Manager of the Year 2004 Fund Manager of the Year 2004 Best Rated Australian Equities Fund Best Growth Fund Golden Bull Award for Fu
Slide 10: Funds under management up 20% in the first half
Funds under management up 20% in the first half FUM ($B) 3075 257 207 15-4 10-7 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 Dec 04
Slide 11: First half net inflows of $1.4B
First half net inflows of $1.4B 30 June 2004 Net inflows Other* 31 Dec 2004 FUM ($B) ($B) ($B) FUM ($B) Retail $6.6 $0.7 $7.3 Masterfund $11.7 $1.4 $13.8 Institutional $3.4 $0.8 $4.9 All Channels $21.7. $2.9 $26.0 Australian Equity $13.9 $2.6 $17.8 Other $7.8 $0.3 $8.2 All Asset Classes $21.7 $2.9 $
Slide 12: Global equities business fully operational
Global equities business fully operational # PIML (PI Investment Management Ltd.) established and operating with 15 people in total ~ Recently authorised by the Irish Financial Services Regulatory Authority to commence operations ~ Team of7 very well regarded asset managers ~ Highly experienced Lond
Slide 13: Agenda
Agenda First half highlights rancial results Corporate strategy update Outlook Perpetvaip
Slide 14: Overview
Overview « Building off a solid base « Moving decisively to implement strategy # Continuing to create a more variable cost base # Pleasing result in a period of significant activity Perpetvaip
Slide 15: Operating profit after tax of $54.3m
Operating profit after tax of $54.3m $100M- 80-4 24.2 -4.0 66.8 S07 54.3 4075 207 0 - , Operating Profit on sale Provisions for One-off expense Net profit profit after tax of investments/ the move to a for establishing after tax businesses single Sydney global equities {after tax) premises (after ta
Slide 16: First half saw an increase in variable costs and an investment in growth
First half saw an increase in variable costs and an investment in growth... m Staff incentive costs higher in line with increased profits m {Increased professional fees for outsourced operations (FUM based fees) = Credit investing capability a Strategy and project management a Risk management = Prod
Slide 17: ...whilst maintaining profitability
...whilst maintaining profitability EBITDA to revenue margin (%) 707 60- 5075 407 304 207 Dec 02 Jun 03 Dec 03 Jun 04 Dec 04
Slide 18: A strong, clean balance sheet
A strong, clean balance sheet Dec 2004 Jun 2004 % Change Net assets $315.4m (12%) Investments at cost $60.1m 1% Investments at market value $109.5m 6% Cash holdings $163.4m (20%) Liquid assets $272.9m (10%) Key Financial Ratios Gross debt to book equity 14% Interest coverage (EBITDA) 57x 17
Slide 19: Normal dividend per share as per our new dividend policy
Normal dividend of 130 cents per share as per our new dividend policy Ordinary dividend per share (cents) 15075 100-7 507 0 L | _ / / Dec 02 Jun 03 Dec 03 Jun 04 Dec 04 Special Dividend 50 250* (cents per share) Perpetvaip * Includes special dividends of 50 cents paid in June 2004 and 200 cents paid
Slide 20: Agenda
Agenda First half highlights Financial results i ‘i ‘rporate strategy update _— Outlook Perpetvaip
Slide 21: Perpetual's strategy
Perpetual’s strategy IL Develop new growth engines ll. Fully engage our people to deliver our strategy
Slide 22: Implementation: Developing a more balanced portfolio and new growth engines
Implementation: Developing a more balanced portfolio and new growth engines « Expanded our asset management footprint -~ Global equities ~ Credit 2 Opened global equities business in Ireland a Initial flows into credit income and credit enhanced cash products # Launched property income and capital p
Slide 23: Expanding our asset management footprint
Expanding our asset management footprint Emerging Markets Broad Property Vanilla Bonds Skills we currently possess
Slide 24: Implementation: Fully engage our people
Implementation: Fully engage our people w Completed implementation of new remuneration system w Moving to a single premises in January 2006 - Angel Place ~ Completed sale of 39 Hunter Street # Leadership team in place a Long term incentives in place to retain key members of our asset management team
Slide 25: Agenda
Agenda First half highlights Financial results Corporate strategy update Perpetvaip
Slide 26: Outlook for 2005
Outlook for 2005 ‘Despite some pull-back in the Australian stock market in recent months, our profit guidance given in February of an approximate 25 per cent improvement in operating profit for the year to 30 June 2005 remains appropriate. This profit outlook is subject to there being no further sig