Prime Financial Group Limited · ASX:PFG
Prime Financial — FY2007 Earnings Presentation
25 slides from Prime Financial's earnings presentation, Aug 15, 2007
Slide 1: 2007 Full Year Results
ACN 009 487 674 Level 16, 90 Collins Street Melbourne VIC 3000 15 August 2007 Tel 03 9827 6999 Company Announcements Office Fax 03 9827 9100 For personal use only Australian Stock Exchange Limited www.primefinancial.com.au 2007 FULL YEAR RESULTS The Directors’ are pleased to report that Prime Financ
Slide 2: Company Overview: Financial Results 2007
Company Overview For personal use only Financial Results 2007 financial advice funds management corporate advisory finance
Slide 3: Prime Overview
Prime Overview For personal use only Prime Financial Group Ltd (PFG) - market cap $140.0m (approx) Merger of AVFM Ltd & Prime Development Fund Ltd (1/1/07) created PFG ‘A national diversified financial services & advisory group’, operating across » Financial Advice (Financial Planning & Direct
Slide 4: Prime Overview
Prime Overview For personal use only Prime has: » Ownership in 43 financial services & advisory businesses (nationally) » Start-up with access to distribution & more mature businesses with cross-referral opportunities » 40+ licensed advisers & 195 staff across the group » Existing client base of +
Slide 5: Locations
Locations For personal use only Prime: providing ‘integrated financial advice’, products and services to meet the needs of Australians planning for the future Prime’s operations extend to five states and capital cities throughout Australia including Melbourne, Sydney, Brisbane, Perth and Hobart
Slide 6: Integrated Financial Advice
Integrated Financial Advice For personal use only
Slide 7: Record Profit & Sustained Strong Growth
Record Profit & Sustained Strong Growth For personal use only Prime’s performance has exceeded expectations with a 169% increase in net profit after tax from the previous year up to $5,118,484 from $1,904,265
Slide 8: Financial Information
Financial Information For personal use only Financials (historical = 2005, 2006 & 2007) 2005 2006 2007 % Increase Earnings before interest & tax (EBIT) ($M) 0.60 2.51 7.49 199% Net profit after tax ($M) 0.57 1.90 5.12 169% Dividend paid & proposed ($M) 0.39 1.27 3.11 145% Basic earnings (cents per s
Slide 9: 2007 Financial Information
2007 Financial Information For personal use only Net Profit After Tax Basic Earnings Per Share Dividend Per Share ($M) (cents per share) (cents per share)
Slide 10: Record Profit & Sustained Strong Growth
Record Profit & Sustained Strong Growth For personal use only The result has been achieved for a number of reasons, including: Strong organic growth in revenue and fund flow across the main service lines (Financial Advice and Funds Management) along with cost control Legislated superannuation ch
Slide 11: Diversified Revenue Streams
Diversified Revenue Streams For personal use only Prime currently has investments in 43 financial services & advisory businesses nationally with revenue derived primarily from Financial Advice and Funds Management, providing substantial ongoing income streams
Slide 12: Summary Group Chart
Summary Group Chart For personal use only Note: Equity interests in investees vary from 20% to 50% (excluding PDF, which is a wholly owned subsidiary)
Slide 13: Profit by Service Line
Profit by Service Line For personal use only FINANCIAL ADVICE Financial Planning Accounting Funds Corporate Total (inc. Finance) Services Management Advisory ($M) ($M) ($M) ($M) ($M) Total Revenue 21.34 7.57 4.76 0.70 34.37 Total Expenses (inc. head office) (11.32) (5.64) (1.96) (0.46) (19.38) Incom
Slide 14: Revenue by Service Line
Revenue by Service Line For personal use only Financial Planning Accounting Funds Corporate Total Services Management Advisory (inc. Finance) ($M) (%) ($M) (%) ($M) (%) ($M) (%) ($M) (%) New Business Revenue 10.71 50% - - 2.55 54% 0.49 70% 13.75 40% Ongoing Revenue - Financial Planning 10.63 - - - -
Slide 15: Financial Advice
Financial Advice For personal use only Prime’s Financial Advice operations performed strongly during the year and incorporate: Financial Planning Accounting Services Finance Fees for this operation are generated as new business and ongoing income Between 58% - 60% of the Group’s revenue is gen
Slide 16: Financial Advice
Financial Advice For personal use only Prime’s Financial Planning service is the main contributor to the Group’s earnings (64%) Strong growth is expected to continue due to: Ownership in distribution and access to over 42,000 potential clients Referral systems in place to drive strong organic gr
Slide 17: Financial Advice
Financial Advice For personal use only Accounting Prime’s team of accountants and advisers are located in five states throughout Australia Assist with the provision of our ‘integrated financial advice’ model for clients This service provides clients with access to a full range of accounting, t
Slide 18: Effective Distribution Model
Effective Distribution Model For personal use only One of Prime’s key competitive advantages is ownership in both distribution and product providers The ability to cross sell products & services to clients allows Prime to keep a larger percentage of the margin in-house, providing protection against
Slide 19: Funds Management
Funds Management For personal use only Prime’s Funds Management operation, Armytage Private Ltd (APL), focuses on 3 main asset classes, Australian Equities, Private Equity & Listed Property APL provides scope to capitalise on Prime’s distribution Australian Equities Over 90% of the Funds Manag
Slide 20: Corporate Advisory
Corporate Advisory For personal use only Future growth area for Prime New and increased opportunities to flow from the merged Group’s network (28 accounting firms) Access to a number of clients requiring succession, acquisition/growth and divestment opportunities and advice Prime’s Corporate
Slide 21: A Strong Growth Period
A Strong Growth Period For personal use only The last 12 months has been a period of considerable activity for Prime including a merger, acquisitions, new managed fund & service line development and substantial organic growth across core operating activities
Slide 22: Prime Opportunities
Prime Opportunities For personal use only In-house complimentary products & services now available to group clients (no additional overhead) - Funds Management Products - Equities Service - Corporate Advisory Services Significant DIY/SMSF exposure (packaged products & services) combined with new
Slide 23: Points of Difference
Points of Difference For personal use only Prime has ownership in distribution (equity interests in 43 Financial Services & Advisory Businesses) Prime operates throughout the Financial Services Value Chain (protection against margin compression) - AFS licensee, platform provider, fund manager, f
Slide 24: Looking Forward
Looking Forward For personal use only Well positioned for continued organic growth as we embark on the 2008 financial year A Focused Strategy… Prime’s strategy is to continue to establish, grow and invest in businesses within the financial services and advisory sector, firmly aligning the interest
Slide 25: Contact
Contact For personal use only Simon Madder Managing Director / CEO Prime Financial Group Ltd Level 16, 90 Collins Street Melbourne VIC 3000 Level 17, Como Office Tower 644 Chapel Street South Yarra VIC 3141 Tel 03 9827 6999 Fax 03 9827 9100 simonm@primefinancial.com.au