Slide 1: FY 20 Results Investor Presentation
FY 20 RESULTS INVESTOR PRESENTATION Indy Singh – Executive Chairman, Fiducian Group Fiducian Group (ASX:FID) Rahul Guha – Executive Chairman, Fiducian Services 17 August 2020 1
Slide 2: Fiducian Group Investor Presentation
Fiducian Group Investor Presentation • FY 20 Highlights • Business Overview • Financials • Growth Strategy and Business Outlook • Key Dates and Contacts • Annexures 2
Slide 3: FY 20 Highlights
FY 20 Highlights *(FUMAA) – Funds Under Management, Advice and Administration | (FUA) – Funds Under Advice HIGHLIGHTS 3
Slide 4: FY 20 Highlights
FY 20 Highlights • Fiducian proved its resilience and remains growth focussed even in uncertain economic conditions • Throughout the pandemic our planners have maintained contact with clients and continued to assist them resulting in: • $217 million Net-flows to the platform – an increase of more th
Slide 5: Profit Generating Sustainable Business Model
Profit Generating Sustainable Business Model Management • Process driven, client focused investment products Funds • 15 Managed Funds: 4 Diversified Funds, 4 Sector Funds, 7 Specialist Funds • $2.90 Billion in Funds under Management (FUM) (30 June 2020: $2.79 Billion) Platform • Market competitive I
Slide 6: Funds Management
Funds Management • Fiducian process delivers above average returns with greater Diversification and below average risk • 15 Funds using Fiducian’s Manage-the-Manager (MTM) system of investment • Select expert Managers – with proven performance, differing investment processes / styles • Combine exper
Slide 7: WRAP Platforms (FSS/FIS) – FinTech (FORCe & FASTrack)
WRAP Platforms (FSSWRAP Platforms (FSS/FIS) – FinTech (FORCe & FASTrack) • Competitive Fees, Flexible Structure • Public offer “Superannuation Fund” • Investor Directed Portfolio Service (IDPS) • 15 – Multi-manager Funds using the Fiducian Manage-the-Manager system • 57 – Single Manager Fund Choices
Slide 8: Financial Planning – Focus on Quality and Expertise
Financial Planning – Focus on Quality and Expertise • We are selective in recruiting Financial Planners • National footprint with 41 offices, 74 representatives • 32 Franchised offices • 9 Salaried offices • $412 million FUA acquisitions in FY20 BUSINESS OVERVIEW 8
Slide 9: Integrated Business Model
Integrated Business Model Our clients experience the Fiducian difference: Financial Planning Administration / Platforms Funds Management Funds: $3.05 billion Funds: $2.19 billion Funds: $2.79 billion Revenue: $20.8 million Revenue: $19.1 million Revenue: $15.0 million Full Year Gross Revenue $54.9 m
Slide 10: Net Fund In-Flows in Platform
Net Fund In-Flows in Platform • Net In-flows of $217 million in FY 2020 • 107% increase to previous year • H2 Net-flows at $125 million increased 36% compared to H1 and 190% against comparative half in previous year • Both Salaried and Franchised networks contributing to the Inflows • Combination of
Slide 11: Financial Highlights
Financial Highlights FINANCIALS 11
Slide 12: FY 2020 Results: 9% UEBITDA Growth
FY 2020 Results: 9% UEBITDA Growth • Revenue increase from Organic & Inorganic inflows plus increased financial market valuations • Fund Management, Administration and Financial Advice performed strongly • Service provider costs increased in line with higher revenue • Staff and Other costs increased
Slide 13: Segment Results
Segment Results Funds Revenue for the full-year is $15.0 mil on average FUM $2.7 bil Top quartile performance has driven significant inflows Management Benefitting from scaled fees from underlying managers Platform Revenue for the full-year is $19.1 mil on average FUAdm $2.2 bil Scale efficiencies,
Slide 14: FID outperformance against All Ords Accum Index
FID outperformance against All Ords Accum Index • Since Jun 12, FID has outperformed All Ords by 495% (including dividend) • Dividend pay-out policy is 60-70% of Net Profit After Tax • Double digit EPS growth in 15 out of 20 years since listing • Full year dividends is 23.00 cents – 3% growth over t
Slide 15: Growth Strategy Outlook
