Slide 1: FY 2024 Results
FY 2024 Results Authorised by Andrew Bennett 28 August 2024 Group Chief Executive Officer
Slide 2: FY 2024 Financial Highlights
FY 2024 Financial Highlights COG’s strong performance continues Revenue1 EBITDA to shareholders2 $495.6m $37.1m +36% on pcp +9% on pcp NPATA to shareholders2 EPSA2 $24.2m 12.56cps +12% on pcp 3 flat on pcp +2% on pcp 1 Underlying revenue excludes interest income (FY24 $3.4m, FY23 $1.5m). Share of re
Slide 3: COG's strong performance continues (cont.)
FY 2024 Financial Highlights COG’s strong performance continues (cont.) Organic growth of volumes, with outstanding performance from our Novated Leasing segment Our primary sectors in the market, infrastructure and construction, have held up strongly in response to the 13 RBA cash rate increases (+4
Slide 4: Growth over time in EPSA and dividends
FY 2024 Financial Highlights Growth over time in EPSA and dividends Cents per share Final dividend declared of 4.4 cps (FY23: 4.7 cps ) 1 1 13.94 12.55 12.56 13.87 12.55 12.56 Payout ratio of 12.01 2 12.52 12.83 12.15 67.7% (FY23: 67.3% ) 2 10.87 8.30 8.40 8.40 7.22 5.95 5.72 Dividend yield 4.80 4.7
Slide 5: COG has a continuing history of successful acquisition and integration
Executing with Excellence COG has a continuing history of successful acquisition and integration Growth through more verticals 11 Broking and 4 Novated 3 Asset 1 Financial Aggregation Leasing Management Advisory & Lending Linx beCarWise Westlawn Centrepoint Alliance (20%) Heritage Fleet Network Equi
Slide 6: Diversity - A growing national business activity footprint
Executing with Excellence Diversity - A growing national business activity footprint NT 1 Broker firm 1 Broker 1,045 Novated Lease QLD Customers 1,696 Salary 163 Broker firms Packaging Customers 474 Brokers 674 Novated Lease Customers 1,507 Salary Packaging Customers WA 55 Broker firms SA 155 Broker
Slide 7: Record volumes continue through organic growth and acquisitions
Executing with Excellence Record volumes continue through organic growth and acquisitions +15% vs PCP $ millions $8.9bn net assets financed 4,532 4,274 in FY 2024 3,405 2,917 2,154 2,198 1,604 1,720 2H 1,403 3,284 3,404 4,321 2,041 2,365 2,242 1H 1,344 1,524 1,631 2016 2017 2018 2019 2020 2021 2022
Slide 8: Summary of Group financial results
Executing with Excellence Summary of Group financial results Revenue growth of $131.1m includes organic growth (+$88.0m) FY24 1 FY23 1 Pcp and contribution from acquisitions (+$48.4m), partially offset by the $m $m Change run-off of the TL Commercial Finance book (-$3.6m) and the fact Revenue2 495.6
Slide 9: Underlying NPATA to Shareholders
Executing with Excellence Underlying NPATA to Shareholders +2% In $ millions +10.8% +6.1% 9
Slide 10: Underlying NPATA to Shareholders by segment
Executing with Excellence Underlying NPATA to Shareholders by segment In $ millions FY24 FY23 (-) Less NPATA to (-) Less NPATA to diminishing shareholders diminishing shareholders contribution before share contribution before share NPATA to from TL of results in NPATA to from TL of results in 1 Segm
Slide 11: Segment performance
Segment performance Novated Leasing delivered outstanding results with Finance Broking & Aggregation and Asset Management & Lending continuing to report strong business volume growth in FY 2024 11
Slide 12: Australia's largest asset finance broker and aggregator
Australia’s largest asset Finance Broking & Aggregation finance broker and aggregator 21% Estimated market share1 1 Derived from information contained in the Commercial & Asset Finance Brokers Association of Australia (CAFBA) Aggregator Benchmark Report 2020 and the Australian Finance Industry Assoc
Slide 13: Organic volume growth continues despite a higher interest rate environment
Finance Broking & Aggregation Revenue growth of $55.0m includes organic growth (+$24.9m) and contribution from acquisitions (+$30.1m). Organic volume growth EBITDA margin contracted to 10.4% (FY23: 14.7%) and reflects (i) the lower margin contributions from the continues despite a higher recently ac
Slide 14: Novated Leasing and Salary Packaging continue to have strong momentum
Novated Leasing Novated Leasing and Salary Revenue growth of $65.8m includes organic growth (+$47.5m) and contribution from acquisitions (+$18.3m). Packaging continue to have EBITDA margin increased to 11.8% (FY23: 9.0%) and reflects the higher margin contribution from Paywise as strong momentum wel
Slide 15: Strong business originations continue
Asset Management & Lending (formally known as Funds Management & Lending) Strong business originations continue 1 Revenue growth of $12.0m reflects organic growth of $15.6m 2 2 (including organic growth contribution from Equity-One of FY24 FY23 Pcp $5.3m). This growth was partially offset by a lower
Slide 16: NPATA to shareholders
Asset Management & Lending (formally known as Funds Management & Lending) Asset management Equity-One Mortgage Fund Limited has provided significant contribution in the financial year (FY24: $4.7m, FY23: $3.2m NPATA to shareholders EBITDA to shareholders). Assets under management & Lending of $936.3
Slide 17: A Lending book concentrated on asset backed contracts
