Praemium Ltd · ASX:PPS
Praemium — Shareholder Meeting (November 2009)
44 slides from Praemium's shareholder meeting presentation, Nov 23, 2009
Slide 1: Praemium AGM presentation announcement
For personal use only 23 November 2009 Please see the attached presentation to be given by Praemium’s Chairman and Group CEO at the Company’s AGM to be held at 11am this morning. A Boardroom Radio Broadcast with audio recorded at today’s meeting will be released tomorrow. About Præmium: Præmium supp
Slide 2: Annual General Meeting
For personal use only ANNUAL GENERAL MEETING 23 November 2009
Slide 3: Agenda
Agenda For personal use only Chairman’s Report Group CEO’s Report Business of the Meeting Financial Report Election of Directors Remuneration Report Appointment of Auditor Directors and Employee Benefits Plan Any Other Business 2
Slide 4: Chairman's Report
For personal use only Chairman’s Report Don Stammer 3
Slide 5: Our role and strategy
Chairman’s Report Our role and strategy For personal use only We are specialists in the provision of portfolio management services to accountants, financial planners, stockbrokers, SMSFs and large institutions. Our strategy is to continue to expand our market share in Australia and to become a signi
Slide 6: Key achievements: Australia
Chairman’s Report Key achievements: Australia For personal use only Despite difficult conditions in investment markets, we: Widened the composition of our V-Wrap client base Increased the number of financial planners signed up for the SMA Executed the agreement with E*TRADE Australia Including a mat
Slide 7: Key Achievements: UK
Chairman’s Report Key Achievements: UK For personal use only Despite difficult conditions in investment markets, we: Achieved regulatory authorisation for the SMARTfund Launched SMARTfund and dps Select Restructured our business to focus on sales, implementation and client support to reduce net cost
Slide 8: Key Financial Details
Chairman’s Report Key Financial Details For personal use only FY09: Revenue of $8.8m (+25% on FY08) Net loss for the group of $10.92m EBITDA of the Australian operating business, before reallocation of corporate costs, rose by $1m to $2.5m FY10-Q1: Net receipts from clients of $2.938m (+61% on FY09
Slide 9: Looking Ahead
Chairman’s Report Looking Ahead For personal use only Positive indicators in both Australia and the United Kingdom: Confidence has been returning to investment markets Investors are more cost conscious Move away from product commissions to fee-for-service We expect strong revenue growth as Praemium’
Slide 10: Our Goals for the Next Year
Chairman’s Report Our Goals for the Next Year For personal use only To achieve strong growth in revenues from: Further developing our service offerings in Australia Seeking and supporting new operators (including Powerwrap) to gain access to mainstream financial planners Increasing distribution and
Slide 11: Group CEO's Report
For personal use only Group CEO’s Report Arthur Naoumidis 10
Slide 12: V-Wrap continues to increase its footprint
For personal use only Measures As at % change 30 Sept 09 since 30 Sept 08 Number of Services 488 2% ↑ Committed Portfolios 41,043 5% ↑ Funds under Administration $36.7 bn 31% ↑ Revenue September Q/E $2,362 k 21% ↑ Highlights since last AGM: Powerwrap Nov ’08 Pricing changes Nov ’08 E*TRADE Australia
Slide 13: Committed Portfolios
Committed Portfolios For personal use only Growth in V-Wrap Committed Services & Portfolios 550 45000 500 40000 Committed Portfolios 450 35000 Committed Services 400 30000 350 300 25000 250 20000 200 15000 150 10000 100 5000 50 0 0 Number of Services Number of Portfolios Consistent growth despite di
Slide 14: V-Wrap Outlook
V-Wrap Outlook For personal use only Praemium targets: 4,000 - 6,000 new portfolios p.a. from existing clients At least one large (3,000+ portfolios or portfolio equivalents) new institutional client p.a. Accountants are the driver for growth in 2010 with SMSFs a particular focus Pressure to shift a
Slide 15: p-Desktop Highlights & Outlook
Highlights & Outlook For personal use only A supporting product to V-Wrap and SMA Cost effective solution for market data and trading services 200 services have deployed p-Desktop 35 services with ‘live streaming’ version 54 users with Portfolio Review Tools Financial planning focus Portfolio Review
Slide 16: SMA Highlights
Highlights For personal use only As at 30 June 2009: 184 service sign-ups (up from 143 as at 30 June 2008) FUM exceeds AUD$400+ million* Flat lined during GFC Started growing in April 2009 Grew 30% in past 5 months Powerwrap will be 2nd SMA operator *As at 30 September 2009 SMA FUM is now growing as
Slide 17: SMA Outlook
Outlook For personal use only BlackRock growth expected to accelerate Better market conditions expected to drive growth – both in inflows and improved valuations Powerwrap SMA targeted to go ‘live’ next quarter Extensive pre-launch interest received from potential clients Product extension - Strateg
Slide 18: United Kingdom SMARTfund Highlights
United Kingdom SMARTfund Highlights For personal use only 3 SMARTfunds are now ‘live’: Praemium’s SMARTfund-branded Old Broad Street Research (“OBSR”) OBSR is one of the most respected fund rating agencies by IFAs in the UK Asset Allocation provided by Barrie & Hibbert, a global market leader in sto
Slide 19: United Kingdom dps Highlights
United Kingdom dps Highlights For personal use only 5 dps offerings are now ‘live’: Price Bailey (7 offices - UK and Guernsey) - a discretionary firm which uses in-house models Succession Advisory Services (SAS) Signed up to dps Select as the platform through which each adviser firm member will be a
Slide 20: Revenue model
