TRANSFORMATION 2015TRANSFORMATION 2015Presented by
Geoff Lloyd CEO and Managing Director Roger Burrows Chief Financial Officer
25 June 2012
Perpetual Limited ABN 86 000 431 827
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IMPORTANT INFORMATION
The information in this presentation is general background information about the Perpetual Group and its activities current as at 25 June2012. It is in summary form and is not necessarily complete. The information in this presentation is not intended to be relied upon as advice0 s su a y o a d s o ecessa y co p e e e o a o s p ese a o s o e ded o be e ed upo as ad ceto investors or potential investors and does not take into account your financial objectives, situation or needs. Investors should consult withtheir own legal, tax, business and/or financial advisors in connection with any investment decision.
No representation or warranty is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other informationcontained in the presentation (any of which may change without notice). To the maximum extent permitted by law, the Perpetual Group, itsdirectors, officers, employees, agents and contractors and any other person disclaim all liability and responsibility (including without limitationany liability arising from fault or negligence) for any direct or indirect loss or damage which may be suffered through use or reliance onanything contained in or omitted from this presentation. This presentation contains forward looking statements. These forward lookingstatements should not be relied upon as a representation or warranty express or implied as to future matters Prospective financialstatements should not be relied upon as a representation or warranty, express or implied, as to future matters. Prospective financialinformation has been based on current expectations about future events and is, however, subject to risks, uncertainties, contingencies andassumptions that could cause actual results to differ materially from the expectations described in such prospective financial information.
All references to dollars, cents or $ in this presentation are to Australian currency, unless otherwise stated. All references to Statutory NPAT,UPAT etc. are in relation to Perpetual Limited ordinary shareholders.
Note:1H12A refers to the financial reporting period for the six months ended 31 December 20112H12G refers to guidance for the financial reporting period for the six months ending 30 June 20122H12G refers to guidance for the financial reporting period for the six months ending 30 June 2012FY12G refers to guidance for the financial reporting period for the 12 months ending 30 June 20121H13G refers to guidance for the financial reporting period for the six months ending 31 December 2012, with similar abbreviations for
guidance in future periods
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TRANSFORMATION 2015
• Competitive businesses
• One Perpetual
• Client & expertise focused
• Distribution excellence
• Repeatable models
• Selective acquisitions• Leaner• More productive
•With partners
q• Simpler
• Less duplication
• Fewer businesses
~$50M PRE-TAX COST REDUCTION IN FY15
~300 FTE REDUCTION AND FURTHER ~280 FROM PLMS
WE ARE ANNOUNCING THE DECISION TO EXIT AND ARE WELL-ADVANCED IN SALE PROCESS FOR PERPETUAL LENDERS MORTGAGE SERVICES (PLMS)
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WHAT WE’VE DONE IN THE LAST TWELVE MONTHS
• Sold non-core businesses: smartsuper and 3rd party CT registry
• Appointed Wellington Management and closed Dublin
