Centuria Capital Group · ASX:CNI
Centuria Capital — FY2015 Earnings Presentation
31 slides from Centuria Capital's earnings presentation, Aug 20, 2015
Slide 1: Centuria Capital Limited Results Briefing FY15
For personal use only Centuria Capital Limited Results Briefing FY15 20 August 2015 www.centuria.com.au Centuria Capital Limited | ASX:CNI 1
Slide 2: Contents Directory
Contents Directory For personal use only 3. FY15 Review Group Chief Executive John McBain 9. Property Funds Management Division CEO Unlisted Property Funds Jason Huljich 13. Unlisted Property Funds CEO Listed Property Funds Nicholas Collishaw 18. Listed Property General Manager - Investment Bonds Ne
Slide 3: FY15 Review
For personal use only FY15 Review Centuria Capital Limited | ASX:CNI 3
Slide 4: FY15 Performance and Review
FY15 Performance and Review For personal use only • During FY15 Centuria realised in excess of $36 million from non-core divisions. • Sale of the $124 million Variable Rate Reverse Mortgage Portfolio yielding $31.7 million cash before transaction costs and taxation. • Sale of the Over Fifty Insuranc
Slide 5: FY15 Results Overview
FY15 Results Overview For personal use only Financial Summary 30-Jun-15 30-Jun-14 Change Statutory NPAT $8.6m $9.1m (5.7%) Statutory EPS (basic) 11.0c 11.6c (5.2%) (1) Underlying NPAT $6.3m $5.9m 6.4% (1) Underlying EPS (basic) 8.1c 7.6c 6.8% Dividends per share (fully franked) 4.75c 2.75c 72.7% Pay
Slide 6: Underlying Segment Results
Underlying Segment Results 2015 2014 Commentary For personal use only Underlying profit by segment (1), (2) Property funds management 8,774 5,043 Reflects increased performance and sales fees Investment bonds 5,803 6,430 Retention improved 9% with increased business focus Reverse mortgage portfolio
Slide 7: FY15 Results Overview
FY15 Results Overview For personal use only Underlying Net Profit Before Finance Costs and Underlying Net Profit After Tax Tax by Segment(1) ($millions) ($millions) 7 15 Property 3.85 5.04 Funds Management 6 8.77 Investment 10 Bonds 5 7.02 6.43 Reverse Mortgages 5 4 5.80 Insurance $m 3.29 2.90 $m 3
Slide 8: CNI share price relative performance to S&P/ASX Small Ordinaries Index
CNI share price relative performance to S&P/ASX Small Ordinaries Index* For personal use only 93.5c 80c 1-July-14 30-June-15 S&P/ASX Small Ordinaries Index CNI Share Price Source: Comsec Total shareholder return FY15 equals 22.8% (includes FY 15 dividends) *The S&P/ASX Small Ordinaries Index represe
Slide 9: Property Funds Management Division
For personal use only Property Funds Management Division Centuria Capital Limited | ASX:CNI 9
Slide 10: Property Funds Management Division
Property Funds Management Division For personal use only • Creation of Listed Property business unit and downstream development model creates two new revenue and profit streams for the Group which are directly on-strategy and will be significant profit generators in the near term. • Centuria Metropo
Slide 11: FY15 Property Funds Management Division Revenue Sources
FY15 Property Funds Management Division Revenue Sources ($millions) For personal use only 25 Performance and Sales Fees 20 Net Acquisition Fees 15 $'m Development fees 10 Property Services and Other Revenue 5 Fund Management Fees - FY2013 FY2014 FY2015 • Significant performance and sales fees contri
Slide 12: Asset and Investor Profile
FY15 Property Funds Management Division Asset and Investor Profile For personal use only • Nine property acquisitions during the year, two in the unlisted Portfolio by State property funds division and seven in the listed property funds 8% division totaling $355 million. 6% New South Wales • 13 prop
Slide 13: Unlisted Property Funds Management
Unlisted Property Funds Management For personal use only • Strong property market allowed Centuria to realise on thirteen mature assets driving significant profits for investors and releasing substantial performance fees for Centuria. • Prevailing low interest rates afford Centuria an extended perio
Slide 14: Unlisted Property Funds Management Strategy and Outlook
Unlisted Property Funds Management For personal use only Strategy and Outlook • Create differentiated property investment products to suit a range of investor risk/return requirements: • Passive: High quality modern assets producing income returns superior to traditional fixed term investments. • Co
Slide 15: Unlisted Property – Passive Case Study Central Avenue
Unlisted Property – Passive Case Study 8 Central Avenue, Australian Technology Park, Sydney For personal use only Investment Rationale • Average unexpired lease term of 11.0 years • High quality tenant profile - NSW Government and Seven West • ~2.5km from Sydney CBD - emerging business precinct • Mo
Slide 16: Unlisted Property – Core Plus Case Study St Kilda Road
