Praemium Ltd · ASX:PPS
Praemium — Investor Presentation (February 2010)
25 slides from Praemium's investor presentation, Feb 2, 2010
Slide 1: Retail Broker Presentation
For personal use only Retail Broker Presentation 2 February 2010 Praemium (ASX:PPS) provides the attached presentation for the information of the market. About Praemium: Præmium Ltd (ASX:PPS) is one of Australia’s leading suppliers of online financial portfolio administration and Separately Managed
Slide 2: Investor Update, February 2010
For personal use only Investor Update February 2010 Arthur Naoumidis Group CEO
Slide 3: Disclaimer/Copyright Notices/Trademarks
Disclaimer/Copyright Notices/Trademarks For personal use only The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions investors should rely on their own examination of Praemium Limited and consult wit
Slide 4: Agenda
Agenda For personal use only Company Details Quarterly Statement Praemium Australia V-Wrap SMA Desktop Praemium UK Financial 3
Slide 5: Company Details
Company Details For personal use only Shares on issue – 207.8 million Market cap (1/2/2009) - approx. $20 million 12 month price range – $0.07 - $0.22 Cash at Bank - $7.6 million as at 31/12/2009 Register Board and Management – 19% Institutions and High Net Worth – 50% Retail – 31% 4
Slide 6: Quarterly Statement – Q2 FY10
Quarterly Statement – Q2 FY10 For personal use only Net Operating Cash flow of -$1,971K • Note that there was a reclassification of circa $400K from “other working capital” to “staff” in this quarter (see item 1.26 in 4C) Quarterly figures V-Wrap Quarter Revenue Receipts Nbr Portfolios FUA SMA FUM U
Slide 7: V-Wrap Features
V-Wrap Features For personal use only Advanced portfolio administration Equity focused – but also includes all asset types Powerful corporate actions Now includes managed fund and equity trading for financial planners Unique portfolio reconstruction architecture Good penetration – 42,596 portfolios
Slide 8: V-Wrap Markets: Accountants
V-Wrap Markets For personal use only Accountants Currently approximately 40% of our V-Wrap client base Key drivers behind this success are that V-Wrap is the only portfolio service at a tax level that provides for : Historic reconstruction functionality Complex corporate actions White labeled Market
Slide 9: V-Wrap Markets: Financial Planners and SMSFs
V-Wrap Markets For personal use only Financial Planners Currently 40% of our V-Wrap client base Key drivers are: Strong support for equities processing Managed fund trading and administration Advanced portfolio reporting Practice billing functions White labeled service for fee based planners Cements
Slide 10: V-Wrap Markets: Brokers
V-Wrap Markets – cont. For personal use only Brokers Currently ~10% of our V-Wrap portfolios Key value-add for brokers are: Underpins broker based fee for service offerings Accountant strength tax reporting Historic reconstruction processing Complex corporate actions capability E*TRADE deal Once a y
Slide 11: V-Wrap Revenue Model
V-Wrap Revenue Model For personal use only Standard Fee Base fee of $240* per portfolio Scales down on volume after 500 portfolios/client Average fee $231 per full service portfolio (ex Asgard) Asgard FUM basis point charge Significant annual fee E*TRADE Mixed fee consisting of exclusivity and servi
Slide 12: Number of Committed Portfolios and Services
For personal use only Committed Services 0 100 200 300 400 500 600 Jul-05 Oct-05 Jan-06 Apr-06 Jul-06 Oct-06 Jan-07 Committed Services Apr-07 Jul-07 Oct-07 Jan-08 Apr-08 Jul-08 Oct-08 Committed Portfolios Jan-09 Number of Committed Portfolios and Services Apr-09 Jul-09 Oct-09 0 5000 10000 15000 2000
Slide 13: V-Wrap Outlook
V-Wrap Outlook For personal use only Praemium targets: 4,000 - 6,000 new portfolios p.a. from existing clients 1,500+ new portfolios were added in December quarter Accountants are driver for growth in 2010 with SMSFs a particular focus Pressure to shift away from commission to fee- based model stand
Slide 14: SMA Features/Benefits
SMA Features/Benefits For personal use only Separately Managed Account (SMA) is: A non-unitised managed fund of equities Tax efficient – client owns underlying assets Cost efficient – only one layer of infrastructure An alternative and complementary service to Wraps A richer investment experience Re
Slide 15: SMA Highlights
SMA Highlights For personal use only Praemium/BlackRock won SMA platform of the year for 2007 and 2008 184 organisations now subscribed to BlackRock Customised Portfolio Service FUM exceeds $460 million Flat lined during GFC Started growing in April 2009 Grew 40% in past 6 months to 31/12/2009 Power
Slide 16: p-Desktop Market Data & Trading
p-Desktop Market Data & Trading For personal use only 15
Slide 17: p-Desktop Highlights & outlook
p-Desktop Highlights & outlook For personal use only A supporting product to V-Wrap and SMA Focuses on Financial Planners and Accountants Cost effective market data and trading Incorporates Portfolio Review Tools, Portfolio Planner, Enhanced Trading Effective in client retention and up-selling to V-
Slide 18: United Kingdom Highlights
United Kingdom Highlights For personal use only Praemium has 2 SMA products in UK £39 Million FUA at 31st December 2009 49 Firms have signed or currently with contract of which 18 belong to Succession SMARTfunds are: SMA managed investment structures that result in tax free status for the underlying
Slide 19: United Kingdom SMARTfund Highlights
United Kingdom SMARTfund Highlights For personal use only 3 SMARTfunds in operation Praemium’s SMARTfund-branded Old Broad Street Research (“OBSR”) OBSR is one of the most respected fund rating agencies by IFAs in the UK Foster Denovo and Allium joint venture - Sequel Foster Denovo services 20,000 i
Slide 20: United Kingdom Discretionary Platform Service (dps)
United Kingdom Discretionary Platform Service (dps) For personal use only Like Australian SMAs Licensed as a discretionary service Includes “dps Select”: A delegated discretionary platform that enables any financial planner to provide discretionary services Unique to Praemium Strong market demand fo
Slide 21: United Kingdom dps Highlights
United Kingdom dps Highlights For personal use only 5 dps offerings are in operation Price Bailey (7 offices - UK and Guernsey) - a discretionary firm which uses in-house models Succession Advisory Services (SAS) Private Equity backed aggregator of financial planners targeting 85 firms with £7+ bill
Slide 22: United Kingdom Outlook
United Kingdom Outlook For personal use only Clients currently signed up have circa £3 Billion “under influence” Extensive interest in the UK market Our two key offerings are well positioned within the UK regulatory environment Outlawing of commissions TCF – “Treat Customers Fairly” CAR – “Customer
Slide 23: United Kingdom Outlook
United Kingdom Outlook For personal use only UK platform market forecast to grow from £90 billion in 2008 to £300 billion in 2013* No incumbent Wrap platforms yet achieved scale Praemium is operating during the formation stage of the UK platform market with an advanced product set Opportunity to be
Slide 24: Group Outlook: 2010 Financial Drivers
Group Outlook 2010 Financial Drives For personal use only Significant Improvement expected due to: Revenue growth from E*TRADE contract Organic V-Wrap portfolio growth Full year effect of recent 20% V-Wrap price increase Growth in Australian SMA market – BlackRock/Powerwrap New managed fund trading
Slide 25: Presentation by Arthur Naoumidis
For personal use only Presentation by: Mr Arthur Naoumidis Praemium Ltd Level 1 406 Collins Street Melbourne Victoria 3000 Australia 24 www.praemium.com.au