Centrepoint Alliance Limited · ASX:CAF
Centrepoint Alliance — FY2021 Earnings Presentation
22 slides from Centrepoint Alliance's earnings presentation, Aug 25, 2021
Slide 1: FY21 Full Year Results Presentation and Strategy Update
For personal use only FY21 FULL YEAR RESULTS PRESENTATION AND STRATEGY UPDATE John Shuttleworth, CEO Brendon Glass, CFO August 2021
Slide 2: Disclaimer
Disclaimer For personal use only This presentation is for general information purposes only and should be read in conjunction with the Full Year Financial Report for the twelve months ended 30 June 2021 and the Appendix 4E lodged with the Australian Securities Exchange by Centrepoint Alliance Limite
Slide 3: Agenda
AGENDA For personal use only BUSINESS RESULTS AND STRATEGY John Shuttleworth, CEO FINANCIAL RESULTS Brendon Glass, CFO Acquisition of ClearView Advice John Shuttleworth, CEO Brendon Glass, CFO 3
Slide 4: Business Results
For personal use only BUSINESS RESULTS John Shuttleworth, CEO
Slide 5: Snapshot of core earnings
Snapshot of core earnings For personal use only $139.2m $3.1m $11.1m Dividend (fully franked and Gross revenue EBITDA Cash (at 30 June 2021) to be paid 8 October 2021) 6% $3.0m 9% 3c Special on FY20 on FY20 on FY20 1c Ordinary KEY MESSAGES TODAY FUTURE INDICATORS • Solid performance in a challenging
Slide 6: Strategic context
Strategic context For personal use only THE NEED FOR The great shift from accumulation to retirement incomes driven by the ageing population ADVICE HAS NEVER BEEN Increased complexity through the interplay of superannuation, retirement, tax and social security GREATER $12.6 trillion in household ass
Slide 7: The business has built a strong foundation for future growth
The business has built a strong foundation for future growth For personal use only CONSOLIDATION GROWTH PHASE Strong foundation Three core pillars underpinning our strategy 1. 2. 3. Centrepoint’s focus Grow the Licensee Invest in financial Provide the over the last 3 years solutions and build servic
Slide 8: Amidst disruption, there are clear opportunities to grow
Amidst disruption, there are clear opportunities to grow For personal use only MARKET RATIONALISATION Over the FY21 financial year the Number of advisers number of financial advisers in the market continued to decline as 25,301 pressure on operating margins 24,077 and tighter education 4,860 21,922
Slide 9: Continue to provide service excellence to our existing advisers
Continue to provide service excellence to our existing advisers through high quality services – 21,000 enquiries with 93% resolved within 2 days For personal use only TOTAL ENQUIRIES, OCTOBER 2020 - JUNE 2021 Number of enquiries Specialised Average days and valued 1 to resolve support Average 2 enqu
Slide 10: A leading provider of advice technology
We are a leading provider of advice technology and will continue to invest to digitise the advice process For personal use only Centrepoint AI All service teams launch acquisition migrated to (live practice Centrepoint Alliance partnership management) Xplan site investment commences 8,000 enquiries
Slide 11: Financial Results
For personal use only FINANCIAL RESULTS Brendon Glass, CFO
Slide 12: Financial results summary
Financial results summary For personal use only FY191 FY20 1H21 2H21 FY21 • Gross revenue up $8.2m (+6% PCP) For the period ($m) ($m) ($m) ($m) ($m) due to higher adviser fees, higher Gross Revenue 117.5 131.0 70.6 68.6 139.2 quality advisers and Enzumo integration Adviser fees and commissions (86.8
Slide 13: Revenue and expense analysis
Revenue and expense analysis For personal use only Revenue movement ($m) Key revenue movements (PCP) : $29.3 $5.6 • Adviser fees revenue up $3.1m (31%) with final step up $3.1 $1.0 $2.5 $28.1 in July 2020 $0.2 • Rebates down $5.6m due to grandfathered runoffs, with platform rebates ceased from 1 Jan
Slide 14: Balance sheet
Balance sheet For personal use only FY20 FY21 • Cash generated from operations of $3.8m, offset by claims For the period ended ($m) ($m) settlements of $1.2m Cash & Term Deposits 12.2 11.1 • Loans receivable reduced due to $2.4m Neos Life repayment; Trade and Other Receivables 7.8 6.7 $1.0m schedule
Slide 15: Cash movement
Cash movement For personal use only $2.7m $5.8m • Cash in Jun21 closed at 11.1m $3.8m • FY21 Cash from operations $3.8m • Neos Life divestment $2.4m, Ginger dividends $1.2m received and RFE loan recoveries $0.3m $12.2m $0.6m $11.1m • Dividends paid $5.8m • Claims paid out $1.2m • Other $0.6m FY20 Ca
Slide 16: Acquisition of ClearView Advice
For personal use only ACQUISITION OF CLEARVIEW ADVICE John Shuttleworth, CEO Brendon Glass, CFO
Slide 17: Opportunity to combine best of both ClearView and Centrepoint Alliance
Opportunity to combine best of both ClearView and Centrepoint Alliance to build a market leading advice service business For personal use only CENTREPOINT ALLIANCE TO ACQUIRE CLEARVIEW ADVICE FOR $15.2M Consideration $12m in shares (48m @ 25cps) Licensee of the year 3 out of Award Winning Advice B
Slide 18: The combined business will have significant scale and operational leverage
The combined business will have significant scale and operational leverage For personal use only TRANSACTION RATIONALE Centrepoint post acquisition 1,303 advisers comprising, • 490 licensed advisers • 813 self-licensed advisers Significant operating leverage and scale Immediate synergies from operat
Slide 19: Transaction and Placement Summary
TRANSACTION AND PLACEMENT SUMMARY For personal use only Key points - Transformational combination of two strong brands is Key transaction details substantially accretive Settlement consideration $15.2m - Leveraging best practice customer centric licensee and Cash $3.2m technology solutions Vendor sh
Slide 20: Appendix
For personal use only APPENDIX
Slide 21: Corporate snapshot
Corporate snapshot For personal use only EXPERIENCED AND INVESTED CAPITAL STRUCTURE LEADERSHIP TEAM TOP SHAREHOLDERS ASX Stock Code CAF Shares held Investors Board & Management Role As at 15/7/21 As at 15/7/2021 Shares held (% of SOI) FY21 gross revenue $139.2m Mr Alan Fisher Non-Executive Chairman
Slide 22: Centrepoint Alliance in numbers
Centrepoint Alliance in numbers For personal use only 22 Sources: Centrepoint Alliance internal service metrics (FY21).