Centrepoint Alliance Limited · ASX:CAF
Centrepoint Alliance — Investor Presentation (February 2024)
38 slides from Centrepoint Alliance's investor presentation, Feb 26, 2024
Slide 1: FY24 H1 Results Presentation and Strategy Update
FY24 H1 RESULTS PRESENTATION AND STRATEGY UPDATE John Shuttleworth, CEO Brendon Glass, CFO 26th of February 2024
Slide 2: Disclaimer
DISCLAIMER This presentation is for general information purposes only and should be read in conjunction with the Half Year Financial Report for six months ending 31 December 2023 and the Appendix 4D lodged with the Australian Securities Exchange by Centrepoint Alliance Limited (ASX:CAF) on 26 Februa
Slide 3: Agenda
AGENDA BUSINESS RESULTS John Shuttleworth, CEO FINANCIAL RESULTS Brendon Glass, CFO GROWTH STRATEGY & OUTLOOK John Shuttleworth, CEO
Slide 4: Business Results
BUSINESS RESULTS John Shuttleworth, CEO
Slide 5: Key Highlights for H1 FY24
KEY HIGHLIGHTS FOR H1 FY24 A leading • Continued strong financial performance wealth • Positive conditions for advisers – significant demand for services, positive equity markets, regulatory relief management • Acquisition of Financial Advice Matters in December 2023 creating a platform platform to
Slide 6: Snapshot of H1 FY24 Results
SNAPSHOT OF H1 FY24 RESULTS $140.5m $4.1m $16.7m Gross revenue EBITDA (normalised) Gross profit Excludes asset sales, $6.3m LTI and one-off costs $0.4m +5% $0.4m +2.5% on H123 +11% on H123 on H123 $4.9m $12.4m Dividend Fully franked to be paid Profit after tax Cash 18 March 2024 1¢ Ordinary at 31 De
Slide 7: The Changing Industry Landscape Continues to Create Opportunity
THE CHANGING INDUSTRY LANDSCAPE CONTINUES TO CREATE OPPORTUNITY CHANGES IN ADVISER NUMBERS BY LICENSEE 1/7/2023 TO 15/02/2024 NUMBER NET 1 RANK LICENSEE GROUP OF ARS APPOINTMENTS RESIGNATIONS CHANGE 1 Insignia 871 38 68 -30 2 AMP 780 57 107 -50 3 Centrepoint 554 35 52 -17 4 WT Financial 532 56 34 22
Slide 8: Financial Results
FINANCIAL RESULTS Brendon Glass, CFO
Slide 9: Financial Results Summary
Strong first-half earnings delivered through a robust mix of organic growth and FAM acquisition FINANCIAL RESULTS SUMMARY H1 FY23 H2 FY23 H1 FY24 • Gross revenue up $6.3m (+4.7% PCP) For the period ($m) ($m) ($m) Gross Revenue 134.2 137.4 140.5 • Gross profit up 2.5% (+$0.4m) on PCP primarily throug
Slide 10: Revenue and Expense Analysis
Adviser fees uplift, FAM acquisition and continued expense management further drive earnings increase REVENUE AND EXPENSE ANALYSIS Net Revenue movement ($m) $0.6 Key revenue movements (vs. PCP) : $0.5 $0.5 $16.7 • Adviser fees up $0.6m driven by adviser/firm growth; recently acquired advisers transi
Slide 11: Balance Sheet
Sound balance sheet with adequate leverage and additional $4m undrawn bank facility to drive inorganic growth BALANCE SHEET 30Jun23 31Dec23 • Cash of $12.4m down $3.2m from June 2023 primarily As at ($m) ($m) driven by $3.7m net cash flow from operations and $4m loan borrowings offset by $7.6m paid
Slide 12: Cash Movement H1 FY24
Strong cash performance generating $4.1m in gross cash from operations CASH MOVEMENT H1 FY24 • Cash in Dec 2023 closed at $12.4m • H1 FY24 Gross cash from $1.0m $7.6m operations $4.1m $4.1m $0.7m $0.6m $0.3m $0.4m • $0.7m one-off costs $4.0m $4.0m comprised of $0.6m in $15.6m employment redundancies
