INVESTOR PRESENTATION RESULTS FOR YEAR ENDED 30 JUNE 2019 Mick - PowerPoint PPT Presentation

INVESTOR PRESENTATION RESULTS FOR YEAR ENDED 30 JUNE 2019 Mick O’Brien, Managing Director Philip Gentry, Chief Financial Officer and Chief Operating Officer 21 AUGUST 2019

AGENDA 1 2019 IN REVIEW 2 FINANCIALS 3 STRATEGY UPDATE AND OUTLOOK 4 QUESTIONS 2

2019 IN REVIEW

STRONG FY19 AND WELL POSITIONED FOR CONTINUED GROWTH • Continuing strong performance in changing environment • Consistent underlying organic growth • Poised for new growth phase, with pipeline of opportunities under development • Investing now to support this growth • Delivering for all stakeholders 4

CONTINUING STRONG PERFORMANCE IN CHANGING ENVIRONMENT • Net profit up 12.7% to $22.2m • Revenue up 4.6% • Disciplined expense management – increase 2.4% • Basic earnings per share up 11.7% to 108.6 cents • Total dividend for the year 90 cents, up 9.8% • All areas of business experiencing good growth 5

CONSISTENT IMPROVEMENT IN PERFORMANCE $31.3M $92.5M TOTAL REVENUE NPBT 95 35 92.5 31.3 28.7 30 88.5 90 25 22.3 18.9 83.7 85 20 79.9 15 80 10 75 5 0 70 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 108.6 CENTS 90 CENTS EARNINGS PER SHARE DIVIDENDS 100 120 108.6 90.0 82.0 97.3 100 80 71.0 68.0 77.0 80 67.0 60 60 40 40 20 20 - 0 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 6

FUMAS ON GROWTH TRAJECTORY CTS FUS* TWS FUMAS** $b $b 75 20 • FUMAS down 71.1 slightly to $84.9b, 70 16.8 68.1 principally reflecting Aon*** 15.1 one-off client 15 65 changes in 1H19 60.3 • Good growth in 60 11.1 2H19 and trending 10.1 56.8 10 upwards 55 50 5 45 40 - FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 7 * FUS: Funds under supervision Note: Excludes UK/Ireland client FUS **FUMAS: Funds under management, administration, advice and supervision

CONSISTENT ORGANIC GROWTH SOUND PERFORMANCES FROM CORE BUSINESSES TWS AND CTS TWS NPBT CTS NPBT $m $m 20 14 18.1 16.4 12.9 14.2 15 13 12.4 12.5 12.1 10 12 11.3 5 11 - 10 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Acquisitions and partnerships delivering: • Equity Trustees (UK and Europe Ltd) expanding footprint • Zurich Australian Superannuation Pty Ltd fully integrated and on track 8

ORGANIC GROWTH CONTINUING • EQT strategy to become Australia’s leading trustee • Changing industry environment continues to support independent trustee model – ~ 99% of all assets in Australia’s superannuation system are overseen by an “internal” trustee - as a truly independent provider, EQT is well placed to benefit from any shift from an in-house to outsourced model – Royal Commission findings add further support – Increasing interest in our independent, specialist trustee proposition • Organic growth will also come from – Entering new market segments – Improving internal cross-sell – Winning new contracts in the UK/Ireland market 9

POISED FOR CONTINUING GROWTH • Investing heavily in capability and technology to support further growth – Key board and management appointments – Targeted technology investment – Continuing emphasis on governance and risk management to underpin performance • Organic growth supplemented with non-organic initiatives – Selective M&A – Zurich Australian Superannuation Pty Ltd – Strong balance sheet – Flexibility to fund opportunities – Expanded markets - Ireland 10

DELIVERING FOR ALL STAKEHOLDERS MEASUREMENT : T1 T2 T1 Net promoter score Net loyalty score IMPROVING LIFTING CLIENT EMPLOYEE T2 SATISFACTION ENGAGEMENT Engaged and enabled staff T3 T3 T4 Earnings per share growth and FUMAS GROWING DEEPENING growth SHAREHOLDER COMMUNITY T4 VALUE IMPACT Granting and volunteering 11

T1 – IMPROVING CLIENT SATISFACTION NET LOYALTY SCORE (NLS) NET PROMOTER SCORE (NPS) • Digital strategy focused on 20 20 significantly improved client 15 15 experience 10 10 • Investment in business Financial 5 5 Services Average *** development, front- line capabilities and - - 2017 2018 2019 2017 2018 2019 enhanced client reporting (5) (5) (10) (10) 2017 2018 2019 2017 2018 2019 12 *Net Promoter score – net measure of clients willing to recommend EQT **Net Loyalty score – net measure of clients prepared to purchase another EQT product or service. *** Roy Morgan Advocacy report, Financial Institutions. Monthly report – February 2019 (http://www.roymorgan.com/findings/7918-banking-nps-201903290530)

T2 – LIFTING EMPLOYEE ENGAGEMENT EMPLOYEE ENGAGEMENT EMPLOYEE ENABLEMENT TRAINING 80 80 HP Norm (74)* HP Norm(73) FS Norm (69) FS Norm (67)** 60 COLLABORATION 60 40 40 2016 2017 2018 2019 2016 2017 2018 2019 WORK, STRUCTURE AND PROCESS * High Performing Norm ** Financial Services Norm 13

