Slide 1: Centuria Capital Results Briefing FY16
Centuria Capital Centuria Capital Results Briefing FY16 18 August 2016 www.centuria.com.au Copyright © Centuria Capital Limited. ABN 22 095 454 336 1
Slide 2: Contents
Centuria Capital Contents • Section 1: Group Overview & Strategy • Section 2: FY16 Operating Highlights • Section 3: FY16 Financial Highlights • Section 4: Property Funds Management Division • Section 5: Investment Bonds Division • Section 6: Outlook • Section 7: Appendices Copyright © Centuria Capi
Slide 3: Group Overview & Strategy
Centuria Capital Group Overview & Strategy Copyright © Centuria Capital Limited. ABN 22 095 454 336 3
Slide 4: Growth in FUM anticipated in FY17
Centuria Capital Growth in FUM anticipated in FY17 Business transitioning for next stage of growth • Targeting 25% net total FUM growth in FY17 $2,500 2,399 • 25% 200 No major fund expiries in FY17 $2,000 1,919 280 • Expanded distribution channels 1,764 1,636 21% 1,591 416 $ million o Listed REIT ma
Slide 5: Experienced specialist fund manager with proven and disciplined growth
Centuria Capital a Experienced specialist fund manager with proven and disciplined growth Centuria Capital Limited (ASX:CNI) $1,919m Total Funds under Management (FUM) S$783m S$416m $350m $370m Unlisted Property Listed Property Centuria Life Over Fifty Guardian (ASX:CMA) Investment Bonds Friendly So
Slide 6: Group strategy
Centuria Capital Group strategy • Centuria platform positioned to build on FUM growth in real estate and investment bonds • Increase recurring income streams via both increased FUM and co-investment • Deliver superior returns to third-party fund investors • Expand and diversify access to distributio
Slide 7: FY16 Operating Highlights
Centuria Capital FY16 Operating Highlights Copyright © Centuria Capital Limited. ABN 22 095 454 336 7
Slide 8: Group operating highlights
Centuria Capital Group operating highlights Record profit delivered in FY16 • Underlying Net Profit After Tax (NPAT) of $10.4 million up 65% and at upper end of guidance • Funds under management increased 21% from $1.6 billion to $1.9 billion • Significant property acquisitions during the year inclu
Slide 9: Strategy scorecard
Centuria Capital Strategy scorecard Disciplined commitment to set strategy Expand and diversify product range • Continued expansion of Centuria Metropolitan REIT (CMA) to gross assets above $400m • Successful launch of $280m Centuria Zenith Fund partnering with Blackrock • Launched “White Label” Inv
Slide 10: FY16 Financial Highlights
Centuria Capital FY16 Financial Highlights Copyright © Centuria Capital Limited. ABN 22 095 454 336 10
Slide 11: Group operating highlights
Centuria Capital Group operating highlights Record profit delivered FY16 FY15 Increase Underlying NPAT $10.4m $6.3m 65% Underlying EPS (basic) 13.7c 8.1c 69% Statutory NPAT $12.1m $8.6m 41% Statutory EPS (basic) 15.8c 11.0c 44% Dividend per share (fully franked) 5.25c 4.75c 11% Underlying Net Profit
Slide 12: Underlying segment results
Centuria Capital Underlying segment results In line with top end of guidance • Over FY15/16 Centuria realised approximately $550m of FY16 FY15 property FUM leaving excess capacity in the platform $m $m • Throughout FY16 the real estate team were kept at full strength Underlying profit by segment to
Slide 13: Growth in assets
Centuria Capital Growth in assets Substantial net asset backing supports value equation Balance Sheet Metrics As at 30 June 2016 As at 30 June 2015 Increase Net assets $127.7m $118.9m 7.4% Net assets per share (1) $1.67 $1.55 7.7% Net Tangible Assets per share (1) $0.97 $0.86 12.8% Share Price $1.05
Slide 14: Centuria is considering a corporate restructure
Centuria Capital “> « CN is considering a corporate restructure to create a new stapled entity, Centuria Capital Group. Benefits would include; ° ° More efficient platform to hold Centuria’s existing and future property fund co-investments Potential for material increase in combined dividend/distrib
Slide 15: Property Funds Management Division
Centuria Capital Property Funds Management Division 9 Help Street, Chatswood Zenith Centre, Chatswood, NSW Copyright © Centuria Capital Limited. ABN 22 095 454 336 15
Slide 16: Property Funds Management Division
Centuria Capital “> Property Funds Management Division Unlisted Property Funds $783 million in FUM $280 million of FUM added in July 17 years experience through multiple property cycles 33 completed funds totalling $1.3 billion 12 Unlisted funds under management Experienced management team lead by J
Slide 17: Unlisted Property highlights
Centuria Capital Unlisted Property highlights Active transaction flow ensures significant increase in FUM triggering substantial investor profits and fees • Successful acquisition of three assets totalling $265 million and the acquisition of the $280 million Zenith Centre in Zenith Centre, Chatswood
Slide 18: Unlisted Property highlights
