Slide 1: Investor Presentation – FY18 Results
For personal use only INVESTOR PRESENTATION – FY18 RESULTS 12 MONTHS ENDING 30 JUNE 2018 28 AUGUST 2018
Slide 2: FY18 Highlights
FY18 HIGHLIGHTS Page 2 For personal use only • Solid progress in implementing growth strategy with strong momentum going into FY19 Revenue +39% $160.5m • FY18 EBITDA* up 21% to $14.4m, in line with FY18 guidance of $13.7- $15.0m (with no new acquisitions made post guidance given in Feb 18) EBITDA* +
Slide 3: Summary Group Financial Results
SUMMARY GROUP FINANCIAL RESULTS Page 3 For personal use only Year ended 30 June ($m) 2018 1 2017 1,2 change Commentary Revenue was up 39% to $160.5m Revenue 160.5 115.5 +39% EBITDA attributable to shareholders was up 21% to $14.4m EBITDA 21.4 18.1 +18% driven by: Interest -3.5 -1.9 +84% • full year
Slide 4: FY18 Performance and FY19 Guidance
FY18 PERFORMANCE AND FY19 GUIDANCE Page 4 For personal use only EBITDA Commentary FY18 FY18 FY19 (after minority interests) Guidance Actual Forecast ($m) ˃ Commercial Equipment Leasing forecast is based on lease origination of $70m with 44% funding via Sale of Receivable and the remaining 56% funded
Slide 5: Strategic Objective
STRATEGIC OBJECTIVE Page 5 For personal use only Building a leading position in the Australian business equipment and asset finance industry Grow origination of company owned products and shareholder returns Value Expand in-house leasing Leveraging company’s products capability and broker distributi
Slide 6: Business Performance
For personal use only BUSINESS PERFORMANCE
Slide 7: Business Activities
Page 7 BUSINESS ACTIVITIES For personal use only PRODUCT AGGREGATION SERVICES MANUFACTURE FINANCE BROKER NETWORK SME Auto & Equipment Finance Planned new products Operating Independent Equity Owned Auto Equipment Network Members Brokers Leases loans loans (Rentals)
Slide 8: 1. Finance Broking & Aggregation
1. FINANCE BROKING & AGGREGATION Page 8 Financial Performance For personal use only Year ended 30 June ($m) 2018 2017 1 change Commentary Revenue growth of $38.4m (up 38%) reflects: Revenue 139.4 101.0 38% • Increased NAF settlements • full 12 months contribution from FY17 acquisitions , including E
Slide 9: 1. Finance Broking & Aggregation – Commentary
1. FINANCE BROKING & AGGREGATION Page 9 Commentary For personal use only Group NAF in $m Australia’s largest equipment finance broker aggregation group 3,600 3,353 3,400 COG provides aggregation services to: 3,128 • independent network member finance brokers 3,200 • COG equity owned finance brokers
Slide 10: Finance Broking & Aggregation – FY18 Acquisitions
FINANCE BROKING & AGGREGATION Page 10 FY18 Acquisitions For personal use only Completed July 17 Acquisition of 50% of DLV (QLD) an equipment finance broker based in Rockhampton, Qld, through 50% owned subsidiary QPF for $1.6m (50% cash, 50% COG shares) Jan 18 Acquisition of 50% of Vehicle Equipment
Slide 11: 2. Commercial Equipment Leasing
2. COMMERCIAL EQUIPMENT LEASING Page 11 Financial Performance For personal use only Year ended 30 June 2018 2017 change Commentary $m Revenue 13.8 10.7 +29% • Business performing well with new leases written in FY18 of $58.7m (up 38% on pcp) EBITDA 7.7 7.2 +7% • Revenue was up 29% to $13.8m reflecti
Slide 12: Commercial Equipment Leasing – Origination Growth
COMMERCIAL EQUIPMENT LEASING Page 12 Origination Growth For personal use only Lease origination growth Growing lease referrals from COG finance broker network Operating Leases Written (Original Equipment Cost - $m) 70.0 70 COG broker 58.7 OEC written referrals 60 50 FY15 $22.5m $0 42.5 40 33.4 $33.4
Slide 13: Commercial Equipment Leasing – Leasing Book Features
COMMERCIAL EQUIPMENT LEASING Page 13 Leasing Book Features For personal use only Key statistics OEC of lease book $124m PV of lease book $89m Number of leases 2,606 Average deal size $48k Average tenure 48mth Loss rate1 2% Inertia rate 21% PV of self funded leases $9.8m 1. Loss rate is calculated on
Slide 14: 3. Other
Page 14 3. OTHER For personal use only Year ended 30 June $m 2018 2017 change Commentary Revenue 7.3 3.8 92% ˃ This segment includes the Hal IT business, COG EBITDA -2.3 -3.8 39% parent entity (head office expenses), the 33% interest in Riverwise (Leading Edge Group) and Interest -0.3 1.0 -130% Simp
Slide 15: Balance Sheet
