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Business operations and strategy briefing
12 December 2007
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1
09.30 Arrival
10.00 WelcomeDavid Deverall Chief Executive Officer and Managing Director
10:05 Strategy and structureDavid Deverall Chief Executive Officer and Managing Director
10.15 Australian EquitiesEmilio Gonzalez Group Executive - Australian Equities Question and answers
10.35 Global EquitiesEmilio Gonzalez Group Executive – Global EquitiesDes Sullivan Chief Investment Officer – PIIML David Boal Managing Director – PIIMLEmilio Gonzalez Group Executive – Global EquitiesQuestions and answers
11.10 Income & Multi SectorRichard Brandweiner Acting Group Executive – Income & Multi Sector Michael Korber Head of CreditQuestions and answers
11.40 Break (5 mins)
ScheduleF
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11.45 Operations: Platforms & Structured ProductsEric Wang Chief Operating OfficerQuestions and answers
12.05 Perpetual Private WealthDavid Deverall Chief Executive Officer and Managing DirectorScott Riedel Head of Perpetual Private ClientsQuestions and answers
12.35 Perpetual Corporate TrustPhil Vernon Group Executive – Perpetual Corporate TrustChris Green Head of Trust and Fund ServicesPhil Yardy Head of Mortgage ServicesQuestions and answers
13.10 Wrap UpDavid Deverall Chief Executive Officer and Managing DirectorQuestions and answers
13.20 Refreshments
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David DeverallStrategy and structure
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Our vision is to be Australia’s leading creator and protector of wealth
III. Fully engage our people to deliver our strategy
Focus on our four sources of competitive advantage
• Funds management policies and processes
• Relationship with financial planners• Trusted brand• Fiduciary services
I. Develop amore balancedportfolio
II. Developnew growth engines
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Key strategic business priorities
Australian Equities
New and innovative products in Australian equities to grow revenue margins
Perpetual Private Wealth
Perpetual Corporate
Trust
Accelerate growth by expanding adviser teams and improving support capabilities
Rapidly grow our mortgage services business to become outsource partner of choice to the lending industry
Global Equities and
Income & Multi Sector
Aggressively grow funds under management
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Context for new structure
Align organisational structure with business strategy
Drive accountability and authority for execution of strategy aroundbusiness units
Focus team and individual responsibilities around business outcomes
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New Organisation Structure 17 September 2007
Australian Equities
Emilio Gonzalez
Income and Multi Sector
Richard Brandweiner
(acting)
OperationsEric Wang
Global Equities
Emilio Gonzalez
Private WealthDavid
Deverall
Managing DirectorDavid Deverall
Corporate Trust
Phil Vernon
RiskIvan
Holyman
People and Culture
Cathy Doyle
FinanceJohn Nesbitt
New business units
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Organisation structure - new and existing business units
Asset ManagementSales and Servicing
Product StrategyMarketingFinance
Asset ManagementSales and Servicing
Product StrategyMarketingFinance
Asset ManagementSales and Servicing
Product StrategyMarketingFinance
Product
Direct
Perpetual Private Clients
Service & Operations
Technology
StructuredProducts
Platforms
Fund Accounting
Investment Administration
Advisor Distribution
Australian EquitiesEmilio Gonzalez
Income and Multi Sector
Richard Brandweiner (acting)
OperationsEric Wang
Private WealthDavid Deverall
Global EquitiesEmilio Gonzalez
Managing DirectorDavid Deverall
Analytics & Research
Business units headed by Group Executive:
• member of EXCO• direct report to MD/CEO
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Emilio GonzalezAustralian Equities
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Value proposition: consistent delivery of good performance over time
