Slide 1: FY 18-19 Results Investor Presentation
FY 18-19 RESULTS INVESTOR PRESENTATION Indy Singh – Executive Chairman, Fiducian Group Rahul Guha – Executive Chairman, Fiducian Services Fiducian Group (ASX:FID) 15 August 2019 1
Slide 2: Fiducian Group Investor Presentation
Fiducian Group Investor Presentation • FY 2019 Highlights • Business Overview • Financials • Growth Strategy and Business Outlook • Key Dates and Contacts • Annexures 2
Slide 3: FY 2019 Highlights
FY 2019 Highlights *(FUMAA) – Funds Under Management, Advice and Administration | (FUA) – Funds Under Advice HIGHLIGHTS 3
Slide 4: Profit Generating Sustainable Business Model
Profit Generating Sustainable Business Model Management • Process driven, client focused investment products Funds • 15 Managed Funds: 4 Diversified Funds, 4 Sector Funds, 7 Specialist Funds • $2.66 Billion in Funds under Management (FUM) • Market competitive Wrap & Managed Discretionary Accounts (M
Slide 5: Funds Management
Funds Management • 15 Funds using Fiducian’s Manage-the-Manager (MTM) system of investment • Select expert Managers – with proven performance, differing investment processes / styles • Combine experts with different weightings – up to 45 Fund Managers • Dynamic asset allocation and continuous manage
Slide 6: WRAP Platforms
WRAP Platforms (FSSWRAP Platforms (FSS/FIS) – FinTech (FORCe & FASTrack) • Competitive Fees, Flexible Structure • Public offer “Superannuation Fund” • Investor Directed Portfolio Service (IDPS) • 15 – Multi-manager Funds using the Fiducian Manage-the-Manager system • 51 – Single Manager Fund Choices
Slide 7: Financial Planning – Focus on Quality and Expertise
Financial Planning – Focus on Quality and Expertise • We are selective in recruiting Financial Planners • National footprint with 41 offices, 67 representatives • 32 Franchised offices • 9 Salaried offices • $219 million FUA acquisitions in FY19 * * Excludes acquisition of MyState’s retail financial
Slide 8: Integrated Business Model
Integrated Business Model Our clients experience the Fiducian difference: Financial Planning Administration / Platforms Funds Management Funds: $2.70 billion Funds: $2.03 billion Funds: $2.56 billion Revenue: $17.4 million Revenue: $14.4 million Revenue: $17.6 million Full Year Gross Revenue $49.4 m
Slide 9: Financial Highlights
Financial Highlights FINANCIALS 9
Slide 10: FY 2019 Results: 15% UNPAT Growth
FY 2019 Results: 15% UNPAT Growth • Revenue increase from Organic & Inorganic inflows plus increased financial market valuations • Fund Management, Administration and Financial Advice performed strongly • Service provider costs increased in line with higher revenue • Staff and Other costs increase t
Slide 11: Segment Results
Segment Results Funds Revenue for the full-year is $17.6 mil on average FUM $2.4 bil Top quartile performance has driven significant inflows Management Benefitting from scaled fees from underlying managers Platform Revenue for the full-year is $14.0 mil on average FUAdm $1.9 bil Administration Other
Slide 12: FID outperformance against All Ords Accum Index
FID outperformance against All Ords Accum Index FID vs All Ords Growth FID + 637% • Since Jun 12, FID has (incl Dividends) outperformed All Ords by 670% 517% (including dividend) • Dividend pay-out policy is 570% 60-70% of Net Profit After Tax 470% • Double digit EPS growth in 15 out of 19 years Gro
Slide 13: Growth Strategy Outlook
Growth Strategy Outlook Funds Leverage of successful Manage-The-Manager Management model and expand in new markets where profitable Distribute SMA capabilities, offer Badged solutions Administration to IFA market and build SMSF Administration Financial Continue to attract high quality planners and e
Slide 14: Business Outlook – Revenue Streams
