& EQUITY RAISING FOR ACQUISITIONS 16 February 2015 Presenters Robert Kelly, Managing Director & CEO Stephen Humphrys, Chief Financial Officer Steadfast, the Steadfast logos, Strength when you need it, None of us is as good as all of us, SVU and Steadfast Virtual Underwriter are registered trademarks of Steadfast Group Limited in Australia and other countries.
Important notice This presentation has been prepared by Steadfast Group Limited (“Steadfast”) . Summary information This presentation contains general information in summary form which is current as at 16 February 2015. This presentation is not a recommendation or advice in relation to Steadfast or any product or service offered by Steadfast or its subsidiaries. It is not intended to be relied upon as advice to investors or potential investors, and does not contain all information relevant or necessary for an investment decision or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act 2001 (Cth). It should be read in conjunction with Steadfast’s other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, ASX Limited, and in particular the Steadfast 2014 Annual Report and the 31 December 2014 half year financial report. These disclosures are also available on Steadfast’s website at www.steadfast.com.au. Not an offer This presentation is not a prospectus, product disclosure statement or any other offering document under Australian law (and will not be lodged with the Australian Securities and Investments Commission) or any other law. This presentation is for information purposes only and is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction. The distribution of this presentation outside Australia may be restricted by law. Any recipient of this presentation who is outside Australia must seek advice on and observe any such restrictions. This presentation may not be reproduced or published, in whole or in part, for any purpose without the prior written permission of Steadfast. Not investment advice or a recommendation This presentation does not constitute investment or financial product advice, nor is it a recommendation to acquire entitlements or shares in Steadfast. It is not intended to be used as the basis for making a financial decision, nor is it intended to constitute legal, tax, accounting or other advice. Any references to, or explanations of legislation, regulatory issues, benefits or any other legal commentary (if any) are indicative only, do not summarise all relevant issues and are not intended to be a full explanation of a particular matter. Recipients should make their own enquiries and investigations regarding any investment, and should seek their own professional advice on the legal, financial, accounting, taxation and other consequences of investing in Steadfast. This presentation has been prepared without taking into account your investment objectives, financial situation or particular needs. No reliance may be placed for any purpose whatsoever on the information contained in this presentation or on its accuracy or completeness. Investment risk An investment in shares is subject to known and unknown risks, some of which are beyond the control of Steadfast, including, possible loss of income and principal invested. Steadfast does not guarantee any particular rate of return or the performance of Steadfast, nor does it guarantee any particular tax treatment. Investors should have regard to the risk factors outlined in this presentation when making their investment decision. Disclaimers None of Steadfast’s advisers, nor any of their respective affiliates, related bodies corporate, directors, officers, partners, employees, contractors or agents (“Limited Parties”), have authorised, permitted or caused the issue, dispatch or provision of this presentation and there is no statement in this presentation which is based on any statement by them. None of the Limited Parties take any responsibility for any information in this presentation or any action taken by investors on the basis of such information, and except to the extent referred to in this presentation, none of them makes or purports to make any statement in this presentation. 2
Important notice (cont’d) No representation or warranty, express or implied, is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this presentation. To the maximum extent permitted by law, Steadfast, its subsidiaries and their respective directors, officers, employees and agents disclaim all liability and responsibility for any direct or indirect loss or damage which may be suffered by any recipient through use of or reliance on anything contained in or omitted from this presentation. No recommendation is made as to how investors should make an investment decision. Investors must rely on their own examination of Steadfast, including the merits and risks involved. Investors should consult with their own professional advisors in connection with any acquisition of securities. The information in this presentation remains subject to change without notice. No person is under any obligation to provide any recipient of this presentation with any access to any additional information or to notify any recipient or any other person of any other matter arising or coming to its notice after the date of this presentation. Forward-looking statements The information in this presentation is for general information only. To the extent that certain statements contained in this presentation may constitute “forward - looking statements” or statements about “future matters”, the information reflects Steadfast’s intent, belief or expectations at the date of this presentation. Steadfast gives no undertaking to update this information over time (subject to legal or regulatory requirements). Any forward-looking statements, including projections, guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that are outside Steadfast’s control and may cause Steadfast’s actual results, performance or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements. Any forward-looking statements, opinions and estimates in this presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Neither Steadfast, nor any other person, gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. In addition, please note that past performance is no guarantee or indication of future performance. Possible factors that could cause our results or performance to differ materially from those expressed in our forward looking statements include the risk factors set out on pages 30-32 of Steadfast 2014 Annual Report. Financial data Local currencies have been used where possible. Prevailing current exchange rates have been used to convert local currency amounts into Australian dollars, where appropriate. All references starting with “FY” refer to the financial year ended 30 June. For example, “FY 15 ” refers to the year ended 30 June 2015. All references starting with “ 1H FY” refer to the financial half year ended 31 December. For example, “ 1H FY15 ” refers to the half year ended 31 December 2014. 3
Summary • 1H FY15 NPATA (cash profits) in line with guidance and slightly ahead of update on 29 January 2015 • Calliden acquisition completed on 23 December 2014 • Acquisition of two underwriting agencies (UAA and CHU) and one insurance broker from QBE and one Steadfast Network Broker (“Acquisitions”) with combined normalised historical EBITA of ~$40m¹ and expected adjusted cash EPS accretion of 10% on a full year basis • Equity raising of $300 million announced to primarily fund the Acquisitions and enhance balance sheet capacity • Guidance for FY15 cash EPS growth revised upwards to range of 22% to 25% 2 to include Calliden and the Acquisitions, up from previous range of 10% to 13% excluding Calliden and the Acquisitions 1 Post sell-down to management of 10% for UAA and 6% for IC Frith. 2 Based on FY14 pro-forma cash EPS of 8.23 cents per share adjusted to 7.94 cents per share, using bonus factor to reflect re-basing of EPS as a result of the entitlement offer. 4
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