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1H 2025 Results 26 February 2025 Authorised by Andrew Bennett Group Chief Executive Officer For personal use only
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-6% on pcp 1HY 2025 Financial Highlights Revenue1 $251.0m EBITDA to shareholders2 $18.6m NPATA to shareholders2 $11.8m EPSA2 5.98cps 1. Underlying revenue excludes interest income (1H25 $2.0m, 1H24 $1.7m). Prior comparative information has been adjusted to conform with reclassifications between revenue and other profit and loss line items affecting the current period presentation. 2. Underlying basis attributable to shareholders. Excludes transaction costs (1H25 $nil, 1H24 $0.2m after tax) and COG’s 21.45% and 19.89% proportionate share of Earlypay Limited and Centrepoint Alliance Limited (CAF)’s amortisation of acquired intangibles (1H25 $0.3m, 1H24 $nil after tax), redundancy and restructuring costs (1H25 $nil, 1H24 $nil, after tax), transaction costs (1H25 $0.1m, 1H24 $0.1m after tax) and the release of contingent consideration for the acquisition of FAM by CAF (1H25 $0.2m, 1H24 $nil after tax). 3. Increase of 3% on pcp, after allowing for the diminished contribution of COG’s TL Commercial lease business in run-off. COG’s performance for the 1HY 2025 2 +7% on pcp -1% on pcp -10% on pcp3% on adjusted pcp 3 For personal use only
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Strong growth from our Novated Leasing segment continues Our primary sectors in the market, infrastructure and construction,continued to hold up strongly in the 1HY 2025, despite the end of the instant tax write off incentive (June 2024), achieving Net Assets Financed of $4.2bn in the 1HY 2025 Continued execution of our acquisition strategy, wheretargets can be secured at the right price. Acquisitions since 1 July 2024 include: • An additional 5% equity interest in QPF , effective 1 July 20241 • An additional 20% equity interest in QPF Insurance Pty Limited (acquired through COG’s subsidiary QPF), effective 1 July 20241 • 100% of the salary packaging business known as Community Salary Packaging through COG’s subsidiary Paywise, effective 11 July 20241 • 100% of the mortgage finance broking business known as ‘Cap Coast Home Loans’ or ‘CCHL’ through COG’s subsidiary DLV, effective 31 July 20241 • An additional 7% equity interest in Heritage Finance through COG’s subsidiary Linx, effective 1 December 20241 Underlying performance3 was up 3% on PCP after allowing for the diminished contribution of COG’s TL Commercial lease business. NPATA to shareholders is $11.8m(1H24: $12.6m), a decrease of 6% on PCP . EPSA is 5.98cps (1H24: 6.61cps). To continue to ensure effectivecapital management and efficient funding of any potential acquisitions, we have lowered our current dividend payout ratio to circa 50% of NPATA. In addition, we have suspended the Dividend Reinvestment Plan for the interim dividend of 3.0 cents that has been announced today.We note the use of DRP is EPSA dilutive therefore future EPSA has been assisted by its suspension in relation to today's dividend. 1. Refer to pages 22, 30 and 31 for details on acquisitions completed. 2. Refer to page 32 for details on the Group’s unrestricted cash position. 3. Underlying net profit after tax to shareholders and before amortisation of acquired intangibles and write-off of intangibles. 1HY 2025 Financial Highlights COG’s performance for the 1HY 2025 (cont.) 3 For personal use only
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Dividend declared of 3.0 cps1 (1H24: 4.0 cps1) Payout ratio of 51.2% (1H24: 60.9%2) Dividend yield of 3.1% Dividend yield grossed up for franking benefit of 4.4% EPSA and dividends 2 Cents per share 3 4 1HY 2025 Financial Highlights 4 Nil 7.22 8.30 8.40 8.40 3.00 1.52 5 1. Dividends fully franked 2. Total dividends divided by NPATA 3. 1H25 total dividends divided by the COG closing share price at 31 December 2024 4. 1H25 total dividends (grossed up by 30%) divided by the COG closing share price at 31 December 2024 5. Earnings per share adjusted for the amortisation of acquired intangible and calculated using the Weighted Average Number of Outstanding Shares for each FY To continue to ensure effective capital management and efficient funding of any potential acquisitions, we have lowered our current dividend payout ratio to circa 50% of NPATA. In addition, we have suspended the Dividend Reinvestment Plan for the interim dividend of 3.0 cents that has been announced today. We note the use of DRP is EPSA dilutive therefore future EPSA has been assisted by its suspension in relation to today's dividend. For personal use only
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Broking and Aggregation Novated Leasing Asset Management & Lending Financial Advisory Linx beCarWise Westlawn Centrepoint Alliance (20%) Heritage Fleet Network Equity-One …. Sovereign Paywise Earlypay (21%) …. QPF COG Car Select …. …. Security Allied Finance Community Salary Packaging …. …. Access Capital …. …. …. Chevron …. …. …. Centrepoint …. …. …. COG Aggregation …. …. …. Platform …. …. …. UFS & NFC …. …. …. 11 5 3 1 Growth through more verticals Growth by going deeper into each vertical COG continues to build on its history of successful acquisitions and integration 5 Executing with Excellence For personal use only
