Post on 18-Dec-2015
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Agenda
• Chairman’s Report
• Chief Executive’s Report
• Formal Resolutions
• General Business
• Questions
• Close of Meeting and Afternoon Tea
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Chairman’s Address
• Another excellent financial year
• Financial metrics
• Corporate Governance
• The Community
• Going Forward
5
Excellent year - financial metrics
• Net profit increased by 58% to 65.1m
• NPAT excluding EMVONA increased 84% to $18.3m
• Total shareholder return of 43%
• Fully franked dividends of 22 cents per share
• Special distribution of 8 cents per share
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Governance and Regulation
• Listing December 2003
• Good corporate governance
• ASX Principles
• ICT Governance
• Governance Framework
• Strong results within this framework
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Going Forward
• Significant change
• Increasing demands
• Well positioned
• Commitment of Board, management and staff
• Shareholder support
10
Agenda
• High level results - another strong year
• Business performance
• Financial performance
• Strategic direction
• IOOF’s future outlook
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Another strong year
Strong result, with focus on future sustainable growth
• Strong growth in cash earnings
• Operating efficiency improved to 68%
• Strong growth in all areas of FUMA
• Established the foundations for sustainable growth
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41% growth in FUMA
Funds growth driving earnings
Funds under Management and Administration ($bn) (“FUMA”)
41%
$2.6b $3.2b
$8.8b$10.5b
$3.0b
$5.4b
$2.9b
$22.4b
$12.1b
$10.3b
$3.9b
$11.8b
$15.9b
2000/01 2001/02 2002/03 2003/04 2004/05
Wholesale FUM
Retail FUMA
W/Sale FUM
Retail FUMA
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Retail Funds Management
Highlights
• 2005 ASSIRT/S&P Fund Manager of the Year (“FMOY”)
• IOOF / Perennial Capital Stable Trust– Conservative category (Aug 2005)
• Finalist in 2005 Morningstar FMOY awards
• IOOF / Perennial - Overall Fund Manager of the Year
• IOOF / Perennial - Multi-Sector
• IOOF / Perennial - Australian Equities
• Recommended rating by Morningstar
• IOOF MIMs Australian Equities
• Development of new platform offering
• Launch of Term Allocated Pension
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Perennial Investment Partners
Continued Momentum in FUM growth
Total FUM
Note:* IOOF’s retail FUM managed by Perennial, is excluded from IOOF’s FUMA consolidation.
$3.0b
$5.4b
$0.7b
$10.3b
$1.8b $1.9b$2.5b
$4.9b
$13.6b
$8.1b
2000 2001 2002 2003 2004 2005
Wholesale FUMIOOF retail FUM managed by Perennial*
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Financial Performance
• Strong growth in underlying earnings
• Significant contribution from Perennial
• Disciplined cost management has resulted in flat cost base
Cash Earnings
Delivering operating leverage
Year ending June FY05 FY04Change
(%)
Gross margin 98.2 87.9 12%
Non operating income 5.7 4.8 19%
Share of Net profits from PVM 5.1 2.2 Large
Operating Expenses (74.1) (76.1) -3%
Cash earnings 34.9 18.8 86%
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105% 109%
96%
80%
68%
2001 2002 2003 2004 2005 2006e
Financial Performance
Operating Efficiency
Cash operating expenses to Gross Profit
Note:Gross Profit is inclusive of other operating income and the Group’s share of PVM.* Excludes the impact of Benefit fund consolidation
Working towards 66% (AGAAP)69% (IFRS*)
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Setting IOOF’s strategic direction
IOOF’s Strategic Statement (Dec 2004)
Focused provider of best of breed solutions• Best of breed alpha generator
• Best practice solutions and service
• Commitment to depth, as well as breadth, of relationships
• Creator of value – not simply gatherer of assets
Delivering a rewarding experience to stakeholders
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Setting the strategic foundations
Foundations for sustainable growth
IOOF’s ‘brand DNA’• Aligning Mission, Values and Visual Identity
• Consistent framework for communication and decision making
Focus on developing and engaging talent• E-induction program / Code of conduct
• Established talent review and training processes
• Work flexibility provisions
• New remuneration policy
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Best of breed alpha generator
Broadening asset management capabilities• Non correlated asset classes
Foster Perennial’s high performing culture
Attract best of breed talent
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Best practice solutions and service
IPS Phase II• Provide an independent alternative
• Develop a platform to meet adviser’s business needs
Development of innovative investment solutions
Client service initiative• Listen to our clients
Understanding and improving our service delivery
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Commitment to relationships
Development of holistic adviser value proposition
Developing depth as well as breadth of relationships• Leverage off the value proposition of OutScope
