Sequoia Financial Group Ltd. · ASX:SEQ
Sequoia Financial — Investor Presentation (February 2021)
12 slides from Sequoia Financial's investor presentation, Feb 18, 2021
Slide 1: Sequoia Financial Group Limited Half Year Results Presentation 2021
Sequoia Financial Group Limited ASX Code: SEQ Half Year Results Presentation 2021 (1H21) February 2021
Slide 2: Contents
Sequoia Business Model 3 1H21 Results 4 1H21 Highlights 5 Contents FY21 Forecast Upgrade 6 Key Performance Indicators 7 Divisional Results 8 Financial Advice Outlook 9 Short term objectives 10 Long term objectives 11 Contact 12
Slide 3: The Sequoia Business Model
The Sequoia Business Model Professional Services Division Equity Markets Division SMSF administration services, Morrison Securities, Legal Document Establishments, Equity Research, Docs Centre, Panther Corp, Bourse Data, SMSF Engine, Sequoia Super Sequoia Specialist Investments Wealth Division Direc
Slide 4: 1H21 Results
1H21 Results 1H21 Results were strong, with EBITDA (Operating Profit) ahead of 1H20 and on track to exceed FY21 budget of $6M, as greater synergies are obtained from multiple and aligned service offering to the IFA marketplace. Actual 1H21 Budget 1H21 2H20 1H20 Revenue $52.4M $48.0M $43.4M $41.1M EB
Slide 5: 1H21 Highlights
1H21 Highlights Financial Operational •Beat budget on all key financial •Scale allowed us to maintain pricing indicators but increase margin •Achieved consolidated Revenue •Acquired more scale in business units Growth of 27.6% on 1H20 with that are sub scale direct-to-consumer outperformance in the
Slide 6: FY21 Forecast Upgrade
FY21 Forecast Upgrade FY19 FY20 FY21 Budget FY21 Forecast Upgrade Revenue $83.0M $84.5M $100M $110M EBITDA (Operating $1.1M $4.8M $6M $7M Profit) NPAT ($1.0M) $1.9M $2.8M $2.9M Dividend Ratio Nil 25% of NPAT 30% of NPAT 30% of NPAT Shareholders $31.2M $33.2M >$35M >$35M Equity EBITDA on equity 3.5%
Slide 7: Key Performance Indicators
Key Performance Indicators Number of Licensed Advisers Morrison month average contracts 500 30,000 25,000 400 20,000 300 15,000 200 10,000 5,000 100 - 0 1H19 2H19 1H20 2H20 1H21 1H19 2H19 1H20 2H20 1H21 Actual Break even EBITDA $M Return on Equity (EBITDA / Equity) 4.5 25% 4.0 3.5 20% 3.0 2.5 15% 2.
Slide 8: Divisional results
Divisional results Wealth Equity Markets 30,000,000 3,000,000 30,000,000 3,000,000 25,000,000 2,500,000 25,000,000 2,500,000 20,000,000 2,000,000 20,000,000 2,000,000 15,000,000 1,500,000 15,000,000 1,500,000 10,000,000 1,000,000 10,000,000 1,000,000 5,000,000 500,000 5,000,000 500,000 - - - - 1H20
Slide 9: Financial Advice Outlook
Financial Advice Outlook There is increased demand for personal advice in the IFA market following global equity market falls in March 2020 Self directed investors such as SMSF Trustees have increased take up of an investment adviser to improve some inefficient investment strategies Banks and Produc
Slide 10: Short Term Objectives
Short Term Objectives Maintain current revenue growth trajectory of at least 25% Organically reach 450 advisers under a Sequoia AFSL by June 2021 Continue to seek out acquisitions in the advice market to scale towards the target market share of 10% of the IFA licensee marketplace Continue to grow ma
Slide 11: Long term objectives
Long term objectives Lead the market in the provision of services to advisers, accountants and licensees Increase group revenue towards $400M by year ending 30 June 2025 Build the operating profit return on group revenue towards 8% by year ending 30 June 2025 Increase the number of advisers we act a
Slide 12: Contacts
Contacts Garry Crole / CEO garrycrole@sequoia.com.au Lizzie Tan / CFO lizzietan@sequoia.com.au William Slack / Head of Equity Markets williamslack@sequoia.com.au Matthew Wilson / Head of Direct matthewwilson@sequoia.com.au Brent Jones / Head of Professional Services brent.jones@interprac.com.au sequ
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