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QLD 168 Broker firms 488 Brokers 888 Novated Lease Customers 2,558 Salary Packaging Customers NSW & ACT 257 Broker firms 555 Brokers 2,058 Novated Lease Customers 4,476 Salary Packaging Customers VIC 285 Broker firms 513 Brokers 1,394 Novated Lease Customers 7,639 Salary Packaging CustomersTAS 7 Broker firms 11 Brokers 63 Novated Lease Customers 937 Salary Packaging Customers WA 54 Broker firms 132 Brokers 4,036 Novated Lease Customers 27,790 Salary Packaging Customers SA 20 Broker firms 66 Brokers 194 Novated Lease Customers 248 Salary Packaging Customers NT 1 Broker firm 1 Broker 1,086 Novated Lease Customers 2,719 Salary Packaging Customers Executing with Excellence A growing national business Nationally: 792 Broker firms 1,766 Brokers 9,719 Novated Lease Customers 46,367 Salary Packaging Customers Delivering: $4.2 billion funded in 1H FY25 6 This table provides corrected Salary Packaging Customer numbers to those presented at 30 June 2024. Prior disclosures, were understated due to the data being derived from a range of system incorrectly. This process has been revised and simplified for 31 December 2024 and going forward. State # of Salary Packing Customers NSW & ACT 2,851 QLD 1,918 VIC 7,960 TAS 985 SA 164 WA 26,396 NT 2,683 Total 42,957 For personal use only
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1,344 1,524 1,631 2,041 2,365 2,242 3,284 3,404 4,321 4,203 1,403 1,604 1,720 2,198 2,154 2,917 3,405 4,274 4,532 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 $4.2bn net assets financed in 1HY 2025 Strong volumes continue, despite lapping the end of the instant tax asset write off in FY 24 2H 1H $ millions -3% vs PCP Executing with Excellence 7 For personal use only
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1H251 $m 1H241 $m Pcp Change Revenue 2 251.0 233.9 7% EBITDA 28.3 29.7 -5% Net interest income / (expense) 0.5 0.5 0% Depreciation (2.3) (1.7) 35% Amortisation (6.8) (7.1) -4% NPBT 19.7 21.4 -8% Tax (5.9) (6.2) -5% NPAT 13.8 15.2 -9% Minority interests (5.1) (5.8) -12% NPAT to shareholders 8.7 9.4 -7% EBITDA to shareholders 18.6 18.8 -1% NPATA to shareholders 3 11.8 12.6 -6% EPSA to shareholders (cps) 5.98 6.61 -10% Executing with Excellence Summary of Group financial results Revenue growth of $17.1m includes organic growth from the novated lease segment (+$11.9m), an increased contribution from asset management & lending activities (+$8.6m) and contribution from acquisitions (+$0.6m), partially offset by a lower contribution from the Westlawn insurance broking business of $2.0m and the run-off of the TL Commercial Finance book (-$1.9m). 1H25 EBITDA margin decreased to 11.3% (1H24: 12.7%) reflecting, (i) compressed lending margins on the lending products offered by Westlawn (primarily due to an increase in funding costs), (ii) investments in people and technology infrastructure, which is partially linked to an increase in business activity and (iii) a higher contribution from Earlypay and Centrepoint Alliance versus pcp (+$1.6m). Depreciation & amortisation includes $6.2m for amortisation of identified intangibles on acquisition of controlled entities (1H24: $6.6m) and $0.9m depreciation of right-of-use lease assets (1H24: $0.9m). EBITDA to shareholders comprises increases of $0.9m from Novated Leasing and $1.6m from Head Office & Other (including Centrepoint Alliance and Earlypay), offset by a decrease of $0.5m from Finance Broking & Aggregation and $2.2m from Asset Management & Lending. Effective tax rate of 30% (1H24: 29%) based on normalised NPBT. 1. Underlying basis attributable to shareholders. Excludes transaction costs (1H25 $nil, 1H24 $0.2m after tax) and COG’s 21.45% and 19.89% proportionate share of Earlypay Limited and Centrepoint Alliance Limited’s amortisation of acquired intangibles (1H25 $0.3m, 1H24 $nil after tax), redundancy and restructuring costs (1H25 $nil, 1H24 $nil, after tax), transaction costs (1H25 $0.1m, 1H24 $0.1m after tax) and the release of contingent consideration for the acquisition of FAM by CAF (1H25 $0.2m, 1H24 $nil after tax). 2. Underlying revenue excludes interest income (1H25 $2.0m, 1H24 $1.7m). Prior comparative information has been adjusted to conform with reclassifications between revenue and other profit and loss line items affecting the current period presentation. 3. NPATA is NPAT adjusted for amortisation of identified intangibles on acquisition of controlled entities (after tax). 8 For personal use only
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Executing with Excellence Underlying NPATA to Shareholders In $ millions 9 +3% +9.3% +8.7% +3.8% For personal use only
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Segment NPATA to shareholders (-) Less diminishing contribution from TL Commercial1 NPATA to shareholders before the contribution from TL Commercial NPATA to shareholders (-) Less diminishing contribution from TL Commercial1 NPATA to shareholders before the contribution from TL Commercial Finance Broking & Aggregation 5.0 - 5.0 5.7 - 5.7 Novated Leasing 4.7 - 4.7 4.1 - 4.1 Asset Management & Lending 2.8 (0.1) 2.7 4.4 (1.2) 3.2 Other (0.7) - (0.7) (1.6) - (1.6) Total 11.8 (0.1) 11.7 12.6 (1.2) 11.4 1H25 1H24 Executing with Excellence Underlying NPATA to Shareholders by segment In $ millions 1. Reflects the diminished contribution of COG’s TL Commercial lease business in run-off. 2. Increase of 3% on pcp, after allowing for the diminished contribution of COG’s TL Commercial lease business in run-off. -6% vs PCP 10 +3% vs adjusted PCP 2 For personal use only
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Segment performance 11 For personal use only
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Executing with Excellence NPATA by segment AML refers to 'Asset Management & Lending” segment. This analysis excludes the Other segment. 13.4 12.1 12.5 14.2 $ millions 13.9 Novated Leasing: Strong growth has driven COG's result in recent times. TL Commercial: This operating lease business, which stopped writing new business in FY 20 has generated a diminished contribution. Positively this process is now largely complete. 12 For personal use only
