CountPlus : Investor Presentation

For personal use only

ASX announcement

CountPlus Limited

2022 HALF-YEARRESULTS

Presentation and Investor Discussion Pack 24 February 2022 (Sydney).

This presentation has been authorised for release to the ASX by the Board of CountPlus Limited.

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For personal use only

Important information

This presentation is provided for information purposes only. The information in this presentation is in a summary form, does not purport to be complete and is not intended to be relied upon as advice to investors or other persons. The information contained in this presentation was provided by CountPlus Limited ABN 11 126 990 832 (CountPlus) as of its date and remains subject to change without notice. This presentation has been provided to you solely for the purpose of giving you background information about CountPlus and should be read in conjunction with

CountPlus' market releases on the ASX.

No representation or warranty, express or implied, is made as to the accuracy, reliability, completeness or fairness of the information, statements, opinions or matters contained in this presentation. CountPlus, its related bodies corporate, shareholders or affiliates, nor any of their respective officers, directors, employees, related bodies corporate, affiliates, agents or advisers makes any representations or warranties that this presentation is complete or that it contains all material information about CountPlus or which a prospective investor or purchaser may require in evaluating a possible investment in CountPlus or applying for, or a subscription for or acquisition of, shares in CountPlus.

To the maximum extent permitted by law, none of those persons accept any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this presentation or in relation to the accuracy or completeness of the information, statements, opinions or matters, express or implied, contained in, arising out of or derived from, or for omissions from, this presentation.

Certain statements in this presentation may constitute forward-looking statements or statements about future matters (including forecast financial information) that are based upon information known and assumptions made as of the date of this presentation. These statements are subject to internal and external risks and uncertainties that may have a material effect on future business. Actual results may differ materially from any future results or performance expressed, predicted or implied by the statements contained in this presentation. As such, undue reliance should not be placed on any forward-looking statement. Past performance is not necessarily a guide to future performance. Nothing contained in this presentation nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee, whether as to the past, present or future by CountPlus or any other person.

The provision of this presentation is not a representation to you or any other person that an offer of securities will be made and does not constitute an advertisement of an offer or proposed offer of securities. CountPlus has not independently verified any of the contents of this presentation (including, without limitation, any of the information attributed to third parties).

This presentation is not, and does not constitute, an offer to sell or the solicitation, invitation or recommendation to purchase any securities in CountPlus and neither this presentation nor any of the information contained herein shall form the basis of any contract or commitment. This presentation does not constitute financial product advice to investors or other persons and does not consider the objectives, financial situation or needs of any particular investor. A reader should, before making any decisions in relation to their investment seek their own professional advice.

All currency amounts are in AUD unless otherwise stated.

2022 Half-Year Results Presentation

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CountPlus 1H2022 Summary

personal use only

Reported earnings and underlying performance

• Reported Earnings Before Interest, Tax and Amortisation ('EBITA') $5.90M (1H2021 $8.88M incorporating grandfathered commissions of $1.78M and government assistance of $2.70M which reduced to $0.17M in 1H2022).
• Underlying EBITA reflecting the group's trading and M&A activities is $5.73M, an increase of $1.34M from underlying EBITA in 1H2021 of $4.39M. Underlying EBITA compares 1H2021 and 1H2022 by stripping out the impact of grandfathered commissions and government assistance received in 1H2021 and to a much lesser extent, in 1H2022.
• Reported NPAT $4.65M (1H2021 $5.55M incorporates grandfathered commissions of $1.25M which ceased by 31 December 2020 and government grants of $2.01M which reduced by $1.87M in 1H2022). Reported NPAT attributable to CountPlus shareholders $3.44M (1H2021 $4.08M incorporates grandfathered commissions of $1.10M which ceased by 31 December 2020 and government grants of $1.61M which reduced by $1.49M in 1H2022).
• Fully franked dividend of 1.50 cents per share at 1H2022.

For

New Core Related	•	Two Core Related acquisitions, One Core Accounting Firm acquisition, One Core Accounting Firm associate acquisition, and One tuck-in acquisition
	in 1H2022.
segment
•	New "Core Related" segment EBITA $0.63M (1H2021 nil) reflecting contribution from Accurium and Wealth Axis.

