Prime Financial Group Limited · ASX:PFG
Prime Financial — FY2012 Earnings Presentation
20 slides from Prime Financial's earnings presentation, Aug 27, 2012
Slide 1: Full Year Results Presentation
Full Year Results Presentation For personal use only 27 August 2012 Helping Clients Build Wealth and Protect Assets
Slide 2: Prime Financial Group Ltd – Positioning
Prime Financial Group Ltd – Positioning For personal use only • What do we do? • Provide Integrated Wealth Management Services • Financial Planning • Investment Advice • Life Insurance • Asset Protection Advice incorporating Legal Services • Superannuation, including Self Managed Superannuation, and
Slide 3: Prime Financial Group Ltd – Positioning… cont
Prime Financial Group Ltd – Positioning… cont For personal use only • How do we provide • Through 20 highly qualified Financial Advisers these services? • Located in hubs in VIC, NSW, WA and QLD • Providing cost effective, transparent and consistent advice • Combining Wealth Management Advice with A
Slide 4: Structure Chart
Structure Chart For personal use only Prime Financial Group Ltd Wealth Management Accounting and SMSF Services 100% Equity $1B+ FUM and over 4,000 clients CPP Primestock Securities Ltd Up to 50% Equity 50% Equity 30 Wealth Management 9 Entities jointly owned Accounting/SMSF with Accounting Firms Fir
Slide 5: FY2012 Results Summary: Introduction
FY2012 Results Summary For personal use only Introduction • The Financial Services sector has experienced a difficult 12 months to 30 June 2012. Domestic economic uncertainty saw the Australian stockmarket retreat 11% from July 2011 to June 2012 resulting in declining investor confidence. Furthermor
Slide 6: FY2012 Results Summary: Introduction.. cont
FY2012 Results Summary For personal use only Introduction.. cont • Prime’s Normalised EBIT (excluding one-off’s) has declined 9% versus the previous corresponding period and Normalised NPAT (excluding one-off’s) has declined 8%. Included in these results is an increase in Group Overheads of 6% refle
Slide 7: FY2012 Achievements
FY2012 Achievements For personal use only Wealth Management Licensing Model • Prime has developed a highly scalable and integrated Client Engagement Model which is delivered through a Wealth Management Joint Venture Licensing structure • In FY2012 Prime launched this licensing strategy with existing
Slide 8: FY2012 Achievements
FY2012 Achievements For personal use only Prime Legal Services • In FY2012 Prime established a Legal Services division that supports Prime’s delivery of Asset Protection products and services such as loan agreements, buy/sell agreements, shareholders agreements and wills and estate planning • Althou
Slide 9: FY2012 Results Summary: Wealth Management Results
FY2012 Results Summary For personal use only Wealth Management Results • Wealth Management Revenue grew by 11% in FY2012 • During FY2012 a new revenue stream was created by licensing Prime’s Client Engagement Model to Existing and New Accounting and Advisory Groups as part of Prime’s growth and expa
Slide 10: Summary Full Year Results
Summary Full Year Results For personal use only Financial FY11 FY12 % Change Normalised Earnings Before Interest & Tax 5.50 5.02 - 9% (EBIT) ($M)* Reported Earnings Before Interest & Tax 5.50 4.32 - 21% (EBIT) ($M) Normalised Net Profit After Tax (NPAT) 3.84 3.52 - 8% ($M)* Net Profit After Tax (NPA
Slide 11: Summary Profit & Loss (Normalised)
Summary Profit & Loss (Normalised) % Change FY11 1H12 2H12 FY12 For personal use only FY11 v FY12 Wealth Management – New Business Revenue ($M) 3.00 1.42 1.26 2.68 - 11% Wealth Management – Recurring Revenue ($M) 7.25 3.41 3.48 6.89 - 5% Wealth Management – Licensing Revenue ($M) - 0.82 1.00 1.82 n/
Slide 12: Wealth Management Revenue
Wealth Management Revenue For personal use only Wealth Management Wealth Management Revenue represents 85% of Prime’s Gross Revenue % Change New Business Revenue FY11 1H12 2H12 FY12 FY11 v FY12 • Investment Brokerage ($’000) 2,417 927 658 1,585 - 34% • New Issues & IPO’s ($’000) - 68 301 369 n/a • A
Slide 13: Key Metrics –Wealth Management Licensing Revenue
Key Metrics –Wealth Management Licensing Revenue For personal use only Wealth Management Licensing Revenue % Change FY11 1H12 2H12 FY12 FY11 v FY12 Licensing Revenue ($’000) - 820 1,000 1,820 n/a Total ($’000) - 820 1,000 1,820 n/a • In FY2012 Prime commenced its licence roll out of Prime’s new Clie
Slide 14: Key Metrics – New Business Leads
Key Metrics – New Business Leads For personal use only New Business Leads • Prime’s Client Engagement Model New Leads (Monthly Average) drives the growth in new leads for 60 52 Prime’s Wealth Management Services. 50 47 This is driven by: 40 • New Client leads 31 FY10 30 • Additional Services from Ex
Slide 15: Key Metrics – FUM Net Inflows and Net Margin
Key Metrics – FUM Net Inflows and Net Margin For personal use only Funds Under Management (FUM) 1H12 2H12 Total Commentary • Opening FUM ($M) 1,055 1,008 1,055 • The overall decline in FUM of ($54.0m) is reflective of the • FUM - New ($M) 35.5 33.4 68.9 difficult domestic and global • FUM - Outflow
Slide 16: Accounting and SMSF Services Investees
Accounting and SMSF Services Investees For personal use only Accounting and SMSF Services Revenue Prime’s 9 Accounting and SMSF Investees represent 15% of the Prime’s Gross Revenue % Change FY11 FY12 FY11 v FY12 Underlying Accounting and SMSF Revenue ($M) 2.19 2.08 - 5% Accounting and SMSF Corporate
Slide 17: Summary Balance Sheet
Summary Balance Sheet 30/06/11 30/06/12 For personal use only Current Assets Cash 0.4 0.3 Other current assets 6.2 4.9 Non Current Assets Receivables 1.7 4.7 Plant & Equipment 1.5 1.5 Investments 69.8 69.6 Total Assets 79.6 81.0 Current Liabilities Payables/Provisions 3.6 3.8 Borrowings 0.2 - Non Cu
Slide 18: FY2013 Targets & Longer Term
FY2013 Targets & Longer Term For personal use only FY2013 • Drive organic growth initiatives to increase the Prime network of Wealth Management Investees and expand service offerings: • Continue to deliver outcomes from Prime’s Client Engagement Model and Wealth Management Joint Venture Licensing st
Slide 19: FY2013 Targets & Longer Term
FY2013 Targets & Longer Term FY2013.. Cont. For personal use only • Leverage off key attributes of the Prime business: • Scalable centralised system • Vertically integrated business (Financial Planning, Investment Advice, Life Insurance, Asset Protection incorporating Legal Services, Self Managed Su
Slide 20: Contact
Contact For personal use only Simon Madder Managing Director / CEO Prime Financial Group Ltd Level 17, Como Office Tower 644 Chapel Street South Yarra VIC 3141 Tel 03 9827 6999 Fax 03 9827 9100 simonm@primefinancial.com.au