Praemium Ltd · ASX:PPS
Praemium — Shareholder Meeting (November 2010)
37 slides from Praemium's shareholder meeting presentation, Nov 30, 2010
Slide 1: AGM Presentation
For personal use only AGM Presentation 30 November 2010 In accordance with the requirements of the Listing Rules, Praemium (ASX:PPS) is pleased to provide a copy of the presentation to be given by the Praemium’s Chairman, Dr Don Stammer, and its Group CEO, Mr Arthur Naoumidis at the Company’s Annual
Slide 2: Praemium 2010 Annual General Meeting
For personal use only Praemium 2010 Annual General Meeting 30 November 2010 Dr Don Stammer Chairman
Slide 3: Agenda
Agenda For personal use only Chairman’s Report Group CEO’s Report Ordinary Business Consideration of Financial Statements and Reports Items for Approval Re-election of Directors Adoption of Remuneration Report Issues of Shares and Performance Rights under existing plan to an Executive Director Any O
Slide 4: Chairman's Report: Our role and strategy
Chairman’s Report For personal use only Our role and strategy We provide online portfolio management services to accountants, financial advisers, stockbrokers, SMSFs and large institutions. Our strategy is to continue to expand our market share in Australia and to become a significant player in the
Slide 5: Key achievements: Australia
Chairman’s Report For personal use only Key achievements: Australia Despite difficult conditions in investment markets including fallout from the GFC, we: Achieved revenue growth across all service lines Increased V-Wrap’s market share with committed portfolio numbers growing by 8%* Widened our serv
Slide 6: Key achievements: United Kingdom
Chairman’s Report For personal use only Key achievements: United Kingdom Despite difficult conditions in investment markets including further fallout from the GFC, we: Increased our client base Achieved strong growth on our Funds on Platform (FOP) UK FOP = £180 million* Our two key offerings continu
Slide 7: Challenges
Chairman’s Report For personal use only Challenges It has taken longer than anticipated to gain the desired scale within our Australian and UK operations In particular, lags between clients signing up for our services and our receipt of funds have been longer than we earlier anticipated. This reflec
Slide 8: Group CEO's Report
For personal use only Group CEO’s Report 30 November 2010 Arthur Naoumidis Group CEO
Slide 9: Key Statistics: Australia & United Kingdom
Key Statistics Australia & United Kingdom For personal use only As at 30 As at 30 % change Revenue September September Model 2010 2009 Australia V-Wrap Funds under Administration $42.4 billion $36.7 billion + 15% Generally Flat $ (FUA) Average $226 per portfolio Committed Portfolios 44,279 41,043 +
Slide 10: Highlights: Australia
Highlights Australia For personal use only V-Wrap has continued to increase its footprint – as at 30 September 2010: 44,279 portfolios – a 8% increase* $42.4 billion FUA – a 15% increase* Over 17,500 SMSFs = approximately 4% of market E*TRADE: 2nd year Tax Reports for all E*TRADE active retail custo
Slide 11: Committed Services & Portfolios
For personal use only Committed Services 100 200 300 400 500 600 0 Sep-05 Dec-05 Mar-06 Jun-06 Sep-06 Dec-06 Mar-07 Jun-07 Sep-07 Dec-07 Committed Services Mar-08 Jun-08 Sep-08 Dec-08 Mar-09 Jun-09 Committed Portfolios Committed Services & Portfolios Sep-09 Dec-09 Mar-10 Jun-10 Sep-10 0 5000 10000 1
Slide 12: Outlook: Australia
Outlook Australia For personal use only Proposed Future of Financial Advice regulatory reform in 2012 stands to accelerate growth for: V-Wrap Praemium SMARTwrap Praemium SMARTwrap First launched in July 2010 ‘Live’ at the end of August 2010 Full Managed Fund trading/wrap capability, currently offeri
Slide 13: Outlook: Australia, Praemium SMARTwrap (cont...)