Growth Strategy Outlook Funds Leverage of successful Manage-The-Manager Management model and expand in new markets where profitable Distribute Managed Accounts capabilities, offer Badged solutions Administration to IFA market and build on SMSF Administration Financial Continue to attract high qualit
Slide 16: Business Outlook – Revenue Streams
Business Outlook – 3 Revenue Streams Revenue Growth is a function of volume of FUMAA Example: Financial Platform Funds Under Planning FUMAA 3 Admin Management Advice Growth Revenue increase Increases $100 increases $300 mil Streams $100 mil mil $100 mil Plus, additional revenue growth if financial m
Slide 17: Projecting the Potential: Conceptual Representation
Projecting the Potential: Conceptual Representation The following is a concept extrapolation* of how increasing scale lifts EBITDA at an accelerating rate above a relatively fixed cost base: Funds under Management, Administration and Advice (FUMAA) & EBITDA * This is not a projection or a forward-lo
Slide 18: Industry Consolidation and Opportunities
Industry Consolidation and Opportunities • Grow Funds Under Advice organically and through strategic acquisitions of financial planning businesses • A number of established participants are exiting or have announced their intentions to exit the industry • New educational standards may expedite advis
Slide 19: Key Dates and Contacts
Key Dates and Contacts Key Dates • Record date for final dividend: Monday, 31 August 2020 • Final dividend payment date: Monday, 14 September 2020 • Annual General Meeting: Thursday, 22 October 2020 Contacts Investor Relations: Media Relations: Rahul Guha Julie Hargrave Executive Chairman, Fiducian
Slide 20: Five Year Summary: Financials
Five Year Summary: Financials Sustainable Growth history consistently over the long term ANNEXURES 20
Slide 21: Five Year Summary: Revenue and EPS Growth
Five Year Summary: Revenue and EPS Growth Top-line Revenue Growth: 9% annualised EPS Growth: 12% annualised Sustainability: Double-digit Growth in 15 out of 20 years since listing ANNEXURES 21
Slide 22: Five Year Summary: Expense Management
Five Year Summary: Expense Management Expanding Jaws: Revenue growth faster than Expense growth Improving Cost To Income (CTI) Ratio: From 63% in 2016 to 55% in 2020 Carefully managed expenses to support growth in infrastructure and revenue generating functions ANNEXURES 22
Slide 23: Dividends Growth
Dividends Growth • $1,000 invested in July 2012: 24% current year yield 18% Annualised Dividend growth ANNEXURES 23
Slide 24: Five Year Summary – Balance Sheet
Five Year Summary – Balance Sheet • Stable Cash position in excess of regulatory requirement of $8.5 mil to support growth initiatives • Significant reinvestments into business: $1 mil spent on client acquisitions in FY20 • Net Assets Growth 9.6% annualised ANNEXURES 24
Slide 25: Funds Under Management, Administration and Advice (FUMAA) Growth
Funds Under Management, Administration and Advice (FUMAA) Growth FUMAA Closing Balance (in $ bil) Years FUA FUM FUAdm Total Jun 15 1.54 1.37 1.17 4.08 Dec 15 1.66 1.47 1.25 4.39 Jun 16 1.82 1.59 1.32 4.74 Dec 16 1.94 1.76 1.45 5.15 Jun 17 2.14 1.96 1.58 5.68 Dec 17 2.31 2.21 1.79 6.31 Jun 18 2.41 2.
Slide 26: FUMAA Yearly Average Growth
Funds Under Management, Admin and Advice (FUMAA) Yearly average Growth FUMAA Average Balance (in $ bil) Years FUM FUAdm FUA Total 2016 1.47 1.22 1.73 4.42 2017 1.79 1.46 1.99 5.23 2018 2.17 1.75 2.26 6.18 2019 2.42 1.93 2.49 6.84 2020 2.73 2.24 2.98 7.95 ANNEXURES 26
Slide 27: Fiducian Offices
Fiducian Offices NSW Albury Gosford Nowra Tuggerah Bathurst Hunter Orange Windsor Bondi Junction Macarthur Randwick Wynyard Caves Beach Maitland Southern Highlands Coffs Coast Newcastle Sydney CBD Eastgardens Neutral Bay Tamworth Queensland Tasmania ACT Bayside Sunshine Coast Devonport Canberra Cabo
Slide 28: Disclaimer
Disclaimer Information in this document and given in the presentation is of a general nature. It is not intended to be, nor does it, constitute financial, legal or tax advice. The information is given in good faith and, although care has been exercised in compiling it, Fiducian Group Limited and the