Slide 1: CountPlus Limited Results Presentation FY2018
CountPlus Limited (ASX: CUP) Results Presentation For the Financial Year ended 30 June 2018 PRESENTED BY Matthew Rowe, CEO and Managing Director Laurent Toussaint, CFO and Company Secretary 27 August 2018
Slide 2: Disclaimer
Disclaimer This document is a presentation of general Forward looking statements Pro forma financial information background information about the activities of CountPlus Limited (CountPlus) current at the This document contains certain forward looking statements and CountPlus uses certain measures t
Slide 3: CountPlus transformation update
CountPlus transformation update Old CountPlus New CountPlus • Number of underperforming and non-core firms in the CountPlus • Transformation well underway and on track – one year into our stable two-year turnaround plan • Scope for further margin improvement • Balance sheet with $19.3M of net intere
Slide 4: CountPlus key statistics
CountPlus key statistics Listed on the ASX since 2010, we are a network of successful professional accounting and advice firms, aligned through our shared values and sense of community. CountPlus seeks to make a decent profit, decently CountPlus footprint Dividends reinstated of 1.0 cent per share F
Slide 5: Full year performance highlights – FY18
Full year performance highlights – FY18 Financial Results – FY18 • Same firm revenue marginally higher ($945,000) and adjusted NPATA marginally lower ($520,000) in a year of significant change and $’000 reorganisation Revenue Adjusted EBITA Adjusted NPATA • Recognised, diversified financial services
Slide 6: Full year operational highlights – FY18
Full year operational highlights – FY18 Organic growth Profitability Capital Management • Restructuring of underlying firms • Underlying firm EBITA margin • Net cash position of $9M. Strong substantially complete, positioning increased from 12% in FY17 to balance sheet positioned for growth these fi
Slide 7: Key issues, priorities and contributions
Key issues, priorities and contributions Key issues and priorities Accounting priorities Financial Planning priorities and contributions and contributions • Growth of underlying partner • Improving and sustainable • TFS licence conditions lifted by firms profitability of underlying existing ASIC. On
Slide 8: The CountPlus Value Proposition
The CountPlus Value Proposition CountPlus is implementing a new Owner, Driver - Partner model to attract and retain the best firms, incentivising firms to drive quality growth and generate returns for shareholders. We take our responsibility to add value to Partner firm practices seriously. We take
Slide 9: CountPlus Vision and Goals
CountPlus Vision and Goals Our vision is to become Australia’s leading network of professional accounting and advice firms, aligned through shared values, mutual success and our sense of community The CountPlus Vision Results Presentation – FY18 9
Slide 10: Financial Performance
Financial Performance Laurent Toussaint, Chief Financial Officer
Slide 11: Key metrics
Key metrics Revenue, EBITA, EBITA margin, track record FY16 to FY18 FY18 transformation year as we build a more profitable CountPlus Financial Results summary FY18 FY17 FY16 Movement - FY17 – FY18 $’000 $’000 $’000 $’000 % Adjusted same firm revenue 74,386 73,441 75,428 945 1 Adjusted EBITA 7,843 8,
Slide 12: Adjusted profit
Adjusted profit Adjusted profit FY18 FY17 FY16 $’000 $’000 $’000 Profit from continuing operations before income tax 2,612 569 21,811 Impairments of intangible assets 4,700 5,001 2,672 (Gain) / Loss on sale of investments (2,258) 660 (1,290) Revaluation of listed investment 0 0 (16,272) (Gain) on de
Slide 13: Segmental performance – Breakdown
Segmental performance – Breakdown Segmental performance FY18 FY17 Movement - FY17 – FY18 $’000 $’000 $’000 % Revenue Accounting 54,403 60,240 (5,837) (10) Financial services – (Ex TFS) 12,525 14,131 (1,606) (11) Financial services – (TFS) 4,419 5,098 (679) (13) Property 0 0 0 100 Other 3,039 2,912 1
Slide 14: Revenue metrics
Revenue metrics Continuing operations Revenue reconciliation FY17 – FY18 $’000 Increase in total TFS net revenue 243 Exited firms – accounting, financial planning and other revenue (8,940) Increase in net revenue – same firms 702 Total (7,995) Same firm revenue by full time employees (FTE) FY18 FY17
Slide 15: Cash flow statement
