Centrepoint Alliance Limited · ASX:CAF
Centrepoint Alliance — H1 2018 Earnings Presentation
22 slides from Centrepoint Alliance's earnings presentation, Feb 23, 2018
Slide 1: Half Year 2018 Results
For personal use only Half Year 2018 Results Centrepoint Alliance Limited ASX:CAF 24 February 2018
Slide 2: 1H18 Highlights
1H18 HIGHLIGHTS For personal use only $2.4m EBITDA from Gross profit is up $3.9bn in Funds $500m in gross New CEO Angus under Management and core continuing from 1H17 and cost to inflows consistent with Benbow starts on 3rd operations (excluding one income ratio has improved Administration up 14% ou
Slide 3: Strategic Vision
Strategic VISION For personal use only To be the most trusted we believe all Australians deserve to feel financially secure and have a positive wellbeing and respected wealth management organisation in Australia and in doing so, aspire to create leading business lines in: Attractive Client and IP co
Slide 4: Our strategy spans the wealth market
Our strategy spans the WEALTH MARKET For personal use only Financial Advisers Solutions Salaried Advisers Platforms Self Employed Investment Advisers Management Boutique Licensees Life Insurance clients Accountant Partners Adviser Services Decision Makers Value Creation 1H18 Investor Presentation, 2
Slide 5: Our Growth Model
Our GROWTH MODEL For personal use only NUMBER OF SOLUTION GROWTH ADVICE FIRMS ADOPTION • Competitive offering for • Quality solutions – investments, • Partnering advice firms professional advice firms portfolios, platforms, life insurance • Clients utilising solutions • Trusted and well recognised b
Slide 6: 1H18 Financial Results
1H18 Financial Results For personal use only $m 1H17 2H17 1H18 Gross Profit 15.7- 16.6- 16.0- Management expenses (13.5) (13.5) (13.6) • EBITDA core continuing operations EBITDA core continuing operations (excluding one-offs *) 2.2- 3.1- 2.4- (excluding one-off expenditure *) is up 9% Cost to income
Slide 7: Operating segment results
Operating segment results CONTINUING OPERATIONS For personal use only Funds Management and Licensee and Advice Services Corporate Total Administration $m 1H17 2H17 1H18 1H18 v 1H17 1H17 2H17 1H18 1H18 v 1H17 1H17 2H17 1H18 1H18 v 1H17 1H17 2H17 1H18 1H18 v 1H17 Statutory Revenue 6.2 6.4 6.5 5% 58--
Slide 8: Funds Under Management and Administration
Funds Under Management and Administration For personal use only Strategic Goal Key Performance • Grow Funds Under Management and Administration 1H16 2H16 1H17 2H17 1H18 Indicator Gross Funds Inflows ($m) 121.- 116.- 161.- 161.- 155.- How • Core of what we and advisers do for clients and focused on i
Slide 9: Supporting Professional Advisers
Supporting Professional Advisers For personal use only Key Performance Indicator 1H17 2H17 1H18 1H18 Highlights Number of New Firms (Gross) 22 16 11 Number of Advice Firms 494 489 491 • Marketing activity has seen an increase in the Revenue per Advice Firm ($k) 32 34 33 Centrepoint brand awareness a
Slide 10: Capital management
Capital management For personal use only DIVIDEND PER SHARE (cents per share) Dividends 12.00 • As at 31 December 2017 there are distributable earnings of $12m and franking account reserve of $18m (equivalent to $43m of fully franked 10.00 dividends) 8.00 • The Group’s dividend policy from FY18 is 5
Slide 11: Neos Life, new Australian life insurance business
For personal use only Neos Life (the trading name of Australian Life Neos Life is a Development Pty Ltd) is a standalone business with a separate management team of highly experienced new Australian life industry experts. insurance Centrepoint provided seed funding of $5.0m business focused ($1.25m
Slide 12: Accounting partnerships and salaried advice
Accounting partnerships and salaried advice For personal use only Accounting Partnerships Salaried Advice Continues to establish new joint ventures and clients. Focused on extracting value from existing clients and driving adviser performance. • Secured ten new joint ventures and two new referral pa
Slide 13: Summary and Outlook
SUMMARY AND For personal use only OUTLOOK The business is expected to have a Centrepoint is well strong second half of recruitment positioned both in with around 100 advice firms in the recruitment pipeline. terms of its core business and its The business has implemented a program to partner with ad
Slide 14: Contact Details
For personal use only CONTACT DETAILS Soula Cargakis John Cowan Interim Chief Executive Officer Chief Financial Officer +61 3 9092 4002 +61 2 8987 3036 soula.cargakis@cpal.com.au john.cowan@cpal.com.au Level 9, 10 Bridge Street | Sydney NSW 2000 14
Slide 15: Appendices
For personal use only APPENDICES
Slide 16: Group balance sheet
Group balance sheet For personal use only $m 30/06/17 31/12/17 Cash and Term Deposits 31.2 10.1 Intangible Assets and Goodwill 2.2 2.0 Other Assets 26.5 31.7 Total Assets 60.0 43.8 Other Liabilities 18.4 17.0 Total Liabilities 18.4 17.0 Net Assets 41.6 26.8 Net Tangible Assets 30.4 15.8 Net Tangible
Slide 17: Strong Cash position
Strong Cash position For personal use only 1H18 CASHFLOW ($M) A strong cash position of $10.1m at 31 December 2017, a decline of $21.1m (68%) contributed by: (i) $13.1m of dividends paid to investors in October (ii) Neos Life (ALD) $3.75m convertible debt funded in July 2017 and $1.75m for 5% equity
Slide 18: Government/regulations driving our addressable market
Government/regulations driving our ADDRESSABLE MARKET For personal use only Legislative impact Market impact • Scope has been agreed and focused on misconduct Royal Commission into • Royal commission into misconduct in the Banking, • Initial public hearing held on 12 February 2018 Superannuation and
Slide 19: Definitions
Definitions For personal use only Term Definition Includes assets and revenue in respect of self-licensed firms, Salaried Advice, Licensed Practices (flat fee model), Contemporary Business Model Open Administration Platforms, Managed Accounts and Open Ventura Funds FoFA Future of Financial Advice le
Slide 20: Definitions
Definitions Term Definition For personal use only Revenue Revenue comprises financial advice and product margin revenue, service revenue and dividend and distribution income Direct Costs Advice and financial product fees Gross Profit Revenue received less Direct Costs Operating Expenses Expenses exc
Slide 21: Disclaimer
For personal use only disclaimer This presentation is for general information purposes only and should be read in conjunction with the Appendix 4D lodged with the Australian Securities Exchange by Centrepoint Alliance Limited (ASX:CAF) on 24 February 2018. This presentation does not provide recommen
Slide 22: For personal use only
For personal use only CENTREPGINT ALLIANCE