Prime Financial Group Limited · ASX:PFG
Prime Financial — FY2013 Earnings Presentation
21 slides from Prime Financial's earnings presentation, Aug 29, 2013
Slide 1: Full Year Results Presentation
Full Year Results Presentation For personal use only 29 August 2013 Helping Clients Build Wealth and Protect Assets
Slide 2: Positioning: Who is Prime and what do we do
Prime Financial Group Ltd – Positioning For personal use only • Who is Prime? • National Financial Services & Advisory Group, managing over $1.0B for clients, that partners with 30+ Accounting Firms for Wealth Management and also owns equity in 9 Accounting or SMSF Firms • What do we do? • Prime has
Slide 3: Positioning: Advisory services provided to clients
Prime Financial Group Ltd – Positioning For personal use only • What advisory • Financial & Retirement Planning; services do we • Investment Advice; provide to clients? • Life Insurance; • Asset Protection Advice incorporating Legal Services; • Superannuation, including Self Managed Superannuation;
Slide 4: Positioning: To whom we provide advisory services
Prime Financial Group Ltd – Positioning For personal use only • To whom do we • To Prime’s own direct clients, and by; provide advisory services? • Licensing & Implementing Prime’s Client Engagement Model for Accounting Groups; • This is operated and managed through 50 / 50 equity relationships • Ac
Slide 5: Positioning: What need do we fulfill?
Prime Financial Group Ltd – Positioning For personal use only • What need do we • Clients – We provide security through personalised fulfill? Financial & Investment Advice • Accountants – Create additional engagement more consistently with clients, we deliver additional services that clients are see
Slide 6: Positioning: Why Prime and the opportunity
Prime Financial Group Ltd – Positioning For personal use only • Why Prime? • Clients – Team of specialists, integrated service incorporating Client’s Accountant, Direct & Transparent Investment approach without the cost burden of additional intermediaries plus strong Asset Protection & SMSF knowledg
Slide 7: Positioning: Key challenges and how Prime grows
Prime Financial Group Ltd – Positioning Key Challenges? • Distraction of implementing legislative change (FoFA), For personal use only • lack of industry transparency which confuses consumers, investor confidence and driving growth while maintaining cost controls • How does Prime • More consistently
Slide 8: Positioning: Why we are successful
Prime Financial Group Ltd – Positioning For personal use only • Why are we • Key roadmap to Growth (Organic & Acquisition) successful and • Clear focus on what our ideal Clients and Partners look why will we like and, how to access them become more successful? • Access to a ready pool of new clients
Slide 9: 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 Direct Entities jointly owned 9 Accounting/SMSF (100% Equity) with Accounting Firms Firms (50% Equity) Access to 40,00
Slide 10: Key Developments & Operational Focus FY2013
Key Developments & Operational Focus FY2013 For personal use only • Restructured Cost Base - $1.3M benefit to flow through in FY2014; • Continued improvement in traditional Wealth Management Revenue (New Business & Recurring Revenue) through Prime’s Client Engagement Model (CEM) (Up 6% on FY2012); •
Slide 11: Key Developments & Operational Focus FY2013 (cont…)
Key Developments & Operational Focus FY2013 (cont…) For personal use only • Revamped the Digital Branding Strategy as part of Prime’s wider Brand build; • Recruited a dedicated Chief Investment Officer (CIO) to facilitate further development of Prime's investment offering; • Finalised the review of
Slide 12: Summary Full Year Results
Summary Full Year Results For personal use only Financial FY13 FY12 % Change Earnings Before Interest & Tax (EBIT) ($M) 3.74 4.32 - 13% Net Profit After Tax (NPAT) ($M) 2.78 2.81 - 1% Basic & Diluted Earnings (cents per share) 1.7 1.7 0% Dividend Paid & Proposed (cents per share) 0.75 1.00 - 25% (fu
Slide 13: Summary Profit & Loss
Summary Profit & Loss % Change FY13 1H13 2H13 FY12 For personal use only FY13 v FY12 Wealth Management – New Business Revenue ($M) 3.10 1.40 1.70 2.68 + 16% Wealth Management – Recurring Revenue ($M) 7.51 3.62 3.89 6.89 + 9% Wealth Management – Licensing Revenue ($M) 1.52 0.92 0.60 1.82 - 16% Total
Slide 14: Wealth Management Revenue
Wealth Management Revenue For personal use only Wealth Management Wealth Management Revenue represents 88% of Prime’s Gross Revenue % Change New Business Revenue FY13 1H13 2H13 FY12 FY13 v FY12 • Investment Brokerage ($’000) 1,954 794 1,160 1,585 + 23% • New Issues & IPO’s ($’000) 511 214 297 369 +
Slide 15: Wealth Management Licensing Revenue
Wealth Management Revenue For personal use only Wealth Management Licensing Revenue % Change FY13 1H13 2H13 FY12 FY13 v FY12 Licensing Revenue ($’000) 1,520 920 600 1,820 -16% Total ($’000) 1,520 920 600 1,820 -16% • In FY2013, three of Prime’s existing Accounting Firm Partners moved to the Client E
Slide 16: 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) (CEM) drives the growth in new leads 60 57 for Prime’s Wealth Management 52 Services. This is driven by: 50 47 • New Client leads 40 FY10 • Additional Services from
Slide 17: Key Metrics – FUM Net Inflows and Net Margin
Key Metrics – FUM Net Inflows and Net Margin For personal use only Funds Under Management (FUM) 1H13 2H13 Total Commentary • Opening FUM ($M) 1,001 1,083 1,001 • The overall increase in FUM of ($97.0m) is reflective of improved • FUM - New ($M) 47.3 34.2 81.5 stockmarket conditions and Prime’s • FUM
Slide 18: 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 12% of Prime’s Gross Revenue % Change FY13 FY12 FY13 v FY12 Accounting and SMSF Revenue ($M) 1.69 2.08 - 19% Total 1.69 2.08 - 19% Note - Prime’s Accoun
Slide 19: Summary Balance Sheet
Summary Balance Sheet 30/06/13 30/06/12 For personal use only Current Assets Cash 0.7 0.3 Other current assets 3.8 4.9 Non Current Assets Receivables 5.4 4.7 Plant & Equipment 1.3 1.5 Investments 61.9 62.1 Total Assets 73.1 73.5 Current Liabilities Payables/Provisions 2.3 3.0 Non Current Liabilities
Slide 20: FY2014 Focus
FY2014 Focus For personal use only FY2014 The plan for the next twelve months is to; • Continue to promote Prime, communicating our difference and the distinct value we offer in all of our key markets; • Build out our Investment Advisory offering and the number of asset classes we directly manage fo
Slide 21: 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