Centrepoint Alliance Limited · ASX:CAF
Centrepoint Alliance — Investor Presentation (August 2021)
23 slides from Centrepoint Alliance's investor presentation, Aug 25, 2021
Slide 1: Investor Presentation Amendment
ASX Announcement 25 August 2021 Investor Presentation Amendment Centrepoint Alliance Limited (ASX: CAF) (“Centrepoint Alliance” or “the Company”), attaches an amended Investor Presentation which corrects the dividend information in slide 5. The release of this announcement has been authorised by the
Slide 2: FY21 Full Year Results Presentation and Strategy Update
FY21 FULL YEAR RESULTS PRESENTATION AND STRATEGY UPDATE John Shuttleworth, CEO Brendon Glass, CFO August 2021
Slide 3: Disclaimer
Disclaimer This presentation is for general information purposes only and should be read in conjunction with the Full Year Financial Report for the twelve months ended 30 June 2021 and the Appendix 4E lodged with the Australian Securities Exchange by Centrepoint Alliance Limited (ASX:CAF) on 25 Augu
Slide 4: Agenda
AGENDA BUSINESS RESULTS AND STRATEGY John Shuttleworth, CEO FINANCIAL RESULTS Brendon Glass, CFO Acquisition of ClearView Advice John Shuttleworth, CEO Brendon Glass, CFO 3
Slide 5: Business Results
BUSINESS RESULTS John Shuttleworth, CEO
Slide 6: Snapshot of core earnings
Snapshot of core earnings $139.2m $3.1m $11.1m Dividend (fully franked and Gross revenue EBITDA Cash (at 30 June 2021) Paid 26 February 2021) 6% $3.0m 9% 3c Special on FY20 on FY20 on FY20 1c Ordinary KEY MESSAGES TODAY FUTURE INDICATORS • Solid performance in a challenging market • Build scale – or
Slide 7: Strategic context: the need for advice has never been greater
Strategic context THE NEED FOR The great shift from accumulation to retirement incomes driven by the ageing population ADVICE HAS NEVER BEEN Increased complexity through the interplay of superannuation, retirement, tax and social security GREATER $12.6 trillion in household assets 1 Reduced accessib
Slide 8: The business has built a strong foundation for future growth
The business has built a strong foundation for future growth CONSOLIDATION GROWTH PHASE Strong foundation Three core pillars underpinning our strategy 1. 2. 3. Centrepoint’s focus Grow the Licensee Invest in financial Provide the over the last 3 years solutions and build services technology highest
Slide 9: Amidst disruption, there are clear opportunities to grow
Amidst disruption, there are clear opportunities to grow MARKET RATIONALISATION Over the FY21 financial year the Number of advisers number of financial advisers in the market continued to decline as 25,301 pressure on operating margins 24,077 and tighter education 4,860 21,922 standards drove advise
Slide 10: Continue to provide service excellence to our existing advisers
Continue to provide service excellence to our existing advisers through high quality services – 21,000 enquiries with 93% resolved within 2 days TOTAL ENQUIRIES, OCTOBER 2020 - JUNE 2021 Number of enquiries Specialised Average days and valued 1 to resolve support Average 2 enquiries Rapid Investment
Slide 11: We are a leading provider of advice technology and will continue to invest
We are a leading provider of advice technology and will continue to invest to digitise the advice process Centrepoint AI All service teams launch acquisition migrated to (live practice Centrepoint Alliance partnership management) Xplan site investment commences 8,000 enquiries tracked in Q2 FY21 FY1
Slide 12: Financial Results
FINANCIAL RESULTS Brendon Glass, CFO
Slide 13: Financial results summary
Financial results summary FY191 FY20 1H21 2H21 FY21 • Gross revenue up $8.2m (+6% PCP) For the period ($m) ($m) ($m) ($m) ($m) due to higher adviser fees, higher Gross Revenue 117.5 131.0 70.6 68.6 139.2 quality advisers and Enzumo integration Adviser fees and commissions (86.8) (101.7) (55.1) (56.0
Slide 14: Revenue and expense analysis
Revenue and expense analysis Revenue movement ($m) Key revenue movements (PCP) : $29.3 $5.6 • Adviser fees revenue up $3.1m (31%) with final step up $3.1 $1.0 $2.5 $28.1 in July 2020 $0.2 • Rebates down $5.6m due to grandfathered runoffs, with platform rebates ceased from 1 January 2021 • Investment
Slide 15: Balance sheet
Balance sheet FY20 FY21 • Cash generated from operations of $3.8m, offset by claims For the period ended ($m) ($m) settlements of $1.2m Cash & Term Deposits 12.2 11.1 • Loans receivable reduced due to $2.4m Neos Life repayment; Trade and Other Receivables 7.8 6.7 $1.0m scheduled to be repaid by Dece
Slide 16: Cash movement
Cash movement $2.7m $5.8m • Cash in Jun21 closed at 11.1m $3.8m • FY21 Cash from operations $3.8m • Neos Life divestment $2.4m, Ginger dividends $1.2m received and RFE loan recoveries $0.3m $12.2m $0.6m $11.1m • Dividends paid $5.8m • Claims paid out $1.2m • Other $0.6m FY20 Cash from NEOS Life Divi
Slide 17: Acquisition of ClearView Advice
ACQUISITION OF CLEARVIEW ADVICE John Shuttleworth, CEO Brendon Glass, CFO
Slide 18: Centrepoint Alliance to acquire ClearView Advice for $15.2m
Opportunity to combine best of both ClearView and Centrepoint Alliance to build a market leading advice service business CENTREPOINT ALLIANCE TO ACQUIRE CLEARVIEW ADVICE FOR $15.2M Consideration $12m in shares (48m @ 25cps) Licensee of the year 3 out of Award Winning Advice Business the last 4 yea
Slide 19: The combined business will have significant scale and operational leverage
The combined business will have significant scale and operational leverage TRANSACTION RATIONALE Centrepoint post acquisition 1,303 advisers comprising, • 490 licensed advisers • 813 self-licensed advisers Significant operating leverage and scale Immediate synergies from operating 175 Licensed Advis
Slide 20: Transaction and placement summary
TRANSACTION AND PLACEMENT SUMMARY Key points - Transformational combination of two strong brands is Key transaction details substantially accretive Settlement consideration $15.2m - Leveraging best practice customer centric licensee and Cash $3.2m technology solutions Vendor shares $12.0m - Inherent
Slide 21: Appendix
CENTREPwINT ALLIANCE
Slide 22: Corporate snapshot
Corporate snapshot EXPERIENCED AND INVESTED CAPITAL STRUCTURE LEADERSHIP TEAM TOP SHAREHOLDERS ASX Stock Code CAF Shares held Investors Board & Management Role As at 15/7/21 As at 15/7/2021 Shares held (% of SOI) FY21 gross revenue $139.2m Mr Alan Fisher Non-Executive Chairman - Thorney Investment G
Slide 23: Centrepoint Alliance in numbers
Centrepoint Alliance in numbers 22 Sources: Centrepoint Alliance internal service metrics (FY21).
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