Prime Financial Group Limited · ASX:PFG
Prime Financial — Shareholder Meeting (October 2012)
29 slides from Prime Financial's shareholder meeting presentation, Oct 18, 2012
Slide 1: 2012 Annual General Meeting announcement
Prime Financial Group Ltd ACN 009 487 674 18 October 2012 Level 17, Como Office Tower For personal use only 644 Chapel Street PO Box 6105 South Yarra VIC 3141 Tel 03 9827 6999 Fax 03 9827 9100 enquiries@primefinancial.com.au Company Announcements Office www.primefinancial.com.au Australian Stock Exc
Slide 2: Chairman's Address
Prime Financial Group Ltd ACN 009 487 674 18 October 2012 Level 17, Como Office Tower For personal use only 644 Chapel Street PO Box 6105 South Yarra VIC 3141 Tel 03 9827 6999 Fax 03 9827 9100 enquiries@primefinancial.com.au 2012 ANNUAL GENERAL MEETING www.primefinancial.com.au Chairman’s Address In
Slide 3: Chairman's Address (continued)
Prime has numerous growth opportunities, within its existing business and does not propose to use its capital to grow by acquisition unless there is a demonstrable financial For personal use only and strategic advantage. The Directors question the benefit of acquiring generally overpriced principal
Slide 4: Annual General Meeting October 2012
Annual General Meeting For personal use only 18 October 2012 Helping Clients Build Wealth and Protect Assets
Slide 5: Welcome
Welcome For personal use only • Directors: • Stuart James - Chairman • Simon Madder - Managing Director/CEO • Peter Madder - Executive Director • Company Secretary: • Campbell Kennedy • Auditors: • William Buck Audit (VIC) Pty Ltd • Share Registry: • Computershare Investor Services
Slide 6: Agenda
Agenda For personal use only • Chairman's Address – Stuart James • Managing Director/CEO’s Report – Simon Madder • Business of the Meeting
Slide 7: Managing Director/CEO's Report
Managing Director/CEO’s Report For personal use only Simon Madder Helping Clients Build Wealth and Protect Assets
Slide 8: Prime Financial Group Ltd – Positioning
Prime Financial Group Ltd – Positioning For personal use only • What do we do? • Provide Integrated Wealth Management Services • Financial Planning • Investment Advice • Life Insurance • Asset Protection Advice incorporating Legal Services • Superannuation, including Self Managed Superannuation, and
Slide 9: Positioning (continued)
Prime Financial Group Ltd – Positioning… cont For personal use only • How do we provide • Through a team of highly qualified Financial Advisers these services? • Located in hubs in VIC, NSW, WA and QLD • Providing cost effective, transparent and consistent advice • Combining Wealth Management Advice
Slide 10: Structure Chart
Structure Chart For personal use only Prime Financial Group Ltd Wealth Management Accounting and SMSF Services 100% Equity $1B+ FUM and over 4,000 clients CPP Primestock Securities Ltd Up to 50% Equity 50% Equity 30 Wealth Management 9 Entities jointly owned Accounting/SMSF with Accounting Firms Fir
Slide 11: FY2012 Results Summary: Introduction
FY2012 Results Summary For personal use only Introduction • The Financial Services sector has experienced a difficult 12 months to 30 June 2012. Domestic economic uncertainty saw the Australian stockmarket retreat 11% from July 2011 to June 2012 resulting in declining investor confidence. Furthermor
Slide 12: FY2012 Results Summary: Introduction (cont)
FY2012 Results Summary For personal use only Introduction.. cont • Prime’s Normalised EBIT (excluding one-off’s) has declined 9% versus the previous corresponding period and Normalised NPAT (excluding one-off’s) has declined 8%. Included in these results is an increase in Group Overheads of 6% refle
Slide 13: FY2012 Achievements: Licensing Model and Prime MPS
FY2012 Achievements For personal use only Wealth Management Licensing Model • Prime has developed a highly scalable and integrated Client Engagement Model which is delivered through a Wealth Management Joint Venture Licensing structure • In FY2012 Prime launched this licensing strategy with existing
Slide 14: FY2012 Achievements: Legal Services and New Brand
FY2012 Achievements For personal use only Prime Legal Services • In FY2012 Prime established a Legal Services division that supports Prime’s delivery of Asset Protection products and services such as loan agreements, buy/sell agreements, shareholders agreements and wills and estate planning • Althou
Slide 15: Wealth Management Results
FY2012 Results Summary For personal use only Wealth Management Results • Wealth Management Revenue grew by 11% in FY2012 • During FY2012 a new revenue stream was created by licensing Prime’s Client Engagement Model to Existing and New Accounting and Advisory Groups as part of Prime’s growth and expa
