Ma Financial Group Limited · ASX:MAF
Ma Financial — FY2024 Earnings Presentation
63 slides from Ma Financial's earnings presentation, Feb 20, 2025
Slide 1: FY24 results presentation
FY24 results presentation February 2025 rsonal use only
Slide 2: Acknowledgement of Traditional Owners
rsonal use only We respectfully acknowledge the Traditional Owners of lands across Australia and pay our respects to their Elders, past and present. Our head office is located on Gadigal land.
Slide 3: Contents
Contents FY24 results & highlights 5 rsonal use only Post balance date activity & outlook 15 Asset Management 18 Lending & Technology 28 Corporate Advisory & Equities 35 FY24 financials 39 What we do 43 Appendices 46 3
Slide 4: Explanation of Underlying measures in this presentation
Explanation of Underlying measures in this presentation MA Financial Group Limited (MA Financial or the Company) (ACN 142 008 428) and its Differences in classification arise because the Group chooses to classify some IFRS rsonal use only subsidiaries (Group) utilise non-IFRS Underlying financial in
Slide 5: FY24 results & highlights
FY24 results & highlights rsonal use only
Slide 6: FY24 result – key themes
FY24 result – key themes Strong underlying business momentum. Business on track to achieve FY26 growth targets 1 rsonal use only Record full year Asset Management fund inflows – gross capital raised of $2.7 billion1 2 MA Money scaling strongly and profitable in 2H24. As at December closing loan book
Slide 7: Leveraging significant macroeconomic trends in deep markets
Leveraging significant macroeconomic trends in deep markets Well positioned across the business to harness domestic and global growth trends Australia’s superannuation system will continue to grow rapidly, as mandated by existing policy settings rsonal use only Superannuation & Ageing demographics d
Slide 8: Focused on medium-term growth targets
Focused on medium-term growth targets Confidence in ongoing growth derived from our history of successful investment to build highly scalable businesses. Accessing new institutional and listed market capital channels builds confidence around Assets under Management target. rsonal use only Historical
Slide 9: FY24 result highlights
FY24 result highlights Strong growth across MA businesses. Material investment in platform, technology, and brand poised to deliver future growth rsonal use only $190m 26.1cps 20cps Recurring revenue1 Underlying EPS Fully Franked Dividend2 7% on FY23 1% on FY23 in line with FY23 $10.3b $2.2b $139b $
Slide 10: FY24 results
FY24 results Underlying Results1 1 FY24 FY23 FY24 v FY23 Statutory Results FY24 FY23 FY24 v FY23 2 Revenue $306.6m $269.9m 14% Revenue $576.7m $392.8m 47% rsonal use only 3 Expenses $219.5m $188.3m 17% Expenses $256.0m $218.6m 17% EBITDA $87.1m $81.6m 7% EBITDA4 $320.7m $174.2m 84% Net profit after
Slide 11: Material investment made in FY24 to deliver future growth
Material investment made in FY24 to deliver future growth FY24 investment spend in line with expectations of ~$13m Underlying EBITDA impact (or EPS 6c) Strategic Investment Investment type & Opportunity Progress rsonal use only Group Marketing campaign promoting MA brand & services to grow Gross flo
Slide 12: MA has a strong track record of investing for growth
MA has a strong track record of investing for growth MA Money is delivering on strategic investment. Achieved a small profit in 2H24, as revenue grew 123% on 1H24 • MA Money is the most recent example of how MA Financial has successfully invested in new growth platforms rsonal use only • Similar inv
Slide 13: Financial performance
Financial performance Strong second half growth momentum as strategic investment starts to deliver. Earnings skew to 2H expected to continue in FY25 Underlying revenue ($m) Underlying EBITDA ($m) rsonal use only 350 120 1H 2H 1H 2H 300 100 250 80 156 172 57 200 142 36 49 60 150 120 41 86 40 33 100 1
Slide 14: Business unit highlights
Business unit highlights Complementary business segments provide a valuable ecosystem with diversification Asset Management EBITDA contribution1 74% EBITDA1 rsonal use only • Record annual fund inflows driven by strong interest in the Group’s Private Credit funds as investment fundamentals and fund
Slide 15: Post balance date activity & outlook
Post balance date activity & outlook rsonal use only
Slide 16: Key business activity since December 2024
Key business activity since 31 December 2024 Positive business momentum continuing with added impetus from announcement of new strategic institutional initiatives Asset Management • Positive momentum in AUM and client fund flows continue rsonal use only − $6171 million of gross fund inflows (net inf
Slide 17: FY25 outlook commentary
FY25 outlook commentary FY25 EPS is anticipated to be materially higher than FY24, as strategic investment in growth platforms starts to deliver Asset Management • Expectation for continued growth in fund inflows rsonal use only • Recurring revenue margin is expected to improve in FY25, remaining re
