Perpetual Limited — Investor Presentation 2004

Sep 23, 2004

Perpetual Global Equities Strategy

Analyst Briefing 24 September 2004

Perpetual will greate its own global equities DUSIRY

Business strategy includes:

• Manufacture a focused range of global equities products
• · Distribution of these products to:
• Retail and institutional investors in Australia
• •Institutional investors outside of Australia

Perpetual Trustees Australia Ltd.

Key points: Perpetual Global Equities

• Secured outstanding Global Equities investment capabilities based in Dublin
• Strategy incorporates the best of "Greenfield" and "acquisition" options
• Supports Perpetual's new strategy for developing new growth engines and balancing the portfolio
• Fidelity alliance ends when Perpetual's Global Equities team assumes management of funds in early 2005
• Perpetual Global Equities business expected to be profitable in second full year of operations
• One-off significant items c.\$20m (pre-tax) in 2005. Significant items include:
• Establishment costs of c.\$15m
• Start-up operating losses of c.\$5m
• Significant items expected to be fully offset by profits from the sale of non-strategic assets (e.g. share portfolio) with no reduction in 2005 OPAT
• 2005 dividend payments of 90% of NPAT before goodwill will not be impacted by the 'global equities significant item'

2

Implementing our Strategy

Perpetua

3

Build capability in new investment skill sets

Skill set	Hich breadth					Low breadth
Domestic Stock Picking	Broad	Styles	Small ©©©6.	Hedge Funds	Private Equity
Mortgage Lending		Mortgagos	Mezz Debt		Recently
LPT Stock Picking		Global	Domestic		FICCO
Infrastructure Investing				Tioffee- structure	Capability
Quantitative Investing	Global	Domestic		Hedge Eunds		Currency/ TAYA
Credit Investing		Global	Domestic	Hybrids
Global Stock Picking	Broad	Styles		Heage Funds	Emerging Markets
Global Thematic				Hedge Funds	Broad
Direct Property Investing				Direct Property
Duration Management						Vanilla Bonds

$\overline{4}$

Adding a global stock picking capability

Skill set	High breadth					Low breadth
Domestic Stock Picking	Broad	Styles	Smell Cajos	Hedge Funds	Private Equity
Mortgage Lending		Mortgages	Mezz Debt
LPT Stock Picking		Global	Domestic		Global
Infrastructure Investing				Infra- structure	Equities
Quantitative Investing	Global	Domestic		Hedø Fy A ds		Currency/ TAA.
Credit Investing		Global	Domesticz	Hybrids
Global Stock Picking	Bioad	Styles		√Hedge F unds	Emerging Markets
Global Thematic				Hedge Funds	Broad
Direct Property Investing				Direct Property
Duration Management						Vanilla Bonds

5

Global equities breshis a significant Opportunity for Parpatual

Global equities is a very large market...

... with growing market share in Australia

Australian asset allocation in Global equities (% of total)

We AZ A Reise Carolici Britan Cave Good Autobal GOURIAS CODODIRY

Hiring proven capabilities was the best option TOP 240 21 V

DA A DE E PA METAL A CIOS DE E E E E E E E E E E E E E OUIS RENCHIC MARIE STORO CONURCI TI

Philosophy aligned with Parianal

• Bottom-up stock pickers
• Strong investment results $\bullet$
• Value bias

$\bullet$

Leaders of a team with a consistent record of outperformance

• Worked together for the last ten years
• Industry experience average exceeds 22 years
• Team based decision making no star system
• 4.7% p.a. out-performance over 15 years $\bullet$
• 1st or 2^nd quartile in 81% of rolling 3 year periods since 1987 $\bullet$

• Small self-contained team
• Investment processes similar to Perpetual's

Bank of Ireland Asset Management has over A\$75B in global equities Over A\$4.3B sourced from Australia

Newest indig beis to the Paristal asset inahaganan kar

U #		es Sullivan
			20622

• Deputy Chief Investment Officer at Bank of Ireland Asset Management
• Product Head EAFE (Europe, Asia, Far East) product Global equities without US exposure - usually sold to US clients looking for non-US exposure
• Part of the Bank of Ireland's Asset Management team since 1994

• Deputy Chief Investment Officer at Bank of Ireland Asset Management
• Product Head Global usually sold to non-US clients looking for global exposure
• Part of the Bank of Ireland's Asset Management team since 1987

• Senior Equity Manager, Bank of Ireland Asset Management
• Part of the Bank of Ireland's Asset Management team since 1985

• Senior Equity Manager, Bank of Ireland Asset Management
• Part of the Bank of Ireland's Asset Management team since 1995

PATOGRE MATITIER MEN ARABIC PROTECTION Th Dublin

Senior leadership from Perpetual Australia moving A DIHIN

• Des Sullivan and John Nolan will be Chief Investment Officers for Perpetual Global Equities - responsible to Emilio Gonzalez, Perpetual CIO
• Richard Kelly and John Forde Senior Portfolio managers
• 4 of 8 positions filled more junior (equity analyst and portfolio construction) positions to be filled shortly
• Rory MacIntyre appointed Head of Business
• National Sales Executive of Perpetual Investments
• Joined Perpetual in 1995
• Irish born and Irish business experience
• Patti Eyers appointed Head of Finance and Administration
• General Manager Group Finance of Perpetual Trustees
• Sales, service and operations functions directly reporting to Rory MacIntyre
• Finance, compliance, systems and administration functions reporting to Patti Eyers
• Remaining positions to be filled from the local region

LongHeim incentive program

• \$28m in PTAL shares issued to the investment team and to be held in trust
• Vesting subject to achievement of revenue targets
• Range of outcomes: \$0 to \$28m
• Vests over seven years
• Issue price determined as the weighted average price of PTAL shares in the five trading days prior to signing of employment contracts

TIATO TOGEL VAZ LETA TA TA

• Sep 04: Perpetual announces Global Equity strategy
• Sep 04: Irish company formed and execution of strategy begins
• Nov 04: Investment managers join Perpetual
• Feb 05: Business license approved in Ireland
• Feb 05: New Perpetual Global Equities business assumes management of Perpetual's Global Equities

Perpetual Global Equities Strategy

Analyst Briefing 24 September 2004