Centrepoint Alliance Limited · ASX:CAF
Centrepoint Alliance — Australian Microcap Investment Conference 2015
19 slides from Centrepoint Alliance's conference presentation, Oct 21, 2015
Slide 1: Centrepoint Alliance Limited Investor Presentation
For personal use only CENTREPOINT ALLIANCE LIMITED Investor Presentation 21 October 2015
Slide 2: Corporate snapshot
Corporate snapshot Shareholder structure KMP Capital Structure For personal use only River Capital 6% 6% Adam Smith Share price (15 October 2015) $0.40 6% Fully paid ordinary shares 150.6m Options and performance rights 4.1m Market capitalisation $60.2m Retail & Other 55% Thorney Cash (30 June 2015)
Slide 3: Centrepoint has two operating segments
Centrepoint has two operating segments For personal use only • Provides tools and services to ~1500 advisers • Largest independent provider of insurance and practices using fee for service model premium funding to SMEs • Cross sells high margin ‘fund of funds’ • ~400 broker clients management ($700m
Slide 4: Turnaround snapshot
Turnaround snapshot Statutory NPAT from Continuing Operations ($m) For personal use only 20.0 Growth 15.0 10.0 Turnaround 5.9 5.0 3.2 1.3 Crisis 0.0 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 -5.0 -10.0 -7.2 Positioned for growth -15.0 -13.1 FY16-FY18 -17.3 Turnaround -20.0 • Growth initiatives we
Slide 5: Turnaround scorecard
Turnaround scorecard For personal use only Reposition Wealth as compelling partner for client focussed advisers Design and build new salaried adviser offering Repair relationships with regulator and other key stakeholders Identify obligations and minimise legacy claim costs Improve Funding
Slide 6: Transitioning to Growth Mode
Transitioning to Growth Mode For personal use only • Financial investment and management time related to turnaround now largely complete – Full benefits of realignment will still take some time to be realised (particularly in Wealth) • Company has transitioned to growth strategy – Repositioned Wealt
Slide 7: FY15 - Performance highlights transitional phase
FY15 - Performance highlights transitional phase For personal use only Change • Total revenue and profit FY14 FY15 FY15 v FY14 impacted by ‘soft’ commercial Total revenue ($m) 51.7 48.9 (5%) general insurance premium market reducing revenues by Underlying PBT($m) 8.3 7.0 (15%) $4m Statutory NPAT
Slide 8: Dividends
Dividends For personal use only Dividends per share (cps) 2.5 2.2 • The Board declared 2.2 cents of dividends in 2.0 FY15 1.5 1.2 1.0 • A Dividend Reinvestment Plan is offered with 1.0 a discount of 2% 0.5 • The aim of the dividend policy is to provide 0.0 shareholders with sustainable and fully 1H1
Slide 9: Outlook
Outlook For personal use only • Wealth revenues steady as grandfathered income runs off replaced by growth in FUM/FUA and salaried advice • Fund inflows to funds management and platforms continue to grow • General insurance premiums stabilised. Premiums funded growing above market excluding WA which
Slide 10: Operational Review
For personal use only Operational Review 10
Slide 11: Wealth – well positioned to grow
Wealth –well positioned to grow For personal use only Strong growth industry • $2 trillion Australian superannuation market to grow at estimated 7% pa over next 20 years Realignment complete • Wealth completed its realignment in FY15 • Established as a compelling and sustainable partner for client f
Slide 12: Wealth – key metrics
Wealth – key metrics Change For personal use only $m FY13 FY14 FY15 FY15 v FY14 Net flows, FUA 78 27 164 5.1x Net flows, FUM (94) (8) 47 6.7x Total net flows (16) 19 211 10.3x Funds under administration 1,590 1,788 2,076 16% Funds under management 637 684 754 10% Total funds invested 2,227
Slide 13: Wealth - Growth strategy
Wealth- Growth strategy For personal use only • Wealth momentum building steadily with improved operating model • Organic and inorganic growth opportunities available • Turnaround initiatives complete. Scale benefits to be realised over coming years • Recruit additional practices • Grow salaried adv
Slide 14: Funding – leading independent player
Funding – leading independent player For personal use only Large addressable market • ~$5bn pa Australian premium funding market Leading independent player • Largest independent player in industry • ~30,000 loans, ~$400m general insurance premiums funded and $4bn mortgages brokered National footprin
Slide 15: Funding – key metrics
Funding – key metrics Change For personal use only FY13 FY14 FY15 FY15 v FY14 PF loan volume ($m) 368 445 384 (14%) Active brokers, end-of-year 269 362 382 6% Loans 19,800 27,168 28,451 5% Average size ($) 18,586 16,380 13,485 (18%) Net interest margin (%) 5.9% 5.9% 6.2% 5% • Total loan vo
Slide 16: Funding – growth strategy
Funding – growth strategy For personal use only • Above market growth continuing excluding WA. WA market expected to begin growing in 2Q16 • Operating costs reducing over FY16 and into FY17 • Funding costs reducing as line fees reduced (1 Oct 2015) and facility restructured (Dec 15) • Mortgage broki
Slide 17: Summary
Summary For personal use only • Centrepoint well positioned in long term growth markets • Leading independent player • Invested significantly in developing sustainable growth platforms • Margin improvement as business builds scale • Strong capable management team • Attractive M&A opportunities • Str
Slide 18: Disclaimer
Disclaimer For personal use only • This presentation is for general information purposes only and should be read in conjunction with Full Year Results Presentation 30 June 2015 and the Appendix 4E lodged with the Australian Securities Exchange by Centrepoint Alliance Limited (ASX:CAF) on 21 August 2
Slide 19: Contact
For personal use only Contact 19
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