Slide 1: Results Presentation for the Half-Year Ended 31 December 2019
For personal use only CountPlus Limited (ASX: CUP) Results Presentation For the Half-Year Ended 31 December 2019 PRESENTED BY Matthew Rowe, Chief Executive Officer Laurent Toussaint, Chief Financial Officer 19 February 2020
Slide 2: Disclaimer
Disclaimer For personal use only This document is a presentation of general Forward looking statements Pro-forma financial information background information about the activities of CountPlus Limited (“CountPlus”) current at the This document contains certain forward-looking statements and CountPlus
Slide 3: Key Performance
Key Performance Our approach will continue to focus on making a decent profit, decently For personal use only Listed on the ASX since 2010, we are a network of successful professional accounting and financial advice firms, aligned through shared values, mutual success and our sense of community. Cou
Slide 4: Financial track record
Financial track record Improved earnings growth; strengthened cash position For personal use only Financial Results summary 1H20 1H19 Movement – 1H20 vs 1H19 $’000 $’000 $’000 % Revenue from operating activities 38,852 35,997 2,855 8 Adjusted Earnings before interest, tax and amortisation (“EBITA”)
Slide 5: Profit Reconciliation
Profit Reconciliation Adjusted to statutory profit reconciliation For personal use only NPAT analysis – Adjusted 1H20 1H19 Movement $’000 $’000 % change Net profit after tax – Reported 13,459 2,630 Less: Gain on bargain purchase (12,489) 0 Add: One-off M&A transaction costs 215 0 Add: Transition Cos
Slide 6: Financial services segment performance
Financial services segment performance Turnaround of Count Financial For personal use only Key points Financial Services Segment – Count Financial and TFS 1H20 • Count Financial has begun the transition to a user $’000 pays model from 1 December 2019. Under the old model, costs for software, selecte
Slide 7: Update on Count Financial
Update on Count Financial Count Count Financial challenges remain transitioned For personal use only successfully • Total Financial Solutions (TFS) has 78 advisers and a decision was made to cease operations of TFS post the acquisition of Count Financial. 45 advisers and 21 adviser firms came across
Slide 8: Update on Count Financial – continued
Update on Count Financial – continued Production of advice documents is Count Financial challenges remain up by 100% For personal use only with 26% fewer advisers • From 1 October 2019 to 31 December • Funds under administration (FUA) of Count Financial have increased from 2019, Count Financial advi
Slide 9: Future Count Financial model
Future Count Financial model Moving Count Financial to the new world of advice For personal use only New world of advice There are challenges facing the supply side of financial advice in Australia • Significant challenges come into play in the 2021 financial year as we move away from grandfathered
Slide 10: Partner Firms – 100% aggregation – Core Accounting Firms
Partner Firms – 100% aggregation – Core Accounting Firms CountPlus adds scale For personal use only Pro forma P&L analysis 1H20 1H19 Movement Key points to note: • The scale of CountPlus has increased due to $’000 $’000 % acquisitions. The group has grown from 15 Total Revenue from operating activit
Slide 11: Revenue, Lock up and other metrics
Revenue, Lock up and other metrics Disciplined execution of key operational metrics drives performance For personal use only Financial metrics 1H20 1H19 Lock up days – 31 December 2017 to 31 December 2019 $’000 $’000 Revenue per full time employee (Firm level) 177 160* Average firm EBITA margin (%)
Slide 12: Cash flow waterfall
Cash flow waterfall Strong cash flow funds growth investments and dividends For personal use only Operating cash flows reconciliation 1H20 1H19 Movement $’000 $’000 % Cash flow from operating activities – Reported 1,687 3,694 Add: Transition Costs – Count Financial 2,102 0 Add: AASB16 interest 348 0
Slide 13: Dividends
Dividends For personal use only • 1H20 interim dividend of 1.25 cents per share, fully franked (25% increase from same period last year). • Target dividend pay-out ratio of 40% to 70% of maintainable net profit after tax, attributable to CountPlus shareholders. • Pay dividends out of operating cash
Slide 14: Conclusion
Conclusion For personal use only • An increase in the dividend payable by CountPlus to our shareholders to 1.25 cents per share, an increase of 25% over the same period last year • Strong balance sheet, cash available to fund growth aspirations • Full period earnings from recently acquired associate
Slide 15: The CountPlus 'Owner, Driver – Partner' model
The CountPlus ‘Owner, Driver – Partner’ model For personal use only CountPlus future model Sweet Spot CountPlus collaborates with leading Intellectual Capital Value Added Accounting and Advice firms for the long-term success of our clients, people and shareholders. OD-P Associate Ownership Firm Coun
Slide 16: Corporate Index – CountPlus Appendices
For personal use only Corporate Index – CountPlus Appendices Results Presentation – 1H20
Slide 17: CountPlus wholly owned subsidiaries, partially owned subsidiaries and associates
Appendix 1 CountPlus wholly owned subsidiaries, partially owned subsidiaries and associates For personal use only No. Partner Firm Shareholding No. Partner Firm Shareholding Wholly-owned subsidiaries % Partly-owned subsidiaries % 1. Addvantage Financial Freedom Pty Ltd 100.00 10. Count Financial Lim
Slide 18: Abridged Statement of Financial Position
Appendix 2 Abridged Statement of Financial Position For personal use only Abridged Statement of Financial Position ($’000) 1H20 FY19 1H19 Movement (1H20 vs FY19) Cash 20,140 10,258 11,423 9,882 Interest bearing loans and borrowings (5,390) (1,755) (1,186) (3,635) Investments in associates 17,337 13,
Slide 19: Salient dates
Appendix 3 Salient dates For personal use only Key Dates 1H20 Interim Dividend Paid April 2020 FY20 Year End Results August 2020 Annual General Meeting November 2020 Results Presentation – 1H20 19
Slide 20: Thank You
For personal use only Thank You Results Presentation – 1H20 20