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1 Derived from information contained in the Commercial & Asset Finance Brokers Association of Australia (CAFBA) Aggregator Benchmark Report 2020 and the Australian Finance Industry Association (AFIA) Annual Review FY20 and updated for actual FY24 CAPEX growth in Australia as per the Australian Bureau of Statistics (ABS). Australia’s largest asset finance broker and aggregator 21% Estimated market share1 Finance Broking & Aggregation 13 For personal use only
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1H25 $m 1H24 $m Pcp Change Revenue to shareholders 107.6 105.5 2% EBITDA to shareholders 8.7 9.2 -5% (-) Rent expense to shareholders 3 (0.6) (0.4) 50% (-) Capital expenditure to shareholders (1.3) (1.0) 30% Cash EBITDA to shareholders 6.8 7.8 -13% (-) Tax expense to shareholders (2.3) (2.1) 10% Cash generation to shareholders 4.5 5.7 -21% 1H251 $m 1H241 $m Pcp Change Revenue 2 136.6 136.4 0% EBITDA 13.2 14.5 -9% Net Interest (0.7) (0.4) 75% Depreciation (1.3) (1.0) 30% Amortisation (exc acquired intangibles) (0.3) (0.4) -25% NPBT (before amortisation of acquired intangibles) 10.9 12.7 -14% Amortisation of acquired intangibles (2.7) (2.9) -7% NPBT 8.2 9.8 -16% EBITDA to shareholders 8.7 9.2 -5% Finance Broking & Aggregation Strong activity despite the end of the instant tax asset write off incentive in FY 24 Revenue growth of $0.2m includes the contribution from acquisitions of $0.3m. EBITDA margin contracted to 9.7% (1H24: 10.6%) as a result of investment in people across the broking and aggregation entities, paving the way for future growth. Depreciation and amortisation includes $2.7m amortisation of identified intangibles on acquisition of controlled entities (1H24: $2.9m) and $0.7m depreciation of right-of-use lease assets (1H24: $0.6m). EBITDA to shareholders includes $0.4m from acquisitions and increased equity holdings, net of disposals (1H24: $0.9m). Cash generation to shareholders 1. Underlying basis before tax – excluding transaction costs (1H25 $nil, 1H24 $0.2m). 2. Underlying revenue excludes interest income (1H25 $0.2m, 1H24 $0.2m). 3. Recognised as ‘depreciation’ and ‘interest expense’ under AASB 16 Leases, both below the EBITDA line. 14 For personal use only
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Revenue growth of $12.2m includes organic growth (+$11.9m) which continues to be further accelerated by the FBT incentive for electric vehicles and contribution from acquisitions (+$0.3m). EBITDA margin decreased to 12.4% (1H24: 12.8%) as a result of investment in people and systems, which is linked to an increase in business activity and paves the way for future growth. Depreciation and amortisation includes $1.3m amortisation of identified intangibles on acquisition of controlled entities (1H24: $1.4m). EBITDA to shareholders includes $0.1m from acquisitions and increased equity holdings (1H24: $0.9m). Cash generation to shareholders 1H25 $m 1H24 $m Pcp Change Revenue to shareholders 58.0 49.8 16% EBITDA to shareholders 7.2 6.3 14% (-) Rent expense to shareholders 3 (0.2) - -% (-) Capital expenditure to shareholders (0.6) (0.3) 100% Cash EBITDA to shareholders 6.4 6.0 7% (-) Tax expense to shareholders (1.9) (1.4) 36% Cash generation to shareholders 4.5 4.6 -2% Novated Leasing Novated Leasing and Salary Packaging continue to have strong momentum 1. Underlying basis before tax. 2. Underlying revenue excludes interest income (1H25 $0.7m, 1HY24 $0.6m). Prior comparative information has been adjusted to conform with reclassifications between revenue and other profit and loss line items affecting the current period presentation. 3. Recognised as ‘depreciation’ and ‘interest expense’ under AASB 16 Leases, both below the EBITDA line. 15 1H251 $m 1H241 $m Pcp Change Revenue 2 77.7 65.5 19% EBITDA 9.6 8.4 14% Net Interest 0.2 0.1 100% Depreciation (0.6) (0.3) 100% Amortisation (exc acquired intangibles) (0.1) (0.1) 0% NPBT (before amortisation of acquired intangibles) 9.1 8.1 12% Amortisation of acquired intangibles (1.3) (1.4) -7% NPBT 7.8 6.7 16% EBITDA to shareholders 7.2 6.3 14% For personal use only
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Asset Management & Lending Assets under management continue to grow Revenue growth of $4.7m reflects an increased contribution from asset management & lending activities of $8.6m (including organic growth contribution from Equity-One of $1.2m). This growth was partially offset by a lower contribution from the Westlawn insurance broking business of $2.0m and a lower contribution from TL Commercial Finance of $1.9mdue to the book in run-off. EBITDA margin contracted to 17.7% (1H24: 29.4%) largely due to compressed lending margins. In addition, continued investments in technology infrastructure has occurred, paving the way for future growth. Depreciation and amortisation includes $2.3m amortisation of identified intangibles on acquisitions (1H24: $2.3m). EBITDA to shareholders includes $0.1m contribution from TL Commercial Finance (1H24: $1.7m) and $0.2m contribution from increased equity holdings acquired (1H24: $nil). Cash generation to shareholders 1. Asset Management & Lending includes 75% of Westlawn (1H24: 75%) and 100% of TL Commercial (1H24: 100%). 2. Underlying basis before tax. 3. Underlying revenue excludes interest income (1H25 $1.0m,1H24 $0.7m). 4. Recognised as ‘depreciation’ and ‘interest expense’ under AASB 16 Leases, both below the EBITDA line. 16 1H25 $m 1H24 $m Pcp Change Revenue to shareholders 24.7 20.5 20% EBITDA to shareholders 3.7 5.9 -37% (-) Rent expense to shareholders 4 (0.1) (0.1) 0% (-) Capital expenditure to shareholders (1.3) (0.1) 1200% Cash EBITDA to shareholders 2.3 5.7 -60% (-) Tax expense to shareholders (0.7) (1.3) -46% Cash generation to shareholders 1.6 4.4 -64% 1H252 $m 1H242 $m Pcp Change Revenue 3 36.7 32.0 15% EBITDA 6.5 9.4 -31% Net Interest 0.9 0.7 29% Depreciation (0.3) (0.3) 0% Amortisation (exc acquired intangibles) (0.1) - -% NPBT (before amortisation of acquired intangibles) 7.0 9.8 -29% Amortisation of acquired intangibles (2.3) (2.3) 0% NPBT 4.7 7.5 -37% EBITDA to shareholders 3.7 5.9 -37% 1 For personal use only
