Slide 1: Countplus Limited Annual General Meeting
For personal use only Countplus Limited Annual General Meeting 10 November 2016 Contact: Barry Lambert, Chairman barry.lambert@countplus.com.au or (02) 8488 4500 Phil Aris, Managing Director & CEO phil.aris@countplus.com.au or (02) 8488 4500
Slide 2: Chairman's Address
For personal use only Chairman’s Address Barry Lambert
Slide 3: Executive Directors
Executive Directors For personal use only Philip Rix Phillip Aris Executive Director & Managing Director & CEO Bentleys WA Principal 3
Slide 4: Non-Executive Directors
Non-Executive Director For personal use only Graeme Fowler Alison Ledger Matthew Rowe Independent Non-Executive Director Independent Non-Executive Director Non-Executive Director Audit & Risk Committee Chair 4
Slide 5: Company Secretarial, Auditors & Lawyers
Company Secretarial For personal use only Auditors & Lawyers Grant Thornton Conor Farley Addisons Lawyers Jeff Mansfield Arlette Jubian Li Jean Chew Company Secretary 5
Slide 6: Financial Results Highlights
Financial Results Highlights For personal use only Financials Record Net Profit before Tax: $21.8 million ( 2 67%) Record Consolidated Net Profit after Tax: 3 $14 million ( 41%) Earnings per Share: 12.13 cents ( 35%) CUP Dividends 8 cents (fully franked) declared and paid for 2015/16 First quarterly
Slide 7: AGM Resolutions
For personal use only AGM Resolutions Barry Lambert
Slide 8: Resolution 1: Receive Annual Financial Report
Resolution 1: To receive and consider the annual financial report of the Company and its controlled entities and the reports of the Directors and of the auditors for the year ended 30 June 2016 These Statements & Reports are incorporated in the For personal use only Directors Report. It is not n
Slide 9: Resolution 2: Adopt Remuneration Report
Resolution 2: Adopt Remuneration Report This Report is incorporated in the Directors Report of For personal use only the Annual Report. The vote on this resolution is advisory only and does not bind the Directors of the Company. % of all Vote Type Voted % securities For 3,862,674 57.52 3.38 Agai
Slide 10: Resolution 3: Long Term Incentive for CEO
Resolution 3: Long Term Incentive (LTI) for the Chief Executive Officer and Managing Director For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That, for the purposes of ASX Listing Rule 10.14 and sections 200B and 200E of the Corpora
Slide 11: Resolution 3: Long Term Incentive for CEO (Votes)
Resolution 3: Long Term Incentive (LTI) for the Chief Executive Officer and Managing Director For personal use only % of all Vote Type Voted % securities For 4,408,933 60.35 3.86 Against 2,397,404 32.81 2.10 Open-Usable 499,683 6.84 0.44 Open Cond 0 0 0 Open Unusable 0 n/a 0 Abstain 118,283 n/a 0.10
Slide 12: Resolution 4: Election of Director
Resolution 4: Election of Director For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Alison Ledger (who, having been appointed by the Board as a Director since the last Annual General Meeting, retires in accordance with the Compa
Slide 13: Resolution 5: Election of Director
Resolution 5: Election of Director For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Matthew Rowe (who, having been appointed by the Board as a Director since the last Annual General Meeting, retires in accordance with the Compan
Slide 14: Resolution 6: Re-election of Director
Resolution 6: Re-election of Director For personal use only To consider and, if thought fit, to pass the following resolution as an ordinary resolution: “That Graeme Fowler (who retires by rotation in accordance with the Constitution of the Company and, being eligible, offers himself for re-election
Slide 15: Resolution 7: Renewal of Proportional Takeover Provisions
Resolution 7: Renewal of Proportional Takeover Provisions in Constitution For personal use only To consider and, if thought fit, to pass the following resolution as a special resolution: “That, pursuant to section 648G of the Corporations Act 2001 (Cth), the proportional takeover approval provisions
Slide 16: Chief Executive Officer Address
For personal use only Chief Executive Officer Address Phillip Aris
Slide 17: Results Overview
