Slide 1: 2020 Full Year Results Presentation and Investor Discussion Pack
ASX announcement For personal use only CountPlus Limited 2020 Full Year Results Presentation and Investor Discussion Pack 28 August 2020 (Sydney) Contact Details A copy of the presentation is attached. Matthew Rowe Chief Executive Officer and Managing Director 02 8218 8778 matthew.rowe@countplus.com
Slide 2: CountPlus Limited Results Presentation
For personal use only CountPlus Limited (ASX: CUP) Results Presentation For the Year Ended 30 June 2020 PRESENTED BY Matthew Rowe, Chief Executive Officer and Managing Director Laurent Toussaint, Chief Financial Officer
Slide 3: Contents
Contents For personal use only Important information 4 CountPlus FY2020 summary 5 CountPlus headline results 6 CountPlus financial track record 7 CountPlus profit reconciliation 8 CountPlus segment report 9 CountPlus cash flow bridge 10 Partner Firms – 100% aggregation 11 CountPlus – challenges in F
Slide 4: Important information
Important information For personal use only This presentation is provided for information purposes only. The information in this Certain statements in this presentation may constitute forward-looking statements or presentation is in a summary form, does not purport to be complete and is not intended
Slide 5: CountPlus FY2020 Summary
CountPlus FY2020 Summary For personal use only Adjusted EBITA $12.391M. Firm average profit margin maintained at 20% in FY2020. Financial Services Segment Adjusted EBITA $4.396M showing positive contribution from Count Financial. FoFA ‘grandfathered’ revenue & commissions banned 47% of FY2020 Count
Slide 6: CountPlus Headline Results
CountPlus Headline Results Turnaround in performance for CountPlus has been delivered For personal use only Revenue – $’M Adjusted EBITA – $’M Firm EBITA Margin – % Net (debt) / Net cash – $’M Lock-Up – Days Source: CountPlus Annual Reports : FY11 – FY20 CountPlus analysis Results Presentation – FY2
Slide 7: CountPlus Financial Track Record
CountPlus Financial Track Record Improved earnings; strengthened cash position For personal use only Financial Results summary FY20 FY19 Movement – FY20 vs FY19 $’000 $’000 $’000 % Revenue from operating activities 82,607 68,646 13,961 20 Adjusted Earnings before interest, tax and amortisation (“EBI
Slide 8: CountPlus Profit Reconciliation
CountPlus Profit Reconciliation Statutory profit reconciliation For personal use only NPAT analysis – Adjusted FY20 FY19 Movement $’000 $’000 % change Net profit after tax – Reported 17,448 2,956 Deduct: Gain on bargain purchase (10,952) – Add: One-off M&A transaction costs 215 1,752 Add: Transition
Slide 9: CountPlus Segment Report
CountPlus Segment Report Acquisitions including Count Financial have improved group profitability For personal use only Subsidiary Share of Other, FY20 Accounting Associates AFSL corporate, Total Firms earnings consol adj. $’000 $’000 $’000 $’000 $’000 Revenue 63,927 - 17,919 761 82,607 Contribution
Slide 10: CountPlus Cash Flow Bridge
CountPlus Cash Flow Bridge Positive cash flows through operations and the acquisition of Count Financial For personal use only Operating cash flows reconciliation FY20 FY19 $’000 $’000 Cash flow from operating activities – Reported 12,437 5,949 (Less) / Add: Vendor financing (567) 1,057 Add: Transit
Slide 11: Partner Firms – 100% aggregation
Partner Firms – 100% aggregation of converged accounting & financial planning firms Acquisitions to drive growth For personal use only Pro forma P&L analysis FY20 FY19 Movement Key points to note: • The scale of CountPlus has increased due to $’000 $’000 % acquisitions. The group has grown from 15 T
Slide 12: Challenges in FY2021
Challenges in FY2021 COVID-19 and regulatory changes in the financial services sector expected to create a challenging environment For personal use only COVID-19 Count Financial • The impact of COVID-19 has not fully revealed itself in our core small business • CountPlus ‘Most Favoured Nation’ platf
Slide 13: Dividends
Dividends 25% increase in dividend compared to FY2019 For personal use only • FY20 dividend of 1.25 cents per share, fully franked (25% increase from same period last year). • Target dividend pay-out ratio of 60% to 90% of maintainable net profit after tax, attributable to CountPlus shareholders for
Slide 14: Count Financial
Count Financial For personal use only Results Presentation – FY20 14
Slide 15: Financial services – segment performance
Financial services – segment performance Count Financial has traded profitably under CountPlus ownership For personal use only Financial Services Segment FY20 $’000 Statutory EBITA 2,873 Add: Transition Costs – Count Financial* 2,092 Less: AASB9 & AASB15 one-off adjustments to insurance trail commis
Slide 16: Count Financial Acquisition and Remediation update
Count Financial Acquisition and Remediation update For personal use only Count Financial was acquired 1 October 2019 for $2.5m. The transaction: Provision for client remediation and CBA indemnity • Purchase price discount to net tangible assets of Count Financial (a • Provision increased to $195M ba
Slide 17: Count Financial Operational Update
Count Financial Operational Update Count Financial has delivered some key business enhancements during 2020 For personal use only • The number of Count financial advisers has decreased from 315 on 1 Adviser numbers October 2019 to 260 at 30 June 2020. • Over the first 9 months of CountPlus ownership
Slide 18: Count Financial Operational Update
Count Financial Operational Update Count Financial has delivered some key business enhancements during 2020 For personal use only • A recent Count Financial member survey show that 83% of respondents Number of Advice Documents Produced would actively refer Count Financial to a Financial Adviser look
Slide 19: What sets us apart
What sets us apart For personal use only Our Vision Our Values Strategic Drivers and Key Goals To become Australia's Trust Clients Focus leading network of Earned through character, We deliver advice that secures We believe in professional accounting competence and coachability. financial wellbeing.
Slide 20: Appendices
For personal use only Corporate Index – CountPlus Appendices Results Presentation – FY20
Slide 21: CountPlus wholly-owned subsidiaries, partially owned subsidiaries and associates
Appendix 1 CountPlus wholly-owned subsidiaries, partially owned subsidiaries and associates For personal use only No. Partner Firm Shareholding No. Partner Firm Shareholding Wholly-owned subsidiaries % Partly-owned subsidiaries % 1. Addvantage Financial Freedom Pty Ltd 100.00 8. Bentleys (WA) Pty Lt
Slide 22: 40-year anniversary of Count Financial – History
Appendix 2 40-year anniversary of Count Financial – History of Count Financial For personal use only Count Financial celebrates 40 years How it began… of financial advice to Australians. Count Financial founded by Barry Lambert • Count Financial established in August 1980. in 1980. • Firm continues
Slide 23: CountPlus Industry Snapshot
Appendix 3 CountPlus Industry Snapshot For personal use only Industry at a glance* Operating Environment Opportunities Core Clients • Financial Advice Revenue $4.7B. • Major institutional advice players • Major institutional advice players • Mass Affluent. exiting. exiting – end of product subsidy •
Slide 24: Thank You
For personal use only Thank You Results Presentation – FY20 24