Centuria Capital Group · ASX:CNI
Centuria Capital — H1 FY2015 Earnings Presentation
29 slides from Centuria Capital's earnings presentation, Feb 19, 2015
Slide 1: Results Announcement for the half-year ending 31 December 2014
Results Announcement For personal use only for the half-year ending 31 December 2014 Centuria Capital Limited Presentation to Investors and Analysts www.centuria.com.au
Slide 2: Contents Directory
Contents Directory Group CEO John McBain For personal use only 3. Half-year in Review 4. Group Strategy CEO Unlisted Property Funds Jason Huljich 6. Results Overview CEO Listed Property Funds Nicholas Collishaw 8. Underlying Segment Results General Manager - Investment Bonds Neil Rogan 10. Property
Slide 3: Half-year in Review
For personal use only Half-year in Review Major objectives achieved: • Non-core operations monetised • Business model refined • Balance sheet strengthened • Centuria Metropolitan REIT listed • Investment bond business reactivated Solid financial performance: • 87% increase Underlying NPAT and EPS •
Slide 4: Group Strategy – achieving 2013 objectives
Group Strategy – achieving 2013 objectives Business model For personal use only Significantly refined by: • divesting non-core operations • positioning as a Specialist Investment Manager in two core sectors: • Property Funds Management • Tax Effective Investment Bonds Strategic Objectives Centuria h
Slide 5: Group Strategy – refreshed for 2015
Group Strategy – refreshed for 2015 Centuria aims to increase shareholder wealth through a combination of growing share For personal use only value and the delivery of consistent returns. Core strategic objectives Centuria will utilise its enhanced balance sheet together with a strong focus on our c
Slide 6: Results Overview
31 December 2014 – Results Overview Underlying Net Profit After Tax(i) Underlying Net Profit After Tax by Segment(i) For personal use only ($millions) ($millions) ! ' %&& !$ !#% % # "' "!" "!& ! % $% %& #% #$ !# &$ !# !&# ! $# $( #" !$# # (' !# % ' (i) Underlying profit is a non-IFRS measure and is
Slide 7: Results Overview – Financial Summary
31 December 2014 – Results Overview For personal use only Financial Summary Six months Six months Change 12 months ended ended ended 31-Dec14 31-Dec-13 30-Jun-14 Statutory NPAT $7.6m $5.0m 52.1% $9.1m Statutory EPS (basic) 9.8c 6.5c 50.8% 11.6c Underlying NPAT (i) $5.4m $2.9m 87.6% $5.9m Underlying
Slide 8: Underlying Segment Results
Underlying Segment Results(i) 6 months 6 months 12 months Commentary ended ended ended For personal use only 31-Dec-14 31-Dec-13 30-Jun-14 Underlying profit by segment Property funds management 6,772 2,463 5,043 Reflects increased performance and sale fees Investment bonds 3,268 3,234 6,430 Reverse
Slide 9: CNI share price relative performance to S&P/ASX Small Ordinaries Index
CNI share price relative performance to S&P/ASX Small Ordinaries Index* For personal use only July August September October November December S&P/ASX Small Ordinaries Index CNI Share Price Source: Comsec *The S&P/ASX Small Ordinaries Index represents the small cap members of the S&P/ASX 300 Index, b
Slide 10: Property Funds Management Division
For personal use only Property Funds Management Division 10
Slide 11: Property Funds Management Division Overview
Property Funds Management Division Overview For personal use only • The Centuria Metropolitan REIT (CMA) was launched on 10th December 2014. CMA is a $143 million open ended ASX listed trust invested in a diversified portfolio of commercial and industrial assets located throughout Australian metropo
Slide 12: Property Funds Management Strategy Outlined
Property Funds Management Strategy Outlined Centuria continues to execute its property strategy evidenced by: For personal use only • The successful listing of the Centuria Metropolitan REIT during this half year, and • Approval of its first 68 unit development approval in Mosman, NSW, which was sig
Slide 13: Property Funds Management Division – Revenue Sources
31 December 2014 – Property Funds Management Division Revenue Sources ($millions) For personal use only !14!! Performance!and!Sales!Fees! !12!! !10!! Net!AcquisiAon!Fees! !8!! $'m$ Development!fees! !6!! !4!! Property!Services!and!Other! Revenue! !2!! Fund!Management!Fees! !"!!!! 1HFY13! 2HFY13! 1HF
Slide 14: Property Funds Management Division – Business Profile of Funds
