Slide 1: FY22 Results Presentation and Strategy Update
FY22 RESULTS PRESENTATION AND STRATEGY UPDATE John Shuttleworth, CEO Brendon Glass, CFO August 2022
Slide 2: Disclaimer
Disclaimer 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 2022 and the Appendix 4E lodged with the Australian Securities Exchange by Centrepoint Alliance Limited (ASX:CAF) on 24 Augu
Slide 3: Agenda
AGENDA BUSINESS RESULTS AND STRATEGY John Shuttleworth, CEO FINANCIAL RESULTS Brendon Glass, CFO 3
Slide 4: Business Results
BUSINESS RESULTS John Shuttleworth, CEO
Slide 5: Snapshot of core earnings
Snapshot of core earnings KEY MESSAGES FY 2022 $228.5m $7.2m • Transformational year Gross revenue EBITDA Excludes legacy claims, • Strong earnings and profit growth LTI and one-off costs • Efficient integration of ClearView Advice +64% on FY21 +112% on FY21 • Delivered revenue growth and cost syner
Slide 6: ClearView Advice acquisition has transformed Centrepoint Alliance
ClearView Advice acquisition has transformed Centrepoint Alliance 517 356 +45% Licensed advisers KEY MESSAGES 151 192 +27% • Completed 1 November 2021 Self-licensed firms • Delivering scale and efficiency 99 104 • Organisation structure implemented day 1 +5% Headcount • Strengthened leadership team
Slide 7: The industry has shifted from bank-owned and institutional to mid tier and self-licensed
The industry has shifted from bank-owned and institutional to mid tier and self-licensed 2017 PRE ROYAL COMMISSION 2022 CURRENT STATE 25,249 advisers 16,398 advisers Big 4 banks 5,712 8,851 advisers have left the CBA 1,784 industry NAB 1,653 ANZ 1,164 Market 35% Westpac 1,111 Big 4 banks 350 Banks +
Slide 8: Centrepoint is building scale
Centrepoint is building scale LICENSEE RANKING Number of authorised representatives Rank Licensee group No of ARs Net growth Note ASIC data differs from internal #1 INSIGNIA (IOOF) 1,116 -320 data due to timing #2 AMP 1,043 -248 CAF has performed well relative to #3 Wealth Today 526 -112 peers – onl
Slide 9: Centrepoint Alliance has retained and attracted the best advisers
Centrepoint Alliance has retained and attracted the best advisers 517 KEY MESSAGES • Composition of advisers under our 325 licence has profoundly changed Advisers on • 88% of advisers on our legacy AFSL 483 contemporary 483 have exited licences • Those that remain are high quality 288 firms • New ad
Slide 10: Strong service levels maintained post acquisition
Strong service levels maintained post acquisition SERVICE LEVELS July 2021 to June 2022 Number of Average days Service levels were maintained enquiries to resolve despite significant uplift in enquiries driven by the growth in Advice revenue 11,298 1.42 adviser numbers Education 3,938 3.28 31,500 en
Slide 11: Strategic Focus
STRATEGIC FOCUS John Shuttleworth, CEO
Slide 12: A simple way to think about our strategy
A simple way to think about our strategy Building scale Develop Differentiate and capability revenue through in our core licensee adjacencies quality of advisers, business that enhance our service quality offer and improve and technology margin
Slide 13: Centrepoint's adviser network drives an estimated ~$780 million+ in revenue
Centrepoint’s adviser network drives an estimated ~$780 million+ in revenue across 4 areas in the value chain • 517 licensed advisers Adviser revenue • Advice fee $3,000 $390M • 130,000 x $3,000 = $390M • 788 self-licensed • ~ 1,300 advisers Platform revenue • $45B under advice $135M • Platform reve
Slide 14: Centrepoint has a strong platform for future growth
Centrepoint has a strong platform for future growth Strong foundation to support future growth Sustainable financials Right advisers Scale Diversified revenue Team that Profitable Quality 517 ARs + Asset Management can execute Strong balance sheet Strong community 192 Self-Licensed Firms Lending Org
Slide 15: Centrepoint has a strong platform for future growth
Centrepoint has a strong platform for future growth 1 2 3 4 5 Objective Grow # licensed Scale self- Grow salaried Grow lending Build portfolio advisers licensed service channel solutions / solutions broking business Baseline 517 authorised 192 self-licensed firms 7 advisers $3.2B loan book $370M man
Slide 16: Disciplined M&A selection criteria
When considering M&A opportunities to protect earnings and deliver synergies we apply disciplined selection criteria Quality Comparable Realisable Claims Cultural of advisers/ fees synergies risk alignment firm Sustainable earnings Harmonise fees Duplication of costs Historical claims and Fit with c
Slide 17: Lending as a Service
LENDING AS A SERVICE John Shuttleworth, CEO
Slide 18: Infrastructure, distribution and strategy to grow the lending business
Centrepoint has the infrastructure, distribution, capability and the strategy to grow the lending business Boutique aggregator Lending as a Service (LaaS) has been designed to with infrastructure to help financial advice firms build a compliant lending provide lending business services Our business
Slide 19: LaaS makes sense for Centrepoint: network potential and end customers
LaaS makes sense for Centrepoint because it has huge network potential and end customers benefit 1,300 advisers with ~100 clients 130,000 advised customers Home ownership with mortgage 35%1 ~45,500 lending opportunities 17.5% refinance per year 2 $688,000 average loan size 3 $5.5B estimated loans re
Slide 20: Financial Results
FINANCIAL RESULTS Brendon Glass, CFO
Slide 21: Financial results summary
Successful integration of ClearView Advice acquisition resulting in strong second half results Financial results summary FY20 FY21 H1 FY22 H2 FY22 FY221 • Gross revenue up $89.3m (+64% PCP) driven by For the period ($m) ($m) ($m) ($m) ($m) $23.5m organic licensed adviser growth and $65.8m Gross Reve
Slide 22: Gross Profit and expense analysis
Gross Profit increase with ClearView Advice acquisition and diligent expense management Gross Profit and expense analysis Gross Profit movement ($m) Key revenue movements (PCP) : $6.8 $31.2 • Rebates down $1.6m due to grandfathered rebates that $28.1 $1.6 $0.8 $1.9 have runoff, with platform rebates
Slide 23: Balance Sheet
Robust balance sheet position to drive Centrepoint’s future growth strategies BALANCE SHEET FY21 FY22 • Cash of $14.7m up $3.6m on Jun 2021 primarily due to cash For the period ended from operations ($m) ($m) • Loans receivable reduced due to $1.1m Neos Life Cash & Term Deposits 11.1 14.7 repayment
Slide 24: Cash movement
Strong cash performance generating $6.4m in cash from operations Cash movement • Cash at 30 Jun 2022 at 14.7m • FY22 Cash from operations $6.4m • Claims paid out $0.5m • Neos Life divestment $1.1m • $3.2m cash acquired as part of ClearView Advice acquisition, offsetting $3.2m cash consideration paid
Slide 25: 2023 Outlook
2023 OUTLOOK John Shuttleworth
Slide 26: We remain very positive about the business outlook
We remain very positive about the business outlook Good momentum with strong second half run rate July 2022 on track to budget Pipeline of acquisition opportunities – discussions continuing Well advanced with strategic initiatives to drive organic growth – Lending / Managed Accounts Regulatory chang
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