Bell Financial Group Limited · ASX:BFG
Bell Financial — Bell Potter Emerging Leaders Conference 2019
22 slides from Bell Financial's conference presentation, Sep 18, 2019
Slide 1: ASX Release: Bell Potter Emerging Leaders Conference 2019
ASX RELEASE. 18 September 2019 ASX Market Announcements Office ASX Limited 20 Bridge Street Sydney NSW 2000 BELL POTTER EMERGING LEADERS CONFERENCE 2019 Attached is the presentation that Bell Financial Group Executive Chairman, Alastair Provan, will give this morning at the Bell Potter Emerging Lead
Slide 2: Bell Financial Group (ASX:BFG)
BELL FINANCIAL GROUP (ASX:BFG) An Australian owned provider of stockbroking, investment and financial advisory services to private, institutional and corporate clients September 2019
Slide 3: Contents
CONTENTS 1 Overview 3 2 Corporate Structure & Businesses 5 3 Strategy 13 4 Financial Summary 16 5 Market Update 18 2
Slide 4: Overview
OVERVIEW 3
Slide 5: Bell Financial Group is a leading Australian financial services business
OVERVIEW Bell Financial Group is a leading Australian financial services business Established in 1970 and publicly listed in 2007, Bell Financial Group is an Australian owned provider of stockbroking (full service and online) and investment and financial advisory services to private, institutional a
Slide 6: Corporate Structure & Businesses
CORPORATE STRUCTURE & BUSINESSES 5
Slide 7: Corporate Structure & Businesses
CORPORATE STRUCTURE & BUSINESSES 100% 100% 100% Third Party Bell Potter Securities Limited Bell Potter Capital Limited Platform Pty Ltd Retail Equities Margin Lending - online retail broking Institutional Equities Cash Accounts - intermediary online broking International Equities Str
Slide 8: Management
MANAGEMENT A deliberately flat management structure that is experienced, stable and has a substantial shareholding in the business BELL FINANCIAL GROUP BOARD Alastair Provan Craig Coleman Graham Cubbin Brian Wilson AO Executive Chairman Non-Executive Director Non-Executive Director Non-Executive Dir
Slide 9: Bell Potter Securities (BPS)
BELL POTTER SECURITIES (BPS) BROKERAGE REVENUE PAS & SUPER SOLUTIONS REVENUE ($M) ECM REVENUE ($M) (RETAIL & WHOLESALE) ($M) 20 70.0 66.4 100 92.6 17.5 91.6 18 85.8 16.1 60.0 90 54.6 76.9 16 80 75.9 13.6 14 50.0 46.2 12.1 41.8 70 11.4 12 35.6 60 40.0 48.3 46.5 10 8.5 8.9 31.0 50 8 30.0 40 20.9 30 6
Slide 10: Third Party Platform (TPP)
THIRD PARTY PLATFORM (TPP) REVENUE ($M) Consistent growth in revenue, sponsored Online retail broking holdings and clients account over last five 16 years. 14 15.2 14.2 12 Online intermediary broking 12.4 $15.2 million gross revenue in 2018, up 7% on 10 p.c.p. 8 10.1 8.6 8.6 6 7.5 $8.6 million
Slide 11: Bell Potter Capital (BPC)
BELL POTTER CAPITAL (BPC) Established in 2006 NET REVENUE ($M) LOAN & CASH BOOK ($M) Only non-bank margin lender in the Australian marketplace 12 600 $270 million loan book (at 30 June 2019) 10.5 9.6 500 $313 million cash book (at 30 June 2019) 10 Conservatively managed: 7.8 400 8 − 30% av
Slide 12: Funds Under Advice (FUA)
FUNDS UNDER ADVICE (FUA) At 30 June 2019 FUA were $55 billion. FUNDS UNDER ADVICE ($B) CHESS SPONSORED HOLDINGS ($B) PAS ($B) +17% on year end +18% on year end +14.3% on year end 60 54.8 60 3.5 3.2 49.0 47.2 46.8 50 3 2.7 2.8 50 42.2 41.6 38.8 2.5 2.3 40 40 34.4 20.0 33.1 29.3 2 30.1 26.6 15.7 16.7
Slide 13: Strategy
STRATEGY 12
Slide 14: Recurring Platform + Products + Services Revenue
RECURRING PLATFORM + PRODUCTS + SERVICES REVENUE RECURRING PLATFORM AND PRODUCTS AND SERVICES REVENUE ($M) Approximately 10% of Group FUA, $5.7 billion, using our various platforms and products and services produce 60 recurring revenue. 52.1 Generated recurring revenue of $52.1 million in 2018,
Slide 15: Technology
TECHNOLOGY We are committed to ongoing development of new and existing proprietary platforms which deliver real cost and revenue benefits and market advantage. IQ FUSION TPP platform development Commitment to technology Our price discovery and FUSION is our A dedicated development team trade e
Slide 16: Financial Summary
FINANCIAL SUMMARY 15
Slide 17: Growth
GROWTH We have a record of consistent growth across all business units over an extended period Little or no recognition in our share price Five year Compound Annual Growth Rate Charts REVENUE ($M) NPAT ($M) FUNDS UNDER ADVICE ($B) EARNINGS PER SHARE (CENTS) 30 60 250 55 9 8.5 CAGR +38.6% CAGR
Slide 18: Growth (cont.)
GROWTH (CONT.) A solid cash-backed balance sheet with no core operating debt RETURN ON EQUITY DIVIDENDS PAID ($M) AND GROSS BALANCE SHEET EBITDA MARGIN DIVIDEND YIELD (%) (as at 30 June 2019) 25% 25% $25M 16% 14.3% 11.8% $M 21.3% 14% 19.3% Net assets 206 20% 20% $20M CAGR +28.4% 17.5% 11.2% 16.9% 10
Slide 19: Market Update
MARKET UPDATE 18
Slide 20: Market Update (9 months to 30 September 2019)
MARKET UPDATE (9 months to 30 September 2019) REVENUE ($M) PBT ($M) Projected revenue for the 9 months 35 200 to 30 September is $177 million, 6% 177 180 ahead of the p.c.p ($167 million) 167 30 27.5 29.0 160 25 Projected profit before tax is 140 121 $29 million, 5.5% ahead of the p.c.p 120 100
Slide 21: Market Update
MARKET UPDATE BFG SHARE PRICE ($A) Market capitalisation $300m $1.20 EV/EBITDA multiple1 5.2x $1.00 BFG Share Price Dividend yield (gross)2 11.8% $0.80 Price earnings ratio (PE)3 9.8x $0.60 1 based on 12 month EBITDA to 30 June 2019, and BFG share price at 17 September 2019 $0.40 2 based on final 20
Slide 22: Important Disclaimer
Important Disclaimer The material contained in this presentation has been prepared by Bell Financial Group Limited ABN 59 083 194 763 (Bell Financial Group) and is general background information about the businesses, operations and activities of Bell Financial Group and its subsidiaries, current as
Bell Financial Group — Bell Potter Emerging Leaders Conference 2019 on 6ix