Slide 16: Summary Full Year Results
Summary Full Year Results For personal use only Financial FY11 FY12 % Change Normalised Earnings Before Interest & Tax 5.50 5.02 - 9% (EBIT) ($M)* Reported Earnings Before Interest & Tax 5.50 4.32 - 21% (EBIT) ($M) Normalised Net Profit After Tax (NPAT) 3.84 3.52 - 8% ($M)* Net Profit After Tax (NPA
Slide 17: Summary Profit & Loss (Normalised)
Summary Profit & Loss (Normalised) % Change FY11 1H12 2H12 FY12 For personal use only FY11 v FY12 Wealth Management – New Business Revenue ($M) 3.00 1.42 1.26 2.68 - 11% Wealth Management – Recurring Revenue ($M) 7.25 3.41 3.48 6.89 - 5% Wealth Management – Licensing Revenue ($M) - 0.82 1.00 1.82 n/
Slide 18: Wealth Management Revenue
Wealth Management Revenue For personal use only Wealth Management Wealth Management Revenue represents 85% of Prime’s Gross Revenue % Change New Business Revenue FY11 1H12 2H12 FY12 FY11 v FY12 • Investment Brokerage ($’000) 2,417 927 658 1,585 - 34% • New Issues & IPO’s ($’000) - 68 301 369 n/a • A
Slide 19: Key Metrics – Wealth Management Licensing Revenue
Key Metrics –Wealth Management Licensing Revenue For personal use only Wealth Management Licensing Revenue % Change FY11 1H12 2H12 FY12 FY11 v FY12 Licensing Revenue ($’000) - 820 1,000 1,820 n/a Total ($’000) - 820 1,000 1,820 n/a • In FY2012 Prime commenced its licence roll out of Prime’s new Clie
Slide 20: Key Metrics – New Business Leads
Key Metrics – New Business Leads For personal use only New Business Leads • Prime’s Client Engagement Model New Leads (Monthly Average) drives the growth in new leads for 60 52 Prime’s Wealth Management Services. 50 47 This is driven by: 40 • New Client leads 31 FY10 30 • Additional Services from Ex
Slide 21: Key Metrics – FUM Net Inflows and Net Margin
Key Metrics – FUM Net Inflows and Net Margin For personal use only Funds Under Management (FUM) 1H12 2H12 Total Commentary • Opening FUM ($M) 1,055 1,008 1,055 • The overall decline in FUM of ($54.0m) is reflective of the • FUM - New ($M) 35.5 33.4 68.9 difficult domestic and global • FUM - Outflow
Slide 22: Accounting and SMSF Services Investees
Accounting and SMSF Services Investees For personal use only Accounting and SMSF Services Revenue Prime’s 9 Accounting and SMSF Investees represent 15% of the Prime’s Gross Revenue % Change FY11 FY12 FY11 v FY12 Underlying Accounting and SMSF Revenue ($M) 2.19 2.08 - 5% Accounting and SMSF Corporate
Slide 23: Summary Balance Sheet
Summary Balance Sheet 30/06/11 30/06/12 For personal use only Current Assets Cash 0.4 0.3 Other current assets 6.2 4.9 Non Current Assets Receivables 1.7 4.7 Plant & Equipment 1.5 1.5 Investments 69.8 69.6 Total Assets 79.6 81.0 Current Liabilities Payables/Provisions 3.6 3.8 Borrowings 0.2 - Non Cu
Slide 24: FY2013 Targets & Longer Term
FY2013 Targets & Longer Term For personal use only FY2013 • Drive organic growth initiatives to increase the Prime network of Wealth Management Investees and expand service offerings: • Continue to deliver outcomes from Prime’s Client Engagement Model and Wealth Management Joint Venture Licensing st
Slide 25: FY2013 Targets & Longer Term (cont)
FY2013 Targets & Longer Term FY2013.. Cont. For personal use only • Leverage off key attributes of the Prime business: • Scalable centralised system • Vertically integrated business (Financial Planning, Investment Advice, Life Insurance, Asset Protection incorporating Legal Services, Self Managed Su
Slide 26: Business of the Meeting
Business of the Meeting Business of the Meeting For personal use only • Consideration of Financial Statements • Note: There is no requirement for shareholders to approve these statements • Adoption of the Remuneration Report • Re-Election of Director - Peter Madder
Slide 27: Business of the Meeting: Remuneration Report Resolution
Business of the Meeting Resolution 1 For personal use only • To consider and, if thought fit, to pass (with or without modification) the following as a non-binding ordinary resolution: “That the Remuneration Report for the year ended 30 June 2012 forming part of the Director’s Report be adopted by t
Slide 28: Resolution 2: Re-Election of Director – Peter Madder
Business of the Meeting Resolution 2: Re-Election of Director – Peter Madder For personal use only • To consider and, if thought fit, to pass (with or without modification) the following as an ordinary resolution: “That Mr. Peter Madder, a Director retiring by rotation in accordance with the Company
Slide 29: Thank you
Thank you For personal use only Helping Clients Build Wealth and Protect Assets
Prime Financial Group — Shareholder Meeting (October 2012) on 6ix