Centuria Capital Group · ASX:CNI
Centuria Capital — Over Fifty Group — H1 FY2009 Earnings Presentation
23 slides from Centuria Capital's earnings presentation, Mar 13, 2009
Slide 1: 2008/09 Financial Half Year Results Presentation
2008/09 Financial Half Year Results Presentation March 2009 John McBain – Chief Executive Officer & Matthew Coy – Chief Financial Officer
Slide 2: Contents
Contents • Key Issues • Outlook • Strategy • Summary of Financial Position • Selected Assets held on Balance Sheet • Strengthening Income Stability • Reduction of Corporate Expenses • Property Assets and Funds Management • Friendly Society Operations • Reverse Mortgage Book • Other Business Units/Su
Slide 3: Key Issues
Key Issues • Operating Profit $2.54 million after tax • Substantial Funds under Management Property $0.954 bill Friendly Society & Guardian Funds $0.793 bill Reverse Mortgage Book $0.218 bill Total FUM $1.965 bill • Whilst trading conditions for financial services companies are challenging, OFG majo
Slide 4: Outlook
Outlook It is generally accepted that globally, economies are very stressed and some major countries for example the US are in recession. Whilst itself under stress, the Australian economy seems better placed to fare in these tough conditions than many other economies for a variety of reasons includ
Slide 5: Outlook (cont'd)
Outlook (cont’d) How Does This Impact the Over Fifty Group’s Core Activities? Friendly Society Operation The current financial climate brings the challenge of continuing to deliver appropriate returns to members in difficult market conditions. Whilst our smaller growth bond funds have performed in l
Slide 6: Strategy
Strategy The outlook, while challenging, will provide opportunities for OFG. OFG must combine the unique attributes available across the group, positioning OFG to introduce new investment funds which generate recurring management revenue to the group. Examples of these initiatives are; • Utilise cre
Slide 7: Method of Accounts Preparation
Method of Accounts Preparation • Australian International Financial Reporting Standards compels Over Fifty Group (OFG) to consolidate the accounts of the Friendly Society benefit funds, managed by OFG, with OFG’s corporate accounts for the purposes of statutory reporting • The practical result of th
Slide 8: Summary of Financial Position - 6 months to 31.12.08
Summary of Financial Position - 6 months to 31.12.08 • Operating Profit $2.5 million • Reported Statutory Profit $(9.9) million – arising from; – Further doubtful debt provisions relating to legacy commercial mortgages – Fair value adjustments to property assets held for sale and investment in unlis
Slide 9: Operating Results (excl. Friendly Society Benefit Funds)
Operating Results (excl. Friendly Society Benefit Funds) Half Year ended 31 Half Year ended 31 % Change Dec 2008 Dec 2007 $000’s $000’s Operating Earnings before interest and tax by major division Property Funds Management (421) 3,851 Property Investments 413 (96) Reverse Mortgages 1,807 (998) Frien
Slide 10: Operating Revenue Analysis
Operating Revenue Analysis (excluding Benefit Funds) Half Year ended Half Year ended % Change 31 Dec 2008 31 Dec 2007 $000’s $000’s Revenue Property Funds Management, Acquisition 2,414 6,606 & other success fees 1 Property Investment 2,282 1,135 Reverse Mortgages 2 10,650 6,569 Friendly Society 3 7,
Slide 11: Balance sheet as at 31 December 2008
Balance sheet as at 31 December 2008 Statutory accounts Benefit funds Corporate accounts ($m) ($m) ($m) Assets: 19.0 7.6 11.4 Cash and equivalents 6.3 0.7 5.6 Trade and other receivables 590.9 590.8 0.1 Financial assets at fair value 0.2 0.2 - Derivative financial assets Other financial assets 25.0
Slide 12: Balance sheet as at 31 December 2008 (cont'd)
