Cog Financial Services Limited · ASX:COG
Cog Financial Services — Morgans Investor Conference 2024
15 slides from Cog Financial Services's conference presentation, Oct 16, 2024
Slide 1: Morgan's Investor Conference
For personal use only Morgan’s Investor Conference 16 October 2024 Andrew Bennett Authorised by Andrew Bennett Chief Executive Officer On behalf of the Board
Slide 2: What is COG?
What is COG? FY 24 NPATA* For personal use only • Distribution & Product. 100% 24% • COG is primarily a distribution 80% business. • Distribution is a sales channel for 60% asset finance to SMEs, novated leasing and insurance. It’s low-risk, 40% 76% capital light and scalable. 20% • The Product buck
Slide 3: Aggregator of small businesses
Aggregator of small businesses Standardise systems and processes For personal use only • Core IT, email file servers • Cyber • Accounting • Business specific proprietary software (Connect and One Board) • Take the admin away and let them grow 3
Slide 4: Financial Overview
Financial Overview Revenue ($mill)* EBITDA to shareholders ($mill) NPATA ($mill)* For personal use only 600 45 35 40 30 500 35 25 400 30 25 20 300 20 15 200 15 10 10 100 5 5 0 0 0 FY18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY18 FY 19 FY 20 FY 21 FY 22 FY 23 FY
Slide 5: Tailwinds for COG's business
Tailwinds for COG’s business For personal use only 1. Population growth 2. Infrastructure and decarbonisation 5
Slide 6: Population Projection
Population Projection – 18 months later 29,800,000 29,500,000 For personal use only 29,063,400 29,000,000 28,500,000 28,000,000 27,500,000 Population at end of year 27,000,000 26,600,000 26,500,000 25,913,100 26,000,000 25,500,000 25,000,000 24,500,000 24,000,000 2021-22 2022-23 2023-24 2024-25 2025
Slide 7: The transition of electricity grid to renewables
The transition of electricity grid to renewables • Current emission reduction target is 43% For personal use only of 2005 emissions. • According to CSIRO 32% of Green House Gas come from electricity generation. • Just to transition the electricity grid will be an enormous undertaking. • This is the
Slide 8: The megatrend continues: the evolution of broking
The megatrend continues The evolution of broking For personal use only PRE-1990 NOW Banks had branch networks Banks are replacing branches with ATMs 100% of bank loans assets 27% of bank loans assets generated by branches generated by branches 73% Brokers 25% Brokers 2004 2024 According to East & Pa
Slide 9: Asset Finance Broker and Aggregator: Our business model
Asset Finance Broker and Aggregator Our business model For personal use only COG Operations Borrowers Brokers Bank/Finance Borrowers Companies Borrowers Brokers Aggregator Borrowers Bank/Finance Borrowers Brokers Companies Borrowers SME customers: Brokers own the Aggregators are the The majors – dri
Slide 10: Finance Broking & Aggregation
Finance Broking & Aggregation Net Assets Financed ($bn) For personal use only 10 9 8 7 6 5 4 3 2 1 0 FY18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 10
Slide 11: Novated Leasing
Novated Leasing • A tripartite agreement between employer, employee & financier. • Generally seen as an employee benefit, with the novated provider primarily securing the vehicle and arranging finance. Very similar to traditional finance broking. For personal use only • COG has made several acquisit
Slide 12: Novated Leasing
Novated Leasing Salary Novated EBITDA Entity Year Packaging Leases ($’m) Revenue and Net Profit Before Tax For personal use only FY23 394,200 73,400 90.2 160 14% McMillan 147 Shakespeare FY24 412,914 79,228 131.8 140 12% % Growth 5% 8% 46% 120 10% FY22 379,000 57,700 93.6 100 8% 81 $m 80 Smartgroup
Slide 13: Asset Management and Lending
Asset Management and Lending For personal use only NPATA to Shareholders $ millions 10.1 8.9 3.4 6.7 3.8 1.4 2.6 1.4 3.6 4.1 3.9 1.5 FY22 FY23 FY24 Asset Management & other Lending (Other) Lending (TL Commercial) 13
Slide 14: Asset Management
Asset Management For personal use only Capital light & scalable COG captures a small portion of the of the Asset Finance it originates and delivers it into a number of investment structures that it manages, with each structure being tailored to the specific SME receivable assets. These structures ar
Slide 15: Disclaimer
Disclaimer COG Financial services Limited ('COG’) has not considered the financial position or needs of the recipient in providing this presentation ('Presentation'). Persons needing advice should consult their stockbroker, bank manager, solicitor, attorney, accountant or other independent financial
COG Financial Services — Morgans Investor Conference 2024 on 6ix