Thank you for standing by, and welcome to the E&P Financial Group FY 22 results webcast. All participants are in listen-only mode. There will be a presentation followed by a question-and-answer session. If you'd like to ask a question, you'll need to press the star key followed by the number one on your telephone keypad. I'll now like to hand the conference over to Mr. Peter Anderson, Chief Executive Officer. Please go ahead. Good morning, everyone, and welcome to the E&P Financial Group results briefing for the year ended 30 June 2022. I'm Peter Anderson, Chief Executive Officer, and with me is Paul Ryan, our Chief Financial Officer. This morning I'll be providing an update on the performance of the business over the year. Paul will then run through the group's financials before I conclude with an update on the outlook for the group. Before we begin the presentation, I should note that as part of our reporting pack lodged with the ASX this morning, we have released the company's appendix for a preliminary financial report. We intend to release our annual report shortly following the completion of the group's audit in the coming week. We are pleased to report that over the 12 months to 30 June 2022, the group delivered a stable underlying result driven by growth from our core businesses, despite challenging market conditions and significant structural changes in E&P Wealth and E&P Funds. The group generated net revenue of AUD 193.3 million, which was up 3% compared to financial year 2021. This result was achieved on the back of a record year from E&P Capital and the ongoing strength of the core Evans and Partners wealth business. The full year result was also supported by non-recurring contribution from E&P Funds and gains from principal positions in our joint venture private equity funds. Underlying EBITDA for the year was AUD 28.9 million, which represents a 3% increase on the prior corresponding period. Underlying earnings per share for the year was AUD 0.045, which was up 41% on the prior corresponding period. Finally, the underlying NPATA of AUD 10.3 million was up 42% on FY 2021. Pleased to report that the board has declared a final dividend of AUD 0.027 per share in light of the improved earnings and considerable progress made in resolving the remaining legacy issues. We're pleased to report that the strong performance across each of our core businesses were led by successful execution of the growth initiatives core to our reset strategy. E&P Capital had a record year driven by the strong performance of our corporate advisory business and consistent institutional brokerage. In E&P Wealth, the Evans and Partners high net worth business delivered strong revenue growth despite impacts from negative equity market movements in the second half. In E&P Funds, we continued to expand and diversify the distribution of our core equities funds and progressed further liquidity and value initiatives in our real asset funds. The group recorded a statutory profit of AUD 6.3 million, driven by growth in operating earnings, which was partially offset by higher expenses relating to extraordinary matters that are not part of our core business. These items primarily comprise the costs incurred in addressing ongoing legal and regulatory proceedings and the impact from the voluntary administration of Dixon Advisory and Superannuation Services. During the year, this included a loss recognized on deconsolidation of DASS and onerous contracts arising from clients transitioning to Evans and Partners, which Paul and I will speak to in greater detail later on. We also excluded the gain on sale of the group's interests in the manager of the FSREC Property Fund and the net decrease in the value of our non-core investments. We adjust for these items as they are not reflective of our continuing core business, which experienced positive momentum over the period. As I mentioned, the board has declared a final dividend of AUD 0.027 per share for the year. This represents 80% of NPATA, in line with the board's commitment to support a full year payout range of 75%-85% of NPATA. From an operational perspective, much was achieved over the year. In E&P Wealth, we consolidated the business under the Evans and Partners brand, with all advisors now authorized and operating under the Evans and Partners AFSL. We saw a marked increase in the number of clients on our retail wealth management offering, which has led to growth in FOA-based full service annuity revenue. As in prior periods, we continued to invest in our RegTech to deliver improved efficiencies, advice quality, and management oversight. We received strong support from Dixon Advisory clients following the appointment of voluntary administrators to DASS in January, with just over three-quarters choosing to transition to Evans and Partners. In E&P Capital, we expanded capability in target sectors with senior recruitment across the platform. In E&P Funds, we made significant further progress in reshaping the business to deliver improved value and liquidity outcomes for clients invested in our internally managed real asset funds. We completed withdrawal offers