Bell Financial Group Limited · ASX:BFG
Bell Financial — Bell Potter Emerging Leaders Conference 2020
21 slides from Bell Financial's conference presentation, Sep 16, 2020
Slide 1: Bell Potter Emerging Leaders Conference 2020
16 September 2020 ASX Market Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 BELL POTTER EMERGING LEADERS CONFERENCE 2020 Attached is the presentation that Bell Financial Group Executive Chairman, Alastair Provan will give at 8:30am today at the Bell Potter Emerging Leaders Confere
Slide 2: Bell Financial Group
BELL FINANCIAL GROUP (ASX:BFG) An Australian owned provider of stockbroking, investment and financial advisory services to private, institutional and corporate clients September 2020 BELL FINANCIAL GROUP
Slide 3: Contents
CONTENTS 1 Overview 3 2 Corporate Structure & Businesses 5 3 Strategy 13 4 Financial Summary 16 5 Market Update 18 BELL FINANCIAL GROUP
Slide 4: Overview
OVERVIEW
Slide 5: 14 offices across Australia plus offices overseas
14 offices across Australia plus offices in London, New York, Hong Kong and Kuala Lumpur 730 staff including 325 Financial Advisers
Slide 6: Corporate Structure & Businesses
CORPORATE STRUCTURE & BUSINESSES
Slide 7: Business divisions and services
─ Retail Equities Institutional & Financial Planners online ─ Margin Lending share trading ─ Institutional Equities ─ Cash Accounts Private Client online share trading ─ International Equities ─ Structured Loan Products ─ 24-hour Futures & FX Desk White label online share trading ─ Equity Capital Ma
Slide 8: Management
MANAGEMENT Professional board with deep industry understanding. Adeliberately flat management structure that is experienced, stable and has a substantial shareholding in the business BELL FINANCIAL GROUP BOARD Alastair Provan Craig Coleman Graham Cubbin Brian Wilson AO Christine Feldmanis Executive
Slide 9: Brokerage, ECM and PAS & Super Solutions revenue
BROKERAGE REVENUE ECM REVENUE ($M) PAS & SUPER SOLUTIONS (RETAIL & WHOLESALE) ($M) REVENUE ($M) 100 92.6 94.6 20 18.9 91.6 90.0 83.0 85.8 17.5 90 18 80.0 16.1 76.9 80 71.6 16 70.0 66.4 13.6 70 62.8 14 12.3 12.7 12.1 60 60.0 54.6 12 46.2 48.1 10 50 50.0 41.8 39.9 40 8 40.0 30 6 30.0 20 4 10 20.0 2 0
Slide 10: Third party clearing and online trading growth
Consistent growth in revenue, profit, sponsored holdings and client accounts since inception. ─ $15.9 million revenue YTD August 2020, up 31% on p.c.p. ─ General Clearing Participant. BPS to be cornerstone client. ─ $4.1 million profit before tax YTD August 2020, up 78% on the p.c.p. ─ Final stage o
Slide 11: Bell Potter Capital loan and cash book
─ Established in 2006 ─ 26% average LVR across the loan book ─ Only non-bank margin lender in the Australian marketplace ─ Successfully onboarded Equity Lever and Geared Equity Investments ─ Consistent revenue and earnings growth ─ $9.9 million net revenue YTD August 2020, up 32% on the p.c.p ─ $410
Slide 12: Funds under advice, deposits, loans and superannuation assets
PAS ($B) FUNDS UNDER ADVICE ($B)* CHESS SPONSORED HOLDINGS ($B) ↓ 7% on December 2019 ↓ 7% on December 2019 ↓ 7% on December 2019 4 70 60 3.4 52.1 3.5 3.1 58.4 48.5 60 54.4 50 3 2.7 2.8 42.2 41.6 50 47.2 46.8 2.3 22.0 2.5 40 34.4 2 38.8 21.3 40 33.1 29.3 15.7 16.7 2 30 10.8 30 8.0 1.5 20 1 20 26.5 3
Slide 13: Strategy
STRATEGY
Slide 14: Growth through broking and investment in technology
We have a simple strategy. Growth through our traditional full service broking businesses augmented by investment in leading edge technology through our ongoing commitment to the continuous development of our proprietary systems and platforms and suite of products and services. • FUSION – our inhous
Slide 15: Consistent growth in revenue, NPAT and EPS
Consistent growth in Margins, ROE and Dividends over an extended period supported by a solid cash backed Balance Sheet with no core operating debt REVENUE ($M) NPAT ($M) EARNINGS PER SHARE (CENTS) 300 12 35 32.4 CAGR +8.6% 254 CAGR +12% 10.2 250 30 CAGR +17.1% 10 220 206 8.5 24.4 7.8 200 184 25 23.3
Slide 16: EBITDA margin, ROE, dividends and balance sheet
EBITDA MARGIN RETURN ON EQUITY DIVIDENDS PAID ($M) AND GROSS BALANCE SHEET DIVIDEND YIELD (%) As at 31 August 2020 28% $30 16% 20% 19.6% 14.3% 25.7% $M 18.8% 26% 14% 19% $25 CAGR +16.7% CAGR +17% 11.2% 11.8% Cash 65.5 24% 18% 10.8% 12% 22.0% 10.1% 22% $20 Net assets 207.4 16.9% 10% 17% CAGR +21.62%
Slide 17: Investment in Technology & Platforms and Products & Services
Investment in Technology & Platforms and Products & Services (TPPS) is a significant component of our ongoing business development. Increased leverage to technology is producing better outcomes for our staff and clients resulting in material growth in revenues and profit across the Group. ─ Approxim
Slide 18: Market Update
MARKET UPDATE
Slide 19: Projected revenue and profit for nine months to September
Projected revenue for the 9 months to 30 September is $202 million, 12% ahead of the p.c.p, ($181 million). Projected profit before tax for the 9 months to 30 September is $39 million, 32% ahead of the p.c.p ($29.5 million). All business units are profitable. We have a number of significant
Slide 20: BFG share price and valuation metrics
BFG SHARE PRICE JUNE 2015 – JUNE 2020 Market capitalisation $364m EV/EBITDA multiple1 5.8x Dividend yield (gross) 2 10.7% Price earnings ratio (PE) 3 11.1x 1 based on 12 month EBITDA to 30 June 2020, and BFG share price at 8 September 2020 2 based on final 2019 and interim 2020 dividends paid, divid
Slide 21: Important Disclaimer
Important Disclaimer The material contained in this presentation has been prepared by Bell Financial Group Limited ABN 59 083 194 763 (Bell Financial Group] and is general background information about the businesses, operations and activities of Bell Financial Group and its subsidiaries, current as
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