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1H25 RESULTS KELLY PARTNERS GROUP HOLDINGS LIMITED (ASX: KPG) Brett Kelly Founder and CEO Kenneth Ko CFO February 2025 594 104 38 4 $65m $134m 44.9m 11.0cps 26% Team Partners Businesses Countries 1H25 Revenue Rev run rate Shares 1H25 FCF per share ROIC + Org Gr For personal use only
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1H25 Results2 Section One Highlights1 2 3 4 Section Two About Section Three Capital Allocation Contents Page 4 Page 18 Page 23 Page 26 Section Four Financial Highlights 5 Page 33 Section Five US Listing For personal use only
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1H25 Results3 I don't believe all this nonsense about market timing. Just buy good value and when the market is ready that value will be recognized. I know a lot of people have very strong and definite plans that they've worked out on all kinds of things, but we're subject to a tremendous number of outside influences and the vast majority of them cannot be predicted. So my idea is to stay flexible. My only plan is to keep coming to work every day. I like to steer the boat each day rather than plan ahead way into the future. I believe in maximum flexibility, so I reserve the right to change my position on any subject when the external environment relating to any topic changes too. I do not define my job in any rigid terms but in terms of having the flexibility to what seems to me to be in the best interests of the company at any times. - Henry Earl Singleton For personal use only
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4 Highlights 1H25 results For personal use only
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KPG in 10 seconds 1H25 results5 Revenue +22.8% Revenue Growth Margin -2.5% EBITDA Margin Parent NPATA +12.0% Underlying NPATA Growth Revenue from ordinary activities Underlying EBITDA pre AASB 16 to Revenue Underlying NPATA attributable to parent 1H25 $64.9m 26.8% $4.9m 1H24 $52.9m 29.3% $4.4m 1H25 1H24 $202K/FTE 28.1% $12.7m $239K/FTE 30.6% $11.1m TTM Revenue / FTE Firm EBITDA % Underlying Group NPATA Profit & loss Balance sheet Cashflow Underlying Group NPATA on Group Equity Net Debt on Underlying Group EBITDA 1H25 36.5% 1.49X 1H24 35.3% 1.94X 1H25 1H24 22.2% 51.6 19.9% 55.2 Group ROIC* Lockup Days Return 36.5% Return on Equity Gearing -0.45x Net debt to underlying EBITDA Group Operating Cashflow pre AASB 16 Group Operating Cashflow (before finance costs and tax) on EBITDA 1H25 $20.2m 103.0% 1H24 $17.0m 101.4% 1H25 1H24 $72.6m $20.2m $59.0m $17.0m Receipts from Customers Group Operating Cashflow Cashflow +18.9% Operating cashflow Efficiency +1.6% Cash Conversion For personal use only
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$1.2m $3.2m $6.3m $7.9m $7.8m $8.4m $13.0m $17.2m $20.3m $21.1m $13.8m $19.3m $19.7m $24.3m $24.8m $30.9m $44.0m $52.9m $16.4m $20.1m $20.2m $22.0m $24.1m $33.9m $42.5m $55.3m $0.0 $20.0 $40.0 $60.0 $80.0 $100.0 $120.0 $140.0 $160.0 FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 $m Revenue FY 1H 2H EBITDA 18 Years of Growth (Doubled 6 times) due to KPG Business System 6 **CAGR means Compound Annual Growth Rate and represents the constant rate of compound revenue growth over the period since inception (with the business founded in 2006, and the calculation based on 2007 representing the first full year of operations). Audited numbers from FY2013 onwards. ANNUAL RECURRING (RUN-RATE) $86.5m $64.9m $48.9m$45.5m $40.0m $30.2m $39.5m $108.1m 30% Revenue CAGR* 21 3 4 5 1 Year 1 Year 4 Years 4 Years 5 Years Double 2007 Double 2008 Double 2009 Double 2013 Double 2017 Double 2022 3 Years 6 1H25 results $134.0m For personal use only
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45 49 65 84 108 120 FY20 FY21 FY22 FY23 FY24 1H25 TTM 4.8% 26.5% 28.7% 26.3% 18.8% FY21 FY22 FY23 FY24 1H25 TTM 28.5% 30.4% 26.3% 35.5% 34.7% FY21 FY22 FY23 FY24 1H25 TTM 30.3% 28.4% 24.7% 27.8% 26.2% FY21 FY22 FY23 FY24 1H25 TTM 13 16 20 22 30 32 FY20 FY21 FY22 FY23 FY24 1H25 TTM Performance 7 Note: (1) Pre AASB 16. (2) Parent ROE calculated as underlying NPATA / Equity. (3) Group ROIC calculated as (NPAT plus interest) / (Equity + Debt). (4) Cash conversion calculated as last reported operating cash flow divided by EBITDA. Strong revenue growth A$m 21% 5YR CAGR EBITDA 2.5x since FY20(1) A$m 19% 5YR CAGR Successful programmatic acquisition strategy Acquired revenue growth 21% 5YR average +20% Return on Equity(2) 31% 5YR average +29% Return on Invested Capital(3) + Organic Growth 28% 5YR average Cash conversion(4) 94% 5YR average 1H25 results 93.5% 83.3% 94.4% 96.9% 103.0% FY21 FY22 FY23 FY24 1H25 TTM For personal use only
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$0.0m $20.0m $40.0m $60.0m $80.0m $100.0m $120.0m $140.0m FY07 FY08 FY09 FY10 FY11 FY12 FY13 FY14 FY15 FY16 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 FY25 FY26 Revenue EBITDA NPATA 1. Start-up 2. Foundation 1H25 results8 Progress in 5-year periods 3. Build 4. Accelerate $3.4m $8.7m 29% Margin $30.2m $5.1m $16.0m 33% Margin $48.9m $8.0m $30.0m 28% Margin $108.1m $2.0m $7.8m 30% Revenue CAGR ~$10.0m- $13.0m $46.9m 35% Margin $134.0m Recurring Run Rate For personal use only