31 December 2014 – Property Funds Management Division For personal use only • Four property acquisitions during the half-year, one in the unlisted property funds division and three in the listed property funds division • Focus on larger assets continuing with average property value now $32.4m (30 Ju
Slide 15: Unlisted Property Funds Management - highlights
Unlisted Property Funds Management - highlights The Unlisted Property Funds division had a record half year driven by significant sale and For personal use only performance fees. Highlights through the period include; • Sold 6 properties in the period to realise $6.5 million in sale and performance
Slide 16: Unlisted Property - Value Add Case Study St Kilda Road, Melbourne
Unlisted Property - Value Add Case Study 441 St Kilda Road, Melbourne Centuria acquired the property in June 2012 for $58 million. Purchase Price: $58 million For personal use only Over the next 2 years the Centuria team added significant Sale Price: $82.1 million Capital Gain: 35.1% value to the as
Slide 17: Listed Property
Listed Property For personal use only • Initial listed fund launched December 2014 - Centuria Metropolitan REIT - total asset value $183 million - invested in metropolitan office and industrial assets - conservative gearing of 25% - initial distribution yield forecast at 8.25% - initial security pri
Slide 18: Investment Bonds Division
For personal use only Investment Bonds Division 18
Slide 19: Investment Bonds Division – Outline of Investment Bonds
31 December 2014 – Investment Bonds Division Outline of Investment Bonds For personal use only • Investment Bonds are technically insurance bonds or “friendly society “ bonds issued by APRA-regulated Life Insurance companies, such as Centuria Life. • These bonds are long term savings and/or estate p
Slide 20: Strategy for Investment Bond division
31 December 2014 – Investment Bonds Division Strategy for Investment Bond division For personal use only • Centuria is positioning its investment bonds as either complimentary to compulsory Superannuation or as targeted savings vehicles for special purposes such as funding a child’s education. • Suc
Slide 21: Investment Bonds Division – New Products/Performance
31 December 2014 – Investment Bonds Division New Products/Performance For personal use only • Launch of Implemented Portfolios Dynamic Asset Allocation Bond and the Mason Stevens Credit Bond Fund under the Centuria Tax Astute Series • Policyholder numbers steadily increasing with 83,488 primary hold
Slide 22: Non-core Assets – Reverse Mortgage Portfolio Update
31 December 2014 – Non-core Assets Reverse Mortgage Portfolio Update For personal use only • Centuria successfully sold its variable rate reverse mortgage portfolio in October 2014 in line with its strategy to monetise non-core operations. • $31.7 million cash was released to the Group (before trans
Slide 23: Appendices
For personal use only Appendices 23
Slide 24: Statutory Account Reconciliations
Appendices Statutory Account Reconciliations For personal use only General comment on statutory accounts reconciliation • The “Statutory Accounts” show the consolidated results of the Company and its controlled entities, including the Benefit Funds of Centuria Life, which Centuria is required to con
Slide 25: Appendix 1: Income Statement
Appendix 1: Income Statement for six months ended 31 December 2014(i) Statutory Benefit Statutory For personal use only Accounts Funds Accounts excluding Benefit Funds $’000 $’000 $’000 Property funds management revenue 12,559 - 12,559 Investment bond revenue 3,972 (1,141) 5,113 Reverse mortgages re
Slide 26: Appendix 2: Summary Balance Sheet
Appendix 2: Summary Balance Sheet as at 31 December 2014(i) Statutory Benefit Statutory For personal use only Accounts Funds Accounts excluding Benefit Funds $’000 $’000 $’000 Assets Cash and cash equivalents (ii) 23,011 - 23,011 Assets classified as held for sale 13,635 - 13,635 Other financial ass
Slide 27: Appendix 3: Summary Cash Flow Statement
Appendix 3: Summary Cash Flow Statement for six months ended 31 December 2014(i) Statutory Benefit Statutory For personal use only Accounts Funds Accounts excluding Benefit Funds $’000 $’000 $’000 Cash flows from operating activities Management fees received 14,413 - 14,413 Benefit funds net payment
Slide 28: Disclaimer
Disclaimer For personal use only 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 19 February 2015. The information in this document is in
Slide 29: www.centuria.com.au
For personal use only www.centuria.com.au
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