Prime Financial Group Limited · ASX:PFG
Prime Financial — Investor Presentation (August 2020)
19 slides from Prime Financial's investor presentation, Aug 21, 2020
Slide 1: Full Year 2020 (FY20) Results Presentation
Prime Financial Group Ltd (ASX: PFG) Full Year 2020 (‘FY20’) Results Presentation 21 August 2020
Slide 2: Important Notice & Disclaimer
Important Notice & Disclaimer This investor presentation (Presentation) has been prepared by Prime Financial Group Limited Disclaimer (‘Prime’). No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and concl
Slide 3: Key Message
Key Message Continuing momentum and increased earnings during difficult period 3
Slide 4: FY20 Highlights
FY20 Highlights Earnings Growth for Organic revenue growth members/shareholders up 4% (contracts with • Underlying EBITDA* customers) Key Takeaways: up 35% • excluding the impact Fourth successive half Strong financial & of AASB 16 Leases, of organic revenue operating result Underlying EBITDA growth
Slide 5: Key Financial Metrics
Key Financial Metrics FY20* vs FY19 Prime’s key profitability measure is Underlying Prime – EBITDA for members/shareholders Prime – Group Members/Shareholders FY20 Financial Highlights* Underlying EBITDA for members/shareholders FY20 FY19 Change FY20 FY19 Change removes the impact of financing costs
Slide 6: Revenue
Revenue Contracts with Customers Analysis of Revenue Growth – FY20 vs FY19 How are we growing? Revenue Additional group services for FY20 FY19 FY20 vs FY19 $m $m existing clients Accounting, Business Advisory & Capital 12.0 10.4 15% New client growth through Wealth Management & SMSF 9.5 10.3 (8%) sp
Slide 7: EBITDA & NPAT
EBITDA & NPAT Attributable to Members/Shareholders Reconciliation $000 AUD FY20 FY19 Reported net profit after tax from operations (Group) 2,787 2,227 Add: Tax expense 724 350 Add: Interest expense/(income) 541 559 EBIT (Group) * 4,052 3,136 Add: Depreciation 188 256 Add: Amortisation 1,897 886 Repo
Slide 8: Balance Sheet, Cash Flow & Net Debt
Balance Sheet, Cash Flow & Net Debt Balance Sheet Key Takeaways At 30/6/20 At 30/6/19 Group $m $m • Refinanced debt facility for a 5.5 year period Cash 0.1 0.2 on favourable terms in December 2019 Total assets 58.9 55.5 • Operating cash inflow $3.7 million Borrowings (9.9) (9.6) • Investing cash out
Slide 9: Dividends
Dividends • Target dividend payout ratio of 40 – 60% of reported and maintainable Key dates for dividend earnings and DRP • FY20 Final dividend of 0.25 cents per share (‘cps’) (fully franked) vs Final dividend of 0.20 cps in FY19 (+25%) Record Date 5 October 2020 • FY20 payout ratio of 33% of report
Slide 10: COVID-19
COVID-19 1 Overview 2 Clients & Community 3 Team • Most difficult and challenging • Focus on advice & service • Health & safety of team the priority period in 22-year history • New client communication • 100% employment of team on full • Widespread, continuing programs deployed in rapid salary but f
Slide 11: Outlook for Members/Shareholders – FY21
Outlook for Members/Shareholders – FY21 Continued organic earnings Improved cash flow & growth dividends • Ongoing improvement in net cash flow • Underlying EBITDA growth to continue • Increasing dividends (subject to COVID-19 impact) Reduce debt Accelerate integration & client service • Debt to tak
Slide 12: Contact
Contact Simon Madder Managing Director/CEO Prime Financial Group Ltd T (03) 9827 6999 E simonm@primefinancial.com.au W www.primefinancial.com.au Rory McLaughlin Group Financial Controller Prime Financial Group Ltd T (03) 9827 6999 E rorym@primefinancial.com.au W www.primefinancial.com.au Ben Priestl
Slide 13: Appendices
Appendices
Slide 14: Who We Are
Who We Are Service Operations Integrated Accounting & Business Advisory, 80+ team members primarily across Wealth Management, SMSF and Capital Melbourne, Sydney and Brisbane Services with over $1 billion of client funds under management (FUM) Continued focus on growing three core hubs in Melbourne,
Slide 15: Capital Structure & Comparisons
Capital Structure & Comparisons Top 20 Shareholders Prime’s Capital Structure Shares on issue (includes treasury shares) at 30 June 2020 195.3m 57% Market Capitalisation at 7.1 cents at closing on 18 August 2020* $13.9m Net debt at 30 June 2020 $9.8m Investment Information Prime’s Comparable Compani
Slide 16: Segment Services & Revenue
Wealth Management & Protection plus SMSF – 44% Segment Services & Revenue • • Financial Planning & Strategic Advice Retirement Planning • Superannuation Advice • Investment Advice • Life Insurance Prime operates a direct client advice model under • SMSF Establishment, Advice, the Prime brand and a J
Slide 17: Strategic Plan
Strategic Plan AREAS & OBJECTIVES FY21 KEY PRIORITIES Customer Organic Growth Provide clients with advice and services • Integrate Prime’s client base - One Connected firm and ‘One Connected’ professional service offering services firm through One Connected firm • Deliver additional business and cor
Slide 18: Core Hub Strategy
Core Hub Strategy Melbourne, Sydney & Brisbane Core Hub – Brisbane Prime is ‘One Connected’ professional • Accounting & Business Advisory • Wealth Management & Protection services firm, operating across four key • SMSF areas in Accounting & Business • Capital & Corporate Advisory Advisory, Wealth Ma
Slide 19: Experienced Board
Simon Madder Experienced Chief Executive Officer & Managing Director • Co-founder, Managing Director & CEO of Prime Financial Board Group Ltd (Prime) since 1998 • 22 years’ experience in Wealth Management & Accounting Services across Operations, Strategy & Acquisitions Matt Murphy • Share Ownership:
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