Eqt Holdings Ltd. · ASX:EQT
Eqt — Equity Trustees — H1 FY2012 Earnings Presentation
20 slides from Eqt's earnings presentation, February 2012
Slide 1: Equity Trustees Limited Half Year Results to 31 December 2011
Equity Trustees Limited Half Year Results to 31 December 2011
Slide 2: Overview – HY2012
Overview – HY2012 ¾ Solid result given adverse investment market conditions. ¾ All business units performing satisfactorily for these conditions. ¾ Achieved organic revenue and FUM growth - varies across business lines. ¾ Interim dividend at 40 cps fully franked – 89% payout ratio. ¾ Restructuring o
Slide 3: Overview – HY Group results
Overview – HY Group results Half Year Half Year 31 Dec 2011 31 Dec 2010 $m $m Change Operating revenue 20.7 18.7 11.0% Operating expenses (15.7) (13.7) (14.9%) Operating profit before tax 5.0 5.0 Income tax expense (1.4) (1.5) Operating profit after tax 3.6 3.5 3.8% Net profit from sale of investmen
Slide 4: HY Revenue
HY Revenue ¾ Revenue increased 11% ¾ Compound Annual Growth Rate 10.2% Investment Income ($m) 11% (Excludes profit on sale of investments) increase Business Unit Revenue ($m) $20.7m 0.2 $18.6m $18.7m $18.1m 0.6 $16.9m 0.4 0.6 $15.8m 0.4 0.5 $11.6m 20.5 0.7 18.0 15.3 18.3 17.5 16.5 10.9 2006 2007 200
Slide 5: HY Revenue composition
HY Revenue composition H Y on H Y G roup Revenue Acquisition Re ve nue ($ m ) increase by 11% Recurring Re ve nue ($ m ) $2 0 .7 m $1 8 .7 m $2 .5 $ 0.6 $ 1 7.0 m $ 1 8 .2 $ 18 .1 * Ca lculation is ba se d on m ove m e nt in ASX All Ords Inde x 2011 Restating 2011 2012 revenue allow ing for estim at
Slide 6: HY Operating revenue - change
HY Operating revenue - change ¾ Operating revenue up 11% to $20.7m +$1.40m +28.7 - $0.3m +$20.7m - 5.0% +11.0% +$0.45m +5.4% +$0.45m +9.7% $18.7m YTD Private CF&FS Super Other YTD 2010/11 Clients 2011/12 Trusted since 1888 6
Slide 7: Operating revenue - composition
Operating revenue - composition Investment Income & Other Superannuation Corporate Fiduciary & Financial Services Private Clients $20.7m 2% $ 18.6m $ 18.7m $ 18.1m 4% 6% 6% $ 16.9m 30% $ 15.8m 5% 5% 19% 26% 25% 17% 24% $ 11.6m 7% 18% 50% 42% 47% 45% 47% 46% 51% 31% 25% 25% 25% 25% 22% 24% 2006 2007
Slide 8: HY Expenses
HY Expenses ¾ Operating expenses increased 14.9% $15.7m $13.7m $12.0m $12.0m $11.6m $10.6m $9.0m 2006 2007 2008 2009 2010 2011 2012 Trusted since 1888 8
Slide 9: HY Expense composition
HY Expense composition HY on HY, Group Expenses have increased by 14.9% $15.7m $1.2 $0.2 $13.7m $0.4 $0.4 Recurring $14.3 expenses Part Period Expenses - New increase by Businesses Acquired $12.9 Non-Recurring / Early Timing 10.8% Expenses ($m) Recurring Expenses ($m) 2011 2012 Trusted since 1888 9
Slide 10: HY Operating margin
HY Operating margin Operating Profit (Pre tax) ($m) Operating Margin (%) (Not adjusted for non-recurring expenses) 37.8% 4 0 .0 % 8 .0 33.6% 34.3% 3 0 .0 % 6 .0 7.0 26.8% 28.7% 24.3% 6.1 23.1% 5.2 2 0 .0 % 4 .0 5.0 5.0 4.9 2 .0 2.6 1 0 .0 % 0 .0 0 .0 % 2006 2007 2008 2009 2010 2011 2012 Trusted sinc
Slide 11: HY Reported Earnings per Share
