Centrepoint Alliance Limited · ASX:CAF
Centrepoint Alliance — H1 2022 Earnings Presentation
24 slides from Centrepoint Alliance's earnings presentation, Feb 24, 2022
Slide 1: FY22 H1 Results Presentation and Strategy Update
FY22 H1 RESULTS PRESENTATION AND STRATEGY UPDATE John Shuttleworth, CEO Brendon Glass, CFO 24 February 2022
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 2021 and the Appendix 4D lodged with the Australian Securities Exchange by Centrepoint Alliance Limited (ASX:CAF) on 24 Februa
Slide 3: Agenda
AGENDA BUSINESS RESULTS AND STRATEGY John Shuttleworth, CEO FINANCIAL RESULTS Brendon Glass, CFO 3
Slide 4: Business Results
BUSINESS RESULTS John Shuttleworth, CEO
Slide 5: Snapshot of core earnings
Snapshot of core earnings KEY MESSAGES H1 2022 • Solid financial performance $95.5m $2.5m Gross revenue EBITDA • Transformational acquisition Excludes legacy claims, $24.9m LTI and one-off costs $0.3m • Cost synergies from integration realised • Licensee has grown to #3 in the market +35% • Recurrin
Slide 6: ClearView Advice acquisition has transformed Centrepoint Alliance
ClearView Advice acquisition has transformed Centrepoint Alliance 511 315 +62% Licensed advisers KEY MESSAGES 151 185 +23% • Completed 1 Nov 2021 Self-licensed firms • Delivering scale and efficiency 99.3 105.2 • Organisation structure implemented Headcount +6% day 1 FTEs • Strengthened leadership t
Slide 7: Strategy and Progress
STRATEGY AND PROGRESS CENTREPGINT ALLIAN
Slide 8: The need for advice has never been greater
Market Opportunity THE NEED FOR The great shift from accumulation to retirement incomes driven by the ageing population ADVICE HAS NEVER BEEN Increased complexity through the interplay of superannuation, retirement, tax and social security GREATER $13.4 trillion in household assets 1 Reduced accessi
Slide 9: Centrepoint's growth strategy will leverage existing capabilities
Centrepoint’s growth strategy will leverage existing capabilities Focus for today’s update THREE CORE STRATEGIC PILLARS FOR GROWTH ACCELERATE GROWTH Financial services Licensee and Investments and portfolio technology solutions Acquisitions / lending solutions solutions “Fintech” strategic Investmen
Slide 10: Licensee Solutions
LICENSEE SOLUTIONS CENTREPGINT ALLIAN
Slide 11: Centrepoint is building scale
Centrepoint is building scale LICENSEE RANKING Number of authorised representatives Rank Licensee group No of AR's Net growth CAF has performed well relative to #1 INSIGNIA (IOOF) 1,226 -532 peers and is now #3 in the market #2 AMP 1,110 -363 The only top-10 Licensee to have #3 Centrepoint 525 27 ne
Slide 12: Strong presence with self licensed advisers and investing to grow
Centrepoint has a strong presence with self licensed advisers and is investing to grow this important segment SELF LICENSED MARKET CENTREPOINT STRATEGY 2,0001 1. Relaunch La Vista – continue self-licensed firms 185 firms to develop La Vista as specialist self-licensed brand 6,000 9% market share 2.
Slide 13: Lending Solutions
LENDING SOLUTIONS CENTREPGINT ALLIAN
Slide 14: The Lending Market is attractive with natural synergy with advisers
The Lending Market is attractive and there is a natural synergy with Centrepoint advisers RESIDENTIAL COMMERCIAL CHANNEL MIX1 BROKERS MARKET $420b3 60% Brokers OPPORTUNITY $480b1 16,000 market market 40% Direct Bank Aggregators5 Residential $3b2 $2-3b4 AFG 1% penetration revenue pool revenue pool 3,
Slide 15: Infrastructure, distribution and capability to grow the lending business
Centrepoint has the infrastructure, distribution and capability to grow the lending business BOUTIQUE PROVIDER OF NETWORK POTENTIAL LENDING SERVICES (RESIDENTIAL) STRATEGY PRIORITY 1 • Credit licence • Lending infrastructure $54b in loans in the network 1 Enable advisers to participate in lending •
Slide 16: Investment Solutions
INVESTMENT SOLUTIONS CENTREPGINT ALLIAN
Slide 17: Opportunity to reshape and grow the asset management business
There is an opportunity to reshape and grow the asset management business THE MARKET MISSION CENTREPOINT NETWORK ASSET MANAGEMENT STRATEGY $990b1 Platform Market $42b3 in funds under advice To offer the highest quality asset management, competitively priced in Ventura Asset Management +20 years effi
Slide 18: Financial Results
FINANCIAL RESULTS Brendon Glass, CFO
Slide 19: Financial results summary
Financial results summary H121 H221 H1221 • Gross revenue up $24.9m (+35% PCP) driven by $9.4m organic For the period ($m) ($m) ($m) licensed adviser growth and $15.5m through ClearView Advice Gross Revenue 70.6 68.6 95.5 acquisition in gross commissions and adviser fee received Adviser fees and com
Slide 20: Revenue and expense analysis
Revenue and expense analysis Net Revenue movement ($m) Key revenue movements (PCP) : $15.5 $1.4 $0.3 $1.3 $1.7 $14.1 • Rebates down $1.4m due to grandfathered rebates that have $0.7 runoffs, with platform rebates ceased from 1 Jan 2021 • Investment margin down $1.3m due to higher fund custody charge
Slide 21: Balance Sheet
BALANCE SHEET 30Jun21 31Dec21 • Cash of $11.9m up $0.8m on Jun 2021 primarily due to cash For the period ended ($m) ($m) flow from operations Cash & Term Deposits 11.1 11.9 • Loans receivable reduced due to $1.1m Neos Life final repayment, offset by $0.5m increase in adviser loans Trade and Other Re
Slide 22: Cash movement (over calendar year 2021)
Cash movement (over calendar year 2021) • Cash at 31 Dec 2021 $11.9m $1.7m $8.7m • Calendar Year 2021 Cash from $5.4m operations $5.4m • Neos Life divestment $1.1m, $3.2m $3.2m RFE loan recoveries $0.3m $14.7m and Other dividend/interest $0.5m $0.3m $0.9m $11.9m • Dividends paid $8.7m ($5.8m H221 an
Slide 23: Appendix
CENTREPwINT ALLIANCE
Slide 24: 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 15/11/21 As at 15/11/2021 Shares held (% of SOI) H122 gross revenue $95.5m Mr Alan Fisher Non-Executive Chairman - Thorney Investment