Fiducian Group Ltd · ASX:FID
Fiducian — Investor Presentation (November 2017)
40 slides from Fiducian's investor presentation, Nov 9, 2017
Slide 1: Fiducian Group Investor Presentation
Fiducian Group (ASX: FID) Investor Presentation Wilson Investors Briefing 9 November, 2017
Slide 2: New South Wales Office Locations
New South Wales Office Locations Abbotsford Ballina Bathurst Bondi Junction (x2) Castle Hill Caves Beach Coffs Coast Gosford Hunter Kellyville Ku-ring-gai Lane Cove Macarthur Manly Newcastle Ourimbah Randwick Roseville Southern Highlands St Ives Sydney CBD Tweed Heads Walcha Windsor Tamworth
Slide 3: Fiducian Group FY 2017
Fiducian Group FY 2017 •FY 2017 Highlights • Business Overview • Financials • FY2018 Update • Growth Strategy and Business Outlook • Contacts 3
Slide 4: FY 2017 Highlights
-Y 2017 Highlights SS. UNPAT up FUMAA up Dividends up 24% 20% 28% to $8.7mil to $5.7bil to 16.00 cents ie) Staff eS ' A © around Australia @ A @ Aligned Planners Flagship funds performance ranking from over 20 aa as & Associates for three years to 30 June 2017 Alia different countries against all fu
Slide 5: Victoria Office Locations
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Slide 6: Fiducian Group FY 2017
Fiducian Group FY 2017 • FY 2017 Highlights •Business Overview • Financials • FY2018 Update • Growth Strategy and Business Outlook • Contacts 6
Slide 7: Business Overview: Management
Business Overview Profit Generating Sustainable Business Model Management • Process driven, client focused investment products • 15 Managed Funds: 4 Diversified Funds, 4 Sector Funds, 7 Specialist Funds Funds • $2.13 Billion in Funds under Management (FUM) • Listed comparables include PTM, IFL, PPT,
Slide 8: Funds Management
Business Overview Funds Management • 15 Funds using Fiducian’s Manage-the-Manager (MTM) system of Investment • Select expert Fund Managers – with proven performance and differing investment processes plus styles • Combine experts with different weightings – up to 37 Fund Managers • Dynamic asset all
Slide 9: Funds Management – add NZ award
Business Overview Funds Management – add NZ award Fiducian Funds 1-year return 3-year return 5-year return (ranking) p.a. (ranking) p.a. (ranking) p.a. Growth 9.9% (12/205) 9.9% (1/195) 12.1% (2/181) Balanced 8.6% (40/205) 8.9% (5/195) 10.8% (5/181) Ultra Growth 7.2% (121/130) 11.5% (2/118) 14.4% (2
Slide 10: WRAP Platforms (FSS/FIS) – FASTrack System
Business Overview WRAP Platforms (FSS/FIS) – FASTrack System • Public offer “Superannuation Fund” • Investor Directed Portfolio Service (IDPS) 15 – Multimanager Funds using the Fiducian Manage-the- Manager system 57 – Single Manager Fund Choices 4 – Managed Discretionary Accounts ( Direct Share Owne
Slide 11: Financial Planning
Business Overview Financial Planning We are selective in recruiting Financial Planners. National footprint with 44 practices, 67 representatives 38 Franchise Offices 6 Salaried Offices Total 67 Authorised Representatives Focus is on Quality and Expertise Market Segment: Financial Planning / Wealth
Slide 12: FinTech (FORCe & FASTrack)
Business Overview FinTech (FORCe & FASTrack) Financial Reporting WRAP Fiducian Planning Administration Online Software FASTrack Financial Investor Planner Market Segment: Fintech (IT Development) 12
Slide 13: Integrated Business Model
Business Overview Integrated Business Model Our clients experience the Fiducian difference: Administration / Financial Funds Management Platforms Planning $2.13 bil $1.72 bil $2.21 bil FY 16-17 Gross Revenue $40.7 mil Fiducian Integrated Business Model FUMAA $6.06 bil Note: FUMAA figures are as at 3
Slide 14: Queensland Office Locations
Queensland Office Locations Buderim Caboolture Gold Coast Sunshine Coast Wk = a re
Slide 15: Fiducian Group FY 2017
Fiducian Group FY 2017 • FY 2017 Highlights • Business Overview •Financials • FY2018 Update • Growth Strategy and Business Outlook • Contacts 15
Slide 16: FY 2017 Results: Financial Highlights
Financials FY 2017 Results: Financial Highlights 16
Slide 17: FY 2017 Results: 24% UNPAT Growth
Financials FY 2017 Results: 24% UNPAT Growth Revenue increase from Organic & Inorganic inflows plus increased financial market valuations Funds Management, Administration and Financial Advice performed strongly Service provider costs increased to provide for higher revenue Staff and Other co
Slide 18: FY 2017 Results: Segment update
Financials FY 2017 Results: Segment update Funds Revenue for the year is $10.1 mil Management Top quartile performance has driven significant inflows Benefitting from scaled fees from underlying managers Revenue for the year is $15.0 mil Administration Operational efficiencies through scale benefits
Slide 19: Five Year Summary: Financials
Financials Five Year Summary: Financials Sustainable growth history consistently over long term
Slide 20: Five Year Summary: Revenue & EPS
