Cog Financial Services Limited · ASX:COG
Cog Financial Services — H1 2025 Earnings Presentation
32 slides from Cog Financial Services's earnings presentation, Feb 26, 2025
Slide 1: 1H 2025 Results
1H 2025 Results 26 February 2025 Authorised by Andrew Bennett Group Chief Executive Officer
Slide 2: 1HY 2025 Financial Highlights
1HY 2025 Financial Highlights COG’s performance for the 1HY 2025 Revenue1 EBITDA to shareholders2 $251.0m $18.6m +7% on pcp -1% on pcp NPATA to shareholders2 EPSA2 $11.8m 5.98cps 3% on adjusted pcp 3 -10% on pcp -6% on pcp 1. Underlying revenue excludes interest income (1H25 $2.0m, 1H24 $1.7m). Prio
Slide 3: 1HY 2025 Financial Highlights (cont.)
1HY 2025 Financial Highlights COG’s performance for the 1HY 2025 (cont.) Strong growth from our Novated Leasing segment continues Our primary sectors in the market, infrastructure and construction, continued to hold up strongly in the 1HY 2025, despite the end of the instant tax write off incentive
Slide 4: EPSA and dividends
1HY 2025 Financial Highlights EPSA and dividends Cents per share Dividend declared of 3.0 cps (1H24: 4.0 cps ) 1 1 Payout ratio of 2 7.22 8.30 8.40 8.40 51.2% (1H24: 60.9% ) 2 Dividend yield 3.00 3 1.52 of 3.1% Nil Dividend yield grossed up for franking benefit To continue to ensure effective capita
Slide 5: COG continues to build on its history of successful acquisitions and integration
Executing with Excellence COG continues to build on its history of successful acquisitions and integration Growth through more verticals 11 Broking and 5 Novated 3 Asset 1 Financial Aggregation Leasing Management Advisory & Lending Linx beCarWise Westlawn Centrepoint Alliance (20%) Heritage Fleet Ne
Slide 6: A growing national business
Executing with Excellence A growing national business Nationally: 792 Broker firms 1,766 Brokers 9,719 Novated Lease Customers NT 46,367 Salary Packaging Customers 1 Broker firm 1 Broker 1,086 Novated Lease QLD Customers 2,719 Salary Delivering: 168 Broker firms Packaging Customers 488 Brokers 888 N
Slide 7: Strong volumes continue, despite lapping the end of the instant tax asset write off
Executing with Excellence Strong volumes continue, despite lapping the end of the instant tax asset write off in FY 24 -3% vs PCP $ millions $4.2bn net assets financed 4,532 in 1HY 2025 3,405 4,274 2,917 2,154 2,198 1,720 2H 1,403 1,604 3,284 3,404 4,321 4,203 2,041 2,365 2,242 1H 1,344 1,524 1,631
Slide 8: Summary of Group financial results
Executing with Excellence Summary of Group financial results 1H251 1H241 Pcp Revenue growth of $17.1m includes organic growth from the novated lease segment (+$11.9m), an increased contribution from $m $m Change asset management & lending activities (+$8.6m) and contribution Revenue 2 251.0 233.9 7%
Slide 9: Underlying NPATA to Shareholders
Executing with Excellence Underlying NPATA to Shareholders In $ millions +3% +8.7% +9.3% +3.8% 9
Slide 10: Underlying NPATA to Shareholders by segment
Executing with Excellence Underlying NPATA to Shareholders by segment In $ millions 1H25 1H24 NPATA to NPATA to (-) Less shareholders (-) Less shareholders diminishing before the diminishing before the contribution contribution contribution contribution NPATA to from TL from TL NPATA to from TL from
Slide 11: Segment performance
Segment performance 11
Slide 12: NPATA by segment
Executing with Excellence NPATA by segment $ millions 14.2 Novated Leasing: 13.9 13.4 Strong growth has driven COG's 12.5 12.1 result in recent times. TL Commercial: This operating lease business, which stopped writing new business in FY 20 has generated a diminished contribution. Positively this pr
Slide 13: Australia’s largest asset finance broker and aggregator
Australia’s largest asset Finance Broking & Aggregation finance broker and aggregator 21% Estimated market share1 1 Derived from information contained in the Commercial & Asset Finance Brokers Association of Australia (CAFBA) Aggregator Benchmark Report 2020 and the Australian Finance Industry Assoc
Slide 14: Strong activity despite the end of the instant tax asset write off incentive
Finance Broking & Aggregation Revenue growth of $0.2m includes the contribution from acquisitions of $0.3m. Strong activity despite the EBITDA margin contracted to 9.7% (1H24: 10.6%) as a end of the instant tax asset result of investment in people across the broking and aggregation entities, paving
Slide 15: Novated Leasing and Salary Packaging continue to have strong momentum
Novated Leasing Novated Leasing and Salary Revenue growth of $12.2m includes organic growth (+$11.9m) which continues to be further accelerated by the FBT incentive for electric vehicles and contribution Packaging continue to have from acquisitions (+$0.3m). EBITDA margin decreased to 12.4% (1H24: 1
Slide 16: Assets under management continue to grow
Asset Management & Lending Assets under management continue to grow 1 Revenue growth of $4.7m reflects an increased contribution 1H25 2 1H24 2 Pcp from asset management & lending activities of $8.6m (including $m $m Change organic growth contribution from Equity-One of $1.2m). This 3 growth was part
Slide 17: EBITDA to shareholders
