Fiducian Group Ltd · ASX:FID
Fiducian — H1 2018-19 Earnings Presentation
20 slides from Fiducian's earnings presentation, Feb 14, 2019
Slide 1: FY 2018-19 H1 Results Investor Presentation
FY 2018-19 H1 RESULTS INVESTOR PRESENTATION Indy Singh – Group Executive Chairman Rahul Guha – Executive Chairman (Fiducian Services) 14 February 2019 1
Slide 2: Agenda
Agenda • Business Overview • Financials • Growth Strategy and Business Outlook • Key Dates and Contacts 2
Slide 3: Highlights: FY 2018-19 H1 Results
Highlights: FY 2018-19 H1 Results HIGHLIGHTS 3
Slide 4: Profit Generating Sustainable Business Model
Profit Generating Sustainable Business Model Management • Process driven, client focused investment products Funds • 15 Managed Funds: 4 Diversified Funds, 4 Sector Funds, 7 Specialist Funds • $2.35 Billion in Funds under Management (FUM) • Market competitive Wrap & Managed Discretionary Accounts (M
Slide 5: Funds Management
Funds Management • 15 Funds using Fiducian’s Manage-the-Manager (MTM) system of investment • Fiducian process delivers greater Diversification with lower risks • Consistently superior results against the world’s best fund managers in the Australian market 1-year return 3-year return 5-year return 7-
Slide 6: WRAP Platforms (FSS/FIS) – FinTech (FORCe & FASTrack)
WRAP Platforms (FSSWRAP Platforms (FSS/FIS) – FinTech (FORCe & FASTrack) • Competitive Fees, Flexible Structure • Public offer “Superannuation Fund” • Investor Directed Portfolio Service (IDPS) • 15 – Multi-manager Funds using the Fiducian Manage-the-Manager system • 57 – Single Manager Fund Choices
Slide 7: Financial Planning – Focus on Quality and Expertise
Financial Planning – Focus on Quality and Expertise • We are selective in recruiting Financial Planners • National footprint with 37 offices, 65 representatives • 5 new franchised planners • $219 million FUA acquisitions* * Of this, $206 million FUA is in the process of assimilation and not included
Slide 8: Integrated Business Model
Integrated Business Model Our clients experience the Fiducian difference: Plus, additional revenue growth Funds if financial markets rise Financial Planning Administration / Management 8.0 Platforms Funds: $2.35 10% $7.2bil Funds: $2.34 billion 7.0 Funds: $1.88 billion billion $6.5bil Revenue: $7.9
Slide 9: Financial Highlights
Financial Highlights FINANCIALS 9
Slide 10: Net Fund In-Flows in Platform
Net Fund In-Flows in Platform Funds Inflows and Outflows (in $ million) Net Funds Inflows - Six monthly (in $ million) 114 115 Net Funds 115 Half Years ending Inflows Outflows Inflows 93 94 90 Dec 13 38 -35 4 74 77 Jun 14 57 -48 9 65 62 Dec 14 78 -49 29 Jun 15 88 -48 40 40 40 29 Dec 15 111 -37 74 Ju
Slide 11: Funds Under Management, Administration and Advice (FUMAA) Growth
Funds Under Management, Administration and Advice (FUMAA) Growth • Despite a market driven decline, the combined Funds under Management, Administration and Advice (FUMAA) was $6.30 billion as at 31 December 2018. • This has since grown to $6.57 billion as at January 2019. FINANCIALS 11
Slide 12: FID outperformance against All Ords Accum Index
FID outperformance against All Ords Accum Index • Since Jun 12, FID has outperformed All Ords by 430% (including dividend) • Dividend pay-out policy is 60- 70% of Net Profit After Tax • H1 dividends is 11 cents – 22% growth over the comparable period FINANCIALS 12
Slide 13: Dividends - $1,000 invested on July 2012
Dividends - $1,000 invested on 1 July 2012 • The above graph shows annualised dividend yield (before franking credits) on $1,000 invested in FID on 01/07/2012. • Double digit EPS growth in 14 out of 18 years since listing FINANCIALS 13
Slide 14: Projecting the Potential: Conceptual Representation
Projecting the Potential: Conceptual Representation The following is a concept extrapolation* of how increasing scale lifts EBITDA at an accelerating rate above a relatively fixed cost base: Funds under Management, Administration and Advice (FUMAA) & EBITDA * This is not a projection or a forward-lo
Slide 15: Regulatory Overview
Regulatory Overview Royal Commission • Fiducian has reviewed the recommendations and welcomed the Final Report by the Hayne Royal Commission into Misconduct in the Banking, Superannuation and Financial Services Industry • Fiducian sees no need to alter its business model or the way it has operated o
Slide 16: Regulatory Overview
Regulatory Overview Vertical Integration • The Royal Commission has examined the vertical integration model and the Commissioner has concluded that “I am not persuaded that it is necessary to mandate structural separation between product and advice.” • A significant part of the industry is already v
Slide 17: Industry Consolidation and Opportunities
Industry Consolidation and Opportunities • Grow Funds Under Advice organically and through strategic acquisitions of financial planning businesses • A number of established participants are exiting or have announced their intentions to exit the industry • New educational standards may expedite advis
Slide 18: Growth Strategy Outlook
Growth Strategy Outlook Funds Leverage of successful Manage-The-Manager Management model and expand in new markets where profitable Distribute SMA capabilities, offer Badged solutions Administration to IFA market and build SMSF Administration Financial Continue to attract high quality planners and e
Slide 19: Key Dates and Contacts
Key Dates and Contacts Key Dates • H1 Dividend Record Date: 28 February 2019, Payment Date: 14 March 2019 • Full Year results announcement: Thursday, 15 August 2019 • Annual General Meeting: Thursday, 17 October 2019 Contacts Investor Relations: Media Relations: Rahul Guha, Julie Hargrave, Executive
Slide 20: Disclaimer
Disclaimer Information in this document and given in the presentation is of a general nature. It is not intended to be, nor does it, constitute financial, legal or tax advice. The information is given in good faith and, although care has been exercised in compiling it, Fiducian Group Limited and the