Kelly Partners Group Holdings Ltd. · ASX:KPG
Kelly Partners — Shareholder Meeting (November 2018)
22 slides from Kelly Partners's shareholder meeting presentation, Nov 29, 2018
Slide 1: Kelly+Partners Group Holdings Limited (KPGH) AGM 2018
Kelly+Partners Group Holdings Limited (KPGH) CEO Presentation AGM 2018 ASX: KPG 29 NOVEMBER 2018 Copyright © 2018 Kelly + Partners All Rights Reserved. Transforming the SME accounting market
Slide 2: Disclaimer
Disclaimer —— SUMMARY INFORMATION This document has been prepared by Kelly Partners Group Holdings Limited ACN FORWARD LOOKING STATEMENTS 124 908 363 (Company). This document contains information in a summary form This document contains certain “forward-looking” statements. Forward-looking and gener
Slide 3: Tom Murphy quote on arriving at the station first
“The goal is not to have the longest train, but to arrive at the station first using the least fuel” Tom Murphy, Chairman & CEO Capital Cities/ABC Inc.
Slide 4: Kelly+Partners is unique
Kelly+Partners is unique ASX Perspective 1. Focus – Accounting and tax revenues (>95%) 2. Management expertise (Accountants running an Capital smart accounting group) approach 3. Operating margins 4. Owner-driver, not rollup (debt at a subsidiary level, not at Hold Co) 5. Owners not promoters Transf
Slide 5: Table of Contents
Table of Contents Section 1: FY18 Results - Overview Section 2: FY18 Results - Financial Information Section 3: Strategy and Outlook Transforming the SME accounting market 3
Slide 6: Board of Directors
Board of Directors Brett Kelly Stephen Rouvray Pauline Michelakis Paul Kuchta Ryan MacNamee Chairman & CEO Independent Deputy Chairman Executive Director Executive Director Independent Deputy Chairman and Non-Executive Director and Non-Executive Director Transforming the SME accounting market 4
Slide 7: Section 1: FY18 Results - Overview
Section 1: FY18 Results - Overview
Slide 8: FY18 Financial Highlights
FY18 Financial Highlights Growth in businesses has contributed to a strong FY • Kelly+Partners FY18 Profit Climbs 20%. • Strong growth in Underlying FY18 P&L metrics. • Underlying revenue is up 11% on prior year and 8% on Prospectus. • KPG has exceeded Prospectus forecasts for FY18. Consolidated Und
Slide 9: FY18 Revenue Growth
FY18 Revenue Growth Organic growth has driven strong revenue increase FY18 revenue increased by 11% on prior year, driven mainly by organic growth in established and growth businesses, as well as contributions from start-up businesses and new service lines (Finance, Corporate Advisory, Government an
Slide 10: FY18 Revenue Growth
FY18 Revenue Growth Organic growth has driven strong revenue increase Other Services Startups 4% 4% Organic No. of Stage of Business Revenue size Revenue Revenue businesses growth* Growth 19% Established >$2m 5 $29,052,985 7.8% Growth $1m to $2m 5 $7,648,503 14.8% Startups <$1m 4 $1,458,651 14.1% Ot
Slide 11: FY18 Prospectus Strategy Delivered
FY18 Prospectus Strategy Delivered ORGANIC NETWORK EXPANSION NEW SERVICES 1. 2. 3. 4. 5. ORGANIC ACQUISITION – ACQUISITION - GREENFIELDS NEW SERVICES GROWTH TUCK IN MARQUEE Wealth Management No new business No new business No new greenfield Providing wealth acquisitions were acquisitions were busine
Slide 12: Section 2: FY18 Results – Financial Information
Section 2: FY18 Results – Financial Information
Slide 13: FY18 Underlying Income Statement
FY18 Underlying Income Statement Group continues to drive growth in P&L Strong growth in the Underlying profit metrics in FY18 was driven by: • strong organic growth across the Kelly+Partners network; • addition of new complementary services (Finance, Corporate Advisory, Government, Investment Offic
Slide 14: FY18 Balance Sheet & Cash Flow
FY18 Balance Sheet & Cash Flow Balance sheet and cashflow remains strong • Equity attributable to KPGH shareholders has increased in FY18 by 27% • Net debt vs full year revenue gearing at 29%, significantly under bank approved maximum debt capacity of 60% (potential undrawn debt capacity of approx.
Slide 15: Dividends Per Share
Dividends Per Share Consistent quarterly dividend payments since listing • 4 x quarterly dividends at 1c per share each fully franked were declared and paid • The dividend payments are in line with the dividend policy Total dividends paid Amount per security Franked amount per Cents security Cents F
Slide 16: Section 3: Strategy and Outlook
Section 3: Strategy and Outlook
Slide 17: Ageing Population in Australia
Ageing Population in Australia Transforming the SME accounting market 17
Slide 18: Succession Statistics – Exiting the business
Succession Statistics – Exiting the business • Percentage of firms that will have a Director/partner intending to exit/retire In the following time periods? 10,240 firms in NSW Time 2017 2018 Next 12 months 7% 9% 1-2 Years 9% 10% 2-3 Years 7% 12% 3-5 Years 23% 33% 10,240 firms in NSW total No direct
Slide 19: FY19 Growth Plan
FY19 Growth Plan ORGANIC NETWORK EXPANSION NEW SERVICES TOTAL 1. 2. 3. 4. 5. ORGANIC ACQUISITION – ACQUISITION - GREENFIELDS NEW SERVICES GROWTH TUCK IN MARQUEE Actively seek 1. Bathurst 1. Inner West opportunities to • Wealth Management Target top line organic growth of 2. Parramatta 2. Bondi Junct
Slide 20: Targeted locations – 2019/2021
Targeted locations – 2019/2021 NSW Transforming the SME accounting market 20
Slide 21: Key Dates
Key Dates —— FY18 Financial Results 27 August 2018 Q1 Dividend 30 October 2018 Annual General Meeting 29 November 2018 Q2 Dividend 31 December 2018 28 February 2019 1H19 Financial Results Q3 Dividend 29 March 2019 Q4 Dividend 1 July 2019 Transforming the SME accounting market 21
Slide 22: Questions?
Questions? KELLY + PARTNERS
Kelly+Partners Group Holdings — Shareholder Meeting (November 2018) on 6ix