Fiducian Group Ltd · ASX:FID
Fiducian — FY2017 Earnings Presentation
38 slides from Fiducian's earnings presentation, Aug 17, 2017
Slide 1: Fiducian Group FY 2017 Results Investor Presentation
Fiducian Group (ASX: FID) For personal use only FY 2017 Results Investor Presentation 17 August, 2017
Slide 2: New South Wales Office Locations
eG { ON. Zs 5b Shee Ae ZA y For perspiig! Use only a New South Wales eae Office Locations Abbotsford Gosford Newcastle Tweed Heads ‘@ @ Ballina Hunter Ourimbah Walcha Bathurst Kellyville Randwick Windsor Bondi Junction (x2) —_ Ku-ring-gai Roseville Tamworth Castle Hill Lane Cove Southern Highlands C
Slide 3: Fiducian Group FY 2017 Agenda
Fiducian Group FY 2017 For personal use only •FY 2017 Highlights • Business Overview • Financials • Growth Strategy and Business Outlook • Contacts 3
Slide 4: FY 2017 Highlights
For personal use only FY 2017 Highlights
Slide 5: Victoria Office Locations
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Slide 6: Fiducian Group FY 2017 Agenda
Fiducian Group FY 2017 For personal use only • FY 2017 Highlights •Business Overview • Financials • Growth Strategy and Business Outlook • Contacts 6
Slide 7: Business Overview: Profit Generating Sustainable Business Model
Business Overview Profit Generating Sustainable Business Model For personal use only Management • Process driven, client focused investment products • 15 Managed Funds: 4 Diversified Funds, 4 Sector Funds, 7 Specialist Funds Funds • $1.96 Billion in Funds under Management (FUM) • Listed comparables
Slide 8: Business Overview: Funds Management
Business Overview Funds Management For personal use only • 15 Funds using Fiducian’s Manage-the-Manager (MTM) system of Investment • Select expert Fund Managers – with proven performance and differing investment processes plus styles • Combine experts with different weightings – up to 37 Fund Manage
Slide 9: Funds Management: Fund Returns and Rankings
Business Overview Funds Management For personal use only Fiducian Funds 1-year return 3-year return 5-year return (ranking) p.a. (ranking) p.a. (ranking) p.a. Growth 11.3% (19/196) 9.8% (1/188) 12.8% (2/178) Balanced 9.9% (68/196) 8.8% (4/188) 11.4% (8/178) Ultra Growth 10.9% (80/127) 11.5% (2/115)
Slide 10: WRAP Platforms (FSS/FIS) – FASTrack System
Business Overview WRAP Platforms (FSS/FIS) – FASTrack System For personal use only • Public offer “Superannuation Fund” • Investor Directed Portfolio Service (IDPS) 15 – Multimanager Funds using the Fiducian Manage-the- Manager system 57 – Single Manager Fund Choices 4 – Managed Discretionary Accoun
Slide 11: Financial Planning
Business Overview Financial Planning For personal use only We are selective in recruiting Financial Planners. National footprint with 44 practices, 67 representatives 38 Franchise Offices 6 Salaried Offices Total 67 Authorised Representatives Focus is on Quality and Expertise Market Segment: Finan
Slide 12: FinTech (FORCe & FASTrack)
Business Overview FinTech (FORCe & FASTrack) For personal use only Financial Reporting WRAP Fiducian Planning Administration Online Software FASTrack Financial Investor Planner Market Segment: Fintech (IT Development) 12
Slide 13: Integrated Business Model
Business Overview Integrated Business Model For personal use only Our clients experience the Fiducian difference: Administration / Financial Funds Management Platforms Planning $1.96 bil $1.58 bil $2.14 bil Full Year Gross Revenue $40.7 mil Fiducian Integrated Business Model FUMAA $5.68 bil 13
Slide 14: Queensland Office Locations
Queensland Office Locations Buderim Caboolture Gold Coast Sunshine Coast ——
Slide 15: Fiducian Group FY 2017 Agenda
Fiducian Group FY 2017 For personal use only • FY 2017 Highlights • Business Overview •Financials • Growth Strategy and Business Outlook • Contacts 15
Slide 16: Financials
Financials FY 2017 Results: Financial Highlights For personal use only 16
Slide 17: FY 2017 Results: 24% UNPAT Growth
Financials FY 2017 Results: 24% UNPAT Growth For personal use only Revenue increase from Organic & Inorganic inflows plus increased financial market valuations Funds Management, Administration and Financial Advice performed strongly Service provider costs increased to provide for higher revenu
Slide 18: FY 2017 Results: Segment update
Financials FY 2017 Results: Segment update For personal use only Funds Revenue for the year is $10.1 mil Management Top quartile performance has driven significant inflows Benefitting from scaled fees from underlying managers Revenue for the year is $15.0 mil Administration Operational efficiencies
Slide 19: Five Year Summary: Financials
Financials Five Year Summary: Financials For personal use only Sustainable growth history consistently over long term
