Praemium Ltd · ASX:PPS
Praemium — FY2014 Earnings Presentation
21 slides from Praemium's earnings presentation, Aug 27, 2014
Slide 1: FY2014 Annual Results Presentation
FY2014 Annual Results Presentation August 2014
Slide 2: Disclaimer
Disclaimer 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 (27 August 2014). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for inv
Slide 3: Agenda
Agenda Overview & strategy FY2014 results Looking forward 3
Slide 4: Who we are
Who we are • 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 wealth management clien
Slide 5: What we do
What we do Portfolio Non-custodial portfolio administration system Admin Record, monitor and report investments (V-Wrap) Web based, with Australian-based clientele Software as a Service CRM*- client centric financial planning Financial Planning Intuitive, flexible, efficient (WealthCraft)
Slide 6: Compelling business model
Compelling business model Economics Technology Recurring revenue In-house proprietary technology Software services – subscription Web based from the outset based Unique account reconstruction engine SMA – based on funds on platform Enhanced by a thorough corporate actions Scalable operations
Slide 7: SMA a better way
SMA a better way Platform progression SMA’s advantages SMA Managed Direct Funds Shares Tax efficient ✔ X ✔ Managed Accounts Individual Transparent ✔ X ✔ Platforms investment Wrap (SMA, IMA, products Platforms MDA)* Lower brokerage costs ✔ N/A X (i.e. insurance bonds, retail managed funds…) Customisa
Slide 8: Software services
Software services V-Wrap WealthCraft Best-in-class portfolio administration New generation financial planning system system • Client-centric approach with CRM at the core • Non custodial • Built around Microsoft Dynamics CRM and • Links with all Australian stock brokers Office 365 • Unique account r
Slide 9: Agenda
Agenda Overview & strategy FY2014 results Looking forward 9
Slide 10: FY2014 - Key achievements
FY2014 - Key achievements 28% increase in revenue Showed strong growth in SMA inflows onto platform Maiden year of positive operating cash flow Established an in-house investment management team in London Delivered significant improvements to UK client service operations Launched a new retail supera
Slide 11: Improvement of key metrics
Improvement of key metrics Results Summary PRAEMIUM GROUP FY2014 FY2013 Change Change $000 $000 $000 % Revenue 18,032 14,095 3,937 28% Expenses 18,780 15,366 3,414 22% EBIT (underlying)* (748) (1,271) 523 41% NPBT (848) (353) (495) (140%) Cash 8,562 8,061 501 6% Net Assets 13,998 15,912 (1,914) (12%
Slide 12: Revenue growth of 28%...
Revenue growth of 28%... Product Revenue ($m) Highlights 20.0 Revenue up 28% to $18 million SMA revenue up 64% over prior year to $6.3 million WealthCraft gaining traction in Australia market 10.0 FY14 WealthCraft also includes project- related fees for the Dah Sing Bank project Portfolio
Slide 13: ...moving closer to breakeven
…moving closer to breakeven EBITDA Quarterly Operating Cashflow ($m) ($000) 0 1,000 -1 500 -2 -3 - -4 (500) -5 -6 (1,000) 12 Q2 12 Q3 12 Q4 13 Q1 13 Q2 13 Q3 13 Q4 14 Q1 14 Q2 FY11 FY12 FY13 FY14 Revenue growth supported Closing cash $8.56 million business investment Positive operating cash in 7 of
Slide 14: Record high for SMA
Record high for SMA 350 Gross Platform Inflows 2,500 Funds on Platform ($m) ($m) 300 2,000 250 International International Australia 200 Australia 1,500 150 1,000 100 500 50 - - 12, 12, 12, 12, 13, 13, 13, 13, 14, 14, 12, 12, 12, 12, 13, 13, 13, 13, 14, 14, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q1 Q2 Q3 Q4
Slide 15: Portfolio Services highlights
Portfolio Services highlights Summary Highlights Praemium continued to service key Revenue up 8% to $10.8 million institutional clients in FY14: V-Wrap portfolio numbers up 1% Tax tools for E*Trade to 45,566 Platform technology for Powerwrap V-Wrap portfolios fully integrated with WealthCr
Slide 16: WealthCraft highlights
WealthCraft highlights Revenue up 570% to $0.9 million Strong growth in WealthCraft subscriber licences across Asia & Australia Signed up Hong Kong based Dah Sing Bank to WealthCraft Integration with V-Wrap driving cross selling opportunities Further financial planning modules to come in FY1
Slide 17: Approaching inflexion point
Approaching inflexion point PRAEMIUM ($m) FY11 FY12 FY13 FY14 REVENUE 13.0 13.0 14.9 19.0 Increasing recurring revenue Operations (4.7) (3.7) (3.8) (4.8) Gross margin 8.3 9.3 11.1 14.2 GM % 64% 72% 74% 75% Improving margins Information Technology (3.8) (3.2) (3.6) (4.4) R&D fully expensed Sales & Ma
Slide 18: Agenda
Agenda Overview & strategy FY2014 results Looking forward 18
Slide 19: Company is now on track
Company is now on track F14 F13 Revenue growth of 28% Two small acquisitions Milestone win for F12 completed: WealthCraft in banking New board and space management team • Vertical integration of the Australia SMA UK operational Major cost reduction (replaced BlackRock as improvements in place and pr
Slide 20: Forward strategy
Forward strategy Enhance our core product Protect & grow existing V-Wrap base SMSF compliance and reporting to augment V-Wrap Wealth V-Wrap SMSF WealthCraft front end plus a new Craft mobile/tablet-compatible investor portal A complete integrated solution A differentiated platform strategy to
Slide 21: In summary
In summary Key strategic building blocks now in place Recurring revenues from our SMA investment platform will continue to grow WealthCraft sales to expand globally as we release new software functionality Launch of SMSF compliance and reporting tools a catalyst for long-term growth of V-Wrap Buildi