Centrepoint Alliance Limited · ASX:CAF
Centrepoint Alliance — H1 FY2023 Earnings Presentation
22 slides from Centrepoint Alliance's earnings presentation, February 2023
Slide 1: FY23 H1 Results Presentation and Strategy Update
FY23 H1 RESULTS PRESENTATION AND STRATEGY UPDATE John Shuttleworth, CEO Brendon Glass, CFO February 2023
Slide 2: Disclaimer
Disclaimer This presentation is for general information purposes only and should be read in conjunction with the Half Year Financial Report for six months ending 31 December 2022 and the Appendix 4D lodged with the Australian Securities Exchange by Centrepoint Alliance Limited (ASX:CAF) on 23 Februa
Slide 3: Agenda
AGENDA BUSINESS RESULTS AND STRATEGY John Shuttleworth, CEO FINANCIAL RESULTS Brendon Glass, CFO OUTLOOK John Shuttleworth, CEO 3
Slide 4: Business Results
BUSINESS RESULTS John Shuttleworth, CEO
Slide 5: Key messages H1 FY23
Key messages H1 FY23 THE BUSINESS IS IN • Proven management team that have demonstrated ability to A STRONG POSITION integrate M&A targets and extract synergies 14 MONTHS POST • Disciplined approach to capital management and successful THE CLEARVIEW sale of non-core assets ADVICE (CVA) ACQUISITION A
Slide 6: Snapshot of H1 FY23 results
Snapshot of H1 FY23 results $134.3m $3.8m $16.4m Gross revenue EBITDA (normalised) Gross profit Excludes asset sales, $38.8m LTI and one-off costs $2.3m +41% $1.3m +16% on H122 +52% on H122 on H122 $3.7m $15.4m Dividend Fully franked and Profit before tax Cash to be paid 17 March 2023 0.5c Ordinary
Slide 7: Our focus over the last months has resulted in improvements in key financial metrics
Our focus over the last 14 months has resulted in improvements in key financial metrics 15.5 16.4 14.1 PRIORITIES OVER GROSS PROFIT LAST 14 MONTHS $m 1. Consistent operating model 3.8 2. Uniform licensee pricing 2.5 2.2 EBITDA1 3. Service level improvement $m 4. Increasing adviser satisfaction 4.2 3
Slide 8: Key financial metrics have shown consistent improvement
Key financial metrics have shown consistent improvement Pre-acquisition CVA integration Post-acquisition H1 FY21 H1 FY22 H1 FY23 Gross profit $15.5m $14.1m $16.4m EARNINGS EBITDA1 $2.2m $2.5m $3.8m GROWTH EBITDA margin 14% 18% 23% Recurring revenue % 87% 96% 95% Gross revenue $70.6m $95.5m $134.3m R
Slide 9: Centrepoint has performed strongly over the last two years relative to peers
Centrepoint has performed strongly over the last two years relative to peers and is now the number 3 licensee in the market based on adviser rankings Changes in advisers numbers by Licensee 1/1/2021 to 31/12/2022 Number Net Rank Licensee Group of ARs* Appointments Resignations change 1 Insignia 1,07
Slide 10: Centrepoint has a strong platform for future growth
Centrepoint has a strong platform for future growth 1 2 3 4 5 Objective GROW # SCALE SELF- GROW GROW LENDING BUILD LICENCED LICENCED SALARIED SOLUTIONS / PORTFOLIO ADVISERS SERVICE CHANNEL BROKING SOLUTIONS BUSINESS Baseline 511 authorised 194 self-licenced firms 5 advisers $3.2bn loan book $295m ma
Slide 11: Update - Lending as a Service (LaaS)
Update - Lending as a Service (LaaS) CORE BUSINESS NEW SERVICE LAUNCHED SEPTEMBER 2022 Boutique aggregator with infrastructure • Enabling advisers to build a lending business by operating to provide lending services as authorised representatives under our credit licence 80 brokers • Early signs posi
Slide 12: Financial Results
FINANCIAL RESULTS Brendon Glass, CFO
Slide 13: Financial results summary
Continued earnings momentum in H1 FY23 post-integration of CVA acquisition Financial results summary H1 FY221 H2 FY22 H1 FY23 • Gross revenue up $38.8m (+41% PCP) driven by $7.3m organic For the period ($m) ($m) ($m) licenced adviser growth and $31.5m through ClearView Advice Gross Revenue 95.5 133.
Slide 14: Revenue and expense analysis
Annuitised adviser fees uplift, CVA acquisition and continued expense management drive earnings increase Revenue and expense analysis Net Revenue movement ($m) $16.4 Key revenue movements (PCP) : $3.5 $14.1 $0.1 $0.5 $1.3 • Adviser fees up $0.5m with recently acquired advisers $0.3 transitioning to
Slide 15: Balance sheet
Strong cash position and debt-free balance sheet Balance sheet 30Jun22 31Dec22 • Cash of $15.4m, up $0.7m from June 2022 primarily due to For the period ended ($m) ($m) $2.9m net cash flow from operations offset by $2.0m dividends paid Cash & Term Deposits 14.7 15.4 • Claims provisions: 16 open clai
Slide 16: Cash movement H1 FY23
Robust cash performance generating $3.8m in cash from operations Cash movement H1 FY23 $3.8m $0.4m $2.0m $1.5m $2.0m • Cash in Dec 2022 closed at $15.4m $0.1m $0.2m $0.5m $15.4m $14.7m • H1 FY23 Cash from operations $3.8m • Claims paid out $0.1m • Other recoveries and other interest $0.2m • $1.5m fr
Slide 17: Balance Sheet Snapshot
Cash leverage, debt free, growing shareholder returns, immaterial credit risk and nominal claims risk Balance Sheet Snapshot Balance Sheet H1 FY21 H1 FY22 H1 FY23 • Robust cash balance with no debt Closing Cash $14.7m $11.9m $15.4m Net Tangible Assets • NTA at $9m with improved operating profit, loa
Slide 18: 2023 Outlook
2023 OUTLOOK John Shuttleworth
Slide 19: We remain very positive about the business outlook
We remain very positive about the business outlook Continued strong financial performance Integration complete with uniform operating model showing benefits of scale Sales pipeline is strong and conversion will result in organic growth Strategic initiatives progressing – Lending as a Service / Manag
Slide 20: Appendices
CENTREPwINT ALLIANCE
Slide 21: Centrepoint is a diversified financial services company
Centrepoint is a diversified financial services company There are four main lines of business LICENSEE LENDING INVESTMENT TECHNOLOGY SOLUTIONS SOLUTIONS MANAGEMENT SOLUTIONS Everything an adviser Everything a broker Managed portfolios Technology services to needs to run an advice needs to run a mort
Slide 22: Corporate snapshot
Corporate snapshot Capital structure Experienced and invested leadership team Top shareholders ASX stock code CAF Shares held Investors Board & Management Role As at 16/01/23 As at 16/01/2023 Shares held (% of SOI) H1 FY23 gross revenue $134.3m Mr Alan Fisher Non-Executive Chairman - Thorney Investm
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