Prime Financial Group Limited · ASX:PFG
Prime Financial — Shareholder Meeting (November 2008)
15 slides from Prime Financial's shareholder meeting presentation, Nov 25, 2008
Slide 1: Annual General Meeting Presentation – 25 November 2008
For personal use only Annual General Meeting Presentation – 25 November 2008 Presented by – Simon Madder (Managing Director & CEO) National Financial Services & Advisory Group
Slide 2: Results Overview - 2008
Results Overview - 2008 For personal use only 2008 Full Year net profit after tax (NPAT) = $6.82M ( ( 33% over pcp) pcp) - Up from $5.12M in 2007 2008 Full Year dividend = 2.8cps ( ( 22% over pcp) pcp) - Up from 2.3cps in 2007 - Dividend paid on 14 October 2008 Positive operating cash flow of $6.2M
Slide 3: Key Points – 2008
Key Points – 2008 For personal use only Financial Planning, Self Managed Super & Accounting Services - Growth & Increased Contribution - Contributed 108% of result, up from 76% in the pcp Funds Management (FM) & Listed Investments (ASOF) - Negative Contribution - Contributed (8%) of result, down fro
Slide 4: Key Points – 2008
Key Points – 2008 For personal use only Divested Non- Non-Core Businesses & Investments - 3 in total - Listed Investments (ASOF), Corporate Advisory & GPCA Continued Integration with Carroll Pike & Piercy Pty Ltd (CPP) Last 12 months - Confirms strength of business model - Profit grew 33% in 2008 ev
Slide 5: Financial Information
Financial Information For personal use only Financials (2005, 2006, 2007 & 2008) 2005 2006 2007 2008 % Increase Earnings before interest & tax (EBIT) ($M) 0.60 2.51 7.49 9.11 22% Net profit after tax ($M) 0.57 1.90 5.12 6.82 33% Dividend paid & proposed ($M) 0.39 1.27 3.11 3.80 22% Basic earnings (c
Slide 6: Operations & Investments - 2008
Operations & Investments - 2008 For personal use only Financial Planning & Self Managed Superannuation - 80 – 90% of earnings - Retail Financial Planning & Private Client Advice (Prime & CPP) - White Label 50 / 50 equity & distribution agreements with 30 Accounting Firms Accounting Services Investme
Slide 7: Profit Contribution
Profit Contribution For personal use only % of Prime's Profit Share 100% 80% 60% 90% 40% 64% 20% 18% 12% 10% 13% 0% -6% 2007 2008 2007 2008 -2% 2007 2008 2007 2008 -20% Financial Planning Accounting Funds ASOF & SMSF's Services Management Note: % differential in 2007 accounts for Corporate Advisory,
Slide 8: Financial Planning & Self Managed Super
Financial Planning & Self Managed Super For personal use only Continuing New Client Growth - Access to + 40,000 potential clients, base of organic growth for past 7 – 8 years & going forward - Mandated growth in FUM through SG - ‘Choice’ for clients (MF’s, Direct Equities, Platform or not, various i
Slide 9: Financial Planning & Self Managed Super: SMSFs
Financial Planning & Self Managed Super For personal use only SMSF’ SMSF’s - Expected to be largest sector of Super by 2015 (Fastest growing area) - Currently Advise on + 800 SMSF’s - Administer + 4,000 in the group (Increase penetration - Accountants & Planners working together) - Establish SMSF’s
Slide 10: Accounting Services
Accounting Services For personal use only Prime’ Prime’s 7 Accounting Services Investees performed well during the year - 2 performed inline with minimum profit expectations - 3 grew at 5 – 10% - 2 exceeded 20% Hedge against equity market conditions & effect on ‘ongoing fees’ fees’ Typically Account
Slide 11: Financial Planning & Self Managed Super - 2009
Financial Planning & Self Managed Super - 2009 For personal use only Financial Planning & Self Managed Super - Generally consistent level of new client meetings versus pcp - New Business revenue lower (approx 30%) – Clients hesitant - ‘Direct Equities’ New Business inflows with ongoing fees more pop
Slide 12: Accounting Services - 2009
Accounting Services - 2009 For personal use only Prime’ Prime’s 7 Accounting Services Investees performing well - 3 performing inline with minimum profit expectations - 3 growing at an annualised 5% growth rate over previous year - 1 exceeding a 10% annualised growth rate over previous year Continue
Slide 13: Looking Forward - 2009
Looking Forward - 2009 For personal use only Focus on Core Operations – Growth Opportunities - Financial Planning, Self Managed Superannuation & Accounting Services - Continue to gain new clients and additional FUM - Enlarged team of advisers via CPP through integration of offices – Assist to grow F
Slide 14: Looking Forward - 2009
Looking Forward - 2009 For personal use only Assess acquisition & distribution partner opportunities - case by base basis - Growth & Commitment = main criteria Current market conditions have deteriorated significantly since 30 June 2008 with extreme volatility - Continue to service existing clients
Slide 15: Contact
Contact For personal use only Simon Madder Managing Director / CEO Prime Financial Group Ltd Level 17, Como Office Tower 644 Chapel Street South Yarra VIC 3141 Tel 03 9827 6999 Fax 03 9827 9100 simonm@primefinancial.com.au
Prime Financial Group — Shareholder Meeting (November 2008) on 6ix