Slide 1: FY21 Annual Results Presentation
Sequoia Financial Group Limited ASX Code: SEQ FY21 Annual Results Presentation 20 August 2021
Slide 2: Disclaimer
Disclaimer This presentation is for general information purposes only and should be read in conjunction with the Annual Report ended 30 June 2021 and the Appendix 4E lodged with the Australian Securities Exchange by Sequoia Financial Group Limited (ASX:SEQ) on 19 August 2021. The information is prov
Slide 3: Key Financial Indicators 2021
Key Financial Indicators 2021 REVENUE EBITDA OPERATING PROFIT Up 37% to Up 138% to Return on Equity $116.4M $11.5M 28.0% Fully Franked NPAT Dividend on pay out NET ASSETS ratio of 28% Up 187% to 5.5M Up 150% to $0.01 Up 23% to $41M 3
Slide 4: Business Overview
Business Overview Four divisions supporting advisers, accountants and third party AFSL holders. • Provides 400+ authorised representatives licensee support services. • FUA in excess of $4 billion covering various asset classes both on a direct basis and via WEALTH managers and platform providers • P
Slide 5: Achievements
Achievements Delivering on stated business plan objectives Increased scale across all four operating divisions All four Operating Strategic acquisitions across Divisions exceeded divisions added improved management’s operating scale to support more profit budget for the FY21 sustainable operating pe
Slide 6: Divisional Results
Divisional Results (Exclude Head Office Shared Costs) • Wealth • Equity Markets Revenue Revenue $55.30M $52.29M Revenue Revenue $40.56M $36.98M EBITDA EBITDA EBITDA EBITDA $6.12M $2.93M $3.62M $5.90M 2020 2021 2020 2021 • Direct • Professional Services Revenue Revenue $2.22M Revenue $7.06M $1.86M Re
Slide 7: FY21 Results Growth Trajectory
FY21 Results Growth Trajectory Operating Profit / EBITDA NPAT $6.0 $5.43M $12.0 $11.5M $5.0 $4.0 $10.0 $3.0 $8.0 $1.93M $2.0 $6.0 $4.8M $1.0 $4.0 $0.0 $1.1M $2.0 -$1.0 $0.0 -$1M 2019 2020 2021 2019 2020 2021 Operating Margin on Revenue Operating Profit Reflective of Cash Flow 10.0% Operating Profit
Slide 8: Half Yearly Momentum continued in 2nd Half
Half Yearly Momentum continued in 2nd Half Business Group wide Expense Scale began to Improvement reduction process continues deliver improving Process commenced to improve profitability operating margins Late Early 2019/ FY20 FY21 2018 2019 2020 Investment made in Significant growth in customer tar
Slide 9: Wealth Management
Wealth Management Our positioning as Licensee of choice has resulted in increased market share. STRONG POSITIONING RESULTS OUTLOOK • Strong revenue growth from • AFSL’s service >400 advisors, including specialist $26.4M in FY19, $40.6M in advisers in aged care, FY20 to $55.3M in FY21. The opportunit
Slide 10: Equity Markets
Equity Markets Equity Markets achieved very strong growth in clearing and execution as Morrison Securities increased market share. STRONG BRANDS HIGH GROWTH OUTLOOK • Morrison Securities invested heavily in people, technology • Morrison revenue increased and systems to build out from $10.2M in 2019,
Slide 11: Sequoia Direct
Sequoia Direct COVID 19 impacted the Direct business’ ability to hold events in the latter half of 2020 STRONG POSITIONING RESULTS OUTLOOK • We increased the size of the Revenues and profitability were • The Finance News Network customer base in the Sequoia disappointing throughout the business cont
Slide 12: Professional Services
Professional Services The Professional Services business slowed with the impact of COVID. We are reinvesting in technology to capture a broader range of business in the next 12 months. GROWTH ACHIEVEMENTS ACQUISITION OPPORTUNITIES • The number of accounting firms in Australia • Acquisition of is app
Slide 13: Operating Environment
Operating Environment The demand for licensed advice is increasing as a Cost of the licensed advice Adviser numbers forecast to result of factors including an process is increasing (PI drop to 13,000 by 2025, down ageing population, COVID, insurance, ASIC Levy, from over 30,000 in 2018. withdrawal f
Slide 14: Future Growth Initiatives
Continue to acquire mid tier licensee service businesses within Continue to acquire customer InterPrac Financial planning and books into salaried advice Sequoia Wealth Management divisions of wealth divisions between 10-100 advisers to InterPrac Securities and Sequoia achieve target to provide servi
Slide 15: Questions? Contacts
Questions? Contacts Garry Crole CEO garrycrole@sequoia.com.au Lizzie Tan CFO lizzietan@sequoia.com.au ASX Code: SEQ 15