for the FSREC Property Fund, providing AUD 425 million of liquidity for unitholders during FY 2022. We have since completed another withdrawal offer in July, providing up to a further AUD 96 million in liquidity. Earlier in the year, New Energy Solar disposed of its Australian assets, with proceeds totaling AUD 288 million applied towards debt reduction and the buyback of units. On Monday, New Energy Solar announced that it had entered an agreement to dispose of its remaining US assets at approximate NAV, representing approximately AUD 352 million. Completion of the sale is subject to conditions, including shareholder and regulatory approval, following which it will result in the return of all remaining capital, the delisting of New Energy Solar from the ASX, and the wind up of the company. Finally, the group's CD Private Equity funds announced distributions to investors totaling AUD 86 million following a period of strong returns and realizations from the exit of certain of the fund's portfolio companies. The group made a number of key management hires over the year to assist in the strategic direction and execution of the group's core business growth initiatives. This included the appointment of India Maclean as Managing Director, Marketing, and Rose Clark as Chief People Officer. Ms. Maclean and Ms. Clark each bring a wealth of experience to E&P, and they will be central to the group's efforts as we implement targeted marketing and seek to enhance our talent management, training, and development frameworks to support our staff and help drive performance across the group. Reflective of the ongoing board renewal and succession planning, we welcomed two new directors over the year with the appointment of Ms. Sally McCutchan as Non-Executive Director and Mr. Tony Johnson as Executive Director. Sally and Tony are significant appointments for our firm and add extensive skills and capability to our board. Sally brings exceptional ESG credentials and experience in finance, funds management, and strategy across the Asia Pacific region. Tony enjoyed a successful 34-year career with EY, where he amassed extensive experience in the financial services sector, locally and internationally, most recently in his role as CEO and Managing Partner of EY Oceania. In addition to his role as Director, Tony will join E&P in an executive capacity focused on identifying and developing growth opportunities across the group. Moving now to Slide 7. In E&P Wealth, funds under advice was down 14% in the 12 months to 30 June 2022 to AUD 21.1 billion, primarily driven by negative equity market movements and DASS client exits. In E&P Capital, net revenue of AUD 62.2 million was up 8% compared to FY 2021 off the back of a record level of corporate advisory activity. In E&P Funds, our funds under management was lower at AUD 6.2 billion compared to June 2021, primarily due to negative equity market movements and deliberate asset sales in our real asset funds. During the period, we continued to execute our clearly defined strategy to drive medium and long-term growth. In conjunction with the successful consolidation to a single wealth brand, E&P Wealth has transitioned to a more contemporary operating model led by greater governance and independence. This backdrop has enabled the business to focus on growing its full-service advice offering, which has helped contribute to a greater proportion of FOA-based annuity revenue as compared to fixed fees for advice. The investments made in prior years in developing strong compliance, risk, and governance systems means E&P Wealth is well-placed to add scale to its operations through the provision advice to the underserviced mass affluent retail segment of the market. E&P Capital continued to prosecute its strategy as a boutique offering to corporate and institutional clients. In addition to targeted recruitment in key sectors, we are focused on enhancing E&P Capital's equity research coverage and origination capability, particularly within equity capital markets. Augmenting the strategy is the expansion of E&P Capital into Asia through E&P Asia (HK), providing increased penetration in the Asian market. In E&P Funds, we have taken steps to expand the external distribution and marketability of our strong-performing direct equity strategies together with executing necessary structural changes across the real asset portfolios. Several initiatives remain on foot, which the business is firmly focused on finalizing to complete an orderly exit of related party and non-core activities. I'll now provide an update on the performance of our three segments, beginning with E&P Wealth. The Evans and Partners retail wealth management service continued to grow throughout FY 2022, assisted by the transition of Dixon Advisory clients to Evans and Partners. The strong growth in funds under advice and client numbers is illustrated in the charts on the top right of the page. By 30 June 2022, we had over 1,000 clients under the new service, representing approximately AUD 2 billion in funds under advice. We believe the service is well positioned for growth as more clients transition and as our