10
Australian Equities business represents core Perpetual business
Reputation and market position is backed by:- Highly awarded and experienced team (continuity, stability and
track record of success)- Strong Perpetual brand
Represented in shelf space on all major platforms
Boutique culture in a publicly-listed company (best of both worlds)
Where does Perpetual sit in today’s competitive landscape?- doing well despite four year bull market- performs well in periods of uncertainty
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Australian equities structure promotes clearer focus and alignment of responsibilities
Australian EquitiesEmilio Gonzalez
Investment Administration - Mark De Courcey
CFO and Business Strategy
Michael Miller
QuantitativeAsset
ManagementVasantKhilnani
Equities Product StrategyEdwina Maloney
Adviser Distribution - Damian Crowley
InstitutionalSales
Justin Walsh
MarketingTBA
Active Asset ManagementJohn Sevior
Retail SalesPaul Sewell
Analytics & Research - Daniel Campbell
New roles added in September 2007
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AEQ strategic priorities about extracting best value from business
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Our aim is to grow our business by maintaining focus on good consistent investment performance in Australian equities and continuing to offer a range of new and innovative products
We will achieve this by:
- continuing investment in and development of team
- ensuring breadth of portfolio management responsibilities
- identifying niche products through new channelseg maximising revenue through long/short products with good
revenue margins and potential performance feeseg SMAs - limited offerings to HNW/private banking targets
We will deliver on our strategy while continuing to maintain revenue margins
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Emilio GonzalezGlobal Equities
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Our focus is on
growingthe
business
Interest in global broad based product
Commitment to long-term strategic initiative
Investment philosophy consistent with Perpetual brand
Infrastructure built for a lasting global equities business
Strengthened structure supports this initiative
Global equities is an opportunity Perpetual must participate inF
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Strengthened structure with improved sales capability
Global EquitiesEmilio Gonzalez
Managing Director David Boal
UK/Europe/Americas
Institutional SalesAndrew Francis
Australia/Asia Pacific
Retail SalesRory MacIntyre
Australia
Asset ManagementDes SullivanJohn Nolan
Chief Operating Officer
Patti Eyers
Director of Business Development
Martin PattinsonUK/Europe/Americas
New roles added September 2007
Investment Administration - Mark De Courcey
Adviser Distribution - Damian Crowley
Analytics & Research - Daniel CampbellFor
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Des SullivanGlobal Equities
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Strong team culture
Single global strategy
Focus on investment performance
Interests aligned
Our investment style
& philosophy
Bottom-up / mid-large cap focus
Benchmark independent
Sustainable value creation (quality)
Valuation
Long-term view
Our commitment to success
Our team
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Portfolio style characteristics
Mar
ket C
AP>A
UD
150
bn
Low
BET
A
Hig
h fre
e ca
sh fl
ow y
ield
Hig
h pr
ice
mom
entu
m
Hig
h de
bt/E
V
Low
RO
E
Source: UBS October 2007
-20
-15
-10
-5
0
5
10
15
20
Hig
h R
OIC
Com
pare
d to
MSC
I Wor
ld In
dex
% d
evia
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Portfolio active sector weights
Hea
lthca
re
Indu
stria
ls
Util
ities
Tele
com
Fina
ncia
ls
Source: Perpetual October 2007
-10
-8
-6
-4
-2
0
2
4
6
8
10
Con
sum
er s
tapl
es
Act
ive
wei
ght %
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Top 10 PIIML holdings P/E 2007 P/E 2008 Dividend yield 2007 %
Free cash flow yield 2007 %
Johnson & Johnson 16.3 15.2 2.5
2.1
3.8
2.9
2.2
4.1
1.3
2.0
1.6
5.0
6.0
2.7
20.0 17.8 4.8Nestle
Total S.A
GE
Novartis
Altria