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KPG Earning Power 9 1H25 results Income Statement Summary ($m) 1H25 Run Rate – Low Run Rate - High Professional services revenue $64.9 $134.0 $134.0 Other income $0.3 $0.6 $0.6 Total Revenue $65.2 $134.6 $134.6 Operating Expenses -$47.0 -$94.2 -$87.5 EBITDA – Operating Businesses $18.2 $40.4 $47.1 EBITDA – Operating Businesses (%) 28.1% 30.0% 35.0% Parent Additional Investment -$0.8 $0.0 $0.0 Non Recurring Income/Expenses -$0.9 $0.0 $0.0 Statutory EBITDA pre AASB 16 $16.4 $40.4 $47.1 AASB 16 implementation (i.e. rent expense) $3.3 $6.9 $6.9 Statutory EBITDA $19.8 $47.3 $54.0 Depreciation (inc. dep’n of right of use assets) -$3.3 -$7.9 -$6.9 Amortisation -$3.5 -$7.3 -$7.3 Finance Costs -$3.3 -$7.9 -$6.9 Income Tax -$1.1 -$4.8 -$6.2 Statutory NPAT - Group Total $8.7 $19.4 $26.7 Non controlling interest $6.2 $11.9 $17.4 Statutory NPAT - Parent entity $2.5 $7.5 $9.3 Amortisation – Parent entity $1.7 $3.7 $3.7 Non Recurring Income/Expenses – Parent entity $0.7 $0.0 $0.0 Underlying NPATA to Shareholders $4.9 ~$11.0 ~$13.0 % of Group Revenue 7.6% 8.0% 10.0% Market capitalisation $527m Price to Earnings 47.9x 40.5x For personal use only
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1H25 Profitability 10 Source: IBIS World Accounting Services in Australia Industry Report (April 2020) Kelly+Partners data based on 1H25 accounts before parent entity costs and is after Base Distributions to Operating Business Owners ^EBITDA before parent entity costs and pre AASB 16 * All US operating businesses have been with Kelly+Partners for 12 months or less 19% 31% / 28% 81% 69% / 72% ACCOUNTING INDUSTRY KELLY+PARTNERS EBITDA Costs 1H25 results Operating Businesses Accounting Established Accounting Growth Other Services Total Accounting Subscale Total inc. Subscale US* Total Revenue $46.7 $6.1 $3.4 $56.2 $0.7 $56.9 $8.0 $64.9 EBITDA^ $14.8 $1.6 $1.0 $17.5 $0.1 $17.6 $0.7 $18.2 EBITDA Margin % 31.6% 27.0% 30.7% 31.1% 13.8% 31.0% 8.1% 28.1% For personal use only
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Capital Allocation – Half Year 11 KPG aims to build per-share intrinsic value by: 1H18 1H19 1H20 1H21 1H22 1H23 1H24 1H25 1. Improving the earning power of our operating businesses 26.9% 25.5% 34.0% 33.9% 33.5% 30.3% 30.6% 28.1% EBITDA margin of operating businesses 2. Further increasing their earnings through acquisitions 26.0% 22.9% 27.8% 6.5% 17.0% 34.5% 20.4% 18.9% Contribution to revenue growth 3a. Growing our existing accounting subsidiaries 3.9% 7.5% 6.5% 0.0% 5.1% 5.6% 3.1% 3.6% Contribution to revenue growth 3b. Growing our existing complementary businesses (5.4%) 10.7% 0.0% 0.4% 2.4% 2.1% (0.4%) 0.3% Contribution to revenue growth 4a. Making programmatic acquisitions 3 2 2 2 2 5 3 4 Number of acquisitions 4b. Making an occasional large acquisition (i.e. >$5m in revenue) 0 0 0 0 0 0 0 1* 5. Repurchasing KPG shares 0 0 95k 344k 0 0 0 100k Number of Shares On Issue 45.5m 45.5m 45.3m 45.0m 45.0m 45.0m 45.0m 44.9m 1H25 results *Kelly Partners FRS completed in August 2024 with $10.8m-$12.5m in annual revenues For personal use only
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Capital Allocation – Full Year 12 KPG aims to build per-share intrinsic value by: FY18 FY19 FY20 FY21 FY22 FY23 FY24 1. Improving the earning power of our operating businesses 34.0% 27.7% 32.5% 33.4% 30.9% 27.3% 29.6% EBITDA margin of operating businesses 2. Further increasing their earnings through acquisitions 17.2% 6.4% 6.6% 4.8% 26.5% 28.7% 26.3% Contribution to revenue growth 3a. Growing our existing accounting subsidiaries 10.3% (6.4%) 6.6% 1.5% 4.7% 2.9% 2.7% Contribution to revenue growth 3b. Growing our existing complementary businesses 2.7% 1.8% 1.4% 1.2% 1.5% 1.8% 0.3% Contribution to revenue growth 4a. Making programmatic acquisitions 0 4 3 7 8 8 6 Number of acquisitions 4b. Making an occasional large acquisition (i.e. >$5m in revenue) 0 0 0 0 0 1 0* 5. Repurchasing KPG shares 0 2k 95k 400k 0 0 0 Number of Shares On Issue 45.5m 45.5m 45.4m 45.0m 45.0m 45.0m 45.0m 1H25 results *Post year end on 16th August 2024 we completed the Florida partnership which is a large acquisition with $10.8m-$12.5m in annual revenues For personal use only
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1H25 results13 KPG Performance Scoreboard Financial year Adjusted Book Value* Inc. Dividends Paid Annual % Change Weighted Average No. of Shares in Per Share Book Value of KPG Annual % Change KPG.ASX Share Price Annual % Change ASX 300 Price Annual % Change Difference (per share market v ASX 300) KPG Cumulative Change 0 2007^ -$7,893 $6,296.90 1 2008^ -$35,688 352.1% $5,219.00 2 2009^ $358,843 -1105.5% $3,948.70 3 2010^ $1,356,714 278.1% $4,292.90 4 2011^ $1,525,463 12.4% $4,608.00 5 2012^ $2,224,720 45.8% $4,084.00 6 2013 $3,129,014 40.6% $4,758.50 7 2014 $3,712,201 18.6% $5,339.87 8 2015 $5,098,558 37.3% $5,400.50 9 2016 $6,508,237 27.6% $5,195.50 10 2017 $3,932,687 -39.6% 45,495,518 $0.09 $1.00 $5,668.80 11 2018 $8,647,596 119.9% 45,495,923 $0.19 119.9% $1.23 22.5% $6,152.30 8.5% 14.0% 22.5% 12 2019 $10,946,126 26.6% 45,496,894 $0.24 26.6% $0.89 -27.3% $6,568.40 6.8% -34.1% -11.0% 13 2020 $14,911,254 36.2% 45,418,414 $0.33 36.5% $0.88 -1.1% $5,858.50 -10.8% 9.7% -12.0% 14 2021 $20,077,213 34.6% 45,142,289 $0.44 35.5% $3.40 286.4% $7,306.50 24.7% 261.6% 240.0% 15 2022 $27,065,849 34.8% 45,000,000 $0.60 35.2% $3.88 14.1% $6,544.00 -10.4% 24.6% 288.0% 16 2023 $32,917,988 21.6% 45,000,000 $0.73 21.6% $4.72 21.6% $7,157.40 9.4% 12.3% 372.0% 17 2024 $39,474,076 19.9% 45,000,000 $0.88 19.9% $8.25 74.8% $7,708.20 7.7% 67.1% 725.0% 17.5 1H25 $46,383,040 17.5% 44,931,176 $1.03 17.7% $10.50 27.3% $8,098.90 5.1% 22.2% 950.0% Compounded Annual Gain - 2009 to 1H25 36.8% Compounded Annual Gain since IPO 39.2% 36.8% 4.7% 4.9% 32.0% Overall Gain - 2009 to 1H25…............................... 128.3x Overall Gain since IPO 10.9x 9.5x 1.1x 0.4x 9.1x *Adjusted Book Value includes adding back amortisation of customer relationship intangible expenses ^Unaudited Kelly Partners Performance v ASX 300 +36.8% p.a. For personal use only
