Prime Financial Group Limited · ASX:PFG
Prime Financial — Shareholder Meeting (November 2018)
27 slides from Prime Financial's shareholder meeting presentation, Nov 30, 2018
Slide 1: 2018 Annual General Meeting
Prime Financial Group Ltd ACN 009 487 674 30 November 2018 Level 17, Como Office Tower 644 Chapel Street PO Box 6105 South Yarra VIC 3141 Tel 03 9827 6999 Fax 03 9827 9100 Company Announcements Office enquiries@primefinancial.com.au www.primefinancial.com.au Australian Securities Exchange Limited Pr
Slide 2: Chairman's Address
Prime Financial Group Ltd ACN 009 487 674 30 November 2018 Level 17, Como Office Tower 644 Chapel Street PO Box 6105 South Yarra VIC 3141 2018 ANNUAL GENERAL MEETING Tel 03 9827 6999 Fax 03 9827 9100 enquiries@primefinancial.com.au www.primefinancial.com.au Chairman’s Address Good morning Ladies and
Slide 3: Chairman's Address (continued): strategic repositioning
Historically, Prime’s Wealth Management services were delivered both directly and through Joint Ventures with Accounting Firms, with Accounting & Business Advisory services being delivered through Accounting Firms where Prime maintained a minority equity interest. Although previously a successful bu
Slide 4: Chairman's Address (continued): key priorities
Over the last 12 months, Prime invested in Finance & IT resources to support its accelerated business expansion and our future earnings growth. We continue to actively engage with our Accounting Firm Joint Venture partners as we work alongside them to provide an enhanced client experience for Wealth
Slide 5: Chairman's closing remarks
I can assure you that your Board and Management Team are working hard to realise Prime’s potential to grow our business and service offerings, and to see these efforts recognized by way of an increased earnings per share, and consequential growth in value attributed to the Prime business. Paul Cowan
Slide 6: Prime Financial Group Ltd (ASX: PFG) – AGM Presentation
Prime Financial Group Ltd (ASX: PFG) – AGM Presentation 30 November 2018
Slide 7: Welcome
Welcome • Simon Madder – Managing Director & CEO Directors • Peter Madder – Executive Director • Paul Cowan – Independent Non-Executive Chairman • Tim Carroll – Independent Non-Executive Director Auditors • Ernst & Young Legal Advisors • HFW Share Registery • Computershare Investor Services 2
Slide 8: Agenda
Agenda 1. Independent Non-Executive Chairman’s Address – Paul Cowan 2. Managing Director/CEO’s Presentation 3. Business of the Meeting 3
Slide 9: Managing Director/CEO's Presentation
Prime Financial Group Ltd (ASX: PFG) – Managing Director/CEO’s Presentation
Slide 10: Who We Are
Who We Are • Integrated Accounting & Business Advisory, Wealth Management and Capital Advisory Services Services with $1.1 billion of funds under management (FUM) • Advise investors, business owners and entrepreneurs on realising their aspirations, Purpose protecting and growing their wealth and acc
Slide 11: Key Points
Key Points 1. Exposure to favourable industry thematics in Wealth Management, SMSF and Business Advisory 2. Continued Revenue Growth and Scale 3. Strategic repositioning of Prime substantially complete in FY18 4. Invested in infrastructure and services to allow acceleration of business plan 5. Targe
Slide 12: What We Do – Revenue by Service
What We Do – Revenue by Service Prime operates a direct client advice model under the Accounting & Business Wealth Management Prime brand and a Joint Venture model with accounting Advisory plus Capital Advisory firms (co-branded) • Financial & Retirement Planning • 80% of total revenue is generated
Slide 13: FY18 Highlights
FY18 Highlights • Revenue growth +11% in FY18 Continued Growth • Scaling through acquisitions and organic growth • Three core hubs now established in Melbourne, Sydney and Brisbane Build Platform to Scale • Only core capability not available across key hubs is Accounting & Business Advisory in Sydne
Slide 14: FY18 Performance Summary
FY18 Performance Summary Group Revenue ($m) Underlying EBITDA (Members) ($m) 19.1 21.3 4.6 3.8 0.9 ** +11% 0.9 ** -19% vs FY17 vs FY17 18.2 21.3 3.8 3.7 +17% +1% vs FY17 FY17 FY18 vs FY17 FY17 FY18 (ex impairment**) (ex impairment**) Accounting & Business Advisory acquisition Consistent with FY17 re
Slide 15: FY18 Dividend Summary