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Assets under management 31 December 2024 $m 31 December 2023 $m Equity-One Contributory Mortgage Scheme 579.2 539.8 Westlawn Unsecured Notes 206.5 207.3 Westlawn Managed Assets 181.3 107.7 Total 967.0 854.8 Asset management Equity-One Mortgage Fund Limited has provided a sizable contribution in the half (1H25: $2.5m, 1H24: $2.5m EBITDA to shareholders). Assets under management & Lending of $967.0m are up 13% on this time last year. Westlawn positioned for growth The COG broker network continued to consolidate as the main distribution channel of Westlawn’s loan products. TL Commercial The run-off book continues to perform strongly and remains an active focus to ensure a maximised return is achieved. EBITDA to shareholders $ millions 8.9 5.76.1 Asset Management & Lending 17 5.9 3.7 For personal use only
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A Lending book concentrated on asset backed contracts • Established unsecured notes program operated by Westlawn Finance Limited continues to provide a reliable source of funding • Westlawn Managed Investment Scheme continues to operate, with a current balance of $48.8m (1H24: $33.6m). Lending book • New lease and loan written in the 1H25 totaled $62.2m (1H24: $71.2m). • TL Commercial is currently in run-off with the total lease and loan receivables of $0.9m as at 31 December 2024 representing the present value of lease and loan instalments and related unguaranteed residual values expected to be received over the next one to two years. • The lending book continues to perform strongly, ECL provisions have increased slightly from1.4% in June 2024 to 1.5% in December 2024. Funding 18 Asset Management & Lending For personal use only
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Other Corporate costs are tightly managed & investments in associates are contributing This Segment includes COG head office activities and our investments in Earlypay Limited (ASX: EPY) and Centrepoint Alliance Limited (ASX: CAF). EBITDA to shareholders improved by +$1.6m and reflects: +$0.2m increase in share of results from EPY; and +$1.4m contribution from share of results from CAF (1HY24: $nil). COG corporate costs continue to be tightly managed with choices made as to where to invest corporate effort and energy to ensure efficiency. 1. Underlying basis before tax – excluding transaction costs (1H25 $nil, 1H24 $0.1m) and COG’s 21.45% and 19.89% proportionate share of Earlypay Limited and Centrepoint Alliance Limited’s amortisation of acquired intangibles (1H25 $0.5m, 1H24 $nil), redundancy and restructuring costs (1H25 $nil, 1H24 $nil), transaction costs (1H25 $0.1m, 1H24 $0.1m) and the release of contingent consideration for the acquisition of FAM by CAF (1H25 $0.3m, 1H24 $nil). 2. Underlying revenue excludes interest income (1H25 $0.2m, 1H24 $0.2m). 19 1H251 $m 1H241 $m Pcp Change Revenue 2 - - -% EBITDA (1.0) (2.6) -62% Net Interest 0.1 0.1 0% Depreciation (0.1) (0.1) 0% Amortisation (exc acquired intangibles) - - -% Net (Loss)/PBT (before amortisation of acquired intangibles) (1.0) (2.6) -62% Amortisation of acquired intangibles - - -% Net (Loss)/PBT (1.0) (2.6) -62% (Loss)/EBITDA to shareholders (1.0) (2.6) -62% For personal use only
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Board of Directors Patrick Tuttle Chairman Peter Rollason Non-Executive Director Stephen White Non-Executive Director Cameron McCullagh Executive Director Management Team Richard Balzer Chief Financial Officer Philip McLeod General Counsel Andrew Bennett Chief Executive Officer Mark Crain Executive Director About COG 20 For personal use only
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Capital management Efficient capital management and strong cash position Dividend (continued) For the half-year ended 31 December 2024, the Board declared a fully franked interim dividend of 3.0 cents per fully paid ordinary share (1H24: 4.0 cents per fully paid ordinary share). The total dividend of $6.1m will be paid on 11 April 2025 out of the Company’s profits reserve at 31 December 2024 to all shareholders registered on the record date of 11 March 2025 and will be 100% franked. The ex-dividend date for entitlement will be 10 March 2025. The Company’s DRP has been suspended in relation to the interim dividend. Capex Capex for 1H25 was $4.2m (1H24: $2.4m) and mainly relates to fit out and leasehold improvements. Also includes dry-hire assets and the development and implementation of IT systems. Acquisition finance facility On February 2022, COG has established a $31 million acquisition finance facility with a major Australian Bank for a term of 5 years. The facility has a revolving feature with drawdowns amortising across the term. Security and covenants are standard for a facility of this kind including a first ranking general security interest over the assets and undertakings of COG. As at 31 December 2024, $23.9m has been utilised in the acquisitions of further ownership interests in Linx Group and QPF Group, the acquisitions of National Finance Choice (“NFC”) and United Financial Services (“UFS”) as well as partial funding of the Chevron Equipment