Slide 13: Financial Snapshot
Consistent expense management and EPS growth with nominal credit risk FINANCIAL SNAPSHOT Expense Management H1 FY22 H1 FY23 H1 FY24 Balance Sheet H1 FY22 H1 FY23 H1 FY24 Headcount FTE 105.2 104.5 122.0 Closing Cash $11.9m $15.4m $12.4m Employment Cost Ratio1 56% 53% 52% Net Current Assets $3.4m $7.7
Slide 14: Growth Strategy
GROWTH STRATEGY John Shuttleworth, CEO
Slide 15: Centrepoint Has 5 Strategic Pillars to Drive Growth
CENTREPOINT HAS 5 STRATEGIC PILLARS TO DRIVE GROWTH Our focus is on margin expansion and annuity revenue enabled by the strong distribution network of over 1,300 financial advisers 1 2 3 4 5 GROW GROW BUILD SCALE LAUNCH GROW LICENCED AND SALARIED IN ASSET PLATFORM LENDING Objective SELF-LICENCED ADV
Slide 16: $67b FUA
A KEY STRENGTH OF CAF IS THE SIZE OF OUR COMMUNITY AND THE ESTIMATED $2B+ IN REVENUE GENERATED ACROSS THE VALUE CHAIN WITHIN THE NETWORK FUNDS UNDER ADVICE VALUE CHAIN REVENUE $464m Advice fees • Advice fee $2,900 • 160,000 x $2,900 $67b FUA $201m Platform revenue • Revenue margin 30bps • $67b x 30b
Slide 17: Grow Salaried Advice FAM Acquisition
GROW SALARIED ADVICE FAM ACQUISITION
Slide 18: Acquisition of Financial Advice Matters (FAM)
ACQUISITION OF FINANCIAL ADVICE MATTERS (FAM) • Completed transaction on 1 December 2023 • FAM is one of the largest corporatised financial planning groups in Queensland established in current form in 2015 • FAM provides financial planning services to 1,550 household clients • Funds under advice in
Slide 19: Creating the Foundations for Growth
CREATING THE FOUNDATIONS FOR GROWTH The combined business with 19 advisers has the operating scale and capability to grow the salaried financial planning channel which is one of the most profitable segments in the wealth value chain CENTREPOINT FAM Financial advice 4 15 Additional acquisitions Organ
Slide 20: The Economics and Earnings Potential of Salaried Advice
THE ECONOMICS AND EARNINGS POTENTIAL OF SALARIED ADVICE CAF has established initial scale and capability to grow a profitable advice business – optimising advice processes, combined with organic and further acquisitions will drive growth SALARIED ILLUSTRATIVE GROWTH POTENTIAL1 ADVICE CURRENT CURRENT
Slide 21: The CAF Network of Firms Will Create Opportunities to Expand
THE CAF NETWORK OF 536 FIRMS WILL CREATE OPPORTUNITIES TO EXPAND AS FIRMS LOOK FOR SUCCESSION OPPORTUNITY WHAT WE LOOK FOR CORPORATISED ALIGNED GENUINE 330 licenced firms PRACTICES CULTURE SUCCESSION AND VALUES with 518 advisers These are Business owners businesses who High integrity exiting the emp
Slide 22: Build Scale in Asset Management
BUILD SCALE IN ASSET MANAGEMENT
Slide 23: Adviser Use of Managed Accounts Continues Strong Growth
ADVISER USE OF MANAGED ACCOUNTS CONTINUES STRONG GROWTH, MARKET ESTIMATED TO REACH $280B BY 2026 MANAGED ACCOUNT MARKET1 DRIVERS OF GROWTH $b $280 • Platforms focus on improved functionality $233 • Increased number of asset consultants and $194 managers offering portfolios $162 • Portfolio managemen
Slide 24: SMAs Approved for Use
