For personal use only CountPlus Limited (ASX: CUP) Annual General Meeting CountPlus Limited I 19 November 2019
Disclaimer For personal use only This document is a presentation of general Forward looking statements Pro forma financial information background information about the activities of CountPlus Limited (CountPlus) current at the This document contains certain forward-looking statements and CountPlus uses certain measures to manage and report on its date of the presentation. The information comments about future events, including CountPlus’ expectations business that are not recognised under Australian Accounting contained in this presentation is for general about the performance of its business. Forward looking statements Standards. These measures are referred to as non-IFRS background information and does not purport can generally be identified by the use of forward-looking words (International Financial Reporting Standards) financial to be complete. such as ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, information. CountPlus considers that this non-IFRS financial ‘predict’, ‘plan’, ‘propose’, ‘will’, ‘believe’, ‘forecast’, ‘estimate’, information is important to assist in evaluating CountPlus’ It is not intended to be relied upon as advice to ‘target’ and other similar expressions. Indications of, and guidance performance. The information is presented to assist in making investors or potential investors and does not on, future earnings or financial position or performance are also appropriate comparisons with prior periods and to assess the consider the investment objectives, financial forward-looking statements. underlying operating performance of the business. situation or needs of any particular investor. These should be considered, with or without Forward looking statements involve inherent risks and All dollar values used in this document are in Australian professional advice, when deciding if an uncertainties, both general and specific, and there is a risk that dollars (A$) unless otherwise stated. investment is appropriate. such predictions, forecasts, projections and other forward-looking For further detail of the pro-forma financial information statements will not be achieved. Forward looking statements are To the maximum extent permitted by law, presented for CountPlus in the appendices, it should be read provided as a general guide only and should not be relied on as an CountPlus, its related bodies corporate and in conjunction with the results presentation released to market indication or guarantee of future performance. their respective officers, directors and on 26 August 2019. employees, do not warrant the accuracy or Forward looking statements involve known and unknown risks, reliability of this information, and do not accept uncertainty and other factors which can cause CountPlus’ actual any liability to any person, organisation or results to differ materially from the plans, objectives, expectations, entity for any loss or damage suffered as a estimates and intentions expressed in such forward-looking result of reliance on this document. statements and many of these factors are outside the control of CountPlus. As such, undue reliance should not be placed on any forward-looking statement. Past performance is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of promise, representation, warranty or guarantee as to the past, present or the future performance of CountPlus. 2 CountPlus AGM 2019
For personal use only Ray Kellerman Chair CountPlus Limited I Chair’s Address CountPlus AGM 2019
For personal use only Resolutions Ray Kellerman, Chair CountPlus Limited CountPlus AGM 2019
For personal use only Matthew Rowe CEO and Managing Director CountPlus Limited I CEO Address CountPlus AGM 2019
Financial track record Transformation plan delivering improved earnings growth For personal use only Movement – FY19 vs FY18 Financial Results summary FY19 FY18 $’000 $’000 $’000 % Revenue from operating activities 68,646 74,386 (5,740) (8) Adjusted Earnings before interest, tax and amortisation (“EBITA”) 8,262 7,843 419 5 Adjusted Net profit after tax (“NPAT”) 5,002 3,764 1,238 33 Adjusted Net profit attributable to CountPlus shareholders 3,681 2,741 940 34 Adjusted Net profit after tax before amortisation (“NPATA”) 6,442 5,834 608 10 Share of associates earnings 1,553 828 725 88 8,503 8,975 (472) (5) Net cash Reported earnings / (loss) per share – cents 1.48 (0.16) 1.64 1027 Adjusted earnings per share – cents 3.33 2.48 0.85 34 Net asset value per share – cents 25.01 23.70 1.31 6 Notes: • FY19 revenue from operating activities reflects the change in business model for TFS, sale of a non-core asset (Achieve payroll), exit and retirement of Principals; • Adjusted is defined as reported results adjusted for one-off, non-recurring items; and • The FY18 reported loss per share is for continuing and discontinued operations. 6 CountPlus AGM 2019
CountPlus – snapshot For personal use only Industry at a Glance Operating Environment Opportunities Core Clients • Financial Advice Revenue • Major institutional advice players • Major institutional advice players • Mass Affluent exiting – end of product subsidy $4.7B exiting • SME Family/Private AFSL operating models • Accounting Revenue $20.3B • Increasing regulation Business • Accountant and Financial Adviser • 19,554 Financial Advice Firms • New education and professional • SMSF succession standards Increasing barriers to • 34,731 Accounting Firms • SME Self Employed • Consolidation of smaller competitors entry for financial advisers • Mature lifecycle • Financial Adviser population • Economies of scale with larger • Low level of concentration dislocation and exit network • SMSF, Superannuation and • “old world” revenue models • “old world” revenue models under retirement advice significant pressure – new model “user pay” under pressure revenue segments across model needed and benefits of scale • Major succession planning Accounting and Financial becoming apparent challenges Advice • Investment in specialist tools that • Supply side pressures – • Remains an unmet need for allow vertically integrated consumer demand for financial Financial Advice professional advice business – advice stable and increasing separate product and advice • Technology and data playing • Leverage trusted adviser status of role in dislocation. Scale now Accountants required to play 7 CountPlus AGM 2019
CountPlus investment activity Since the last AGM, CountPlus has successfully completed six investments For personal use only Investments made in Core O’Brien Rundles Kerry Albert & Co DMG Financial Count Financial Latitude Advisory November 2019 April 2019 March 2019 November 2019 October 2019 Services 40% purchased 40% purchased 30% purchased 100% purchased Purchased as a tuck in to November 2019 Four Principal Three Principal Unite Advisory. Oldest Australia’s Ten Principal converged Purchased as a tuck in to converged firm based converged firm based Count Financial firm in firm based in Sale largest AFSL in the Kidmans Partners in Melbourne in Melbourne Coffs Harbour and Yarram converged space $0.900M invested $1.164M invested $2.481M invested $1.205M invested $2.891M invested $2.500M invested 8 CountPlus AGM 2019
Owner, Driver – Partner: Investment in DMG Financial announced 18 th November 2019 For personal use only Owner, Driver-Partner model • CountPlus Limited continues its growth strategy with the acquisition of a 30% interest in DMG Financial, a significant regional practice located in Sale, Victoria (Gippsland). The practice is one of the largest in the greater Gippsland region and has seven shareholder-principals • The existing DMG management and team will remain in place • Together with CountPlus, DMG will implement synergies between the two groups moving forward • The acquisition extends CountPlus’ network from 19 to 20 Partner firms, and will be earnings accretive • Consideration for the investment is a cash payment of $2.891 million 9 CountPlus AGM 2019
Update – Count Financial An accounting-led financial advice future For personal use only 10 CountPlus AGM 2019
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