General Dynamics 17.4 15.4 6.0
Siemens 15.9 13.5 5.0
Exxon
10.2 10.0 5.0
17.8 15.6 5.0
16.5 14.7 5.2
16.7 15.6 5.7
12.4 12.2 6.8
8.3 8.3 N/A
Total / average 15.1 13.8
BNP Paribas
5.5
Top 10 holdings*
* End October 2007
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David BoalGlobal Equities
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Business development (ex-Australia)
Focus on established and growing markets for global equity
Focus on long-term institutional market
Focus on one product type – global equity
Distinctive style boutique manager with Perpetual management andinfrastructure
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Asset management market trends (ex-Australia)
Defined contribution growing/defined benefit under pressure – liability-driven investment
Asset class proliferation/entry of investment banks
Emphasis on alpha – growth of ‘unconstrained’
Capacity limits/specialisation – rise of boutiques
Globalisation of investment flows and asset management
Favourable market for a firm like Perpetual in global equities
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US pensions and foundations market – growth of global mandate
0
20
40
60
80
100
120
1997 1998 1999 2000 2001 2002 2003 2004 2005 2006
Ass
ets
$bn
(US
)
0
1
2
3
4
5
6
7
8
9
10
% w
eigh
t of t
otal
fore
ign
hold
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Assets Weight
Source: Intersect Research June 2007
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Perpetual’s Global Equities business development strategy
Institutional market focus – UK and Ireland, North America, Asia
Build institutional sales capability in UK and Australia
Form long-term relationships with institutions and gatekeepers
Retail marketing in Australia
Good team – continuity, track record
Focus – single product
Distinctive style – quality
High conviction portfolio – potential high alpha
Strategy
Structures in place - sales, infrastructure, licensing
Increasing levels of awareness in target markets:– consultant rating typically good– invitations to tender – beginning to make short-list– US takes at least three years
Strong position to capitalise when performance kicks in
Where are we?
Value
proposition
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Emilio GonzalezGlobal Equities
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Portfolio reflects strong quality characteristics
AnalyticsPerpetual
Global portfolioMSCI World Index
Return on equity 20.5
Interest cover (times) 31.5 13.4
Debt/equity ratio (%)
16.5
29.3 47.2
Source: UBS analytics September 2007
Strongly representative of a quality portfolio
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Defining a global universe of quality stocks
Two step processIndustry/regionRegion
Ranking process
MSCI World Index ex-high debt and non-dividend payers
MSCI World Index
High debt and non-dividend payers removed
Ranking process
Top 20% ranked companies in each region by average of:
• 7 year dividend growth• 7 year average ROE• 7 year cash flow/sales ratio
Top 20% ranked companies in each industry/region eg European energy stocks by average of:
• 7 year dividend growth• 7 year average ROE• 7 year cash flow/sales ratio
Top 20% of each industry group in each region
Top 20% by region
Quality universe
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This resulted in a ‘quality universe’ possessing strong fundamentals similar to our portfolio
Analytics Quality universePerpetual
Global portfolioMSCI World Index
Return on equity 19.6
25.0
36.0
20.5
Interest cover (times) 31.5 13.4
Debt/equity ratio (%)
16.5
29.3 47.2
Source: UBS analytics September 2007
Similar characteristics and strongly representative of a quality portfolio
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Quality outperforms over the long-term
Universe of quality companies vs MSCI World Index - cumulative total return (AUD) 1988 – September 2007
0
100
200
300
400
500
600
700
800
900
Sep-88 Sep-89 Sep-90 Sep-91 Sep-92 Sep-93 Sep-94 Sep-95 Sep-96 Sep-97 Sep-98 Sep-99 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-07
MSCI World Index Quality universe
8.9% p.a.
10.4% p.a.
