Perpetual Limited (ASX:PPT) FY23 Results Presentation

For the year ending 30 June 2023

Thursday 24 August 2023

Presented by:

Rob Adams, CEO & Managing Director

Chris Green, Chief Financial Officer

Disclaimer

Important information

This presentation is in summary form and is not necessarily complete. It should be read together with Perpetual Limited's (Perpetual) consolidated financial statements and other announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au . The presentation is general information and is not intended to provide you with financial advice or take into account your objectives, financial situation or needs. You should consider, with a financial adviser, whether the information is suitable for your circumstances.

References to "Perpetual" in this presentation are to Perpetual Limited ABN 86 000 431 827, unless stated otherwise. References to "Perpetual Group" are to Perpetual Limited and its subsidiaries. References to "Pendal" in this presentation are to Pendal Group Limited ABN 28 126 385 822, unless stated otherwise.

This presentation contains information that is based on projected and/or estimated expectations, assumptions or outcomes. Forward looking statements are subject to a range of risk factors. Perpetual cautions against reliance on any forward-looking statements.

While Perpetual has prepared this information based on its current knowledge and understanding and in good faith, there are risks and uncertainties involved which could cause results to differ from projections. Perpetual will not be liable for the correctness and/or accuracy of the information, nor any differences between the information provided and actual outcomes, and reserves the right to change its projections from time to time. Perpetual undertakes no obligation to update any forward-looking statement to reflect events or circumstances after the date of this presentation, subject to disclosure obligations under the applicable law and ASX listing rules.

The Product Disclosure Statement (PDS) for the Perpetual Asset Management Australia funds are issued by Perpetual Investment Management Limited ABN 18 000 866 535 AFSL 234426. The applicable PDS, and Target Market Determination, can be obtained by calling 1800 022 033 or visiting our website www.perpetual.com.au.

The PDS for the Pendal funds are issued by Pendal Fund Services Limited ABN 13 161 249 332, AFSL 431426. The applicable PDS, and Target Market Determination, can be obtained by calling 1300 346 821 or visiting our www.pendalgroup.com.

The applicable offer document for a strategy offered by either Trillium Asset Management, Barrow Hanley Global Investors or J O Hambro should be considered before deciding whether to acquire or hold units in a fund or strategy. These funds or strategies may not be available in Australia and may not be distributed in Australia. Past performance is not indicative of future performance.

2

FY23 Highlights

Rob Adams

CEO and Managing Director half year ending 31 December 2021

Delivering growth, scale and diversification benefits

Key themes

  • Solid execution of strategy with acquisitions on track and delivering benefits
  • Integration of Pendal Group on schedule with synergies realised to-date on track
  • Earnings impacted by net outflows in Asset Management
  • Continued organic growth in Corporate Trust and Wealth Management
  • FY24 focus: delivering synergies, improving net flows in Asset Management and unlocking benefits from simplification

Headline results

FY23

FY22

Change

$m

$m

Operating revenue ($m) 1

1,013.8

767.7

32%

Underlying profit after tax (UPAT)2 ($m)

163.2

148.2

10%

Net profit after tax (NPAT) ($m)

59.0

101.2

(42%)

Dividends (cps) 3

155.0

209.0

(26%)

Diluted earnings per share (EPS) on UPAT (cps)

196.6

258.4

(24%)

1. Operating revenue is presented net of distributions and expenses of the EMCF structured products. For statutory purposes, revenue, distributions and expenses are adjusted to reflect the gross revenue and expenses of these products. 2. Underlying profit after tax (UPAT) attributable to equity holders of Perpetual reflects an assessment of the result for the ongoing business of the Perpetual Group as determined by the Perpetual Board and management. UPAT has been calculated in accordance with ASIC's Regulatory Guide 230 - Disclosing non-IFRS financial information. UPAT attributable to equity holders of Perpetual is disclosed as it is useful for investors to gain a better understanding of Perpetual's financial results from normal operating activities. 3. Dividends payable as a proportion of UPAT on ordinary fully paid shares at the end of each reporting period. Perpetual's dividend policy is to pay dividends within a range of 60% to 90% of UPAT on an annualised basis and maximising returns to shareholders. 4. ROE is calculated using UPAT attributable to equity holders of Perpetual Limited for the period,

divided by average equity attributable to equity holders of Perpetual Limited over the period in order to arrive at an annualised ROE

4

Asset Management

AUM and revenue influenced by markets, outperformance and net flows; improvement in net flows our prime focus

• UPBT up 29% on FY22, revenue up 55%; due to the inclusion of Pendal

• Strong investment performance across portfolio positions us well for

• Total AUM of $212.1 billion, supported by positive markets, alpha generation and

improvement in net flows, led by:

positive currency movements

•

Perpetual's Australian equities strategies

• Net outflows of $8.1 billion, impacted by variety of factors, including:

• Barrow Hanley's various global/international capabilities

• Fund-specific underperformance

• J O Hambro's Emerging Market Opportunities and Global

• Asset allocation shifts from equities to fixed income

Opportunities strategies

• Fully funded defined benefit schemes de-risking

• Regnan's global thematic strategies

• Areas that currently remain challenging for flows include:

•

US equities

AUM ($b)

250

212.1

200

150

100

98.3

90.4

50

27.2

28.4

0

FY19

FY20

FY21

FY22

FY23

Total AUM

Average AUM

  • Isolated underperforming strategies

Revenue and average revenue margin

AUM by Boutique1 (%)

($m, bps)

700

600

80

TSW

600

70

14%

Trillium

Barrow

60

500

5%

Hanley

400

388

50

Perpetual

33%

305

40

300

10%

30

205

173

J O

200

20

Pendal

Hambro

100

10

19%

19%

0

0

FY19

FY20

FY21

FY22

FY23

Revenue (LHS)

Revenue margin (RHS)

5

1. Regnan is distributed as a brand across both J O Hambro and Pendal boutiques.

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Disclaimer

Perpetual Limited published this content on 24 August 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 27 August 2023 23:14:01 UTC.