Slide 1: Half Year Results
For personal use only Half Year Results Centrepoint Alliance Limited 31 December 2015 ASX:CAF
Slide 2: Corporate snapshot
Corporate snapshot Shareholder structure For personal use only Capital Structure Adam KPM, 5% Smith, 6% Share price (19 February 2016) $0.36 Fully paid ordinary shares 153.2m River Capital, 6% Retail & Options and performance rights 4.0m other, 56% Market capitalisation $55.2m Cash (31 December 2015
Slide 3: 1H16 Financial highlights
1H16 Financial highlights • For personal use only Underlying pre-tax profit of $3.2m down 26% on pcp, and up 16% on pp. Statutory net profit after tax of $0.7m was down 75% and 76% on pcp and pp respectively • The underlying results were driven by: - Growth in funds management and administration rev
Slide 4: 1H16 Operational highlights
1H16 Operational highlights • Wealth’s new sustainable revenues performing well with salaried advice and product For personal use only solution strategies being implemented • Wealth is recruiting quality practices following the exit of institutional and non-institutional licensees • Premium funding
Slide 5: Financial summary
Financial summary Change - pcp Change - pp 1H15 2H15 1H16 For personal use only 1H16 v 1H15 1H16 v 2H15 Total Revenue $26.1m $22.8m $24.0m ▼ (8%) ▲ 5% Total Expenses (ex claims) $22.1m $21.6m $22.7m ▲ 3% ▲ 5% Cost to Income Ratio 85% 95% 94% ▲ 11% ▼ (1%) Underlying PBT (UPBT) $4.3m $2.7m $3.2m ▼ (26
Slide 6: Major drivers of UPBT
Major drivers of UPBT UPBT - pcp For personal use only $5.0m $4.3 1H16 vs 1H15 $4.5m $4.0m $3.5m +$0.8 +$0.8 +$0.2 $3.2 $3.0m -$0.3 $2.5m -$1.8 -$0.9 $2.0m $1.5m $1.0m $0.5m $0.0m UPBT UPBT Advice Product Interest revenues expenses revenues Rebate Margin 1H16 1H15 Salaried Fees Advice Admin Funds Mg
Slide 7: Business line profit summary
Business line profit summary For personal use only Change - pcp Change - pp Segment 1H15 2H15 1H16 1H16 v 1H15 1H16 v 2H15 Wealth $4.0m $3.1m $3.5m ▼ (13%) ▲ 13% Funding $1.6m $0.9m $1.4m ▼ (15%) ▲ 48% Corporate ($1.3m) ($1.3m) ($1.7m) ▲ 30% ▲ 32% Group Underlying PBT $4.3m $2.7m $3.2m ▼ (26%) ▲ 16%
Slide 8: Underlying profit reconciliation
Underlying profit reconciliation Change - pcp Change - pp Change 1H15 2H15 1H16 For personal use only 1H16 v 1H15 1H16 v 2H15 on PP Underlying Profit $4.3m $2.7m $3.2m ▼ (26%) ▲ 16% Legacy claims ($0.2m) ($2.2m) ($0.1m) ▼ (42%) ▼ (95%) Amortisation of intangibles ($0.4m) ($0.4m) ($0.4m) ▼ (16%) ▼ (8
Slide 9: Group balance sheet
Group balance sheet For personal use only Change - pcp Change - pp 1H15 2H15 1H16 1H16 v 1H15 1H16 v 2H15 Cash and Term Deposits $13.4m $12.5m $12.0m ▼ (10%) ▼ (4%) Interest Bearing Receivables $137.9m $122.5m $140.2m ▲ 2% ▲ 14% Intangible Assets and Goodwill $5.4m $4.9m $4.4m ▼ (20%) ▼ (12%) Other
Slide 10: Centrepoint's vision
Centrepoint’s vision For personal use only To be recognised as Australia’s most trusted and respected financial services organisation By: • Being the leading choice for quality advisers • Partnering with world class service providers to deliver solutions designed for advisers and their clients • Hel
Slide 11: Two attractive markets with strong positions
Two attractive markets with strong positions Wealth Market Non-Bank Funding Market • For personal use only Australian superannuation market of $2t expected Premium Funding to grow at an average of 7% pa over the next 20 • $4.6b premium funding market* years • Distributed via General Insurance broker
Slide 12: Our advice network
Our advice network For personal use only 2 Self-Licenced 0 649 Corp-Licenced 0 Self-Licenced 353 Salaried 0 Corp-Licenced 148 254 TOTAL WEALTH Mortgage brokers 0 0 Salaried TOTAL WEALTH 502 1 Self-Licenced 134 GI brokers 2 Mortgage brokers 69 Corp-Licenced 32 TOTAL FUNDING 2 GI brokers 78 Salaried 0
Slide 13: Wealth - Growth strategy
Wealth - Growth strategy • The wealth advice market is transforming driven by regulatory and technology change For personal use only Advisers are focusing on client best interest and operational efficiencies typically not found in institutional environments • Centrepoint is succeeding in recruiting,
Slide 14: Wealth highlights
