Psg Financial Services Limited · JSE:KST

Psg Financial Services — H1 2025 Earnings Presentation

30 slides from Psg Financial Services's earnings presentation, October 2024

Slide 1: Investor Presentation FY2025 Interim Results
Investor Presentation FY2025 Interim Results For the six months ended 31 August 2024
Slide 2: Contents
Contents 1. H1 2025: Financial Results 2. H1 2025: Divisional Performance 3. 2025 Focus 4. Return and Trading Statistics 5. Conclusion 2 Copyright © PSG
Slide 3: PSG Structure
PSG Structure PSG Wealth* PSG Asset Management PSG Insure** 100% 100% 100% * Includes PSG Employee Benefits ** Includes Western National Insurance Note: PSG Group unbundled its shareholding in PSG Financial Services (previously PSG Konsult) with effect from 12 September 2022 3 Copyright © PSG
Slide 4: A Great Company
A Great Company Wealthy Clients serviced where they reside FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 H1 2025 No. of advisers 935 932 952 947 953 957 PSG Wealth 559 563 584 590 608 628 PSG Insure 376 369 368 357 345 329 No. of offices 257* 263 263 266 266 265 Source: PSG Distribution * Number revised f
Slide 5: Business characteristics
Business characteristics • Equity market dependent • Administration businesses people/systems dependent • Not very balance sheet intensive • Free cash flow generative • Vulnerable to regulatory change 5 Copyright © PSG
Slide 7: Key macro indicators
Key macro indicators Volatile economic environment Key indicators H1 2021 %∆ H1 2022 %∆ H1 2023 %∆ H1 2024 %∆ H1 2025 Rand / US$ 16.94 -15% 14.47 18% 17.04 11% 18.94 -6% 17.76 SA Property Index 236 42% 335 -11% 297 2% 303 29% 391 All Bond Index 712 15% 817 1% 829 7% 891 19% 1 057 S&P 500 (Rand) 59 2
Slide 8: H1 2025 financial results overview
H1 2025 financial results overview Recurring HEPS grew by 28% for H1 2025 Consolidated results H1 2021 %∆ H1 2022 %∆ H1 2023 %∆ H1 2024 %∆ H1 2025 Headline earnings 324 25% 405 1% 408 18% 482 26% 610 Recurring headline earnings 332 22% 405 1% 408 18% 482 26% 610 Weighted average no. of shares (milli
Slide 9: Recurring Headline Earnings By Division
Recurring Headline Earnings By Division Total recurring headline earnings growth of 26% for H1 2025 Recurring Headline Earnings * H1 2021** %∆ H1 2022 %∆ H1 2023 %∆ H1 2024 %∆ H1 2025 CAGR % Wealth 219 7% 234 13% 265 18% 313 13% 355 13% Asset Management 50 95% 96 -16% 81 23% 100 57% 158 34% Insure 6
Slide 10: Financial Trend
Financial Trend We always look at our 10 year rolling track record YoY FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 CAGR % H1 2024 H1 2025 Gwth % AUM (Rbn) 99 133 154 175 205 222 230 268 315 354 407 15% 376 436 16% Premiums (Rbn)* 1.8 2.1 2.5 2.9 3.3 4.5 5.
Slide 12: Wealth Plans
Wealth Plans Growing and protecting client wealth Market Wealth Assets Split Feb-24 Net flows Aug-24 % Growth movement Excellence in products & services PSG Multi Managed * 175 839 4 517 7 471 187 827 7% Third party funds ** 109 683 4 344 3 524 117 551 7% Stockbroking portfolios 69 566 4 931 -728 73
Slide 13: Wealth
Wealth Excellence in products and services Net Flows (Rm) ALSI Independent %∆ 23% 40% -10% -15% -40% 55% 54% -14% process with 14 000 90 000 advisers’ 11 886 oversight 12 000 10 820 10 267 80 000 9 735 10 000 2 150 70 000 2 357 3 524 8 291 7 734 5 819 7 733 8 000 201 60 000 1 401 Rapid growth in 6 3
Slide 14: Top Advisers
Top Advisers We continue to add top advisers to our PSG Wealth distribution business Wealth advisers (incl. EB) H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 H2 2024 H1 2025 Balance – opening 559 563 563 579 584 586 590 603 608 Net movement 4 0 16 5 2 4 13 5 20 Balance – closing 563 563 57
Slide 15: Asset Management Plans
Asset Management Plans Net new money at acceptable margin Market AM assets split Feb-24 Net flows Aug-24 %△ movement Focused marketing PSG Single manager * 49 562 4 091 1 022 54 675 10% Investment PSG Money market and related assets* 2 274 -22 -335 1 917 -16% performance Total assets under managemen
Slide 16: Asset Management
Asset Management ‘Brick by Brick’ strategy Net Flows (Rm) ALSI %∆ 81% 117% -591% 228% -72% 607% 4% -62% Long-term assets 2 000 1 740 1 809 90 000 72 145 (retail emphasis) 1 000 868 687 80 000 1 668 1 664 138 837 927 246 1 022 387 86 70 000 0 -59 160 -416 -335 -249 -261 60 000 -1 000 -1 626 -677 Gett
Slide 17: Asset Management