HY Reported Earnings per Share ¾ Reported Earnings per Share up 2.81% to 45.08¢ per share Earnings Per Share 64.48 Weighted average shares on issue ('000) 9,000 50.86 47.35 8,589 44.23 43.85 45.08 8,441 8,291 26.83 8,000 8,085 7,880 7,710 7,089 7,000 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008
Slide 12: Returns to shareholders
Returns to shareholders ¾ Full year, fully franked dividend ¾ Reflecting a current yield of approximately 6.7% before franking credits. (using 2011 Final and 2012 Interim Dividends. EQT share price of $13.40) Final (cps) Interim (cps) 110 110 110 100 60 60 60 75 50 50 45 40 30 50 50 50 50 40 30 20 2
Slide 13: Sustained shareholder return
Sustained shareholder return 800 EQT Total Shareholder Return ¾ Assumes all dividends are reinvested 1 July 2003 to 700 31 December 2011 600 EQT Total Shareholder Return + 281.9% S&P/ASX 200 Accum. Index + 93.4% 500 400 300 Base (100) taken at 1 July 2003 200 100 S&P/ASX 200 Accumulation Index 0 3 3
Slide 14: Business units – operations & performance
Business units – operations & performance 31 Dec 2011 31 Dec 2011 Target market / Business unit Key services Revenue,vs FUM/FUA,vs channel 31 Dec 2010 31 Dec 2010 Private Clients ¾ Trusts & Estates ¾ Private clients $5.2m $1,392m ¾ Philanthropy ¾ Business to business +9.8% +2.8% ¾ Wealth Management
Slide 15: Business unit overview - Private Clients
Business unit overview - Private Clients Operating revenue up 9.8% to $5.2m FUM/FUA at 31 D ecember 2011 up 2.8% to $1,392m 1,407 1,479 1,392 5.2 1,295 1,354 4.9 4.6 4.7 1,260 4.3 4.0 1,091 2.9 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 • Continuing growth in Wealth Manage
Slide 16: Business unit overview – CF&FS
Business unit overview – CF&FS Operating revenue up 5.4% to $8.8m FUM/FUA at 31 December 2011 up 2.8% to $18,914m 18,914 9.3 8.8 18,403 8.6 8.3 16,929 7.4 7.8 15,795 13,955 5.9 12,488 8,645 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 • Continuing positive net inflows – stil
Slide 17: Business unit overview - Superannuation
Business unit overview - Superannuation Operating revenue up 28.7% to $6.3m FUM at 31 December 2011 down 3.0% to $912m 940 912 6.3 4.9 630 622 4.4 4.1 547 3.5 375 434 2.0 2.6 2006 2007 2008 2009 2010 2011 2012 2006 2007 2008 2009 2010 2011 2012 • Customer Service Centre established – improves effici
Slide 18: Summary – The Environment
Summary The Environment ¾ Demographic factors remain a positive for ‘traditional’ trustee business activities. ¾ Overall growth in financial services industry via mandated flows, increased saving rate (and potentially increased SGC to come), creates a positive environment for corporate business line
Slide 19: Summary – The Business
Summary The Business ¾ Focus on maximising efficiency and rationalising systems and processes – objectives are to streamline business flow and IT platforms, and enhance ability to grow business activity at lower marginal cost. ¾ Restructure individual or personal client facing business units – objec
Slide 20: Equity Trustees Limited ABN 46 004 031 298, Australian Financial Services Licence No 240975
Equity Trustees Limited ABN 46 004 031 298, Australian Financial Services Licence No 240975. This document was prepared by Equity Trustees 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 iss