initiatives to win new clients gain traction. Overall, total client numbers of 8,000 were down from 9,100 from 12 months prior due to Dixon Advisory exits following the DAS voluntary administration. The division also experienced a decrease in funds under advice of 14% on last year, primarily due to equity market declines and client exits. A number of structural initiatives were implemented during the year. We began the rollout of industry-standard pricing for our remaining fixed fee clients in June 2022 and made enhancements to our client portal through the addition of a suite of ESG data and metrics against investment holdings. The Evans and Partners Family Office is another pillar of our long-term growth strategy that provides clients with a bespoke offering for managing complex affairs and intergenerational wealth. This period saw significant development of the service offering, and we now have dedicated full-time family office staff. The decrease in family office FOA was exacerbated by the concentrated exposure to individual securities held by select clients despite client numbers remaining stable over the period. During the period, we invested in advisor growth through sales training, business development, and enhanced marketing support to ensure we can deliver on our strategy over the long term. This was complemented by the provision of best-in-class training and mentoring to develop and retain internal talent. With over 6,400 hours of accredited training delivered in addition to internally developed content. In terms of the financial performance of E&P Wealth, underlying EBITDA was down 29% on the prior comparable period due to a softer second half, driven by the one-off impact of the DASS voluntary administration and Dixon Advisory client exits. Net revenue remained stable year-over-year as these impacts offset growth from the Evans and Partners High Net Worth and Retail Wealth Management offerings. The 7% increase in direct expenses during the period reflects the cost incurred in retaining Dixon Advisory clients and staff, as well as higher revenue-linked variable remuneration in Evans and Partners division experienced a 5 percentage point decrease in underlying EBITDA margin, as the voluntary administration meant that some services were provided for nil consideration, estimated to be AUD 1.5 million over the second half of FY 2022. Overall, we continued to improve the quality of our revenue sources during FY 2022. This was illustrated through the increased advice and services revenue off the back of growth in the Evans and Partners High Net Worth and Retail Wealth Management FOA-based annuity revenue. Countering this was lower brokerage revenue, which was expected as a result of the deliberate structural shift in our advice model. As can be seen from the charts, Evans and Partners remained strongly profitable throughout the year, albeit the normal seasonal earnings bias to the first half was exacerbated in FY 2022 by the market decline and consequent lower capital markets activity in the second half. However, following the voluntary administration of DASS in the second half of the year, the group was unable to recognize revenue from clients that transferred and continued their service under Evans and Partners until their annual service renewal date. This resulted in foregone revenue of approximately AUD 1.5 million. Together with the impact of client exits, this decrease in revenue was not offset by a commensurate reduction in costs, as additional costs of AUD 0.4 million were incurred in order to assist in servicing and retaining clients and staff. As I mentioned earlier, from June 2022, we began to roll out industry-standard pricing for our remaining fixed fee advice clients. Upon reaching their annual service renewal date, clients can choose to either remain on the fixed fee structure but at a higher fee consistent with industry-standard pricing, join the full service through our RWM Retail Wealth Management service, or leave the service. While in some cases, discussions are ongoing, as at 22 August 2022, around 44% of those clients reaching their annual review in June and July 2022 have either joined or are considering joining the Retail Wealth Management service. A further 27% have accepted the increased fee, with approximately 15% choosing to exit. We expect this dynamic will help the earnings in wealth to rebound over FY 2023 and continue to improve through FY 2024 as the one-off impacts of the voluntary administration recede. We note, however, that the first half of FY 2023 will continue to be impacted by the provision of services for no consideration until all former Dixon Advisory clients reach their annual service renewal date. Now moving on to E&P Capital. E&P Capital produced a record result in FY 2022, driven by high transaction levels and the continued execution of the division's clearly articulated strategy across its target market verticals. This growth from last year was driven by an increase in the number of completed M&A advisory transactions, supported by select market, capital market mandates in what was an extraordinary market dynamic, given