Bell Financial Group Limited · ASX:BFG
Bell Financial — Bell Potter Emerging Leaders Conference 2018
22 slides from Bell Financial's conference presentation, Oct 24, 2018
Slide 1: Presentation – Bell Financial Group Limited (ASX Release)
ASX RELEASE. 24 October 2018 ASX Market Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 Via ASX Online PRESENTATION – BELL FINANCIAL GROUP LIMITED Attached is a copy of the presentation to be given by the Managing Director this morning at the Bell Potter Emerging Leaders Conference
Slide 2: Bell Financial Group (ASX:BFG)
BELL FINANCIAL GROUP (ASX:BFG) An Australian owned provider of stockbroking, investment and financial advisory services to private, institutional and corporate clients October 2018
Slide 3: Contents
CONTENTS 1 Overview 3 2 Corporate Structure & Businesses 5 3 Growth Strategy 13 4 Financial Summary 16 5 Market Update 18 2
Slide 4: Overview
OVERVIEW 3
Slide 5: Bell Financial Group is a leading Australian financial services business
OVERVIEW Bell Financial Group is a leading Australian financial services business Established in 1970 and publicly listed in 2007, Bell Financial Group is an Australian owned provider of stockbroking (full service and online) and investment and financial advisory services to private, institutional a
Slide 6: Corporate Structure & Businesses
CORPORATE STRUCTURE & BUSINESSES 5
Slide 7: Corporate Structure & Businesses
CORPORATE STRUCTURE & BUSINESSES 100% 100% 100% Third Party Bell Potter Capital Limited Platform Pty Ltd Bell Potter Securities Limited Margin lending - online retail broking Retail Equities Cash accounts Institutional Equities - intermediary online broking International Equities White label - onlin
Slide 8: Management
MANAGEMENT A deliberately flat management structure that is experienced, stable and has a substantial shareholding in the business BELL FINANCIAL GROUP BOARD Colin Bell Alastair Provan Craig Coleman Graham Cubbin Brian Wilson AO Brenda Shanahan Executive Chairman Managing Director Non-Executive Dire
Slide 9: Bell Potter Securities (BPS)
BELL POTTER SECURITIES (BPS) 350 Advisers servicing 460,000 retail, BROKERAGE REVENUE ECM REVENUE ($M) wholesale and institutional clients generating (RETAIL & WHOLESALE) ($M) 60 $92.6 million in brokerage revenue in 2017. 54.7 100 92.6 85.5 85.8 1H 2018 revenue was $48.3 million, 5% 90 50 46.3 75.9
Slide 10: Third Party Platform (TPP)
THIRD PARTY PLATFORM (TPP) Third Party Platform is now 100% owned by BFG On 3 July 2018 BFG acquired the 43.37% of TPP that it did not already own, taking its ownership to 100% The acquisition received very strong support with 99.7% of eligible shareholders voting in favour of the acquisition The tr
Slide 11: Third Party Platform (cont.)
THIRD PARTY PLATFORM (cont.) Third Party Platform operates three core businesses: TPP operates across three offices located in Sydney, Perth and Kuala Lumpur 1. Online market access 2. Wholesale market 3. White Label solutions and services for private e.g. dealer groups and provided to Bell Potter T
Slide 12: Bell Potter Capital
BELL POTTER CAPITAL Established in 2006 NET REVENUE ($M) LOAN & CASH BOOK ($M) The only non-bank margin 12 350 lender 300 10 9.6 $315 million loan book 250 7.8 $278 million cash book 8 6.9 6.6 6.5 200 Conservatively managed 6 5.2 150 4.5 • 30% average LVR 100 across the loan book 4 50 • No bad debts
Slide 13: Funds Under Advice (FUA)
FUNDS UNDER ADVICE (FUA) Of the $49 billion FUA at 30 June 2018, $5 billion consisting of Cash, Superannuation, Margin Loans and Portfolio Administration, generate recurring revenue FUNDS UNDER ADVICE ($B) CHESS SPONSORED HOLDINGS ($B) PAS ($B) 60 Bell Potter TPP 3 2.7 2.8 47.2 49 50 50 2.5 2.3 43.7
Slide 14: Growth Strategy
GROWTH STRATEGY 13
Slide 15: Strategy: Recurring & Low Touch Revenues
STRATEGY: RECURRING & LOW TOUCH REVENUES Recurring and low touch revenue is a RECURRING AND SOFT TOUCH REVENUE ($M) key growth area for us 50 50 The Group generated recurring revenues of $50 3.4 43.5 million in 2017, representing approximately 25% 45 3.1 of total gross revenues 40 36.1 36.6 38.7 16.
Slide 16: Strategy: Technology
STRATEGY: TECHNOLOGY Our investment in technology continues to differentiate us from our competitors We expect our proprietary platforms will not only enable the release of material cost benefits but will create meaningful revenue generating opportunities Proprietary platforms, which we are continuo
Slide 17: Financial Summary
FINANCIAL SUMMARY 16
Slide 18: Financial Summary
FINANCIAL SUMMARY A track record of growth over an extended period A solid cash backed balance sheet with no core operating debt REVENUE ($M) NPAT ($M) EARNINGS PER SHARE (CENTS) 250 25 9 209 20.6 7.8 8 200 178 187 20 16.4 7 6.2 6.2 159 155 15.9 6 150 15 5 101 9.8 3.7 88 4 100 10 2.7 6.8 3 2.3 2.2 5
Slide 19: Market Update
MARKET UPDATE 18
Slide 20: Market Update (9 months to 30 September 2018)
MARKET UPDATE (9 months to 30 September 2018) NPBT ($M) Unaudited revenue for the REVENUE ($M) 9 months to 30 September was 180 169 30 27.5 160 $169 million, 26% ahead of the 134 25 140 previous corresponding period 120 101 20 (p.c.p) ($134 million) 100 88 14.2 15 12.9 80 60 10 8.5 ECM contributed $
Slide 21: Market Update
MARKET UPDATE BFG SHARE PRICE ($A) Market capitalisation $311m Dividend yield (gross)1 12.1% $1.20 BFG Share Price $1.00 Price earnings ratio (PE)2 12.7x $0.80 1 based on final 2017 and the interim 2018 dividends paid over the BFG share price at 22nd October 2018 2 based on market capitalization at
Slide 22: Important Disclaimer
Important Disclaimer The material contained in this presentation has been prepared by Bell Financial Group Limited ABN 59 083 194 763 (Bell Financial Group) and is general background information about the businesses, operations and activities of Bell Financial Group and its subsidiaries, current as
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