Perpetual : PPT - FY17 Announcement

24 August 2017

Media Release

• FY17 NPAT of $137.3 million, up 4% on FY16

• Fully franked full year dividend of 265 cents per share, up 4% on FY16

• Perpetual Investments continues to deliver strong long-term investment performance

• Perpetual Private benefits from client growth in the high net worth market and Fordham expansion

• Perpetual Corporate Trust delivers strong results and expands digital offering

Perpetual Limited (Perpetual) has announced statutory net profit after tax (NPAT) of $137.3 million for the year ended 30 June 2017, up 4% on FY16, and revenue of $515.4 million, also up 4%.

A final dividend of 135 cents per share was determined by the Board, delivering a full year dividend of 265 cents per share, fully franked.

Chief Executive Officer and Managing Director Geoff Lloyd said, "Perpetual has achieved a solid result while continuing to invest in key areas of the business.

"We are pleased our financial performance and the strength of our business have allowed for an increased final dividend of $1.35 per share.

"Across Perpetual Investments, Perpetual Corporate Trust and Perpetual Private, this is a strong business which is delivering results while also being positioned for the future through our Lead & Grow strategy. We have good momentum across our new initiatives," Mr Lloyd said.

In FY17, profit before tax for Perpetual Investments was $116.5 million, 1% lower than FY16. This was largely driven by lower performance fees and partially offset by higher average funds under management due to higher equity markets.

"Our team in Perpetual Investments continues to deliver to clients," Mr Lloyd said. "In spite of challenging market conditions for active value investors, 88% of our funds are in the first or second quartile over five years, 100% over seven years and 83% over ten years1.

"For more than 50 years our teams of investment professionals have focused on long-term outperformance through active management. We are building our global equities capability and are particularly pleased with performance in the relatively new Global Share Fund, which has outperformed its benchmark by 4.8% over 1 year and 3.5% p.a. over 5 years2.

"We have also seen strong consistent performance in fixed income and credit over all timeframes, and good client support resulting in market share growth," he said.

1 Mercer wholesale surveys, quartile rankings, June 2017

2 Perpetual Global Share Fund 3 and 5 year performance based on the Global Share Fund Class W (i.e. incubation version). 3

year track record of the Fund available September 2017

Perpetual Private's profit before tax was $40.5 million, 18% higher than FY16. This increase was a result of new client growth in target segments, as well as higher non-market related revenue and higher equity markets.

Perpetual Private's targeted client segmentation strategy has now delivered eight consecutive halves of net new client growth.

"In line with our Lead & Grow initiative to expand Fordham, we have increased presence up the eastern seaboard and delivered significant revenue growth. Fordham is now a leading referrer for Perpetual Private's strategic financial advice services. Additionally our medical education and advice business, The Private Practice is reaching a wide audience of medical professionals and attracted 70 new medical specialist clients during the year," Mr Lloyd said.

Perpetual Corporate Trust's profit before tax was $36.7 million, which was 8% higher than FY16, driven by growth in Managed Funds Services, underpinned by strong commercial property and infrastructure markets.

"Perpetual Corporate Trust had a successful year. In securitisation markets FY17 was the highest year for issuance since the GFC, while our Managed Funds business grew strongly again on the back of inbound capital flows into Australian property and infrastructure.

"Perpetual Corporate Trust's rich data set provides a springboard for new product innovation, and the team this year successfully launched ABSPerpetual Business Intelligence, a dynamic data analytics platform for existing and new clients. This opens new revenue growth opportunities as we help financial institutions with their lending, credit and investment strategies," 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