T3 – GROWING SHAREHOLDER VALUE DIVIDENDS EARNINGS PER SHARE Cents Cents 120 100 108.6 90.0 90 82.0 97.3 100 80 • Consistent lift in 71.0 68.0 70 77.0 earnings per share 80 60 and dividends 67.0 60 50 • Dividend payout 40 ratio of 82.9% 40 30 20 20 10 0 - FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 14

T4 – DEEPENING COMMUNITY IMPACT GRANTING CHARITABLE TRUSTS BY GRANT TYPE $m 130 • 124.3 Annual granting program to ~3,000 beneficiaries 110 45.5 • 450+ hours 85.4 87.2 volunteer leave 90 11.0 18.9 70 78.8 76.2 66.5 50 Jun-17 Jun-18 Jun-19 Granting from Granting from Ageing & Aged Care Animals & Environment testamentary and estates and trusts Children & Young People Medical Research & Health perpetual charitable trusts Other For Purpose Sector Capacity Building * This includes $78.8m from charitable trusts and $45.5m in one off payments directly from Estates and Trusts 15

FINANCIALS

STRONG FINANCIAL PERFORMANCE • Solid revenue growth YEAR ENDED 30 JUNE FY19 FY18 FY19 VS FY18 % • Driven by organic growth, strategic initiatives and markets  92.5 88.5 4.6 Total revenue ($m)  61.2 59.7 2.4 Expenses ($m) • Disciplined approach to expenses  31.3 28.7 9.1 Net Profit Before Tax (NPBT $m) • Increase in NPBT margin to  33.9 32.5 4.3 NPBT margin (%) 33.9%  31.8 32.4 (1.9) Effective Tax rate (%) • Solid increase in NPAT, EPS and  22.2 19.7 12.7 Net Profit After Tax (NPAT $m) dividend  108.61 97.27 11.7 Earnings Per Share (EPS) (cents)  Diluted EPS on NPAT (cents) 107.85 96.89 11.3  Dividends (cents per share) 90 82 9.8  8.1 7.7 5.4 Return on Equity (ROE) (% p.a.) 17

HALF ON HALF PERFORMANCE Slower 2H19 due to: YEAR ENDED 30 JUNE 2H19 1H19 2H18 1H18 Total revenue ($m) 46.2 46.3 45.3 43.2 • Full half impact of CTS client mandate losses Expenses ($m) 31.1 30.1 30.6 29.2 • TWS - PC seasonality and one Net profit before tax (NPBT $m) 15.1 16.2 14.7 14.0 offs ~ $1m combined adverse NPBT margin (%) 32.7 35.0 32.5 32.4 impact Net profit after tax (NPAT) and 11.0 11.2 10.0 9.6 non-controlling interests ($m) • Increasing investment in the business Dividends (cents per share) 46 44 42 40 18

SOLID UNDERLYING REVENUE GROWTH REVENUE $m 94 3.3 • 4.6% headline growth in 92 revenue 0.2 1.8 90 90.5 • 3.6% underlying organic (1.2) revenue growth (0.1) 88 88.5 • Market impact limited (on average) 92.5 86 84 82 80 FY18 OVRE UK Adjusted Client exit Equity market Organic FY19 Acquisition Acquisition Revenue FY18 and mandate impact on growth losses FUMAS* 19 *FUMAS: Funds under management, administration, advice and supervision

STRONG OPERATING CASH FLOW CASH FLOW • Pre-tax operating cash flow up 12.0% on pcp $m 100 35.5 • Consistent, high quality cash generation 90 • Cash principally used (13.5) 80 for debt reduction, tax payments and 70 dividends (8.0) (8.0) 60 60.7 • Negligible bad debts 54.4 (12.3) 50 40 Opening Balance Net cash flow Payment of Repayment of Investment in Income tax paid Closing Balance 30 Jun 2018 from operations dividends borrowings managed fund 30 Jun 2019 20

TWS HIGHLIGHTS $b CORE TRUSTEE SERVICES (FUMAS*) $b EMERGING MARKETS (FUMAS*) SUPERANNUATION TRUSTEE OFFICE 0.40 2.0 (FUS**) $b 1.8 0.35 9.0 1.6 0.30 8.0 1.4 7.0 0.25 1.2 6.0 0.20 1.0 5.0 0.8 0.15 4.0 0.6 3.0 0.10 0.4 2.0 0.05 0.2 1.0 - - - Indigenous Trusts Living Donors Compensation Estate Testamentary Perpetual FY16 FY17 FY18 FY19 Management Trusts Charitable Trusts Trusts FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 • Focus on high value, complex estates • • Two new Indigenous trusts - good Zurich Australian • 10 new perpetual charitable trusts and living growth and significant Superannuation donors opportunities increased FUS by $1b • 20 new advice clients • 10 new compensation trusts - 8% increase on prior period 21 *FUMAS: Funds under management, administration, advice and supervision **FUS: Funds under supervision