Slide 20: Five Year Summary: Revenue & EPS
Financials Five Year Summary: Revenue & EPS For personal use only Top-line Revenue Growth: 17% annualised EPS Growth: 24% annualised Economic Leverage: EPS Growth faster than Revenue Growth Sustainability: Double-digit EPS growth in 14 out of 18 years since listing Sustainable growth histo
Slide 21: Five Year Summary: Expenses
Financials Five Year Summary: Expenses For personal use only Expanding Jaws: Revenue growth faster than Expense growth Improving Cost To Income (CTI) Ratio: from 70% in 2013 to 60% in 2017 Carefully managed expenses to support growth in infrastructure and revenue generating functions Sustain
Slide 22: Five Year Summary: Dividends
Financials Five Year Summary: Dividends For personal use only Dividend Growth: 24% annualised Board maintains 60%-70% pay-out ratio based on NPAT FY17 full year dividend 16.00 cents Final dividend 8.90 cents per share held on 30/08/17 and payable on 13/09/17 Sustainable growth history cons
Slide 23: Five Year Summary: Balance Sheet
Financials Five Year Summary: Balance Sheet For personal use only Stable Cash position in excess of regulatory requirement of $5.1 mil to support growth initiatives Significant reinvestments into business: $15.8 mil client acquisitions through aligned planners Net Assets Growth 11% annualised
Slide 24: Net Fund In-Flows in Platform
Financials Net Fund In-Flows in Platform For personal use only Net In- Flows of $171 mil during FY17 Both Salaried and Franchised networks contributing to the Inflows Combination of organic flows from active referrals and inorganic flows from strategic acquisitions 24
Slide 25: FUMAA Growth
Financials Funds Under Management, Administration and Advice (FUMAA) Growth For personal use only Consistent FUMAA growth contributed by strong organic and inorganic inflows and market improvements $97 mil acquisition by Fiducian for Franchisees and salaried offices: strengthens retention Incr
Slide 26: Five Year: FID vs All Ord
Financials Five Year: FID vs All Ord For personal use only Since Jun 12, FID has outperformed All Ord by 236% (including dividend) 26
Slide 27: Tasmania Office Locations
Tasmania = © Office Locations LL, Devonport Hobart Launceston
Slide 28: Fiducian Group FY 2017 Agenda
Fiducian Group FY 2017 For personal use only • FY 2017 Highlights • Business Overview • Financials •Growth Strategy and Business Outlook • Contacts 28
Slide 29: Growth Strategy
Growth Strategy and Business Outlook Growth Strategy For personal use only Funds Leverage of successful Manage-The-Manager Management model and expand in new markets where profitable Distribute SMA capabilities and offer Badged solutions Administration to IFA market Financial Continue to attract hig
Slide 30: Business Outlook – Revenue Streams
Business Outlook – Growth Strategy and Business Outlook 3 Revenue Streams For personal use only Revenue Growth is a function of volume of FUMAA Example: Financial Funds Platform Planning Under FUMAA 3 Admin Advice Management Growth Revenue increase increases Increases $300 mil Streams $100 mil $100
Slide 31: Projecting the Potential: Conceptual Representation
Growth Strategy and Business Outlook Projecting the Potential: Conceptual Representation For personal use only The following is a concept extrapolation* of how increasing scale lifts EBITDA at an accelerating rate above a relatively fixed cost base: Funds under Management, Administration and Advice
Slide 32: Outlook
Growth Strategy and Business Outlook Outlook For personal use only • Grow Funds Under Advice organically and through strategic acquisitions of financial planning businesses • Expand platform administration services to IFAs and capture market share where value accretive • Build SMSF Admin and Account
Slide 33: For personal use only
For personal use only
Slide 34: Fiducian Group FY 2017 Agenda
Fiducian Group FY 2017 For personal use only • FY 2017 Highlights • Business Overview • Financials • Growth Strategy and Business Outlook •Contacts 34
Slide 35: Australian Capital Territory Office Location
Australian Capital Territory Office Location Canberra
Slide 36: Contacts
Contacts For personal use only Investor Relations: Rahul Guha 02 8298 4600 rahulguha@fiducian.com.au Media Relations: Julie Hargrave 02 8298 4621 juliehargrave@fiducian.com.au 36
Slide 37: South Australia Office Location
South Australia Office Location - Adelaide City Central [28 r
Slide 38: Important Notice and Disclosure
Important Notice and Disclosure For personal use only The material and information contained in this presentation is general background information about Fiducian Group Limited’s (Fiducian) activities. This information is an incomplete summary and should be read in conjunction with previous ASX anno