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1H25 results14 KPG Performance Scoreboard 0 2,000 4,000 6,000 8,000 10,000 12,000 14,000 16,000 2009^ 2010^ 2011^ 2012^ 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 KPG Adjusted Book Value vs KPG.ASX vs. ASX 300 (2009-2024) rebased to 100 KPG Book Value ASX 300 KPG Book Value / KPG.ASX Shares issued to date pre 2012 Shares issue pre 2012 $605,800 2014 Shares issued 2014 $1,078,611 2016 Shares issued pre-IPO $1,835,500 2017 Shares converted from Con Note $8,125,000 2017 Shares issued on IPO $2,884,000 2017 Shares issued to employees $673,973 2017 Share issue costs, net of tax -$1,031,407 $14,171,477 Shares bought back to date 2019 Shares bought back 2019 -$1,876 2020 Shares bought back 2020 -$88,136 2021 Shares bought back 2021 -$611,505 1H25 Shares bought back 2025 -$781,455 -$1,482,972 Net shares issued / bought back $12,688,505 For personal use only
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EPS & Free Cashflow per Share (Owners’ earnings per share) 15 +19.5% p.a. Owner Earnings (Parent) / FCF per share growth from FY20 to FY24 1H25 results 8.55 11.11 14.03 13.33 17.44 19.18 8.67 11.33 13.99 11.72 17.84 19.03 45,400,000 45,000,000 45,000,000 45,000,000 45,000,000 44,900,000 FY20 FY21 FY22 FY23 FY24 1H25 TTM Free Cashflow (FCF) per share Earnings per Share Number of Issued Shares For personal use only
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1H25 results16 Share Buy Backs Date Closing Shares Shares Repurchased % Repurchased Open at IPO 45,497,181 30 Jun 18 45,497,181 - - 30 Jun 19 45,495,000 (2,181) 0.0% 30 Jun 20 45,400,000 (95,000) 0.2% 30 Jun 21 45,000,000 (400,000) 0.9% 31 Dec 24 44,900,000 (100,000) 0.2% Total Outstanding 44,900,000 (597,181) 1.3% 597,181 shares repurchased since IPO, with no new shares issued. • In line with KPG’s strategy KPG intends to build per-share intrinsic value by repurchasing KPG Shares when they are available at a meaningful discount from intrinsic value. • Since IPO, KPG has repurchased 597,181 shares at a c. 77.5% discount to the current price ~$11.00 • In total, our existing shareholders have benefited from a return of 11.3c per share on the shares repurchased to date Share Purchase VWAP vs Current Price Total purchase costs $1,482,972 VWAP of share repurchases Since IPO: $2.48 Share price as at 28th January 2025 $11.00 Discount to closing price 77.5% “Gain” to existing shareholders $5,086,019 “Gain” per share 11.3c For personal use only
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Kelly Partners Group Corporate P/E Relationship Partnership / Personal Corporate Transaction Term Long term Medium term Short term Price versus value(s) Values and Price Price Price Leadership Founder Led CEO Led P/E Led Industry Expertise in your size and type of business High Medium Low Mission, Values, Vision High ? Low Legacy v Deal Legacy Deal Deal Accounting Industry PE Deal Update 17 1H25 results For personal use only
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18 About 1H25 results For personal use only
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INDIA: 1 AUSTRALIA: 26 UNITED STATES: 7 HONG KONG: 1 Locations 35 19 1H25 results For personal use only
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Leading Platform 20 People Clients Shareholders team members Inc. 104 operating partners 594 office locations 26 Australia and 9 global 35 partnerships Since inception 57 Great Place to Work® 93% active clients across Australia & US 25,000 tax & accounting Proportion of FY24 revenue 95% organic growth p.a. Historical revenue growth rate 5% NPS vs industry’s -18 +72 revenue growth p.a. CAGR since 2006 30% parent ROE Five-year average 31% cash conversion Five-year average 94% TSR since IPO +1,000% 1H25 results For personal use only
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Top 10 in Australia Go Global Strategy 21 Objective Scope Advantage Kelly+Partners Business System, Partner-Owner-Driver® , Central Progress Team Financial Review Top 100 Accounting Firms ($m) Rev ($m) Est. % Audit Deloitte 2,780.0 EY 2,500.0 PwC 2,350.0 KPMG 2,230.0 1 BDO 540.1 Findex (Financial Planning) 463.5 2 RSM Australia 372.5 3 Grant Thornton 359.4 4 Pitcher Partners 349.0 5 PKF 185.1 6 William Buck 171.0 7 Bentleys Network 142.0 8 Nexia Australia 140.9 9 HLB Mann Judd 133.3 10 Hall Chadwick 119.4 Synergy Group (Government) 110.0 Count (Financial Planning) 109.2 11 Kelly Partners (FY24) 108.1 4% 12 Moore Australia 100.0 Grow to become a top 10 accounting firm in Australia Growing Kelly+Partners Business System in global markets FY24 Revenue $4.2m* - $103.9m $108.1m 1H25 results % 12.3% - 87.7% 100% * Part year contributions from in year acquisitions 25%-40% 1H25 Revenue $8.0m* - $56.9m $64.9m Country US UK Australia Total % 3.9% - 96.1% 100% For personal use only
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3 2 1 3 1 1 1 2 4 3 7 8 9 6 4 0 2006 1 2007 2 2008 3 2009 4 2010 5 2011 6 2012 7 2013 8 2014 9 2015 10 2016 11 2017 12 2018 13 2019 14 2020 15 2021 16 2022 17 2023 18 2024 19 1H25 Partnerships 22 Note: based on acquisitions that are announced in the stated financial year, e.g. acquisition that was announced in FY22 but completed in FY23 is shown in FY22. ~6x Pre-IPO 14 average ~1 per annum 41 average ~6 per annum IPO Prospects 5,355 Firms 52,409 1H25 results Leads 444 Opportunities X Conversions X 10% 8% For personal use only
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23 Capital Allocation 1H25 results For personal use only
