Diverger : Investor Presentation

onlyuse ersonalASX: DVR

Diverger Limited

Preliminary Unaudited Results Presentation

Year ended 30 June 2022

Nathan Jacobsen

Managing Director

Michael Harris

Chief Financial Officer

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Divergers create positive change

We step outside our comfort zone to create more possibilities for our clients.

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Disclaimer

The information contained in this presentation is not intended to be exhaustive and must be considered in conjunction with all other publicly available information disclosed by Diverger Limited to the Australia Securities Exchange from time to time.

This presentation does not take into consideration the investment objectives, financial situation or circumstances of any particular investor.

Certain statements in the presentation relate to forward-looking statements. These forward-looking statements are not historical facts, but rather are based on Diverger's current expectations, best estimates and projections, with inherent assumptions and beliefs.

Indications of, and guidance or outlook on future earnings, distributions or financial position or performance are also forward-looking statements. These statements are not guarantees of future performance and are subject to known and unknown risks, uncertainties and other important factors, some of which are beyond the control of Diverger, are difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements.

Diverger cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Diverger only as at the date of this presentation. Diverger does not give any representation, assurance or guarantee that actual outcomes or events expressed or implied in any forward-looking statements in this presentation will not differ materially from these forward-looking statements.

The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. Diverger has no obligation to disclose 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.

This presentation has not been subject to auditor review.

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Contents

Building a market leading service platform for Advice and Accounting firms

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01	Overview & Key Achievements
02	Vision & Growth strategy
03	FY22 Preliminary Results Analysis
04	Business Review
05	Financial Performance
06	Valuation Analysis
07	Corporate Information

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Diverger

At a glance

only		Clear Strategy - to become the leading service provider to advice and accounting firms
	• Consolidate scale and services to support transformation of advice and accounting services to consumers
		• Solid progress on execution, with key achievements outlined further in this presentation
		• Capacity to invest in the strategy, with $2.5m net cash after investing $3+m of capital into growth investments
		during FY22 and ongoing access to a material undrawn debt facility
		Consistent Growth1 - established, sustainable business model continuing to deliver
use		• Net Revenue from continuing operations $30.14m, up 9%
	• Attractive financial model, with 92% recurring revenue across four core products - adviser services, managed
		portfolios, membership and training
		• Substantial customer base of 155 advice firms (223 full financial advisers), 214 limited advisers and 1,346
		subscribing accounting firms
ersonal		• Managing $2.2bn of investor assets in the CARE portfolios
			Net Revenue ($m)	Up 9%					EPS (cps)	Up 35%
	32.00									12.00
						30.14							9.47
	30.00									10.00
			27.69							7.02
	28.00						8.00
	26.00									6.00
	22.43								4.30
	24.00							4.00
	22.00									2.00
	20.00									0.00
	2020	2021	2022			2020	2021	2022

1. FY22 Preliminary results unaudited

Disciplined Execution - growth achieved with improving shareholders returns

• Statutory EBITA $6.56m, up 18%, with strong alignment to cashflow from operations
• Underlying Profit (continuing operations) $7.06m, up 11%
• Earnings per Share (EPS) 9.47 cents, up 35%
• Return on Equity now 9.4%, up 45% and more than doubled in two years

			Return on Equity	Up 45%
	(NPAT/Shareholder funds)
10%					9%
8%				6%
6%
4%
4%
2%
0%
2020	5	2021	2022