Revenue model For personal use only 50 basis points entry fee 25 basis points ongoing Up to £250 entry fee Up to 35 basis points ongoing Operating Very scalable offerings Costs Net current costs (approximately $4.6m p.a.) indicative for future Scalable offerings with strong revenue models 19
Slide 21: United Kingdom Outlook
United Kingdom Outlook For personal use only Extensive interest being generated in the UK market Over 400 qualified leads In the order of 50 leads advanced discussion stage Our two key offerings are well positioned within the UK regulatory environment Transition to fee based planning by 2012 TCF – “
Slide 22: United Kingdom Outlook: platform market
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 23: Summary Outlook for 09-10
Summary Outlook for 09-10 For personal use only Significant improvement in EBITDA expected due to: Revenue growth from E*TRADE Australia contract Organic V-Wrap portfolio growth Full year effect of 20% V-Wrap price increase commencing from November 2008 Growth in Australian SMA market – BlackRock/Po
Slide 24: Questions
For personal use only Questions 23
Slide 25: Business of the Meeting
For personal use only Business of the Meeting 24
Slide 26: Consideration of Accounts and Reports
Consideration of Accounts and Reports For personal use only To receive the Financial Report, Directors’ Report and Independent Auditor’s Report for Praemium and its controlled entities for the year ended 30 June 2009 (No vote required) 25
Slide 27: Re-Election of Director
Re-Election of Director Resolution 1 For personal use only To consider, and if thought fit, to pass the following ordinary resolution: 1. That Mr John Bryson, who retires by rotation, is re-elected as a director of Praemium Limited 26
Slide 28: Re-Election of Director: Proxy Votes
Re-Election of Director Proxy Votes/Direct Votes For personal use only received prior to meeting Resolution 1 To re-elect Mr John Bryson as a director – For 56,818,247 (97.10%) – Open 1,668,304 (2.85%) – Against 28,000 (0.05%) – Abstain 0 27
Slide 29: Re-Election of Director
Re-Election of Director Resolution 2 For personal use only To re-elect Ms Cathryn Nolan as a director 28
Slide 30: Re-Election of Director Resolution (cont.)
Re-Election of Director Resolution 2 (cont.) For personal use only To consider, and if thought fit, to pass the following ordinary resolution: 2. That Ms Cathryn Nolan, who retires by rotation, is re-elected as a director of Praemium Limited 29
Slide 31: Re-Election of Director: Proxy Votes
Re-Election of Director Proxy Votes/Direct Votes For personal use only received prior to meeting Resolution 2 To re-elect Ms Cathryn Nolan as a director – For 56,765,247 (97.01%) – Open 1,678,304 (2.87%) – Against 71,000 (0.12%) – Abstain 0 30
Slide 32: Re-Election of Director
Re-Election of Director Resolution 2 For personal use only To re-elect Ms Cathryn Nolan as a director 31
Slide 33: Remuneration Report Resolution
Remuneration Report Resolution 3 For personal use only To consider, and if thought fit, to pass the following ordinary resolution: That the Remuneration Report for the financial year ended 30 June 2009 (set out in the 2009 Annual Report) be adopted. Non-binding vote 32
Slide 34: Remuneration Report: Proxy Votes
Remuneration Report Proxy Votes/Direct Votes For personal use only received prior to meeting Resolution 3 To adopt the Remuneration Report – For 50,635,680 (95.83%) – Open 1,678,304 (3.18%) – Against 525,709 (0.99%) – Abstain 59,000 33
Slide 35: Remuneration Report Resolution
Remuneration Report Resolution 3 For personal use only That the Remuneration Report be adopted 34
Slide 36: Appointment of Auditor Resolution
Appointment of Auditor Resolution 4 For personal use only To consider, and if thought fit, to pass the following ordinary resolution: That, for the purposes of section 327B(1)(b) of the Corporations Act 2001 (Cth) and for all other purposes, Grant Thornton Audit Pty Ltd who, having been nominated by
Slide 37: Appointment of Auditor: Proxy Votes
Appointment of Auditor Proxy Votes/Direct Votes For personal use only received prior to meeting Resolution 4 To appoint the auditor – For 56,813,747 (97.09%) ( %) – Open 1,678,304 (2.87%) – Against 22,500 (0.04%) – Abstain 0 36
Slide 38: Appointment of Auditor Resolution
Appointment of Auditor Resolution 4 For personal use only That Grant Thornton Audit Pty Ltd be accepted as the auditor of the Company (Voting restrictions apply in respect to this resolution) 37
Slide 39: Approval of amendments to the Directors and Employee Benefits Plan
Approval of amendments to the Praemium Directors and Employee For personal use only Benefits Plan Resolution 5 To consider, and if thought fit, to pass the following ordinary resolution: That, for the purposes of Exception 9 of ASX Listing Rule 7.2, section 260C (4) of the Corporations Act 2001 (Cth
Slide 40: Employee Benefits Plan: Proxy Votes
Approval of amendments to the Praemium Directors and Employee For personal use only Benefits Plan Proxy Votes/Direct Votes received prior to meeting Resolution 5 To approve amendments to the Praemium Directors and Employee Benefits Plan – For 19,479,318 (90.18%) – Open 1,471,414 (6.81%) – Against 65
Slide 41: Employee Benefits Plan approval
Approval of amendments to the Praemium Directors and Employee For personal use only Benefits Plan Resolution 5 That the Praemium Directors and Employee Benefits Plan is approved. (Voting restrictions apply in respect to this resolution) 40
Slide 42: Any Other Business
For personal use only Any Other Business 41
Slide 43: 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 44: Annual General Meeting
For personal use only ANNUAL GENERAL MEETING 23 November 2009