Business Outlook – 3 Revenue Streams Revenue Growth is a function of volume of FUMAA Example: Financial Platform Funds Under Planning FUMAA 3 Admin Management Advice Growth Revenue increase Increases $100 increases $300 mil Streams $100 mil mil $100 mil Plus, additional revenue growth if financial m
Slide 15: Projecting the Potential: Conceptual Representation
Projecting the Potential: Conceptual Representation The following is a concept extrapolation* of how increasing scale lifts EBITDA at an accelerating rate above a relatively fixed cost base: Funds under Management, Administration and Advice (FUMAA) & EBITDA * This is not a projection or a forward-lo
Slide 16: Industry Consolidation and Opportunities
Industry Consolidation and Opportunities • Grow Funds Under Advice organically and through strategic acquisitions of financial planning businesses • A number of established participants are exiting or have announced their intentions to exit the industry • New educational standards may expedite advis
Slide 17: Key Dates and Contacts
Key Dates and Contacts Key Dates • Record date for final dividend: Wednesday, 28 August 2019 • Final dividend payment date: Wednesday, 11 September 2019 • Annual General Meeting: Thursday, 17 October 2019 Contacts Investor Relations: Media Relations: Rahul Guha, Julie Hargrave, Executive Chairman, F
Slide 18: Five Year Summary: Financials
Five Year Summary: Financials Sustainable growth history consistently over long term ANNEXURES 18
Slide 19: Five Year Summary: Revenue and EPS Growth
Five Year Summary: Revenue and EPS Growth Top-line Revenue Growth: 20% annualised EPS Growth: 20% annualised Sustainability: Double-digit Growth in 15 out of 19 years since listing ANNEXURES 19
Slide 20: Five Year Summary: Expense Management
Five Year Summary: Expense Management Expanding Jaws: Revenue growth faster than Expense growth Improving Cost To Income (CTI) Ratio: From 62% in 2015 to 56% in 2019 Carefully managed expenses to support growth in infrastructure and revenue generating functions ANNEXURES 20
Slide 21: Dividends Growth
Dividends Growth • $1,000 invested in July 2013: 23% current year yield 20% Annualised Dividend growth ANNEXURES 21
Slide 22: Five Year Summary: Balance Sheet
Five Year Summary: Balance Sheet • Stable Cash position in excess of regulatory requirement of $5.1 mil to support growth initiatives • Significant reinvestments into business: $7 mil spent on client acquisitions in FY19 • Net Assets Growth 10% annualised ANNEXURES 22
Slide 23: Net Fund In-Flows in Platform
Net Fund In-Flows in Platform • Net In-flows of $105 million during YTD June FY 2018-19 • Both Salaried and Franchised networks contributing to the Inflows • Combination of organic flows from active referrals and inorganic flows from strategic acquisitions ANNEXURES 23
Slide 24: Funds Under Management, Administration and Advice (FUMAA) Growth
Funds Under Management, Administration and Advice (FUMAA) Growth Consistent FUMMA growth contributed by strong organic and inorganic inflows and market improvements. $219 mil acquisition announced by Fiducian for Franchisees and salaried offices in FY19 Increase in FUA as proportion of FUMA re
Slide 25: FUMAA Yearly average Growth
Funds Under Management, Administration and Advice (FUMAA) Yearly average Growth ANNEXURES 25
Slide 26: Fiducian Offices
Fiducian Offices NSW Bathurst Gosford Nowra Taren Point Bondi Hunter Randwick Windsor Bondi Junction Macarthur Southern Highlands Wynyard Caves Beach Maitland Sydney CBD Wollongong Coffs Coast Newcastle Tamworth Queensland Tasmania ACT Bayside Noosa Hinterland Devonport Canberra Buderim Sunshine Coa
Slide 27: Disclaimer
Disclaimer Information in this document and given in the presentation is of a general nature. It is not intended to be, nor does it, constitute financial, legal or tax advice. The information is given in good faith and, although care has been exercised in compiling it, Fiducian Services Pty Limited