Slide 1: Result Announcement for the full year ending 30 June 2011
Result Announcement for the full year ending 30 June 2011 Centuria Capital Limited Presentation to Investors and Analysts updated 13 September 2011
Slide 2: 2011 Financial Year Highlights
2011 Financial Year Highlights Realising our Growth Strategy Property FUM increase by 40% during financial year $1 billion property FUM milestone achieved Total group FUM increased by 16% to $1.93 billion Brand Consolidation Rebranding to Centuria completed - core divisions now share common branding
Slide 3: 2011 Key Business Highlights
2011 Key Business Highlights Implementing growth strategy - increasing FUM Growth in group FUM in 2011 by 16% Total Funds Under Management ($bn) 2.50 2.00 Reverse Mortgage 1.50 FUM ($bn) Centuria 1.00 Life FUM ($bn) 0.50 Centuria Property FUM ($bn) - 2007 2008 2009 2010 2011 Centuria Capital Limited
Slide 4: 2011 Key Business Highlights
2011 Key Business Highlights Successful brand consolidation to Centuria – taking us from a collection of companies, to a single diversified funds manager. Centuria Property Funds successfully completed two major property funds and was awarded the management rights for a major national portfolio of f
Slide 5: 2011 Key Business Highlights
2011 Key Business Highlights Ongoing focus on Capital Management * Continued low level of corporate gearing (excluding non recourse debt and convertible notes). Successful completion of unmarketable parcel buy-back reducing the number of shareholders by 29% to ~16,000 at present. * 2011 increase in
Slide 6: Divisional Revenue
Divisional Revenue (excl. Benefit Funds) , Year ended 30 June 2011 2011 2010 $000’s $000’s Centuria Life 13,453 14,030 Reverse Mortgages 16,294 16,781 Centuria Property Funds 13,015 11,419 Insurance 1,341 1,319 Other (i) 4,012 5,413 48,115 48,962 (1) Includes Corporate, Property Investments, Mortgag
Slide 7: Underlying Results
Underlying Results (excl. Benefit Funds) , Year ended 30 June 2011 2011 2010 Underlying net profit by major division $000’s $000’s - Centuria Property Funds 4,755 5,378 - Centuria Life 9,137 8,925 - Reverse Mortgages 3,495 3,130 - Insurance 1,037 1,011 - Corporate (8,601) (6,204) - Other (Property I
Slide 8: Significant and Non-recurring Items
Significant and Non-recurring Items (excl. Benefit Funds) , Year ended 30 June 2011 2011 2010 $000’s $000’s Underlying earnings after tax 6,357 7,834 Non-recurring adjustments - Prior year non-recurring adjustments (including tax effect) - (1,516) - Impairment of investment in associates (Mortgagepo
Slide 9: Centuria Property Funds
Centuria Property Funds Strong Growth in FUM Property Funds Under Management ($bn) Operating EBIT contribution $4.8m. 1.50 Consistent with Centuria’s growth 1.00 Property FUM strategy, property FUM has increased ($bn) Centuria 200 Creek Street Fund 0.50 40% from 30 June 2010 to 30 June 2011. • Fund
Slide 10: Centuria Property Funds (continued)
Centuria Property Funds (continued) Key Achievements (continued) Responsible Entity appointment to Becton Office Fund No 2 (now COF2) and Becton Diversified Direct Property Fund (now CDDPF) – resulting in significant accretive earnings to Centuria shareholders as well as increased distributions retu
Slide 11: Centuria Life
Centuria Life Strategic appointment of Head of Marketing and Distribution to focus on growth of existing products and opportunities for new investment solutions. The Centuria Life division continues to generate strong and stable cash earnings to the Centuria Group. FUM balance as at 30 June 2011 was
Slide 12: Insurance
Insurance Continued consistent contributor to Centuria Group earnings – 2011 EBIT $1.04m. Maintained high customer retention over time. Continued Strong Customer Retention Rate 92% 90% 88% 86% 84% 82% 80% 78% 2006 2007 2008 2009 2010 2011 Over Fifty Insurance Home Over Fifty Insurance Motor Source:
Slide 13: Reverse Mortgages
Reverse Mortgages Value of mortgage book at 30 June 2011 - $192 million (30 June 2010: $197 million). Non-recourse loan at 30 June 2011 - $165 million (30 June 2010: $176 million). Loan facility maturity date extended to 31 March 2013. Significant embedded shareholder equity in the portfolio increas
Slide 14: 12-month Outlook
12-month Outlook Centuria businesses are increasingly well positioned to benefit from future growth Ongoing volatility in financial markets will create weaker asset prices and further accretive acquisition opportunities. Strength in diversity Core strength in diversification of our income streams. B
Slide 15: Future Growth
Future Growth Centuria Capital is currently implementing an aggressive growth strategy to take advantage of acquisition opportunities in the current market. Centuria Capital has been, and is currently reviewing a number of potential corporate or funds management acquisition opportunities. Centuria P
Slide 16: Appendices
Appendices Statutory Account Reconciliations General comment on statutory account reconciliation The “Statutory Accounts” show the consolidated corporate entities including the Benefit Funds which Centuria is required under AIFRS to consolidate. The “Benefit Funds” reflect value of stand alone polic
Slide 17: Appendix 1: Income Statement
Appendix 1: Income Statement for year ended 30 June 2011 Statutory Accounts Benefit Funds Corporate Accounts $m $m $m Revenue 33 - 33 Revenue from Centuria Life 13 - 13 Net revenue from benefit funds 4 4 - Other income 2 - 2 Total revenue 52 4 48 Finance costs 17 - 17 Employee benefits expense 7 - 7
Slide 18: Appendix 2: Balance Sheet
Appendix 2: Balance Sheet as at 30 June 2011 Statutory Accounts Benefit Funds Corporate Accounts $m $m $m Assets: Cash and Equivalents 12 - 12 Trade and other receivables 11 - 11 Financial assets at fair value 2 - 2 Other financial assets 6 - 6 Reverse Mortgage Loans 192 - 192 Investment property 23
Slide 19: Appendix 2: Balance Sheet (continued)
Appendix 2: Balance Sheet as at 30 June 2011 (continued) Statutory Accounts Benefit Funds Corporate Accounts $m $m $m Liabilites: Trade and other payables 5 - 5 Corporate debt 9 - 9 Borrowings – recourse to investment property only 23 - 23 Borrowings - Reverse Mortgages 165 - 165 Other liabilities 7
Slide 20: Appendix 3: Cash Flow Statement
Appendix 3: Cash Flow Statement for year ended 30 June 2011 ) Statutory Accounts Benefit Funds Corporate Accounts $m $m $m Cash flows from operating activities Interest received 1 - 1 Dividends received - - - Management fees received 19 - 19 Rent, trust and other income received 16 - 16 Benefit fund
Slide 21: Appendix 3: Cash Flow Statement (continued)
Appendix 3: Cash Flow Statement for year ended 30 June 2011 (continued) Statutory Accounts Benefit Funds Corporate Accounts $m $m $m Cash flows from financing activities Proceeds from issue of equity securities 2 - 2 Loans from related entities (4) - (4) Benefit funds (6) (6) - Proceeds from borrowi
Slide 22: Disclaimer
Disclaimer This document has been issued by Centuria Capital Limited This document is not a recommendation or personal advice ABN 22 095 454 336 and contains general information about in relation to Centuria or any product or service offered by Centuria Capital Limited and its related bodies corpora