Results Overview Core investment in Class Limited has been an outstanding investment For personal use only following its successful IPO Continued challenging conditions for accounting division Impairments in two of our accounting businesses Financial planning continues to grow with planning
Slide 18: Countplus Member Firms
Countplus Member Firms For personal use only 18
Slide 19: Group Performance
Group Performance For personal use only 2016 2016 % Change Accounting revenue $ ‘000 % of Total 66.2% of net Revenue member revenue Revenue: Financial planning Accounting 58,022 66.2% -0.4% revenue up 1.3% Financial Planning 20,340 23.2% 1.3% Property & related services revenue Property Services 4,7
Slide 20: Group Performance
Group Performance 2016 % Change For personal use only $ ‘000 Total Net Revenue 87,617 (0.9%) Non-cash fair value gain relates Non-cash Fair Value gain 16,294 N/A to Class Limited shares which listed in December 2015. The Other income 2,396 (5.5%) shares have been valued at the Expenses: closing pric
Slide 21: Group Performance
Group Performance For personal use only 2016 Largest component of non- % Change $ ‘000 cash amortisation expense relates to acquired client relationships arising on Interest Expense (net) (1,293) 0.9% acquisitions. Reducing over time. Amortisation Expense (2,673) (4.7%) Net Profit before Tax 21,811
Slide 22: Balance Sheet
Balance Sheet 2016 2015 % Change For personal use only $ ‘000 $ ‘000 Current Assets 29,061 33,766 (13.9%) Interest bearing loans reduced by $767K (3%) Current Liabilities 19,293 18,892 2.1% due to settlement of Current Ratio 1.51 1.79 commercial property sale and funds from the Non-Current Assets 90
Slide 23: Progressive Restructuring
Progressive Restructuring As previously advised, we are restructuring our business For personal use only model over a 3 year period May negatively impact earnings and EPS in short term Committed to a better and more enduring structure which aligns the interest of Principals & Shareholders Re
Slide 24: Recent Acquisitions / Investments
Recent Acquisitions / Investments Date Acquirer Purchase Acquisition / “Tuck-In” For personal use only Cost Aug Hunter Financial $2.75m Financial planning firm in Newcastle, NSW. 2015 40% interest acquired by ADVICE389. Aug Australian $0.5m Specialist SMSF administrator in West Perth, WA. 2015 Super
Slide 25: Benefits of Joining Countplus
Benefits of Joining Countplus What are the benefits to accountants and other For personal use only financial services businesses in being a part of the Countplus network? Learning from Member Firms & gaining cross referrals; cash buyer and/or diversification; and growing business value at a listed
Slide 26: Class Limited
Class Limited Technology business servicing the SMSF sector with 124,471 billable For personal use only SMSF’s on its administration platform First investment in Class made in October 2013 26
Slide 27: Growth Acquisition Strategy
Growth Acquisition Strategy Organic growth has been disappointing but remains our priority For personal use only and best prospect of delivering strong EPS growth Funding of acquisitions will predominately be funded from profits & borrowings CUP acquisitions will be: • Low risk tuck-ins: 100%
Slide 28: Direct Equity Plan (DEP)
Direct Equity Plan (DEP) Direct equity plan previously announced to the market For personal use only Opportunity to acquire equity directly in business Countplus to retain controlling share Designed to: • Promote retention of key employees • Facilitate succession for Principals Provide dir
Slide 29: Outlook
Outlook For personal use only Our success will come from: Improved performance by existing investments (our core focus) Selective acquisitions by CUP, BLUE789 & ADVICE389 which will initially absorb our increased earnings and consume more debt (offset in part by our progressive DEP initiative) 2
Slide 30: Question Time
For personal use only Question Time
Slide 31: Countplus Limited Annual General Meeting
For personal use only Countplus Limited Annual General Meeting 10 November 2016 Contact: Barry Lambert, Chairman barry.lambert@countplus.com.au or (02) 8488 4500 Phil Aris, Managing Director & CEO phil.aris@countplus.com.au or (02) 8488 4500