Asset Management & Lending (formally known as Funds Management & Lending) A Lending book concentrated on asset backed contracts Lending book Funding • New lease and loan originations in FY24 of $152.0m (FY23: • Established unsecured notes program operated by $110.8m) includes $118.5m of chattel mort
Slide 18: Strategic acquisition – acquired 20% of CAF in FY24
Other Strategic acquisition – acquired 20% of CAF in FY24 FY24 1 FY231 Pcp This Segment includes COG head office activities, Hal $m $m Change Group IT business (Divested in FY23) and our investments in Earlypay Limited (ASX: EPY) and Revenue 2 - 1.7 -100% Centrepoint Alliance Limited (ASX: CAF). EBI
Slide 19: Board of Directors and Management Team
About COG Board of Directors Patrick Tuttle Peter Rollason Stephen White Cameron McCullagh Mark Crain Chairman Non-Executive Director Non-Executive Director Executive Director Executive Director Management Team Andrew Bennett Richard Balzer Philip Mcleod Chief Executive Officer Chief Financial Offic
Slide 20: Efficient capital management and strong cash position
Capital management Efficient capital management Dividend (continued) For the year ended 30 June 2024, the Board declared a final dividend of 4.4 cents per fully and strong cash position paid ordinary share (FY23: 4.7 cents per fully paid ordinary share). The total dividend of $8.6m will be paid on 2
Slide 21: Capital management
Capital management Capital raising • Effective 30 November 2023, COG acquired a 20% equity interest in Centrepoint • On 12 April 2024 the Company issued 1,383,646 fully paid ordinary shares totalling Alliance Limited (ASX: CAF) for a cash consideration of $13.1m. CAF is a boutique $1.92m as part of
Slide 22: Capital management
Capital management Investments (continued) • On 11 July 2024, Paywise Pty Ltd (Paywise) (a wholly-owned subsidiary of Fleet Network) acquired a 100% controlling interest in the salary packaging business known as Community Salary Packaging (CSP) for a total consideration of $2.1m ($1.9m settled in ca
Slide 23: Looking Forward
Executing with Excellence Looking Forward • The Group’s Novated Leasing segment continues to deliver outstanding results. We expect significant ongoing organic growth as we continue to capture opportunities in this space. • The Group’s strong balance sheet with unrestricted cash of $90.8m will enabl
Slide 24: Disclaimer
Disclaimer COG Financial services Limited ('COG’) has not considered the financial position Investors should also note that COG’s past performance, including past share or needs of the recipient in providing this presentation ('Presentation'). Persons price performance, cannot be relied upon as an i
Slide 25: Appendices
Appendices 25
Slide 26: Statutory income statement
Appendices Statutory income statement FY24 FY23 Pcp Profit on disposal of assets reflects the gain $m $m Change recognised on the disposal of WIB Corporate Pty Revenue 1 499.0 366.0 36% Ltd (FY23: the disposal of the non-core HAL Group EBITDA from core operations 57.8 52.8 9% IT business in the 1H23
Slide 27: Reconciliation between statutory NPAT and underlying NPATA
Appendices Reconciliation between statutory NPAT and underlying NPATA Members and NCI 1 Members FY24 FY23 Variance FY24 FY23 Variance $m $m $m $m $m $m NPAT 24.2 18.0 6.2 12.9 8.1 4.8 Adjustments (after tax): Impairment 4.3 9.8 (5.5) 4.3 9.8 (5.5) Profit on disposal of assets (0.3) (0.3) - (0.1) (0.
Slide 28: Consolidated statement of financial position
Appendices Consolidated statement of financial position As at 30 Jun 30 Jun $m 2024 2023 Cash and cash equivalents increased by $23.9m mainly due to the sale of Cash and cash equivalents 125.7 101.8 receivables, increased salary packaging client funds and organic business Trade and other receivables
Slide 29: Consolidated statement of cash flows
Appendices Consolidated statement of cash flows FY24 FY23 $m $m Receipts from customers 548.4 386.6 Net cash inflow from operating activities includes $25.2m Payments to suppliers and employees (473.8) (332.6) (FY23: $25.6m) relating to the lease and loan products offered Dividends received 0.1 0.6
Slide 30: Acquisition history
Appendices Acquisition history Interest Date Company Activity Acquirer acquired Price Consideration Dec-15 Platform Consolidated Group (PCG) Aggregation platform and finance broker COG 60.0% $22.9m 76% cash / 24% equity Oct-16 Consolidated Finance Group Independent equipment finance aggregator COG 8
Slide 31: Acquisition history (cont.)
Appendices Acquisition history (cont.) Interest Date Company Activity Acquirer acquired Price Consideration Jun-21 Linx Acquisition of minority interests COG 4.9% $2.1m 75% cash / 25% equity Jul-21 Centrepoint Yeppoon Finance broker (QLD) DLV 100.0% $1.0m 100% cash 7 Nov-21 Westlawn Finance SME fina
Slide 32: Proportionate share of unrestricted cash attributable to members
Appendices Proportionate share of unrestricted cash attributable to members $ millions Proportionate share of unrestricted cash Total Restricted Unrestricted attributable to Cash cash1 cash Members2 Platform Group 40.9 (29.6) 11.3 6.7 QPF Group 5.5 - 5.5 2.8 Linx Group 2.0 - 2.0 1.0 Westlawn Group 5