Prime Financial Group Limited · ASX:PFG
Prime Financial — Investor Presentation (August 2021)
20 slides from Prime Financial's investor presentation, Aug 20, 2021
Slide 1: Full Year 2021 (FY21) Results Presentation
Prime Financial Group Ltd (ASX: PFG) Full Year 2021 (‘FY21’) Results Presentation 20 August 2021
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer This investor presentation (Presentation) has been prepared by Prime Financial Group Limited Disclaimer (‘Prime’). No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and concl
Slide 3: FY21 Key Financial Highlights
FY21 Key Financial Highlights Underlying EBITDA Margin Growth Increase in net operating Growth (members/ (members/ Final dividend up cashflow shareholders) shareholders) +22% +4% to 30% +48% +60% Revenue Growth Total expenses lower Reduction in Net Debt -27% to 1.0 times +4% -3% Underlying EBITDA (m
Slide 4: Who We Are
Who We Are Service Integrated Accounting & Business Advisory, Wealth Management, SMSF and Capital Services with over $1.1 billion of client funds under management (FUM) Core Hub – Brisbane Purpose • Accounting & Business Advisory • Wealth Management & Protection Empowering you to achieve your aspira
Slide 5: Segment Services & Revenue
Wealth Management & Protection plus SMSF – 41% Segment Services & Revenue • Financial Planning & Strategic Advice • Retirement Planning • Superannuation Advice • Prime operates a direct client advice model • Investment Advice under the Prime brand (78% of revenue) • Life Insurance and a Wealth Manag
Slide 6: Capital Structure & Comparisons
Capital Structure & Comparisons Top 20 Shareholders Prime’s Capital Structure Shares on issue (includes treasury shares) at 30 June 2021 195.3m 68% Market Capitalisation at 11.5 cents at closing on 16 August 2021* $21m Net debt at 30 June 2021 $7.1m Investment Information Prime’s Comparable Companie
Slide 7: Key Financial Information
Key Financial Information FY21 vs FY20 Prime – Prime’s key profitability measure is Prime – Group Members/Shareholders Underlying EBITDA for Financial Highlights* members/shareholders Chang FY21 FY20 Change FY21 FY20 e Underlying EBITDA for members/shareholders removes the Underlying impact of finan
Slide 8: Revenue
Revenue Analysis of Revenue – FY21 vs FY20 Revenue Revenue Growth FY21 FY20 FY21 vs FY20 • Focus on core services in growth $m $m (%) segments: Accounting, Business Advisory & Capital 13.2 12.0 10% • Business & Corporate Advisory Services Wealth Management & SMSF 9.1 9.5 (4%) • Wholesale & Family Of
Slide 9: Revenue - Inorganic Growth
Revenue - Inorganic Growth Capital & Corporate Advisory Team Growth (August 2021) Key Takeaways Dan Taylor and David Gulson of Alpin Advisory joined Prime’s Capital and Corporate • Prime continues to scale and attract Advisory team in August 2021. key talent and leaders across all four divisions Alp
Slide 10: Expenses & EBITDA
Expenses & EBITDA Total Expenses by Year Expense Reduction % FY19 19.3 Total Expenses • Strong cost controls change FY20 18.0 -6% $m • Centralised services structure Total FY21 17.5 -3% Expenses • Scaling back-office services overseas, and • Leverage from IT investment efficiencies and better Underl
Slide 11: Margin & Cashflow Improvement
Margin & Cashflow Improvement Analysis of Operating Margin by Year Key Takeaway % Operating Margin • Margins have been improving through the 30% ‘positive jaws’ of revenue 26% 19% increases and expense FY19* reduction FY20 FY21 Net Operating Cashflow by Year % Net FY19 +1.6 Operating Cashflow growth
Slide 12: Dividends
Dividends • Target dividend payout ratio of 40 – 60% of reported and maintainable earnings Key dates for • FY21 final dividend declared of 0.40 cents per share (‘cps’) (fully franked) vs final dividend of Dividend and DRP 0.25 cps in FY20 (+60%) • FY21 payout ratio of 41% of reported NPAT for member
Slide 13: Balance Sheet, Cash Flows & Net Debt
Balance Sheet, Cash Flows & Net Debt Balance Sheet Key Takeaways At 30 June 2021 At 30 Jun 2020 Group • Net debt reduction to $7.1m (-27%) $m $m from $9.8m at 30 June 2020 Cash 0.1 0.1 • Net operating cashflow of $5.5 Total assets 58.3 58.9 million Borrowings (7.2) (9.9) • Investing cash outflow inc
Slide 14: Clients and the Community
Clients and the Community Clients Accounting & Business • In 2021, Prime’s Net Promoter Score (NPS) improved by 34%, a top quartile performance when measured against the 2019 survey. Advisory NPS 2019 2021 ✓ Accounting & Business Advisory +54 (an improvement of 15) ✓ Wealth Management NPS +41 (an im
Slide 15: Strategic Plan
Strategic Plan ‘ONECONNECTED’ PROFESSIONAL AREAS & OBJECTIVES FY22 KEY PRIORITIES SERVICES FIRM Purpose Financial Growth Empowering you to achieve your Grow Underlying EBITDA for members/shareholders • Continue to integrate Prime’s client base - OneConnected firm aspirations whilst improving dividen
Slide 16: Outlook for Members/Shareholders – FY22
Outlook for Members/Shareholders – FY22 ✓ Increased Earnings & Revenue Growth ✓ More actively exploring Growth Opportunities ✓ Increased dividends - Forecast to increase from 0.70cps (FY21) to 1.00cps (FY22) +40% ✓ Debt to decrease from 1.00 times Underlying EBITDA for members/shareholders to 0.50 –
Slide 17: Appendices
Appendices
Slide 18: EBITDA & NPAT
EBITDA & NPAT Attributable to Members/Shareholders Reconciliation $’000 AUD FY21 FY20 Reported net profit after tax from operations (Group) 3,690 2,787 Add: Tax expense 1,160 724 Add: Interest expense/(income) 443 541 EBIT (Group) * 5,293 4,052 Add: Depreciation 54 188 Add: Amortisation 1,734 1,897
Slide 19: Experienced Board
Experienced Board Simon Madder Tim Bennett Chief Executive Officer, Managing Director & Executive Director (effective 3 July 2020) & Chairman Managing Director – Capital • Co-founder, Managing Director & CEO of Prime Financial • Established the Capital & Corporate Advisory division. Group Ltd (Prime
Slide 20: Contact
Contact Simon Madder Managing Director, CEO & Chairman Prime Financial Group Ltd T (03) 9827 6999 E simonm@primefinancial.com.au W www.primefinancial.com.au Rory McLaughlin Group Financial Controller Prime Financial Group Ltd T (03) 9827 6999 E rorym@primefinancial.com.au W www.primefinancial.com.au
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