Prime Financial Group Limited · ASX:PFG
Prime Financial — Shareholder Meeting (November 2014)
28 slides from Prime Financial's shareholder meeting presentation, Nov 24, 2014
Slide 1: 2014 Annual General Meeting ASX announcement
Prime Financial Group Ltd ACN 009 487 674 24 November 2014 For personal use only Level 17, Como Office Tower 644 Chapel Street PO Box 6105 South Yarra VIC 3141 Tel 03 9827 6999 Fax 03 9827 9100 Company Announcements Office enquiries@primefinancial.com.au Australian Securities Exchange Limited www.pr
Slide 2: Chairman's Address
Prime Financial Group Ltd ACN 009 487 674 Level 17, Como Office Tower 644 Chapel Street PO Box 6105 24 November 2014 South Yarra VIC 3141 For personal use only Tel 03 9827 6999 Fax 03 9827 9100 enquiries@primefinancial.com.au 2014 ANNUAL GENERAL MEETING www.primefinancial.com.au Chairman’s Address I
Slide 3: Chairman's Address (continued)
Prime's Accounting and Self-Managed Superannuation Revenue was up 8% for the year, For personal use only reflecting a better business environment for accountants and their clients. Prime's overheads fell 15% due to the delivery of $1.3M in expected benefits from internal restructuring in FY2013. Dir
Slide 4: Annual General Meeting November 2014
Annual General Meeting For personal use only 24 November 2014 Helping Clients Protect Assets and Build Wealth
Slide 5: Welcome
Welcome For personal use only • Directors: • Stuart James - Chairman • Simon Madder - Managing Director/CEO • Peter Madder - Executive Director • Company Secretary: • Campbell Kennedy • Auditors: • William Buck Audit (VIC) Pty Ltd • Share Registry: • Computershare Investor Services 2
Slide 6: Agenda
Agenda For personal use only • Chairman's Chairman s Address – Stuart James • Managing Director/CEO’s Presentation – Simon Madder • Business of the Meeting 3
Slide 7: Managing Director/CEO's Presentation
Managing Director/CEO’s Presentation For personal use only Simon Madder Helping Clients Protect Assets and Build Wealth
Slide 8: Positioning & Opportunity
Prime Financial Group Ltd – Positioning & Opportunity For personal use only • What is the Clients opportunity for • Estimated E ti t d th thatt only l 20% - 40% off Australians A t li receive i Prime? Financial Advice. Superannuation asset pools continue to grow and Australians are increasingly beco
Slide 9: Positioning & Opportunity: How does Prime grow?
Prime Financial Group Ltd – Positioning & Opportunity For personal use only • How does Prime • More consistently implement Prime’s Wealth grow? Management Client Engagement Model with Accounting Firms (More New Leads & New Client Appointments) • Increase Funds Under Management (FUM) • Deliver more s
Slide 10: Positioning & Opportunity: Why we are successful
Prime Financial Group Ltd – Positioning & Opportunity For personal use only • Why are we • Key roadmap to Growth (Organic & Acquisition) successful and • Clear ffocus on what Cl h our ideal d l ClClients and d Partners llook k why will we like and, increasingly how to access them become more success
Slide 11: Structure Chart
Structure Chart For personal use only Prime Financial Group Ltd Wealth Management Accounting and SMSF Services Up to 50% Equity $1B+ FUM and over 4,000+ clients 30+ Wealth Management g Direct Entities jointly owned 10 Accounting/SMSF A ti /SMSF (100% Equity) with Accounting Firms Firms (50% Equity)
Slide 12: FY2014 Results Summary
FY2014 Results Summary For personal use only FY2014 • EBIT DOWN 1% to $3.72M compared to FY2013; • NPAT DOWN 6% to $2.63M compared to FY2013; • EPS DOWN 5% to 1.8 CPS; • Full Year Dividend UP 7% to 0.80 CPS (54% payout ratio) from 0.75 CPS; • Overheads DOWN 15% (excluding interest) on FY2013; • New
Slide 13: FY2014 Results Summary: Wealth Management and Accounting
FY2014 Results Summary For personal use only FY2014 – Wealth Management (WM) • 85% of Revenue; • Revenue DOWN 14% (including CEM Licensing Fees) compared to FY2013; and • Revenue DOWN 7% (excluding CEM Licensing Fees) FY2014 – Accounting & SMSF Services (AS) • 15% of Revenue; and • Revenue UP 8% com
Slide 14: Key Developments - Operational & Investment Focus FY2014
Key Developments - Operational & Investment Focus FY2014 For personal use only FY2014 • Reduce the Cost Base – 15% drop and $1.3M benefit flowed through in FY2014; • Building the pipeline and recruiting new Accounting Firm Wealth Management JV Partners for Prime’s Client Engagement Model; • Commenci
Slide 15: Summary Full Year Results
