Slide 1: Full Year 2017 Results
For personal use only Full Year 2017 Results CENTREPOINT Centrepoint Alliance Limited ALLIANCE ASX:CAF FY17 INVESTOR PRESENTATION 24 AUGUST 2017 24 August 2017 1
Slide 2: FY17 Highlights
FY17 HIGHLIGHTS For personal use only $5.3m EBITDA from 98 new advice continuing operations up firms recruited over $3.7bn in Funds Revenues up 11% 33%. $6.5m NPAT last 2 years representing under Management and $1.1bn in gross and cost to income ratio up 51% over 200 advisers Administration up 19% i
Slide 3: Strategic Vision
Strategic VISION For personal use only To be the most trusted we believe all Australians deserve to feel financially secure and have a positive wellbeing and respected wealth management organisation in Australia and in doing so, aspire to create leading business lines in: Attractive Client and IP co
Slide 4: Centrepoint's Scale Advantage
Centrepoint’s SCALE ADVANTAGE For personal use only 1 in 5 1 in 3 $25bn 1 in 13 Australian AFSL non-institutional in funds under financial advice licensees advisers advice amongst advisers advisers 50,000 $3.7bn Largest prospective in FUMA distributor of life accounting clients insurance in life in
Slide 5: Our strategy spans the wealth market
Our strategy spans the WEALTH MARKET For personal use only Financial Advisers Products Salaried Advisers Platforms Self Employed Investment Advisers Management Accountant Life Insurance Partners clients Adviser Services Decision Makers Value Creation FY17 Investor Presentation, 24 August 2017 5
Slide 6: Our Growth Model
Our GROWTH MODEL For personal use only NUMBER OF PRODUCT GROW ADVICE FIRMS ADOPTION • Competitive offering for • Quality products – investments, • Partnering advice firms professional advice firms platforms, life insurance • Clients utilising products • Trusted and well recognised brand • Consistent
Slide 7: FY17 Financial Results
FY17 Financial Results For personal use only $m FY15 FY16 FY17 Revenue 118.2 116.5 129.4 Adviser fees and commissions (85.8) (84.5) (97.2) Gross Profit 32.4 32.0 32.3 Management expenses (27.5) (27.5) (26.3) EBITDA core continuing operations 4.9 4.5 6.0 Cost to income ratio 85% 86% 81% Share schemes
Slide 8: Supporting Professional Advisers
Supporting Professional Advisers For personal use only Key Performance Indicator FY15 FY16 FY17 Number of New Firms (Gross) 37 59 39 FY17 Highlights Number of Advice Firms 507 493 489 • 98 new advice firms recruited in past 2 years. Firm Satisfaction (NPS) n/a n/a 30 1 firm alone had over $1bn in fu
Slide 9: Growth in FUMA
Growth in FUMA For personal use only FUMA – NET FLOWS ($M) FUMA ($M) 4.000 500 3.500 400 3.000 300 2.500 200 2.000 100 1.500 0 1.000 -100 500 -200 0 FY13 FY14 FY15 FY16 FY17 FY13 FY14 FY15 FY16 FY17 Funds Platform Managed Accounts Funds Platform Managed Accounts • Accelerating growth in FUMA, up 19%
Slide 10: Funds under Management and Administration
Funds under Management and Administration For personal use only Strategic Goal Key Performance Indicator FY15 FY16 FY17 • Grow funds under management and administration and deliver consistently good outcomes for clients Gross Funds Inflows ($m) 206 237 322 How • Core of what we and advisers do for c
Slide 11: Capital management
Capital management For personal use only DIVIDEND PER SHARE (cents per share) Dividends • Following a review of strategic options the Board has determined to pay: 10.0 • a final ordinary dividend of 1.2 cents per share fully franked. Record 8.0 date is 25/9/17 with payment on 9/10/17 6.0 Special div
Slide 12: xseedwealth
xseedwealth For personal use only XSEEDWEALTH - REVENUE & EBITDA ($M) 3.5 3.0 Salaried Advice 2.5 2.0 • Revenue up 32% 1.5 • EBITDA up 183% 1.0 • Melbourne and Queensland offices established in FY17 0.5 0.0 • Adviser numbers increased from 4 to 7 -0.5 • FY17 EBITDA negatively impacted by early adopt
Slide 13: Accounting Partnerships
