Cog Financial Services Limited · ASX:COG
Cog Financial Services — Shareholder Meeting (November 2021)
20 slides from Cog Financial Services's shareholder meeting presentation, Nov 29, 2021
Slide 1: 2021 AGM Group CEO Presentation
29 November 2021 The Manager – Listings Australian Securities Exchange Limited For personal use only Exchange Centre 20 Bridge Street Sydney NSW 2000 2021 AGM Group CEO Presentation COG Financial Services Limited (COG) attaches the following documents in relation to the FY2021 Annual General Meeting
Slide 2: CEO Presentation Annual General Meeting
For personal use only CEO Presentation Annual General Meeting COG Financial Services Limited Group CEO – Andrew Bennett 29 November 2021
Slide 3: Overview
For personal use only Overview 01
Slide 4: COG Overview
COG Overview Page 3 For personal use only COG is an ASX listed provider of asset finance broking, aggregation services and near-prime commercial & consumer lending, and funds management Finance & Insurance Broking and Lending Asset Finance Aggregation ▪ Australia’s largest equipment finance broking
Slide 5: The evolution of broking – the megatrend continues
The evolution of broking – the megatrend continues Page 4 For personal use only PRE-1990 NOW Banks are replacing Banks had branch networks. branches with ATMs. 100% of bank loans assets 30% of bank loans assets generated by branches. generated by branches. 70% Brokers 25% Brokers 2004 1 2020 Accordi
Slide 6: Asset Finance Broker and Aggregator
Asset Finance Broker and Aggregator Page 5 For personal use only The structure of the broking segment COG Operations BORROWERS BROKERS BANK/FINANCE BORROWERS C O M PA N I E S BORROWERS BROKERS A G G R E G AT O R BORROWERS BANK/FINANCE BORROWERS BROKERS C O M PA N I E S BORROWERS SME customers: trans
Slide 7: Brokers are small businesses
Brokers are small businesses Page 6 For personal use only Lots of small businesses, COG buys >50%. We add our own finance Same model as the Big each lacking scale and We give them access to product to increase Players in insurance efficient back office. systems and back office funding options availa
Slide 8: COG is Australia's Biggest Asset Finance Broking Group
COG is Australia’s Biggest Asset Finance Broking Group and delivers its own product via Westlawn Page 7 For personal use only Australia’s biggest asset finance broker and aggregator and trusted leader in SME and auto finance Westlawn Finance Ltd (75% owned)1 Banks, Non-Banks, Debentures and Managed
Slide 9: Track record of acquiring and integrating brokers and aggregators
COG has a successful track record of acquiring and integrating brokers and aggregators Page 8 For personal use only Platform Investment entity Consolidated COG (then known Group Acquisition of Consolidated Acquisition of as Armidale Acquisition of 60% Consolidated accounting Westlawn – Investment of
Slide 10: COG Group Structure
COG Group Structure Page 9 For personal use only COG has acquired full ownership or majority stakes in a number of asset finance broking businesses over the last 6 years built around high turnover geographic clusters Group structure diagram including key subsidiaries COG1 100%3 100% 55% 57% 100% 75%
Slide 11: Asset Finance Broking Overview
For personal use only 02 Asset Finance Broking Overview
Slide 12: COG Exposed to the coming Infrastructure COVID Stimulus
COG Exposed to the coming Infrastructure COVID Stimulus Page 11 For personal use only Historic Infrastructure Spending Australia Nearly $225 billion has been allocated for general government sector infrastructure funding over the four years – a 26 per cent increase over last year’s Budgets 24,000 22
Slide 13: Broker Services and Group NAF
Broker Services and Group NAF Page 12 For personal use only Australia’s largest asset finance broking and aggregation group Aggregation & Broker Brands COG PROVIDES AGGREGATION COG OFFERS FINANCE BROKERS SERVICES TO: 100% ▪ Independent network member finance brokers ▪ Access to wider panel of financ
Slide 14: National Asset Finance Broking Network - Broker Footprint
National Asset Finance Broking Network - Broker Footprint Page 13 For personal use only Growth in Aggregation Brokers NT 2,791 3,064 2,454 2 equity 1,463 1,691 QLD 1,312 7 aggregation QLD brokers NT 80 equity brokers 32 equity brokers 2016 2017 2018 2019 2020 2021 8 equity 992 aggregation brokers 62
Slide 15: A Strong Proprietary Platform
A Strong Proprietary Platform Page 14 For personal use only COG has developed its own proprietary software system to assist asset finance brokers: COG’s proprietary system has been built with the Manage their clients latest technology ensuring its foundational build was developed to allow for future
Slide 16: Lending
For personal use only Lending 03
Slide 17: Outlook: Lending & funds management
Outlook: Lending & funds management Page 16 For personal use only COG lending is undertaken via its 75% owned finance company – Westlawn Finance Ltd. Westlawn has operated a retail debenture program since 1960’s but it requires capital to support and in 2021 Westlawn established a registered retail
Slide 18: Outlook: Lending (continued)
Outlook: Lending (continued) Page 17 For personal use only CAPITAL RISKS ORIGINATIONS ROE LEVELS Trend lower as funding To increase as the Sufficient to significantly To increase, off lower model transitions to economy recovers from grow originations because relative capital Managed Investment COVID
Slide 19: FY 2022
For personal use only FY 2022 04
Slide 20: FY 2022
FY 2022 Page 19 For personal use only COG purchased an additional 24% interest in Westlawn Finance Limited (Westlawn) and the remaining 30% of Platform Consolidated Group Pty Limited (PCG) on 1 November 2021 Q1 FY22 trading result significantly up on prior comparative period Acquisitions Overview Fu
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