Summary Full Year Results For personal use only Financial FY14 FY13 % Change Earnings Before Interest & Tax (EBIT) ($M) 3.72 3.74 -1% Net Profit After Tax (NPAT) ($M) 2.63 2.78 -6% Basic & Diluted Earnings (cents per share) 1.8 1.9 -5% Dividend Paid & Proposed (cents per share) 0.80 0.75 +7% (fully
Slide 16: Summary Profit & Loss
Summary Profit & Loss For personal use only % Change FY14 1H14 2H14 FY13 FY14 v FY13 Wealth Management – New Business Revenue ($M) 2.27 1.34 0.93 3.10 -27% Wealth Management – Recurring Revenue ($M) 7.63 3.84 3.79 7.51 +2% Wealth Management – Licensing Revenue ($M) 0 50 0.50 0 20 0.20 0 30 0.30 1 52
Slide 17: Wealth Management Revenue
Wealth Management Revenue For personal use only Wealth Management Wealth Management Revenue represents 85% of Prime’s Revenue % Change New Business Revenue FY14 1H14 2H14 FY13 FY14 v FY13 Investment Brokerage ($ ($’000) 000) 1 419 1,419 815 604 1 954 1,954 -27% 27% New Issues & IPO’s ($’000) 345 230
Slide 18: Wealth Management Licensing Revenue
Wealth Management Revenue For personal use only Wealth Management Licensing Revenue % Change FY14 1H14 2H14 FY13 FY14 v FY13 Licensing Revenue ($’000) 500 200 300 1,520 -67% Total ($’000) 500 200 300 1,520 -67% Commentary As expected licensing revenue was weighted more significantly to 2H2014 but lo
Slide 19: Key Metrics – New Business Leads
Key Metrics – New Business Leads For personal use only New Business Leads • Prime’s Client Engagement Model (CEM) drives the growth in new leads N Leads New L d (Monthly (M thl A Average)) for Prime’s Wealth Management 70 57 60 Services. This is driven by: 60 47 52 FY10 50 • New Client leads 40 31 F
Slide 20: Key Metrics – FUM Net Inflows and Net Margin
Key Metrics – FUM Net Inflows and Net Margin For personal use only Funds Under Management (FUM) Commentary 1H14 2H14 Total • Opening FUM ($M) 1,098 1,077 1,098 • FUM decreased by ($40.0M) substantially because of • FUM - New ($M) 38.8 45.6 84.4 Outflow’s related to the • FUM - Outflow ($M) (117.1) (
Slide 21: Accounting and SMSF Services Investees
Accounting and SMSF Services Investees For personal use only Accounting and SMSF Services Revenue Prime’s now 10 (up from 9) Accounting and SMSF Investees represent 15% of Prime’s Prime s Revenue % Change FY13 FY14 FY13 v FY14 Accounting and SMSF Revenue ($M) 1.69 1.83 +8% Total 1.69 1.83 +8% Note -
Slide 22: Summary Balance Sheet
Summary Balance Sheet For personal use only 30/06/13 30/06/14 Current Assets Cash 0.7 0.3 Other current assets 3.8 4.4 Non Current Assets Receivables 5.4 4.0 Plant & Equipment 1.3 1.1 Investments 61.9 62.4 Total Assets 73.1 72.2 Current Liabilities Payables/Provisions 2.3 2.9 Non Current Liabilities
Slide 23: FY2015 Focus
FY2015 Focus For personal use only FY2015 The plan for FY2015 is to; • Build Prime’s presence by communicating the difference and distinct value Prime offers clients’ in all key markets. • Provide clients with an increasingly diversified advisory offering across asset classes. classes • Recruit: • N
Slide 24: Business of the Meeting
Business of the Meeting For personal use only Business of the Meeting • Consideration of Financial Statements • Note: There is no requirement for shareholders to approve these statements • Adoption of the Remuneration Report • Re-Election of Director – Peter Madder • Approve a Prior Issue of Shares
Slide 25: Business of the Meeting: Remuneration Report Resolution
Business of the Meeting For personal use only Resolution 1 • To consider and, if thought fit, to pass (with or without modification) the following as a non-binding ordinary resolution: “That the Remuneration Report p for the y year ended 30 June 2014 forming g part of the Director’s Report be adopte
Slide 26: Resolution 2: Re-Election of Director – Peter Madder
Business of the Meeting For personal use only Resolution 2: Re-Election of Director – Peter Madder • To consider and, if thought fit, to pass (with or without modification) the following as an ordinary resolution: “That Mr. Peter Madder,, a Director retiring g by y rotation in accordance with the Co
Slide 27: Resolution 3: Approve a Prior Issue of Shares
Business of the Meeting For personal use only Resolution 3: Approve a Prior Issue of Shares • To consider and, if thought fit, to pass (with or without modification) the following as an ordinary resolution: “That for the p purposes p of Listing g Rule 7.4 and for all other p purposes, p , the Shareh
Slide 28: Thank you
Thank you For personal use only Helping Clients Build Wealth and Protect Assets
Prime Financial Group — Shareholder Meeting (November 2014) on 6ix