Perpetual : FY16 Full Year Results - ASX Media Release - PPT

25 August 2016

Media Release

• FY16 NPAT of $132 million, up 8% on FY15

• Fully franked full year dividend of 255 cents per share, up 6% on FY15

• Perpetual Investments delivers strong long-term investment performance, with good cost control amid continued market volatility

• Perpetual Private delivers six consecutive halves of positive net flows, growth in net new clients and strong investment performance

• Perpetual Corporate Trust delivers solid results and continues to benefit from inbound capital flows into property and infrastructure investments in Australia

Perpetual Limited (Perpetual) has delivered solid results for the year ended 30 June 2016 with statutory net profit after tax (NPAT) of $132 million, up 8% on the same period last year, and underlying profit after tax (UPAT) of $128.2 million, down 4% on FY15.

The Board has determined to pay a fully franked final dividend of 130 cents per share, taking fully franked dividends for the year to 255 cents per share, up 6% on FY15.

Perpetual's Chief Executive Officer and Managing Director Geoff Lloyd said, "We have achieved a solid result in challenging conditions while investing in the business. This is testament to the disciplined execution of our strategy, the diversity of our revenue, and our commitment to growing the business for the future.

"Our dividend growth reflects the strength of our business model and the diversity of our revenue and earnings.

"We are pleased with the outcome for our people, clients and shareholders as this year we have delivered our highest profit, dividend, client advocacy and employee engagement levels in five years.

"Early momentum in new strategies is critical, and we are pleased with progress on our Lead

& Grow strategy, one year into this multi-year journey," Mr Lloyd added.

In FY16, profit before tax for Perpetual Investments was $118.1 million, which was 6% lower than FY15. This was largely driven by continued volatility in equity markets which offset good cost control and long-term outperformance of the funds.

Mr Lloyd commented, "The diversity of our strategies across our multi asset, global equities, and credit and fixed income capabilities has allowed us to bring more relevant solutions to our clients and maintain revenue margins.

"Pleasingly, 93% of our funds are in the first or second quartile of the performance tables over five years and 53% over three years1. We are deliberate in our decisions to avoid stocks our investment process shows to be overvalued, to help protect our clients' wealth."

Perpetual Private's profit before tax was $34.2 million, which was 9% lower than FY15. This was due to the decline in equity markets, continued investment for growth including strategic acquisitions, and partially offset by the growth in new clients for the period.

"With a view to being Australia's premier high net worth advice business, we are pleased Perpetual Private has now delivered six consecutive halves of positive flows and net new client growth, as well as continued strong investment performance of the $12.7 billion in funds under advice.

"The acquisition of medical education and advice business The Private Practice/Fintuition in the first half, and the growth of our professional services business Fordham up the eastern seaboard, is in keeping with our client segment strategy to deliver long-term growth.

"Native Title is positioned to be an important contributor to future growth for Perpetual Private. In the second half, we were appointed Trustee in Waiting for a landmark Native Title award," he said.

Perpetual Corporate Trust's profit before tax was $34.1 million, which was 9% higher than FY15, reflecting growth in the securitisation market and inbound capital flows.

"We have seen good growth in Perpetual Corporate Trust which has built on its market- leading position in securitisation to broaden our range and depth of offers.

"The team has demonstrated Perpetual's credentials in data and analytics which have provided a platform to diversify into new and growing markets.

"In Managed Funds, we have benefitted from inbound capital flows and the continuing attractiveness of property and infrastructure investments in Australia," Mr Lloyd said.

Perpetual is an independent financial services group operating in funds management, financial advisory and trustee services. Our origin as a trustee company, coupled with our strong track record of investment performance, has created our reputation as one of the strongest brands in financial services in Australia. For further information, go to www.perpetual.com.au

1

Mercer Wholesale Survey - quartile rankings for period ending June 2016.