several new entrants and record transaction levels. Our institutional equities businesses continued to perform solidly in a competitive environment, and we continued to invest in people and systems during FY 2022. An important arm of this strategy is our presence in Hong Kong, with the desk increasing penetration in the Asian market and broadening the platform's reach. During the year, we refined our equity research coverage with 136 stocks under coverage at 30 June 2022, representing approximately 73% of the ASX 200 by market cap. Finally, I'm pleased to report that E&P Capital again performed exceptionally well in the Peter Lee Associates survey. The results from the most recent report, which are shown on the slide, include second in both sales team capability and execution of small caps, plus repeated high rankings for a number of our sector analysts. Moving now to E&P Capital's financials. E&P Capital produced a meaningful uplift in revenue and EBITDA compared to FY 2021, with the result led by the successful execution of numerous corporate advisory transactions despite challenging market conditions in the second half. Net revenue for the year was AUD 62.2 million, representing an increase of 8% on prior comparable period. Underlying EBITDA was AUD 14.6 million, an increase of 3% on prior comparable period. Margins were impacted by a more competitive market in which to retain key staff and the investment we made in senior recruitment to derive future growth. Moving now to E&P Funds. In E&P Funds, we progressed value and liquidity initiatives across our real asset funds and achieved a resilient performance from our core equity strategies and private equity funds, noting challenging market conditions. We continued our strategic focus on the distribution of our core equities offering. We're pleased to report that our Claremont Global strategy received upgraded recommended investment ratings from both Lonsec and Zenith, following a strong year in which it was ranked the number 1 performing global equity manager in Australia in calendar year 2021. Access to the Claremont Global strategy was improved with listings on key platforms, resulting in total net inflows of AUD 91 million for FY 2022. Notwithstanding, the market was down 8.1% over the year. Finally, we expanded our global disruption investment team to further assist in attracting external capital and research ratings in line with our strategic focus on growing third-party capital from a diverse investor base. The many value and liquidity initiatives implemented over the year in relation to our internally managed real asset funds, which I referred to earlier, are detailed on the slide. Moving now to E&P Funds financials. E&P Funds achieved a resilient result with net revenue of AUD 47.3 million, up 1% on the prior year. Fund-based revenue fell 3% against the prior corresponding period as a result of the URF and new asset sale programs and the sale of the group's interests in the manager of the FSREC Property Fund. Base management fees received from the group's core equity strategies were up 5% on the prior year, despite being impacted by equity market declines in the second half. Non-fund-based revenue grew by 18% against the prior period, driven by solar asset disposal fees and non-recurring revenue, including contribution from principal positions in our joint venture private equity funds. Underlying EBITDA of AUD 14 million was up 46% compared to FY 2022, assisted by lower direct expenses following the rationalization of strategies over the past 2 years. That concludes the updates on our three divisions. Next, I'd like to update our shareholders on the progress we've made on the ESG and sustainability front. As shown on the left of the screen, we group our sustainability objectives into four key areas. The first three are focused on improving the service we provide to our clients by enhancing client choice and decision-making on ESG matters that are important to them. Over the past two years, we have made great progress integrating ESG considerations into our advice and client experience. Recognizing its growing importance to a broad array of stakeholders, during FY 2022, we spent time to consider and build out our corporate sustainability framework and reporting program. We undertook a firm-wide review of our corporate sustainability practices and developed a framework that considers ESG topic areas material to the ongoing success of our business. We have today published on our website our inaugural sustainability overview that details our process and performance for the financial year 2022. Before I hand over to Paul, I'll briefly touch on the voluntary administration of DASS and the outstanding representative proceedings against the company. As I mentioned earlier, voluntary administrators were appointed to DASS on nineteen January twenty twenty-two. E&P's objectives with regards to the voluntary administration were twofold. Firstly, to facilitate the prompt transfer of DASS clients to a replacement service provider of the client's choice with minimal disruption to client service. This has been achieved. The second