Perpetual : FY22 Annual Report

Enduring Prosperity

Annual Report 2022

Trust is earned.

Our performance

1. Group at a glance

1. Chairman's Report

1. CEO's Report

1. Strategy update
2. Business division updates

1. Sustainability at Perpetual

Directors' Report

18 Directors' Report

27 Remuneration Report

Operating and

Financial Review

68 Operating and Financial Review

Financial Report

1. Primary statements

1. Group performance

1. Operating assets and liabilities

1. Capital management and financing

1. Risk management

1. Other disclosures

1. Basis of preparation

1. Directors' declaration

170 Securities exchange and investor information

Reporting suite

Perpetual presents its 2022 Annual Reporting suite for the year ended 30 June 2022.

Enduring Prosperity

Corporate Governance Statement 2022

Trust is earned.

		Corporate
Annual		Governance		Sustainability
Report		Statement		Report

Our reporting suite is available online: perpetual.com.au/about/shareholders

Perpetual Annual Report 2022

Acknowledgement of Country

Perpetual acknowledges Aboriginal and Torres Strait Islander peoples of this nation. We acknowledge the Traditional Custodians of the lands on which our company is located and where we conduct our business. We pay our respects to ancestors, Elders, past and present. Perpetual is committed to honouring Aboriginal and Torres Strait Islander peoples' unique cultural and spiritual relationships to the land, waters and seas and their rich contribution to society.

Our Stretch Reconciliation Action Plan is available online: perpetual.com.au/about/ sustainability/reconciliation-action-plan

Our performance

Directors' Report

Operating and Financial Review

Financial Report

1

About Perpetual

Perpetual Limited (ASX:PPT) is an ASX-listed, diversified financial services company that operates globally, providing asset management, financial advisory and trustee services.

Perpetual services its client base from offices in Australia as well as its international offices in the United States, United Kingdom, the Netherlands, Singapore and Hong Kong. Our clients include institutions, not-for-profit organisations, small businesses, financial advisers, individuals and families.

Our purpose

To create enduring prosperity

Our vision

To be the most trusted in financial services

Our values

Excellence, integrity, partnership

Why invest in Perpetual

Unique portfolio	Trusted brand	Clear strategy
of businesses	with a strong	executed at pace
underpins	and established	and delivering
resilience through	heritage	results
market cycles
Disciplined	Strong balance	A highly
investment in	sheet and	experienced
quality growth	financial flexibility	leadership team
opportunities		focused on
		delivery

2	Perpetual Annual Report 2022

Group at a glance

We are a global business committed to growing sustainably.

Chris Green

Chief Financial Officer

The strong FY22 result saw double digit earnings growth across each of our four divisions, while we also invested in growing our business through new capabilities, both in Australia and offshore.

Underlying profit after tax	Total dividends per share
21% on FY21	16% on FY21
$148.2m	$ 2.09
Five-year profile
June	June	June	June	June
	2018	2019	2020	2021	2022
Total revenue1 ($m)	531.4	512.1	487.6	650.2	748.2
Underlying EBITDA2,3,10 ($m)	227.0	196.0	178.9	214.0	248.5
Underlying profit before tax (UPBT)3,4,10 ($m)	196.3	162.2	136.1	169.3	201.2
Underlying profit after tax (UPAT)3,4,10 ($m)	139.0	115.9	95.1	122.8	148.2
Net profit after tax (NPAT)5 ($m)	140.2	115.9	82.0	72.9	101.2
Earnings per share (UPAT)6,10 (cents)	297	246	200	218	258
Earnings per share (NPAT)6 (cents)	299	246	173	130	177
Return on average shareholders' equity - UPAT7,10 (%)	21.5	17.5	14.4	15.7	16.2
Return on average shareholders' equity - NPAT8 (%)	21.6	17.5	12.5	9.3	11.0
Dividend per share - ordinary9 (cents)	275	250	155	180	209
Total equity at 30 June10 ($m)	661.1	662.2	650.8	907.1	925.8
Assets under management - PAMA11 ($b)	30.8	27.1	22.8	24.7	21.3
Assets under management - PAMI11 ($b)	-	-	5.6	73.6	69.1
Funds under advice - PP11 ($b)	14.1	14.8	14.3	17.0	17.4
Funds under administration - PCT11 ($b)	693.2	764.5	941.9	922.8	1,092.3
Capital expenditure ($m)	28.6	38.8	12.5	26.2	19.1
Market capitalisation ($m)	1,937	1,967	1,406	2,266	1,637
No. of shares on issue - weighted average12 (m)	46.8	47.1	47.8	56.2	57.3
No. of shares on issue at 30 June (m)	46.6	46.6	47.4	56.6	56.7
Share price at 30 June ($)	41.60	42.24	29.67	40.05	28.88
Share price range for year ($ low)	38.25	29.70	20.27	27.03	27.87
($ high)	56.20	46.11	47.27	40.05	42.27