Finance, Paywise, Centrepoint Alliance, Community Salary Packaging and CCHL aquisitions. At 31 December 2024, $7.1m remains available for future use. Since 31 December 2024, COG has had no further drawings. Cash and cash equivalents The Group has generated significant cash over the period and the proportionate share of unrestricted cash and term deposits attributable to members at 31 December 2024 was $62.8m (see Appendices). Dividend The Company’s dividend policy permits a payout ratio of up to 70% of NPATA to members. The Company has a Dividend Reinvestment Plan (DRP). The DRP rules are disclosed on the Company’s website www.cogfs.com.au. Under the DRP, holders of ordinary shares can elect to have all or part of their dividend entitlements satisfied by the issue of new ordinary shares rather than being paid in cash. Shares issued under the DRP may be subject to a discount of up to 5% of the market price, or a higher percentage determined by the Board. For the year ended 30 June 2024, the Board declared a final dividend of 4.4 cents per fully paid ordinary share (FY23: 4.7 cents per fully paid ordinary share). The aggregate amount of the dividend was paid on 2 October 2024 out of the Company’s profits reserve at 30 June 2024 to all shareholders registered on the record date of 3 September 2024 and was 100% franked. COG issued 2,695,588 fully paid ordinary shares on 2 October 2024 under its DRP in respect of FY24 final dividend. 21 For personal use only
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Capital raising • On 25 July 2024, the Company issued 1,555,719 fully paid ordinary shares totalling $1.8m as part of the consideration for the acquisition of an additional 5% equity interest in QPF Holdings Pty Ltd (“QPF”), taking COG’s controlling interest in QPF from 58.74% to 63.74%. • On 26 September 2024 the Company issued 43,499 fully paid ordinary shares totalling $0.041m as part of the Group’s FY22 and FY23 Long-term incentive (LTI) plan for the CEO. • On 2 October 2024 the Company issued 2,695,588 fully paid ordinary shares totalling $2.6m as part of the COG’s Dividend Reinvestment Plan (DRP). • On 29 January 2025 the Company issued 2,684,209 fully paid ordinary shares totalling $2.6m in respect of the Loan-backed Employee Share Scheme for FY25. Investments COG made the following investments during the period, in line with its acquisition growth strategy: • effective 11 July 2024, Paywise Pty Ltd (Paywise) (a wholly-owned subsidiary of Fleet Network) acquired a 100% controlling interest in the salary packaging business known as Community Salary Packaging (CSP) for a total consideration of $2.1m ($1.9m settled in cash and $0.1m deferred). • effective 31 July 2024, DLV (Qld) Pty Limited (a 50% owned subsidiary of QPF Holdings Pty Limited) acquired a 100% controlling interest in the mortgage finance broking business known as ‘Cap Coast Home Loans’ or ‘CCHL’ for a total consideration of $1.0m ($0.9m settled in cash and $0.1m deferred). During the period ended 31 December 2024, the Group also acquired (or disposed of) additional interests from minority shareholders in the following entities, which were already controlled by the Group: • effective 1 July 2024, COG acquired an additional 5% equity interest in QPF Holdings Pty Ltd (“QPF”) for a total consideration of $3.7m, taking COG’s controlling interest in QPF from 58.74% to 63.74%. Half of the purchase consideration was settled in cash (and funded via drawdown from the COG corporate debt facility). The remaining 50% was settled via allotment and issuance of 1,555,719 fully paid ordinary COG shares on 25 July 2024, as approved by the shareholders on the Extraordinary General Meeting held on 22 July 2024. • effective 1 July 2024, QPF Holdings Pty Ltd acquired an additional 20% equity interest in QPF Insurance Pty Limited for a cash consideration of $0.9m, taking QPF’s controlling interest in QPF Insurance from 80.00% to 100%. • effective 1 November 2024, Linx Group Holdings (Linx) through its wholly owned subsidiaries Linx Heritage Corporate and Linx Heritage Finance acquired an additional 9.17% interest in Heritage Corporate Partnership and Heritage Finance Partnership from minority partners, for total consideration of $0.7m. As a result of this transaction, Linx’s indirect ownership in Heritage Corporate Partnership and Heritage Finance Partnership increased from 70.83% to 80.00%. • effective 1 December 2024, Linx sold a 2.5% indirect interest in Heritage Corporate Partnership and Heritage Finance Partnership for a total discounted consideration of $0.1m to a key employee of Heritage. The differential between fair value and the discounted value offered to the key employee of $0.1m was recognised as an employee benefit expense for the period. As a consequence of this transaction, Linx’s indirect ownership in Heritage Corporate Partnership and Heritage Finance Partnership decreased from 80.00% to 77.50%. 22 Capital management For personal use only
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Looking Forward • The Group’s Novated Leasing segment continues to deliver outstanding results. We expect significant ongoing organic growth as we continue to capture opportunities in this space and drive uptake with current partner employees. • The Group’s strong balance sheet with unrestricted cash of $83.7m will enable the Company to achieve further earnings growth both organically and through acquisition. • COG will continue to remain active in the identification of strategic acquisitions (at the right price) to add to the underlying organic growth trajectory; • COG is continuing to invest in key operational areas of its business particularly in functional improvements within the broker aggregation space and on cyber security, data protection and our operating system footprint; • We are focused on further building out our own retail fixed income product. 23 Executing with Excellence For personal use only
