Centuria Capital Group · ASX:CNI
Centuria Capital — Over Fifty Group — Investor Presentation (December 2009)
24 slides from Centuria Capital's investor presentation, December 2009
Slide 1: Capital Raising Presentation
Capital Raising Presentation December 2009 John McBain – Chief Executive Officer & Matthew Coy – Chief Financial Officer
Slide 2: Serving Generations of Australians
Serving Generations of Australians 2
Slide 3: Offer Summary
Offer Summary • Undertaking an Institutional Placement (‘Placement’) and Share Purchase Plan (‘SPP’) to raise up to $10.5m • Proceeds being used to reduce debt ($7.0m), provide working capital ($3.0m) and pay the costs of the offer ($0.5m) Capital Raising • Following the Capital Raising, OFG will be
Slide 4: Overview of the Business, The Offer, Appendices
Overview of the Business The Offer Appendices 4
Slide 5: OFG – Corporate Snapshot
OFG – Corporate Snapshot Key statistics Share price graph – 12 months Shares on issue 60.5m $1.20 Share price $0.90 (8/12/09) $1.00 $0.80 Market cap $54.5m $0.60 Corporate debt $16.9m (current) $0.40 Revenue FY09 $46.1m $0.20 Underlying NPAT FY09 $7.2m $0.00 05-Nov-09 05-Jan-09 05-Jun-09 05-Jul-09 0
Slide 6: Brief history of OFG
Brief history of OFG 1980 • Over Fifty Friendly Society established 2001 • Demutualised 2002 • Listed on ASX Diversified business and established 2002 – 2006 - Reverse mortgages - Residential construction lending - Financial planning - Insurance - Mortgage origination 2006 • Acquired Century Funds M
Slide 7: FY09 Achievements
FY09 Achievements OFG Focus on core businesses of Property Funds Management and Friendly Society Reduce staff numbers from c100 to c50 Clean up of balance sheet – reduce corporate debt from $24m (FY08) to $16.9m currently Reduced operating expenses from $18.8m (FY08) to $13.6m (FY09) Renewed corpora
Slide 8: Core business – Property Funds Management
Core business – Property Funds Management 1 Century • Established in 1999 • Direct property funds manager specialising in: - Commercial Office - Industrial (high tech and bulky goods) • Predominantly Sydney and Melbourne exposure • No development risk • 26 unlisted trusts – c1,800 investors (financi
Slide 9: Core Business – Friendly Society
Core Business – Friendly Society 2 • Established in 1980 • Bonds include: - Australian share bond - Balanced Bond - Capital Guaranteed Bond - Growth Bond - High Growth Bond - Income Accumulation Bond • 110,000 bond and general insurance policy holders • FUM of $781m (30 June 2009) • Strong recurring
Slide 10: FUM from Core Businesses
FUM from Core Businesses • FUM has decreased over the past few years – combination of declining values and bond redemptions • Property values are starting to improve and Property FUM is expected to increase going forward • Management have successfully slowed bond redemptions and growth is expected f
Slide 11: Strategic Initiatives and outlook
Century Trust No 13 – Adelaide (settled Dec 09) Strategic Initiatives and outlook Property Funds Management Over Fifty Friendly Society • One of few direct property managers in • Retaining policyholders by offering more relevant acquisition mode – fewer competitors and / or tax effective products •
Slide 12: Other operations
Other operations 3 • White labeled general, vehicle and travel insurance with over 30 000 Over Fifty policyholders – good expansion capacity available (eg life insurance) Group • Plan to leverage wide range of OFG products to this client base for the 1st Insurance time also potential for Guardian F/
Slide 13: Overview of the Business, The Offer, Appendices
Overview of the Business The Offer Appendices 13
Slide 14: FY10 Guidance and Financial Impact of the Capital Raising
FY10 Guidance and Financial Impact of the Capital Raising Impact on Gearing Strengthened Balance Sheet provides substantial financial flexibility going forward Reduce gearing (core debt / core assets (including intangibles)) from 15% to 9% Improve annualised interest coverage {on Corporate debt only
Slide 15: Performance & FY10 Guidance
Performance & FY10 Guidance Profit & Loss - $m FY08A FY09A Key Points on historical performance Revenue 51.2 46.1 Revenue FY09 has no property EBITDA 14.6 11.1 transactional revenue. EBIT 14.2 10.5 Net Interest Expense 1.5 1.7 Pre-tax Profit 13.4 8.8 Tax Expense 5.4 1.7 NPAT - Underlying 8.0 7.2 Seg
Slide 16: Pro Forma Balance Sheet
Pro Forma Balance Sheet 30 June 2009 Balance Sheet – $m Over Fifty Adjustments Pro forma* Cash, Cash equivalents and debtors 13.7 3.0 16.7 Other Current Assets 1.5 1.5 Non Current Assets Reverse Mort 215.0 215.0 Book *** Non Current Assets (tangible) 83.4 83.4 Non Current Assets (intangible) 52.6 52
Slide 17: Summary
Summary Management have taken the steps required to reposition OFG for growth... Strong committed management team with large holding in OFG Strong diversified recurring cash flow underpinned by FUM Achieved a substantial reduction in operating costs Reengaged with policy holders and established a st
Slide 18: Placement
Placement Placement offer $6.5m institutional placement size – 15% of issued share capital Fixed offer price of $0.72 per share Placement offer price − 20.0% discount to closing price on 8 December 2009 − 19.8% discount to 5-day VWAP Trading halt – 9 – 10 December 2009 Books open 10am on 9 December
Slide 19: Share Purchase Plan
Share Purchase Plan Eligible Australian shareholders registered at the record date of 11 Shareholders December 2009 Up to $4m SPP Amount Scaling to apply in the event of oversubscriptions SPP Offer Price is the lower of: SPP Offer Price − the placement price, being $0.72 per share; or − 10% discount
Slide 20: Timetable
Timetable Key dates – Placement Trading Halt 9 – 10 December 2009 Institutional bookbuild opens 9 December 2009 10:30am (AEST) Institutional bookbuild closes 10 December 2009 Noon (AEST) Placement details announced and shares 11 December 2009 recommence trading Institutional settlement 18 December 2
Slide 21: Overview of the Business, The Offer, Appendices
Overview of the Business The Offer Appendices 21
Slide 22: Reduction of Operating Expenses
Appendix 1 Reduction of Operating Expenses (major expense reduction for 12 months 30 June 2009 v 30 June 2008) 12 months to 30 12 months to 30 % Change June 2009 June 2008 $000 $000 Staffing 6,888 8,862 (22.3%) Consulting and Professional (1) 2,579 4,259 (39.4%) Corporate Operating Expenses 923 979
Slide 23: Key Risks
Appendix 2 General risks for OFG Key Risks • Changes to government policy – OFG, through its different business divisions, is subject to a wide range of legislative rules and regulations. These rules and regulations can change and it is possible that changes in government policy could adversely impa
Slide 24: Disclaimer
Disclaimer • This presentation has been prepared by Over Fifty Group Limited (OFG) and is intended to provide preliminary background corporate, financial and other information to enable investors to review the recent activities of OFG and to consider participating in an offer of ordinary shares in O
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