Count Limited · ASX:CUP
Count — FY2023 Earnings Presentation
39 slides from Count's earnings presentation, Aug 30, 2023
Slide 1: 2023 Full-Year Results Presentation and Investor Discussion
ASX announcement Count Limited 2023 Full-Year Results Presentation and Investor Discussion 30 August 2023 Sydney, Australia This presentation has been authorised for release to the ASX by the Board of Count Limited. 2023 Full-Year Results Presentation 1
Slide 2: Recap on ambition and strategy
Recap on ambition and strategy 2023 Full-Year Results Presentation 2
Slide 3: A clear ambition was supported by five pillars
A clear ambition was supported by five pillars in our FY2023 strategic growth plan Our ambition The leading provider of integrated accounting and wealth services, helping clients through our dynamic perspective that identifies insights from their past, maximises their present and plans for a future
Slide 4: Our network is strong and growing
Our network is strong and growing 379 563 Accountants Financial in equity firms Advisers 23 2 $16.8B 12 1 13 2 68 724 2,663 Funds under 49 7 1 advice Services Accounting Wealth 1 70 6 193 $256M 3,455 AFSL member firms Aggregated Firms revenue Equity partner firms – Accounting Equity partner firms –
Slide 5: Group Results
Group Results 2023 Full-Year Results Presentation 5
Slide 6: FY2023 reported headline results
FY2023 reported headline results Reported Reported EBITA NPAT attributable Reported -0.2% Reported Revenue +7% Contribution +6% to $91.5M +13% to $12.2M Includes impairment to $5.1M Includes impairment to $48.6M and write-downs and write-downs of $2.4M of $1.7M Earnings Final dividend Group emplo
Slide 7: A significant year of transformation, delivery and growth
A significant year of transformation, delivery and growth Headline growth • Adjusted EBITA reflecting the Group’s trading and M&A activities is $10.4M, an increase in adjusted EBITA* of $+1.5M (+17%) from adjusted EBITA in FY2022 of $8.8M. performance and dividends • Adjusted EBITA in 2H23 of $5.4M,
Slide 8: Execution of an operational review in 1HFY23
Execution of an operational review in 1HFY23 set the platform for growth in 2HFY23 Growth and profitability • Accounting segment average adjusted EBITA margin in line with FY2022 at 18%. in Accounting • Accounting segment lock up of 82 days (FY2022: 76 days) reflecting previously identified sector-w
Slide 9: All aggregated segments delivered profit growth
All aggregated segments delivered profit growth Total Accounting Wealth Services FY2023 FY2022 Movement FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 % $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Gross revenue 255,712 219,083 +17% 125,810 115,225 122,595 98,851 7,307 5,007 Fees (106,081) (84,499) –
Slide 10: FY2023 Final Dividend
FY2023 Final Dividend • Final FY2023 dividend of 2.25 cents per share, fully franked Key dates for (Final FY2022 dividend of 2.00 cents per share). Final FY2023 • Target dividend pay-out ratio of 60% to 90% of maintainable dividend net profit after tax attributable to Count shareholders for Ex-Divid
Slide 11: Reconciliation of adjusted segment EBITA attributable to shareholders to reported NPATA
Reconciliation of adjusted segment EBITA attributable to shareholders to reported NPATA Total Accounting Wealth Services FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 FY2023 FY2022 $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Adjusted segment EBITA attributable to 14,921 13,671 12,379 10,249 2,230 1,
Slide 12: Detailed financials
Detailed financials 2023 Full-Year Results Presentation 12
Slide 13: Reported and adjusted EBITA bridge
Reported and adjusted EBITA bridge Acquisitive growth Basis of analysis: This analysis is prepared by deducting non-recurring gains and losses, including the impact of business Acquisitions WSC Group, Affinia Financial Advisers operations that are being discontinued, along with the prior year impact
Slide 14: Strong momentum evidenced in 2H23
Strong momentum evidenced in 2H23 following 1H23 operational review 1H23 2H23 Movement Movement $’000 $’000 $’000 % Adjusted aggregated gross revenue - Accounting 62,375 63,435 1,060 Adjusted aggregated gross revenue – Wealth 55,780 66,815 11,035 Adjusted aggregated gross revenue – Services 3,542 3,
Slide 15: Statutory Cash Flow bridge
Statutory Cash Flow bridge Statutory Cash Flow Bridge – 1 July 2022 to 30 June 2023 - $’000 Cash on hand is flat from 30 June 2022 due to acquisitions completed during the financial year Two further acquisitions completed during 1H23 are not included in the that have impacted the Group statutory cas
Slide 16: Accounting
Accounting 2023 Full-Year Results Presentation 16
Slide 17: Accounting delivered growth despite sector-wide resourcing challenges
Accounting delivered growth despite sector- wide resourcing challenges Aggregated Aggregated Aggregated Aggregated adjusted firm EBITA adjusted revenue contribution margin EBITA +9% +11% +8% 18% to $125.8M to $60.1M In line with FY2022 to $22.2M Accounting Lock up days segment -8% acquisitions t
Slide 18: We delivered on our M&A ambition
We delivered on our M&A ambition, and the pipeline remains strong New Equity Partnerships Tuck-ins and mergers Further growth in Count network of equity partnerships Tuck-ins and mergers provide further scale to existing equity with the addition of two quality firms partnerships and expand their geo
Slide 19: Wealth
Wealth 2023 Full-Year Results Presentation 19
Slide 20: Wealth delivered a standout performance
Wealth delivered a standout performance Aggregated Aggregated Aggregated Revenue contribution adjusted EBITA Number of advisers +24% +27% +23% +27% to $122.6M to $12.8M to $2.6M To 379 Increase in gross Net new business earnings advisers Client funds under advice of +19% +101 $16.8B to $97.7M
Slide 21: We delivered on our ambition to scale wealth
We delivered on our ambition to scale wealth • Opportunity to scale up Wealth segment with the addition of more than 100 quality advisers. • Affinia to leverage Count’s market-leading licensee proposition and a small number of key resources transitioned to Count to provide ongoing support to firms.
