Perpetual Limited ABN 86 000 431 827 Angel Place, Level 18, 123 Pitt Street Sydney NSW 2000 10 September 2020 Australia Phone +61 9229 9000 ASX Limited www.perpetual.com.au ASX Market Announcements Office Exchange Centre 20 Bridge Street Sydney NSW 2000 Perpetual Annual General Meeting 2020 The following announcements to the market are provided: AGM Notice of Meeting Letter to Shareholders Proxy Form Shareholder Question Form Online Guide from Link Market Services Perpetual Annual Report 2020 Sustainability Report Yours faithfully, Sylvie Dimarco Company Secretary (Authorising Officer) For personal use only Page 1 For personal use only ENDURING PROSPERITY Annual Report 2020 Perpetual Limited Annual Report 2020 ENDURING PROSPERITY Our purpose reflects our heritage and culture and underpins everything we do. As one of Australia’s oldest companies with a rich heritage dating back to 1886, we have supported our clients through periods of great change for more than 130 years. We are proud of our past and passionate about creating a sustainable future for our clients, our people and the communities in which we operate. Our purpose is to build enduring prosperity and across our three businesses – Perpetual Investments, Perpetual Private and Perpetual Corporate Trust – our clients remain our priority. Our goal is to provide exceptional products and services, while seeking to protect and grow our clients’ wealth, knowing that by doing so we can make a difference in their lives. Our people are integral to this goal – empowering our business to deliver to clients and being regarded as one of the most trusted brands in financial services. As we attract, develop and inspire the best people, they can thrive in a culture that is built on trust, collaboration and innovation and be proud of the work they do. As the trustee for many charitable trusts and endowments, we are proud to support the community, helping philanthropists to give with lasting impact and enabling not-for-profit organisations to become more sustainable and deliver social SHAREHOLDER CALENDAR outcomes over the long term. Final dividend payment We are here to serve our clients, inspire our people, and use our 25 September 2020 influence to support a sustainable future for our communities, Annual General Meeting while delivering growth for our shareholders. 15 October 2020 For personal use only Enduring prosperity is what we strive for today, and every Interim profit and day – for our clients, our people and our communities. dividend announcement 18 February 2021 TRUST IS EARNED, EVERY DAY Final profit and We have been earning the trust of our clients for more than dividend announcement 130 years and pride ourselves on our long-standing client 19 August 2021 relationships – some of which span five generations. Please note these dates are subject to change. $173.4m Perpetual 06Investments 02 $183.0m $ FY20Perpetual GROUP RESULT YEAR IN REVIEW 489.2m Private A summary of our Business highlights OPERATING $125.5m REVENUE headlinePerpetual financial results. for FY20. Corporate Trust $7.3m Group Support Services 04 12 CHAIRMAN’S COVID-19 RESPONSE REPORT How our business A message from responded to the our Chairman, pandemic. Tony D’Aloisio. 20 08 SUSTAINABILITY CEO’S REPORT At Perpetual, sustainability Our CEO, Rob Adams, is about creating enduring reports on our results prosperity for our clients, and business over FY20. people, communities and the environment. REPORTING SUITE CONTENTS Perpetual presents its 2020 Annual Reporting 2 FY20 at a Glance Suite for the year ended 30 June 2020. 4 Chairman’s Report 6 FY20 Group Result 8 CEO’s Report 12 COVID-19 Response ENDURING PROSPERITY CORPORATE Annual Report 2020 GOVERNANCE STATEMENT For the Year Ended 30 June 2020 14 Business Unit Overview ENDURING PROSPERITY 2020 Sustainability Report 20 Sustainability 22 Directors’ Report 30 Remuneration Report For personal use only Annual Corporate Sustainability 60 Operating and Financial Review Report Governance Report 83 Financial Report Statement 143 Securities Exchange and Investor Information Our reporting suite is available online: perpetual.com.au/reporting-suite PERPETUAL ANNUAL REPORT 2020 1 AT A GLANCE Enduring prosperity is at the heart of everything we do. July 2019 ENDURING LITERARY SUPPORT: MILES FRANKLIN LITERARY AWARD Indigenous novelist Melissa Lucashenko is awarded the 2019 Miles Franklin Literary Award for Too Much Lip. Perpetual is trustee of the Award, which has provided more than 19 $1.2 million to Australian authors since 1957. September 2019 BEST MULTI-STRATEGY FUND Perpetual Private wins Best Multi-Strategy Fund for the second year in a row for the Hedge Funds Rock Australian Alternative Investments Awards for the Perpetual Income Opportunities Fund. Photo