Balance sheet as at 31 December 2008 (cont’d) Statutory accounts Benefit funds Corporate accounts ($m) ($m) ($m) Liabilities: Trade and other payables 7.2 0.2 7.0 Borrowings – Corporate 21.0 - 21.0 Borrowings – Property Assets (non recourse on OFG group) 39.7 - 39.7 Borrowings - Reverse Mortgages (n
Slide 13: Selected Assets Held on Balance Sheet
Selected Assets Held on Balance Sheet Fair Valued at 31 December 2008 31 December 2008 30 June 2008 ($mil) ($mil) Moonah and Torquay, Vic – Contracted in Dec 2004 30.4 31.6 Chisholm, ACT – Acquired Nov 2004 20.7 19.6 Receivable Commercial Mortgages 14.3 16.0 Investment in: - Unlisted Property Trust
Slide 14: Strengthening Income Stability
Strengthening Income Stability Recurring income versus Success income $000’s 6 mths 6 mths 6 mths Dec 08 Jun 08 Dec 07 Recurring income Friendly Society Management fees 7,902 8,723 9,426 Property & Property asset management fees 2,352 2,418 2,420 Reverse Mortgages 10,650 8,750 6,569 Rent from assets
Slide 15: Reduction of Corporate Expenses
Reduction of Corporate Expenses (major expense reduction for 6 months 31 December 2007 v 31 December 2008) 6 months to 31 6 months to 31 % Change December 2008 December 2007 $000 $000 Staffing 1,995 2,835 (29.6%) Finance Expense (excluding Reverse 2,829 3,155 (10.3%) Mortgage) Consulting and Profess
Slide 16: Property Assets Held on Balance Sheet
Property Assets Held on Balance Sheet The current board and management are working through three legacy property assets either previously existing on balance sheet or subject to an unconditional acquisition contract. The current management intends to dispose of these assets and repatriate the equity
Slide 17: Property Funds Management
Property Funds Management Highlights • Total property funds under management have decreased from $930 million as at 30 June 2008 to $903 million as at 31 December 2008 (including Eclipse Property Group FUM). • In the last 3 months (to March 2009) 54% of the portfolio (by number of properties) has be
Slide 18: Property Funds Management Highlights (cont'd)
Property Funds Management Highlights (cont’d) • Century achieves strong rental growth following market reviews Century has achieved a solid rental increase for the Officeworks’ office and distribution facility at North Rocks, one of the two properties comprising Bankminster Property Trust No 9. The
Slide 19: Friendly Society Operations
Friendly Society Operations Friendly Society management is a core business activity of OFG. Recurring Friendly Society management fees was a major contributor to Group revenues for the period. The benefit funds of the Friendly Society are separate and distinct from the Over Fifty Group corporation.
Slide 20: Friendly Society Operations (cont'd)
Friendly Society Operations (cont’d) Friendly Society Benefit Funds • Total Benefit funds under management as at 31 December 2008 were $793.4 million. • This represents a decrease of $168.4 million or 17.5% from 31 December 2007. • Table of Policy holders reflects an aggregate increase of 2.4% from
Slide 21: Reverse Mortgage Book
Reverse Mortgage Book • Cessation of new lending thereby capping the value of the portfolio to circa $220 m. • Division now being administered by a full time equivalent of 4 staff and hence has been a strong profit contributor for the 6 months to 31 December 2008. • Loan profile as at: Number of loa
Slide 22: Other Business Units/Subsidiaries
Other Business Units/Subsidiaries Insurance Division •Insurance agency business with Allianz continued and in 12 months to 31.12.08 total premiums written through OFG agency were $8.468 mill, up 4.8% from previous 12 months. Gross commissions earned were $1.06 mill, up 4.4%. Total introduced policyh
Slide 23: Disclaimer
Disclaimer This document has been issued by Over Fifty Group Limited ABN 22 095 454 336 and contains general information about Over Fifty Group Limited and its related bodies corporate (Over Fifty Group) which is current as at 13 March 2009. The information in this document is in summary form and do