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Disclaimer COG Financial servicesLimited ('COG’) has not considered the financial position or needs of the recipient in providing this presentation ('Presentation'). Persons needing advice should consult their stockbroker, bank manager, solicitor, attorney, accountant or other independent financial or legaladviser. This Presentation includes certain 'forward-looking statements' which are not historical facts but rather are based on COG’s current expectations, estimates and projections about the industry in which COG operates, and beliefs and assumptions regarding COG’s futureperformance. Words such as ‘anticipates’, 'expects', 'intends', 'plans', 'believes', 'seeks', 'estimates' and similar expressions are intended to identify forward-looking statements. These statements are not guarantees, representations or warranties of future performance and are subject to known and unknown risks, uncertainties and other factors (some of which are beyond the control of COG), are difficult to predict, and could cause actual results to differ materially from those expressed or forecasted in the forward-lookingstatements. COG cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of COG only at the date of this Presentation. The forward-looking statements made in this Presentation relate only to events and circumstances as of the date on which the statements are made. COG will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this Presentation except as required by law or by any appropriate regulatory authority. Investors should also note that COG’s past performance, including past share price performance, cannot be relied upon as an indicator of (and provides no guidance as to) COG’s future performance including COG’s future financial position or share price performance. No party other than COG has authorised or caused the issue of this Presentation, or takes any responsibility for, or makes, any statements, representations or undertakings in this Presentation. This Presentation should be read in conjunction with COG Appendix 4D and Half Year Financial Report for the period ended 31 December 2024, and COG’s 30 June 2024 Annual Financial Report, and all other ASX announcements by COG. 24 For personal use only
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Appendices 25 For personal use only
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Appendices Statutory income statement Adjustment related to Associates reflects COG’s 21.45% and 19.89% proportionate share of Earlypay Limited and Centrepoint Alliance Limited’s amortisation of acquired intangibles (1H25 $0.5m, 1H24 $nil pre-tax), redundancy and restructuring costs (1H25 $nil, 1H24 $nil pre-tax), transaction costs (1H25 $0.1m, 1H24 $0.1m pre-tax) and the release of contingent consideration for the acquisition of FAM by CAF (1H25 $0.3m, 1H24 $nil pre-tax). Depreciation & amortisation includes $6.2m for amortisation of identified intangibles on acquisition of controlled entities (1H24: $6.6m) and $0.9m depreciation of right-of-use lease assets (1H24: $0.9m). 26 1. Statutory revenue includes interest income (1H25 $2.0m, 1H24 $1.7m). 1H25 $m 1H24 $m Pcp Change Revenue 1 253.0 235.6 7% EBITDA from core operations 28.3 29.7 -5% Acquisition-related expenses (0.1) (0.3) -67% Adjustment related to Associates (0.3) (0.1) 200% Statutory EBITDA from core operations 27.9 29.3 -5% Net interest income 0.5 0.5 0% Depreciation & amortisation (9.1) (8.8) 3% NPBT 19.3 21.0 -8% Tax (5.7) (6.1) -7% NPAT 13.6 14.9 -9% Profit after tax attributable to: Non-controlling interests 5.1 5.8 -12% Members of COG 8.5 9.1 -7% For personal use only
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Appendices Reconciliation between statutory NPAT and underlying NPATA 1. Non-controlling interests 27 1H25 $m 1H24 $m Variance $m 1H25 $m 1H24 $m Variance $m NPAT 13.6 14.9 (1.3) 8.5 9.1 (0.6) Adjustments (after tax): Adjustment related to Associates 0.2 0.1 0.1 0.2 0.1 0.1 Acquisition-related expenses - 0.2 (0.2) - 0.2 (0.2) Underlying NPAT 13.8 15.2 (1.4) 8.7 9.4 (0.7) Amortisation of intangibles from acquisitions after tax 4.4 4.6 (0.2) 3.1 3.2 (0.1) NPATA 18.2 19.8 (1.6) 11.8 12.6 (0.8) Members and NCI 1 Members For personal use only
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As at $m 31 Dec 2024 30 Jun 20242 Cash and cash equivalents 135.2 125.7 Trade and other receivables 15.3 22.1 Contract assets 3.2 3.0 Financial assets - lease receivables 5.3 5.5 Financial assets - loans 83.6 78.3 Other assets 4.4 4.1 Total current assets1 247.0 238.7 Contract assets 9.4 8.6 Financial assets - lease receivables 7.7 9.7 Financial assets - loans 194.0 181.0 Other financial assets 27.8 29.4 Financial assets at fair value through OCI 3 - 0.2 Equity accounted associates 23.7 22.7 Property, plant and equipment 12.4 11.1 Intangible assets 173.9 177.1 Right-of-use lease assets 11.7 7.5 Total non-current assets 460.6 447.3 Total assets 707.6 686.0 Trade and other payables 27.7 38.7 Customer salary packaging liability 43.4 26.3 Interest bearing liabilities 232.7 221.9 Other liabilities 9.8 13.0 Lease liabilities 5.9 4.3 Derivative financial instruments 0.1 - Total current liabilities 1 319.6 304.2 Trade and other payables 16.2 15.8 Interest bearing liabilities 153.2 146.9 Deferred tax liabilities 9.6 10.2 Lease liabilities 6.3 3.7 Derivative financial instruments 0.4 - Other liablitiies 1.7 1.6 Total non-current liabilities 187.4 178.2 Total liabilities 