Psg Financial Services Limited · JSE:KST

Psg Financial Services — PSG Konsult — SBG Securities' General Financials Conference 2013

25 slides from Psg Financial Services's conference presentation, Nov 25, 2013

  1. Slide 1: PSG Konsult Group

    PSG KONSULT GROUP 1 SBG Securities’ General Financials Conference Francois Gouws

  2. Slide 2: Agenda

    Agenda 1 Our Firm 2 New Structure 3 Strategy 4 Conclusion 2

  3. Slide 3: Agenda

    Agenda 1 Our Firm 2 New Structure 3 Strategy 4 Conclusion 3

  4. Slide 4: Our Footprint

    1 Our Footprint We are the largest independent intermediary in South Africa… 220 Offices 610 Advisors 140,000 + clients 4

  5. Slide 5: Emotional Connection to Our Clients

    1 Emotional Connection to Our Clients Source : Donald R. Keough 5

  6. Slide 6: Business Characteristics

    1 Business Characteristics Equity market dependant Regulatory change Administration businesses people / systems dependant Free cashflow generative Not very balance sheet intensive 6

  7. Slide 7: Financial Trend

    1 Financial Trend Our business has grown significantly since 2005… Growth Feb‐05 Feb‐06 Feb‐07 Feb‐08 Feb‐09 Feb‐10 Feb‐11 Feb‐12 Feb‐13 CAGR % Aug‐12 Aug‐13 % Assets (R'Bn) 14 21 43 53 44 72 97 139 173 37% 150 200 33% Revenues (R’M) 160 246 540 712 756 835 982 1,379 1,570 33% 797 1,159 45% Headline

  8. Slide 8: Agenda

    Agenda 1 Our Firm 2 New Structure 3 Strategy 4 Conclusion 8

  9. Slide 9: Organisational Structure

    2 Organisational Structure * ** * Includes PSG Employee Benefits ** Includes Western National Insurance 9

  10. Slide 10: Execution: Structural Changes

    2 Execution : Structural Changes Regulatory Approvals New set of reports and basis for accounting Risks and conflicts review Repositioning Integration 10

  11. Slide 11: Execution: People Related Changes

    2 Execution : People Related Changes New management group Staff movement to new businesses Staff movement to right locations New Incentive Structure Performance Review Hireplan 11

  12. Slide 12: Execution: Business Related Changes

    2 Execution : Business Related Changes Daily Reporting of Asset Flows (Single / Multi Management) Weekly Activity Report for all Sales Teams (Production report coming) Weekly HR Reporting Monthly Reporting of all Risk Monthly Funds & Securities Committee and Product Committee (with Advisors) Monthly

  13. Slide 13: Divisional Earnings

    2 Divisional Earnings Strategy is to vertically integrate… Feb-12 Feb-13 Growth Aug-13 Aug-14 Growth Headline Earnings R'mil R'mil % R'mil R'mil % PSG Wealth Management 118 137 17% 61 75 22% PSG Asset Management 25 31 26% 11 20 77% PSG Insure 20 14 -29% 4 14 226% Total 162 183 13% 77 109 41% …Provid

  14. Slide 14: Agenda

    Agenda 1 Our Firm 2 New Structure 3 Strategy 4 Conclusion 14

  15. Slide 15: Wealth Management

    3 Wealth Management Key Growth: R’m Headline Earnings Trend Advisors 140 +17%  Larger Offices 120  More Offices 100 +22% 80 Products 132 60 118  Multi Management 40 75 61  Discretionary 20 0 Platform Feb‐12 Feb‐13 Aug‐13 Aug‐14  Reduce providers PSG Wealth Management 15

  16. Slide 16: Multi-Management Net Flows

    3 Multi‐Management Net Flows R’m Net Flows Source : PSG Asset Management 16

  17. Slide 17: Asset Management

    3 Asset Management Key Growth: R’m Headline Earnings Trend Distribution +26%  Institutional  Own Advisors +77% Products  Fixed Income  International Performance  Cautious on Bond market  Better value internationally 17

  18. Slide 18: Single Managed (Ex MM) Net Flows

    3 Single Managed (Ex MM) Net Flows 1,157 R’m Anet Ahern Joins Net Flows Source : PSG Asset Management Excludes Money Market Funds 18

  19. Slide 19: Top PlexCrown Overall Ranking

    3 Top 3 PlexCrown Overall Ranking Total Overall PlexCrown Q1 2013 Q2 2013 Q3 2013 Rank Score Rank Score Rank Score Rank Allan Gray 4.613 2 4.523 2 4.528 1 Coronation 4.906 1 4.657 1 4.499 2 PSG 3.577 5 3.698 4 4.058 3 Nedgroup Investments 3.837 3 4.152 3 3.964 4 Absa 3.603 4 3.299 8 3.567 5 Investme

  20. Slide 20: Insure

    3 Insure Key Growth: R’m Headline Earnings Trend Advisors ‐29%  Larger Offices  More Offices +226% Products  Western National Insurance  Reduce Providers Platform  Efficiency 20

  21. Slide 21: Insure Organisational Structure

    3 Insure Organisational Structure Rikus Visser CEO : Insure Division Johann Hugo Insure COO Jurgen Gordon Vacant Hellweg Whitcher CEO : Western National Head : PSG ST Distribution Head : Administration 21

  22. Slide 22: Our Brand is Getting Stronger

    3 Our Brand is Getting Stronger We are gaining industry recognition on all fronts… PSG Wealth:  SA Stockbroker of the year 2011, 2012 & 2013 PSG Asset Management:  Multiple Raging Bull and Morningstar awards  Plexcrown Top 3 Collective Investment Scheme Manager for Q3 2013 PSG Insure:  Santam Pe

  23. Slide 23: Agenda

    Agenda 1 Our Firm 2 New Structure 3 Strategy 4 Conclusion 23

  24. Slide 24: What Do We Need To List

    4 What Do We Need To List We want to bed down the new structure; and We want to produce one set of results under the new structure 24

  25. Slide 25: Conclusion

    4 Conclusion Our aim is to ensure that… We have a good working relationship with our regulators; Each business maintains a clear focus; Our Distribution is co‐ordinated; We continue to produce high ROE’s; and We limit any issue of new shares. 25

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