Wt Financial Group Ltd. · ASX:WTL
Wt Financial — Investor Presentation (June 2021)
24 slides from Wt Financial's investor presentation, Jun 15, 2021
Slide 1: The Future of Quality Advice
THE FUTURE OF QUALITY ADVICE WTL Investment Overview $FTXLVLWLRQRI6HQWU\*URXS3W\/WG June
Slide 2: Introduction to WTL Financial Group Limited
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Slide 3: Important Information
IMPORTANT INFORMATION Issuer and Date Investment Risk This investor presentation (Presentation) has been prepared by WTL Financial Group Limited (ACN 169 037 058) (WTL) and An investment in New Shares is subject to known and unknown risks, some of which are beyond the control of the Group. is dated
Slide 4: Important Information
IMPORTANT INFORMATION Forward-looking statements and forecasts To the maximum extent permitted by law, WTL and its advisers, and each of their respective Beneficiaries: (i) exclude This Presentation contains certain “forward-looking statements” that are based on management's beliefs, assumptions and
Slide 5: Introduction to WTL
INTRODUCTION TO WTL Founded in 2010 and listed in 2015 with a direct to consumer (B2C) focus offering financial advice and related services Strong dividend history – circa $7M in More than 120 advisers across 105 practices – dividend payments before industry disruption up from 42 when Wealth Today w
Slide 6: Acquisition of Sentry Group
ACQUISITION OF SENTRY GROUP Following the success of its Wealth Today acquisition, WTL is now acquiring the dealer group Sentry Group Pty Ltd (Sentry) to leverage its B2B transformation, deliver an immediate WTL will pay return to strong profitability, and set a platform for significant share price
Slide 7: Highly Complementary & Transformational Acquisition
HIGHLY COMPLEMENTARY & TRANSFORMATIONAL ACQUISITION The acquisition of Sentry provides a powerful combination of complementary IP, skills, and experience and sets the platform for further organic and strategic transactional growth as industry disruption continues. Scale and efficiencies Expanded WTL
Slide 8: Transaction and Placement
TRANSACTION AND PLACEMENT A ccompletion payment of $7.0M will be comprised of 50% cash an and 50% WTL shares issued to the vendors, with the cash co component funded through the issuance of WTL new shares Key transaction details Settlement consideration $7.0M Cash (by share placement) $3.5M Vendor s
Slide 9: Proforma Balance Sheet
PROFORMA BALANCE SHEET Ap Appropriate int balance sheet adjustments post-settlement will reflect integration costs and provide management a clear runway for Assets 31 Dec 2020 $ At completion $ FY FY2022 Cash and cash equivalents 1,106,822 3,668,696 Trade and other receivables 2,137,937 4,859,189 Ot
Slide 10: What's Happening With Financial Advice
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Slide 11: Demand for Advice Continues to Grow
DEMAND FOR ADVICE CONTINUES TO GROW $3.5 Trillion Australian Household Assets, 2020 The largest inter-generational wealth transfer Residential property in our history is upon us $5,498Bn Largest cohort ever to enter aged care Millennial inheritance Funds under Advice 2020-2040: $962Bn Superannuation
Slide 12: UK Experience Shows Growth Ahead
UK EXPERIENCE SHOWS GROWTH AHEAD UK Experience post 2006-2012 regulatory review period $12,000 45,000 $11,000 40,000 Annual Industry Revenue - Bn $10,000 35,000 Adviser Numbers $9,000 30,000 $8,000 25,000 9.4%pa $7,000 $6,000 20,000 15,000 Growth in revenue 2021-26, based $5,000 10,000 on UK post-re
Slide 13: Opportunities for Independents
OPPORTUNITIES FOR INDEPENDENTS* Industry upheaval has led to the disintegration of institutionalised “sales forces” and a rotation to genuine advice networks. This modernization of the industry is essential to meeting the growing needs of consumers. 15.4% #1 reason: of advisers shifted to independen
Slide 14: Old Big Six Being Replaced by New Independent Heavyweights
OLD BIG 6 BEING REPLACED BY NEW INDEPENDENT HEAVYWEIGHTS Big Six down 54% Top Ten Independents up 40% Advisers Advisers Group Advisers 2018 Advisers 2020 Rank Group 2018 2020 AMP 2,607 1,808 1 Synchronised Business Services 460 505 2 Sequoia (ASX: SEQ) 250 393 IOOF1 1,604 1,295 3 Centrepoint Allianc
Slide 15: Adviser Exits and Practice Consolidation Present Further Opportunity
ADVISER EXITS AND PRACTICE CONSOLIDATION PRESENT FURTHER OPPORTUNITY 7.1% 10.1% Percentage of practices 17% entertaining sale 8.1% $5-$20 Million 19.2% Practices as $20-$50 Million willing sellers by $50-$100 Million $190Bn 4x practice FUA $100-$200 Million Potential value shift Revenue, peak from s
Slide 16: WTL Sentry: A Powerful Combination
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Slide 17: Complementary IP, Skills and Experience
COMPLEMENTARY IP, SKILLS AND What Advisers Want EXPERIENCE It’s your business, your largest asset, grow it with confidence WTL has developed impressive risk management and advice creation processes, and a key selling point for us was that they actually have advisers at the helm David Newman, Sentry
Slide 18: Advisers Helping Advisers Perfect Their Asset
ADVISERS HELPING WTL Proprietary IP ADVISERS PERFECT THEIR ASSET Line-by-line practice development IP built around Practices that take a serious look at their value Peloton Partners industry leading IP proposition p p and pricing p g report p increases in Revenue of 10-15% 65% of training materials
Slide 19: Expanded Board & Management Team
EXPANDED BOARD & MANAGEMENT TEAM Keith Cullen Guy Hedley Managing Director Non-Executive Chairman WTL founder and largest shareholder. 36yrs experience as a 15yrs as head of Macquarie Bank global private banking unit corporate executive and entrepreneur across the broadcast media, and BNP Private Ba
Slide 20: Expanded Board & Management Team
EXPANDED BOARD & MANAGEMENT TEAM David Newman Jack Standing Joint COO, MD of Sentry subsidiary Group Head of Advice, Responsible Manager Significant Sentry shareholder and MD. 35yrs in financial services, 8yrs with WTL in key B2B and B2C advice roles. Responsible for specialising in strategic planni
Slide 21: Conclusion
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Slide 22: ASX Peer Comparisons
ASX PEER COMPARISONS Post-acquisition WTL At placement price of 7.5cps, WTL average revenue per adviser numbers in line WTL is 50-70% below peer adviser on par with peers with SEQ, CAF, CUP and EAS valuations Advisers Advisers Revenue Adjusted Mkt Cap ASX Code Group Mkt Cap PE 2018 2020 per adviser
Slide 23: Indicative Transaction Timeline
INDICATIVE TRANSACTION TIMELINE 15 June 2021 16 June 2021 16 July 2021 July 2021 ASX NoM approved EGM to Target announcement by ASX and approve share settlement mailed issuance e n n e ne n e n n u e n e 23
Slide 24: Q&A
Q&A WT FINANCIAL GROUP
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