Praemium Ltd · ASX:PPS
Praemium — H1 2017 Earnings Presentation
18 slides from Praemium's earnings presentation, Feb 13, 2017
Slide 1: FY2017 half-year results: Delivering our growth strategy
For personal use only FY2017 half-year results Delivering our growth strategy 13 February 2017
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 (13 February 2017) and is supplementary to the Group’s financial results released to the ASX on 13 Febru
Slide 3: Integrated technology solution
Integrated technology solution Investment Platform Portfolio administration & reporting For personal use only Asset-based pricing Subscription-based pricing Highly scalable SMA platform Non-custodial reporting portfolio administration system London platform servicing UK and offshore, including SIPP
Slide 4: Global reach, global scale
Global Globalreach, reach,global globalscale scale For personal use only Cumbria Wensley Mackay SIPP London Praemium UK platform Armenia Software development hub Shenzhen Hong Kong WealthCraft CRM Praemium Asia development hub Coventry Plum Software Jersey Praemium International platform Dubai Inter
Slide 5: First half FY2017 highlights
First half FY2017 highlights For personal use only Smartim FUA up 51% Global SMA FUA to $549 million up 29% to $5.4 billion Revenue up 23% To $16.4 million Acquired a UK EBITDA up pensions 39% provider to $2.6 million Successful onboarding of new V-Wrap institutional client Praemium client again won
Slide 6: SMA is disrupting financial services
SMA is disrupting financial services AUS platform market For personal use only (2016-2020) By 2020, Australia platform market FUA to grow*: From $672 billion to $900 billion 2020 SMA segment from $18 billion to $60 billion at 35% CAGR 2016 SMAs could deliver 75% of industry net flows SMA Platf
Slide 7: Praemium SMA – a proven market leader
Praemium SMA – a proven market leader Praemium’s SMA technology helps advice Expanding client base from strong global For personal use only businesses drive substantial efficiencies at scale pipeline driving record growth 1,000 Gross Inflows Model portfolios ($m) Strategic asset allocation aligned t
Slide 8: Australia growing strongly
Australia growing strongly Both SMA and portfolio services growing strongly For personal use only SMA market is expanding quickly now Investment in V-Wrap is paying dividends Australia SMA platform FUA up 26% to $3.5 billion Key new institutional client transition completed on Praemium continu
Slide 9: International business nearing profitability
International business nearing profitability UK strategy starting to deliver For personal use only FUM £m UK business comprises: R&E £m UK Revenue and Expenses trend 4.0 (£m) 1,200 Investment platform for the UK domestic 12% CAGR market and the international ex-pat market 3.5 51% CAGR (covering Eu
Slide 10: Investment management team making strides
Investment management team making strides Capturing more of the value chain For personal use only Smart Investment Management FUA ($m) In-house investment management Highly credentialed team in risk-weighted multi-asset 600 strategies Models Recently invited to the judging panel for the prestigi
Slide 11: Next area of strategic growth
Next area of strategic growth UK SIPP (Self Invested Personal Pensions) market Wensley Mackay acquisition For personal use only Acquisition details Wensley Mackay founded in 1982 and based in Cumbria, England 270,000 SIPP provider with £50 million in assets 500,000 Full SIPPs Regulated by the
Slide 12: H1 FY17 financial results
H1 FY17 financial results For personal use only Group Financial Results H1, FY16 H1, FY17 Maintaining growth ($m) ($m) Revenue 14.7 17.2 23% underlying growth (excl R&D) Cost of operations (3.0) (4.2) Higher product commissions Gross margin 11.7 13.0 GM % 80% 76% Expenses: Information Technology (3.
Slide 13: H1 FY17 revenue by segment
H1 FY17 revenue by segment 23% underlying revenue growth* For personal use only By product… By region… 18.0 Product Revenue 18.0 Segment Revenue ($ million) ($ million) Portfolio Services SMA 12.0 AUS 12.0 Planning software UK Asia 6.0 6.0 - - H1 FY14 H2 FY14 H1 FY15 H2 FY15 H1 FY16 H2 FY16 H1 FY17
Slide 14: H1 FY17 EBITDA by half
H1 FY17 EBITDA by half Sixth consecutive half of profit growth For personal use only H1 H1 Change Change $m FY16 FY17 $ % Maintaining profit growth EBITDA (pre R&D) 0.7 1.8 1.1 138% EBITDA pre R&D up 138% to $1.8 million UK R&D incentive 1.1 0.8 (0.3) (30%) Increase in EBITDA margin to 15% EBITD
Slide 15: H1 FY17 EBITDA by segment
H1 FY17 EBITDA by segment Significant improvement in the international business For personal use only EBITDA uplift of $0.8m comprising: H1 FY17 $m AUS UK ASIA Corp Total UK $0.5m improvement Asia $0.3m improvement Revenue 11.3 5.8 0.1 17.2 Expenses (6.7) (6.5) (0.9) (0.5) (14.6) Australia EBITD
Slide 16: Looking forward – FY2017
Looking forward – FY2017 Excellent start to FY17 with record inflows in the first half For personal use only International Australia platform Asia platform Transition from wrap platforms to Expansion of distribution Major Hong Kong-based SMA to continue to drive growth resources in the UK, Cha
Slide 17: Appendix: Cashflow
Appendix: Cashflow For personal use only $m H1 FY16 H1 FY17 Operating cashflows Operating cashflow 0.2 2.7 Now tax paying on AUS profits Tax paid - (2.3) (FY16 in full, plus FY17 provisional) One-off costs (0.2) (0.3) One-off costs include restructure payments Net Operating Cashflow 0.0 0.1 Inve
Slide 18: Appendix: Balance sheet
Appendix: Balance sheet For personal use only $m Jun’16 Dec’16 Solid balance sheet to fund growth $8.2 million in cash reserves following Wensley Cash 10.4 8.2 Mackay acquisition and tax payments Receivables 5.3 6.1 Increase in receivables from higher H1 billing, plus UK R&D accrual Intangibles