Slide 1: FY24 Results Presentation and Strategy Update
FY24 RESULTS PRESENTATION AND STRATEGY UPDATE John Shuttleworth - CEO Brendon Glass - CFO 22 August 2024
Slide 2: Disclaimer
DISCLAIMER This presentation is for general information purposes only and should be read in conjunction with the Full Year Financial Report for twelve months ending 30 June 2024 and the Appendix 4E lodged with the Australian Securities Exchange by Centrepoint Alliance Limited (ASX:CAF) on 22 August
Slide 3: Agenda
AGENDA BUSINESS RESULTS John Shuttleworth - CEO FINANCIAL RESULTS Brendon Glass - CFO GROWTH STRATEGY & OUTLOOK John Shuttleworth - CEO
Slide 4: Business Results
BUSINESS RESULTS John Shuttleworth - CEO
Slide 5: Key Highlights for FY24
KEY HIGHLIGHTS FOR FY24 A strong result • Continued strong financial performance with EBITDA1 of $9.1m +20% FY23 driven by disciplined • Highest net adviser growth with +38 advisers - double the nearest execution of the competitor business strategy, • Financial Advice Matters acquisition has perform
Slide 6: Snapshot of FY24 Results
SNAPSHOT OF FY24 RESULTS $288.0m $36.1m $9.1m Gross revenue Net revenue EBITDA Excludes asset sales Excludes asset sales, $16.4m $3.6m LTI and one-off costs +6% +11% $1.5m on FY23 on FY23 +20% on FY23 $7.8m $12.2m Dividend Fully franked to be paid Profit after tax Cash 3 October 2024 $1.5m 1.75¢ at
Slide 7: Disciplined Execution Resulted in EBITDA Growth of 168% and Adviser Growth of 34%
DISCIPLINED EXECUTION OF THE BUSINESS STRATEGY HAS RESULTED IN EBITDA GROWTH OF 168% AND ADVISER GROWTH OF 34% FY21 FY22 FY23 FY24 9.1 7.2 7.62 3.4 +168% EBITDA1 $m Net revenue $28.1m $31.2m $32.5m $36.1m +28% Full time employees 90 104 100 125 +39% Cost to income ratio3 88% 77% 77% 75% -15% Profit
Slide 8: Centrepoint is the Licensee of Choice in the Market
CENTREPOINT IS THE LICENSEE OF CHOICE IN THE MARKET CHANGES IN ADVISER NUMBERS BY LICENSEE 1/7/2023 TO 30/6/2024 • Centrepoint experienced the largest net LICENSEE NUMBER NET RANK GROUP OF ARS 1 APPOINTMENTS RESIGNATIONS CHANGE growth in the market in FY24 1 Insignia 826 65 140 -75 • M&A activity is
Slide 9: Exit of Large Institutions Has Changed the Licensee Landscape
EXIT OF LARGE INSTITUTIONS HAS CHANGED THE LICENSEE LANDSCAPE RECONSTRUCTED TOP 10 LICENSEES POST AMP DIVESTMENT • Post acquisition of AMP Advice, Entireti NUMBER RANK LICENSEE GROUP OF ARS 1 will become the largest licensee when complete 1 Insignia (Fortnum + Australian Unity +AMP) 1,183 • Insignia
Slide 10: Financial Results
FINANCIAL RESULTS Brendon Glass - CFO
Slide 11: Financial Results Summary
Continued earnings uplift delivered through organic growth and FAM acquisition FINANCIAL RESULTS SUMMARY FY221 FY23 H1 FY24 H2 FY24 FY24 • Gross revenue up $16.4m (+6% PCP) For the period ($m) ($m) ($m) ($m) ($m) • Net revenue2 up 11% (+$3.6m) on PCP driven by Gross Revenue 228.5 271.6 140.5 151.2 2
Slide 12: Revenue and Expense Analysis
Adviser fees uplift, FAM acquisition and continued expense management driving earnings increase REVENUE AND EXPENSE ANALYSIS Net Revenue movement ($m) Key net revenue movements (vs. PCP): $3.6 $36.1 • Adviser fees up $1.6m driven by adviser growth through recently acquired advisers transitioning to
Slide 13: Net Revenue Growth
Group net revenue growing at 9% CAGR since FY21 with adviser fees & salaried advice business leading the way NET REVENUE GROWTH 3 Yr. CAGR 36.1 + 9% 32.5 31.2 28.1 3 Yr. CAGR + 23% 24.0 22.4 FY21 18.9 FY22 FY23 13.0 3 Yr. 3 Yr. FY24 CAGR + 63% CAGR 6.2 + 10% 6.7 4.7 2.8 3.0 2.2 1.4 2.5 2.5 1.8 1.4 1
Slide 14: Operating Leverage
High degree of operating leverage achieved through strong delivery on earnings accretive acquisitions despite net margin decline OPERATING LEVERAGE 350.0 28% 25% • Gross margin reducing from 23% 23% 20% FY21 to 13% 300.0 288.0 23% FY24 driven by change in 271.6 20% business mix to stickier 250.0 ann
Slide 15: Balance Sheet
Sound balance sheet with adequate leverage and additional $6.8m undrawn bank facility to drive inorganic growth BALANCE SHEET FY23 FY24 • Trade and other receivables increase of $2.1m due to $1.0m FY24 For the period ended ($m) ($m) recoverable ASIC levies, $0.6m contract assets and $0.4m FY25 Partn
Slide 16: Cash Movement FY24