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ROIC 24 Year Group Underlying NPATA + Cash Interest Invested Capital (Debt + Equity) Group ROIC Organic Revenue Growth (YOY) ROIC + Organic Revenue Growth 2017 $7,961,219 $34,791,080 22.9% 22.9% 2018 $12,132,817 $38,886,264 31.2% 13.0% 44.2% 2019 $9,650,748 $42,755,818 22.6% -4.3% 18.3% 2020 $10,955,031 $41,935,241 26.1% 8.0% 34.1% 2021 $12,410,693 $44,924,311 27.6% 2.7% 30.3% 2022 $15,209,546 $68,289,664 22.3% 6.2% 28.4% 2023 $16,136,313 $80,725,640 20.0% 4.7% 24.7% 2024 $25,013,784 $100,787,280 24.8% 3.0% 27.8% 1H25 $26,836,000 $121,043,000 22.2% 4.0% 26.2% Average (2018 to 1H25) 24.6% 4.7% 29.3% “And when we think about Invested Capital, we think about the shareholder capital that has been invested in the businesses, plus any Adjusted Net Income less any distributions. Obviously, when you divide Adjusted Net Income by Invested Capital, you get a measure of the return on our shareholders’ investment (i.e. ROIC). If you add Organic Net Revenue Growth to ROIC, you get what we believe is a proxy for the annual increase in Shareholders’ value. In a capital intensive business, you couldn’t just add Organic Net Revenue Growth to ROIC, because growing revenues would require incremental Invested Capital. In our businesses we can nearly always grow revenues organically without incremental capital.” Mark Leonard Constellation Software 2009 President’s Letter, page 2 1H25 results For personal use only
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Additional Investment 25 • Additional investment of $0.8m (1.3% of revenue) to ensure we can handle next stage of growth • Additional investment as a % of group revenue (1.3%) has decreased compared to prior years while revenues have grown 22.8%. • We have always invested in advance to have the right team and platform to service newly acquired businesses joining the Group. • Significant additional investment only required and intentionally spent during times of extraordinary growth ‘m FY18 FY19 FY20 FY21 FY22 FY23 FY24 1H25 Recurring Group revenue $39,469 $39,975 $45,496 $48,906 $64,862 $86,524 $108,143 $64,927 $134,000 Revenue growth - +1.3% +13.8% +7.5% +32.6% +33.4% +29.2% +22.8% Additional investment $372 $742 $1,631 $371 $78 $2,479 $1,948 $818 % of revenue 0.9% 1.9% 3.6% 0.8% 0.1% 2.9% 1.8% 1.3% Cumulative additional investment $372 $1,114 $2,745 $3,116 $3,194 $5,673 $7,651 $8,469 Underlying NPATA $4.3m $3.2m $3.9m $5.1m $6.3m $5.3m $8.0m $4.9 $10-$13.0m ~2.5x Sources of capital • Internal cashflow • Issue debt • Issue equity Use of capital • Invest in existing operations • Buy other companies • Pay down debt • Pay dividends • Repurchase shares 1H25 results For personal use only
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26 Financial Highlights 1H25 results For personal use only
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Financial Highlights 27 1H25 Financial Highlights (m) KPGHL & Controlled Entities KPGHL Attributed (parent only) P&L and Cashflow 1H24 1H25 % Change 1H24 1H25 % Change Revenue $52.9 $64.9 22.8% – – – Underlying EBITDA (pre AASB 16) – Operating Business $16.2 $18.2 12.5% – – – Margin % - Operating Business 30.6% 28.1% -8.2% – – – Underlying EBITDA (pre AASB 16) – after parent add’t inv’t $15.5 $17.4 12.5% – – – Margin % 29.3% 26.8% -8.4% – – – EBITDA (pre AASB 16) $14.2 $16.4 15.8% – – – Underlying NPATA $11.1 $12.7 14.7% $4.4 $4.9 12.0% Margin% 21.0% 19.6% -6.6% 8.3% 7.6% – NPATA $10.0 $12.0 20.0% $3.3 $4.3 28.2% Dividends & Distributions Paid $6.5 $9.5 46.3% $1.2 – – Cash from Operating Activities (pre AASB 16) $11.5 $14.5 26.7% – – – Owners' Earnings1 $11.1 $14.0 26.2% $4.2 $4.9 18.6% Gearing (Net Debt / Underlying EBITDA) 1.94x 1.49x – – – – Cash Conversion (Operating Cash Flow / EBITDA) 101.4% 103.0% – - - – Earnings per share (Underlying NPATA) (cents) – – – 9.78c 10.95c 12.0% Earnings per share (Stat NPAT) (cents)2 – – – 4.07c 5.56c 36.8% Equity Partners 88 104 18.2% - - – Revenue per Equity Partner (Trailing 12 months) $1.1 $1.2 5.5% - - – Balance sheet 30-Jun-24 31-Dec-24 % Change 30-Jun-24 31-Dec-24 % Change Lockup (Debtors + WIP)3 $18.0 $19.0 5.4% - - - Net Debt8 $45.2 $55.5 22.8% $9.2 $18.6 101.5% Total Equity $52.4 $62.7 19.8% $22.6 $24.7 9.0% Return on Equity4 40.7% 36.5% -10.1% 35.5% 34.7% -2.2% Return on Invested Capital5 24.8% 22.2% -10.7% 21.5% 16.6% -22.5% Days Lockup6 56.1 51.6 -7.9% - – – Equity Ratio (Equity / Total Assets)7 32.9% 32.6% -0.8% – – – 1 Owner earnings – calculated as Cash from Operating Activities less Payments for Lease Liabilities less Maintenance Capex. 2 Earnings per share on statutory NPAT impacted by amortisation expenses and into, one off items 3 Lockup – calculated as the total of trade and other receivables, accrued income less contract liabilities 4 Return on Equity – calculated as the Underlying NPATA / Total Equity 5 Return on Invested Capital – calculated as (Underlying NPATA + Interest) / (Total Equity + Debt). Parent ROIC has been recalculated to take in to account parent attributed debt that sits in operating businesses. Return on Invested Capital impacted where the full acquisition has been taken into account and only a part year profit contribution has been made by the acquired business. 6 Days Lockup – calculated as lockup divided by revenue multiplied by 365 7 Equity Ratio– calculated as Equity / Total Assets. 8 Net Debt for parent excludes attributable debt in subsidiary businesses. 1H25 results For personal use only