Wealth highlights Financial • Underlying profit of $3.5m down 13% on pcp and up 13% on pp For personal use only • Advice fees were down $1.8m with introduction of fee for service model and exit of non- core advisers, and product rebates were down $0.9m on pcp. Salaried advice and product revenues we
Slide 15: Wealth results
Wealth results Change - pcp Change - pp Summary 1H15 2H15 1H16 1H16 v 1H15 1H16 v 2H15 For personal use only Revenue $16.3m $15.3m $15.4m ▼ (6%) ▲ 1% • Revenue mix moving to Expenses ($12.3m) ($12.2m) ($11.9m) ▼ (3%) ▼ (3%) sustainable model. Fee for Underlying PBT $4.0m $3.1m $3.5m ▼ (13%) ▲ 13% se
Slide 16: Alliance Wealth & Protection
Alliance Wealth & Protection • Independent, focused, customer oriented full For personal use only range financial planning services firm: wealth creation retirement planning debt management risk insurance financing solutions estate planning • Established in FY15. Grown to 7 full time In-
Slide 17: Funding highlights
Funding highlights Financial • Underlying profit of $1.4m, down 15% on pcp and up 48% on pp For personal use only • Strong growth in loans written offset commercial general insurance premium rate reductions of 7%-15%* in FY15 and further small decreases in 1H16. Year on Year (‘YoY’) growth seen in J
Slide 18: Funding results
Funding results Change - pcp Change - pp 1H15 2H15 1H16 1H16 v 1H15 1H16 v 2H15 Revenue $9.5m $7.5m $8.6m ▼ (10%) ▲ 15% For personal use only Expenses ($7.9m) ($6.5m) ($7.2m) ▼ (8%) ▲ 10% Underlying PBT $1.6m $0.9m $1.4m ▼ (15%) ▲ 48% Amortisation ($0.1m) ($0.1m) ($0.0m) ▼ (36%) ▼ (36%) Restructure
Slide 19: Funding key performance measures
Funding key performance measures Strong focus remains on the key long term value drivers For personal use only Active Brokers (monthly average) • Broker support continues to grow, up 25% over last 2 years • Our reputation for consistent, reliable and responsive service is now 389 382 367 362 310 bei
Slide 20: Funding key performance measures (cont'd)
Funding key performance measures (cont’d) For personal use only Premiums Funded WA Non-WA • Non-WA premiums funded increased by 12% versus pcp as the $250m business transitions to a lower risk nationwide distribution model • Growing market share with higher loans volumes offsetting lower premium
Slide 21: Dividends
Dividends cents per share Dividend per share • The Board has declared a final 2.5 For personal use only dividend of 1.0 cents per share 2.0 fully franked 1.5 • Record date is 24 March 2016 with payment on 29 April 2016 1.0 • A Dividend Reinvestment Plan is 0.5 offered with a discount of 2% 0.0 • The
Slide 22: Strategic initiatives - update
Strategic initiatives - update Organic Growth • Steady growth in quality wealth practices occurring as advisers select quality For personal use only non-institutional business partners • Increasing support for in-house platforms and funds by advisers • Premium funding underlying profitability and gr
Slide 23: Summary
Summary • Wealth will continue to recruit, develop and grow quality practices as institutions reduce For personal use only their focus on the independent advisers • Modern adviser services business built. Evolution of services will continue. Focus is on adoption and improving client experience and p
Slide 24: Definitions
Definitions Term Definition For personal use only CY Calendar Year EBITDA Earnings Before Interest, Tax, Depreciation & Amortisation EPS Earnings Per Share FOFA Future Of Financial Advice (legislation) Funds The collective term for Funds under Distribution Agreements, Advice, Administration, Managem
Slide 25: Disclaimer
Disclaimer This presentation is for general information purposes only and should be read in conjunction with the For personal use only Appendix 4D lodged with the Australian Securities Exchange by Centrepoint Alliance Limited (ASX:CAF) on 24 February 2016. This presentation does not provide recommen
Slide 26: Contact Details
For personal use only Contact Details: John de Zwart John Cowan Managing Director Chief Financial Officer Telephone: +61 2 8987 3002 Telephone: +61 2 8987 3036 Email: jdezwart@cpal.com.au Email: john.cowan@cpal.com.au Level 6, 2 Elizabeth Plaza Level 6, 2 Elizabeth Plaza North Sydney NSW 2060 North