objective is to propose a deed of company arrangement as part of a broader mechanism which provides for the comprehensive settlement of all DASS and related claims in a manner which provides for equitable treatment of all DASS client creditors. I note that the convening period for the second meeting of creditors was recently extended until thirty November twenty twenty-two. Formulation of a DOCA proposal is at an early stage and remains subject to further discussion with the voluntary administrators. EP1 does not intend to comment further publicly until the specific terms of the proposed DOCA have been finalized. The second matter on the slide relates to the two ongoing representative proceedings which were launched in late 2021 against DASS, EP1, and former group executives. The Federal Court made orders on the 15th of June 2022 that only the proceeding commenced by Shine Lawyers would proceed, with the Piper Alderman action stayed until the resolution of the Shine Lawyers proceeding. An interlocutory application hearing in the Shine Lawyers proceeding is scheduled for 7th September 2022. With that, I'll hand over to our CFO, Paul Ryan, who will talk to the group financial results. Thank you, Peter, and good morning, everyone. As Peter mentioned earlier, I'd like to start by reminding shareholders that today we've released our preliminary financial result while we complete the final stages of our annual audit. We anticipate that we will release our audited financials over the coming week. For financial year 2022, saw the group return a statutory profit, recording net profit after tax of AUD 6.3 million. The group's statutory result was again influenced by several non-underlying items as we continue to work towards resolving legacy issues. This included impacts from the DASS voluntary administration, the continuation of expenses incurred in responding to regulatory and representative proceedings, and a non-recurring gain on the sale of the group's interests in the manager of the FSREC Property Fund. Underlying EBITDA was AUD 28.9 million, and NPATA was AUD 10.3 million. These results represent an improvement in underlying profitability of 3% and 42% respectively when compared to the 2021 financial year. Group net revenue of AUD 193.3 million was up 3% on the prior comparable period, primarily driven by revenue growth from E&P Capital and the core Evans and Partners Wealth business, as well as returns on our principal investments and solar disposal fees. The uplift in staff expenses of 4%, as shown on the screen, reflects higher revenue-linked remuneration and competitive market conditions. The group's staff expenses to net revenue margin increased slightly from 67% in the 2021 financial year to 68% this period as the group made further investment in our people in a competitive market. Operating expenses were 2% lower compared to the 2021 financial year as the business continues to achieve cost efficiencies following the restructuring of fund strategies over the past 24 months. Lower depreciation and amortization expenses following rationalization of the group's office footprint, combined with lower amortization of acquired intangibles, helped lift statutory pre-tax profit to AUD 10 million. We expect the amortized acquired intangibles to reduce further through the next financial. The effective tax rate for the year was 38% due to the nondeductibility of share-based payment expenses, the goodwill impairment in E&P Wealth, and the write-off of US deferred tax assets. As mentioned at the half year, going forward, we expect our effective tax rate to trend towards the Australian statutory company tax rate as share-based payment expenses reduce and the US wind down reaches completion. A reconciliation of the group's tax expense for the year is set out on slide 27 in the appendix. On the next slide, we've set out the group's cash flow statement. Net operating cash flow of AUD 28.8 million was broadly in line with the prior period. We've presented operating cash flows as a reconciliation from statutory profit to help isolate non-cash items and items presented elsewhere in the cash flow disposal investments. The key non-cash addition in FY 2022 is the AUD 1.9 million loss incurred on the deconsolidation of DASS. The decrease in net working capital was reflective of higher annual cash bonus provisions and increased income taxes payable, offset by higher fee receivables at year-end. Gains on the group's position in the CD Private Equity Fund Series joint ventures flow through equity-accounted profits given our level of control as the investment manager. The contribution to profit is lower than last year following the disposal of our stake in the manager of FSREC Property Fund. The distributions and realized gains from both these positions flow through investing cash flows. Moving to those investing cash flows, we can see that the group acquired further financial investments in respect of legacy commitments, which are not expected to recur. The dividends received during the period were primarily from the CD and FSREC joint ventures, with dividends received from FSREC higher than prior periods