Cash flow statement FY18 – Cash flow statement waterfall ($’000) Cash flow statement adjustment FY18 FY17 $’000 $’000 Cash flow from operating activities 4,794 7,986 Less: Tax paid for prior year transactions 0 (3,741) Add: Vendor financing (1) 1,635 0 Adjusted cash flow from operating activities 6,
Slide 16: EBITA margins
EBITA margins EBITA / Revenue Performance same firm analysis Key takeaways: • 80% of firms have a new Managing Principal • 95% of firms have a new Firm Chair • EBITA results include restructuring costs of $684,000 at a firm level • Revenue on same firm analysis at $74.3M is an increase Note: Analysi
Slide 17: Key execution priorities
Key execution priorities • Well placed to capitalise on market moves in the financial planning space; • Increase in EBITA (Earnings before interest, tax and amortisation) margin as the restructuring is progressing well; • Group lock up (Debtors days and work in progress days) of 85 days; • Significa
Slide 18: Capital management and dividends
Capital management and dividends • Resumption of dividends for FY18 • FY18 final dividend of 1.0 cent per share (fully franked) • Target dividend pay-out ratio of 40% to 70% of maintainable net profit after tax attributable to CountPlus shareholders • Pay dividends out of operating cash flow generat
Slide 19: FY19 outlook and summary
FY19 outlook and summary Key deliverables • Well on track to meet our two-year turnaround strategy; • Scope for further margin expansion; • We have a high quality, motivated 450 strong team to build trust with clients and in society; • Grow organically and by acquisition; • Create and capture value
Slide 20: Appendices
Corporate Index – CountPlus Appendices
Slide 21: Corporate Details Snapshot
Appendix 1 Corporate Details Snapshot CountPlus Limited ticker ASX:CUP ABN 11 126 990 832 Shares on issue 114,222,559 Share price – 23 August 2018 $0.675 Market capitalisation ($’M) 77.1 Number of investments 16 Net cash – 30 June 2018 $9.0M Results Presentation – FY18 21
Slide 22: Adjusted to statutory reconciliation
Appendix 2 Adjusted to statutory reconciliation NPATA and EBITA analysis – Adjusted FY18 FY17 FY16 $’000 $’000 $’000 Net profit after tax – Per AFS 847 875 13,980 Add / Deduct: Loss / (Gain) from discontinued operations 1,465 (1,075) 0 Add: Impairments of intangible assets 4,700 5,001 2,673 (Gain) /
Slide 23: Adjusted taxation reconciliation
Appendix 3 Adjusted taxation reconciliation Taxation analysis – Adjusted FY18 FY17 FY16 $’000 $’000 $’000 The prima facie tax payable on profit from ordinary activities before income tax is reconciled to the income tax expense as follows: Adjusted profit before tax - (Refer to page 12) 5,310 5,434 3
Slide 24: Abridged Statement of Financial Position
Appendix 4 Abridged Statement of Financial Position Abridged Statement of Financial Position FY18 FY17 Movement Cash 10,998 8,284 2,714 Interest bearing loans and borrowings (2,023) (13,578) 11,555 Investments in associates 9,088 11,716 (2,628) Intangible Assets 34,228 44,994 (10,766) Total Assets 7
Slide 25: CountPlus firm survey of firms
Appendix 5 CountPlus firm survey of firms - Some of our feedback received • Client turnover rates of less than 1% • Recipient of the National Count Charitable • Client satisfaction rates in excess of 90% Foundation 2018 Community Award • Client complaints of less than 0.1% • Employees collectively d
Slide 26: Board and Management of CountPlus
Appendix 6 Board and Management of CountPlus Ray Kellerman Alison Ledger Andrew McGill Kate Hill Independent Non-Executive Chair Independent Non-Executive Director Independent Non-Executive Director Independent Non-Executive Director Matthew Rowe Laurent Toussaint Mark Chapman Managing Director and
Slide 27: Managing Principals of CountPlus Firms
Appendix 7 Managing Principals of CountPlus Firms Victoria Studley Mark Kenmir Chris Nicoloff Christine Robinson Managing Director – 360 Financial Managing Director – Addvantage Managing Director – Bentleys Manging Director – Cooper Reeves Advantage Accountants and Mark Kenmir and Co Ian George Helg
Slide 28: Managing Principals of CountPlus Firms
Appendix 7 Managing Principals of CountPlus Firms Philip Smith Ross Hedrick Geoff Missen Peter Mogg Managing Director – Hunter Financial Managing Director – Kidmans Partners Managing Director – MBA Partnership Managing Director – Mogg Osborne David Evers Lucas Woodbury Andrew Kennedy Michael Twomey
Slide 29: Salient dates
Appendix 8 Salient dates Key Dates FY18 final dividend paid October 2018 Annual General Meeting November 2018 HY19 Financial Result February 2019 Results Presentation – FY18 29
Slide 30: Thank you
THANK YOU 30