Praemium Ltd · ASX:PPS
Praemium — H1 FY2015 Earnings Presentation
15 slides from Praemium's earnings presentation, Feb 20, 2015
Slide 1: FY2015 Half-year results
FY2015 Half-year results 20 February 2015
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 (20 February 2015). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for i
Slide 3: 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 Europe & Asia Footprint • Over 150 staff • Wealth management software Services • Over 700 wealth management clients covering $80 billion
Slide 4: What we do
What we do Portfolio Non-custodial portfolio administration system Admin Record, monitor and report investments (V-Wrap) Web based, with Australian-based clientele Software as a Service CRM*- client centric financial planning Financial Planning Intuitive, flexible, efficient (WealthCraft)
Slide 5: SMA next evolution of platforms
SMA next evolution of platforms Platform progression SMA’s expansion Significantly increased awareness among financial advisers Considerable increase in demand for managed account solutions Large institutional wrap platforms announcing Managed plans to enter the SMA space Accounts Praemium well plac
Slide 6: Record fund inflows
Record fund inflows 400 3,200 Gross Platform Inflows Funds on Platform 350 ($m) 2,800 ($m) 300 2,400 250 Aust 2,000 Aust Int Int 200 1,600 150 1,200 100 800 50 400 - - 12, 12, 12, 12, 13, 13, 13, 13, 14, 14, 14, 14, 12, 12, 12, 12, 13, 13, 13, 13, 14, 14, 14, 14, Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4
Slide 7: Excellent start for SIM
Excellent start for SIM Assets under management (SIM)* Smart Investment Management (SIM) ($Am) Highly experienced team in multi-asset portfolio construction Team hired November 2013 and first models 76 84 launched February 2014 AUS models Over 3 years experience running models on International model
Slide 8: V-Wrap returning to growth
V-Wrap returning to growth Portfolio administration (V-Wrap) Westfield story Continuing improvements driving Westfield (WDC) restructure on 26 growth back into V-Wrap (6% annual June 2014 increase) Complex corporate action created 2 stapled securities Leveraging our strengths of account Final
Slide 9: Revenue growth of 20%
Revenue growth of 20% Product Revenue 12.0 ($m) Compared with H1 FY2014 10.0 Revenue up 20% to $10.9 million 8.0 SMA revenue up 28% to $3.6 million 6.0 WealthCraft $0.6 million Portfolio Services of $5.7 million, with major 4.0 contract renewal effective from November 2014 to flow into H2 FY2015 2.0
Slide 10: Maiden underlying profit
Maiden underlying profit PRAEMIUM H1 H2 H1 ($m) FY14 FY14 FY15 REVENUE 9.1 9.9 10.9 Operations (2.2) (2.6) (2.6) Gross margin 6.9 7.3 8.3 GM % 76% 74% 76% Building future IP Information Technology (2.1) (2.3) (2.4) Sales & Marketing (2.0) (2.0) (1.9) Planning to increase General & Admin (3.0) (3.2)
Slide 11: Delivering operating leverage in H1
Delivering operating leverage in H1 Revenue Revenue vs Expenses EBITDA Scalable business model 12.0 1.5 ($m) Recurring revenue streams from 10.0 Revenue 1.0 subscription and asset based pricing EBITDA 8.0 0.5 R&D fully expensed 6.0 0.0 In comparison to H1 FY14: • Revenue: $1.8 million increase (20%)
Slide 12: Now operating cash generating
Now operating cash generating 2,000 Operating Cashflow ($000) 1,500 Positive operating cashflow in 9 1,000 of the last 11 quarters Low capex spend 500 No debt - Solid cash reserves to progress (500) strategic initiatives (1,000) H2 FY12 H1 FY13 H2 FY13 H1 FY14 H2 FY14 H1 FY15 Cash at 31 December 201
Slide 13: Strategic focus
Strategic focus Integrated software solutions Solutions for our financial services clients Client centric approach through WealthCraft Wealth Best in class investment monitoring & reporting V-Wrap SMSF Craft Adding SMSF compliance and accounting Global SMA player A differentiated platform stra
Slide 14: Global, scalable business model
Global, scalable business model Important product releases in 2015 SMA platform pipeline very solid and inflows expected to continue to expand WealthCraft momentum to accelerate with release of full product suite in 2015 Launch of SMSF compliance and reporting tools a catalyst for long-term growth o
Slide 15: Questions?
Solid start in Australia Questions? Administration Growing Risk Profile & Strategies Asian presence Transaction & Reporting Engine SMSF Huge Global Compliance opportunity 15