Centuria Capital Group · ASX:CNI
Centuria Capital — Over Fifty Group — H1 2010 Earnings Presentation
20 slides from Centuria Capital's earnings presentation, Feb 22, 2010
Slide 1: 2009/10 Financial Half Year Results Presentation
2009/10 Financial Half Year Results Presentation February 2010 John McBain – Chief Executive Officer & Matthew Coy – Chief Financial Officer
Slide 2: Serving Generations of Australians
Serving Generations of Australians 2
Slide 3: Understanding Our Financial Report
UNDERSTANDING OUR FINANCIAL REPORT • In 2006, new accounting standards governing friendly society and insurance companies were introduced to Australia, these are referred to as “AIFRS” • AIFRS compels Over Fifty Group “OFG” to consolidate the accounts of the OFG managed Friendly Society benefit fund
Slide 4: Contents
Contents Key Achievements Page 5 Operating Results Page 6 Revenue from Major Divisions Page 7 Net Tangible Assets Per Share Page 8 Significant Reduction of Corporate Expenses Page 9 Capital Raising Page 10 Corporate Debt Page 11 Property Funds Management Page 12 Friendly Society Outlook Page 13 Grow
Slide 5: Key Achievements
Key Achievements Improved Underlying Profits - Underlying NPAT $3.188m (2008 $2.54m), increased by 25% - Underlying EPS for half year 5.2c (2008 4.2c), increased by 24% Improved Reported Profits - Reported NPAT $3.19m (2008 $9.96m loss) - EPS for half year 5.2c (2008 16.5c loss) Dividend Update - An
Slide 6: Operating Results (excl. Friendly Society Benefit Funds)
Operating Results (excl. Friendly Society Benefit Funds) Half Year ended 31 Half Year ended % Change Dec 2009 31 Dec 2008 Operating Earnings before interest and tax by major division $000’s $000’s Property Funds Management 2,140 (421) Reverse Mortgages 1,318 1,807 Friendly Society 4,551 5,527 Corp (
Slide 7: Revenue from Major Divisions
Revenue from Major Divisions 6 months to 31 6 months to 31 % change December 2009 December 2008 $000’s $000’s Friendly Society 7,238 7,982 (9.3%) Property Fund Management 5,271 3,171 66.2% Insurance Agency 604 579 4.3% Reverse Mortgages 8,121 10,650 (23.7%) Other 3,501 3,338 4.89% TOTAL 24,735 25,72
Slide 8: Net Tangible Assets Per Share (excl. Benefit Funds)
Net Tangible Assets Per Share (excl. Benefit Funds) $million Number of NTA per share Ordinary Shares NTA 30 June 2009 $25.867 60.299m $0.43 Movement during the half year ended 31 Dec 2009: - Profit for the period $3.192 - - Cashflow hedge reserve $0.546 - - Share based incentive reserve $0.106 - - N
Slide 9: Significant Reduction of Corporate Expenses
Significant Reduction of Corporate Expenses (major expense reduction for 6 months 31 December 2009, 31 December 2008 and 31 December 2007) 6 months to 31 6 months to 31 6 months to 31 % change December 2009 December 2008 December 2007 (2007- $000’s $000’s $000’s 2009) Staffing 3,430 3,707 4,664 (26.
Slide 10: Capital Raising
Capital Raising • Capital Raising raised $10.3m net of costs • Institutional Placement was over-subscribed and raised gross $6.5m at 72 cents/share • Share Placement Plan was well supported and raised gross $4.3m at 64 cents/share • Shareholder profile improved with 5 new institutions on the registe
Slide 11: Corporate Debt
Corporate Debt • Corporate debt reduced by $7.4m to $12.4m for the 6 month period to 31 December 2009. It further reduced to $8.5m as at 22 February 2010 • New terms have been agreed to refinance and extend the facility for a further 18 months to August 2011 • For the period 1 July 2009 to 22 Februa
Slide 12: Property Funds Management
Property Funds Management • Strong profit contribution for period, EBIT $2.14m (2008 $420k loss) • Property Funds Management is a core business with strong in house management and processes that is very scalable for future growth • Two wholly owned subsidiaries – Century Funds Management and Eclipse
Slide 13: Friendly Society Outlook
Friendly Society Outlook • Funds under Management as at 31 December 2009 were $787m (30 June 2009: $785m) • FUM retention has improved as redemptions have fallen sharply and inflows have improved with increased interest in Insurance Bonds since Super (pre-tax) contributions were halved • New product
Slide 14: Growth Strategy
Growth Strategy • Property FUM - acquisition opportunity is both organic and via industry consolidation - investor demand strong for organic growth investments • Friendly Society - competitive tax advantage for new education bond - consolidation opportunities in the market - growth in prepaid Funera
Slide 15: Appendix 1: Profit & Loss for half year ended 31 December 2009
Appendix 1: Profit & Loss for half year ended 31 December 2009 Statutory accounts Benefit funds Corporate accounts $m $m $m Interest and dividends 20.5 12.4 8.1 Management fees 11.5 - 11.5 Rental income 2.5 - 2.5 Other income 10.0 7.6 2.4 Share of profit in associate 0.3 - 0.3 Total revenue 44.8 20.
Slide 16: Appendix 2: Balance sheet as at 31 December 2009
Appendix 2: Balance sheet as at 31 December 2009 Statutory accounts Benefit funds Corporate accounts ($m) ($m) ($m) Assets: Cash and equivalents 27.1 14.9 12.2 Trade and other receivables 7.9 - 7.9 Income tax receivable 7.3 8.1 (0.8) Financial assets at fair value 539.6 539.6 - Other financial asset
Slide 17: Appendix 2: Balance sheet as at 31 December 2009 (cont)
Appendix 2: Balance sheet as at 31 December 2009 (cont) Statutory accounts Benefit funds Corporate accounts ($m) ($m) ($m) Liabilities: Trade and other payables 5.9 0.1 5.8 Borrowings 52.4 - 52.4 Borrowings - Reverse Mortgages (non recourse to OFG group) * 184.4 - 184.4 Policyholders funds 565.2 565
Slide 18: Appendix 3: Cash flow statement for half year ended 31 Dec 2009
Appendix 3: Cash flow statement for half year ended 31 Dec 2009 Statutory Benefit funds Corporate accounts accounts $m $m $m Cash flows from operating activities Interest received 5.1 4.4 0.7 Dividends received 8.5 8.5 - Management fees received 8.4 - 8.4 Rent and other income received 5.1 - 5.1 Red
Slide 19: Appendix 3: Cash flow statement (cont)
Appendix 3: Cash flow statement for year ended 31 Dec 2009 (cont) Statutory Benefit funds Corporate accounts accounts $m $m $m Cash flows from financing activities Proceeds (to)/from related entities (0.9) - (0.9) Proceeds from borrowings – Reverse mortgages * 4.3 - 4.3 Repayment of borrowings (22.5
Slide 20: Disclaimer
Disclaimer This document has been issued by Over Fifty Group Limited ABN 22 095 454 336 and contains general information about Over Fifty Group Limited and its related bodies corporate (Over Fifty Group) which is current as at 22 February 2010. The information in this document is in summary form and