Centuria Capital Group · ASX:CNI
Centuria Capital — Over Fifty Group — FY2009 Earnings Presentation
20 slides from Centuria Capital's earnings presentation, Aug 21, 2009
Slide 1: 2009 Financial Year Results Presentation
2009 Financial Year Results Presentation August 2009 John McBain – Chief Executive Officer & Matthew Coy – Chief Financial Officer
Slide 2: Serving Generations of Australians
Serving Generations of Australians 2
Slide 3: Contents
Contents Key Issues Page 4 Key Financial Indicators Page 5 Underlying Profit Analysis Page 6 Reduction of Corporate Expenses Page 7 Profit Sensitising Page 8 Net Tangible Assets Per Share Page 9 Brand Strength Page 10 Property Funds Management Strategy Page 11 Friendly Society Strategy Page 12 Other
Slide 4: Key Issues
Key Issues • Underlying NPAT $7.189 million after tax (2008: $8.017mill) • 75% trend increase in underlying NPAT - first half $2.5 mill second half $4.7 mill • Focus Returned to Core Business Units - Property Funds Management - Friendly Society Management • Restructuring initiatives now paying off -
Slide 5: Key Financial Indicators
Key Financial Indicators • Underlying $7.189 million after tax (2008: $8.017million) • Reported net profit ($12.854) million after tax (2008: ($2.707 million)) • Funds under management Friendly Society $0.781 Billion Property $0.878 Billion Reverse mortgages $0.215 Billion Total FUM $1.874 Billion (
Slide 6: Underlying Profit Analysis (excl. Benefit Funds)
Underlying Profit Analysis (excl. Benefit Funds) 2009 2008 % Change $000’s $000’s Underlying pre-tax profit by major division Property Funds Management (1) (271) 4,304 Property Investments 774 319 Reverse Mortgages (2) 3,673 (1,456) Friendly Society 10,324 11,709 Commercial Mortgages (3) 450 4,213 C
Slide 7: Reduction of Corporate Expenses
Reduction of Corporate Expenses (major expense reduction for 12 months 30 June 2009 v 30 June 2008) 12 months to 30 12 months to 30 % Change June 2009 June 2008 $000 $000 Staffing 6,888 8,862 (22.3%) Consulting and Professional (1) 2,579 4,259 (39.4%) Corporate Operating Expenses 923 979 (5.7%) Mark
Slide 8: Property Funds Management – Underlying NPAT
Property Funds Management – Underlying NPAT Underlying Note NPAT $m’s 1. 100% history of combined EPG & CFM 3.112m 4.16m 4.19m 1.416m 0 0.3m Year 2005 2006 2007 2008 2009 FY09 NPAT sensitised Underlying Group NPAT for potential ongoing Key 5.0m PFM NPAT Century Funds Management (CFM) Underlying NPAT
Slide 9: Net Tangible Assets Per Share (excl. Benefit Funds)
Net Tangible Assets Per Share (excl. Benefit Funds) 2009 2008 $000’s $000’s Reported Net Tangible Assets (NTA) (1) 25,867 45,472 NTA / Ordinary share 0.43 0.76 Plus: Tested Goodwill at 30 June 2010 Century Funds Management 42,369 42,369 Eclipse Property Group 10,202 4,787 Lifetime planning - 26 Tota
Slide 10: Brand Strength
Brand Strength STRONG BRANDS IN BOTH CORE BUSINESS AREAS Property Funds Management - $878 million F.U.M. Century Funds Management - established 1995 - 26 unlisted trusts, 1800 investors Eclipse Property Group - established 1995 - 11 unlisted trusts, 300 investors - acquired 100% interest in FY09 Fri
Slide 11: Property Funds Management Strategy
Property Funds Management Strategy • Property Funds Management is a core business • Two wholly owned subsidiaries – Century Funds Management and Eclipse Property Group • F.U.M. as at 30.6.09 was $878 million ($920 million as at 30.6.08) • During FY09 no property was acquired and one property was sol
Slide 12: Friendly Society Strategy
Friendly Society Strategy Friendly Society Benefit Funds • Funds under management as at 30 June 2009 were $781 million ($899 – FY08) • Government guarantee of bank deposits increased redemptions during Sept/Oct 08 • Three important areas of focus; - introducing products and services to range of gene
Slide 13: Other Business Units
Other Business Units OFG Insurance • White labelled general and vehicle insurance policy holders now exceed 30,000 • Plans to leverage wide range of OFG products to this client base for 1st time • Profit contribution $470K (pre tax) FY09, budgeted to increase significantly in FY2010 Reverse Mortgage
Slide 14: Achievements
Achievements During FY09 the major focus of the corporate team has been to clean up legacy balance sheet and debt issues as well as focus the group on its core activities and reduce expenditure; • Renew corporate debt facility with NAB and agree reduction programme which will see corporate debt redu
Slide 15: Appendix 1: Profit & Loss for year ended 30 June 2009
Appendix 1: Profit & Loss for year ended 30 June 2009 Statutory accounts Benefit funds Corporate accounts $m $m $m Interest and dividends 53.9 33.3 20.6 Management fees 21.0 - 21.0 Rental income 4.4 - 4.4 Other income (12.0) (14.9) 2.9 Share of profit/ (loss) in associate (2.8) (2.8) Total revenue 6
Slide 16: Appendix 2: Cash flow statement for year ended 30 June 2009
Appendix 2: Cash flow statement for year ended 30 June 2009 Statutory Benefit funds Corporate accounts accounts $m $m $m Cash flows from operating activities Interest received 14.1 13.7 0.4 Dividends received 0.7 - 0.7 Rent and other income received 29.5 19.6 9.9 Management fees received 27.7 2.2 25
Slide 17: Appendix 2: Cash flow statement (cont)
Appendix 2: Cash flow statement for year ended 30 June 2009 (cont) Statutory Benefit funds Corporate accounts accounts $m $m $m Cash flows from financing activities Loans from/(to) related entities 2.4 1.6 0.8 Dividends paid (1.8) - (1.8) Proceeds from borrowings – Reverse mortgages * 18.8 - 18.8 Pr
Slide 18: Appendix 3: Balance sheet as at 30 June 2009
Appendix 3: Balance sheet as at 30 June 2009 Statutory accounts Benefit funds Corporate accounts ($m) ($m) ($m) Assets: Cash and equivalents 28.3 19.6 8.7 Trade and other receivables 5.8 0.8 5.0 Income Tax Receivable 13.5 12.0 1.5 Financial assets at fair value 556.7 509.9 46.8 Other financial asset
Slide 19: Appendix 3: Balance sheet (cont)
Appendix 3: Balance sheet as at 30 June 2009 (cont) Statutory accounts Benefit funds Corporate accounts ($m) ($m) ($m) Liabilities: Trade and other payables 6.1 0.1 6.0 Borrowings 52.7 - 52.7 Borrowings - Reverse Mortgages 202.3 - 202.3 (non recourse to OFG group) * Policyholders funds 594.0 594.0 -
Slide 20: Disclaimer
Disclaimer This document has been issued by Over Fifty Group Limited ABN 22 095 454 336 and contains general information about Over Fifty Group Limited and its related bodies corporate (Over Fifty Group) which is current as at 21 August 2009. The information in this document is in summary form and d