Steadfast Group Limited · ASX:SDF
Steadfast — FY2013 Earnings Presentation
22 slides from Steadfast's earnings presentation, Aug 30, 2013
Slide 1: Full Year 2013 Results – 30 August 2013
Full Year 2013 Results – 30 August 2013 Presenters Robert Kelly – Managing Director & CEO Stephen Humphrys – Chief Financial Officer
Slide 2: Important Notice
Important Notice This presentation contains general information in summary form which is current as at 30 August 2013. It presents financial information on both a statutory basis (prepared in accordance with Australian accounting standards which comply with International Financial Reporting Standard
Slide 3: Agenda
Agenda Who we are IPO Highlights Transformation of Steadfast Steadfast Network Growth Financial Highlights Financial information Growth Strategy & Outlook 3
Slide 4: Who we are: largest general insurance broker network in Australia
Who we are LARGEST general insurance broker network in Australia 1 Founded in 1996 as a collective buying 430 offices across Australia and New Zealand and service group for independent brokers Network has grown from 43 to ~280 insurance broker businesses representing $4.0bn in GWP Equity interests i
Slide 5: Initial Public Offering (IPO)
Initial Public Offering (IPO) Successfully listed on the ASX on 2 August 2013 under code SDF at IPO price of $1.15 per share Raised $334 million to help fund IPO Acquisitions1, retire pre-IPO debt, cover IPO costs and increase balance sheet capacity for future acquisitions Completed 100% of th
Slide 6: Transformation of Steadfast
Transformation of Steadfast Consolidator of insurance broking and complementary businesses in addition to being a broker cluster group Steadfast Equity Steadfast Underwriting Ancillary Steadfast Network Premium Funding Brokers Agencies Businesses ~280 Steadfast 4 insurance broking Miramar (50%) 50%
Slide 7: Steadfast Network growth
Steadfast Network growth Over the past year, Steadfast Network GWP grew 10% exceeding the 6% annual growth rate of Australian commercial gross earned premiums. Notes: 1: Source: APRA. Commercial lines assumed to be commercial motor vehicles, fire and industrial special risks, marine and aviation, em
Slide 8: Financial highlights
Financial highlights FY13 pro-forma results slightly ahead of forecasts in IPO prospectus on both an IFRS and an Aggregate basis Pro-forma NPAT (IFRS view) of $28.1 million was 3.1% above IPO prospectus forecast of $27.2 million Marketing & Administration (M&A) Fees increased to $24.5 million,
Slide 9: Financial information
Financial information <$> Steadfast STRENGTH WHEN YOU NEED IT
Slide 10: Pro-forma results (Aggregate view)
Pro-forma results (Aggregate view) Click to Edit Title FY13 pro-forma results (Aggregate view) slightly ahead of IPO forecasts Profit & Loss ($ millions) FY13 FY12 % growth FY13F %variance Revenue ‒ A number of consolidated brokers Consolidated brokers 94.2 92.0 2.4% 94.8 -0.7% have a higher EBITA m
Slide 11: Pro-forma results (IFRS view)
Pro-forma results (IFRS view) Click to Edit Title FY13 pro-forma results (IFRS view) slightly ahead of IPO forecasts Profit & loss ($ millions) FY13 FY12 % growth FY13F %variance vs pro-forma forecasts Fees and commissions 94.6 90.4 4.7% 93.8 0.9% ‒ Revenue up 0.8% due to M&A Fees 24.5 21.7 13.3% 23
Slide 12: Pro-forma balance sheet
Pro-forma balance sheet Click to Edit Title Final IPO Price of $1.15 per share $ millions Current assets 190.1 Equity accounted investments 140.8 ‒ Conservative balance sheet (consolidated Property, plant and equipment 17.7 basis) Identifiable intangibles 71.7 $25 million cash, zero debt at holdin
Slide 13: Statutory results (IFRS view)
Statutory results (IFRS view) Click to Edit Title FY13 statutory loss (IFRS view) lower than IPO forecasts Profit & Loss (IFRS view, $ millions) FY13 FY12 % growth Profit & Loss (IFRS view) Revenue ‒ Statutory M&A Fees same as pro-forma M&A Fees 24.5 21.7 13% M&A Fees Other revenue 13.3 12.4 7% Tota
Slide 14: Growth strategy & outlook
Growth strategy & outlook <$> Steadfast STRENGTH WHEN YOU NEED IT
Slide 15: Growth strategy
Growth strategy Organic growth from our extensive distribution network which primarily caters to the commercial segment of the Australian and New Zealand general insurance market Delivering synergies from the acquisitions made to date and from the broader Steadfast Network (i.e. back office cost
Slide 16: Back office cost synergies
Back office cost synergies Synergy costs incorporated into FY14 forecasts however related benefits are not Back office strategy “Hubbing” strategy example − Steadfast is developing a common back − Successful individual business office platform − Owner nearing retirement Broker A − Younger principals
Slide 17: Continued growth by acquisitions
Continued growth by acquisitions Steadfast is the natural acquirer of further interests in Steadfast Network Brokers Acquisition growth criteria3 Disciplined due diligence process that takes into account both quantitative and qualitative criteria Acquisitions expected to be EPS accretive to shar
Slide 18: Cross-selling product and services
Cross-selling product and services 18
Slide 19: Outlook
Outlook Well placed to grow organically due to network benefits and focus on small to medium enterprise (SME) market Foundations in place to be a consolidator and acquirer of broker businesses and builder of our underwriting agencies Conservative balance sheet with capacity to fund future acqu
Slide 20: Steadfast
<$> Steadfast STRENGTH WHEN YOU NEED IT
Slide 21: Appendix
Appendix <$> Steadfast STRENGTH WHEN YOU NEED IT
Slide 22: Ordinary shares on issue post IPO
Ordinary Click to Edit shares Title on issue post IPO millions No. of ordinary shares1 Ordinary shares on issue on completion ‒ 37% owned by Steadfast 500.9 of the IPO brokers and associates, Made up of:2 employees, Directors and Re-weighting Shares 65.6 officers Executive Shares 10.9 ‒ 63% free flo