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Income Statement 28 Income Statement Summary ($m) 1H24 1H25 ∆% Professional services revenue $52.9 $64.9 22.8% Other income $0.3 $0.3 4.2% Total Revenue $53.1 $65.2 22.7% Operating Expenses -$36.9 -$47.0 27.4% EBITDA – Operating Businesses $16.2 $18.2 12.5% EBITDA – Operating Businesses (%) 30.6% 28.1% Parent Additional Investment -$0.7 -$0.8 12.7& Underlying EBITDA pre AASB 16 $15.5 $17.4 12.5% Underlying EBITDA margin (pre AASB 16) 29.3% 26.8% Non Recurring Income/Expenses -$1.3 -$0.9 - Statutory EBITDA pre AASB 16 $14.2 $16.4 15.8% AASB 16 implementation $2.8 $3.3 - Statutory EBITDA $17.0 $19.8 16.0% Depreciation (inc. dep’n of right of use assets) -$2.8 -$3.3 16.6% Amortisation -$2.7 -$3.5 26.0% Finance Costs -$3.1 -$3.3 4.8% Income Tax -$1.0 -$1.1 6.3% Statutory NPAT - Group Total $7.3 $8.7 18.1% Non controlling interest $5.5 $6.2 12.0% Statutory NPAT - Parent entity $1.8 $2.5 36.6% Amortisation – Parent entity $1.5 $1.7 14.5% Non Recurring Income/Expenses – Parent entity $1.1 $0.7 -33.2% Underlying NPATA to Shareholders $4.4 $4.9 12.0% • Operating expenses increase in line with revenue growth. • Increased amortisation expense of $3.3m (1H24: $2.8m) due to higher customer relationship intangibles resulting from increased acquisition activity. • Increased finance costs due to an increased debt from financing acquisitions completed. Underlying NPATA attributable to shareholders increased by 12.0% to $4.9m (1H24: $4.4m). driven both by organic revenue growth (4.0%) and by contributions from acquisitions completed in FY24 and in 1H25 (18.8%). Revenue of (+$12.1m, up 22.8%), $64.9m Operating EBITDA margins impacted due to US businesses acquired in the last 12 months. Operating EBITDA margin at Aus. Businesses Total 31.0% / 28.1% 1H25 results For personal use only
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43.4 52.3 43.1 11.7 3.7 8.6 0.0 10.0 20.0 30.0 40.0 50.0 60.0 31 Dec 2023 30 Jun 2024 31 Dec 2024 Days Lockup Days WIP Days Debtor Days Balance Sheet 29 • Net Debt / Underlying EBITDA of 1.49x (FY24: 1.28x) increased due to debt used to complete in year acquisitions. • Group ROE of 36.5% (Group Underlying TTM NPATA $22.9m / Group Equity of $62.7m) (FY24: 40.7%). • Parent ROE of 34.7% (FY24: 35.5%) • Lock up days at 51.6 days calculated based on annualized run rate revenue of $134m • Total Assets $192.4m (+20.7%) driven mainly due to increases in intangible assets from acquisitions to $101.4m (FY24: $81.8m) with a corresponding increase in NCI equity as the 49% equity of the acquired business is recorded as part of the accounting recognition • Net debt has increased 21.7% since 1H24 while revenue has increased 22.8% and underlying NPATA of the parent increased 12.0% $m (consolidated) Balance Sheet (selected line items displayed) 31 Dec 2023 30 Jun 2024 31 Dec 2024 Cash 3.4 3.3 2.9 Lock up (Debtors + WIP) 16.1 18.0 19.0 Right of use assets 26.4 24.4 27.9 Intangibles 77.6 81.8 101.4 Total Assets 154.1 159.3 192.4 Borrowings 49.0 48.4 58.3 Lease liabilities 30.7 29.0 33.1 Total Liabilities 108.5 107.0 129.6 Net Assets 45.6 52.4 62.7 Non-Controlling Interest 24.4 29.7 38.0 Equity attributable to KPGH shareholders 21.3 22.6 24.7 55.2 56.0 51.6 1H25 results For personal use only
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Working capital, $6.6m Acquisition & Term Debt, $47.8m Property, $4.0m Available Headroom, $23.0m Cash, $2.9m $0.0m $10.0m $20.0m $30.0m $40.0m $50.0m $60.0m $70.0m $80.0m $90.0m $100.0m Debt & Liquidity 30 • Net debt increased $10.3m from 30 June 2024 and Group gearing increased to 1.49x (FY24: 1.28x) mainly due to debt taken out to complete the 4 acquisitions this half year • Gross debt excluding working capital debt of $51.8m (FY24: $43.9m) increased $7.9m. • Strong debt repayments as per cashflow – total debt drawn of $13.1m offset by $5.4m in debt repayments for the half year * Rounded to nearest $100,000 1H25 Parent Op. Bus Total Debt Working Capital Debt $0.1 $6.5 $6.6 Property Debt $0.0 $4.0 $4.0 Acquisition & other term debt $18.7 $29.1 $47.8 Gross Debt $18.8 $39.6 $58.3 Cash -$0.2 -$2.6 -$2.9 Net Debt $18.6 $36.9 $55.5 FY24 Gross Debt $9.3 $39.1 $48.4 Cash -$0.1 -$3.2 -$3.3 Net Debt $9.2 $36.0 $45.2 Movement Gross Debt $9.5 $0.4 $9.9 Cash $0.1 -$0.6 -$0.4 Net Debt $9.3 $1.0 $10.3 • Working Capital debt of $6.6m is covered ~3x by WIP and Debtors ($19.0m) • Acquisition & Term Debt of $47.8m is supported by annuity style cashflows and repaid over 5 years • Cash & facility headroom of $25.8m, representing 44% of debt drawn $58.3m Drawn $55.5m Net $81.3m Facility Limits 1H25 results $25.8m Cash & Headroom For personal use only
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Cashflow 31 * Rounded to nearest $100,000. Refer to slide “Cash Reconciliation” for a reconciliation from Statutory NPAT to Cash from Operations 1 Cash Conversion is calculated as Operating Cashflow divided by Reported EBITDA. Operating Cashflow means cash from operations but before finance and cash taxes Cash flow ($m)* 1H24 1H25 Diff $ Diff% Cash from Operations (CFO) pre AASB 16 $11.5 $14.5 $3.0 26.7% Maintenance Capex -$0.4 -$0.5 Scheduled Debt Reductions -$3.8 -$5.4 Free Cash Flow to Firm (FCFF) after scheduled debt reductions $7.3 $8.6 $1.3 18.5% Debt Drawn $15.9 $13.1 Acquisitions -$7.0 -$9.0 Growth Capex -$2.6 -$0.6 Distributions to non controlling interests -$5.1 -$9.4 Additional debt repayments -$1.6 - Dividends to Shareholders -$1.2 - Loans Advanced -$3.0 -$4.0 Payments into Employee Share Scheme Trust -$0.1 -$0.5 Proceeds from sale of Equity Interests $2.2 $0.5 Deposits $0.0 -$0.5 Share buy backs - -$0.8 Change in Net Cash* $4.8 -$2.7 • Cash from Operations pre AASB 16 of $14.5m increased by 26.7% (1H24: $11.5m) • Free Cashflow to Firm after scheduled debt reductions increased 18.5% • Cash Conversion1 of 103.0% (1H24: 101.4%) is consistent with our expected 85%-100% conversion ratio • Drawn debt used primarily to fund acquisitions and new partner buy-in loans • Scheduled debt reductions increased in line with increased debt. Debt repaid in 5 years from draw down • Share buy backs of $0.8m in 1H25. 1H25 results $11.5m $14.5m 1H24 1H25 Cash from Operations (CfO) $7.3m $8.6m 1H24 1H25 Free Cashflow to Firm (FCFF) after Debt Reductions For personal use only
