Prime Financial Group Limited · ASX:PFG
Prime Financial — 9th Annual Australian Microcap Investment Conference 2018
22 slides from Prime Financial's conference presentation, Oct 16, 2018
Slide 1: Presentation – 9th Annual Australian Microcap Investment Conference
16 October 2018 Prime Financial Group Ltd For personal use only ACN 009 487 674 Company Announcements Office Level 17, Como Office Tower Australian Securities Exchange Limited 644 Chapel Street PO Box 6105 South Yarra VIC 3141 Tel 03 9827 6999 Fax 03 9827 9100 enquiries@primefinancial.com.au www.pri
Slide 2: Australian Microcap Investment Conference 17 October 2018
For personal use only Prime Financial Group Ltd (ASX: PFG) – Australian Microcap Investment Conference 17 October 2018
Slide 3: Who We Are
Who We Are For personal use only • Integrated Accounting & Business Advisory, Wealth Management and Capital Services with Services $1.1 billion of funds under management (FUM) • Advise investors, business owners and entrepreneurs on realising their aspirations, Purpose protecting and growing their w
Slide 4: Key Points
Key Points For personal use only 1. Exposure to favourable industry thematics in Wealth Management, SMSF and Business Advisory 2. Continued Revenue Growth and Scale 3. Strategic repositioning of Prime substantially complete in FY18 4. Invested in infrastructure and services to allow acceleration of
Slide 5: What We Do – Revenue by Service
What We Do – Revenue by Service For personal use only Prime operates a direct client advice model under the Wealth Management Accounting & Business Prime brand and a Joint Venture model with accounting Advisory plus Capital firms (co-branded) • Financial & Retirement Planning • 80% of total revenue
Slide 6: FY18 Highlights
FY18 Highlights For personal use only • Revenue growth +11% in FY18 Continued Growth • Scaling through acquisitions and organic growth • Three core hubs now established in Melbourne, Sydney and Brisbane Build Platform to Scale • Only core capability not available across key hubs is Accounting & Busi
Slide 7: FY18 Performance Summary
FY18 Performance Summary For personal use only Group Revenue ($m) Underlying EBITDA (Members) ($m) 19.1 21.3 4.6 3.8 0.9** +11% 0.9** -19% vs FY17 vs FY17 18.2 21.3 3.8 3.7 +17% +1% vs FY17 FY17 FY18 (ex impairment**) FY17 FY18 vs FY17 (ex impairment**) Accounting & Business Advisory acquisition Con
Slide 8: FY18 Dividend Summary
FY18 Dividend Summary For personal use only Dividend per share (cents) 0.85 0.90 FY18 dividend at 0.90 cents per share (FY17 0.85 cents per share) • Final dividend = 0.45 cents per share • Record date for determining entitlement to final +6% dividend – 28 September 2018 vs FY17 • Payment date for fi
Slide 9: 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 10: 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 (typically
Slide 11: 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 2.00 Underlying EPS (Cents per Share) -0.37 -0.4 -0.4 +0.5 -0.07 -0.16 AUD million +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 12: FY18 Balance Sheet & Cash flow
For personal use only FY18 Balance Sheet & Cash flow • 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 13: Strategic Plan
Strategic Plan Purpose Advise investors, business owners and entrepreneurs on realising their aspirations, protecting and growing their wealth and accessing capital For personal use only Goal People To be the leading integrated advice firm of the future How Helping our clients and business partners
Slide 14: Acquisition & Divestment Strategy
For personal use only Acquisition & Divestment Strategy 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 15: Core Hub Strategy – Melbourne, Sydney & Brisbane
For personal use only Core Hub Strategy – Melbourne, Sydney & Brisbane Division HUB FY17 FY18 FY19 • Wealth Management Satellite Office - Cairns MPR acquisition (100%) MEL • Wealth Management Satellite Office - Perth Accounting & Business SYD Key acquisition focus Advisory Altezza acquisition (100%)
Slide 16: Industry Landscape & Opportunities
For personal use only Industry Landscape & Opportunities Key Themes Opportunities • Continue to position Prime as the leading • Royal Commission client focused integrated advice firm of the • New advisor educational requirements future • Shift away from non-bank owned • Progressively leverage invest
Slide 17: Competitive Advantage
For personal use only Competitive Advantage • Provider of integrated Accounting and Business Advisory, Wealth Management and Capital services through one connected team • Access to new client growth through 30+ partnerships with accounting firms for Wealth Management & Superannuation, including SMSF
Slide 18: 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 19: Contact
For personal use only Contact 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 20: Appendix - Reconciliations of Reported NPAT to Underlying EBITDA and NPAT
Appendix 1 - Reconciliations of Reported NPAT to Underlying EBITDA and Reported NPAT For personal use only Attributable to Members to Underlying NPAT Attributable to Members EBITDA reconciliation: NPAT attributable to members reconciliation: $000 AUD FY18 FY17 $000 AUD FY18 FY17 Profit after tax fro
Slide 21: Appendix - Experienced Board
For personal use only Appendix 2 - Experienced Board 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 22: Important Notice and Disclaimer
For personal use only Important Notice and Disclaimer This investor presentation (Presentation) has been prepared by Prime Financial Group Limited (PFG). Summary Information This Presentation contains summary information about PFG. The information in this Presentation is general background informati
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