Cog Financial Services Limited · ASX:COG
Cog Financial Services — Consolidated Operations Group — Investor Presentation (October 2018)
15 slides from Cog Financial Services's investor presentation, Oct 3, 2018
Slide 1: Investor Presentation – Lease Accounting and update
For personal use only INVESTOR PRESENTATION – Lease Accounting and update 3rd and 4th October 2018
Slide 2: COG started building in December 2015 and is delivering
COG started building in December 2015 and is delivering Page 2 For personal use only Step 1 – rebuild lease business and acquire distribution foot print TL Rentals Broker and Aggregation • Annual growth rate of > 30% pa over last 3 years. • Key strategic acquisitions have now been made, • $70m forec
Slide 3: Foundation built to unlock the value of the model
Foundation built to unlock the value of the model Page 3 For personal use only Step 2 – deliver suitable product Step 3 – grow originations 1. Prime consumer and commercial car COG forecast to grow to $5bn of loans. NAF, 10% - 20% of this to be funded 2. Equipment leases. by COG. 3. Other broker dis
Slide 4: Strategic Objective
STRATEGIC OBJECTIVE Page 4 For personal use only Building a leading position in the Australian business equipment and asset finance industry Grow origination of company owned products and shareholder returns Value Expand in-house leasing Leveraging company’s products capability and broker distributi
Slide 5: FY18 Highlights
FY18 HIGHLIGHTS Page 5 For personal use only • Solid progress in implementing growth strategy with strong momentum going into FY19 Revenue +39% $160.5m • FY18 EBITDA* up 21% to $14.4m, in line with FY18 guidance of $13.7- $15.0m (with no new acquisitions made post guidance given in Feb 18) EBITDA* +
Slide 6: FY18 Performance and FY19 Guidance
FY18 PERFORMANCE AND FY19 GUIDANCE Page 6 For personal use only EBITDA Commentary FY18 FY18 FY19 (after minority interests) Guidance Actual Forecast ($m) ˃ Commercial Equipment Leasing forecast is based on lease origination of $70m with 44% funding via Sale of Receivable and the remaining 58% funded
Slide 7: Finance Broking & Aggregation
FINANCE BROKING & AGGREGATION Page 7 Commentary For personal use only Group NAF in $m Australia’s largest equipment finance broker aggregation group 3,600 3,353 3,400 COG provides aggregation services to: 3,128 • independent network member finance brokers 3,200 • COG equity owned finance brokers 3,0
Slide 8: Example of a lease book – use your own sensitivities
Example of a lease book – use your own sensitivities Page 8 For personal use only Base Case Example of $70m/year of origination (all written on the 1st day of the year) Receivable Year 1 2 3 4 5 6 Balance 1 $70,000,000 $70,000,000 2 $55,775,665 $70,000,000 $125,775,665 3 $39,559,923 $55,775,665 $70,
Slide 9: Commercial Equipment Leasing
COMMERCIAL EQUIPMENT LEASING Page 9 Origination Growth For personal use only Lease origination growth Growing lease referrals from COG finance broker network Operating Leases Written (Original Equipment Cost - $m) 70.0 70 COG broker 58.7 OEC written referrals 60 50 FY15 $22.5m $0 42.5 40 33.4 $33.4m
Slide 10: Commercial Equipment Leasing – Leasing Book Features
COMMERCIAL EQUIPMENT LEASING Page 10 Leasing Book Features For personal use only Key statistics OEC of lease book $124m PV of lease book $89m Number of leases 2,606 Average deal size $48k Average tenure 48mth Loss rate1 2% Inertia rate 21% PV of self funded leases $9.8m 1. Loss rate is calculated on
Slide 11: Appendices
For personal use only APPENDICES
Slide 12: CFG Membership Group – Growth and New Members
CFG MEMBERSHIP GROUP Page 12 For personal use only Growth and New Members – Volumes $Millions 2,600 2,400 0 308 2,200 94 2,000 179 -55 1,800 178 -55 2,441 281 1,600 2,039 1,400 240 1,736 1,200 1,270 1,000 June 2015 FY Organic New Departed June 2016 FY Organic New Departed June 2017 FY Organic New De
Slide 13: CFG Membership Group – Number of New Members
Page 13 CFG MEMBERSHIP GROUP For personal use only Number of New Members 140 120 0 16 16 -2 100 -3 25 80 12 0 60 126 13 -1 110 -2 96 16 40 74 62 50 20 36 0 Jun-12 Jun-13 Jun-14 Jun-15 Jun-16 Jun-17 Jun-18 Members have increased by 250% since 2013 Members have increased by 15% in 2018 Industry
Slide 14: Lease book – sensitivities
Lease book – sensitivities Page 14 For personal use only Upside Case After year 4 (i.e. first day of year 5), assuming NIM of 5% & $80m year of originations RV cash income Interest Spread Total Income Op Ex Bad debt NPBT $11,664,000 $10,543,629 $22,207,629 $5,300,000 $1,698,072 $15,209,557 Downside
Slide 15: Disclaimer
DISCLAIMER Page 15 For personal use only Consolidated Operations Group Limited ("COG”) has not COG cautions shareholders and prospective shareholders not to considered the financial position or needs of the recipient in place undue reliance on these forward-looking statements, providing this present
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