Base
to 1
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…but it doesn’t outperform all the time
MSCI World 1 year rolling return versus universe of quality companies
-40%
-30%
-20%
-10%
0%
10%
20%
30%
40%
50%
60%
Sep-89 Sep-90 Sep-91 Sep-92 Sep-93 Sep-94 Sep-95 Sep-96 Sep-97 Sep-98 Sep-99 Sep-00 Sep-01 Sep-02 Sep-03 Sep-04 Sep-05 Sep-06 Sep-071 Ye
ar e
xces
s re
turn
MSCI World 1 year rolling return
12m excess return
The last four years have seen a prolonged period of underperformance
The qualityuniverse has had strong performance in weaker markets, but also in strong mid 90s market
Historically, the quality universe underperforms in the latter stages of bull marketsF
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There are good prospects for Perpetual in global equities
Excellent market opportunity
We have the right team, right approach, right strategy
Our infrastructure is in place
Licences in target markets
Telling our ‘quality’ story to consultants
Ready to capitalise when performance kicks in
Indications are the end of a risk-indifferent period and a major rotation back toward quality
We have ticked and
cross-checked all the boxes
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Richard BrandweinerIncome & Multi Sector
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Income & Multi Sector: new business/highly experienced team
INCOME ASSET MANAGEMENT - $8bn
MULTI SECTOR ASSET MANAGEMENT - $7bn
PropertySean Murray and Goran Ujdur
MortgagesMarion Kraemer
Cash/Fixed InterestMichael Korber
Balanced FundsRichard Brandweiner
Multi ManagerDamien Webb
Institutional Sales - Matt Russell
Retail Sales and Marketing - Jon Crook
Product Strategy - Chris Hurst
CFO & Business Strategy - John Coyle
Income and Multi Sector Richard Brandweiner
(acting)
New roles added September 2007
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Income & Multi Sector products and channels
Institutional Mezzanine/Retail
CreditEnhanced Cash Funds (2004)
Exact Market Cash Fund (2005)Diversified Income Fund (2005)
Mezzanine Mortgage Fund (2003) Monthly Income Fund (1966)
Direct Property Fund (2006)Property Securities Fund (2002)
Property Income Fund (2004)
Diversified Alternative Funds (2008) Perpetual Balanced Funds (1993)
Select Diversified Funds (1995)
Mortgages
Property
Multi-sector
Products
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Strategic direction
Tactics
Objectives
Aggressively grow and sell emerging capabilities (credit, property, multi-manager alternatives) and
Explore the next phase of growth for mature capabilities (mortgages, diversified) with
An empowered management team collectively accountable for delivery
Focus on selling credit and property capabilities in the retail channel Globalise the asset management skill setsRe-package mortgage lending and diversified capabilities Develop and commercialise alternative capabilities within our multi-manager business
Providing a range of products which meet the changing investment needs of our clients
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Michael KorberCredit
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-
500
1,000
1,500
2,000
2,500
3,000
3,500
4,000
4,500
5,000
5,500
Jan-
05
Feb-
05
Mar
-05
Apr-
05
May
-05
Jun-
05
Jul-0
5
Aug-
05
Sep-
05
Oct
-05
Nov
-05
Dec
-05
Jan-
06
Feb-
06
Mar
-06
Apr-
06
May
-06
Jun-
06
Jul-0
6
Aug-
06
Sep-
06
Oct
-06
Nov
-06
Dec
-06
Jan-
07
Feb-
07
Mar
-07
Apr-
07
May
-07
Jun-
07
Jul-0
7
Aug-
07
Sep-
07
Oct
-07
Nov
-07
FUM
($)m
Growth in new products Inflows from $1m superannuation opportunity
ExactIncom
eTreasury
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Perpetual’s credit portfolio is high quality, diversified and short dated
AA rated fund
85% AA or better
100% investment grade
No SIVs
Predominately domestic
200 securities
No security greater than 2.5% of portfolio
Average exposure below 1% of portfolio
Wide sectoral diversity
1.5 years average maturity
85% matures in less than 3 years
20%+ cash
High quality liquid portfolio
Quality Diversification Maturity
