Praemium Ltd · ASX:PPS
Praemium — H1 FY2012 Earnings Presentation
22 slides from Praemium's earnings presentation, Feb 22, 2012
Slide 1: FY2012 Half-Year Results Presentation
For personal use only Praemium Limited . FY2012 Half-Year Results Presentation Michael Ohanessian – CEO 21 February 2012 1
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 (21 February 2011). It is provided in summary and does not purport to be complete. You should not rely u
Slide 3: Agenda
Agenda For personal use only Group Overview H1 FY2012 Summary Forward Plan Questions? 3
Slide 4: Group Overview
For personal use only Group Overview H1 FY2012 Summary Forward Plan Questions? 4
Slide 5: What we do
What we do For personal use only Praemium Praemium Australia UK Delivers technology Owns and operates and services to our portfolio investment clients, enabling them platforms complete to efficiently with custody, legal administer investor structures and portfolios administration 5
Slide 6: Product landscape
Product landscape For personal use only Core Technology Modules Clients Accountants Portfolio SMSF Administrators Investment Register Administration Financial Planners Services (PAS) Brokers CGT Engine Corporate Accounts Corporate Action Processing Blackrock Data Feeds Separately Praemium UK Managed
Slide 7: PAS—A proven technology
PAS—A proven technology For personal use only Corporate action processing A comprehensive online Sophisticated tax and investment reporting portfolio administration Multi-asset class service… Multicurrency Portfolio reconstruction 40% Accountants 40% Financial Planners …with a diversified Client App
Slide 8: The market-leading SMA in Australia
The market-leading SMA in Australia For personal use only The BlackRock Customised Portfolio Service (CPS) is the largest SMA platform in Australia with $490 million FUM as at December 2011 Key features: • Transparency • Professionally managed share portfolios • Automatic reinvesting of dividends •
Slide 9: The UK SMA
The UK SMA For personal use only A discretionary portfolio service where Praemium provides the administration and custody • Advisors maintain the direct investor relationship • Advisors “outsource” investment management to professional fund Advisor centric managers • Fund managers provide model port
Slide 10: H1 FY2012 Summary
For personal use only Group Overview H1 FY2012 Summary Forward Plan Questions? 10
Slide 11: Half-Year Achievements
Half-Year Achievements For personal use only Strategic priority Progress during the period Complete implementation of cost-reduction Company restructure commenced September 2011. On target to initiatives achieve annualised savings of $3 million, approximately a 16% reduction on FY2011’s cost base Re
Slide 12: Revenue profile & KPIs
Revenue profile & KPIs Segment Revenue - H1 FY2012 Half Yearly Revenue Trend For personal use only 2% 8,000 11% ($000) 7,000 4% 6,000 Other 5,000 UK SMA 4,000 AUS SMA 3,000 AUS PAS 2,000 83% 1,000 - AUS PAS Aus SMA UK (SMA) Other H1 FY10 H1 FY11 H1 FY12 Note: FY11 included $1.1m for Powerwrap’s annu
Slide 13: Financial summary
Financial summary Results Summary H1 Dec 11 H1 Dec 10 Change Change For personal use only $000 $000 $ % Revenue 5,992 6,987 (995) (14%) Expenses 7,642 8,855 (1,213) (14%) EBITDA (before restructure costs) (1,650) (1,868) 218 12% EBITDA (2,854) (1,868) (986) (53%) Net Loss before Tax (3,263) (2,168)
Slide 14: Divisional breakdown
Divisional breakdown Praemium Group Aus UK Corporate Group For personal use only Half Year to Dec 11 FY11 FY11 FY11 FY11 $m $m $m $m External Revenue 5.3 0.7 6.0 Employee Expenses (2.5) (2.4) (0.1) (5.0) Operating Expenses (1.4) (1.0) (0.3) (2.7) Total Expenses (3.9) (3.4) (0.4) (7.7) EBITDA 1.4 (2.
Slide 15: AUS earnings profile
AUS earnings profile For personal use only Aus EBITDA to Revenue (%) Solid uplift in profitability 30% of the Australian business 25% EBITDA margin has 20% doubled to 27% in half- 15% year period from cost reductions commenced in 10% October 2011 5% 0% H1 FY11* H2 FY11 H1 FY12 *Powerwrap revenue rec
Slide 16: UK business continues to grow
UK business continues to grow UK Funds on Platform For personal use only (£m) £350 Solid inflows in a tough £300 investment environment FUM up 58% on £250 December 2010 Praemium continues to £200 be one of the fastest growing platforms in the UK £150 Major new client signed in December quarter £100
Slide 17: Forward Plan
For personal use only Group Overview H1 FY2012 Summary Forward Plan Questions? 17
Slide 18: Delivering in tough markets
Delivering in tough markets For personal use only Our UK funds grew 58% while FTSE 100 fell 5% V-Wrap portfolios remained stable despite challenging equity markets V-Wrap revenue up on improved pricing Funds on Australia SMA platform fell in line with ASX 200 Cash burn significantly reduced 18
Slide 19: The future is about the investor
The future is about the investor For personal use only Australia UK Future of Financial Advice Retail Distribution Review (June 2012) (December 2012) Truly independent, consistent Ban on conflicted remuneration advice “Opt in” for all client fees Commission bias removed A “best interest” duty Costs
Slide 20: Praemium is well positioned
Praemium is well positioned For personal use only Detailed Clarity of Transparency of Reporting Ownership Fees Reporting at the All securities underlying security beneficially held by level investor All fees are clearly itemised, including: Performance reporting • Advice In specie transfer in or at
Slide 21: Strategic priorities
Strategic priorities For personal use only Continue to build funds on Continue to improve service platform in the UK and to roll quality to enhance our key out our new Jersey-based expat client relationships service Invest in and modernise V- Tight cost control and revenue Wrap to maintain leadershi
Slide 22: Questions?
For personal use only Group Overview H1 FY2012 Summary Forward Plan Questions? 22