BALANCE SHEET Page 15 For personal use only As At 30 June Commentary 2018 2017 ($M) Cash and cash equivalents 36.2 39.8 Trade and other receivables 15.7 12.9 ˃ ”Financial assets – lease receivables” relates to lease Financial assets – lease receivables 21.8 11.3 Other assets 1.5 1.2 receivables in C
Slide 16: Cash Flow
CASH FLOW Page 16 For personal use only For the year ended 30 June 2018 2017 Commentary ($m) Receipts from customers 160.5 88.6 Payments to suppliers and employees (154.1) (81.1) • The FY17 comparative period shows 4 Dividends received - 1.5 months cashflows under the Interest received 10.8 2.1 Fina
Slide 17: Capital Management
Page 17 CAPITAL MANAGEMENT For personal use only Funds available for investments at 30 June 2018 = $28.9million Funds available for investment includes $9.8 million of self funded leases (saleable to financiers) and excludes working capital of $10m, restricted cash of $2.3m and loss reserve of $4.0m
Slide 18: Strategy + FY19 Priorities
For personal use only STRATEGY + FY19 PRIORITIES
Slide 19: Strategic Focus
STRATEGIC FOCUS Page 19 For personal use only 1. PURSUING FIRST MOVER OPPORTUNITY IN ASSET 2. DEVELOPING A NATIONAL ASSET FINANCE FINANCE BROKING + BROKER AGGREGATION DISTRIBUTION BUSINESS SERVICES Diversified by geography, asset type, borrower type, Since commencing its Finance Broking + Aggregatio
Slide 20: Regulatory Environment
REGULATORY ENVIRONMENT Page 20 For personal use only Monitoring the Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry for potential impact on SME asset finance broking industry Note that Industry Body – Commercial & Asset Finance Brokers Association of A
Slide 21: FY19 Priorities
FY19 PRIORITIES Page 21 For personal use only 1. Continued growth in Finance Broking + Aggregation Services - Targeted acquisitions • Well advanced with target acquisitions expected to be completed in H1 FY19 • Available surplus cash reserves of $28.9m as at 30 June 18 • Targeting 50%+ interest - wi
Slide 22: Summary
SUMMARY Page 22 For personal use only ✓ Pleasing year with good momentum and positive progress ✓ FY18 EBITDA after minority interests up 21% to $14.4m, in line with FY18 guidance of $13.7- $15.0m (with no new acquisitions made post guidance given in Feb 18) ✓ Performance drivers • full year contribu
Slide 23: Disclaimer
DISCLAIMER Page 23 For personal use only Consolidated Operations Group Limited ("COG”) has not COG cautions shareholders and prospective shareholders not to considered the financial position or needs of the recipient in place undue reliance on these forward-looking statements, providing this present
Slide 24: Appendices
For personal use only APPENDICES
Slide 25: Acquisition History
Page 25 ACQUISITION HISTORY For personal use only Interest Date Company Activity Acquirer Price Consideration acquired Dec 15 Platform Consolidated Aggregation platform + ownership of COG 60%* $22.9m 76% cash/ 24% equity Group (PCG) finance brokers Oct 16 Consolidated Finance Largest independent spe
Slide 26: Segment Performance
SEGMENT PERFORMANCE Page 26 For personal use only Year ended 30 June Finance Commercial ($m) Broking & Equipment Other Total Aggregation Leasing Revenue 139.4 13.8 7.3 160.5 EBITDA 16.0 7.7 (2.3) 21.4 Interest 0.1 (3.3) (0.3) (3.5) Depreciation (0.4) (0.7) - (1.1) Amortisation (4.4) (0.1) - (4.5) Sh
Slide 27: Statutory Income Statement
STATUTORY INCOME STATEMENT Page 27 For personal use only For the year ended June change ($m) 2018 2017 ($m) Commentary ˃FY17 comparatives are based on investment accounting Revenue 161.0 82.0 +79.0 for the period 1 July 2016 to 31 October 2016 and Share of profits of associates 0.1 (2.8) +2.9 theref
Slide 28: CFG Membership Group – Growth and New Members Volumes
CFG MEMBERSHIP GROUP Page 28 For personal use only Growth and New Members - Volumes $Millions 2,600 2,400 0 308 2,200 94 2,000 179 -55 1,800 178 -55 2,441 281 1,600 2,039 1,400 240 1,736 1,200 1,270 1,000 June 2015 FY Organic New Departed June 2016 FY Organic New Departed June 2017 FY Organic New De
Slide 29: CFG Membership Group – Number of New Members
Page 29 CFG MEMBERSHIP GROUP For personal use only Number of New Members 140 120 0 16 16 -2 100 -3 25 80 12 0 60 126 13 -1 110 -2 96 16 40 74 62 50 20 36 0 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 • Members have increased by 250% since 2013 • Members have increased by 15% in 2018 • Industry