Prime Financial Group Limited · ASX:PFG
Prime Financial — Investor Presentation (August 2023)
24 slides from Prime Financial's investor presentation, Aug 22, 2023
Slide 1: Full Year 2023 (FY23) Results Presentation
Full Year 2023 (FY23) Results Presentation Prime Financial Group Ltd (ASX:PFG)
Slide 2: Connecting Aspirations, Opportunities & Expertise
Connecting Aspirations, Opportunities & Expertise We are a market leading Advice, Capital & Asset Management Group. We believe in uncapped opportunities and are committed to creating prosperous and sustainable financial futures for all. $1.1B FUM 150+ Team Members Global Footprint 4 Service Lines 25
Slide 3: FY23 Overview & Highlights
FY23 Overview & Highlights Prime Financial Group Full Year FY23 Presentation | 3
Slide 4: Delivering on Growth
Delivering on Growth Our goal is to double revenue from $26M in FY22 to $50M in FY25 And then double revenue again to $100M within 3-5 years $120 M X2 Organic Growth 3-5 Years Organic growth realised across all service lines $100 M • Wealth Management • Capital & Corporate Advisory $80 M X2 • Accoun
Slide 5: Financial Highlights: FY23 – Delivering to Plan
Financial Highlights: FY23 – Delivering to Plan +28% to +11% to 26% $33.7M $8.6M Underlying EBITDA EBITDA Margin Revenue (members/shareholders) +15% +36% 1.1 x Underlying 2.22 cps 1.50 cps EBITDA to Net Debt Ratio Reported Earnings Per Full year dividend up $9.47M Share (EPS) Prime Financial Group F
Slide 6: Financial Results FY23
Financial Results FY23 Prime Financial Group Full Year FY23 Presentation | 6
Slide 7: Prime’s 5-year Performance
Prime’s 5-year Performance FY19 FY20 FY21 FY22 FY23 CAGR** Underlying EBITDA to members/shareholders ($000’s)* 4,099 5,533 6,778 7,770 8,619 20% Reported profit/(loss) after tax attributable to members/shareholders 1.3 2.1 3.1 3.8 4.4 36% ($M) Basic earnings per share (cents) 0.77 1.21 1.69 1.93 2.2
Slide 8: Profit & Loss
Profit & Loss Investment in business driving strong growth Financial Highlights* FY22 FY23 Change • 28% revenue growth Underlying • 19% organic growth Revenue - Contracts with Customers $26.2M $33.7M 28% • 9% via acquisition Expenses - Employee ($13.8M) ($17.6M) -28% • Margin reduced due to investme
Slide 9: Revenue Growth
Revenue Growth % Revenue Growth 80%+ of total revenue is +28% $M Total Revenue generated from existing clients on a recurring basis +18% Revenue growth has accelerated over the past 2 +4% $33.7M years vs the prior periods $50M $50M On target to achieve $50M $21.5M in revenue by FY25 FY20 FY21 FY22 F
Slide 10: Revenue Growth By Service Line
Revenue Growth By Service Line FY20 FY21 FY22 FY23 $14M OneConnected Group +14% Vs FY22 Growing revenue four ways; $12M • Organically +15% • New revenue contributors Vs FY22 $10M • New service lines • Acquisitions $8M +42% Vs FY22 +102% $6M Vs FY22 $4M $2M $0M Wealth Management Capital and Corporate
Slide 11: Underlying EBITDA and Margin
Underlying EBITDA and Margin Investing for Future Growth – Proven Model Underlying EBITDA FY20 – FY23 +11% $M EBITDA • FY23 included investments in building out service +15% offerings in Debt Capital Advisory and ESG % EBITDA growth Consulting, plus expanding the Wholesale +23% Investor Service • In
Slide 12: Balance Sheet, Group Net Debt & Cashflow
Balance Sheet, Group Net Debt & Cashflow At 30 June 2022 At 30 June 2023 Group Balance Sheet $ $ Cash 0.1 1.0 Total assets 59.8 67.1 Group Net Debt/Underlying EBITDA Borrowings (5.4) (10.5) increased to 1.1 x given the acquisition of Total liabilities (13.1) (17.8) SMSF entity (Intello) Net assets 4