Asset Management & Lending Asset management Equity-One Mortgage Fund Limited has provided a sizable contribution in the half (1H25: $2.5m, 1H24: $2.5m EBITDA to EBITDA to shareholders shareholders). Assets under management & Lending of $967.0m are up 13% on this time last year. $ millions 31 Decembe
Slide 18: A Lending book concentrated on asset backed contracts
Asset Management & Lending A Lending book concentrated on asset backed contracts Lending book Funding • New lease and loan written in the 1H25 totaled $62.2m • Established unsecured notes program operated by (1H24: $71.2m). Westlawn Finance Limited continues to provide a reliable source of funding •
Slide 19: Corporate costs are tightly managed & investments in associates are contributing
Other Corporate costs are tightly managed & investments in associates are contributing 1 1 1H25 1H24 Pcp This Segment includes COG head office activities and $m $m Change our investments in Earlypay Limited (ASX: EPY) and 2 Revenue - - -% Centrepoint Alliance Limited (ASX: CAF). EBITDA (1.0) (2.6) -
Slide 20: Board of Directors and Management Team
About COG Board of Directors Patrick Tuttle Peter Rollason Stephen White Cameron McCullagh Mark Crain Chairman Non-Executive Director Non-Executive Director Executive Director Executive Director Management Team Andrew Bennett Richard Balzer Philip McLeod Chief Executive Officer Chief Financial Offic
Slide 21: Efficient capital management and strong cash position
Capital management Efficient capital management Dividend (continued) For the half-year ended 31 December 2024, the Board declared a fully franked interim and strong cash position dividend of 3.0 cents per fully paid ordinary share (1H24: 4.0 cents per fully paid ordinary share). The total dividend o
Slide 22: Capital management
Capital management Capital raising • On 25 July 2024, the Company issued 1,555,719 fully paid ordinary shares totalling During the period ended 31 December 2024, the Group also acquired (or disposed of) $1.8m as part of the consideration for the acquisition of an additional 5% equity additional inte
Slide 23: Looking Forward
Executing with Excellence Looking Forward • The Group’s Novated Leasing segment continues to deliver outstanding results. We expect significant ongoing organic growth as we continue to capture opportunities in this space and drive uptake with current partner employees. • The Group’s strong balance s
Slide 24: Disclaimer
Disclaimer COG Financial services Limited ('COG’) has not considered the financial position Investors should also note that COG’s past performance, including past share or needs of the recipient in providing this presentation ('Presentation'). Persons price performance, cannot be relied upon as an i
Slide 25: Appendices
Appendices 25
Slide 26: Statutory income statement
Appendices Statutory income statement 1H25 1H24 Pcp $m $m Change Adjustment related to Associates reflects COG’s 21.45% and 19.89% proportionate share of Revenue 1 253.0 235.6 7% Earlypay Limited and Centrepoint Alliance Limited’s EBITDA from core operations 28.3 29.7 -5% amortisation of acquired in
Slide 27: Reconciliation between statutory NPAT and underlying NPATA
Appendices Reconciliation between statutory NPAT and underlying NPATA 1 Members and NCI Members 1H25 1H24 Variance 1H25 1H24 Variance $m $m $m $m $m $m NPAT 13.6 14.9 (1.3) 8.5 9.1 (0.6) Adjustments (after tax): Adjustment related to Associates 0.2 0.1 0.1 0.2 0.1 0.1 Acquisition-related expenses -
Slide 28: Consolidated statement of financial position
Appendices Consolidated statement of financial position As at 31 Dec 30 Jun $m 2024 20242 Cash and cash equivalents increased by $9.5m mainly due to increased Cash and cash equivalents 135.2 125.7 salary packaging client funds during the 1H25. Trade and other receivables 15.3 22.1 Contract assets 3.
Slide 29: Consolidated statement of cash flows
Appendices Consolidated statement of cash flows 1H25 1H24 $m $m Receipts from customers 301.8 272.3 Net cash inflow from operating activities includes $15.4m Payments to suppliers and employees (250.8) (233.9) (1H24: $12.4m) relating to the lease and loan products offered Dividends received 0.8 0.1
Slide 30: Acquisition history
Appendices Acquisition history Interest Date Company Activity Acquirer acquired Price Consideration Dec-15 Platform Consolidated Group (PCG) Aggregation platform and finance broker COG 60.0% $22.9m 76% cash / 24% equity Oct-16 Consolidated Finance Group Independent equipment finance aggregator COG 8
Slide 31: Acquisition history (cont.)
Appendices Acquisition history (cont.) Interest Date Company Activity Acquirer acquired Price Consideration Jul-21 Centrepoint Yeppoon Finance broker (QLD) DLV 100.0% $1.0m 100% cash Nov-21 Westlawn Finance SME finance provider, insurance broking and funds management COG 24% $9.3m 17% cash / 83% equ
Slide 32: Proportionate share of unrestricted cash attributable to members
Appendices Proportionate share of unrestricted cash attributable to members $ millions Proportionate share of unrestricted cash Total Restricted Unrestricted attributable to Cash cash1 cash Members2 Platform Group 53.7 (45.1) 8.6 6.6 QPF Group 3.7 - 3.7 1.9 Linx Group 1.9 - 1.9 0.9 Westlawn Group 50
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