1H20 Results Briefing Half-year ended 31 December 2019 February 2020
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Agenda 1 Strategy and 1H20 update Peter Anderson 2 Financial results Paul Ryan 3 Outlook Peter Anderson 3
Section 1 Strategy and 1H20 update Peter Anderson
FY20 a year of transition Building a platform for growth – what have we done since July 2019? ◊ Refined management structure and operations Improved business ◊ Increased inter and intra-divisional interactions; co-location where practical integration ◊ Enhanced communications ◊ Co-ordinated strategic business development ◊ Exited non-core businesses and deliberately transitioning away from related party revenues Financial discipline ◊ Rationalised cost base (people, premises, discretionary overheads) ◊ Enhanced focus on return on capital ◊ Increased managerial accountability against defined metrics ◊ Identified core strengths and focus areas for each business division Leveraging existing ◊ Clear strategic objectives to capitalise on strengths and optimise integration infrastructure 5
Divisional strategies Optimising our infrastructure to leverage future growth Wealth Advice E&P Funds Management Expand and diversify distribution Strong advice platform, systems Growth from improved integration across corporate and institutional along with enhanced governance and risk framework businesses ◊ Differentiated service offering of ◊ Co-ordinated program to leverage ◊ Enhanced distribution of strong highly educated, quality advisers inter and intra-divisional industry performing high conviction equities supported by specialised research and client relationships portfolios and alternative investment and investment staff strategies ◊ Core value proposition is continued ◊ Increased alignment with investors ◊ Compliance and governance investment in quality research and focused infrastructure positions idea generation overlaid by market through co-investment and improved governance business well for industry change leading M&A/ECM/DCM capability ◊ Best of breed risk and compliance system supports significantly increased scale Positioning the business for the Australian financial services landscape of the future 6
Key medium term drivers Fundamentals stable as business positions for growth and industry changes Wealth Advice E&P Funds Management Funds under advice ($bn) Revenue ($m) Gross funds under management ($bn) $21.0bn $31.5m $6.6bn 4% 21% 3% on prior period on prior period on prior period 40 25 34.4 8 21.0 6.8 20.1 35 31.5 6.6 7 18.3 17.9 20 17.8 5.9 30 5.6 26.1 25.0 6 24.4 5.2 25 15 5 ($bn) ($m) ($bn) 20 4 10 15 3 10 2 5 5 1 0 0 0 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19 1H18 2H18 1H19 2H19 1H20 Note: Past performance is not a reliable indicator of future financial performance. 7
1H20 result An improvement on prior half as cost and business initiatives take shape Net revenue ($m) Underlying EBITDA ($m) 1 25 110.2 20.8 120 101.9 102.9 20 100 4.1 35.1 31.2 34.3 80 15 60 23.3 31.0 27.1 24.9 10 16.7 40 13.8 5 44.1 42.7 44.6 20 0 0 1H19 2H19 1H20 1H19 2H19 1H20 Underlying EBITDA Impact of AASB 16 Wealth Advice E&P Funds Management Underlying earnings per share (cents) 2 Dividends per share (cents) 8 6 7 5 6 4 5 4 3 6.8 5.0 3 2 2 3.9 3.0 2.5 3.0 1 1 0 0 1H19 2H19 1H20 1H19 2H19 1H20 Notes: 1 From 1 July 2019, the Group adopted AASB 16, Leases using the modified retrospective approach. This involved retrospective application of the standard without restatement of statutory comparatives. To assist with comparison to prior periods, where relevant, EBITDA has been presented with and without the change in Standard. 2 Calculated using weighted average shares outstanding of 224.8 million for the six months to 31 December 2019 and 1H20 underlying NPATA of $8.8 million. 3 Non-IFRS measures such as underlying NPATA and underlying EBITDA used in this presentation are defined in the glossary. The adjustments to NPAT and EBITDA for 1H20 and 1H19 are outlined on slide 28. 4 Past performance is not a reliable indicator of future financial performance. 8
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