• Commenced process to outsource IT and progressing with process to outsource Perpetual Private platform (ICE^)
• Created a more focused, high capability distribution team
• Delivering on extension growth initiatives (e.g. alternatives)
4 ^ICE – Improving the Client Experience
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WE HAVE BECOME UNNECESSARILY COMPLICATED
• 11 distinct businesses including non core businesses (e g PLMS)• 11 distinct businesses including non-core businesses (e.g. PLMS)
• Multiple investment teams with overlapping accountabilities across Perpetual Investments and Perpetual PrivatePerpetual Investments and Perpetual Private
• >400 inter-funding structures and registered schemes
• >3,000 IT applications, >300 servers
• Significant amounts of duplication (e g Finance Risk HR)Significant amounts of duplication (e.g. Finance, Risk, HR)
• Expansion of non-core capabilities (e.g. IT development, marketing production), products (e.g. quant, direct property), geographiesproduction), products (e.g. quant, direct property), geographies (e.g. Dublin), and services (e.g. smartsuper)
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OUR FUTURE
AUSTRALIA’S LARGEST INDEPENDENT
ONE PERPETUAL
WEALTH MANAGER OF CHOICE
SPECIALISED ASSET MANAGEMENT
PERSONAL ADVISORY TO
TARGETED HIGH NET WORTH SEGMENTS
REFOCUSED CORPORATE FIDUCIARY SERVICES
FOUNDATIONS
WORTH SEGMENTS SERVICES
• Heritage of 125 years • Leading client advocacy• Heritage of 125 years• Perpetual brand• Independence
• Leading client advocacy• Proven investment process• Depth of money management
talent• Fiduciary culture – client focus• Multi-generational clients
talent• Leading long-term investment
performance
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LARGE INDEPENDENT BOUTIQUE
INDEPENDENCE ADVICE ADVOCACY INVESTMENT INDEPENDENCE ADVICE, ADVOCACY AND SCALE
INVESTMENT PERFORMANCE AND SCALE
NOT A BANK NOT A LIFE 30% NET PROMOTER LEADING PERFORMANCE
MAJOR ACTIVETOTAL
FUNDS UNDERHIGH NETAPPROX.
FUNDS UNDER
NOT A BANK, NOT A LIFE COMPANY
+30% NET PROMOTER SCORESM (1)
LEADING PERFORMANCE JUDGED BY ADVISERS (2)
BlackRock 38PIMCO 28Schroders 25
MAJOR ACTIVE ASSET MANAGER (3)
FUNDS UNDER MANAGEMENT ($B)
Morgan Stanley >10JBWere >10RBS Morgans 5 10
HIGH NET WORTH ADVISER
FUNDS UNDER ADVICE ($B)
+ + Schroders 25Perpetual 23BNY Mellon 23Tyndall 22Perennial 20A t 17
RBS Morgans 5-10Perpetual 5-10Shadforths 5-10Macquarie 5-10Ord Minnett 5-10WHK 5
+ +
Antares 17AllianceBernstein 17
WHK <5UBS <5
7(1) For adviser HNW clients; Net Promoter is a
registered service mark of Bain & CompanySource: Rainmaker (31 Dec 2011; self-reported); Perpetual
(2) Best overall performance in Australian equities as rated by surveyed advisers on a 5-point scale
(3) Excludes domestic banks & predominantly passive managers (Australian managed assets)Source: Wealth Insights (2011); Rainmaker (Sep 2011)
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TRANSFORMATION 2015
• Competitive businesses
• One Perpetual
• Client & expertise focused
Co pe e bus esses
• Distribution excellence
• Repeatable modelsClient & expertise focused
• More productive
•With partners
• Selective acquisitions• Leaner
• Simpler
• Less duplicationLess duplication
• Fewer businesses
REPOSITIONING COST BASE AND FOCUS TO GROW PROFITABLY IN A CHANGING MARKET
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TRANSFORMATION 2015 ACTION PLANOUTCOMES 2H131H13 FY14
Reduce central cost (HR, Finance Risk Marketing)
Improve adviser productivity in PP
Reduce property footprint (stage 2)Finance, Risk, Marketing)