Accounting Partnerships For personal use only REVENUE ($K/Qtr) ACCOUNTING FIRMS • Revenue up 109% in June qtr • RFE established 18 Accountant joint 13 291 ventures in 1st year 125 139 4 1 Dec Mar Jun Dec Mar Jun • Since new regulations were • In October 2016, Centrepoint • RFE ceased marketing to im
Slide 14: Australian Life Development life insurance business
For personal use only ALD is a standalone business with a separate management team of highly experienced market leading experts ALD is a The product offering will be new Australian comprehensive, well rated and comparable to other market offerings. life insurance The key differentiator will be advis
Slide 15: Summary and Outlook
SUMMARY AND For personal use only OUTLOOK Centrepoint delivered an The business has multiple initiatives outstanding outcome for underway partnering with advice shareholders in FY17 with 33% firms to help improve their growth in EBITDA, $18m in businesses and at the same time dividends declared or p
Slide 16: Contact Details
For personal use only CONTACT DETAILS John de Zwart John Cowan Managing Director Chief Financial Officer +61 2 8987 3002 +61 2 8987 3036 john.dezwart@cpal.com.au john.cowan@cpal.com.au Level 9, 10 Bridge Street | Sydney NSW 2000 16
Slide 17: Operating segment results
Operating segment results CONTINUING OPERATIONS For personal use only Funds Management Licensee and Corporate Total $m and Administration Advice Services FY16 FY17 % FY16 FY17 % FY16 FY17 % FY16 FY17 % Statutory Revenue 11.6 12.6 9% 104.6 116.4 11% 0.3 0.4 33% 116.5 129.4 11% Gross Profit 6.8 7.8 15
Slide 18: Group balance sheet
Group balance sheet For personal use only $m FY16 FY17 FY17 v FY16 (%) Cash and Term Deposits 10.2 31.2 206% Current Interest Bearing Receivables 125.8 0.3 -100% Intangible Assets and Goodwill 3.8 2.2 -42% Other Assets 28.7 26.3 -8% Total Assets 168.5 60.0 -64% Interest Bearing Liabilities 84.0 0.0
Slide 19: Strong Cash position
Strong Cash position For personal use only FY17 CASHFLOW ($M) 50 21.4 -4.8 45 -3.2 • A strong cash position of $31m at 30 40 -5.4 June 2017 is able to fund a special 35 31.2 dividend and organic/ inorganic growth 30 25 4.8 Wealth • Operating net cash flow strengthened to 20 $13.0m (FY16: $7.1m) with
Slide 20: Our advice network
Our advice network For personal use only 184 (WA) 141 (SA) 557 (NSW) Self Licensed 141 Self Licensed 97 Self Licensed 395 Corp-Licensed 38 Corp-Licensed 31 Corp-Licensed 91 Salaried 0 Salaried 1 Salaried 7 Mortgage brokers 5 Mortgage brokers 12 Mortgage brokers 64 376 (VIC) 630 (QLD) 10 (ACT) 18 (TA
Slide 21: Government/regulations driving our addressable market
Government/regulations driving our ADDRESSABLE MARKET For personal use only Legislative impact Market impact o Taxation changes to superannuation Increasing o Increased savings during accumulation phase o Compulsory super o Larger investment balances being retained during Retirement Savings o Increa
Slide 22: Definitions
Definitions For personal use only Term Definition Includes assets and revenue in respect of self-licensed firms, Salaried Advice, Licensed Practices (flat fee model), Contemporary Business Model Open Administration Platforms, Managed Accounts and Open Ventura Funds FoFA Future of Financial Advice le
Slide 23: Definitions
Definitions For personal use only Term Definition Revenue Revenue comprises financial advice and product margin revenue, service revenue and dividend and distribution income Direct Costs Advice and financial product fees Gross Profit Revenue received less Direct Costs Operating Expenses Expenses exc
Slide 24: Disclaimer
For personal use only disclaimer This presentation is for general information purposes only and should be read in conjunction with the Appendix 4E lodged with the Australian Securities Exchange by Centrepoint Alliance Limited (ASX:CAF) on 24 August 2017. This presentation does not provide recommenda
Slide 25: For personal use only
For personal use only CENTREPGINT ALLIANCE