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$6,197 $6,489 ($1,017) ($894) ($321) ($818) ($183) ($1,085) ($111) $440 NCI NPBT Parent NPBT before parent entity costs Parent Tax Parent Interest Parent Depreciation Additional Investments Strategic Review Acquisition Costs Other Non Recurring Retention Reversal Parent NPAT - Reported Parent & NCI Waterfall 32 1H25 results 51% 49% $5,472 ($2,233) (34.4%) • The profit attributable to the parent vs. NCI represent a 29%/71% split and differs from the ownership interests of ~51%/49%. This is due to the following items: • Income tax expense of $1.0m of the parent entity. As the majority of operating businesses are structured as partnerships, the income tax expense attributable to non controlling interests in these partnerships is not included in the consolidated accounts • Parent entity additional investments above the Services Fee and IP License Fee income that it receives which is borne 100% by the parent entity • Non recurring items include: • Strategic review – legal costs on exploring potential domiciliation of the Company to the US • Acquisition and implementation costs – for the 4 acquisitions completed this year • Interest from debt attributed to the parent used to fund acquisitions • Depreciation on office fitouts in the US and Australia, as well as amortization of software development costs $4,577 $4,256 $3,438 $3,255 $2,170 $2,059 $2,499 $2,499 For personal use only
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33 US Listing 1H25 results For personal use only
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US Listing 1H25 results34 On Going Public @awilkinson has written a book very much worth reading #baristatobillionaire it is a great read of a Founder doing their best. As Charlie would say, there are precious ideas you need to hear in a $20 book! My favorite part is on page 17, Charlie Munger speaking: 'You guys seem smart, but being public has its benefits.' he said. Why? Chris asked. "Doesn't it create a slew of problems?“ 'No, no, no,' Munger said. "It creates a slew of opportunities.“ He started to rattle through a long list of reasons why being a public company can be ideal....He concludes ...being public is wonderful, if you do it right. The key is to avoid thinking about it too much, being honest and diligent, and slowly building a reputation for doing the right thing." For personal use only
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US Listing Timetable (Illustrative Only) 1H25 results35 Month 1 Month 2 Month 3 Month 4 Month 5 Month 6 Month 7 Month 8 Month 9 Month 10 Month 11 Month 12 ASX Scheme process and structuring SEC US listing process Preparation process • Transaction structuring and documentation ASX Scheme process • ASX scheme review and approval • Prepare CDI structure First Court Hearing Scheme Meeting Second Court Hearing Scheme Implementation Date Planning and structuring Complete redomilication PCAOB audit Submit Prospectus Form-F1 with PCAOB audit to SEC • Advisor appointments and information gathering • Redomilication process SEC review process • SEC review and feedback, PCAOB audit update (as needed) • Finalise Form F-1 document • Audit of last two years Publicly release Form F-1 filing Investor engagement & direct listing process • Investor presentation for private placement of shares • Transaction documentation and regulatory filings Commence trading PCAOB audit & SEC preparation • Draft SEC Prospectus For personal use only
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THANK YOU For personal use only
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37 Appendix 1H25 results For personal use only
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Trinity - Parent 38 1. ROIC - Group 19.9% 2. Net Debt to EBITDA - Group 1.94x EARNINGS PER SHARE 9.8 cps +25.0% 3. Cashflow Conversion - Parent 94.8% 1. ROIC - Group 22.2% 2. Net Debt to EBITDA - Group 1.47x EARNINGS PER SHARE 11.0 cps +12.2% 3. Cashflow Conversion - Parent 100.3% 1H24 1H25 1H25 results For personal use only
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Trinity - OP CO 39 * Calculated on estimated annualised run rate revenue 1. WIP 11.7 days* 2. Debtors 43.4 days* CASH CONVERSION ON EBITDA 101.4% 3. Revenue 23.1% Growth EBITDA 30.6% Margins 1H24 1. WIP 8.6 days* 2. Debtors 43.1 days* CASH CONVERSION ON EBITDA 103.0% 3. Revenue 22.8% Growth EBITDA 28.1% Margins 1H25 1H25 results For personal use only
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Revenue growth 40 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1H25 AVG Organic – Accounting 10.3% -6.4% 6.6% 1.5% 4.7% 2.9% 2.7% 3.7% 3.3% Organic – Complementary 2.7% 1.8% 1.4% 1.2% 1.5% 1.8% 0.3% 0.3% 1.4% Organic – Total 13.0% -4.6% 8.0% 2.7% 6.2% 4.7% 3.0% 4.0% 4.6% Acquired 17.2% 6.4% 6.6% 4.8% 26.5% 28.7% 26.2% 18.8% 16.9% Total 30.2% 1.8% 14.6% 7.5% 32.6% 33.4% 29.2% 22.8% 21.5% FY18 FY19 FY20 FY21 FY22 FY23 FY24 1H25 AVG Organic – Total 13.0% -4.6% 8.0% 2.7% 6.2% 4.7% 3.0% 4.0% 4.6% Inflation - Australia 2.1% 1.6% -0.3% 3.8% 6.1% 6.0% 3.6% 2.8% 3.2% Total +10.9% -6.2% +7.7% -1.1% +0.1% -1.3% -0.6% 1.2% 1.4% Revenue growth contributions by year Organic growth v Inflation by year 1H25 results For personal use only
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Revenue & EPS 41 YOY Contrib. Internal Organic – Accounting 3.8% 3.6% Internal Organic - Complementary 6.4% 0.3% External Acquired ∞ 18.9% Total 4.0% 22.8% Revenue compounded annual growth rate since 2006 29.8% Earnings per share annual growth rate since IPO to FY24 13.0% 1H25 results For personal use only
