Sequoia Financial Group Ltd. · ASX:SEQ
Sequoia Financial — FY2024 Earnings Presentation
22 slides from Sequoia Financial's earnings presentation, Aug 27, 2024
Slide 1: Investor update
For personal use only Investor update 27 August 2024 Sequoia Financial Group | 1
Slide 2: Disclaimer
Disclaimer This presentation is for general information purposes only and may contain non-GAAP financial measures. Therefore, it should be read in For personal use only conjunction with the Full Year Annual Report for the year ended 30 June 2024 and the Appendix 4E lodged with the Australian Securit
Slide 3: Contents
Contents For personal use only 01 Overview 02 Divisional Breakdown 03 Financials 04 Outlook Sequoia Financial Group | 3
Slide 4: Presenters
Presenters For personal use only GARRY CROLE LIZZIE TAN Managing Director and CEO CFO / COO Sequoia Financial Group | 4
Slide 5: A diversified financial services group with a comprehensive suite of solutions
A diversified financial services group with a comprehensive suite of solutions For personal use only Providing an integrated suite of products and services to investors, $12bn1 Funds under advice corporates and professional services firms such as: 350+ Financial planners Wealth managers Accountants
Slide 6: Overview
For personal use only 01 Overview Sequoia Financial Group | 6
Slide 7: FY24 financial highlights
FY24 financial highlights For personal use only Operating Revenue NPAT2 profit1 $124.6m $8.7m $24.0m Operating DPS Net cash cashflow3 $4.8m 7.0 CPS ff $16.8m 1. Operating profit (normalised EBITDA) excludes non-operating items 2. Includes gains on sale of Morrison Securities Sequoia Financial Group
Slide 8: FY24 overview
FY24 overview Despite these disruptions, the Company delivered operating profit of $8.7m, up For personal use only 88% on pcp and returned 7.0cps fully franked to shareholders following the successful sale of Morrison Securities. Licensee services Sequoia experienced Capital management enjoyed stron
Slide 9: Continued dividend growth
Continued dividend growth 14.5 cents per share fully franked For personal use only 8 delivered to shareholders from FY20. Interim DPS Final DPS Special DPS 7.0 7 A compound annual growth rate of 83% (excluding the special 83% 6 dividends) from 0.4 cents per share in 2.5 FY20 to 4.5 cents per share i
Slide 10: Divisional Breakdown
For personal use only 02 Divisional Breakdown S e q u o i a F i n a n c i a l G r o u p | 10
Slide 11: Streamlined organisation for operational efficiency
Streamlined organisation for operational efficiency For personal use only Licensee and Adviser Services Legal and Administration Services Providing financial services Service provider to and advice: accountancy firms, dealer • Licensing to financial planners groups, financial planning firms, and sto
Slide 12: FY24 revenue contribution (previous structure)
FY24 revenue contribution (previous structure) For personal use only Licensees Services 101.7 1.9 $124.6m 0.4 Equity Markets 9.1 Direct Investments 2.2 9.3 $113.0m Professional Services 9.3 2.2 Head Office 0.4 9.1 Discontinued operations 1.9 124.6 Total 124.6 101.7 Licensee and Adviser Legal and Adm
Slide 13: FY24 revenue contribution (new structure)
FY24 revenue contribution (new structure) For personal use only Total Revenue Divisional Revenue Growth $m 140 23.7 1.6 0.8 124.6 120 98.5 100 80 60 40 20 0 S e q u o i a F i n a n c i a l G r o u p | 13
Slide 14: Licensee and Adviser Services
Licensee and Adviser Services Continue revenue and For personal use only $m operating profit1 growth Revenue EBITDA EBITDA Operating profit Operating Margin Operating profit margin profit margin 120 8% $113.0 • Revenue and operating profit1 7% growth will be organic and driven 100 $89.3 by: 6% 80 •
Slide 15: Legal and Administration Services
Legal and Administration Services Continue revenue growth For personal use only and strong margins $m Revenue EBITDA EBITDA Margin Operating profit margin 10 9.3 50% • Mix of organic and inorganic 9 45% growth driving revenue growth 8 7.7 40% and margin improvement 7 35% • Acquisition of Castle Corp
Slide 16: Group financials
For personal use only 03 Group financials S e q u o i a F i n a n c i a l G r o u p | 16
Slide 17: FY24 profit & loss
FY24 profit & loss FY24 FY23 Var ($m) ($m) % For personal use only Revenue Total expenses 124.6 (115.9) 98.5 (93.9) 26 23 Commentary Operating profit (normalised Strong revenue growth due to more revenue per adviser, EBITDA) 8.7 4.6 88 assisting margin expansion. Non-operating items Acquisition and
Slide 18: Strong balance sheet provides optionality
Strong balance sheet1 provides optionality FY24 FY23 ($m) ($m) For personal use only Cash and cash equivalents 16.8 9.4 Trade and other receivables Investments in shares 8.9 5.1 9.3 1.5 Commentary Investments in associates 10.7 0.5 Right-of-use assets and equipment 0.6 2.5 Strong balance sheet with
Slide 19: FY24 cash flow from continuing operations
FY24 cash flow from continuing operations FY24 FY23 ($m) ($m) For personal use only Commentary Receipts from customers 138.5 100.3 Payments to suppliers/employees (133.7) (97.4) Operating cash flow from continuing 4.8 2.9 operations Active capital management across FY24 evident in the Net interest r
Slide 20: Outlook
For personal use only 04 Outlook S e q u o i a F i n a n c i a l G r o u p | 20
Slide 21: FY25 focus and commitments
FY25 focus and commitments FINANCIAL GUIDANCE CAPITAL MANAGEMENT For personal use only Organic revenue growth and operating profit margin Fully franked dividends at an increasing payout ratio towards expansion. 90% of operating profit after tax. The share buyback scheme will be used selectively as a
Slide 22: Contacts
Contacts For personal use only GARRY CROLE Managing Director and CEO Email: info@sequoia.com.au www.sequoia.com.au
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