Simplify structure, fewer managers and wider spans
Introduce new leadership team and transformation office
in PP Reduce property footprint
(stage 1) Simplify core processes (for
example group functions)
(stage 2) Simplify investment
middle/back office Reduce entities and inter-
funding structuresand transformation office Sell PLMS
example group functions) funding structures
Outsource IT infrastructure and applications (stage 1)
Sign IT outsourcing agreement
Simplify IT applications and outsourcing (stages 2 and 3)and applications (stage 1)
Outsource PP platform (ICE)
Refocus PI distribution
agreement Realign advice model with
more efficient support (PP) Consolidate PI/PP investment
teams (>$30B FUMA)
outsourcing (stages 2 and 3) Introduce tiered advice and
service model in PP
teams (>$30B FUMA)
Continue execution of growth extensions (e.g. native title life risk pure
Define transformational growth initiatives in PI/PP
Тransformational growth initiatives underway (2014+)
native title, life risk, pure equity alpha, and Wellington Management)
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FUMA – Funds under management and advicePP – Perpetual PrivatePI – Perpetual InvestmentsCT – Corporate Trust
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SIGNIFICANT TRANSFORMATION BENEFITS
IMPACT ON NORMALISED FY12G COST BASE
Corporatesupport
$275-282MApprox. %reduction
Approx. %reduction
Forecast normalised FY12G $275-282M
Operations(core)
Managementsupport
Operations (non-core)
28-30%28-30%Forecast normalised FY12G cost base (excl. PLMS)
$275 282M
Forecast Transformation t t d ti
~$50M
Sales
Commercialsupport
( )
10-12%10-12%
pre-tax cost reduction
% reduction in normalised FY12 cost base
~18%
Support/strategyCore businessManufacturing
FY12 cost base
ANNUALISED PRE-TAX RUN-RATE COST REDUCTION AT PERIOD END:
1H13G 2H13G 2H14G1H14G
$7-10M $25-27M $50M$42-45M
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SMALLER LEADERSHIP TEAM
CEO & Managing DirectorGeoff Lloyd
GM Marketing and CommunicationsVi t i TGeoff Lloyd
GE P t l I t t GE T f ti Offi
Victoria Turner
GE Perpetual InvestmentsNew appointment (process started)Richard Brandweiner (acting)
GE Transformation OfficeGillian Larkins (starting Oct)Angus Benbow (acting)
Chief Financial OfficerRoger Burrows
GE Perpetual PrivateMark Smith (starting December)Nick Langton (acting)
GE People and CultureRebecca Nash (starting August)Paul Chasemore (acting)
GE OperationsRichard Vahtrick (until Dec)
GE Corporate TrustChris Green
11 DIRECT REPORTS DOWN TO 6 POST TRANSFORMATION
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DEDICATED TRANSFORMATION OFFICE REPORTING TO CEO
EXECUTIVE COMMITTEE
CEOOverall program leadership
Group ExecutivesGroup ExecutivesGroup Executives Group Executive
Transformation OfficeGroup Executivesp
Accountability for program delivery
Group ExecutivesGroup ExecutivesBU initiative leadsGroup ExecutivesGroup ExecutivesCross-BU initiative leads
Group ExecutivesGroup ExecutivesGovernance, tracking, coordination and support
• Perpetual Private blueprint
• Perpetual Investments ‘fit for growth’
• Operating model simplification
• Sourcing program
• Business simplification
• Design and intent
• Finance, risk and tracking
• People, culture and comms
Examples:
12 Transformation roles (will phase out over program life)
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STRONG UNDERLYING MARKET GROWTH
PERPETUAL INVESTMENTS
DESPITE HEADWINDS
MARKET CONDITIONS CONTINUED UNDERLYING MARKET CONDITIONS CONTINUED UNDERLYING MARKET GROWTH
• >200 equity funds in the market $