1. Excludes income from structured investments.
2. EBITDA represents earnings before interest, taxation, depreciation, amortisation of intangible assets, equity remuneration expense and significant items.
3. June 2020 figure re-presented based on the revised definition of UPAT. Figures prior to June 2020 have not been re-presented.
4. Excludes significant items.
5. Attributable to equity holders of Perpetual Limited.
6. Diluted earnings per share calculated using the weighted average number of ordinary shares and potential ordinary shares on issue.
7. Calculated using underlying profit after tax.
8. Calculated using net profit after tax.
9. Dividends declared with respect to the financial year.
10. June 2021 and June 2020 figures have been restated for the change in accounting policy relating to Software-as-a-Service (SaaS) arrangements.
11. Represents 30 June closing balances.
12. Includes ordinary shares and potential ordinary shares. The weighted average number of ordinary shares for the June 2021 and June 2020 period were adjusted retrospectively in accordance with AASB 133 Earnings per Share following the issues of new shares at a discount to market value during the period.

Our performance

Directors' Report

Operating and Financial Review

Financial Report

3

FY22 operational highlights

79%

of all investment strategies1 outperformed their benchmarks over 3 years2

~$3b

raised in global equities strategies4

3 new Active ETFs3

trading on the ASX in Perpetual Asset Management Australia

New milestone for Perpetual	$1.09t	Perpetual Private reports its	Group NPS5			+49
Corporate Trust of		9th	+49
>$1 trillion in	$0.92t		+45	+44
Funds under	FY21	FY22	a record result	FY20	FY21	FY22
Administration	consecutive year of	reflecting strong
client net inflows	client advocacy

Our global presence

1	2	3	4	5	6
Head Office	Brisbane,	Canberra,	Melbourne,	Adelaide,	Perth,
Sydney, NSW,	QLD, Australia	ACT, Australia	VIC, Australia	SA, Australia	WA, Australia
Australia
7	8	9	10	11
Chicago,	Hong Kong	Singapore	Amsterdam,	London,
IL, USA	(SAR)		Netherlands	United Kingdom
1	2	3
Boston,	San Francisco,	Edinburgh,
MA, USA	CA, USA	United Kingdom

1. Includes both PAMI and PAMA.
2. As at 30 June 2022. Past performance is not indicative of future performance. Seeperpetual.com.aufor relevant performance. The product disclosure statements (PDS) of any
   of the capabilities or funds should be considered before deciding whether to acquire or hold units in any fund.
3. Exchange Traded Managed Funds, commonly referred to as Active ETFs.
4. From all sources, all regions, flows are converted monthly using the month-end exchange rate. Includes both Barrow Hanley and Trillium Global Equities strategies.
5. Net Promoter Score.

1

Dallas,

TX, USA

3	10
11
1
7
1		8
2	9
	6
	5
	4 3	2
		1