by Belinda Rolland October 2019 December 2020 PERPETUAL DIVERSIFIED REAL ENHANCED BUSINESS INTELLIGENCE RETURN FUND ACCOLADE PLATFORM Perpetual Investments wins the Multi Asset Perpetual Corporate Trust extends its Business – Real Return category at the 2019 Zenith Intelligence Platform with new digital securitisation Fund Awards for the Perpetual Diversified and treasury solutions aimed at supporting Real Return Fund1. securitisation clients. November 2019 TRUSTEE OF THE YEAR For the fourth consecutive year, Perpetual Corporate PERPETUAL ACQUIRES PRIORITY LIFE Trust wins Australian Trustee of the Year in the Priority Life, a Melbourne based specialist risk KangaNews Awards. advisory business with a strong focus on medical practitioners, professionals and business owners is acquired by Perpetual. For personal use only 1. The Zenith Fund Awards were issued 11 October 2019 by Zenith Investment Partners (ABN 27 130 132 672, AFSL 226872) and are determined using proprietary methodologies. The Fund Awards are solely statements of opinion and do not represent recommendations to purchase, hold or sell any securities or make any other investment decisions. To the extent that the Fund Awards constitute advice, it is General Advice for Wholesale clients only without taking into consideration the objectives, financial situation or needs of any specific person. Investors should seek their own independent financial advice before making any investment decisions and should consider the appropriateness of any advice. Investors should obtain a copy of and consider any relevant PDS or offer document before making any investment decisions. Past performance is not an indication of future performance. Fund Awards are current for 12 months from the date awarded and are subject to change at any time. Fund Awards for previous years are referenced for historical purposes only. 2. NPS scores may be restated to incorporate acquisitions or changes to client segmentation within business units to allow for direct comparison year on year. The FY19 NPS score was restated from 39 to 40 to reflect the acquisition of RFi Roundtables in PCT and the addition of the Not-for-Profit client segment within Perpetual Private. 3. USD denominated Funds under Management translated at AUD:USD 0.69 at 30 June 2020. 4. Chuck Thompson was appointed in March 2020. 2 March 2020 SUPPORTING THE MORTGAGE INDUSTRY Perpetual Corporate Trust supports Firstmac with its $1 billion Residential Mortgage Backed Securities transaction to enable it to continue writing home loans for Australians. Firstmac is the first Australian company to successfully tap funding markets since COVID-19 20 caused widespread fears of a liquidity squeeze. February 2020 PERPETUAL RESPONDS TO COVID-19 Perpetual makes a seamless transition, moving EMPLOYER OF CHOICE FOR GENDER EQUALITY 95% of its people to remote working under its Crisis FOR THE THIRD YEAR Management Plan, while continuing to deliver to clients. For the third year running, Perpetual is granted the Employer of Choice for Gender Equality citation by the Workplace Communication highlights Gender Equality Agency. – Dedicated COVID-19 website hub: over 90,000 unique visits – Our social media channels: 123,000 impressions – 259 different client communications – 24 all-employee communications NEW CHIEF OPERATING OFFICER Amanda Gazal appointed to the newly June 2020 created role of Chief Operating Officer. ESG LEADER TRILLIUM JOINS PERPETUAL Perpetual completes the acquisition of Boston-based specialist environmental, social and governance (ESG) May 2020 investment firm Trillium Asset Management, with over AUD$5.6 billion3 in Funds under Management, and CLIENT ADVOCACY CONTINUES continues to drive Trillium’s distribution capability ITS POSITIVE TRAJECTORY following the appointment of Chuck Thompson4, Head Client advocacy scores for Perpetual, as measured by of Distribution & Strategy – Americas. The firm offers Net Promoter Score, increase from +40 in FY19 to +45 equity, fixed income and alternative investment strategies 2 in FY20 , reflective of our commitment to building deep promoting social and environmental change with the goal of client relationships and exceptional service. providing both impact and long-term value to its investors. PERPETUAL NET PROMOTER SCORE (NPS) For personal use only FY18 +34 FY192 +40 FY20 +45 TOP ADVISERS RECOGNISED Five Perpetual Private advisers are named in this year’s Barron’s/The Australian Top 100 Financial Advisers list, testament to our unrelenting client focus and commitment to exceptional service. PERPETUAL ANNUAL REPORT 2020 3 CHAIRMAN’S REPORT Notwithstanding the challenges of this year and the disappointing impact on our overall performance, our strength and resilience have allowed us to continue