BT Investment Management Limited Annual General Meeting Tuesday, 8 December 2009
Board of Directors Brian Scullin Carolyn Hewson Gavin Walker Rob Coombe 2
Senior Management Team Phil Stockwell Martin Franc Cameron Williamson Brian Wright Chief Operating Officer Head of Sales & Marketing Acting Chief Financial Officer Head of M&A Strategy 3
Agenda 1. Financial Report 2. Chairman s Address 3. Questions 4. Re-election of Directors 5. Remuneration Report 6. Meeting Closed 7. Presentation by Head of Equities Strategies 4
Admission Cards Shareholder Voting Card Non-Voting Shareholder Card Visitor Card Entitled to vote and address the meeting Entitled to vote, but may address the meeting Not entitled to vote or address the meeting 5
Proxies To be valid, Proxies must have been lodged with Link Market Services at least 48 hours prior to the meeting Valid Proxies received will be displayed prior to the resolution being considered by the meeting The Chairman will vote undirected proxies in favour of each resolution 6
Item 1 Financial statements and reports Consideration of the Financial Report, Director s report and Auditor s Report 7
Chairman s Address Brian Scullin 8
Satisfactory result after turbulent year Average FUM Revenue Pre-tax cash expenses Cash NPAT Closing FUM $ $32.3bn $112.4m $74.3m $26.9m $36bn pcp % -16% -23% -17% -33% +2% Revenues and cash NPAT reflecting economic conditions Successful cost control V-shaped market activity, SO lower average FUM, BUT higher closing FUM 9
Resilience of BTIM model BTIM's competitive positioning remains robust with: nimble boutique structure strong investment performance responsive product developments substantial distribution networks unique links to Westpac Employee remuneration linked to profitability = positive alignment of shareholder and employee interests Cost control has been measured without harming future growth potential 10
Competitive long term investment performance BTIM Flagship Funds Performance & Quartiles as at Sep 2009 Core Australian Share Fund Ethical Share Fund Imputation Fund Focus Fund Smaller Companies Fund Property Domestic Fixed Interest Managed Cash Intl Fixed Interest* Intl Equities** Asian Share Fund *** Balanced Fund Annualised Returns and Quartile Rankings 1yr Q 3yrs Q 5yrs Q 11.0 Q3 4.1 Q2 12.7 Q1 7.1 Q4 2.9 Q3 13.0 Q1 8.9 Q3 3.7 Q2 13.6 Q1 12.4 Q2 1.9 Q3 N/A N/A 9.7 Q3 3.1 Q2 13.0 Q1-15.7 Q1-13.2 Q1-1.2 Q1 7.2 Q4 5.9 Q3 5.7 Q3 4.3 Q3 6.0 Q2 5.9 Q2 9.7 Q4 6.0 Q3 6.2 Q3-7.0 Q1-10.9 Q4-0.7 Q3 10.8 N/A 0.3 N/A 9.6 N/A 0.6 N/A -1.3 N/A N/A N/A Ratings (S&P) 2009 N/A N/A 11 * Intl Fixed Interest managed by BlackRock, Inc **Intl Equities managed by AQR Capital Management, LLC ***Asian Share Fund managed by MFS International (UK) Ltd
Closing FUM finished above 2008 $b Sep-08 FY2008 Margin Netflows Market/Other Sep-09 FY2009 Margin H1 2009 Margin H2 2009 Margin BTIM Institutional & Wholesale 15.9 0.45% 1.0 0.7 17.6 0.40% 0.38% 0.40% Legacy Retail 19.4 0.30% (0.8) (0.2) 18.4 0.29% 0.28% 0.29% Total FUM 35.3 0.37% 0.2 0.5 36.0 0.34% 0.33% 0.34% Market Movement 1.2% All Ordinaries 2.3% FY2009 Closing FUM slightly up on FY2008 on net flows and positive market Institutional / wholesale flows of $1.0bn driven by cash H1 and Equities H2 Margin trending higher in second half on equities market recovery 12
New CEO appointed Dirk Morris, CEO, resigned in July Momentum has continued Investing in new talent to diversify capabilities Emilio Gonzalez: Appointed CEO Starts in January 2010 Strong understanding of and experience in Australian and global markets 13
Capital management policy maintained Final dividend of 4.9 cents per share fully franked FY2009 Dividend 7.9 cents per share equivalent to 100% of NPAT, 47% of Cash NPAT Target payout ratio policy of 80-90% of Cash NPAT confirmed Capital return remains on hold pending further clarity around market conditions Scheduled for further review in April 2010 Capacity to pay dividends out of reported earnings increasing as amortisation of IPO grants runs-off 14