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Market environment summary
There has been a sharp deterioration in confidence in debt markets
Risk in AAA rated asset backed securities is unprecedented
Liquidity is at a premium
Risk has been significantly repriced - credit spreads are now at historically ‘cheap’ levels
There remains a large overhang
- overhang as leveraged players are forced to exit
- backlog as issuers are unable to access markets
This cycle will sanitise markets generating significant opportunitiesFor
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0
50
100
150
200
250
Jun-
03
Aug-
03
Oct
-03
Dec
-03
Feb-
04
Apr-0
4
Jun-
04
Aug-
04
Oct
-04
Dec
-04
Feb-
05
Apr-0
5
Jun-
05
Aug-
05
Oct
-05
Dec
-05
Feb-
06
Apr-0
6
Jun-
06
Aug-
06
Oct
-06
Dec
-06
Feb-
07
Apr-0
7
Jun-
07
Aug-
07
Oct
-07
bps
EUR Bank Tier 1 capital spreadsF
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Australian RMBS spreads
AAA MBS senior debt
AA MBS sub debt
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Overview of changes in the credit market
Valuations: positiveMacro: negativeSupply/demand: negativeTechnical: negativeScore: NEGATIVE 4
Transition period Recovery period
NowWhat did credit look like What does credit look like What will credit look like
Pre-July 2007
Valuations: positiveMacro: neutralSupply/demand: neutralTechnical: positiveScore: NEUTRAL
Valuations: negativeMacro: positive Supply/demand: negativeTechnical: negativeScore: NEGATIVE 2
Ana
tom
y of
a A
AA
R
MB
S d
eal 33% subordination
BBSW+0.19%
32% subordinationBBSW+0.20%
38% subordinationBBSW+0.85%
50% subordinationBBSW+1.08%
35% subordinationBBSW+0.50%
Key difference between the sub-prime issue and previous events is that ‘quality’ paper
has been impacted and amplified by gearing
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Volatility will remain in debt markets over the short to medium-term
The risk re-pricing has resulted in a higher running yield for the portfolio
- 56 bps now versus 19 bps earlier in the year
We remain confident in our process and our portfolio positioning and characteristics
Given the re-pricing, we believe the scope to add value is larger and we are seeing some good investment opportunities
Opportunities and challengesF
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Eric WangOperations – Platforms & Structured Products
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Packagedadministration
Advice and direct to
customerManufacturing
Operations: two major areas of focus
Operations: Platforms &
Structured ProductsPrivate WealthAustralian Equities
Global Equities
Income & Multi Sector
Wealth Management value chain
Technology, Service, Operations, Product, Funding Accounting & Tax
Business units
Shared supportF
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Operations: established team in place
Chief Operating OfficerEric Wang
FinanceDavid Barton
Business Solutions & IT ServicesMatt Pancino
Service & OperationsKeith McLachlan
ProductHannele Robberds
Unit Registry ProgramAlastair Bor
PlatformsGai Ferrington
Structured ProductsRussel Chesler
Shared support across business units and the group
Business unit in Perpetual Investments
Areas added in September 2007
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Business assets and priorities
Perpetual WealthFocus Perpetual SMA Perpetual SMSF
Perpetual Platform SolutionsPerpetual Structured
Products
Perpetual Protected Investments
- Series 1 - $160m
- Series 2 - $60m
- Series 3 - Jun 08
- Series 4 - Nov 08
New product - May 09
Become a leading provider of structured products in Australia
Business head appointed (Aug 07)
Technical services capability in place (Sep 07)
Sales and service team in place (Oct 07)
Expanded menu offering for WealthFocus (Dec 07)
New unit registry system in full production (Jan 08)
SMA launched exclusively to Private Clients (Jan 08)
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David DeverallPerpetual Private Wealth
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0
2,000
4,000
6,000
8,000
10,000
12,000
14,000
Wes
tpac