Outlook For personal use only Australia Praemium SMARTwrap (cont...) Supports transition from commission to fee for service 12+ firms have signed contracts in the last 12 weeks since it went ‘live’ Strong enquiry rate continues from prospective clients Increases V-Wrap’s addressable market From 10%
Slide 14: Highlights: Australia, SMA FUM
Highlights For personal use only Australia SMA FUM ($ million) SMA FUM increased by 28% to $600 $532 million * $500 Flat lined during GFC Started growing in April 2009 $400 Powerwrap will be the 2nd SMA $300 operator $200 Q1 2011 timing now locked in following Kingston Capital’s sign-up $100 $0 Jun-
Slide 15: Outlook: Australia, SMA FUM
Outlook Australia For personal use only FUM for SMA will improve with market Deployment of ‘Models of Models’ Compelling value proposition for Advisers Elimination of ongoing SOA Reduction of business risk Improved business value Strong demand from current and prospective clients Praemium SMARTwrap
Slide 16: Highlights: United Kingdom
Highlights United Kingdom For personal use only UK FOP as at 29 October 2010 = £180 million A 56% increase since 30 June 2010 Evenly spread between SMARTfund and dps Our two key offerings are well positioned within the UK regulatory environment Commission is banned from end of 2012 Strong fiduciary
Slide 17: Highlights: United Kingdom, recent sign-ups
Highlights United Kingdom For personal use only SCM Private recently selected Praemium dps Reputable wealth manager and exchanged-traded funds specialist IFAs can now use the Praemium dps to offer their clients access to SCM Private Other recent notable sign-ups Blevins Franks Pan-European Wealth Ma
Slide 18: Highlights: United Kingdom, FUM growth
Highlights United Kingdom For personal use only £180,000,000 £160,000,000 £140,000,000 £120,000,000 £100,000,000 DPS £80,000,000 SMARTfunds £60,000,000 UK Total £40,000,000 £20,000,000 £- Jul'09 Aug'09 Sept'09 Oct'09 Nov'09 Dec'09 Mar'10 Jun'10 Sep'10 FUM FUM FUM FUM FUM FUM FUM FUM FUM 17 17
Slide 19: Outlook: United Kingdom
Outlook For personal use only United Kingdom Strong growth in the UK platform market Current size is approximately £134 billion* Forecast to grow to £300+ billion by end of 2012 Compelling competitive advantages: Product, technology and regulatory Praemium is well placed to benefit from these aspect
Slide 20: Summary Outlook: Australia & United Kingdom
Summary Outlook For personal use only Australia & United Kingdom To continue with achieving strong growth in revenues from: Further enhancing our service offerings in Australia Penetrating the wider financial planning community using our SMARTwrap offering Increasing distribution and building FOP in
Slide 21: Questions
For personal use only Questions 20
Slide 22: Business of the Meeting
For personal use only Business of the Meeting 21
Slide 23: Consideration of Financial Statements and Reports
Consideration of For personal use only Financial Statements and Reports To receive the Financial Statements, Directors’ Report and the Independent Auditor’s Report for Praemium and its controlled entities for the year ended 30 June 2010. (No vote required) 22
Slide 24: Re-Election of Director
Re-Election of Director For personal use only Resolution 1 To consider, and if thought fit, to pass the following ordinary resolution: That Dr Donald Stammer, who retires by rotation, is re- elected as a director of Praemium Limited 23
Slide 25: Re-Election of Director: Proxy Votes
Re-Election of Director For personal use only Proxy Votes/Direct Votes received prior to meeting Resolution 1 To re-elect Dr Donald Stammer as a director Direct Proxy Total For 34,952,287 28,349,777 63,302,064 (54.97%) (44.59%) (99.56%) Against 25,500 37,000 62,500 (0.04%) (0.06%) (0.10%) Open Not a
Slide 26: Re-Election of Director
Re-Election of Director For personal use only Resolution 1 To re-elect Dr Donald Stammer as a director 25
Slide 27: Re-Election of Director
Re-Election of Director For personal use only Resolution 2 To consider, and if thought fit, to pass the following ordinary resolution: That Mr Robert Edgley, 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 For personal use only Proxy Votes/Direct Votes received prior to meeting Resolution 2 To re-elect Mr Robert Edgley as a director Direct Proxy Total For 34,952,287 28,314,277 63,266,564 (54.97%) (44.53%) (99.50%) Against 25,500 131,000 156,500 (0.04%) (0.21%) (0.25%) Open Not
Slide 29: Re-Election of Director
Re-Election of Director For personal use only Resolution 2 To re-elect Mr Robert Edgley as a director 28
Slide 30: Adoption of Remuneration Report
Adoption of Remuneration For personal use only Report Resolution 3 To consider, and if thought fit, to pass the following ordinary resolution: That the Remuneration Report for the financial year ended 30 June 2010 (as set out in the 2010 Annual Report) be adopted (Non-binding vote) 29
Slide 31: Adoption of Remuneration Report: Proxy Votes
Adoption of Remuneration Report For personal use only Proxy Votes/Direct Votes received prior to meeting Resolution 3 To adopt the Remuneration Report Direct Proxy Total For 33,862,287 24,853,842 58,716,129 (53.31%) (39.13%) (92.44%) Against 1,097,500 3,499,935 4,597,435 (1.73%) (5.51%) (7.24%) Open
Slide 32: Adoption of Remuneration Report
Adoption of Remuneration For personal use only Report Resolution 3 To adopt the Remuneration Report 31
Slide 33: Approval of grant of Shares And Performance Rights to an Executive Director
Approval of grant of For personal use only Shares And Performance Rights to an Executive Director Resolution 4 To consider, and if thought fit, to pass the following ordinary resolution: That, for the purposes of ASX Listing Rule 10.14, sections 208(1) and 260C(4) of the Corporations Act 2001 (Cth)
Slide 34: Approval of grant of Shares And Performance Rights: Proxy Votes
Approval of grant of Shares And Performance For personal use only Rights to an Executive Director Proxy Votes/Direct Votes Received prior to meeting Resolution 4 To approve grant of Shares and Performance Rights to Ms Cathryn Nolan in her capacity as Executive Director, General Counsel and Company S
Slide 35: Approval of grant of Shares And Performance Rights to an Executive Director
Approval of grant of For personal use only Shares And Performance Rights to an Executive Director Resolution 4 To approve grant of Shares and Performance Rights to Ms Cathryn Nolan in her capacity as Executive Director, General Counsel and Company Secretary 34
Slide 36: Any Other Business
For personal use only Any Other Business 35
Slide 37: Important Notices
Important Notices 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 with their own legal, tax