Transcript IOOF Title Page

Annual General Meeting 2005
Annual General Meeting 2005
Chairman’s Speech
Ray Schoer
Agenda
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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
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Another excellent financial year
Financial metrics
Corporate Governance
The Community
Going Forward
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Excellent year - financial metrics
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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
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Listing December 2003
Good corporate governance
ASX Principles
ICT Governance
Governance Framework
Strong results within this framework
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IOOF in the Community
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IOOF Foundation
2005 – Grants over $475,000
Staff Giving Program
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Going Forward
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Significant change
Increasing demands
Well positioned
Commitment of Board, management and staff
Shareholder support
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Annual General Meeting 2005
CEO’s Speech
Ron Dewhurst
Agenda
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High level results - another strong year
Business performance
Financial performance
Strategic direction
IOOF’s future outlook
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Another strong year
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Strong growth in cash earnings
Operating efficiency improved to 68%
Strong growth in all areas of FUMA
Established the foundations for sustainable growth
Strong result, with focus on future sustainable growth
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Funds growth driving earnings
Funds under Management and Administration ($bn)
(“FUMA”)
$22.4b
41%
$15.9b
Wholesale FUM
$10.3b
W/Sale FUM
Retail FUMA
$11.8b
$5.4b
$3.0b
Retail FUMA
$3.9b
$2.9b
$2.6b
$3.2b
2000/01
2001/02
$8.8b
2002/03
$10.5b
2003/04
$12.1b
2004/05
41% growth in FUMA
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Retail Funds Management
Highlights
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2005 ASSIRT/S&P Fund Manager of the Year (“FMOY”)
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Finalist in 2005 Morningstar FMOY awards
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IOOF / Perennial - Overall Fund Manager of the Year
IOOF / Perennial - Multi-Sector
IOOF / Perennial - Australian Equities
Recommended rating by Morningstar
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IOOF / Perennial Capital Stable Trust– Conservative category (Aug 2005)
IOOF MIMs Australian Equities
Development of new platform offering
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Launch of Term Allocated Pension
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Perennial Investment Partners
Total FUM
$13.6b
$8.1b
$10.3b
Wholesale FUM
IOOF retail FUM managed by Perennial*
$1.8b
$1.9b
2000
2001
$2.5b
$4.9b
$5.4b
$3.0b
$0.7b
2002
2003
2004
2005
Continued Momentum in FUM growth
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* IOOF’s retail FUM managed by Perennial, is excluded from IOOF’s FUMA consolidation.
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Financial Performance
Cash Earnings
FY05
FY04
Change
(%)
98.2
87.9
12%
Non operating income
5.7
4.8
19%
Share of Net profits from PVM
5.1
2.2
Large
(74.1)
(76.1)
-3%
34.9
18.8
86%
Year ending June
Gross margin
Operating Expenses
Cash earnings
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Strong growth in underlying earnings
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Significant contribution from Perennial
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Disciplined cost management has
resulted in flat cost base
Delivering operating leverage
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Financial Performance
Operating Efficiency
Cash operating expenses to Gross Profit
105%
109%
96%
80%
68%
2001
2002
2003
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Gross Profit is inclusive of other operating income and the Group’s share of PVM.
* Excludes the impact of Benefit fund consolidation
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2005
Working towards
66% (AGAAP)
69% (IFRS*)
2006e
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Setting IOOF’s strategic direction
IOOF’s Strategic Statement (Dec 2004)
Focused provider of best of breed solutions
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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’
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Aligning Mission, Values and Visual Identity
Consistent framework for communication and decision making
Focus on developing and engaging talent
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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
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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
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Provide an independent alternative
Develop a platform to meet adviser’s business needs
Development of innovative investment solutions
Client service initiative
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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
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Leverage off the value proposition of OutScope
Launch of new Winchcombe Carson dealership model
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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
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Increasing our relevance to advisers
Decisions today, to position IOOF for tomorrow
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Continually assess the relevance of our existing businesses
Building a business for long term sustainable growth
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Annual General Meeting 2005
Resolutions
IOOF Holdings Ltd - 2005 AGM
Resolution 2a - To re-elect Ian Blair to the Board
Votes
FOR
AGAINST
DISCRETIONARY*
%
15,993,594
78.27%
94,107
.46%
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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Annual General Meeting 2005
Resolutions
IOOF Holdings Ltd - 2005 AGM
Resolution 2b - To re-elect Kate Spargo to the Board
FOR
AGAINST
DISCRETIONARY*
Votes
%
15,925,112
77.95%
158,101
.77%
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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Annual General Meeting 2005
Resolutions
IOOF Holdings Ltd - 2005 AGM
Resolution 2c - To re-elect Tony Hodges to the Board
FOR
AGAINST
DISCRETIONARY*
Votes
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15,957,485
78.07%
131,120
.64%
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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Annual General Meeting 2005
Resolutions
IOOF Holdings Ltd - 2005 AGM
Resolution 2d - To elect Jane Harvey to the Board
FOR
AGAINST
DISCRETIONARY*
Votes
%
15,790,682
77.43%
213,835
4,389,891
1.05%
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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Annual General Meeting 2005
Resolutions
IOOF Holdings Ltd - 2005 AGM
Resolution 2e - To elect Jim Pfeiffer to the Board
FOR
AGAINST
DISCRETIONARY*
Votes
%
15,551,476
76.37%
198,049
.97%
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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Annual General Meeting 2005
Resolutions
Resolution 3 - Remuneration Report
Three main components:
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Remuneration framework
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Link between performance and pay
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The amounts and their ‘packaging’
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Resolution 3 - Remuneration Report
Our aim:
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Attract and retain the best people
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Reward for performance
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Focus both short and long term
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Resolution 3 - Remuneration Report
Non-executive Directors receive set fees only
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Resolution 3 - Remuneration Report
Remuneration ‘packaging’:
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Fixed
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Short term incentive
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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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Annual General Meeting 2005
Resolutions
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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Annual General Meeting 2005
Resolutions
Resolution 4
Increase in maximum fee:
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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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Annual General Meeting 2005
Resolutions
IOOF Holdings Ltd - 2005 AGM
Resolution 4 - To increase the maximum aggregate remuneration to all nonexecutive directors
Votes
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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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Annual General Meeting 2005
IOOF Holdings Ltd - 2005 AGM
Ian Blair
Incoming Chairman
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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.
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Annual General Meeting 2005