Psg Financial Services Limited · JSE:KST
Psg Financial Services — FY2025 Earnings Presentation
30 slides from Psg Financial Services's earnings presentation, Feb 28, 2025
Slide 1: Investor Presentation 2025 Financial Results
Investor Presentation 2025 Financial Results For the year ended 28 February 2025
Slide 2: Contents
Contents 1. FY 2025: Financial Results 2. FY 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 260 Adviser offices 971 Advisers FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 No. of advisers 932 952 947 953 971 PSG Wealth 563 584 590 608 635 PSG Insure* 369 368 357 345 336 No. of offices 263 263 266 266 260 Source: PSG Distribution * Histori
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 6: FY 2025: Financial Results
01 | FY 2025 : Financial Results 6 Copyright © PSG
Slide 7: Key macro indicators
Key macro indicators Volatile economic environment Key indicators FY 2021 %∆ FY 2022 %∆ FY 2023 %∆ FY 2024 %∆ FY 2025 Rand / US$ 15.15 2% 15.45 19% 18.36 5% 19.18 -3% 18.57 All Bond Index 765 9% 834 5% 875 8% 942 18% 1 108 FTSE/JSE Index 66 138 15% 76 091 2% 77 734 -6% 72 730 18% 85 943 S&P 500 (Ran
Slide 8: FY 2025 financial results overview
FY 2025 financial results overview Recurring HEPS grew by 25% for FY 2025 Consolidated results FY 2021 %∆ FY 2022 %∆ FY 2023 %∆ FY 2024 %∆ FY 2025 CAGR Headline earnings 697 32% 921 3% 948 9% 1 033 23% 1 272 16% Recurring headline earnings 704 31% 921 3% 948 9% 1 033 23% 1 272 16% Weighted average n
Slide 9: Recurring Headline Earnings By Division
Recurring Headline Earnings By Division Total recurring headline earnings growth of 23% year on year Recurring Headline Earnings** FY 2021* %∆ FY 2022 %∆ FY 2023 %∆ FY 2024 %∆ FY 2025 CAGR Wealth 448 14% 510 11% 569 17% 666 15% 763 14% Asset Management 105 133% 244 -10% 220 -1% 217 37% 297 30% Insur
Slide 10: Financial Trend
Financial Trend We always look at our 10 year rolling track record YoY FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020 FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 CAGR % FY 2024 FY 2025 Gwth % AUM (Rbn) 133 154 175 205 222 230 268 315 354 407 471 13% 407 471 16% Premiums (Rbn)* 2.1 2.5 2.9 3.3 4.5 5.5 5
Slide 11: FY 2025: Divisional Performance
02 | FY 2025: Divisional Performance 11 Copyright © PSG
Slide 12: Wealth Plans
Wealth Plans Growing and protecting client wealth Market Wealth Assets Split Feb-24 Net flows Feb-25 % Growth movement Excellence in products & services PSG Multi Managed * 175 839 14 708 12 998 203 545 16% Third party funds ** 109 683 8 966 7 121 125 771 15% Stockbroking portfolios 69 566 10 644 43
Slide 13: Wealth
Wealth Excellence in products and services Net Flows (Rm) ALSI Independent 23% 40% -10% -15% -40% 55% 54% -14% 0% process with 14 000 90 000 advisers’ 11 886 oversight 12 000 10 820 10 267 80 000 10 291 9 735 10 000 2 150 1 167 70 000 2 357 5 819 3 524 8 291 7 734 7 733 201 8 000 60 000 1 401 Rapid
Slide 14: Top Advisers
Top Advisers We continue to add top advisers to our PSG Wealth distribution business Wealth advisers (incl. EB) FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Balance – opening 559 563 584 590 608 Net movement 4 21 6 18 27 Balance – closing 563 584 590 608 635 Growth 1% 4% 1% 3% 4% Source: PSG Distribution
Slide 15: Asset Management Plans