Slide 13: Dividends
Dividends Dividends FY20 – FY23 Cents per share 1.50 cps • FY23 final dividend declared of 0.80 cps (fully franked) vs final dividend of 1.10 cps 0.60 cps in FY22 (+33%) • FY23 payout ratio of 68% of reported 0.70 cps NPAT (members/shareholders) 0.80 0.0 0.45 cps 0.70 0.60 • Target dividend payout
Slide 14: Business Strategy & Outlook
Business Strategy & Outlook Prime Financial Group Full Year FY23 Presentation | 14
Slide 15: Strategy for Growth
Strategy for Growth 1. Topline Growth 2.New Margin Expansion 3. Balance Sheet Strength Revenue • Organic growth in existing service lines and • Contributors Efficiencies driven by centralised operations • Accretive acquisition strategy new services and a shared services model • Funding capability to
Slide 16: Our Commitment to Impact
Our Commitment to Impact As we accelerate our growth, we do so with a commitment to impactful corporate citizenship, and the planet in mind, all contributing to creating a just world today and for generations to come. We will do this by working with our people, partners, clients and the communities
Slide 17: Our Commitment to Ownership
Our Commitment to Ownership Our people are our biggest asset • Currently 45% of our company is owned by the team 45% • We encourage our staff to have an ‘ownership’ mentality and to work collaboratively, enabling them to help co-create the firm of the future Staff & Associates • We do this through o
Slide 18: Outlook FY24 - Continuing to Deliver Results
Outlook FY24 - Continuing to Deliver Results 1 2 3 4 Strong Organic Delivering Scale FY24 Growth Accretive Efficiencies to Driving Growth Acquisitions Drive Earnings in Revenue, Earnings & Dividends • Organic growth to be • Funding capability • Investment in team • Revenue +15-20% driven across core
Slide 19: Appendices
Appendices Prime Financial Group Full Year FY23 Presentation | 19
Slide 20: EBITDA & NPAT
EBITDA & NPAT $’000 AUD FY22 FY23 Reported net profit after tax from operations (Group) 4,448 4,983 Add: Tax expense 1,407 1,694 Add: Interest expense/(income) 322 706 EBIT (Group) 6,177 7,383 Add: Depreciation 49 71 Add: Amortisation 1,546 1,696 Reported EBITDA (Group) 7,771 9,150 Reconciliation of
Slide 21: Experienced Board
Experienced Board Simon Madder Tim Bennett Matt Murphy Chief Executive Officer, Managing Director & Executive Director (effective 3 July 2020) & Executive Director (effective 3 July 2020) Chairman Managing Director – Capital & Corporate Advisory • Co-founder, Managing Director & CEO of • Established
Slide 22: Management Team
Management Team Angelina Rigoli Mark Johnson Melissa Pascoe Yasmin Omar-Meer Wealth Wealth & Asset Management SMSF Head of Distribution Ben Priestley Peter Bergin Alicia Sanders Nat Simmons Richard Sheehan Head of Finance M&A and Finance Group General Manager & Strategy, Marketing & ESG Chief Techno
Slide 23: CONTACT
CONTACT Simon Madder Ben Priestley Eric Kuret CEO, Managing Director & Chairman Head of Finance & Investor Relations Automic Markets Prime Financial Group Ltd Prime Financial Group Ltd T (03) 9827 6999 T (03) 9827 6999 T (61) 417 311 335 E simonm@primefinancial.com.au E benp@primefinancial.com.au E
Slide 24: Important Notice & Disclaimer
Important Notice & Disclaimer This investor presentation (Presentation) has been prepared by Prime Financial Disclaimer Group Limited (‘Prime’). No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and Summa
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