Magellan Financial Group Limited

2020 AGM Presentation

Brett Cairns| CEO

Magellan Financial Group Full Year Results

$ million

30 June 2020

30 June 2019

% change

Management and services fees

591.6

472.5

25%

Performance fees

81.0

83.6

(3%)

Other revenue

20.3

21.1

(4%)

Adjusted revenue

692.9

577.3

20%

Adjusted expenses

(119.7)

(104.0)

15%

Adjusted net profit before tax

573.2

473.2

21%

Adjusted net profit after tax

438.3

364.2

20%

Transaction costs related to strategic initiatives (after tax)

(38.1)

(10.9)

n/m

Amortisation expense of intangible assets

(4.7)

(4.5)

n/m

Net unrealised change in fair value of financial assets and liabilities (after tax)1

0.7

28.1

n/m

Net profit after tax

396.2

376.9

5%

Key statistics

218.3

213.1

Diluted EPS (cents per share)

2%

Adjusted diluted EPS (cents per share)

241.5

205.9

17%

Interim and Final Dividends (cents per share)

184.5

151.8

22%

Annual Performance Fee Dividend (cents per share)

30.4

33.4

(9%)

Total Dividends (cents per share)

214.9

185.2

16%

Franking

75%

75%

Adjusted financial measures are adjusted for non-cash items (amortisation expense and unrealised gains/losses) and transaction costs related to strategic initiatives (IPO costs for Magellan High Conviction Trust and DRP discount funding for Magellan High Conviction Trust and Magellan Global Trust for the year ended 30 June 2020).

1. Net of a realised financial liability relating to strategic initiatives - see Note 16 in the Financial Statements

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Funds Management Business

$ million

30 June 2020

30 June 2019

% change

Revenue

587.2

467.8

Management fees

26%

Performance fees

81.0

83.6

(3%)

Services fees

4.4

4.7

(6%)

Other income

2.2

5.2

(58%)

Expenses

674.8

561.3

20%

73.8

62.8

Employee expense

18%

Marketing expense

4.9

3.4

46%

Other expense

38.1

35.4

8%

116.8

101.5

15%

Profit before tax

558.0

459.8

21%

Profit before tax and before performance fees1

477.0

376.2

27%

Key Statistics

30 June 2020

30 June 2019

% change

Average Funds Under Management ($ billion)

95.5

75.8

26%

Average AUD/USD exchange rate

0.6716

0.7155

(6%)

Avg. number of employees

128

125

2%

Employee expense/total expense

63.2%

61.8%

Cost/Income

17.3%

18.1%

Cost/Income (excl performance fees)1

19.7%

21.3%

1. Adjusts for the current period performance fee impact on revenue and expenses for the 12 month period.

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Expenses

  • Costs associated with strategic initiatives considered as outside day-to-day operating expenses
    • Excluded from Funds Management business
    • Excluded from dividend payout
  • Cost to income ratio (excluding performance fees) of 19.7% during the period
    • Key driver of profit is not expense movements, but FUM movements
  • Expect Funds Management business expenses in 2021 financial year to be $110-$115 million, as a result of no bonus deferral for FY20 and outstanding deferred bonuses paid out in FY20

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Magellan Financial Group Limited published this content on 22 October 2020 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 October 2020 03:29:10 UTC