FY18 Dividend Summary Dividend per share (cents) 0.85 0.90 FY18 dividend at 0.90 cents per share (FY17 0.85 cents per share) +6% • Final dividend = 0.45 cents per share vs FY17 • Final dividend consistent with prior year FY17 FY18 FY18 dividend per share up versus FY17 10
Slide 16: FY18 Revenue
FY18 Revenue • Strategy changed in FY17 to divest minority accounting firm investments and focus on wholly owned How are we growing? businesses in Melbourne, Sydney and Brisbane • Accounting & Business Advisory plus Capital Advisory revenue increased from $0 in FY16 to $9.8 million in FY18. Delivere
Slide 17: FY18 Underlying EBITDA & EPS (Members)
FY18 Underlying EBITDA & EPS (Members) Analysis of Underlying EBITDA – FY17 v FY18 Analysis of Underlying EPS – FY17 v FY18 -0.9 Underlying EPS (Cents per Share) 2.00 -0.37 -0.4 -0.4 +0.5 -0.07 AUD million -0.16 +0.21 -0.02 -0.11 4.6 1.00 3.7 3.8 1.81 1.44 1.29 0.00 FY17 FY17 FY17 Investment in Alte
Slide 18: FY18 Balance Sheet & Cash flow
FY18 Balance Sheet & Cash flow • Group net debt at 30 June 2018 was $0.3 million lower than 30 June 2017 • Operating cash flow for FY18 was $2.7 million Balance Sheet Cash flow Group (AUD million) At 30 Jun At 30 Jun Group (AUD million) FY18 FY17 2018 2017 * Reported Reported Cash 0.9 0.6 Operating
Slide 19: Strategic Plan
Strategic Plan Purpose Advise investors, business owners and entrepreneurs on realising their aspirations, protecting and growing their wealth and accessing capital Goal People To be the leading integrated advice firm of the future How Helping our clients and business partners access advice, service
Slide 20: Core Hub Strategy – Melbourne, Sydney & Brisbane
Core Hub Strategy – Melbourne, Sydney & Brisbane • Wealth Management Division HUB FY17 FY18 FY19 Satellite Office - Cairns MPR acquisition (100%) MEL • Wealth Management Satellite Office - Perth Accounting & Business SYD Key acquisition focus Advisory • Accounting & Altezza acquisition (100%) Busine
Slide 21: Industry Landscape & Opportunities
Industry Landscape & Opportunities Key Themes Opportunities • Continue to position Prime as the leading • Royal Commission client focused integrated advice firm of the • New advisor educational requirements future • Shift away from non-bank owned • Progressively leverage investment in advice channel
Slide 22: Key Points
Key Points 1. Exposure to favourable industry thematics in Wealth Management, SMSF and Business Advisory 2. Continued Revenue Growth and Scale 3. Strategic repositioning of Prime substantially complete in FY18 4. Invested in infrastructure and services to allow acceleration of business plan 5. Targe
Slide 23: Appendix 1 - Reconciliations of Reported NPAT to Underlying EBITDA and NPAT
Appendix 1 - Reconciliations of Reported NPAT to Underlying EBITDA and Reported NPAT Attributable to Members to Underlying NPAT Attributable to Members EBITDA reconciliation: NPAT attributable to members reconciliation: $000 AUD FY18 FY17 $000 AUD FY18 FY17 Profit after tax from operations (Group) 1
Slide 24: Business Of The Meeting
Business Of The Meeting 1. Consideration of the Financial Statements • Note: There is no requirement for the shareholders to approve these statements 2. Adoption of the Remuneration Report 3. Re-Election of Director – Mr. Tim Carroll 19
Slide 25: Resolution
Resolution 1 • The first item on the agenda is the resolution concerning the Remuneration Report • Article 37.2 of the Company’s Constitution states that a resolution put to the vote of a meeting is decided on a show of hands unless a poll is demanded. As Chairman I have elected that the resolution
Slide 26: Resolution
Resolution 2 • The second item on the agenda is the Re-election of Mr. Tim Carroll as a Director of the Company • Article 37.2 of the Company’s Constitution states that a resolution put to the vote of a meeting is decided on a show of hands unless a poll is demanded. As Chairman I have elected that
Slide 27: Important Notice and Disclaimer
Important Notice and Disclaimer This investor presentation (Presentation) has been prepared by Prime Financial Group Limited (PFG). Summary Information This Presentation contains summary information about PFG. The information in this Presentation is general background information and does not purpor
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