Perpetual Limited · ASX:PPT
Perpetual — Shareholder Meeting (October 2009)
19 slides from Perpetual's shareholder meeting presentation, Oct 22, 2009
Slide 1: 2009 Annual General Meeting
For personal use only 2009 Annual General Meeting The Westin Sydney 22 October 2009
Slide 2: Mr Robert Savage, Chairman
Mr Robert Savage Chairman For personal use only
Slide 3: Funds management industry in outflow for most of FY2009
Funds management industry in outflow for most of FY2009 For personal use only Total market quarterly flows since March 2004 $B 40 33.1 30 20 10 1.6 0 -10 (4.7) (13.6) -20 Mar-06 Mar-07 Mar-08 Sep-06 Dec-06 Sep-07 Dec-07 Jun-06 Jun-07 Mar-09 Jun-09 Jun-08 Sep 04 Dec-05 Mar-05 Dec-04 Sep-05 Sep-08 Dec
Slide 4: Securitisation market effectively closed
Securitisation market effectively closed For personal use only Australian RMBS issuance 16 14 RMBS by Australian Issuers $B 12 10 8 6 4 2 0 Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep Nov Jan Mar May Jul Sep 2006 2007 2008 2009 Source: Perpetual and Standard & Poor’s
Slide 5: Reasons for reduced revenues
Reasons for reduced revenues For personal use only Revenue $M 600 495.7 (84.1) 500 (20.2) 400 (16.3) 375.1 300 200 FY2008 Change in Change in Other FY2009 revenue market flows revenue conditions
Slide 6: Profit result
Profit result For personal use only 2009 2008 Change For year ended 30 June $M $M % Underlying profit before tax 98.2 193.6 (49) Underlying profit after tax 65.7 133.5 (51) Restructuring (8.1) - ~ Gain / (loss) on sale of investments (6.1) 21.1 ~ EMCF losses (13.8) (25.8) ~ Net profit after tax 37.7
Slide 7: EMCF has turned around
EMCF has turned around For personal use only 3 months to For year ended 30 June 2008 2009 Sept 2009* $M $M $M Realised losses (9.0) - - Mark-to-market losses (27.9) (27.4) - Hold to maturity gains - 7.7 7.0 Profit / (loss) before tax impact (36.9) (19.7) 7.0 Tax benefit / (expense) 11.1 5.9 (2.1) Pr
Slide 8: Strong expense management
Strong expense management For personal use only $M 320 5 (40) 4 302 300 280 6 277 260 240 220 200 FY2008 Depreciation Acquisitions Reduction in Operational FY2009 and cash errors amortisation expenses Cash expenses Non-cash expenses
Slide 9: Transitioning to dividend payout ratio of 80-100% of NPAT
Transitioning to dividend payout ratio of 80-100% of NPAT For personal use only Dividend % Dividend payout ratio NPAT 150 140 130 120 110 100 Dividend 90 payout range 80 70 60 50 FY2008 FY2009 FY2009 final interim final
Slide 10: FY2009 – 1st half vs 2nd half performance
FY2009 – 1st half vs 2nd half performance For personal use only 6 months to 6 months to 31 Dec 2008 30 Jun 2009 FY2009 $M $M $M Underlying Profit After Tax (UPAT) 41.6 24.1 65.7
Slide 11: Outlook
Outlook For personal use only 6 months to 31 Dec 2009 $M Underlying Profit After Tax (UPAT) (1) 30 - 40 Net Profit After Tax (NPAT) (2) 40 – 50 (1) Based on the equity markets averaging around their current levels. (2) Based on UPAT and EMCF gains in December 2009 quarter in line with September 2009
Slide 12: Mr David Deverall, Chief Executive Officer and Managing Director
Mr David Deverall For personal use only Chief Executive Officer and Managing Director
Slide 13: Perpetual has three operating businesses
Perpetual has three operating businesses For personal use only Perpetual Investments Superannuation Australian Global Income & Equities Equities Multi-sector & Investment Solutions Ð Funds under management $26.2B
Slide 14: Our brand positions us well
Our brand positions us well For personal use only Fund manager brand equity June 2009 (as judged by advisers) Perpetual 72% Competitor 1 66% Competitor 2 64% Competitor 3 50% Competitor 4 47% Competitor 5 44% Competitor 6 36% Competitor 7 33% Competitor 8 31% Competitor 9 26% Source: Wealth Insights
Slide 15: Perpetual has three operating businesses
Perpetual has three operating businesses For personal use only Perpetual Perpetual Perpetual Investments Private Corporate Wealth Trust Trust & Private Fund Clients Services Superannuation Australian Global Income & Equities Equities Multi-sector & Investment Solutions Mortgage Direct Services Ð Ð Ð
Slide 16: Our vision
Our vision For personal use only To be the leading provider of wealth management services to financially successful investors and their advisers and the leading corporate trustee Supplier of choice Product to financially Leading adviser to Leading corporate manufacturing successful high net worth tr
Slide 17: Ms Elizabeth Proust, Chairman – People and Remuneration Committee
Ms Elizabeth Proust For personal use only Chairman – People and Remuneration Committee
Slide 18: Short-term incentives and underlying profits are highly correlated
Short-term incentives and underlying profits (UPAT) are highly correlated For personal use only STI Index UPAT ($M) 2009 = 100 160 145.3 140 UPAT 133.5 300 STI 122.4 120 250 100 95.8 200 80 65.7 150 60 100 40 20 50 0 2005 2006 2007 2008 2009 Year
Slide 19: LTI formula – pay for performance
LTI formula – pay for performance For personal use only EPS target requires 10% 146.4 growth from grant date to 133.1 vest date 121 110 If target met at 3 year 100 testing point, LTI vests 100% Growth in EPS assuming 10% pa If target not met at 3 year testing point, they are Grant date = 100 r