as a result of distributions declared and paid prior to completion of the sale transaction. On the financing cash flows, the net deal proceeds from borrowings reflect full drawdown and repayment of an insurance premium funding facility of AUD 6 million over the year. We've decided not to renew this facility for FY 2023. We also purchased a further AUD 4.1 million worth of treasury shares to satisfy the future exercises of employee share rights. I should remind shareholders that we have suspended granting EP1 shares to all employees with the exception of key management personnel or to meet contractual commitments. Final financing cash flows of AUD 3.5 million in FY 2022 reflects a landlord fit out contribution following our move to consolidate our Sydney office footprint during the year. Moving now to the balance sheet on slide 22. On 30 June 2022, the group held cash totaling AUD 74.2 million with no borrowings. With several legacy matters still to resolve, the group decided to maintain its prudent cash management approach over the year. Although the cash balance has improved since June 2021 off the back of monetization of investments and operating earnings, I should note that the large majority of this balance is committed, the details of which are set out in the chart at the bottom of the page. The increase in trade and other receivables compared to last year reflects the timing of corporate advisory transactions completed in June and annual fees for wealth clients billed in June. The movement in financial and equity accounted investments primarily reflects the sale of our position in the FSREC joint venture to ISPT, partially offset by fair value gains on our prin... The decrease in intangible assets includes the write-off of remaining amortization for the chairman's restraint covenant following his transition to a non-executive role, an AUD 0.6 million impairment of the remaining goodwill in E&P Wealth due to regulatory matters, in addition to the standard expensing of software and other finite life intangible asset. The increase in right of use assets and lease liabilities are due to our Sydney office consolidation, which included an extension to the lease term. Movement in provisions and other liabilities reflect the impact of the DAS deconsolidation and reclassification of provisions to other liabilities. Partially offsetting the increase in other liabilities was lower unearned revenue at 30 June, following DAS client exits and transition to Evans and Partners' fee-based model charged on a monthly basis as compared in advance. With that, I'll now pass back to Peter to talk about the outlook for the company. Thanks, Paul. As we look ahead, our attention is increasingly focused on executing medium-term growth initiatives and resolving the remaining legacy matters. Looking to financial year 2023, we believe uncertain market conditions are likely to persist in the near term. We acknowledge that this may present challenges for fund-based revenue in wealth and funds. While our corporate advisory business has made a solid start to the new financial year and has an encouraging pipeline, capital markets activity is likely to be subdued given market uncertainty. The transition in E&P Funds is ongoing, with the recurring contribution from real assets expected to reduce as structural changes continue, to be offset by growth in core equities over time. Subject to market conditions and key transaction completion, we expect FY 2023 underlying earnings to be in line with FY 2022. Finally, further investment will be necessary as we progress towards closing out the voluntary administration of DASS and the class action proceedings. We intend to present a DOCA proposal for creditors to vote on at the meeting scheduled on or around 30 November 2022, and have had substantive preliminary discussions with the voluntary administrators on the subject. The final slide of this presentation repeats the message that Paul and I have shared with you for some time now. E&P Financial Group is building a consolidated services delivery platform across our core pillars of wealth management, corporate and institutional advisory, and equities funds management, which we think is truly differentiated from those of our competitors. We continue to work hard as a team every day to realize the strategic and financial objectives of the group, and I look forward to sharing more of our progress with you at future presentations. Thank you for joining. We now have an opportunity for Q&A from those on the line. Thank you. If you would like to ask a question, please press star one on your telephone and wait for your name to be announced. If you'd like to cancel your request, please press star two. If you are on a speakerphone, please pick up the handset to ask your question. As there are currently no phone questions, I'll now hand back to Mr. Anderson for any closing remarks. Thank you all for joining. We look forward to updating you again, in six months' time. Thank you. That does conclude our conference for today. Thank you for participating. You may now disconnect.
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