Cautiously optimistic on the year ahead Recent positive economic indicators suggest market stabilisation Cash not as attractive with lower interest rates, confidence returning to other asset classes FUM improving with strong fund flows into Australian equities in last quarter Fee margins improving with move back into equities, performance fees, and new higher margins products (e.g. Global Macro, Australian Long/Short) Strong control of costs/employee remuneration structure continuing to benefit profitability 15
Well positioned for growth Multi-boutique model validated in toughest of environments Clients will continue to look for security from brands delivering strong long-term investment performance Westpac relationship remains strong Diversification will continue with introduction of new products and investment talent BTIM is well positioned to accelerate strategic objectives Underlying superannuation fundamentals continue to remain positive in Australia despite regulatory changes 16
Corporate Governance Emilio Gonzalez joins the Board as Managing Director in January 2010 Brian Scullin resumes role as Non-executive Chairman Board performance review to be conducted in 2010 17
Questions 18
BTIM share price movement since listing 19 Source: www.asx.com.au
Questions If you have a question, please: Proceed to one of the microphones Show your voting card to the attendant Tell the attendant your name 20
Item 2(a) Re-election of Director To re-elect Carolyn Hewson as a Director 21
Item 2(a) Proxy Votes To re-elect Carolyn Hewson as a Director The following proxies have been received for this resolution: For: Open: Against: Total: Abstain: 104,576,119 765,922 1,136,452 106,478,493 80,554 98.2% 0.7% 1.1% 100.0% 22
Item 2(b) Re-election of Director To re-elect Gavin Walker as a Director 23
Item 2(b) Proxy Votes To re-elect Gavin Walker as a Director The following proxies have been received for this resolution: For: Open: Against: Total: Abstain: 105,528,703 773,609 170,100 106,472,412 86,635 99.1% 0.7% 0.2% 100.0% 24
Item 3 Remuneration Report Adoption of the 2009 Remuneration Report Non-binding resolution 25
Variable Reward down in line with Cash NPAT Cash NPAT Total Revenue Cash Employee Expenses Variable Cash Employee Expenses -15% -23% -33% -32% FY2009 V FY2008 26
Item 3 Remuneration Report Adoption of the 2009 Remuneration Report The following proxies have been received for this resolution: For: Open: Against: Total: Abstain: 104,441,920 748,200 1,181,835 106,371,955 187,092 98.2% 0.7% 1.1% 100.0% 27
Meeting Closed The formal part of the meeting is now closed. Please remain for a presentation by Crispin Murray, Head of Australian Equities 28
Disclaimer Important Notice This presentation has been prepared by BT Investment Management Limited (BTIM). While the information in this presentation has been prepared in good faith and with reasonable care, no representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates, opinions or other information contained in the presentation. This presentation contains forward looking statements. These forward-looking statements have been made based upon BTIM s expectations and beliefs concerning future developments and their potential effect upon BTIM and are subject to risks and uncertainty which are, in many instances, beyond BTIM s control. No assurance is given that future developments will be in accordance with BTIM s expectations. Actual results could differ materially from those expected by BTIM. The information contained in this presentation is not intended to be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs. In this presentation, unless otherwise stated or the context otherwise requires, references to 'dollar amounts', '$', 'AUD' or 'A$' are to Australian dollars. 29