Enduring Prosperity - Financial Services Growth Strategy slide image

Enduring Prosperity - Financial Services Growth Strategy

FY22 guidance Continuing to invest in our growth strategy Operating Expenses ($m) 471.2 • LOW HIGH LOW 70.4 79.8 HIGH LOW 23.6 14.1 HIGH Includes: • Jacaranda and Laminar operating costs • Continued investment in technology & custodian transition Staff costs supporting growth in our business units Excludes: Performance fee expense Includes: 12 months of Barrow Hanley operating costs (vs 7 months in FY21) 574.6 556.0 • Annualised cost of FY21 investment in global distribution • Further investment in global distribution Currency movement² Continued investment in Trillium including the expansion in Edinburgh FY21 total expenses¹ Ex PAMI expense growth 3-5% PAMI expense growth 15-17% FY22 total expense guidance 18%-22% Growth related expenses The operating expense growth attributable to growth investments is expected to be 2- 3% ex PAMI and 13-14% for PAMI. Growth investments include acquisitions (Barrow Hanley and others made during 1H22), investment in distribution and new strategies/channels Significant items Significant items relating to transaction and integration costs as well as amortisation of acquired intangibles expected to be within a range between $45-47 million³ after tax Full Year Outlook Positive momentum across all operating divisions Earnings to be driven by continued investment in both organic and inorganic initiatives 1. 1H21 UPAT has been restated due to a change in accounting policy on the treatment of Software-as-a-service (SaaS) costs. Refer to Section 5-2 in the Financial Statements. 2. Assumes AUD:USD FX rate of 0.72 in FY22 3. Significant items guidance outlined above does not include unrealised gains/losses on financial assets and fair value movements associated with the Barrow Hanley accrued incentive compensation liability 19
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