Prime Financial Group Limited · ASX:PFG
Prime Financial — FY2018 Earnings Presentation
19 slides from Prime Financial's earnings presentation, Aug 29, 2018
Slide 1: Full Year 2018 Results Presentation
For personal use only Prime Financial Group Ltd (ASX: PFG) – Full Year 2018 Results Presentation 29 August 2018 Click here to access accompanying Full Year 2018 Results Presentation podcast
Slide 2: Key Points
Key Points For personal use only 1. Exposure to favourable industry thematics in Wealth Management, SMSF and Business Advisory 2. Continued Revenue Growth and Scale 3. Strategic repositioning of Prime substantially complete in FY18 4. Invested in infrastructure and services to allow acceleration of
Slide 3: Who We Are
Who We Are For personal use only • Integrated Accounting & Business Advisory, Wealth Management and Capital Services with $1.1 billion of Services funds under management (FUM) • Advise investors, business owners and entrepreneurs on realising their aspirations, protecting and growing Purpose their w
Slide 4: What We Do – Revenue by Service
What We Do – Revenue by Service For personal use only Prime operates a direct client advice model under Wealth Management Accounting & Business the Prime brand and a Joint Venture model with Advisory plus Capital accounting firms (co-branded) • Financial & Retirement Planning • 80% of total revenue
Slide 5: FY18 Highlights
FY18 Highlights For personal use only • Revenue growth +11% in FY18 Continued Growth • Scaling through acquisitions and organic growth • Three core hubs now established in Melbourne, Sydney and Brisbane Build Platform to Scale • Only core capability not available across key hubs is Accounting & Busi
Slide 6: FY18 Performance Summary
FY18 Performance Summary For personal use only Group Revenue ($m) Underlying EBITDA (Members) ($m) Underlying NPAT (Members) ($m) 19.1 21.3 4.6 3.8 2.9 2.2 0.9 ** +11% 0.9 ** -19% 0.6 ** -25% vs FY17 vs FY17 vs FY17 18.2 21.3 3.8 3.7 2.3 2.2 +17% +1% -4% vs FY17 vs FY17 FY17 FY18 vs FY17 FY17 FY18 F
Slide 7: FY18 Revenue
FY18 Revenue For personal use only • Strategy changed in FY17 to divest minority accounting firm investments and focus on wholly owned How are we growing? businesses in Melbourne, Sydney and Brisbane • Accounting & Business Advisory plus Capital revenue increased from $0 in FY16 to $9.8 million in F
Slide 8: Typical Clients
Typical Clients For personal use only Accounting • Start-ups, Scale-ups and Businesses with $1 million - $30 million revenue & Business Advisory • Australian and Overseas companies seeking to access Australian Government Grants • Mass affluent with $100k - $1 million of investible assets Wealth Mana
Slide 9: FY18 Underlying EBITDA & EPS (Members)
FY18 Underlying EBITDA & EPS (Members) For personal use only Analysis of Underlying EBITDA – FY17 v FY18 Analysis of Underlying EPS – FY17 v FY18 -0.9 Underlying EPS (Cents per Share) 2.00 -0.37 -0.4 -0.4 +0.5 -0.07 AUD million -0.16 +0.21 -0.02 -0.11 4.6 1.00 3.7 3.8 1.81 1.44 1.29 0.00 FY17 FY17 F
Slide 10: FY18 Balance Sheet & Cash flow
FY18 Balance Sheet & Cash flow For personal use only • Group net debt at 30 June 2018 was $0.3 million lower than 30 June 2017 • Operating cash flow for FY18 was $2.7 million Balance Sheet Cash flow Group (AUD million) At 30 Jun At 30 Jun Group (AUD million) FY18 FY17 2018 2017 * Reported Reported C
Slide 11: Strategic Plan
Strategic Plan Purpose Advise investors, business owners and entrepreneurs on realising their aspirations, protecting and growing their wealth and accessing capital Goal People To be the leading integrated advice firm of the future For personal use only How Helping our clients and business partners
Slide 12: Acquisition & Divestment Strategy
Acquisition & Divestment Strategy For personal use only Strategy • Acquire operating businesses in three core service lines that Prime can consolidate, integrate, improve and grow • Prior to FY17, Prime’s strategy was to acquire minority equity interests in accounting firms, these have substantially
Slide 13: Core Hub Strategy – Melbourne, Sydney & Brisbane
Core Hub Strategy – Melbourne, Sydney & Brisbane For personal use only • Wealth Management Division HUB FY17 FY18 FY19 Satellite Office - Cairns MPR acquisition (100%) MEL • Wealth Management Satellite Office - Perth Accounting & Business SYD Key acquisition focus Advisory • Accounting & Altezza acq
Slide 14: Industry Landscape & Opportunities
Industry Landscape & Opportunities For personal use only Key Themes Opportunities • Continue to position Prime as the leading client • Royal Commission focused integrated advice firm of the future • New advisor educational requirements • Progressively leverage investment in • Shift away from non-ban
Slide 15: Summary
Summary For personal use only 1. Exposure to favourable industry thematics in Wealth Management, SMSF and Business Advisory 2. Continued Revenue Growth and Scale 3. Strategic repositioning of Prime substantially complete in FY18 4. Invested in infrastructure and services to allow acceleration of bus
Slide 16: Contact
Contact For personal use only Simon Madder Simon Munday Managing Director/CEO CFO/Company Secretary Prime Financial Group Ltd Prime Financial Group Ltd (T) (03) 9827 6999 (T) (03) 9827 6999 (E) simonm@primefinancial.com.au (E) simon.munday@primefinancial.com.au (W) www.primefinancial.com.au (W) www.
Slide 17: Appendix - Reconciliations of Reported NPAT to Underlying EBITDA and NPAT
Appendix 1 - Reconciliations of Reported NPAT to Underlying EBITDA and Reported NPAT Attributable to Members to Underlying NPAT Attributable to Members For personal use only EBITDA reconciliation: NPAT attributable to members reconciliation: $000 AUD FY18 FY17 $000 AUD FY18 FY17 Profit after tax fro
Slide 18: Appendix - Experienced Board
Appendix 2 - Experienced Board For personal use only Simon Madder Paul Cowan Peter Madder Tim Carroll Chief Executive Officer & Independent Non-Executive Executive Director Independent Non-Executive Managing Director Chairman Director Co-founder, Managing Director & Executive Director River Capital
Slide 19: Important Notice and Disclaimer
Important Notice and Disclaimer This investor presentation (Presentation) has been prepared by Prime Financial Group Limited (PFG). For personal use only Summary Information This Presentation contains summary information about PFG. The information in this Presentation is general background informati