Centrepoint Alliance Limited · ASX:CAF
Centrepoint Alliance — FY2011 Earnings Presentation
14 slides from Centrepoint Alliance's earnings presentation, Sep 9, 2011
Slide 1: Announcement to the Market: Presentation on FY 2011 Financial Results
For personal use only ANNOUNCEMENT TO THE MARKET 9 SEPTEMBER 2011 PRESENTATION ON FY 2011 FINANCIAL RESULTS Attached is a brief presentation prepared for shareholders and investors in relation to the Preliminary Financial Results of Centrepoint Alliance Limited (ASX Code; CAF) for Financial Year 201
Slide 2: Results Presentation Financial Year 2011
For personal use only Results Presentation Financial Year 2011
Slide 3: Overview
For personal use only OVERVIEW • Premium P i F Funding di B Business i (CAPF) continues i to rebuild b ild market k share and profitability • Advice and investment ((PIH Group) p) business restructuring g progressing • Majority of businesses now market dependent • C t Centrepoint i t wellll position
Slide 4: Key Achievements
For personal use only KEY ACHIEVEMENTS Corporate – Merger with PIH Group – Capital Raising – Implementation of new accounting system CAPF ((Premium C e u Funding) u d g) – Restructure debt facilities – Transfer business to new subsidiary
Slide 5: Key Achievements (Post Merger)
For personal use only KEY ACHIEVEMENTS (POST MERGER) PIH G Group (Ad (Advice i &PProduct) d ) – Hong Kong, China divested – Singapore Si revenue restructured, t t d NZ merged d iinto t llarger b business i – Acquisition of remaining shareholding in funds management subsidiaries (Ventura, All Star) –
Slide 6: Key Achievements (Post Merger)
For personal use only KEY ACHIEVEMENTS (POST MERGER) PIH G Group (Ad (Advice i &PProduct) d ) – Improving non-claims expense management – Significant external reviews undertaken of key areas e e.g. g • Claims • Approved Product Area (Zenith) Z ith Comments Zenith C t “We are of the view that PIS Res
Slide 7: Challenges Still Underway
For personal use only CHALLENGES STILL UNDERWAY • Claims Cl i reduction d i – Advice provided majority 2007/2008 – Majority from ex advisers – Active Management of product failure to protect client interests • Finalisation of EU (Enforceable Undertaking) – On track – Additional expert resources adde
Slide 8: Post Acquisition Review
For personal use only POST ACQUISITION REVIEW Key risks identified at Current position Comments merger Lower number than at Focused on maintaining Advisor retention acquisition but now current numbers and stable improving quality Impact broadly as Legislation Draft now available expected Now a key f
Slide 9: Financial Overview
For personal use only $000 FINANCIAL OVERVIEW NPAT Advice • Australian Dealer Group Activities (PIS/AAP) (9023) • Australian Funds Management (634) • Australian Other (DeRun) 42 • Overseas Activities (3178) Premium Funding 415 Corporate (including other e.g. MPF/PSD etc) (747) TOTAL (13 125) (13,125
Slide 10: Advice: Impact of Abnormal Items
For personal use only ADVICE IMPACT OF ABNORMAL ITEMS $000 $000 Australian Advice and Investment Products and Services St t t Statutory Results R lt (9615) • Provision for claims (in excess of revised projection) 6062 • Impairment pa e to o intangible a g b e asse assets s 1797 9 • Merger related ex
Slide 11: Australia Advice and Development
For personal use only Australia Advice and Development 30 June 2010 30 June 2011 ALCO Mortgage / Loans $5.2b $6.0b Funds Management (Ventura and All Star) $805.3m $844.2m PIS Platforms $7.013b $6.842b AAP Platforms $2 866b $2.866b $2 859b $2.859b Life Premiums $204m $196m Net fees and revenue** $16.
Slide 12: Premium Funding
For personal use only PREMIUM FUNDING 2010 FY 2011 FY Loans (written) $245.1m $285.1m Revenue $19.6m $17.5m PBT* $2.0m $0.8m *Note: 2010 FY PBT reflects benefit of run-off of closed OAMPS book
Slide 13: The Future of Centrepoint
For personal use only THE FUTURE OF CENTREPOINT • PIH renovation i nearer completion l i • PIH now largest independent in advice space • PIH has solid horizontal integration (funds management management, mortgage broking and boutique AFSL’s) • Premium funding continuing to do well
Slide 14: Outlook
For personal use only OUTLOOK Financial Fi i l performance f will ill significantly i ifi l iimprove h however will ill still ill reflect – Higher than anticipated (at merger date) claims – Further restructuring costs including costs of the enforceable undertaking – Slower reduction in costs (insura