Centuria Capital Group · ASX:CNI
Centuria Capital — Over Fifty Group — H1 FY2011 Earnings Presentation
18 slides from Centuria Capital's earnings presentation, February 2011
Slide 1: 2011 First Half Results Presentation
2011 First Half Results Presentation February 2011 John McBain – Chief Executive Officer & Matthew Coy – Chief Financial Officer"
Slide 2: Serving Generations of Australians
Serving Generations of Australians" 2"
Slide 3: Understanding Our Financial Report
Understanding Our Financial Report" ! v AIFRS requires Over Fifty Group “OFG” to consolidate the results of the OFG managed Friendly Society benefit funds into OFG’s consolidated financial results1! " v The practical result of this is that OFG shareholders are unable to review the stand-alone fina
Slide 4: Key Achievements
Key Achievements" Underlying Earnings on Track! v In the absence of unforeseen circumstances, the Board expects OFG to deliver strong Underlying NPAT and earnings per share in FY11! Maintenance of Dividends! v Final dividend of 2.5cps paid in October 2010 (franked to 30%)! v Interim dividend of 2
Slide 5: Operating Results (excl. Friendly Society Benefit Funds)
Opera&ng Results (excl. Friendly Society Benefit Funds) Half Year ended 31 December ! 2010" 2009" Underlying earnings before interest and tax by major division" $000’s" $000’s" - Property Funds Management (i)! 1,877! 2,087! - Friendly Society ! 4,299! 4,551! - Reverse Mortgages! 1,058! 1,318! - Insur
Slide 6: Operating Results (Cont.)
Opera&ng Results (Cont.) (excl. Friendly Society Benefit Funds) Half Year ended 31 December ! 2010" 2009" $000’s" $000’s" Underlying net profit after tax! 2,178" 3,188" Non-recurring adjustments ! - 31 December 2009 non-recurring adjustments (including tax effect)! 4! - Century Bulky Goods Funds No 1
Slide 7: Revenue from Major Divisions
Revenue from Major Divisions (excl. Friendly Society Benefit Funds) Half Year ended 31 December ! 2010" 2009" % Change" $000’s" $000’s" Property Funds Management! 5,010! 5,271! (5.0)! Friendly Society! 6,836! 7,238! (5.6)! Reverse Mortgages! 7,791! 8,121! (4.1)! Insurance! 647! 604! 7.1! Other (i)! 1
Slide 8: Property Funds Management
Property Funds Management" ! v Funds Under Management (“FUM”) as at 31 December 2010 was $920 million (30 June 2010: $714 million)! v Responsible Entity appointment to the Becton Funds has increased FUM and net earnings! v Well positioned to increase FUM both organically and through acquisition!
Slide 9: Friendly Society and Insurance
Friendly Society and Insurance! v FUM as at 31 December 2010: $741.7 million, a decrease of only 1.5% from $753 million at 30 June 2010, despite typically higher redemptions every October! ! v FUM balance has stabilised as redemptions have fallen sharply and inflows have improved! v The ‘Sprout’
Slide 10: Reverse Mortgages
Reverse Mortgages" v Value of mortgages as at 31 December 2010 was $193.3 million (30 June 2010: $196.8 million)! ! v Non-recourse loan outstanding to our financier was $170.0 million (30 June 2010: $176.3 million) held in subsidiary entity! ! v Significant embedded shareholder value in the portf
Slide 11: Growth Strategy
Growth Strategy" v Property Funds Management! § acquisition opportunities - both organic and via corporate acquisitions ! § property funds management industry in consolidation phase ! § strong investor demand for new unlisted property investments! ! v Friendly Society !! § competitive tax adva
Slide 12: Appendices – Statutory Account Reconciliations
Appendices – Statutory Account Reconcilia&ons v General comment on statutory account reconcilia:on § The “Statutory accounts” show the consolidated corporate entities including the Friendly Society benefit funds which OFG is required under AIFRS to consolidate; § The “benefit funds” reflect value
Slide 13: Appendix 1: Profit and Loss for Half Year Ended 31 December 2010
Appendix 1: Profit and Loss for Half Year Ended 31 December 2010" Statutory accounts " Benefit funds " Corporate accounts" $m" $m" $m" Interest and dividends! 22.1! 13.1! 9.0! Management fees! 10.0! -! 10.0! Rental income! 1.6! -! 1.6! Net movement in policyholder funds! 4.9! 4.9! -! Other income! 5
Slide 14: Appendix 2: Balance Sheet as at 31 December 2010
Appendix 2: Balance Sheet as at 31 December 2010" Statutory accounts " Benefit funds " Corporate accounts" $m" $m" $m" Assets:" Cash and equivalents! 62.8! 47.5! 15.3! Trade and other receivables! 11.5! -! 11.5! Financial assets at fair value! 464.4! 463.8! 0.6! Other financial assets! 2.7! -! 2.7!
Slide 15: Appendix 2: Balance Sheet as at 31 December 2010 (cont.)
Appendix 2: Balance Sheet as at 31 December 2010 (cont.)" Statutory Benefit funds " Corporate accounts " accounts" $m" $m" $m" Liabilities:" Trade and other payables! 13.8! 0.9! 12.9! Corporate debt! 6.8! -! 6.8! Borrowings – recourse to investment property only! 24.0! -! 24.0! Borrowings - Reverse
Slide 16: Appendix 3: Cash flow statement for half year ended 31 December 2010
Appendix 3: Cash flow statement for half year ended 31 December 2010" Statutory accounts" Benefit funds " Corporate accounts" $m" $m" $m" Cash flows from operating activities" Interest received! 15.0! 5.3! 9.7! Dividends received! 7.7! 7.7! -! Management fees received! 9.7! -! 9.7! Rent, trust and o
Slide 17: Appendix 3: Cash flow statement (cont.)
Appendix 3: Cash flow statement for half year ended 31 December 2010 (cont.)" Statutory accounts" Benefit funds " Corporate accounts" $m" $m" $m" Cash flows from financing activities" Proceeds from issue of equity securities! (1.1)! -! (1.1)! Loans from related entities! 0.6! -! 0.6! Loans from mort
Slide 18: Disclaimer
Disclaimer" This document has been issued by Over Fifty Group Limited ABN 22 095 454 336 and contains general information about Over Fifty Group Limited and its related bodies corporate (“Over Fifty Group”) which is current as at 28 February 2011. ! ! The information in this document is in summary f