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1H/2H Skews 42 • Revenue seasonality in the accounting businesses is approximately 1H: 52% / 2H: 48%, equating to a 5% (or c. $5.4m swing) down swing in 2H24. • Seasonality is predominantly due to timing of tax work related to 30 June year end, with most work typically completed in the first 9 months of the year. • The Group also engages in a small amount of audit work which is mostly completed by the 31 October lodgement deadline. Audit work represents less than 4.0% of group revenues. • Earnings split between 1H / 2H may also be impacted by level of additional investments by the parent entity and timing of in year acquisitions 53.2% 46.8% 52.8% 47.2% 52.5% 47.5% 51.7% 48.3% 51.6% 48.4% 25.0% 35.0% 45.0% 55.0% 65.0% 75.0% 1H20 2H20 1H21 2H21 1H22 2H22 1H23 2H23 1H24 2H24 Revenue seasonality in accounting business (excludes impacts of in year acquisitions) 1H25 results For personal use only
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NPATA reconciliation 43 • totals impacted by rounding * difference between cash rent expense and the accounting of leases. This has been added since FY24 as the impact of this is becoming more significant as the group grows its number of offices Reconciliation of attributed NPAT/NPATA ($m)* 1H24 1H25 Statutory NPAT attributable owners of Kelly Partners Group Holdings Limited 1.8 2.5 Amortisation of customer relationship intangibles 1.5 1.7 NPATA attributable to owners of Kelly Partners Group Holdings Limited 3.3 4.2 Add: non-recurring expenses or non cash adjustment items Acquisition costs 0.5 1.1 Impact of AASB* 0.0 0.2 Strategic review costs 1.0 0.2 Other non recurring expenses 0.0 0.1 Less: Non-recurring revenue items Other non recurring income 0.0 -0.4 Less: Tax effect of non recurring items -0.4 -0.4 Net non recurring items 1.1 0.7 Underlying NPATA attributable to Shareholders 4.4 4.9 1H25 results For personal use only
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Parent & NCI 44 (‘000) NCI Parent Total Group NPBT before parent entity costs $6,197 $6,489 $12,687 49% 51% Less: Income Tax Expense ($43) ($1,017) ($1,060) Less: Parent entity expenses • Additional investments above 9% ($818) ($818) • Non Recurring Items – Strategic Review ($183) ($183) • Non Recurring Items – Acquisition and Implementation ($1,085) ($1,085) • Non Recurring Items – Establishment cost of loan facility ($111) ($111) • Non Recurring Items – Retention reversal $440 $440 • Interest expenses ($894) ($894) • Depreciation expenses ($321) ($321) Total ($2,973) ($2,973) Group NPBT before parent entity costs $6,154 $2,499 $8,653 71% 29%Totals subject to rounding • The profit attributable to the parent vs. NCI represent a 29%/71% split and differs from the ownership interests of ~51%/49%. This is due to the following items: • Income tax expense of $1.0m of the parent entity. As the majority of operating businesses are structured as partnerships, the income tax expense attributable to non controlling interests in these partnerships is not included in the consolidated accounts • Parent entity additional investments above the Services Fee and IP License Fee income that it receives which is borne 100% by the parent entity • Non recurring items include: • Strategic review – legal costs on exploring potential domiciliation of the Company to the US • Acquisition and implementation costs – for the 4 acquisitions completed this year • Interest from debt attributed to the parent used to fund acquisitions • Depreciation on office fitouts in the US and Australia, as well as amortization of software development costs 1H25 results For personal use only
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Free Cashflow - Group 45 FY18 FY19 FY20 FY21 FY22 FY23 FY24 CAGR 1H25 Cash From Operations (CfO) $6.6 $10.0 $14.3 $15.1 $17.6 $19.5 $25.6 25.3% $17.6 Owners' Earnings (CfO - Maint. Capex) $6.3 $9.7 $12.2 $12.8 $14.0 $14.9 $19.5 20.7% $14.0 Cash Conversion (Operating Cash Flow / EBITDA) 63.5% 116.8% 97.3% 93.5% 83.3% 94.4% 96.9% 103.0% Days Lockup 93.3 69.6 55.2 51.1 55.8 48.1 56.1 51.6 $6.6 $10.0 $14.3 $15.1 $17.6 $19.5 $25.6 $0.0 $5.0 $10.0 $15.0 $20.0 $25.0 $30.0 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1H25 results For personal use only
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Free Cashflow (“Owner earnings”) 46 FY20 FY21 FY22 FY23 FY24 CAGR 1H25 Owner earnings $3.9m $5.0m $6.3m $6.0m $7.8m 19.2% $4.9m Owner earnings per share (cents) 8.55 11.11 14.03 13.33 17.44 19.5% 11.0 % Growth 24.4% 29.9% 26.3% -5.0% 30.8% 18.6% Underlying NPATA $3.9m $5.1m $6.3m $5.3m $8.0m 19.5% $4.9m Cashflow Conversion - Parent 99% 98% 100% 98% 98% 100% • Owner earnings represent the cashflow available to the parent entity. Owner earnings is used to measure cashflow to the Group (after taxes and finance costs) after taking in to account: • additions or reductions in working capital investment (debtors, creditors and other accrual movements); • deductions required for the maintenance capital expenditure of the business to maintain ongoing operations in the long term • For the parent entity, owner earnings equates to Cashflow from Operating Activities as there is minimal capital expenditure required to maintain the activities of the parent entity • One off expenses relating to the strategic review and acquisition costs has been excluded from owner earnings for the purposes of comparing to Underlying NPATA (which excludes these one off expenses) 1H25 results For personal use only
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Cash reconciliation 47 Reconciliation of NPAT to Operating Cashflow ($m) 1H24 1H25 Reported NPAT 7.7 9.7 Adjustments for Depreciation and amortisation 5.7 6.8 Unwinding of interest on contingent consideration 0.3 0.2 Other non-cash movements* 1.5 3.2 Change in operating assets and liabilities Decrease / (increase) in trade and other receivables -1.9 -1.7 Decrease / (increase) in deferred tax assets 0.5 0.1 Increase / (decrease) in trade and other payables 0.2 0.1 Increase in provision for income tax 0.0 -0.7 Net cash from operating activities (+26.0%) 14.0 17.6 *Other non cash movements include balance sheet items recognised as part of completed acquisitions 1H25 results For personal use only