Assets under management
• Shift in investment risk profile and style in uncertain markets post GFC 3
$4T
Wealth mgmtGFC
• Industry consolidation across wealth value chain impacting 2
3 Wealth mgmt forecast to grow
~7-8% p.a., driven by
superannuationmargins
• Regulatory and technological changes impacting portfolio
1
superannuation
Overseas investorsTotal net assets*
changes impacting portfolio construction
0
RetailOverseas investors
Wholesale and other
13 *Net assets excludes wholesale assets double-counted in retail and unitised wholesale assetsSource: Plan for Life (2011) QDS Investment Channels Tables - Table A4; ‘The Growth Grid 2012’ (KPMG)
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INVESTMENT PERFORMANCE DRIVING INFLOWS
PERPETUAL INVESTMENTS
UNRIVALLED PERFORMANCE… …TOP QUARTILE INFLOWS
$6B
Active inflows by asset manager^
UNRIVALLED PERFORMANCE… …TOP QUARTILE INFLOWS
>90% FUM IN TOP 2 QUARTILES
$6B
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Perpetual a leading player, with $1.5B inflows into active strategies in 2011^
First0 20 40 60 80 100%
IndependentAligned
Perpetual
0First
quartile0
Perpetual funds performance(weighted by FUM)
20 40 60 80 100%
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^Total active asset inflows over 12 months to 31 Dec 2011, including Alternatives, Australian shares, Fixed income, Fixed rate, International shares and MortgagesNote: Mezzanine includes multi-manager and dealer group directed funds into model portfoliosSource: Mercer Quarterly Wholesale Survey (May 2012); Plan for Life; ‘The Growth Grid 2012’ (KPMG)
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OUR DIFFERENTIATED APPROACH
PERPETUAL PRIVATE
TARGET SEGMENTS BY SOURCE OF WEALTHTARGET SEGMENTS BY SOURCE OF WEALTHBUSINESSOWNERS
ESTABLISHEDWEALTHY
PROFESSIONALS
HNW investable assets (% HNW):
Growth
$150-200B(30%)
$120-170B(25%)
$100-150B(20%)
Growth (# HNW individuals): 7-8% p.a. 8-11% p.a. 7-8% p.a.
Perpetual’s focus: • Motor dealers • Pre-retirees • Medical p• Wholesalers
• Franchisors
and retirees
• Not-for-profit
R t d
specialists
• Barristers
• Represented persons
15 Source: Datamonitor (Feb 2012)
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POSITIONED TO PROVIDE THE BROADEST RANGE OF
PERPETUAL PRIVATE
ADVICE SERVICES IN MARKET
TARGET SEGMENTS BY SOURCE OF WEALTHTARGET SEGMENTS BY SOURCE OF WEALTHBUSINESSOWNERS
ESTABLISHEDWEALTHY
PROFESSIONALS
• Business planning• Tax and accounting• Succession planning
W lth d i
• Wealth advice• Gearing, tax and accounting• Insurance/cash management
• Wealth advice• Advice through lifestages• Philanthropy, fiduciary and not-
for-profit advice
Personal Advisory
Business Advisory
• Wealth advice for-profit advice• Insurance/cash management
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Fiduciary
Philanthropy
N t f fit Ad i
Grosvenor acquisitionFordham
i iti Not-for-profit Adviceacquisition
ACQUISITIONS HAVE DELIVERED INCREASED CAPABILITY AND SCALE
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REFOCUS ON CORPORATE FIDUCIARY SERVICES
CORPORATE TRUST
MARKET LEADING BUSINESS PROFITABLE AND STABLE
$300B
Spot FUA*
80%
EBITDA margin (line)• Leading market share, leading
capability and longstanding client relationships
200 60
relationships
• Annuity style revenue with low capital requirement
100 40
• Opportunities to further improve core profitability
0 20
• Growth expected in securitisation issuance
SOLD 3RD PARTY CT REGISTRY, ANNOUNCING DECISION TO SELL PLMS AND CONTINUING TO MANAGE COSTS FOR PRODUCTIVITY