Launch of new Winchcombe Carson dealership model• Enhancing dealer practices and value proposition
Increase IOOF’s relevance as a business partner
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Looking forward
Strong growth in areas of comparative advantage
Refining our value proposition in the platform space• Increasing our relevance to advisers
Decisions today, to position IOOF for tomorrow• Continually assess the relevance of our existing businesses
Building a business for long term sustainable growth
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IOOF Holdings Ltd - 2005 AGM
Resolution 2a - To re-elect Ian Blair to the Board
Votes %
FOR 15,993,594 78.27%
AGAINST 94,107 .46%
DISCRETIONARY* 4,347,075 21.27%
*The number of the Chairman’s discretionary proxy votes are 20.56%Note: These figures relate to the proxies lodged 48 hours prior to the meeting
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IOOF Holdings Ltd - 2005 AGM
Resolution 2b - To re-elect Kate Spargo to the Board
Votes %
FOR 15,925,112 77.95%
AGAINST 158,101 .77%
DISCRETIONARY* 4,346,029 21.27%
*The number of the Chairman’s discretionary proxy votes are 20.58%Note: These figures relate to the proxies lodged 48 hours prior to the meeting
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IOOF Holdings Ltd - 2005 AGM
Resolution 2c - To re-elect Tony Hodges to the Board
Votes %
FOR 15,957,485 78.07%
AGAINST 131,120 .64%
DISCRETIONARY* 4,350,833 21.29%
*The number of the Chairman’s discretionary proxy votes are 20.61%Note: These figures relate to the proxies lodged 48 hours prior to the meeting
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IOOF Holdings Ltd - 2005 AGM
Resolution 2d - To elect Jane Harvey to the Board
Votes %
FOR 15,790,682 77.43%
AGAINST 213,835 1.05%
DISCRETIONARY* 4,389,891 21.52%
*The number of the Chairman’s discretionary proxy votes are 20.84%Note: These figures relate to the proxies lodged 48 hours prior to the meeting
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IOOF Holdings Ltd - 2005 AGM
Resolution 2e - To elect Jim Pfeiffer to the Board
Votes %
FOR 15,551,476 76.37%
AGAINST 198,049 .97%
DISCRETIONARY* 4,613,154 22.65%
*The number of the Chairman’s discretionary proxy votes are 21.94%Note: These figures relate to the proxies lodged 48 hours prior to the meeting
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Resolution 3 - Remuneration Report
Three main components:
• Remuneration framework
• Link between performance and pay
• The amounts and their ‘packaging’
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Resolution 3 - Remuneration Report
Our aim:
• Attract and retain the best people
• Reward for performance
• Focus both short and long term
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Resolution 3 - Remuneration Report
Remuneration ‘packaging’:
• Fixed
• Short term incentive
• Long term incentive
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Resolution 3 - Remuneration Report
Scorecard:
Financial 50%
Strategic 30%
People, culture and governance 20%
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Resolution 3 - Remuneration Report
Remuneration structured to ensure
we attract and keep the people
who will create high shareholder value
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IOOF Holdings Ltd - 2005 AGM
Resolution 3 - Adoption of Director’s Remuneration Report (non-binding resolution)
Votes %
FOR 12,574,077 68.54%
AGAINST 1,242,217 6.77%
DISCRETIONARY* 4,529,050 24.69%
*The number of the Chairman’s discretionary proxy votes are 23.90%Note: These figures relate to the proxies lodged 48 hours prior to the meeting
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Resolution 4
Increase in maximum fee:• Highly regulated industry
• Complex company structure and products
• Substantial growth in the business and associated risks
• Significant participation by Directors
• Consistent with market benchmarks
• Proposed following independent advice
• Capacity to appoint additional Directors
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IOOF Holdings Ltd - 2005 AGM
Resolution 4 - To increase the maximum aggregate remuneration to all non-executive directors
Votes %
FOR 13,380,296 77.62%
AGAINST 2,363,467 13.71%
DISCRETIONARY* 1,494,652 8.67%
*The number of the Chairman’s discretionary proxy votes are 7.89%Note: These figures relate to the proxies lodged 48 hours prior to the meeting
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Disclaimer
Issued by IOOF Holdings Ltd ABN 49 100 103 722. The information contained in this presentation is given in good faith and has been prepared from information believed to be accurate and reliable. The information presented does not take into account your individual financial circumstances and it is not designed to be a substitute for specific financial or investment advice or recommendations and should not be relied upon as such. You should consider talking to your financial adviser before making an investment decision. So far as the law allows, IOOF excludes all liability for any loss or damage whether direct, indirect or consequential.
Whole numbers have been rounded for presentation purposes. However, percentages have been calculated on numbers prior to rounding.