Strong cash performance generating $9.1m in gross cash from operations CASH MOVEMENT FY24 • Cash in June 2024 closed at $12.2m $9.1m • FY24 Gross cash from $0.4m $0.4m operations $9.1m $0.9m • $0.9m one-off costs $0.7m $0.3m $3.2m comprised of $0.6m in employment redundancies and $0.3m acquisition-
Slide 17: Financial Snapshot
Disciplined expense management post FAM acquisition and EPS growth with nominal credit risk FINANCIAL SNAPSHOT Expense Management FY22 FY23 FY24 Balance Sheet FY22 FY23 FY24 Headcount FTE 104.1 100.3 125.3 Closing Cash $14.7m $15.6m $12.2m Employment Cost / Net Revenue 52.5% 52.3% 52.6% Net Current
Slide 18: Growth Strategy & Outlook
GROWTH STRATEGY & OUTLOOK John Shuttleworth - CEO
Slide 19: Centrepoint Has Five Strategic Pillars to Drive Growth
CENTREPOINT HAS FIVE STRATEGIC PILLARS TO DRIVE GROWTH Focus is on margin expansion and annuity revenue enabled by the strong distribution network of 1,374 financial advisers 1 2 3 4 5 GROW GROW BUILD SCALE LAUNCH GROW LICENCED AND SALARIED IN ASSET SUPER AND LENDING OBJECTIVE SELF-LICENCED ADVISERS
Slide 20: Pillar – Licenced and Self-Licensed Advice
PILLAR 1 – LICENCED AND SELF-LICENCED ADVICE CENTREPOINT IS WELL PLACED TO CAPTURE MORE ADVISERS THE CONTESTABLE MARKET CENTREPOINT IS WELL PLACED WITH WILL INCREASE WITH MARKET LEADING OFFERINGS IN DISLOCATION FROM RECENT LICENCED AND SELF-LICENCED ACQUISITIONS LICENCED • 15,3001 advisers in market
Slide 21: Acquisition of Financial Advice Matters (FAM)
PILLAR 2 – SALARIED ADVICE ACQUISITION OF FINANCIAL ADVICE MATTERS (FAM) • Completed transaction on 1 December 2023 • Integration complete – standardised technology and operating model • 7 months trading in FY24 results • Revenue of $3.6m and EBITDA of $1.0m. It is expected that the annualised run r
Slide 22: Building Distribution of Managed Account Solutions
PILLAR 3 – ASSET MANAGEMENT BUILDING DISTRIBUTION OF MANAGED ACCOUNT SOLUTIONS MANAGED ACCOUNT MARKET $b1 The market estimated Professionally managed portfolios constructed by the Ventura to reach $354b by 2026 investment team in partnership with Morningstar MODEL NAME RISK PROFILES iQ Portfolios (g
Slide 23: The Investment Platform Will Go Live in October 2024 With Super to Follow
PILLAR 4 – PLATFORM THE INVESTMENT PLATFORM WILL GO LIVE IN OCTOBER 2024 WITH SUPER TO FOLLOW INVESTMENT IDPS1 • Final technology release completed July 2024 • ASIC approval of Ventura AFS Licence variation completed • Disclosure documents and due diligence completed • Final testing being completed
Slide 24: Holdings QQ portiotio. Fut « + a 10)
Holdings QQ portiotio. Fut « + a 10) Search S002 ry crealeNew —Natcatons Logout Mr Christopher McDonald A, ick Links ‘Order | Go tothe cient Portal R1000518- Indu Quick Links Go tothe cient Portal ‘summary Hinge Asset location Pertrmance Transactions Portfolios Include External Assets? corey Portfol
Slide 25: The Platform Commercial Opportunity Is Significant
PILLAR 4 – PLATFORM THE PLATFORM COMMERCIAL OPPORTUNITY IS SIGNIFICANT 1. 2. 3. THE MARKET IS ATTRACTIVE AND MODEST INDEPENDENT PLATFORMS ARE PLATFORM PENETRATION OF OUR ADVICE NETWORK GROWING AT THE EXPENSE OF PROVIDERS TRADE AT CAN DRIVE SIGNIFICANT FUA INSTITUTIONAL PLAYERS SIGNIFICANTLY Percent
Slide 26: Total Lending Revenue Grew From $1.44m in FY23 to $1.76m in FY24
PILLAR 5 – LENDING TOTAL LENDING REVENUE GREW FROM $1.44M IN FY23 TO $1.76M IN FY24 WHICH WAS A 22% INCREASE. EBITDA INCREASED 33% TO $0.8M BOUTIQUE AGGREGATOR WITH LENDING AS A SERVICE (‘LAAS’) PROVIDES INFRASTRUCTURE TO PROVIDE FULL-SERVICE LENDING FOR ADVISERS LENDING SERVICES WITHIN THE NETWORK
Slide 27: Summary and Outlook
SUMMARY AND OUTLOOK The Company • CAF continues to recruit advisers and is benefiting from industry is well consolidation positioned to • Focused on accelerating growth of higher margin salaried advice continue to business through further acquisitions grow revenue • New initiatives such as Managed A
Slide 28: Appendix
CENTREPSGINT ALLIANCE APPENDIX
Slide 29: Corporate Snapshot
CORPORATE SNAPSHOT EXPERIENCED AND INVESTED CAPITAL STRUCTURE LEADERSHIP TEAM TOP SHAREHOLDERS ASX stock code CAF Shares held Investors Board & Management Role As at 15/07/24 As at 15/07/2024 Shares held (% of SOI) FY24 gross revenue $288.0m Mr Georg Chmiel Chairman 0.97m (0.5%) Thorney Investment G
Slide 30: Questions
CENTREPSGINT ALLIANCE QUESTIONS