Praemium Ltd · ASX:PPS
Praemium — H1 FY2014 Earnings Presentation
22 slides from Praemium's earnings presentation, Feb 24, 2014
Slide 1: FY2014 Half-year results
For personal use only FY2014 Half-year results 24 February 2014
Slide 2: Disclaimer
Disclaimer For personal use only The material contained in this document is a presentation of general information about the Praemium Group’s activities current as at the date of this presentation (24 February 2014). It is provided in summary and does not purport to be complete. You should not rely u
Slide 3: Agenda
Agenda For personal use only Overview 1H, F14 results Looking forward 3
Slide 4: Who we are
Who we are For personal use only • Company founded in 2001 ASX Listed • Listed on Australian Stock Exchange (ASX) in 2006 • Head office in Melbourne, Australia Global • Locations across London, Jersey, Hong Kong & Footprint Shenzhen • Over 150 staff • Wealth management software Services • Over 700 w
Slide 5: What we do
What we do For personal use only Software Investment services platform Helping wealth Investment managers provide administration efficient financial services utilising planning and portfolio Separately Managed administration Account (SMA) services to investors technology 5
Slide 6: Key products
Key products For personal use only Built around Microsoft Dynamics CRM Financial Planning Client management, workflows, financial plans (WealthCraft) Fully integrated solution for advisers Software services Portfolio Web-based portfolio administration system Admin Record, monitor and repor
Slide 7: Compelling business model
Compelling business model For personal use only Scalable proprietary investment Best-in-class portfolio administration platform technology • Account reconstruction and thorough corporate actions capabilities - we always get it right • Significant competitive differentiator Global SMA provider • Uniq
Slide 8: Inherent benefits of SMA
Inherent benefits of SMA For personal use only SMA Managed Direct Shares Funds Tax efficient ✔ X ✔ Transparent ✔ X ✔ Lower brokerage costs ✔ N/A X Customisable/flexible ✔ X ✔ Access to professional managers ✔ ✔ X Regulatory threshold Beneficial ownership ✔ X ✔ An SMA allows wealth managers to implem
Slide 9: Aus market to grow significantly
Aus market to grow significantly For personal use only Superannuation assets expected to grow from $1.6 trillion to $4.0 Australia market has considerable trillion in 10 years 1 growth potential: 8,000 Superannuation assets 1 • Platform assets hold $510 billion, 1997 - 2033 ($bn) of which Praemium h
Slide 10: Agenda
Agenda For personal use only Overview 1H, F14 results Looking forward 10
Slide 11: Key highlights in H1
Key highlights in H1 For personal use only Strong growth in Australian SMA 70% annual growth to $1.2 billion funds on platform Expanded asset classes to provide the full asset allocation spectrum to managers Key strategic gains for international SMA First major international bank client Laun
Slide 12: SMA driving growth
SMA driving growth For personal use only Revenue up 30% on pcp AUS earnings growth from SMA 10,000 4.0 ASIA Recurring revenue Underlying EBITDA by Segment UK ($000) ($m) AUS 3.0 2.0 H1 FY13 H2 FY13 H1 FY14 1.0 5,000 0.0 (1.0) (2.0) - (3.0) H1 FY13 H2 FY13 H1 FY14 AUS UK ASIA Corporate 12
Slide 13: EBITDA improvement
EBITDA improvement For personal use only H1 H1 PRAEMIUM ($m) AUS UK ASIA Corporate FY14 FY13 External Revenue 7.2 1.1 0.0 - 8.3 6.5 Other Income 0.5 0.3 - - 0.8 0.1 Revenue & other income 7.7 1.4 0.0 - 9.1 6.6 Employee Expenses (3.5) (2.8) (0.6) (0.1) (7.0) (5.2) Operating Expenses (1.0) (0.9) (0.1)
Slide 14: Australia 2013 – SMA's tipping point
Australia 2013 – SMA’s tipping point For personal use only Significantly increased interest in SMAs in 2013 Particularly from institutional organisations Praemium received a considerable increase in sales enquiries A significant share of which were converted in the second half of 2013 Drivers
Slide 15: International SMA refitted for growth
International SMA refitted for growth For personal use only Revamped the business model Secured several major signups Significantly improved client services Signed up our first international bank Consolidated operational processes to the platform in December 2013 Implemented a major upgrade
Slide 16: SMA growth strategy is evident
SMA growth strategy is evident For personal use only 10.0 PPS Revenue Contribution Portfolio admin revenue growth ($m) from strengthened product features Strong growth in SMA revenue from: • Acquisition of Aus platform from 5.0 BlackRock • Opening of Jersey office to extend to ex-UK market Increased
Slide 17: Agenda
Agenda For personal use only Overview 1H, F14 results Looking forward 17
Slide 18: Looking forward in 2014
Looking forward in 2014 For personal use only Significant investment to address Australian superannuation market Full launch of SMSF compliance and reporting to augment V-Wrap and leverage existing client base Imminent launch of SuperSMA to address large and growing retail superannuation market
Slide 19: Adding value to SMSFs…
Adding value to SMSFs… For personal use only Investment admin for SMSF client base (~20,000 accounts) + + + + Compliant Automated ATO Member Enhanced SMSF regulatory & preparation & statements & monitoring fiduciary lodgement alerts reporting Embeds existing relationships Makes us the most compellin
Slide 20: …with a new investor portal
…with a new investor portal For personal use only 20
Slide 21: Launch of SuperSMA
Launch of SuperSMA For personal use only Existing Aus SMA with SuperSMA FUM of $1.2 billion No retail super Competitive pricing presence Improved adviser Retail super is experience typically a substantial Targets large public- proportion of offer super market platform FUM Considerable Praemium is in
Slide 22: Questions?
For personal use only Questions? 22