Asset Management Investment Performance track record 1-year 2-year 3-year 5-year 10-year Rank since Single manager funds Performance Inception date Rank Rank Rank Rank Rank inception Rank 58 7 3 9 7 1 PSG Flexible 01-Nov-04 Return 11.4% 16.1% 15.2% 13.5% 9.4% 13.8% Rank 158 6 4 15 23 2 PSG Equity 01
Slide 18: Insure
Insure Grow gross written premium income PSG Insure gross written premium (Rm) %∆ 5% 1% 1% 7% 4% 7% 5% 4% Top advisers 5 000 4 638 4 456 4 500 4 245 3 971 4 000 3 825 1 287 3 493 3 545 3 588 1 210 Gross written premium 1 097 3 500 3 336 995 Excellence in 924 831 819 856 3 000 773 underwriting 821 85
Slide 19: Top Advisers
Top Advisers Growing adviser base over the long term Insure advisers H1 2021 H2 2021 H1 2022 H2 2022 H1 2023* H2 2023 H1 2024 H2 2024* H1 2025* Balance – opening 376 375 369 369 368 362 357 358 345 Net movement -1 -6 0 -1 -6 -5 1 -13 -16 Balance – closing 375 369 369 368 362 357 358 345 329 Growth 0
Slide 20: Western National Insurance
Western National Insurance Net insurance result & shareholders income %∆ 51% -17% 43% -44% 79% -29% 24% 14% Key differentiators NIBT (Rm) Underwriting margin • Personalised service to brokers. 180 169.0 168.6 168.0 25% • Focus on commercial 160 22.7% 147.0 business. 142.8 33.0 20% 140 66.0 9.5 17.2%
Slide 22: Top Line Focus
Top Line Focus Core operations (excl. IFRS Consolidated fund and policyholder related income) 4 127 4 000 3 607 3 500 3 096 1 547 3 000 2 879 1 384 Top line revenue (Rm) 2 558 2 500 1 176 1 108 537 2 000 1 054 412 337 1 500 350 218 1 000 2 043 1 811 1 421 1 583 1 286 500 0 H1 2021 H1 2022 H1 2023 H1
Slide 23: Reducing risk
Reducing risk Recurring revenues Margin enhancing Risk vs return H1 21 H1 22 H1 23 H1 24 H1 25 H1 21 H1 22 H1 23 H1 24 H1 25 H1 21 H1 22 H1 23 H1 24 H1 25 Op margin 16.3% 18.0% 17.3% 16.2% 15.9% ROE* 19.6% 1 22.0% 19.8% 22.5% 26.2% Perf fees/HE 0.0% 7.8% 3.7% 2.5% 6.0% Op margin 16.3% 16.9% 16.8% 15
Slide 25: PSG Financial Services performed better than JSE ALSI since 2005
TRI of PSG Financial Services PSG Financial Services performed better than JSE ALSI since 2005 Investment of R100 000 in PSG Financial Services shares on 11 April 2005, and reinvesting all dividends received (net of DWT) and other distributions over period vs R100 000 invested on JSE ALSI PSG Financ
Slide 26: Historical P/E ratio & ROE trend
Historical P/E ratio & ROE trend Recurring HEPS CAGR of 18.6% since 2005 P/E Ratio Recurring P/E Ratio Recurring (Recurring Date Share Price % Growth % Growth HEPS (before % Growth (Recurring ROE CPI* ROE - CPI HEPS HEPS before amortisation) HEPS) amortisation) 2005/02/28 40 - 2.9 - 3.0 - 13.8 13.3
Slide 27: Trading Statistics
Trading Statistics Creating shareholder value Statistic% FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023* FY 2024 H1 2025** No. of shares in issue (millions) 1 210 1 222 1 262 1 279 1 322 1 342 1 365 1 358 1 341 1 331 1 296 1 280 1 269 No. of shares traded (mi
Slide 29: Conclusion
Conclusion Business features underpinning our expectations for future success • Formidable adviser network in South Africa, with a broad geographic footprint that continues to expand • Strong governance structures • Clear growth opportunities for our businesses • History of superior shareholder retu

PSG Financial Services — H1 2025 Earnings Presentation on 6ix

Psg Financial Services — H1 2025 Earnings Presentation

Slide 1: Investor Presentation FY2025 Interim Results

Slide 2: Contents

Slide 3: PSG Structure

Slide 4: A Great Company

Slide 5: Business characteristics

Slide 6: H1 2025: Financial Results

Slide 7: Key macro indicators

Slide 8: H1 2025 financial results overview

Slide 9: Recurring Headline Earnings By Division

Slide 10: Financial Trend

Slide 11: H1 2025: Divisional Performance

Slide 12: Wealth Plans

Slide 13: Wealth

Slide 14: Top Advisers

Slide 15: Asset Management Plans

Slide 16: Asset Management

Slide 17: Asset Management

Slide 18: Insure

Slide 19: Top Advisers

Slide 20: Western National Insurance

Slide 21: 2025 Focus

Slide 22: Top Line Focus

Slide 23: Reducing risk

Slide 24: Return and Trading Statistics

Slide 25: PSG Financial Services performed better than JSE ALSI since 2005

Slide 26: Historical P/E ratio & ROE trend

Slide 27: Trading Statistics

Slide 28: Conclusion

Slide 29: Conclusion

Slide 30: End - Thank You