17 *FUA = funds under administration at end of periodNote: EBITDA margins exclude PLMS and shared services allocations
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STRONG FOUNDATIONS FOR GROWTH
PERPETUAL INVESTMENTS
• First quartile inflows in the market (~$1.5B in 2011)• >$400M written in bespoke portfolios for PP clients• Single approach to asset allocation across the Group• Pure value equities included in PP model portfolios• ASF and DIF launched on Colonial First State FirstChoice platformp• Wellington Management relationship expanded to global fixed income• First off-shore client in global resources• Extension of 'Pure' range of benchmark independent strategies^
PERPETUAL PRIVATE
• Established native title trusts capability/mandates (~$40M committed)• New life risk business up 72% to 31 March 2012
• Extension of Pure range of benchmark independent strategies^
• Alliance partner new leads up 110% to 31 March 2012• Advice fees up 36% to 31 March 2012
C ti d l d i iti ti (t t 15 f 17 RMBSCORPORATE TRUST
• Continued leader in securitisation (trustee on 15 of 17 RMBS transactions FY12 YTD)
• Mandated on 4 of 5 covered bond programs in market to date
18 ^Pure Equity Alpha fundNote: ASF = Australian Share Fund; DIF = Diversified Income Fund; RMBS = Residential Mortgage Backed Securities
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FIX TO GROW
3 YEAR TRANSFORMATION
• Launch Transformation 2015: Simplify, Refocus, Grow• Announcing decision to sell PLMS (~280 FTEs)TRANSFORMATION
INDEPENDENT
g ( )• Repositioning cost base and focus to grow profitably in a changing market
• Trusted through generations• Independence scale capability leading client advocacy and unrivalledLARGE BOUTIQUE
$50M PRE-TAX COST • Transformation to deliver $50M pre-tax cost reduction in FY15 (18% cost-base*)
• Independence, scale, capability, leading client advocacy and unrivalled investment performance
$50M PRE TAX COST REDUCTION FY15
• $7M pre tax annualised net cost reduction from Dublin exit
• $70M investment cost on a P&L basis (~$50M cash basis)• Reduction of ~300 FTEs
PROGRESS ALREADY MADE
• $7M pre-tax annualised net cost reduction from Dublin exit• Launched Super Wrap in PP, Project ICE on track• Directors elected to reduce fees paid to non-executive board members
RIGHT TEAMTO DELIVER
• New leadership team• Establishment of dedicated Transformation Office• Experience and expertise to drive further core business growth
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*Excluding PLMSPP – Perpetual PrivatePI – Perpetual InvestmentsCT – Corporate Trust
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OPERATING ENVIRONMENT CONTINUES TO BE CHALLENGING
ALL ORDINARIESFY10 FY11 11 months to May 2012
1H10 1H11 1H122H10 2H11 5mths to 31 May 2012
ALL ORDINARIES• As at 31 May 2012
- Funds under Management
4,700
4,900
5,100g
$22.9B (1H12: $22.9B)- Funds under Advice $8.1B
(1H12: $8.1B)
4,300
4,500 - Funds under Administration $215.1B (1H12: $205.7B)
• A 1% movement in the All
3,700
3,900
4,100
Spot close (@ end of each day) All Ords 1st Half Avg All Ords
2nd Half Avg All Ords FY Avg All Ords
• A 1% movement in the All Ordinaries index changes annualised revenue by approximately $1 5 2 0M3, 00
Jul 0
9
Aug
09Se
p 09
Oct
09
Nov
09
Dec
09
Jan
10Fe
b 10
Mar
10
Apr 1
0M
ay 1
0Ju
n 10
Jul 1
0
Aug
10Se
p 10
Oct
10
Nov
10
Dec
10
Jan
11Fe
b 11
Mar
11
Apr 1
1M
ay 1
1
Jun
11Ju
l 11
Aug
11
Sep
11O
ct 1
1
Nov
11
Dec
11
Jan
12
Feb
12M
ar 1
2Ap
r 12
May
12 approximately $1.5-2.0M
Sep
09
Dec
09
Mar
10
Jun
10
Sep
10
Dec
10
Mar
11
Jun
11
Sep
11
Dec
11
Mar