Financial Advice	• Financial Advice segment EBITA of $0.69M (1H2021	$1.61M) showing business has transitioned to new model without grandfathered revenue.
segment positioned for	• Financial Advice segment has 263 Financial Advisers as at 13 February 2022 as we have onboarded 15 new Advisers since reporting date 1H2022
growth	(248 advisers).

Core Accounting Firms	• Core Accounting Firms average profit margin improved to 22% at 1H2022 (1H2021 20%).
• Core Accounting Firms lock up improved to 78 days (1H2021 81 days).
improve key metrics
• Earnings from Associate Firms under Owner, Driver - Partner ("OD-P™") model $1.78M (1H2021	$1.75M).

Capital to execute	•	Net cash on hand $11.48M at 1H2022 (1H2021 $22.79M).
growth strategy	•	Banking facility with Westpac of $25.00M extended for four years until 21 December 2025.

2022 Half-Year Results Presentation

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2022 Half-Year Results Overview

CountPlus Economic Engine - Segment Results Overview

For personal use

Group

$'000	1H2022	1H2021
Total Segment EBITA	7,722	10,511
Share of associate firm earnings, before	1,708	1,588
Government Grants
Corporate office and other costs, before	(3,603)	(3,779)
Government Grants
Government Grants paid to Associates and	74	555
Corporate Office
Reported EBITA	5,901	8,875
Amortisation - Acquired Customer	(656)	(577)
Relationships
Amortisation - other	(129)	(97)
Net Finance Costs	(542)	(504)
Profit before tax	4,574	7,697
Taxation	77	(2,150)
NPAT	4,651	5,547
Minority Interest	(1,209)	(1,465)
NPAT attributable to shareholders	3,442	4,082

In 1H2022 carried forward capital and revenue tax losses have resulted in a net income tax benefit being recognised in the Statement of Comprehensive Income.

Segments

	1H2022	1H2021
Core Accounting Firms	$'000s	$'000s
Gross revenue	33,296	34,228
Intercompany revenue	(241)	(173)
External revenue	33,055	34,055
Contribution	15,076	16,894
Other Income	1,895	2,435
Operating expenses	(10,563)	(10,427)
Reported EBITA	6,408	8,902
Government Grants	97	2,144
Underlying EBITA	6,311	6,758

Core Accounting Firms have performed satisfactorily despite the economic challenges posed by COVID-19. This segment does not include share of Associate Firm earnings (i.e. firms with minority interest - refer group).

	1H2022	1H2021
Financial Advice	$'000s	$'000s
Gross revenue	7,213	8,223
Intercompany revenue	-	-
External revenue	7,213	8,223
Contribution	4,648	5,907
Other Income	-	-
Operating expenses	(3,959)	(4,298)
Reported EBITA	689	1,609
Grandfathered revenue	-	1,784
Underlying EBITA	689	(175)

Market factors meant some new advisers received fee discounts during this period. Discounts roll off 12 months post onboarding.

	1H2022	1H2021
Core Related	$'000s	$'000s
Gross revenue	1,788	-
Intercompany revenue	(160)	-
External revenue	1,628	-
Contribution	1,195	-
Other Income	-	-
Operating expenses	(570)	-
Reported EBITA	625	-
Nil	-	-
Underlying EBITA	625	-

Acquisition of Accurium and Wealth Axis during the period resulted in the creation of this new segment.

2022 Half-Year Results Presentation

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2022 Half-Year Results Overview

Underlying EBITA

Underlying EBITA	1H2021	2H2021	1H2022	Movement - 1H2022 vs 1H2021
$'000	$'000	$'000	$		%
EBITA - Reported	8,875	3,071	5,901	(2,974)		(34)
Government Grants	(2,699)	(255)	(170)	2,529		94
Grandfathered Commissions	(1,784)	-	-	1,784		100
Underlying EBITA	4,392	2,816	5,731	1,339		30

For

EBITA per report period - $'000

10,000

9,000

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1H2021	2H2021	1H2022
Underlying EBITA	Government Grants	Grandfathered comissions

The underlying performance of the group's activities reflects an increase in EBITA over the previous corresponding period of $1.34M (30%) due to:

• the impact of the cessation of grandfathered commissions of $1.78M
• the reduction in government grants of $2.53M.

2022 Half-Year Results Presentation

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