Asset Management Plans Net new money at acceptable margin Market AM assets split Feb-24 Net flows Feb-25 % Growth movement Focused marketing PSG Single manager * 49 562 4 398 3 587 57 547 16% Investment PSG Money market and related assets* 2 274 2 930 3 206 41% performance Total assets under managem
Slide 16: Asset Management
Asset Management ‘Brick by Brick’ strategy Net Flows (Rm) ALSI 81% 117% -591% 228% -72% 607% 4% -62% 458% Long-term assets 4 000 3 832 90 000 (retail emphasis) 3 000 1265 80 000 1 809 2 000 1 740 72 145 70 000 868 687 2 565 1 000 1 668 1 664 138 246 60 000 837 927 86 1 022 387 160 0 -59 Getting adeq
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 48 57 18 6 11 2 PSG Flexible 01-Nov-04 Return 12.9% 6.6% 10.3% 15.6% 8.5% 13.6% Rank 111 97 10 5 27 5 PSG Equity
Slide 18: Gross written premium
Insure Grow gross written premium income PSG Insure gross written premium (Rm) %∆ 4% 9% 12% 8% 10 000 9 421 Top advisers 8 701 9 000 7 796 Gross written premium 8 000 2 650 7 133 2 307 6 830 7 000 1 919 1 675 6 000 1 604 Excellence in 1 722 1 800 5 000 1 609 underwriting 1 321 1 441 4 000 3 000 4 67
Slide 19: Top Advisers
Top Advisers We continue to add top advisers to our Insure Distribution business Insure advisers FY 2021 FY 2022 FY 2023 FY 2024 FY 2025 Balance – opening 376 369 368 357 345 Net movement -7 -1 -11 -12 -9 Balance – closing 369 368 357 345 336 Growth -2% 0% -3% -3% -3% * Decrease in Insure advisers d
Slide 20: Western National Insurance
Western National Insurance Net insurance result & shareholders income NIBT (Rm) Underwriting margin Key differentiators %∆ 51% -17% 43% -44% 79% -29% 24% 14% 27% • Personalised service to 220 214.0 25% brokers 200 22.7% • Focus on commercial business 180 169.0 168.6 168.0 74.1 20% 160 142.8 17.2% 33
Slide 21: 2025: Focus
03 | 2025: Focus 21 Copyright © PSG
Slide 22: Top Line Focus
Top Line Focus Core operations (excl. IFRS Consolidated fund and policyholder related income) 9 000 8 360 8 000 7 329 7 000 6 494 3 108 6 039 6 000 5 268 2 793 Top line revenue (Rm) 2 423 5 000 2 227 1 028 4 000 2 171 853 787 799 3 000 462 2 000 4 224 3 683 3 012 3 284 2 635 1 000 0 FY2021 FY2022 FY
Slide 23: Reducing risk
Reducing risk Recurring revenues Margin enhancing Risk vs return FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 FY21 FY22 FY23 FY24 FY25 Perf fees / HE* 0.6% 10.6% 6.5% 2.8% 3.7% Op margin 16.8% 19.9% 18.0% 16.9% 17.4% ROE* 20.4% 23.8% 22.7% 23.4% 26.6% Op margin ROE * Recurring HEPS 52.7c 69.7c
Slide 24: Return and Trading Statistics
04 | Return and Trading Statistics 24 Copyright © PSG
Slide 25: TRI of PSG Financial Services
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 19% 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) 2005/04/11 40 - 2.9 - 3.0 - 13.8 13.3 20
Slide 27: Trading Statistics
Trading Statistics Creating shareholder value Statistic% FY 15 FY 16 FY 17 FY 18 FY 19 FY 20 FY 21 FY 22 FY 23* FY 24 FY 25 No. of shares in issue (millions) 1 262 1 279 1 322 1 342 1 365 1 358 1 341 1 331 1 296 1 280 1 261 No. of shares traded (millions) 61.8 113.9 111.7 91.9 83.5 112.0 127.4 91.7
Slide 28: Conclusion
05 | Conclusion 28 Copyright © PSG
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
Slide 30: End - Thank You
End - Thank You Copyright © PSG
PSG Financial Services — FY2025 Earnings Presentation on 6ix