11
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UPDATE ON FUNDS UNDER MANAGEMENT
• Top quartile inflows31 Mar Net Other* 31 May p q
• Improving trend in net flows
• Average FUM for 5 months
2012$B
flows$B $B
y2012$B
Institutional 6.8 0.2 (0.3) 6.7Average FUM for 5 months ended 31 May 2012 was $23.5B
I A il/M
Intermediary
Retail
11.7
5.2
(0.2)
(0.1)
(0.3)
(0.1)
11.2
5.0All channels 23.7 (0.1) (0.7) 22.9
• In April/May- ~$200M net inflow into
Institutional Cash
All channels 23.7 (0.1) (0.7) 22.9
Australian equities 16.7 (0.3) (0.7) 15.7
- ~$200M net outflow from Industrial Share Fund from the retail/intermediary channels
Global equities 1.0 - - 1.0Equities
Cash and fixed interest
17.7
4.7
(0.3)
0.2
(0.7)
0.1
16.7
5.0- ~$100M net outflow from
retail channel across various equity strategies
Other 1.3 - (0.1) 1.2All asset classes 23.7 (0.1) (0.7) 22.9
21 * Other includes reinvestments, distributions, income and change in market valueNote: In addition, the Group also manages around $100M under a Global Resources sub-advisory mandate
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UPDATE ON AUSTRALIAN EQUITIES BY STRATEGY
• Changing the mix between institutional
Retail and intermediary
Institutional Total between institutional and retail/intermediary
• Capacity for future th i FUM i
intermediary$B $B $B
Ordinaries 2.3 3.4 5.7Industrials 5.7 - 5.7 growth in FUM in core
and satellite funds
• $2.8B transfer from
Industrials 5.7 5.7Concentrated 0.9 0.8 1.7Smaller companies 0.6 0.2 0.8Oth 1 4 0 4 1 8 Concentrated to
Ordinaries strategyOther 1.4 0.4 1.8Total Australian equities
10.9 4.8 15.7
31 MAY 2012IndustrialsOrdinaries
ConcentratedInstitutional
Retail and Intermediary
30 JUNE 2011
ConcentratedSmaller CompaniesOther
Institutional
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NET OUTFLOWS SHOWING SIGNS OF IMPROVEMENT
APPLICATIONS AND REDEMPTIONS BY CHANNEL
• Net flow trend improving
REDEMPTIONS BY CHANNEL
$2B
• Retail mortgage funds closed and returning0
1
and returning capital (~$750M remain)
• Reinvigoration
-1
• Reinvigoration of sales and distribution-3
-2
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TRANSFORMATION 2015: TARGET $50M PRE-TAX $COST REDUCTION BY FY15PRE-TAX P&L IMPACT
$25M
0
-25
-50
ANNUALISED PRE-TAX RUN-RATE COST REDUCTION AT PERIOD END: $7-10M $25-27M $50M$42-45M $50M $50M
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STRONG RETURN ON INVESTMENT FROM TRANSFORMATION PROGRAM
TRANSFORMATION PRE-TAX TRANSFORMATION TRANSFORMATION PRE-TAX COST REDUCTION FY15
PRE-TAX TRANSFORMATION INVESTMENT(P&L BASIS)
TRANSFORMATION FTE REDUCTION
( )RedundancyIT assetsPropertyTransformationcosts
PerpetualPrivateproductivityOutsourcing
PerpetualPrivateproductivityOutsourcing costsOutsourcing
Lean,efficientoperatingmodel
Ou sou c gLean, efficientoperatingmodelReducedproperty
TOTAL: ~$50M TOTAL: ~$70MTOTAL: ~300
propertyfootprintOther
PLUS ~280 FROM PLMS Comprising cash investment of ~$50M and non-cash
write-down of ~$20M
25 Note: Baseline ~1,380 FTEs as at end-May 2012; ‘Outsourcing’ includes ~30 FTEs already announced as part of project ICE
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$50M PRE-TAX COST REDUCTION REPRESENTS 18% OF NORMALISED COST BASE
FY12G
Total e penses (e cl ding $305 310M
• Including $7M of net cost savings ($4M realised in FY12) from closing Dublin increases reduction
Total expenses (excluding interest expense)
$305-310M
Less PLMS expenses ($28-30M)
in normalised FY12G cost base to ~21%
• FY12G Equity Remuneration p ($ )
Forecast normalised FY12 cost base (excluding PLMS)