507.0 482.4 Net assets 200.6 203.6 Cash and cash equivalents increased by $9.5m mainly due to increased salary packaging client funds during the 1H25. Financial assets – lease and loan receivables relates to lease, chattel mortgage and other lending product receivables in the Asset Management & Lending segment. The overall increase of $16.1m is largely due to originations of $62.2m in Westlawn (mostly relating to the chattel mortgage product), partially offset by repayments collected coupled with the run-off of the TL Commercial Finance's lending portfolio. Equity accounted associates mainly relates to the investments in Earlypay and Centrepoint Alliance (CAF). The increase of $1.0m is largely related to the recognition of 1H25 share of profits of $1.8m, partially offset by dividend received during the period of $0.8m. Intangible assets mainly relates to identified intangibles and goodwill on acquisition of controlled entities. The movement in the period largely reflects $2.2m of intangibles recognised on the acquisitions of CSP and CCHL, partially offset by the amortisation of those intangibles (aside from goodwill). Interest bearing liabilities represents borrowings funding the lease / loan book as well as corporate debt. The movement in the period includes corporate facilities drawdowns of $3.3m obtained to fund acquisitions. 1. As at 31 December 2024, the Group’s current assets of $247.0m are $72.6m lower than current liabilities of $319.6m due to Westlawn, which funds its operations through the issue of short-term unsecured notes. Whilst the carrying value of those notes has been presented in the balance sheet in accordance with their maturity profile, historically there has been a consistently high reinvestment rate by investors, who choose not to withdraw their funds at the maturity of the note term and roll their funds into a new unsecured note. On this basis, the mismatch between current assets and current liabilities is not indicative of any form of liquidity issue. 2. Certain prior comparative information have been reclassified to conform to the current year presentations 3. Other comprehensive income Appendices Consolidated statement of financial position 28 For personal use only
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1H25 $m 1H24 $m Receipts from customers 301.8 272.3 Payments to suppliers and employees (250.8) (233.9) Dividends received 0.8 0.1 Finance costs paid (9.7) (5.2) Income taxes paid (10.0) (8.3) Net cash inflow from operating activities 32.1 25.0 Net cash (outflow) on acquisitions, net of cash acquired (2.8) (4.7) Net cash (outflow) on investment in associate - (13.1) Payments for equipment - finance leases - (4.8) Repayments of equipment - finance leases 2.3 9.1 Loans advanced (62.2) (66.4) Repayments of loans 42.6 52.7 Payments for property, plant and equipment (2.8) (2.2) Proceeds from sale of property, plant and equipment 0.4 1.1 Payments for intangible assets (1.4) (0.2) Proceeds from sale of loan receivables - 23.4 Payments for investments (25.0) (20.7) Proceeds from sale of investments 21.6 8.9 Net cash (outflow) from investing activities (27.3) (16.9) Proceeds from issue of shares 4.5 2.2 Proceeds from interest-bearing liabilities 37.7 37.5 Repayments of interest-bearing liabilities (21.4) (19.9) Repayments of lease liabilities (1.2) (0.9) Dividends paid (8.7) (9.0) Dividends paid by subsidiaries to non-controlling interests (7.0) (8.3) Non-controlling interests acquired - (3.9) Non-controlling interest acquisition contribution 0.8 - Net cash inflow / (outflow) from financing activities 4.7 (2.3) Net increase in cash and cash equivalents 9.5 5.8 Cash and cash equivalents, beginning of the financial year 125.7 101.8 Cash and cash equivalents, end of the period 1 135.2 107.6 Net cash inflow from operating activities includes $15.4m (1H24: $12.4m) relating to the lease and loan products offered through the Asset Management & Lending segment (including recovery of terminated leases) under ‘Receipts from customers’. Net cash (outflow) from investing activities includes the acquisition of salary packaging business known as Community Salary Packaging CSP) for a total consideration of $2.1m and mortgage finance broking business CCHL (Qld) Pty Ltd (known as ‘Cap Coast Home Loans’ or ‘CCHL ’) for a total consideration of $1.0m (1H24: includes the acquisition of the car and lifestyle asset aggregation groups NFC and UFS (through COG’s subsidiary COG Aggregation) for a total consideration of $4.7m as well as the acquisition of a 20% interest in Centrepoint Alliance Limited (ASX: CAF) for a total consideration of $13.1m). Net cash (outflow) from financing activities includes $2.6m from shares issued under the DRP (1H24: includes $1.9m from shares issued under the DRP). 1. Cash at the end of the period includes restricted cash of $51.5m (31 Dec 2023: $33.1m). Restricted cash represents funds held by the Group on behalf of its novated lease business customers and insurance broking trust accounts (representing the unpaid insurance premiums due to insurers and refunds due to customers) and is not available for general use. Appendices Consolidated statement of cash flows 29 For personal use only
