Slide 1: Half Year Results Presentation and Investor Discussion Pack
ASX announcement CountPlus Limited For personal use only 2021 Contact Details Matthew Rowe Chief Executive Officer and Managing Director 02 8218 8778 Half Year Results matthew.rowe@countplus.com.au Presentation and Investor Discussion Pack Laurent Toussaint Chief Financial Officer 02 8218 8778 laure
Slide 2: Contents
Contents For personal use only Important information 3 CountPlus 1H2021 Summary 4 CountPlus Financial Track Record 5 CountPlus Headline Results 6 CountPlus Profit Reconciliation 7 Underlying Trading Performance Reconciliation 8 CountPlus Segment Report 9 CountPlus Cash Flow Bridge 10 Partner Firms –
Slide 3: Important information
Important information For personal use only This presentation is provided for information purposes only. The information in this Certain statements in this presentation may constitute forward-looking statements or presentation is in a summary form, does not purport to be complete and is not statemen
Slide 4: CountPlus 1H2021 Summary
CountPlus 1H2021 Summary For personal use only EBITA $8.875M (1H2020 $5.091M, 74% increase) Adjusted net profit attributable to CountPlus shareholders $4.082M (1H2020 $2.472M, 65% increase) Firm average profit margin maintained at 20% in 1H2021 excluding Government assistance Government assistance (
Slide 5: CountPlus Financial Track Record
CountPlus Financial Track Record Improved earnings; strengthened cash position For personal use only Note: 1H21 excludes JobKeeper Results Presentation 1H21 5
Slide 6: CountPlus Headline Results
CountPlus Headline Results Building for the future For personal use only Financial Results summary 1H21 1H20* Movement $’000 $’000 $’000 % Revenue from operating activities 42,278 38,852 3,426 9 Adjusted Earnings before interest, tax and amortisation (“EBITA”) 8,875 5,091 3,784 74 Adjusted Net profi
Slide 7: CountPlus Profit Reconciliation
CountPlus Profit Reconciliation Statutory profit reconciliation For personal use only Financial Results summary 1H21 1H20* Movement $’000 $’000 % change Net profit after tax – Reported 5,547 11,934 Deduct: Gain on bargain purchase – (10,952) Add: One-off M&A transaction costs – 215 Add: Transition C
Slide 8: Underlying Trading Performance Reconciliation
Underlying Trading Performance Reconciliation For personal use only Underlying trading performance 1H21 1H20 Movement $’000 $’000 $’000 % change EBITA – Per Headline Results 8,875 5,091 3,784 74 Total Government assistance included in the consolidated financial results (2,699) – (2,699) n/a EBITA –
Slide 9: CountPlus Segment Report
CountPlus Segment Report Acquisitions including Count Financial have improved group profitability For personal use only Subsidiary Share of Other, Accounting Associates corporate, 1H21 Firms earnings AFSL consol adj. Total $’000 $’000 $’000 $’000 $’000 Revenue 33,716 n/a 8,222 340 42,278 Contributio
Slide 10: CountPlus Cash Flow Bridge
CountPlus Cash Flow Bridge Strong cash flow building capacity for further acquisitions For personal use only Cash flow bridge – 1 July 2020 to 31 December 2020 Operating cash flows reconciliation 1H21 1H20 Movement $’000 $’000 % Cash flow from operating activities – Reported 6,103 1,687 Add: Transit
Slide 11: Partner Firms – 100% aggregation – Core Accounting Firms
Partner Firms – 100% aggregation – Core Accounting Firms Underlying firm performance continues to improve with ongoing margin expansion For personal use only Pro forma P&L analysis 1H21 1H20 Movement Key points to note: • This analysis is prepared by aggregating all $’000 $’000 % CountPlus entities
Slide 12: Dividends
Dividends Dividend maintained at 1.25 cents per share for 1H2021 For personal use only • 1H21 dividend of 1.25 cents per share, fully franked (consistent with the same period last year). • Target dividend pay-out ratio of 60% to 90% of maintainable net profit after tax attributable to CountPlus shar
Slide 13: Count Financial
Count Financial For personal use only Results Presentation 1H21 13
Slide 14: Financial services – segment analysis
Financial services – segment analysis Breakdown of AFSL results for 1H21 and 1H20 For personal use only Financial Services Segment prior year adjustments 1H21 1H20 Movement $’000 $’000 $’000 % Statutory EBITA 1,610 (1,176) Add: Transition Costs – Count Financial* – 2,102* Adjusted EBITA – Financial