PB
UBS
WM
Nat
iona
l PB
ANZ
PB
Perp
etua
l Priv
ate
Clie
nt
Mye
r Fam
ily O
ffice
Cen
tric
Wea
lth
Mac
quar
ie P
B
Mat
rix
St. G
eorg
e PB
National Private Banks (retail/commercial)Investment Banks
Domestic relationship/advice focused
Fragmented HNW market
$385 billion1
■ ≈355,000 households have more than $500,000 investable assets in
Australia
HNW market growth
FUA ($M)
Note: 1. Investable assets includes financial assets only. Excludes own businesses and propertySource: 1. ‘2006 Household Wealth and Wealth Distribution’ – Australian Bureau of Statistics, 9 Nov 2007
2. Credit Suisse Asia Pacific overview, Australian HNW growth analysis, The Boston Consulting Group, 2 Apr 20073. ‘Private Client Services in Australia 2005’, Datamonitor, August 2005
HNW market size
Our target market is large, growing and fragmented –opportunity for unconstrained growth
Historical growth (2003-05)
10.4%
Forecast growth2 (2006-12)
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Our vision is to be the adviser of choice for financially successful Australians
Perpetual Private Wealth
Perpetual Professional Private Clients Perpetual Premium
Professional investors
Wealth $10 m +
Family office service model
Exclusive and discrete Sophisticated and exclusive
Relationship/team based model
$1 – 10 mWealth
Sophisticated investors
Privileged and special access
Individual advice based model
< $1 mWealth
Retail investors
Scalable and integrated operational and technology support
Will use Perpetual Private Clients as foundation to grow absolute potential of Private Wealth business
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Scott RiedelPerpetual Private Clients
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What advisory services do HNW Clients want?
Trusts
Super strategies
Tax and accounting
Investments
Risk Insurance
Tax advice
Trust Management
Discretionary services
Business Advisory
Philanthropy
EstatesEstate
planning
Debt Services
Strategic advice
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We offer a comprehensive range of services for HNW clients
Strong capabilitiesWe have the capability but need to grow and develop
Super strategies
Tax and accounting
Trusts
High Net WorthClient
Investments
Risk Insurance
Tax advice
Trust Management
Discretionary services
Business Advisory
Philanthropy
EstatesEstate
planning
Debt Services
Strategic advice
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We maintain a full range of services which are yet to be replicated by our competitors
BusinessComprehensive
Advice 1Range of Products
/ Services 2Fiduciary Services 3
Perpetual Private Clients 3 3 4
Regional Banks 1 2 0
1
1
1
Trust Companies 1 1 4
National Private Banks (eg. big four)
3 4 1
2
4
2Brokers 2
Independent Financial Advisers 2
Investment Banks 4
Strong capabilities / competitive advantage
Weakness / No Capabilities
(1) Includes Investment, Structure, Tax and Risk Management advice
(2) Includes investments, insurance, finance, custody and DIY services
(3) Covers trust management, estate administration/planning and philanthropy
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2,100
3,600
4,300
4,800
0
1,000
2,000
3,000
4,000
5,000
2004 2005 2006 2007
We have increased client satisfaction and improved the work environment for our advisers
Clients
Increasing client numbers CAGR - 32%
Wils
on D
illwor
th in
tegr
atio
nIncreasing number of
Advisers CAGR – 17%
40
50
60
70
2004 2005 2006 2007
Advisers
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We have delivered strong volume and profit growth over the last four years
5.15.8
6.6
8.4
0
3
6
9
2004 2005 2006 2007
FUA ($B)
17
26
33
38
0
10
20
30
40
2004 2005 2006 2007
PBT ($M)
Increasing FUA CAGR - 18%
Increasing profit CAGR - 31%
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Our strategy is to establish Perpetual as the adviser of choice for financially successful Australians
Adviser growth and enhance offering
Productivity and business scalability
Focus on improving the productivity of advisers and support staff and to reduce the time to positively contribute for new starters