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Appendices Acquisition history 30 Date Company Activity Acquirer Interest acquired Price Consideration Dec-15 Platform Consolidated Group (PCG) Aggregation platform and finance broker COG 60.0% $22.9m 76% cash / 24% equity Oct-16 Consolidated Finance Group Independent equipment finance aggregator COG 80.0% $14.7m 60% cash / 40% equity Oct-16 Linx Group Holdings (Linx) Finance broker (VIC, NSW) COG 50.0% $13.1m 60% cash / 40% equity Oct-16 QPF Holdings (QPF) Finance broker (QLD, WA) COG 50.0% $21.3m 60% cash / 40% equity Nov-16 Fleet Avenue Motor vehicle finance broker PCG 50.0% $0.2m 100% cash Mar-17 Fleet Network Finance broker (WA) PCG 80.0% $6.1m 74% cash / 26% equity Jul-17 DLV (Qld) Finance broker (QLD) QPF 50.0% $1.6m 50% cash / 50% shares Jan-18 BusinessWorks IT support services COG 100.0% $1.3m 100% cash Feb-18 Vehicle and Equipment Finance Finance broker (VIC, NSW) PCG 50.0% $3.0m 100% cash May-18Simply Finance Finance broker PCG 25.0% $0.8m 100% cash Jul-18 Consolidated Finance Group Acquisition of minority interests COG 20.0% $4.2m 100% cash Aug-18 Geelong Financial Group Finance broker (VIC) PCG 50.0% $0.3m 100% cash Sep-18 Centrepoint Finance Finance broker (VIC) COG 100.0% $8.3m 90% cash / 10% shares Oct-18 Westlawn Finance SME finance provider, insurance broking and funds management COG 31.8% $14.3m 70% cash / 30% shares Nov-18 Heritage Group Finance broker (VIC) Linx 50.0% $5.0m 100% cash Feb-19 Sovereign Tasmania Finance broker (TAS) Linx 50.0% $2.2m 75% cash / 25% shares Jul-19 QPF Acquisition of minority interests COG 5.6% $1.7m 100% cash Oct-19 PCG Acquisition of minority interests COG 3.6% $1.1m 50% cash / 50% equity Nov-19 Fleet Network Acquisition of minority interests PCG 15.8% $1.0m 100% cash Jan-20 Earlypay Limited Debtor finance provider COG 17.4% $22.0m 100% cash Jul-20 Westlawn Finance SME finance provider, insurance broking and funds management COG 19.0% $7.5m 100% cash Jul-20 PCG Acquisition of minority interests COG 0.2% $- 100% cash Aug-20 Heritage Group Finance broker (Vic) Linx 13.3% $0.6m 100% cash Oct-20 QPF Acquisition of minority interests COG 1.5% $2.4m 17% cash / 83% equity Nov-20 Access Capital Finance broker (SA, NT) QPF 80.0% $9.2m 11% cash / 39% equity / 50% debt Dec-20 Sovereign Tasmania Acquisition of minority interests Linx 4.2% $0.1m 100% cash Jun-21 Linx Acquisition of minority interests COG 4.9% $2.1m 75% cash / 25% equity For personal use only
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Date Company Activity Acquirer Interest acquired Price Consideration Jul-21 Centrepoint Yeppoon Finance broker (QLD) DLV 100.0% $1.0m 100% cash Nov-21 Westlawn Finance SME finance provider, insurance broking and funds management COG 24% $9.3m 17% cash / 83% equity Nov-21 PCG Acquisition of minority interests COG 30.1% $14.7m 17% cash / 83% equity Jan-22 PCG Acquisition of minority interests COG 0.1% $- 100% cash Mar-22 Equity-One Mortgage Fund Funds management and contributory mortgage scheme Westlawn 70% $24.8m 100% cash Apr-22 Linx Acquisition of minority interests COG 4.9% $3.0m 100% cash May-22Earlypay Debtor finance provider COG 3.2% $5.0m 100% cash Jul-22 Chevron Equipment Finance Finance broker (QLD) QPF 70% $7.1m 40% equity / 60% debt Sep-22 Australian Car Packaging Novated lease Fleet Network 100% $0.2m 100% cash Sep-22 Fleet Avenue Motor vehicle finance broker PCG 50% $0.6m 100% cash Jan-23 Sovereign Tasmania Acquisition of minority interests Linx 4.2% $0.1m 100% cash Jan-23 Chevron Insurance Consultants Insurance broker (QLD) QPFI / Chevron 50% / 50% $0.2m / $0.2m 100% cash Apr-23 Paywise Novated lease Fleet Network 100% $25.7m 50% equity / 50% debt Jul-23 NFC & UFS (McMillan Shakespeare) Independent equipment finance aggregator COG Agg. 100% $4.7m 100% debt Jul-23 QPF Acquisition of minority interests COG 1.5% $0.9m 100% debt Oct-23 Becarwise Victoria Acquisition of minority interests Becarwise 20% $3.7m 100% equity Nov-23 Centrepoint Alliance Provider of lending services supporting mortgage brokers and financial advisers COG 20.0% $13.1m 86% equity / 14% debt Jan-24 Chevron Money Finance broker (QLD) Chevron 100% $0.075m 100% cash Apr-24 Heritage Group Acquisition of minority interests Linx 12.5% $1.3m 23% cash / 77% debt May-24Westlawn Insurance Brokers Acquisition of minority interests Westlawn 20% $3.4m 100% cash Jul-24 QPF Acquisition of minority interests COG1 5.0% $3.7m 50% equity / 50% debt Jul-24 Community Salary Packaging Novated lease Paywise 100% $2.1m 29% equity / 71% debt Jul-24 CCHL2 Finance broker (QLD) DLV 100.0% $1.0m 50% equity / 50% debt Jul-24 QPF Insurance Acquisition of minority interests QPF3 20% $0.9m 100% cash Nov-24 Heritage Group Acquisition of minority interests Linx4 9.2% $0.7m 100% cash Appendices Acquisition history (cont.) 31 1. From 1 July 2024, COG owns 63.74% of QPF Group 2. From 31 July 2024, DLV owns 100% of CCHL (Qld) Pty Ltd (known as ‘Cap Coast Home Loans’ or ‘CCHL’). 3. From 1 July 2024, QPF owns 100% of QPF Insurance Pty Limited. 4. On 1 November 2024, Linx’s indirect ownership in Heritage Group increased from 70.83% to 80.00%. Subsequently, on 1 December 2024, Linx sold a 2.5% indirect interest in Heritage Group, resulting in a decrease of Linx’s indirect ownership from 80.00% to 77.50%. For personal use only
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Appendices Proportionate share of unrestricted cash attributable to members 1. Cash and cash equivalents include restricted cash of $51.5m (30 June 2024: $34.9m) which are funds held by the Group on behalf of its novated leasing business customers, and insurance broking trust accounts (representing the unpaid insurance premiums due to insurers and refunds due to customers) and are not available for general use. 2. Based on COG’s ownership of the relevant entity. $ millions 32 Total Cash Restricted cash1 Unrestricted cash Proportionate share of unrestricted cash attributable to Members2 Platform Group 53.7 (45.1) 8.6 6.6 QPF Group 3.7 - 3.7 1.9 Linx Group 1.9 - 1.9 0.9 Westlawn Group 50.5 (6.4) 44.1 28.0 COG Aggregation Group 3.1 - 3.1 3.1 COG Parent 21.2 - 21.2 21.2 COG TLC Group 1.1 - 1.1 1.1 Total Cash 135.2 (51.5) 83.7 62.8 For personal use only