$275-282Mexpense is lower than usual
• Project ICE expected to add $6M before tax to FY13G cost base (as
Forecast Transformation Benefits ~$50M
% reduction in normalised FY12 ~18%
(previously announced)
• PLMS sale expected to result in ~$3M of stranded costs
cost base$
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FY12 GUIDANCE*
1H12A FY12G
$ $Underlying profit after tax (UPAT) $34.7M $63-67M
Less significant items (after tax):
Transformation 2015
Restructure costs - ($12-14M)
IT asset impairments
Other restructure costs(1)
Oth it (2)
-
($10.2M)
($1 6M)
($13-14M)
($11M)
($2M)Other items(2) ($1.6M) ($2M)
Net profit after tax (NPAT) $22.9M $22-29M
Note: Previously advised Foreign Currency Translation Reserve charge to P&L related to Dublin closure of ~$5M in 2H12 is now expected to occur in FY13
Diluted EPS (cents per share) 53.8 52-69
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*The guidance assumes no other impairments(1) Other restructure costs include Dublin closure, retail distribution and marketing(2) Includes loss on disposal and impairment of investments and gain on sale of businesses
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DIVIDEND POLICY
• Policy is to pay 80 100% of statutory NPAT on an annualised basis• Policy is to pay 80-100% of statutory NPAT on an annualised basis
• Objective to maximise the franked component of dividends(1)
• Forecast FY12 EPS on NPAT is 52 cps – 69 cps
• FY12 interim dividend of 50 cps fully franked paid 29 March 2012
• FY12 final dividend expected to be outside the policy range reflecting:
– 2H12 significant items include ~$14M of non-cash impairment/writedowns;– The strength of the balance sheet; and– The Board’s confidence in the future of the business
• FY12 final dividend unlikely to be greater than 40 cents per share• FY12 final dividend unlikely to be greater than 40 cents per share
28 (1) Dependent upon retained earnings in parent company
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FINANCIALS SUMMARY
$50M PRE-TAX TRANSFORMATION
• $50M pre-tax cost reduction in FY15 - ~18% normalised FY12 cost-base- Perpetual Private productivity; IT outsourcing; and lean effective operating model
BENEFIT
~$50M CASH
Perpetual Private productivity; IT outsourcing; and lean, effective operating model
• About half run-rate benefits realised by June 2013
• ~$70M pre-tax P&L impact over two years$INVESTMENT
~580 FTE
• ~$50M cash investment and ~$20M non-cash (impairment/write-downs)- $36-40M (pre-tax) expected to be booked as a significant item in FY12
• ~580 FTE reduction by end FY13~580 FTE REDUCTION (~40% OF TOTAL)
y- PLMS divestment ~280 FTEs- Outsourcing ~155 FTEs (including ~30 FTEs already announced as part of ICE)- Lean, effective operating model reduction ~95 FTEs- Perpetual Private productivity ~50 FTEs
$63-67M UPAT FY12 GUIDANCE
• FY12 UPAT $63-67M
• FY12 NPAT $22-29M
DIVIDEND POLICY • FY12 interim dividend of 50 cps fully franked paid 29 March 2012
• FY12 final dividend expected to be outside policy range
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TRANSFORMATION 2015
• Competitive businesses
• One Perpetual
• Client & expertise focused
Co pe e bus esses
• Distribution excellence
• Repeatable modelsClient & expertise focused
• More productive
•With partners
• Selective acquisitions• Leaner
• Simpler
• Less duplicationLess duplication
• Fewer businesses
ANNUALISED PRE-TAX RUN-RATE COST REDUCTION AT PERIOD END:
1H13G 2H13G 2H14G1H14G
$7-10M $25-27M $50M$42-45M
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