Slide 15: Count Financial Operational Update
Count Financial Operational Update Count Financial is focused on efficiencies in the advice value chain. For personal use only Focus on productive and sustainable firms • Gross Business Earnings per Financial Adviser has increased 38% since acquisition on 1 October 2019. • Average Funds Under Admini
Slide 16: Count Financial Operational Update
Count Financial Operational Update Count Financial is building a solid foundation of high-quality, sustainable financial advice firms For personal use only • Count Financial is seeking to enhance its business by servicing high- quality, sustainable advice firms. Firms that fit this profile demonstra
Slide 17: Count Financial Operational Update
Count Financial Operational Update Count Financial has a strong pipeline of recruitment opportunities in a dislocating advice market For personal use only Count has a strong pipeline of recruitment opportunities Adviser recruitment pipeline • Selection and recruitment standards for new firm entrants
Slide 18: Strategy Update: Operating Environment and Opportunities
CountPlus Limited Operating Environment and Opportunities For personal use only Strategy Update Results Presentation 1H21 18
Slide 19: Accounting Operating Environment
Accounting Operating Environment A mature market segment For personal use only • Total revenue of the sector is $20.2 Bn (49.1% Audit, 18.0% Advisory, 20.1% Tax Services, 10.0% SMSF, 2.8% bookkeeping) (Source: IBISWorld, October 2020). • 31,783 Accounting Firms in Australia (Source: IBISWorld, Octob
Slide 20: Financial Advice Operating Environment
Financial Advice Operating Environment A dislocating market segment For personal use only • 19,082 Financial Advice Firms in Australia. (Source: IBISWorld, October 2020). • Annual Revenue Growth between 2016 and 2021 was -2.6%. Expected Annual Growth 2021–2026 +1.2% (Source: IBISWorld, October 2020)
Slide 21: Core Related Priorities
Core Related Priorities CountPlus is exploring several core related opportunities For personal use only Core Related Diversification Core Related Earnings Investment into activities that are • Subscription style revenue or margin concerned with inputs / outputs share style revenue. (downstream) into
Slide 22: Core Firm: Owner, Driver – Partner
Core Firm: Owner, Driver – Partner Continue to build out the firm network For personal use only Tuck-In acquisitions by existing Firms Investment in OD-P Firms Tuck-ins have been highly earnings accretive for member firms and in the Under our revamped OD-P model, we have consistently achieved circa
Slide 23: What sets us apart
What sets us apart Strong vision, backed by values-led execution For personal use only Our Vision Our Values Strategic Drivers and Key Goals To become Australia's leading network of Trust Clients Focus professional accounting and advice firms, Earned through character, competence and We deliver advi
Slide 24: CountPlus wholly-owned subsidiaries, partially owned subsidiaries and associates
Appendix 1 CountPlus operating wholly-owned subsidiaries, partially owned subsidiaries and associates For personal use only No. Partner Firm Shareholding No. Partner Firm Shareholding Wholly-owned subsidiaries % Partly-owned subsidiaries % 1. Addvantage Financial Freedom Pty Ltd 100.00 8. Bentleys (
Slide 25: Segmental profit reconciliation – 1H21
Appendix 2 Segmental profit reconciliation – 1H21 For personal use only Significant Underlying Significant Underlying 1H21 Reported Amortisation items earnings 1H21 Reported Amortisation items earnings $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Subsidiary accounting Share of Associates 1,753 –
Slide 26: Segmental profit reconciliation – 1H20
Appendix 2 continued Segmental profit reconciliation – 1H20 For personal use only Significant Underlying Significant Underlying 1H20 Reported Amortisation items earnings 1H20 Reported Amortisation items earnings $’000 $’000 $’000 $’000 $’000 $’000 $’000 $’000 Subsidiary accounting Share of Associate
Slide 27: Prior year Half Year restatement reconciliation
Appendix 3 Prior year Half Year restatement reconciliation due to provisional accounting of the gain on bargain purchase For personal use only 1H20 1H20 currently previously Financial Results summary presented presented Movement $’000 $’000 % Net profit after tax – Reported 11,934 13,459 (1,525) (11