CountPlus : AGM Market Update Presentation

onlyuse	ASX announcement
CountPlus Limited
personal	AGM
	Market Update
For	Presentation
	16 November 2021 (Sydney)
	A copy of the presentation is attached.
	This presentation has been authorised for release
	to the ASX by the Board of CountPlus Limited.
	AGM Market Update Presentation FY21

Contact Details

Matthew Rowe

Chief Executive Officer and Managing Director 02 8218 8778 [e-mail]

Laurent Toussaint Chief Financial Officer 02 8218 8778 [e-mail]

Narelle Wooden

General Counsel & Company Secretary 02 8218 8778 [e-mail]

CountPlus Limited

ABN 11 126 990 832

Level 8, 1 Chifley Square, Sydney, NSW 2000

1

For personal use only

CountPlus FY21 Summary

Adjusted EBITA $11.95M (FY20 $12.39M)

Adjusted NPAT $7.44M (FY20 $7.68M)

Adjusted net profit attributable to CountPlus shareholders $5.30M (FY20 $5.95M)

Firm average profit margin increased to 21.50% (FY20 19.80%) excluding Government assistance

Financial Services Segment Adjusted EBITA $2.08M (FY20 $4.28M)

Earnings from Associate Firms under OD-P™ model $2.50M (FY20 $2.18M)

Aggregate Firm EBITA $23.03M (FY20 $20.19M)

Net cash on hand increased to $21.91M (FY20 $21.11M)

Dividend payable of 1.50 cents per share at FY21 (FY20 1.25 cents per share)

AGM Market Update Presentation FY21

2

For personal use only

CountPlus Member Firms

The Company continues to expand through acquisition and has implemented the following transactions during the course of FY21:

• Seven tuck-in acquisitions
• One merger and OD-P™ transaction

In addition, since 1 July 2021, the Company has announced the following transactions:

• Two core-related transactions (Wealth Axis and Accurium)
• One OD-P™ transaction (Southern Cross Business Advisers)
• One merger and OD-P™ transaction (Unite Advisory)

The number of partner firms has grown to 22 (from 18 at 30 June 2020).

We have a strong pipeline of firms for investment under the OD-P™ model.

As at the 30th September 2021

• Cash position: Gross: $27.0M, Net: $20.9M.
• Member Firm EBITA margin: 23% (30/09/2020: 21%).
• Aggregate Firm Revenue (ex JobKeeper) is up 3% for the three months to 30 September 2021 compared with the same period in the prior year.

CountPlus does not provide earnings guidance or forward-looking statements regarding financial performance

AGM Market Update Presentation FY21

3

only	Count Financial - 30th September 2021
use	• In 2H2021 Count Financial EBT was $0.272M. Count Financial has produced an EBT of
	$0.278M for the first quarter of this year.
personal	• 95% of Count Financial advisers have passed the FASEA exam compared with an industry
average of 76%. The remaining advisers will sit the FASEA exam in November 2021.
	• 82% are relevant degree qualified or greater.
	• 11 Professional Year candidates, with 3 already completed.
	• 21 new firms that have joined Count Financial since the start of 2021
	• 2,013 client remediation matters relating to Count Financial assessed by CBA with $5.667M
	in client detriment payments made under the indemnity from CBA. The CBA have provided
	a $300M indemnity to cover past conduct.
For	• Count Financial had 244 financial advisers in the network,.
• The number of advice documents produced per adviser has increased by 51% in the three
	months to 30 September 2021, as compared with the same period in the prior year.

Advice documents
	Total	Avg. per adviser
3 months to 30 Sept 20	4,142	17
3 months to 30 Sept 21	6,228	25
Increase	50%	51%

119 firms, 244 Authorised Representatives across Australia with 18 advisers in advanced due diligence to onboard. We have grown our recruitment pipeline to 220 potential adviser opportunities

100,000		Movement in Gross Business Earnings
90,000
80,000
70,000
			73,404
60,000				No. of advisers: 244
50,000		57,903
	No. of advisers: 315
40,000

AGM Market Update Presentation FY21

4

only

Accurrium - acquired by CountPlus on 1 November 2021

Accurium is a provider of actuarial certificates to the SMSF market which has c.45% market share

For personal use

Background

• Accurium is the market leading provider of actuarial certificates to the SMSF market (~45% market share). The business is based online and is highly automated, using its proprietary actuarial calculator to generate certificates.
• Prior to the transaction, Accurium was a fully-owned subsidiary of Challenger.
• Accurium won the CoreData Actuarial Certificate Provider award for the last three years and was awarded the 2021 Best SMSF Education Provider by SMSF Adviser.

The transaction

• The total purchase consideration is $9.00 million. CountPlus will hold an 85% shareholding in Accurium with Key Management Personnel of Accurium holding 15%, aligning with the CountPlus Owner Drive-Partner(OD-PTM) strategy.
• Douglas McBirnie will become Managing Director of Accurium and it is anticipated that all current serving team members will be retained by the business.

The opportunity

• Core related services: the business is online, highly automated and scalable which can generate additional revenues without a significant increase in overheads
• Education: Accurium is on its pathway to commercialise its leading SMSF education content on a subscription-based model.
• Cross-sell: Accurium's database of ~2,800 accounting firms and ~11,000 SMSF professionals presents a valuable asset as CountPlus continues to grow its partnerships with core related businesses.

Key Financial highlights

• FY21 revenue: $7.1M
• FY21 EBITA: $2.8M

AGM Market Update Presentation FY21

5