Slide 1: 2008 Full Year Results
ACN 009 487 674 Level 16, 90 Collins Street Melbourne VIC 3000 27 August 2008 Tel 03 9827 6999 Company Announcements Office Fax 03 9827 9100 Australian Stock Exchange Limited For personal use only www.primefinancial.com.au 2008 FULL YEAR RESULTS RESULTS 33% INCREASE IN NPAT & 22% INCREASE IN FULL FU
Slide 2: Chairman appointment and contact
Mr Stuart James, a current Prime director has been appointed by the Board as Chairman. Mr James has extensive Financial Services experience as Managing Director of Australian Financial Services for Colonial and as Managing Director of Colonial State Bank (formerly the State Bank of N.S.W). Mr James’
Slide 3: Full Year Results Presentation – August 2008
Full Year Results Presentation – 27 August 2008 For personal use only Presented by – Simon Madder (Managing Director & CEO) National Financial Services & Advisory Group
Slide 4: Results Overview
Results Overview For personal use only 2008 Full Year net profit after tax (NPAT) = $6.82M ( ( 33% over pcp) - Up from $5.12M in 2007 2008 Full Year dividend = 2.8cps ( ( 22% over pcp) - Up from 2.3cps in 2007 - Dividend to be paid on 14 October 2008 Positive operating cash flow of $6.2M for Full Ye
Slide 5: Key Points – Last 12 Months
Key Points – Last 12 Months For personal use only Financial Planning, Self Managed Super & Accounting Services - Growth & Increased Contribution - Contributed 108% of result, up from 76% in the pcp Funds Management (FM) & Listed Investments (ASOF) - Negative Contribution - Contributed (8%) of result
Slide 6: Key Points – Last 12 Months
Key Points – Last 12 Months For personal use only Divested Non- Non-Core Businesses & Investments - 3 in total - Listed Investments (ASOF), Corporate Advisory & GPCA Continued Integration with Carroll Pike & Piercy Pty Ltd (CPP) Last 12 months - Confirms strength of business model - Profit grew 33%
Slide 7: Financial Information
Financial Information For personal use only Financials (2005, 2006, 2007 & 2008) 2005 2006 2007 2008 % Increase Earnings before interest & tax (EBIT) ($M) 0.60 2.51 7.49 9.11 22% Net profit after tax ($M) 0.57 1.90 5.12 6.82 33% Dividend paid & proposed ($M) 0.39 1.27 3.11 3.80 22% Basic earnings (c
Slide 8: Prime Group Structure
Prime Group Structure For personal use only Prime’s operations extend to five states and capital cities throughout Australia including Melbourne, Sydney, Brisbane, Perth and Hobart
Slide 9: Operations & Investments
Operations & Investments For personal use only Financial Planning & Self Managed Superannuation - 80 – 90% of earnings - Retail Financial Planning & Private Client Advice (Prime & CPP) - White Label 50 / 50 equity & distribution agreements with 30 Accounting Firms Accounting Services Investments - 7
Slide 10: Profit Contribution
Profit Contribution For personal use only % of Prime's Profit Share 100% 80% 60% 90% 40% 64% 20% 18% 12% 10% 13% 0% -6% 2007 2008 2007 2008 -2% 2007 2008 2007 2008 -20% Financial Planning Accounting Funds ASOF & SMSF's Services Management Note: % differential in 2007 accounts for Corporate Advisory,
Slide 11: Result Dissected
Result Dissected For personal use only Financial Planning & Self Managed Superannuation 90% of Earnings - 90% over pcp from $3.26M to $6.20M - Margin improvement of 3 – 4%, despite declining equity markets & effect on ‘Ongoing Fees’ Accounting Services 18% of Earnings - 91% over pcp from $0.64M to $
Slide 12: Result Dissected
Result Dissected For personal use only Funds Management (2%) Negative Contribution to Earnings - over pcp from $0.50M to ($0.10M) - Margin fell due to adverse equity market conditions Listed Investments (ASOF) (6%) Negative Contribution to Earnings - over pcp from $0.67M to ($0.41M) - Value of Inves
Slide 13: Financial Planning & Self Managed Super
Financial Planning & Self Managed Super For personal use only Continuing Growth - Access to + 40,000 clients, base of organic growth for past 7 – 8 years & going forward - Mandated growth through SG - ‘Choice’ for clients (MF’s, Direct Equities, Platform or not, various insurance companies) - Prime’
Slide 14: Financial Planning & Self Managed Super
Financial Planning & Self Managed Super For personal use only SMSF’s - Expected to be largest sector of Super by 2015 (Fastest growing area) - Currently Advise on + 800 SMSF’s - Administer + 4,000 in the group (Increase penetration - Accountants & Planners working together) - Establish SMSF’s for cl
Slide 15: Accounting Services
Accounting Services For personal use only Prime’s 7 Accounting Services Investees performed well during the year - 2 performed inline with minimum expectations - 3 grew at 5 – 10% - 2 exceeded 20% Hedge against equity market conditions & effect on ‘ongoing fees’ Typically Accounting Services do not
Slide 16: Accounting Services
Accounting Services For personal use only Main Challenge - Access to Accounting staff - Outsourcing considered for repetitive tasks that can be standardised Tuck- Tuck-in acquisitions for existing investees considered on case by case basis Good distribution partner for financial planning & self mana
Slide 17: Funds Management
Funds Management For personal use only Difficult operating environment due to adverse equity market conditions Underperformance based on; - A reduction in asset based fees as equity markets declined - No performance fees (First year in last five years) - Higher than usual redemptions Current Ongoing
Slide 18: Looking Forward
Looking Forward For personal use only Focus on Core Operations – Growth Opportunities - Financial Planning, Self Managed Superannuation & Accounting Services Margin Improvement - Financial Planning & Self Managed Super - Enlarged team of advisers via CPP – Assist to grow FUM (No increase in overhead
Slide 19: Looking Forward
Looking Forward For personal use only Assess acquisition & distribution partner opportunities - case by base basis - Growth & Commitment = main criteria Current market conditions remain challenging for foreseeable future - Service existing clients & differentiate offering to potential clients Foreca
Slide 20: Contact
Contact For personal use only Simon Madder Managing Director / CEO Prime Financial Group Ltd Level 16, 90 Collins Street Melbourne VIC 3000 Level 17, Como Office Tower 644 Chapel Street South Yarra VIC 3141 Tel 03 9827 6999 Fax 03 9827 9100 simonm@primefinancial.com.au