Sequoia Financial Group Ltd. · ASX:SEQ
Sequoia Financial — H1 2025 Earnings Presentation
21 slides from Sequoia Financial's earnings presentation, Feb 27, 2025
Slide 1: 1HFY25 Results
1HFY25 Results 27 February 2025 Sequoia Financial Group | 1
Slide 2: Disclaimer
Disclaimer This presentation is for general information purposes only and may contain non-GAAP financial measures. Therefore, it should be read in conjunction with the Half year Report for the period ended 31 December 2024 and the Appendix 4D lodged with the Australian Securities Exchange by Sequoia
Slide 3: Contents
Contents 01 Overview 02 Divisional breakdown 03 Group financials 04 Outlook Sequoia Financial Group | 3
Slide 4: Presenters
Presenters GARRY CROLE LIZZIE TAN Managing Director and CEO Chief Financial Officer Sequoia Financial Group | 4
Slide 5: Providing comprehensive suite of solutions to $18bn
Providing comprehensive suite of solutions to Financial planners Accountants $18bn1 Funds under advice, up ~25% Generating multiple revenue streams that serve this marketplace 350+ • Financial services licensing Advisers one of the • Salaried advice largest licensee groups in • Corporate advisory th
Slide 6: Overview
01 Overview Sequoia Financial Group | 6
Slide 7: 1HFY25 financial highlights
1HFY25 financial highlights Operating Revenue NPAT profit1 $60.6m $2.7m $3.6m Operating DPS Cash cashflow2 $3.4m 2.0 CPS ff $10.9m 1. Operating profit (normalised EBITDA) excludes non-operating items 2. From continuing operations Sequoia Financial Group | 7
Slide 8: 1HFY25 overview
1HFY25 overview • Streamlined existing operations and improved accountability structures, delivering annualized salary savings of ~$1.5m. • Invested in technology to improve efficiency across the 2 key business divisions. • Divested non-core businesses of General Insurance Broking , Informed Investo
Slide 9: Divisional breakdown
02 Divisional breakdown Sequoia Financial Group | 9
Slide 10: Sequoia has two major operating divisions
Sequoia has two major operating divisions Licensee and Adviser Services Legal and Administration Services Brands Brands DocsCentre PantherCorp 1. Licensee Docscentre Legal InterPrac Financial Planning Services Sequoia Wealth Management NTAA Corporate CastleCorp 2. Salaried Sequoia Financial Advice S
Slide 11: Legal and Administration Services
Legal and Administration Services Continued revenue growth and stronger margins $m Revenue EBITDA EBITDA Margin Operating profit margin 6 40% • Investment in technology that was fully expensed in 1H25 has allowed us to introduce new services to the 4.7 4.5 market more quickly. 4 30% • Mix of organic
Slide 12: Licensee and Adviser Services
Licensee and Adviser Services Revenue from Financial Advisers continues to grow $m Revenue EBITDA EBITDA Operating profit Operating Margin profit margin Operating profit margin 70 7% • Growth from financial planning business was offset by softer 60 57.9 55.8 performance across specialist $89.3 6% in
Slide 13: Group financials
03 Group financials S e q u o i a F i n a n c i a l G r o u p | 13
Slide 14: 1HFY25 profit & loss
1HFY25 profit & loss 1H25 1H24 Var ($m) ($m) % Revenue Total expenses 60.6 (57.9) 62.8 (59.6) (3.5) (2.9) Commentary Operating profit (normalised EBITDA) 2.7 3.2 (14.6) Non-operating items $60.5m $2.7m Revenue down 3.5% Operating profit (normalized Acquisition and divestment-related Items 3.4 0.3 fr
Slide 15: Strong balance sheet to support future growth
Strong balance sheet to support future growth December ‘24 June ‘24 ($m) ($m) Commentary Cash and cash equivalents 10.9 16.8 Trade and other receivables 7.0 8.9 Strong balance sheet with cash on hand of $10.9m and no bank Investments in shares 6.4 5.1 debt provides support for business growth and ca
Slide 16: 1HFY25 cash flow from continuing operations
1HFY25 cash flow from continuing operations 1H25 1H24 ($m) ($m) Commentary Receipts from customers 68.2 73.5 Payments to suppliers/employees (64.8) (71.4) Operating cash flow from continuing operations 3.4 2.1 Client related operations 0.5 (2.9) High quality result given the cash conversion to opera
Slide 17: Outlook
04 Outlook S e q u o i a F i n a n c i a l G r o u p | 17
Slide 18: Key Strategic Initiatives
Key Strategic Initiatives Initiatives Status Divest non-core businesses 4 divestments completed Streamline existing operations Completed Continue invest in technology to enhance business efficiency Ongoing Restructure Sequoia Specialist Investments and media businesses to Completed enhance margins a
Slide 19: Industry tailwinds and drivers of growth in SEQ market cap
Industry tailwinds and drivers of growth in SEQ market cap Industry tailwinds Sequoia stock drivers • Growth in superannuation assets continues to • Consolidation of the industry offers opportunity. escalate with more members seeking advice. • Our strong balance sheet places us in a good • Rising de
Slide 20: Contacts
Contacts GARRY CROLE Managing Director and CEO Email: info@sequoia.com.au www.sequoia.com.au
Slide 21: Appendix – Investments in shares and associates
Appendix – Investments in shares and associates • Market value of Investments in shares at 31/12/2024 • Total $6.4m which includes CAF $4.1m. • Investments in Associates at 31/12/2024 valued at $10.6m accounts for: • 20% of Euree Asset Management Pty Ltd valued at cost of investment in June 2023. •
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