Slide 18: Asset Management
Asset Management rsonal use only
Slide 19: MA Financial is an active manager of alternative asset classes
MA Financial is an active manager of alternative asset classes We are active managers of longer duration alternative assets, adding value with operational expertise that requires hands-on management capability. We are more than just financial managers of assets rsonal use only Specialists in managin
Slide 20: Asset Management performance
Asset Management performance Underlying Financials ($M) FY24 FY23 FY24 v FY23 Base management fees 99.2 104.2 (5%) rsonal use only Growth in recurring revenue underpinned by strong demand Credit funds income 51.1 42.4 21% for Private Credit funds offsetting MA Redcape Hotel Fund Principal investment
Slide 21: Continued growth in recurring revenue
Continued growth in recurring revenue 19% CAGR in recurring revenue since FY20 +19% rsonal use only Recurring Revenue CAGR 197.8 189.7 176.1 31.5 72.1 22.7 132.2 101.5 39.7 23.7 153.4 158.2 125.7 92.5 77.8 FY20 FY21 FY22 FY23 FY24 Recurring revenue Transaction/Performance revenue & realised gains 21
Slide 22: Assets under Management
Assets under Management AUM at $10.3 billion with a focus on alternative asset classes A further $790 million AUM growth to be $11.1b rsonal use only delivered by MA1 listing on 5 March and deployment of $500 million committed 0.8 capital from Warburg Pincus 0.5 $9.2b 0.7 0.4 0.6 $7.8b 1.9 $6.9b 1.9
Slide 23: FY24 Fund flows
FY24 Fund flows Strong growth in fund flows with domestic gross flows up 36% on FY23 Flows by Asset Class2 ($m) FY24 FY23 rsonal use only Gross Net Gross Net Strong demand for Private Credit, with flows up 34% Private Credit 2,039 1,243 1,521 1,088 Includes $60m for new Accommodation Hotel strategy.
Slide 24: Investor flows
Investor flows Distribution channels continue to grow and diversify – only 1% of flows from migration related sources in FY23 and FY24 Investor channel gross inflows by proportion (%) Investor channel gross inflows ($m) rsonal use only 1% 2,247 9% 9% 6 1% 22 1,941 18% 32% 43% 173 725 33% 19 1,532 1,
Slide 25: Asset Management client base
Asset Management client base Domestic and international non-migration clients increasing as a proportion of total AUM FY24 AUM by investor channel FY23 AUM by investor channel rsonal use only $1.3b $1.3b $3.5b $4.6b $10.3b $9.2b $2.3b $2.6b $2.1b $1.8b Domestic HNW & Retail International HNW (Non-Mi
Slide 26: Focus is to be an active manager of alternative asset classes
MA Financial’s focus is to be an active manager of alternative asset classes Diversity of fund strategies delivers continued AUM growth Private Credit Real Estate Equities rsonal use only AUM: $5.2 billion AUM: $3.9 billion • Strong momentum on capital raising front, with MA products resonating with
Slide 27: Credit investing + Lending & Technology = Powerful driver of growth
Credit investing + Lending & Technology = Powerful driver of growth Sourcing credit assets directly through our proprietary relationships and in-house platforms is a significant strategic advantage. Over 75% of our $5.2b in credit investment funds have been directly originated by our teams through o
Slide 28: Lending & Technology
Lending & Technology rsonal use only
Slide 29: Building a tech-enabled highly scalable lending ecosystem
We are building a tech-enabled highly scalable lending ecosystem Creation of a tech-enabled highly scalable lending ecosystem that generates fee-based income, spread income and investment product for our managed funds rsonal use only Lending Financial technology Spread income Fees and commissions Lo
Slide 30: Lending & Technology divisional performance
Lending & Technology divisional performance Strong volume growth across Finsure and MA Money lifts revenue and positions business well for scale benefits to emerge rsonal use only Underlying Financials ($M) FY24 FY23 FY24 v FY23 Growth in Finsure managed loans and total brokers Financial Technology
Slide 31: Financial technology performance
Financial technology performance Finsure growth underpinned by strong broker network, translating to continued momentum in settlement growth rsonal use only Underlying Financials ($M) FY24 FY23 FY24 v FY23 Fees & commissions Increase reflecting broker network growth and strategic initiatives to incr
Slide 32: Finsure Platform growth
Finsure Platform growth Finsure is growing its market position with successful expansion into new markets. Focused on value-add service innovation and technology to broker clients. MA purchased a good business in 2022. It is now a great business. rsonal use only Brokers on Platform Finsure’s broker
Slide 33: Lending Platforms performance
Lending Platforms performance Positive underlying EBITDA contribution in 2H24 as the historical investment in MA Money begins to generate scale benefits rsonal use only Underlying Financials ($M) FY24 FY23 FY24 v FY23 Ongoing strong loan book growth with improved NIM MA Money 15.6 3.8 311% Specialty