Centuria Capital Unlisted Property highlights 42% growth in unlisted property funds under management Unlisted Property FUM Growth ($ million) 1,000 900 52 8 101 800 104 88 75 700 161 600 783 720 500 546 400 FUM at Acquisitions Revaluations Sale of 175 FUM at Acquisitions Belmont Road Revaluations Sa
Slide 19: Unlisted Property strategy
Centuria Capital Unlisted Property strategy Centuria continues to grow its unlisted platform • Expectation of strong demand for Unlisted Property NICTA building, Australian Technology Park, NSW funds due to low interest rate environment • Continued strong investment from o high net worth investors o
Slide 20: Listed Property Funds Management highlights
Centuria Capital Listed Property Funds Management highlights CMA delivers predictable and growing earnings to investors • Centuria Metropolitan REIT (ASX: CMA) listed in 2014 • Security price of $2.32(1) up 16% since listing • CMA utilises Centuria’s capabilities in property management, development
Slide 21: Listed Property Funds Management
Centuria Capital Listed Property Funds Management Portfolio well positioned to ensure income and capital values continue to grow • Portfolio book value increased 9.3%(1) to $398.7 million • Approximately 76% of rental revenue derived from ASX-listed, multinational, national and government tenants CM
Slide 22: Listed Property strategy
Centuria Capital Listed Property strategy Active management delivering predictable and growing earnings • Focus on maximising CMA’s investment return by 203 Pacific Highway, St Leonards NSW o maximising tenant retention o initiating refurbishment and repositioning strategies o maintaining a discipli
Slide 23: Investment Bonds Division
Centuria Capital Investment Bonds Division Copyright © Centuria Capital Limited. ABN 22 095 454 336 23
Slide 24: Investment Bond Division
Centuria Capital “> Investment Bond Division Centuria Life Over Fifty Guardian Friendly Society * Manages total FUM of $350m * Manages total FUM of $370m * Unitised Investment Bond Funds * Prepaid Funeral Plans: * Established in 1998 * Strong growth 11% year on year «7 Investment options * Prepaid f
Slide 25: Investment Bond Division
Centuria Capital Investment Bond Division 4th largest friendly society/insurance bond issuer in Australia • 10.2% market share of $7 billion total market(1) • Stabilised the business creates a platform for sustainable growth $350m + $370m = $720m Total FUM of Total FUM of Over Total FUM • Full year
Slide 26: Investment Bond Division
Centuria Capital Investment Bond Division The investment bond provider of choice to non-aligned financial advisers • Centuria Investment Bonds now on over 15 Approved Product Lists representing over 20% of the non-aligned financial adviser market(1) • Developed a white-labelled Investment Bond offer
Slide 27: Investment Bond strategy
Centuria Capital Investment Bond strategy Positioning Investment Bonds as an investment alternative to superannuation • With ongoing regulatory uncertainty around superannuation, Investment Bonds are well placed as tax-effective savings vehicles for accumulation of wealth and income outside of super
Slide 28: Outlook
Centuria Capital Outlook Copyright © Centuria Capital Limited. ABN 22 095 454 336 28
Slide 29: Outlook
Centuria Capital Outlook Centuria is well positioned to grow recurring earnings and scale up • Low interest rate environment to continue – ideal for Centuria Property Fund products • Uncertain superannuation legislation – encouraging for the Investment Bond business • CMA listed business to continue
Slide 30: Appendices
Centuria Capital Appendices Copyright © Centuria Capital Limited. ABN 22 095 454 336 30
Slide 31: Reconciliation of statutory NPAT to underlying NPAT
Centuria Capital Reconciliation of statutory NPAT to underlying NPAT 2016 2015 $ million $ million Underlying net profit after tax (1) 10.4 6.3 Non-underlying adjustments: Unrealised gain on fair value of derivatives 5.5 1.2 Centuria Life seed capital valuation movement (2.8) (1.8) Accounting gains
Slide 32: Realising Value - Unlisted Property Fund Asset Sale
Centuria Capital Realising Value - Unlisted Property Fund Asset Sale 80 Waterloo Rd & 16 Byfield St, North Ryde Macquarie Park Purchase date 2001 & 2002 Acquisition price $25.3m Sale price $101.0m Capital gain 310.0% IRR (post fees) ~20.0% Performance/Sale fee $9.6m • Announced conditional sale of M
Slide 33: Building Unlisted Property Fund Pipeline
Centuria Capital Building Unlisted Property Fund Pipeline Australian Technology Park, Eveleigh Purchase price $104.0m Valuation $108.8m Equity raised $61.8m Offer closed oversubscribed February 2016 Forecast 2016 distribution yield (annualised) 8.7% • Successful co-tenderer with Mirvac Group for acq
Slide 34: Disclaimer
Centuria Capital Disclaimer This document has been issued by Centuria Capital Limited ABN 22 095 454 336 and contains general information about Centuria Capital Limited and its related bodies corporate (“Centuria”) which is current as at 18 August 2016. The information in this document is in summary
Slide 35: www.centuria.com.au
Centuria Capital www.centuria.com.au Copyright © Centuria Capital Limited. ABN 22 095 454 336 35