Scalable organisation and highly efficient sales and service model that supports our client value proposition
Efficient dealer services and product/service delivery
Aggressively recruit HNW advisersDevelop on-boarding, training and development programs to build and retain staff
Acquire to increase HNW advisers and clientsAcquire and partner to access new and differentiated capabilities
Organic growth Inorganic growth
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Phil VernonPerpetual Corporate Trust
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Trust & Fund Services
Chris GreenDebt Services
Chris Green
Mortgage Services
Post-settlement servicing
Mortgage preparation & settlement
Efficiencies from organisational changes and execution of the ‘one-stop shop’ value proposition
Variations & discharge
Document custody
Trust services
Trust management
Trust & Fund Services
Perpetual Corporate TrustPhil Vernon
Mortgage ServicesPhil Yardy
Fund Services
Glenn Foster
Business Strategy and Technology
Chief Financial Officer
Investor servicesF
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Chris Green Securitisation
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Australian RMBS issuance and pricing
Source: Bloombergs, Reuters, ASF, Insto, S&P, Moody’s Fitch, RAMS Home Loans Group Explanatory Memorandum BNote: Weighted average spread based on solely AAA tranches issued in Australian dollars
RM
BS v
olum
es is
sued
by
Aust
ralia
n Bo
rrow
ers
(A$b
n)
Dom
estic
AAA
tran
che
wei
ghte
d av
erag
e pr
icin
g (b
ps o
verB
BSW
)
For
per
sona
l use
onl
y
Securitisation: too important to go away
Source: Reserve Bank of Australia 2007
Australian debt securities outstanding
0.0
100.0
200.0
300.0
400.0
500.0
600.0
700.0
800.0
900.0
1000.0
Sep-1998 Sep-1999 Sep-2000 Sep-2001 Sep-2002 Sep-2003 Sep-2004 Sep-2005 Sep-2006 Sep-2007
AU
D m
illio
n
Corporate debt issues Government debt issues ABS debt issues
For
per
sona
l use
onl
y
Trust & Fund ServicesMortgage Services
Document custody
Trust services
Postsettlement servicing
Variations & discharge
Trust management
Mortgage preparation
& settlement
Building on our strengths – Trust & Fund Services
• Challenged by drop off in new issuance
• More focus on the role of the trustee
• Investment in ABS Suite platform
Investor
Services
• Working with ASF on transparency initiatives
For
per
sona
l use
onl
y
Phil YardyMortgage Services
For
per
sona
l use
onl
y
Trust & Fund Services
Mortgage Services
Document custody
Trust services
Post-settlement servicing
Variations &
discharge
Trust management
Mortgage preparation
& settlement
‘One-stop shop’ model – mortgage services
• Ongoing servicing of customers
• Loan system maintenance
• Processing of changes to loan documents
• Processing discharges when borrower repays loan
• Preparation of legal mortgage documents
• First home owners grant agent
• Attendance at settlement of loan
Investor
Services
For
per
sona
l use
onl
y
Building scale through acquisition in Perpetual Lenders Mortgage Services
Volume of transactions in Perpetual Lenders Mortgage Services
* financial year
No. of transactions*
2005 2006 2007
1,500
11,000
40,000
0
10,000
20,000
30,000
40,000
For
per
sona
l use
onl
y
Evolution of Perpetual’s mortgage processing capabilities
Opportunity: non-banks -mortgage managers, start ups and originators
PCT transaction volumes = 11,000 (2006)
Opportunity: regional and local-based global banks plus non-banks
Total segment volume = 875,000PCT transaction volumes = 110,000*
Opportunity: to competitively pitch for major banks plus regional and local-based global banks plus non-banks
100% of marketPotential transaction volumes = 2,500,000 pa
Current capabilityWignalls/NLS acquisition
provided technology platform, national distribution network
and more clients
Target capabilityPast capability
Whole of business and one-of-panel outsourcingOne-of-panel outsourcing
Portion of business, whole of business, one-
of-panel outsourcing
* 2008 financial year estimate
For
per
sona
l use
onl
y
