Sequoia Financial Group Ltd. · ASX:SEQ
Sequoia Financial — FY2020 Earnings Presentation
16 slides from Sequoia Financial's earnings presentation, Aug 20, 2020
Slide 1: Sequoia Financial Group Limited Results Presentation 2020
Sequoia Financial Group Limited ASX Code: SEQ Results Presentation 2020 August 2020
Slide 2: Contents
FY20 Highlights 3 FY20 Results Overview 4 Financial Outlook 5 Contents Strong Growth Momentum 6 Operational Highlights 7 Business Overview 8 National Platform 9 Growing Platform 10 Wealth Management 11 Equity Markets 12 Sequoia Direct 13 Professional Services 14 Corporate Overview 15 Contact 16
Slide 3: FY20 Highlights
FY20 Highlights Short term pain to achieve long term scale and profitability Cash positive with strong growth momentum and outlook. Acquisitions consistent with strategy of providing licensee services to financial advice market and adding value through cross-sell and proprietary offerings • FY 20 sa
Slide 4: FY20 Results Overview
FY20 Results Overview Operating Cash Flow, Operating Profit (EBITDA) & NPAT margin continued improving over each of the last 6 month periods • EBITDA of $4.8m up 341 % versus pcp of $1.1m OPERATING PROFIT • By Division Wealth and Equity Markets contributed $3.9m with Direct and Professional Services
Slide 5: Financial Outlook
Financial Outlook Despite the uncertain economic outlook we are targeting revenue growth of >15% via increased market share, cross- selling and providing additional licensee services to premium adviser practices Long-term Mission Short-term Mission • Build a brand for advisers that the community rec
Slide 6: Strong Growth Momentum in 2H20 EBITDA
Strong Growth Momentum in 2H20 EBITDA Late 2018 – Business Improvement Process commences Early 2019 – Investment made in targeted businesses to improve scale 2019 / 2020 – Group wide Expense reduction process continues to improve profitability FY20 – Significant growth in customer base drives the Gr
Slide 7: Operational Highlights
Operational Highlights 2018 Business Improvement Process included a goal to reduce head office and shared services cost base with improved operational efficiency across all Divisions HEAD OFFICE • In FY20, we significantly improved cost allocation. Head office and shared COST BASE services costs are
Slide 8: Business Overview
Business Overview Sequoia Financial Group operates across four business segments: Wealth, Equity markets, Professional Services and Direct • Provides authorised representatives a choice of 3 AFSLs” for their licensee support WEALTH across all areas of financial services. • 400+ advisers with FUA in
Slide 9: National Adviser Platform
National Adviser Platform 405 Advisers are spread across 245 offices around Australia . InterPrac/Sequoia Wealth offices : Vic 103 NSW 67 WA 16 SA 15 Tas 3 ACT 1 Qld 0 Libertas offices NSW 28 Qld 9 Vic 2 WA 1 Tas 0 SA 0 SEQUOIA FINANCIAL GROUP | 9
Slide 10: Growing Platform - Financial Planner Numbers
Growing Platform - Financial Planner Numbers Over the the last 12 months Sequoia has developed a leading national advisory footprint of advisers, growing its adviser market share through a multi brand approach at a time the dominance of the big 4 banks and insurers is significantly reducing due to t
Slide 11: Wealth Management
Wealth Management Our positioning as Licensee of choice has resulted in increased market share. STRONG • 3 AFSL categories with >400 advisors (incl. specialists in aged care, POSITIONING superannuation, risk insurance), accounting firms, traditional financial planning practices and equity advisers.
Slide 12: Equity Markets
Equity Markets Equity Markets achieved very strong growth in clearing and execution in 2020 as both Morrison Securities and the Specialist Investment business increased market share • In 2018/2019 we invested heavily in people, technology and systems to build out STRONG capability – this was largely
Slide 13: Sequoia Direct
Sequoia Direct Covid 19 impacted the Direct business’ ability to hold events in the latter half of 2020 STRONG • The Finance News Network’s business content of news and videos is viewed POSITIONING over 85,000 times each month directly and further distributed to over 35 third party content distribut
Slide 14: Professional Services
Professional Services The Professional Services business slowed with the impact of COVID-19. We are reinvesting in technology to capture a broader range of business in the next 12 months. • Number of Superannuation funds administered increased by 14% organically to GROWTH 1,400 with a target of 2,00
Slide 15: Corporate Overview
Corporate Overview Board , staff and management of the company are aligned shareholders with ownership of more than 35% of the company shares on issue. ASX code SEQ MAJOR SHAREHOLDERS AND RELATED ENITITIES Anthony and Ryan Young 14.6% Ordinary shares 125.2m Market capitalisation $33.2m MARKET DATA A
Slide 16: Contacts
Contacts Garry Crole / CEO garrycrole@sequoia.com.au Lizzie Tan / CFO lizzietan@sequoia.com.au William Slack / Head of Equity Markets williamslack@sequoia.com.au Matthew Wilson / Head of Direct matthewwilson@sequoia.com.au Brent Jones / Head of Professional Services brent.jones@interprac.com.au sequ
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