Slide 22: Gross business earnings per adviser increased
Gross business earnings per adviser increased +24% over FY2022 Number of Advice Documents 30,000 25,065 • Advice Documents written up +2% from FY2022. 24,606 25,000 • Gross Business Earnings (GBE) up +19% from FY2022. 20,000 17,690 • GBE per Adviser up +24% from FY2022. 15,000 11,705 10,000 5,000 -
Slide 23: We doubled our market share of Financial Advisers in FY2023
We doubled our market share of Financial Advisers in FY2023 Total Financial Advisers in the Industry 22,000 21,397 • Count Advisers increased by +36% from FY2022. 20,000 18,947 • Number of Count clients increased +6% from FY2022. 18,000 • Advisers in the Industry decreased by -5% to 15,567 in FY2023
Slide 24: Commonwealth Bank of Australia partnership update
Commonwealth Bank of Australia (CBA) partnership update Remediation Provision • In an ASX announcement dated 8 December 2022, CBA raised the indemnity for Count Financial to $520M. • Amount of remediation offered as at 30 June 2023 was $505M. • Amount of remediation paid as at 30 June 2023 was $424.
Slide 25: Services
Services 2023 Full-Year Results Presentation 25
Slide 26: Despite a reset in the services segment, revenue grew
Despite a reset in the services segment, revenue grew +4% and profit grew +3%* Technology services Actuarial certificates Accurium education revenue events registrations +2% +11% to 63.8K to $1.9M 8,400 Accurium named Outsourcing revenue Provider of +90% the year to $1.4M 2022 CoreData awards Not
Slide 27: Q&A
Q&A 2023 Full-Year Results Presentation 27
Slide 28: Appendices
Appendices 2023 Full-Year Results Presentation 28
Slide 29: Count wholly-owned subsidiaries, partially owned subsidiaries and associates
Appendix 1 – Count wholly-owned subsidiaries, partially owned subsidiaries and associates Accounting Firms Shareholding Accounting Firms Shareholding No. No. Wholly-owned subsidiaries % Associates % 1. CountPlus One Pty Ltd 100.00 12. Southern Cross Business Holdings Pty Ltd 49.00 2. Bentleys (WA) P
Slide 30: The market for advisory is strong and growing
Appendix 2 - The market for advisory is strong and growing Demand for services remains strong • While cost-of-living pain is being felt across the Australian community, one cohort has remained largely immune – those aged over 55. • This demographic sits at the wealth industry’s core, with wealth ser
Slide 31: Our firms are well positioned to enjoy growth
Appendix 3 – Our firms are well positioned to enjoy growth Accounting and wealth services well positioned for growth • Accounting and wealth firms have shown agility and resilience during the upheavals of recent years. As economic conditions stabilise, the sector is primed for growth. • While the br
Slide 32: Accounting acquisition
Appendix 4 – Accounting acquisition Strong community ties drive Bruce Edmunds & Associates When Bruce Edmunds & Associates became the newest firm to join Count’s national community in July 2023, it started a new chapter for a family business with more than five decades of experience in providing fin
Slide 33: Accounting acquisition
Appendix 5 – Accounting acquisition Collaboration the key to success for WSC Financial services firm WSC Group (WSC) joined the Count community in August 2022 following a 32.75% strategic investment in the business. For WSC, the decision to partner with Count was driven by growth aspirations and the
Slide 34: Count brand launched to clients
Appendix 6 – Count brand launched to clients Launching our strong, nationally recognised brand In May 2023, Count launched a clearly defined value proposition to the market through a single, strong brand focused on making a positive difference to clients. Combining the old CountPlus and Count Financ
Slide 35: Affinia acquisition from TAL
Appendix 7 – Affinia acquisition from TAL Affinia acquisition a boost for Count’s growth objectives In May 2023, Count completed the acquisition of Affinia Financial Advisers Limited (Affinia) from TAL, a leading Australian life insurer. The acquisition was a game changer for Count’s Wealth segment,
Slide 36: Growth in Services
Appendix 8 – growth in Services Accurium doubling down on educational offering Count’s strategic investment in services businesses that support its core accounting and wealth operations is proving beneficial, as Accurium expands its educational offering with innovative new tools and training to supp
Slide 37: Growth in outsourcing
Appendix 9 – growth in outsourcing Collective Resourcing helping businesses to solve familiar problems Resourcing constraints are common in the accounting and wealth services sector, particular in the current environment of low unemployment and increased client demand. Gold Coast-based business Coll
Slide 38: Important information
Important information This presentation is provided for information purposes only. The information in this Certain statements in this presentation may constitute forward-looking statements or presentation is in a summary form, does not purport to be complete and is not intended to statements about f
Slide 39: 2023 Full-Year Results Presentation
2023 Full-Year Results Presentation 39