Slide 34: Loan Book growth and invested capital
Loan Book growth and invested capital Loan book increased 130% driven by strong MA Money momentum in new settlements Loan book growth (A$m at year end) Invested capital1 (A$m / % at year end) rsonal use only 2,500 MA Money 100 MA Money Specialty Finance Specialty Finance $2,265m 90 Total 154 2,000 8
Slide 35: Corporate Advisory & Equities
Corporate Advisory & Equities rsonal use only
Slide 36: Corporate Advisory & Equities performance
Corporate Advisory & Equities performance Solid FY24 result given market conditions with revenue up 15% on FY23 Underlying Financials ($M) FY24 FY23 FY24 v FY23 rsonal use only Corporate Advisory fees 49.9 43.1 16% Equities commissions 5.8 5.2 12% Total Underlying Revenue 55.7 48.3 15% Expenses 44.0
Slide 37: Revenue seasonality
Revenue seasonality Corporate Advisory revenue typically weighted to second half • Corporate Advisory & Equities revenue is typically seasonal with, on average, second half weighting of approximately 60% rsonal use only • Market conditions make deal execution and timing less predictable Historical C
Slide 38: Corporate Advisory – relatively consistent across cycles
Corporate Advisory – relatively consistent across cycles Corporate Advisory has a consistent overall revenue productivity performance • Our target productivity range of $1.1m – $1.3m per executive is supported by over a decade of operation. Market uncertainty, and particularly a lack of ECM revenue,
Slide 39: FY24 financials
FY24 financials rsonal use only
Slide 40: Group Underlying Profit and Loss
Group Underlying Profit and Loss1 Summary Underlying Profit & Loss Statement ($M) FY24 FY23 FY24 v FY23 Growth driven by strong performance Credit funds and equities fund performance Asset Management 189.7 176.1 8% rsonal use only Lending & Technology 60.8 44.7 36% Reflects strong loan book growth i
Slide 41: Group operating balance sheet
Group operating balance sheet1 Operating Balance Sheet ($M) 31 Dec 2024 31 Dec 2023 Cash and cash equivalents 40.0 43.1 rsonal use only Loans receivable 10.4 6.2 Investments 248.6 203.6 Refer to following slide for detail on investments Net trail book asset 51.3 44.1 Goodwill and other intangibles 1
Slide 42: Group investments
Group investments Ability to recycle capital and maintain a dynamic investment portfolio underpins balance sheet strength rsonal use only Summary of Investments ($M) 31 Dec 2024 31 Dec 2023 Lending (MA Money & Specialty Invested Capital) 37.9 17.1 Co-investments 43.2 51.4 Private Credit funds 114.7
Slide 43: What we do
MA What we do Ajuo asn yeuosia
Slide 44: Our core capabilities position us well for medium term growth
Our core capabilities position us well for medium term growth Focus on building sustainable earnings growth rsonal use only 01. 02. 03. Builder of valuable businesses in Scalable business powered by Diversified capital sources and large addressable markets unique distribution client investor base 04
Slide 45: MA in the community
MA in the community • Established in 2018, the MA Foundation has three long-term community partners: rsonal use only GO Foundation, BackTrack, and the Mirabel Foundation. • It also supports charities and community causes that hold significant importance to our staff. To date, the Foundation has dona
Slide 46: Appendices
rsonal use only Appendices
Slide 47: Appendix – Financials
rsonal use only Appendix – Financials
Slide 48: FY24 Financials - Statutory to Underlying Profit reconciliation
FY24 Financials - Statutory to Underlying Profit reconciliation rsonal use only Note Revenue1 EBITDA NPAT CI1 FY24 Statutory Results ($m) 576.7 320.7 41.8 44.3 Differences in measurement Acquisition and transaction costs (a) - 3.1 8.9 8.9 Adjustments relating to co-investments (b) 1.8 1.8 1.8 2.4 Ad
Slide 49: FY23 Financials - Statutory to Underlying Profit reconciliation
FY23 Financials - Statutory to Underlying Profit reconciliation rsonal use only Note Revenue1 EBITDA NPAT CI1 FY23 Statutory Results ($m) 392.8 174.2 28.5 19.0 Differences in measurement Acquisition and transaction costs (a) - 5.6 11.0 11.0 Adjustments relating to co-investments (b) - - - 2.4 Adjust
Slide 50: Notes to Statutory to Underlying Profit reconciliation
Notes to Statutory to Underlying Profit reconciliation Differences in Measurement and Classification rsonal use only d) The Underlying treatment records the net distributions received from the Lending Trusts in a) The Underlying treatment removes acquisition costs related to the acquisition of subsi
Slide 51: FY24 balance sheet – operating to Statutory reconciliation
FY24 balance sheet – operating to Statutory reconciliation 31 Dec 2024 31 Dec 2024 31 Dec 2024 31 Dec 2024 rsonal use only Summary Consolidated Balance Sheet ($M) Operating Lending Trusts1 Reclassifications Statutory Cash and cash equivalents 40.0 137.7 - 177.7 Loans receivable 10.4 4,525.5 - 4,535.