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Net debt per partner 48 • Total number of equity partners increased to 104 (as at 31 December 2024): • 2 New partners promoted internally • 9 New partners from completed acquisitions • Net debt per partner consistent with prior 3 years with increased net debt offset by increased partner count as well as an amortization of debt through repayments • The group continues to focus on developing and recruiting new partners as part of its strategy to retain and motivate key talent and to drive top line growth $326,230 $291,167 $366,813 $346,198 $296,758 $505,938 $511,763 $470,447 $533,381 36 39 40 44 53 62 78 96 104 0 20 40 60 80 100 120 $0 $100,000 $200,000 $300,000 $400,000 $500,000 $600,000 FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 1H25 Net Debt per Partner Net Debt per Partner No. of Partners 1H25 results For personal use only
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4.00cps 4.40cps 4.84cps 4.64cps 4.36cps 4.79cps 3.50cps 0.68cps 1.50cps 0.00cps 1.00cps 2.00cps 3.00cps 4.00cps 5.00cps 6.00cps 7.00cps 8.00cps 9.00cps FY18 FY19 FY20 FY21 FY22 FY23 FY24 Monthly Final Special Dividends 49 The above graph represents the dividends paid relating to the respective financial year. For example, dividends paid in FY22 relating to FY21 is shown in FY21 and not FY22. FY17 (IPO) FY18 FY19 FY20 FY21 FY22 FY23 FY24 Total Underlying attributed NPATA $2,262,219 $4,325,976 $3,193,208 $3,937,677 $5,114,832 $6,296,954 $5,403,346 $8,036,604 Weighted average no. of shares 45,495,518 45,495,923 45,496,894 45,418,414 45,142,289 45,000,000 45,000,000 45,000,000 EPS (cents per share) 4.97 9.51 7.02 8.67 11.33 13.99 12.01 17.84 Ordinary Dividends (cents per share) N/A 4.00 4.40 4.84 5.32 5.86 4.79 3.50 32.71 Total Dividends (cents per share) N/A 4.00 4.40 5.39 7.02 8.17 4.79 3.50 37.27 Dividend payout ratio N/A 42.1% 62.7% 62.2% 62.0% 58.4% 40.0% 19.6% 5.39cps 7.08cps 8.17cps 4.40cps 4.00cps Special div • Since IPO in June 2017, the Company has consistently paid out dividends growing at >10% per annum • The Company has paid out monthly dividends from Jan- 21 to Feb-24, to demonstrate the cash generative ability of KPG and to attract a quality shareholder group that understood the Company’s approach to business. • On 5 February 2024, the Company announced that it will cease dividend payments to allow the Company to better allocate and invest its capital into growing opportunities. No dividends have been paid since February 2024. • As a result of the above as well as to complete the acquisition of the accounting firms in California, the final dividend for FY23 of 1.65 cents was not paid. Special div Special div 4.79cps 3.50cps Dividend payments ceased in Feb 2024 >10% p.a. growth in Ordinary Dividends for 5 years in a row 1H25 results $amount For personal use only
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KPGHL & Controlled Entities ("Group") 1 2 3 4 5 6 7 P&L and Cashflow FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 CAGR Revenue $30.2 $39.5 $40.0 $45.5 $48.9 $64.9 $86.5 $108.1 20.0% Underlying EBITDA (pre AASB 16) $8.7 $14.5 $10.9 $13.5 $16.0 $20.0 $19.7 $30.0 19.3% Margin % 28.9% 36.6% 27.2% 29.6% 32.6% 30.8% 22.7% 27.8% Underlying NPATA $7.3 $11.5 $8.8 $10.1 $11.6 $14.2 $13.6 $21.3 16.5% Margin% 24.2% 29.2% 22.1% 22.3% 23.7% 21.8% 15.7% 19.7% NPATA $1.5 $10.6 $7.9 $11.0 $11.8 $15.5 $15.0 $19.1 Dividends & Distributions Paid -$7.1 -$5.2 -$6.7 -$10.5 -$8.4 -$9.9 -$12.7 -$11.0 Cash From Operations (CfO) $6.9 $6.6 $10.0 $14.3 $15.1 $17.6 $19.5 $20.2 16.5% Owners' Earnings (CfO - Maint. Capex) $6.6 $6.3 $9.7 $12.2 $12.8 $14.0 $14.9 $19.5 16.7% Gearing (Net Debt / Underlying EBITDA) 1.3x 0.8x 1.3x 1.0x 0.8x 1.4x 1.6x 1.3x Cash Conversion (Operating Cash Flow / EBITDA) 269.6% 63.5% 116.8% 97.3% 93.5% 83.3% 94.4% 96.9% Equity Partners 36 39 40 44 53 62 78 96 15.0% Revenue per Equity Partner (Trailing 12 months) $0.8 $1.0 $1.0 $1.0 $0.9 $1.0 $1.1 $1.1 Balance sheet 30-Jun-17 30-Jun-18 30-Jun-19 30-Jun-20 30-Jun-21 30-Jun-22 30-Jun-23 30-Jun-24 Lockup (Debtors + WIP)1 $7.8 $10.1 $7.6 $6.9 $6.8 $11.6 $14.1 $18.0 Net Debt $11.7 $11.4 $14.7 $15.2 $15.7 $31.4 $39.9 $45.2 Total Equity $19.8 $24.1 $24.1 $22.9 $25.2 $34.0 $35.5 $52.4 Return on Equity2 36.9% 47.8% 36.6% 44.2% 46.0% 41.7% 38.4% 40.7% Return on Invested Capital3 22.9% 31.2% 22.7% 26.1% 27.6% 22.3% 20.0% 24.8% Days Lockup4 94.2 93.3 69.6 55.2 51.1 55.8 48.1 56.1 Equity Ratio (Equity / Total Assets)5 46.7% 54.2% 48.7% 39.7% 37.2% 34.6% 26.8% 32.9% KPGHL ("Parent") P&L and Cashflow FY17 FY18 FY19 FY20 FY21 FY22 FY23 FY24 CAGR Underlying NPATA $3.4 $4.3 $3.2 $3.9 $5.1 $6.3 $5.4 $8.0 12.9% Owners' Earnings (CfO) $3.4 $4.3 $3.1 $3.9 $5.0 $6.3 $6.0 $7.8 12.7% Earnings per share (Underlying NPATA) (cents) 7.57 9.51 7.02 8.67 11.33 13.99 12.01 17.86 12.7% Dividends Per Share 0.00 4.00 4.40 4.84 7.08 7.98 4.79 3.50 Balance sheet 30-Jun-17 30-Jun-18 30-Jun-19 30-Jun-20 30-Jun-21 30-Jun-22 30-Jun-23 30-Jun-24 Return on Equity2 29.5% 29.1% 21.5% 24.8% 28.5% 30.4% 26.3% 35.5% Return on Invested Capital3 21.3% 21.6% 16.2% 21.9% 27.4% 30.5% 24.4% 31.5% Metrics since IPO – Full Year 50 1 Lockup – calculated as the total of trade and other receivables, accrued income less contract liabilities 2 Return on Equity – calculated as the Underlying NPATA / Total Equity 3 Return on Invested Capital – calculated as (Underlying NPATA + Interest) / (Total Equity + Debt) 4 Days Lockup – calculated as lockup divided by revenue multiplied by 365 5 Equity Ratio– calculated as Equity / Total Assets. 1H25 results For personal use only