Financials Five Year Summary: Revenue & EPS Top-line Revenue Growth: 17% annualised EPS Growth: 24% annualised Economic Leverage: EPS Growth faster than Revenue Growth Sustainability: Double-digit EPS growth in 14 out of 18 years since listing Sustainable growth history consistently over l
Slide 21: Five Year Summary: Expenses
Financials Five Year Summary: Expenses Expanding Jaws: Revenue growth faster than Expense growth Improving Cost To Income (CTI) Ratio: from 70% in 2013 to 60% in 2017 Carefully managed expenses to support growth in infrastructure and revenue generating functions Sustainable growth history co
Slide 22: Five Year Summary: Dividends
Financials Five Year Summary: Dividends Dividend Growth: 24% annualised Board maintains 60%-70% pay-out ratio based on NPAT FY17 full year dividend 16.00 cents Final dividend 8.90 cents per share held on 30/08/17 and payable on 13/09/17 Sustainable growth history consistently over long ter
Slide 23: Five Year Summary: Balance Sheet
Financials Five Year Summary: Balance Sheet Stable Cash position in excess of regulatory requirement of $5.1 mil to support growth initiatives Significant reinvestments into business: $15.8 mil client acquisitions through aligned planners Net Assets Growth 11% annualised Sustainable growth h
Slide 24: Net Fund In-Flows in Platform
Financials Net Fund In-Flows in Platform Net In- Flows of $171 mil during FY17 Both Salaried and Franchised networks contributing to the Inflows Combination of organic flows from active referrals and inorganic flows from strategic acquisitions 24
Slide 25: Funds Under Management, Administration and Advice (FUMAA) Growth
Financials Funds Under Management, Administration and Advice (FUMAA) Growth Consistent FUMAA growth contributed by strong organic and inorganic inflows and market improvements $97 mil acquisition by Fiducian for Franchisees and salaried offices: strengthens retention Increase in FUA as proport
Slide 26: Five Year: FID vs All Ord
Financials Five Year: FID vs All Ord Since Jun 12, FID has outperformed All Ord by 497% (including dividend) 26
Slide 27: Tasmania Office Locations
Tasmania Office Locations Devonport Hobart Launceston
Slide 28: Fiducian Group FY 2017
Fiducian Group FY 2017 • FY 2017 Highlights • Business Overview • Financials • FY 2108 Update • Growth Strategy and Business Outlook • Contacts 28
Slide 29: FY 2018 Update
Growth Strategy and Business Outlook FY 2018 Update Strong Cash Flow in line with expectations for Jul – Sep 17: • $12.8 mil Receipts from Customers • $2.8 mil Net Operating Cash Flow after expenses and tax • $9.6 mil Cash at end of the period Financial Planning Acquisition Strategy and Organic
Slide 30: Fiducian Group
Fiducian Group • FY 2017 Highlights • Business Overview • Financials • FY 2018 Update •Growth Strategy and Business Outlook • Contacts 30
Slide 31: Growth Strategy
Growth Strategy and Business Outlook Growth Strategy Funds Leverage of successful Manage-The-Manager Management model and expand in new markets where profitable Distribute SMA capabilities and offer Badged solutions Administration to IFA market Financial Continue to attract high quality planners and
Slide 32: Business Outlook – Revenue Streams
Business Outlook – Growth Strategy and Business Outlook 3 Revenue Streams Revenue Growth is a function of volume of FUMAA Example: Financial Funds Platform Planning Under FUMAA 3 Admin Advice Management Growth Revenue increase increases Increases $300 mil Streams $100 mil $100 mil $100 mil Plus, add
Slide 33: Projecting the Potential: Conceptual Representation
Growth Strategy and Business Outlook Projecting the Potential: Conceptual Representation The following is a concept extrapolation* of how increasing scale lifts EBITDA at an accelerating rate above a relatively fixed cost base: Funds under Management, Administration and Advice (FUMAA) & EBITDA This
Slide 34: Outlook
Growth Strategy and Business Outlook Outlook • Grow Funds Under Advice organically and through strategic acquisitions of financial planning businesses • Expand platform administration services to IFAs and capture market share where value accretive • Build SMSF Admin and Accounting Services • Continu
Slide 35: Western Australia Office Location
Slide 36: Fiducian Group FY 2017
Fiducian Group FY 2017 • FY 2017 Highlights • Business Overview • Financials • Growth Strategy and Business Outlook •Contacts 36
Slide 37: Australian Capital Territory Office Location
Australian Capital Territory Office Location Canberra
Slide 38: Contacts
Contacts Investor Relations: Rahul Guha 02 8298 4600 rahulguha@fiducian.com.au Media Relations: Julie Hargrave 02 8298 4621 juliehargrave@fiducian.com.au 38
Slide 39: South Australia Office Location
South Australia Office Location - Adelaide City Central [28 r
Slide 40: Important Notice and Disclosure
Important Notice and Disclosure The material and information contained in this presentation is general background information about Fiducian Group Limited’s (Fiducian) activities. This information is an incomplete summary and should be read in conjunction with previous ASX announcements and all fina
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