Slide 52: FY23 balance sheet – operating to Statutory reconciliation
FY23 balance sheet – operating to Statutory reconciliation 31 Dec 2023 31 Dec 2023 31 Dec 2023 31 Dec 2023 rsonal use only Summary Consolidated Balance Sheet ($M) Operating Lending Trusts1 Reclassifications Statutory Cash and cash equivalents 43.1 137.2 - 180.3 Loans receivable 6.2 2,082.6 - 2,088.8
Slide 53: Notes to operating balance sheet reconciliation
Notes to operating balance sheet reconciliation Lending Trust adjustments Reclassifications rsonal use only • The Group utilises non-recourse funding vehicles (Lending Trusts) typically in the form of • The reclassification adjustments seek to present the balance sheet on a net basis rather securiti
Slide 54: Group Underlying Profit & Loss – divisional summary
Group Underlying Profit & Loss – divisional summary Underlying Profit & Loss ($M) FY24 FY23 rsonal use only Revenue Asset Management 189.7 176.1 Lending & Technology 60.8 44.7 Corporate Advisory and Equities 55.7 48.3 Corporate 0.4 0.8 Total Revenue 306.6 269.9 Expenses Asset Management 106.5 93.9 L
Slide 55: Borrowings – operating
Borrowings – operating Borrowings ($M) Maturity date Coupon 31 Dec 2024 31 Dec 2023 rsonal use only MA IV Unsecured note Sep 2024 5.85% 0.0 40.0 MA VI Unsecured note Sep 2027 5.75% 25.0 25.0 MACI Bond Unsecured note – limited recourse May 2024 4.35% + RBA cash rate 0.0 30.0 MAFG Finance Note I Unsec
Slide 56: Shares on issue
Shares on issue rsonal use only Summary of Shares on Issue 31 Dec 24 31 Dec 23 Total shares on issue 181,342,954 178,331,811 Less: Treasury shares 20,485,532 18,437,383 Net shares on issue 160,857,422 159,894,428 Weighted average number of shares on issue 180,701,235 177,658,634 Less: Weighted avera
Slide 57: Appendix – Assets under Management
rsonal use only Appendix – Assets under Management
Slide 58: Core Real Estate AUM
Core Real Estate AUM Real Estate AUM of $2.0 billion following successful asset realisations rsonal use only $2.6b $2.5b $2.3b $2.2b $2.2b $2.0b 0.7 0.5 $1.5b $1.4b 1.6 1.5 $0.5b FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Retail Real Estate Diversified Real Estate 58
Slide 59: Alternative Real Estate AUM
Alternative Real Estate AUM Focus remains on MA Marina Fund with opportunities for expansion in FY25 $1.9b $1.9b rsonal use only $1.8b 0.3 0.3 $1.6b $1.3b $1.2b $1.2b $0.9b 1.6 1.6 $0.1b FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Hospitality Marinas 59
Slide 60: Private Credit AUM
Private Credit AUM Private Credit AUM continues to grow strongly driven by growth in Real Estate Credit funds and Global Credit $5.2b Solutions (including Priority Income Funds) rsonal use only $4.0b 2.3 1.7 $2.5b $1.6b 2.9 $1.1b $0.9b 2.3 $0.6b $0.3b $0.4b FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY
Slide 61: Listed Equities AUM
Listed Equities AUM Equities AUM continues to perform and remain stable despite subdued migration flows rsonal use only $0.9b $0.7b $0.7b $0.6b 0.1 0.1 $0.5b 0.1 0.1 $0.3b $0.2b 0.4 0.5 $0.1b $0.1b FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Small Caps Funds Index & REITs All Caps Funds 61
Slide 62: Growth Ventures (PE/VC) AUM
Growth Ventures (PE/VC) AUM Growth credit strategy gaining momentum with MA Sustainable Future Fund rsonal use only $0.5b 0.1 $0.4b 0.1 $0.3b $0.3b $0.3b 0.2 $0.2b $0.2b 0.2 $0.2b $0.1b 0.2 0.1 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 Private Equity Venture Capital Growth Credit 62
Slide 63: Disclaimer
Disclaimer The material in this presentation has been prepared by MA Financial Group Limited ACN This presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any rsonal use only 68 142 008 428 (MA Financial) and is general background information about MA Financial se