Unlisted Property – Core Plus Case Study 441 St Kilda Road, Melbourne Centuria acquired the property in June 2012 for $58 million. Over the next 2 years the Centuria team added significant For personal use only value to the asset utilising its strong asset management experience and sold the property
Slide 17: Unlisted Property – Value Add Case Study
Unlisted Property – Value Add Case Study Centuria Belmont Road Development Fund For personal use only Background • Existing ten year duration Centuria passive office fund restructured to create the opportunity for investors to participate in opportunistic equity returns. • High-end boutique 62 unit
Slide 18: Listed Property Funds Management
Listed Property Funds Management Centuria Metropolitan REIT • Centuria Metropolitan REIT (ASX code: CMA) listed on the ASX on 10 December 2014. For personal use only • Managed by Centuria Property Funds Limited, CMA utilises the Group’s professional capabilities in property management, development a
Slide 19: Investment Bond Division
For personal use only Investment Bond Division Centuria Capital Limited | ASX:CNI 19
Slide 20: Investment Bond Division
Investment Bond Division For personal use only $383m $332m $715m (Jun-14 $714m) Total FUM of Centuria Total FUM of Over Fifty Total FUM Life Investment Bonds Guardian Friendly Society Bonds • Centuria Life manages two friendly societies – Centuria Life Friendly Society and the Over Fifty Guardian Fr
Slide 21: Strategy for Investment Bond Division
FY15 Investment Bond Division For personal use only Strategy for Investment Bond Division • Centuria is positioning the Investment Bond Division in the retail financial advice market as the investment bond provider of choice for third party distributers and selected aligned advisers. • Providing fin
Slide 22: Strategy for Investment Bond division (cont'd)
FY15 Investment Bond Division For personal use only Strategy for Investment Bond division (cont’d) • New online calculators demonstrating the value of investing in an investment bond as well as calculating the cost of funding a child’s education. • Business development team trained and focussed on p
Slide 23: FY15 Non-Core Assets Reverse Mortgage Portfolio Update
FY15 Non-Core Assets Reverse Mortgage Portfolio Update For personal use only • Centuria successfully sold its variable rate reverse mortgage portfolio in October 2014 in line with its strategy to monetise non-core operations. • $31.7 million cash was released to the Group (before transaction costs a
Slide 24: Group Strategy – Refreshed for 2015
Group Strategy – Refreshed for 2015 For personal use only “FY 15 marks a year where the CNI balance sheet has been substantially strengthened. The sale of non-core divisions and focus on the performance of core business units has generated increased underlying NPAT” Strategic objectives Centuria wil
Slide 25: Appendices
For personal use only Appendices Centuria Capital Limited | ASX:CNI 25
Slide 26: Statutory Account Reconciliations
Appendices Statutory Account Reconciliations For personal use only General comment on statutory accounts reconciliation • The “Statutory Accounts” show the consolidated results of the Company and its controlled entities, including the Benefit Funds of Centuria Life, which Centuria is required to con
Slide 27: Income Statement for year ended June 2015
Appendix 1: (1) Income Statement for year ended 30 June 2015 Statutory Benefit Statutory Accounts For personal use only Accounts Funds excluding Benefit Funds $’000 $’000 $’000 Property funds management revenue 20,617 - 20,617 Investment bond revenue 32,093 (22,015) 10,078 Reverse mortgages revenue
Slide 28: Summary Balance Sheet as at June 2015
Appendix 2: (1) Summary Balance Sheet as at 30 June 2015 Statutory Benefit Statutory Accounts For personal use only Accounts Funds excluding Benefit Funds $’000 $’000 $’000 Assets Cash and cash equivalents (2) 25,487 - 25,487 Other financial assets – reverse mortgage portfolio (3) 43,754 - 43,754 Pr
Slide 29: Summary Cash Flow Statement for the year ended 30 June 2015
Appendix 3: (1) Summary Cash Flow Statement for the year ended 30 June 2015 Statutory Benefit Statutory Accounts For personal use only Accounts Funds excluding Benefit Funds $’000 $’000 $’000 Cash flows from operating activities Management fees received 29,734 - 29,734 Payments to suppliers and empl
Slide 30: Disclaimer
Disclaimer For personal use only This document has been issued by Centuria Capital Limited ABN To the extent permitted by law, Centuria, its related bodies 22 095 454 336 and contains general information about Centuria corporate and their respective directors, officers and employees, Capital Limited
Slide 31: For personal use only
For personal use only Centuria Capital Limited | ASX:CNI 31
Centuria Capital Group — FY2015 Earnings Presentation on 6ix