SMAS APPROVED FOR USE Strong adviser demand has driven expansion of our SMA offering Over 28 SMA managers on Approved Product List with over 175 portfolios including…
Slide 25: Launching Our Own Suite of Managed Account Solutions
LAUNCHING OUR OWN SUITE OF MANAGED ACCOUNT SOLUTIONS GROWTH STRATEGY • Offer a range of managed account structures to cater for various adviser operating models Model name Potential risk profiles iQ Portfolios (growth) G30, G50, G70, G85 • Promote efficiencies and client benefits to the network iQ P
Slide 26: Expanding the Range and Flexibility of Managed Accounts Solutions
EXPANDING THE RANGE AND FLEXIBILITY OF MANAGED ACCOUNTS SOLUTIONS A key point of differentiation is our ability to offer flexible SMA structures 1. RETAIL 2. PROPRIETARY 3. BESPOKE Selection of Custom built SMAs using existing SMAs an asset consultant Research house based Run by the Ventura Investme
Slide 27: A New Platform
A NEW PLATFORM CENTREP@INT ALLIANCE
Slide 28: Centrepoint Is Open Architecture
CENTREPOINT IS OPEN ARCHITECTURE Our commitment is to be an ‘open architecture’ licensee providing advisers a choice of platforms and investment managers.
Slide 29: FNZ and Centrepoint Alliance Partnership
FNZ AND CENTREPOINT ALLIANCE PARTNERSHIP • Global wealth platform • $67 billion funds under advice • $2.1 trillion AUM1 • 536 firms • 650 implementations • 1,338 advisers • 30 countries 1. Assets Under Management
Slide 30: iconiQ Intelligent Portfolio Management
iconiOQ. Intelligent Portfolio Management
Slide 31: Portfolios
Portfolios lnveste xteral Lterature Lisrary Holdings Q Posto Search Mr Christopher McDonald A, FA1O00S18- Inia ‘summary Portfolio Value $367,754.37 (Cris MeDonaid Individual Portal Holaings Quick Links Include Exteral Assets? s219.559.09 Cvs and Linsay McDonald Porolo $19,003.24 Chis McDonald SMSF P
Slide 32: Key Points
KEY POINTS 1 2 3 Anticipated Competitive Extensive range launch Q3 pricing of managed Calendar year • Low accounts 2024 administration fee • Aggregated household pricing • Capped fees
Slide 33: Modest Penetration Drives Significant FUA Market and Network Potential
Illustrative MODEST PENETRATION DRIVES SIGNIFICANT FUA MARKET AND NETWORK POTENTIAL 1% penetration of CAF network $670m FUA $975b1 platform market $67b2 5% penetration of CAF network $3.35b Centrepoint network FUA FUA 1,300+ advisers 1% share of platform market $9.75b FUA 1 Plan for Life all Masterf
Slide 34: Outlook
OUTLOOK CENTREP@INT ALLIANCE
Slide 35: Summary and Outlook
SUMMARY AND OUTLOOK We are • Positive conditions for advisers – significant demand for services, positive about positive equity markets, regulatory relief the market and • Dislocation in the market with is creating opportunities to accelerate recruitment our business momentum • Focused team deliveri
Slide 36: Appendix
CENTREPSGINT ALLIANCE APPENDIX
Slide 37: Corporate Snapshot
CORPORATE SNAPSHOT EXPERIENCED AND INVESTED CAPITAL STRUCTURE LEADERSHIP TEAM TOP SHAREHOLDERS ASX stock code CAF Shares held Investors Board & Management Role As at 31/01/24 As at 31/01/2024 Shares held (% of SOI) H1 FY24 gross revenue $140.5m Mr Georg Chmiel Chairman 0.97m (0.5%) Thorney Investmen
Slide 38: Questions
CENTREPSGINT ALLIANCE
Centrepoint Alliance — Investor Presentation (February 2024) on 6ix