Centrepoint Alliance Limited · ASX:CAF
Centrepoint Alliance — Investor Presentation (April 2014)
19 slides from Centrepoint Alliance's investor presentation, Apr 3, 2014
Slide 1: Capital Raising Investor Presentation
For personal use only Centrepoint Alliance Limited Capital Raising (ASX:CAF) Investor Presentation April 2014 Not for distribution or release in the United States
Slide 2: Disclaimer
Disclaimer For personal use only This presentation is dated 1 April 2014 and has been prepared by Centrepoint Alliance Limited ACN 052 507 507 (Company). The entitlement offer is being made without a prospectus under section 708AA Corporations Act 2001 (Cth) (Corporations Act) (as notionally modifie
Slide 3: The offer
The offer Offer terms: For personal use only a placement of approximately 8 million ordinary shares (“Placement”) to raise approximately $2.6 million gross proceeds through subscriptions from institutional investors and other sophisticated and professional investors; and an underwritten 1 for 3
Slide 4: Vision and strategy
Vision and strategy For personal use only To be a leading and highly respected non institutional financial services business in Australia One Centrepoint team: Delivering consistent, reliable and valued outcomes for clients and customers Having experienced aligned people who want to deliver the
Slide 5: Group structure
Group structure For personal use only Centrepoint Alliance Limited Wealth Funding Division Division Financial Platforms and Funds Premium Mortgage Advice Administration Management Funding Broking Associated Advisory Investment Diversity Ventura Funds Centrepoint Alliance Australian Loan Practices Al
Slide 6: Attractive markets with strong positions
Attractive markets with strong positions Premium Funding Market Wealth Management Market For personal use only $5bn market grew at 5% pa between 2012 and 2013 Australian superannuation market of $1.8 trillion Distributed via General Insurance brokers to SME and expected to grow at an average o
Slide 7: Growth opportunities
Growth opportunities For personal use only Premium Funding Wealth Management Organic Growth Organic Growth - 25% increase in active brokers in 1H14 compared to - Over the next 2 years the industry expects a pcp migration of advisers from institutionally owned to - Continue to expand share of premium
Slide 8: Capital raising – key objectives
Capital raising – key objectives For personal use only Organic growth The Premium Funding business is expected to continue to grow requiring capital. Additional equity investment will give the ability to raise further debt The Wealth Management business is positioning itself for growth requiring
Slide 9: Uses of funds
Uses of funds Item For personal use only Premium Funding growth $5m Wealth Management capability funding $1m AFSL Capital requirements $3m Balance sheet strengthening $4.4m Capital raising costs $0.6m Total $14m Page 9 Capital Raising Investor Presentation
Slide 10: Risks
Risks Centrepoint is subject to legal claims in the ordinary course of its business, with the bulk of recent claims relating to For personal use only legacy advisor issues which occurred between 2004 and 2008. Further amounts may arise beyond existing claims provisions Financial services busines
Slide 11: Claims provisioning
Claims provisioning • The provision for pre July 2010 advice claims is reviewed by external actuaries as at 30 June annually For personal use only • When calculating the provision, sufficient new data is required to update the projections given the high variability of short term data. The Board has
Slide 12: Premium Funding highlights – YTD
Premium Funding highlights – YTD For personal use only Financial (1H14) PBT up 32% to $2.5m Premiums funded up 23% to $254m Volumes growing at circa 3 times market rate 25% increase in active brokers in 1H14 compared to pcp Operating Productivity gains extracted from prior year IT investme
Slide 13: Wealth Management highlights – YTD
Wealth Management highlights – YTD Financial (1H14) Cost reduction program executed delivering $3.6m in For personal use only annualised savings Disposed non-core assets i.e. Malaysian advice business, GPS Operating Successful re-engagement with advisers Claims management process transformed
Slide 14: Experienced management driving transformation
Experienced management driving transformation For personal use only The executive team have a track record in competing in institutionally dominated markets, transforming their markets and creating significant shareholder value John de Zwart, Managing Director 20 years executive experience in Aust
Slide 15: Capital management initiatives
Capital management initiatives The Board recognises the strong support demonstrated by shareholders since the For personal use only GFC and intends to recommence a dividend program Proposed Dividend Program Board has an intention to recommence a dividend program effective FY 2014 Targeting a 2.2
Slide 16: Outlook
Rutlook O For personal use only Continued strong performance and market share growth in Premium Funding Grow revenues off the strength of Wealth Management’s independence and quality service proposition Deliver the next stage of ‘SMART practice’ - a combination of technology and advice deliver
Slide 17: Pro forma financial statements Dec 2013
Pro forma financial statements 31 Dec 2013 31 Dec 2013 Entitlement Pro Forma Historical Placement Offer Historical (unaudited) For personal use only (unaudited) $’000 Cash and cash equivalents 7,518 2,453 10,944 20,915 Receivables & other assets 19,686 19,686 Interest bearing receivables 152,367 152
Slide 18: Unrecognised Tax Assets
Unrecognised Tax Assets For personal use only Franking credits $29.2m - Ability to pay full franked dividends to:* $68.1m Tax value of revenue losses not recognised $15.0m - Potential taxable income that could be absorbed1* $49.9m Tax value of capital losses not recognised $8.7m - Potential pr
Slide 19: Timetable
Timetable For personal use only Activity Date* Announcement of the Entitlement Offer 3 April 2014 Ex-date 7 April 2014 Settlement of the Placement 9 April 2014 Allotment and trading of new shares issued under the Placement 10 April 2014 Record Date for Entitlement Offer (7.00pm (AEST)) 11 April 2014
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