Cog Financial Services Limited · ASX:COG
Cog Financial Services — Shareholder Meeting (November 2024)
19 slides from Cog Financial Services's shareholder meeting presentation, Nov 29, 2024
Slide 1: 2024 AGM CEO Presentation
29 November 2024 The Manager – Listings Australian Securities Exchange Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 2024 AGM CEO Presentation COG Financial Services Limited (COG) attaches the following documents in relation to the FY2024 Annual General Meeting: • CEO Presentation. For pe
Slide 2: AGM – CEO Presentation
For personal use only AGM – CEO Presentation 29 November 2024 Andrew Bennett Chief Executive Officer 1
Slide 3: COG Overview and FY24 Results Overview
COG Overview NT 1 Broker firm 1 Broker 21% For personal use only 1,045 Novated Lease QLD 1 30+ Customers 1,696 Salary 163 Broker firms Market share of asset 2 Packaging Customers 474 Brokers finance 674 Novated Lease Customers Locations across Australia WA 1,507 Salary Packaging 55 Broker firms Cust
Slide 4: Distribution & Product is our foundation for success
Distribution & Product is our foundation for success For personal use only Distribution Product FY 24 NPATA* 100% Finance Broking & Aggregation Asset Management & Lending • Finance broking services and an • Investment solutions for individuals and 24% 80% aggregator for brokers SMEs • Assisting SMEs
Slide 5: Asset Finance Broking and Aggregation: Our business model
Asset Finance Broking and Aggregation Our business model For personal use only COG Operations Borrowers Brokers Bank/Finance Borrowers Companies Borrowers Brokers Aggregator Borrowers Bank/Finance Borrowers Brokers Companies Borrowers SME customers: Brokers own the Aggregators are the The majors – d
Slide 6: Aggregator of small businesses
Aggregator of small businesses Our value add is to standardise systems and processes under a larger platform For personal use only Core IT, email file servers to ensure consistent and efficient communication and data management across all businesses Comprehensive and centralised cyber security syste
Slide 7: Consistent delivery of financial growth
Consistent delivery of financial growth Revenue ($mill)* EBITDA to shareholders ($mill) NPATA ($mill)* For personal use only 600 45 35 40 30 500 35 25 400 30 25 20 300 20 15 200 15 10 10 100 5 5 0 0 0 FY18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 FY18 FY 19 FY 20
Slide 8: Tailwinds for COG's business
Tailwinds for COG’s business For personal use only Population growth • Driving demand for SMEs and infrastructure enabling COG to create tailored financial solutions to meet expanding market needs Infrastructure investment, decarbonisation and electrification • Government and private infrastructure
Slide 9: Population Projection
Population Projection – 18 months later Population growth drives demand for SMEs via infrastructure investment For personal use only 29,800,000 29,500,000 29,063,400 29,000,000 28,500,000 28,000,000 27,500,000 Population at end of year 27,500,000 27,000,000 26,600,000 26,500,000 25,913,100 26,000,00
Slide 10: The transition of electricity grid to renewables
The transition of electricity gridgrid to renewables COG’s broker network is well positioned to For personal use only capitalise on the infrastructure investment required to electrify Australia • Current emission reduction target is 43% of 2005 emissions. • According to CSIRO 32% of Green House Gas
Slide 11: The shift to brokers continues
The shift to brokers continues The evolution of broking For personal use only PRE-1990 NOW Banks had branch networks Banks are replacing branches with ATMs 100% of bank loans assets 27% of bank loans assets originated by branches generated by branches 73% Brokers 25% Brokers 2004 2024 According to E
Slide 12: Finance Broking & Aggregation
Finance Broking & Aggregation Net Assets Financed ($bn) For personal use only 10.0 9.0 8.0 7.0 17.6% CAGR 6.0 5.0 4.0 3.0 2.0 1.0 0.0 FY18 FY 19 FY 20 FY 21 FY 22 FY 23 FY 24 11
Slide 13: Novated Leasing
Novated Leasing • A tripartite agreement between employer, employee & financier. • Generally seen as an employee benefit, with the novated provider primarily securing the vehicle and arranging finance. Very similar to traditional finance broking. For personal use only • COG has made several acquisit
Slide 14: Novated Leasing
Novated Leasing Salary Novated EBITDA Entity Year Packaging Leases ($’m) Revenue and Net Profit Before Tax For personal use only FY23 394,200 73,400 90.2 160 14% McMillan 147 Shakespeare FY24 412,914 79,228 131.8 140 12% % Growth 5% 8% 46% 120 10% FY22 379,000 57,700 93.6 100 8% 81 $m 80 Smartgroup
Slide 15: Asset Management and Lending
Asset Management and Lending For personal use only NPATA to Shareholders $ millions 10.1 8.9 3.4 6.7 3.8 1.4 2.6 1.4 3.6 4.1 3.9 1.5 FY22 FY23 FY24 Asset Management & other Lending (Other) Lending (TL Commercial) 14
Slide 16: Asset Management
Asset Management For personal use only Capital light & scalable COG captures a small portion of the Asset Finance it originates and delivers it into several investment structures that it manages, with each structure being tailored to the specific SME receivable assets. These structures are capital e
Slide 17: The investment opportunity
The investment opportunity For personal use only Rebalanced shareholder COG has delivered consistent Momentum in small cap market register has boosted free float financial growth despite now rising and market and liquidity challenging market conditions awareness is expanding NAOS (COG’s largest shar
Slide 18: Capital Management
Capital Management For personal use only COG is currently undertaking a capital review with a view to potentially realising some non-core assets. Additionally, the dividend payout ratio vis-a-vis a share buy- back program is also under review. 17
Slide 19: Disclaimer
Disclaimer COG Financial services Limited ('COG’) has not considered the financial position or needs of the recipient in providing this presentation ('Presentation'). Persons needing advice should consult their stockbroker, bank manager, solicitor, attorney, accountant or other independent financial
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