Prime Financial Group Limited · ASX:PFG
Prime Financial — Shareholder Meeting (October 2012)
26 slides from Prime Financial's shareholder meeting presentation, Oct 18, 2012
Slide 1: Annual General Meeting 18 October 2012
Annual General Meeting 18 October 2012 Helping Clients Build Wealth and Protect Assets
Slide 2: Welcome
Welcome • 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 3: Agenda
Agenda • Chairman's Address – Stuart James • Managing Director/CEO’s Report – Simon Madder • Business of the Meeting
Slide 4: Managing Director/CEO's Report
Managing Director/CEO’s Report Simon Madder Helping Clients Build Wealth and Protect Assets
Slide 5: Prime Financial Group Ltd – Positioning
Prime Financial Group Ltd – Positioning • 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 • Accounting Services
Slide 6: Prime Financial Group Ltd – Positioning… cont
Prime Financial Group Ltd – Positioning… cont • 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 with Accounting clien
Slide 7: Structure Chart
Structure Chart 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 Firms Access to 40,000+ p
Slide 8: FY2012 Results Summary Introduction
FY2012 Results Summary 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. Furthermore, regulatory reforms
Slide 9: FY2012 Results Summary Introduction.. cont
FY2012 Results Summary 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% reflecting an investment in
Slide 10: FY2012 Achievements: Licensing Model and Prime MPS
FY2012 Achievements 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 Accounting Firm Partn
Slide 11: FY2012 Achievements: Prime Legal Services, New Brand
FY2012 Achievements 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 • Although in its infancy Prim
Slide 12: FY2012 Results Summary: Wealth Management Results
FY2012 Results Summary 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 expansion plan. This is a
Slide 13: Summary Full Year Results
Summary Full Year Results 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 (NPAT) ($M) 3.84 2.81 - 27
Slide 14: Summary Profit & Loss (Normalised)
Summary Profit & Loss (Normalised) % Change FY11 1H12 2H12 FY12 FY11 v FY12 Wealth Management – New Business Revenue ($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/a Total Wealth Managem
Slide 15: Wealth Management Revenue
Wealth Management Revenue 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 • Asset Protection & Life
Slide 16: Key Metrics – Wealth Management Licensing Revenue
Key Metrics –Wealth Management Licensing Revenue 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 Client Engagement Model. T
Slide 17: Key Metrics – New Business Leads
Key Metrics – New Business Leads 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 Existing FY11 Clients 20
Slide 18: Key Metrics – FUM Net Inflows and Net Margin
Key Metrics – FUM Net Inflows and Net Margin 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 ($M) (11.5) (9.2) (20.
Slide 19: Accounting and SMSF Services Investees
Accounting and SMSF Services Investees Accounting and SMSF Services Revenue Prime’s 9 Accounting and SMSF Investees represent 15% of the Prime’s Gross Revenue % Change FY11 FY12 FY11 v FY12 Underlying Accounting and SMSF Revenue ($M) 2.19 2.08 - 5% Accounting and SMSF Corporate Revenue ($M) 1.05 0 n
Slide 20: Summary Balance Sheet
Summary Balance Sheet 30/06/11 30/06/12 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 Current Liabilities Borr
Slide 21: FY2013 Targets & Longer Term
FY2013 Targets & Longer Term 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 structure rollout to exi
Slide 22: FY2013 Targets & Longer Term cont.
FY2013 Targets & Longer Term FY2013.. Cont. • 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 Super & Accounting Servi
Slide 23: Business of the Meeting
Business of the Meeting Business of the Meeting • 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 24: Resolution 1: Remuneration Report
Business of the Meeting Resolution 1 • 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 the members.” Proxy Vot
Slide 25: Resolution 2: Re-Election of Director – Peter Madder
Business of the Meeting Resolution 2: Re-Election of Director – Peter Madder • 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’s Constitution, and o
Slide 26: Thank you
Thank you Helping Clients Build Wealth and Protect Assets
Prime Financial Group — Shareholder Meeting (October 2012) on 6ix