Regal Partners Limited · ASX:RPL
Regal Partners — FY2019 Earnings Presentation
24 slides from Regal Partners's earnings presentation, Feb 27, 2020
Slide 1: FY19 Results Briefing Presentation
VGI Partners Limited ABN 33 129 188 450 39 Phillip Street Sydney NSW 2000 Australia T. +61 2 9237 8900 www.vgipartners.com AFSL No. 321789 | SEC Registered 27 February 2020 ASX Market Announcements ASX Limited Level 6, Exchange Centre 20 Bridge Street Sydney NSW 2000 BY ELECTRONIC LODGEMENT FY19 Res
Slide 2: FY19 Investor Briefing
VGI Partners Limited (ASX:VGI) FY19 Investor Briefing – 27 February 2020
Slide 3: FY19 Business Highlights
Year to 31 December ($ million)1 FY19 FY18 Income FY19 Business Highlights Management fees (net)1,2,3 32.4 19.2 Year to 31 December 2019 Performance fees (net)3 36.7 44.9 Other income2 (0.1) 0.7 • IPO completed in June 2019. Over 77% owned by key Normalised total operating revenue 69.0 64.8 manageme
Slide 4: Business Overview
VGI PARTNERS Business Overview
Slide 5: VGI Partners Overview
VGI Partners Overview • Specialist manager focusing on global equities. Long Individually Managed biased, concentrated strategy with selective shorting. VGI Managed Funds Accounts (IMAs) Minimal to no leverage utilised • 29 staff in Sydney, New York and Tokyo Unlisted Listed Unlisted • FUM of $3.3 b
Slide 6: Philosophy and Alignment of Interests
VGI Partners Philosophy and Alignment of Interests Alignment of Interests • VGI Partners paid for establishment costs of VG1 and VG8. VGI Partners also met all costs in VG1’s equity raising in 2019 Capital Preservation Do not lose money • All operating costs of VG1 and VG8 (where permitted) paid by
Slide 7: Master Fund Long-Term Performance Objectives Achieved
VGI Partners Master Fund Long-Term Performance Objectives Achieved Performance Objective Annual Compound Returns (% p.a.) VGI Partners Achieved Master Fund To 31 January 2020 Master Fund Performance (10-15% p.a.) Net Exposure 1 year 16.3% 69.9% 2 year rolling (p.a.) 16.1% 64.2% 3 year rolling (p
Slide 8: Capital Preservation: Performance in Up/Down Months
VGI Partners Master Fund: Capital Preservation Performance in Up/Down Months Compound Annual Return (Net) Performance in Performance in 18% "Up Market" Months "Down Market" Months 16% 14.8% 14% 2.9% 12.0% 3% 2.3% 12% 2% 10% 1% 8% 0% 6% (1%) 4% (0.8%) (2%) 2% (3%) (2.2%) 0% Average VGI Average Averag
Slide 9: Financials
VGI PARTNERS Financials
Slide 10: Normalised Financials
Year to 31 December ($ million) FY19 FY181 Income Normalised Financials Management fees (net)2 32.4 19.2 Year to 31 December 2019 Performance fees (net) 36.7 44.9 • Given VGI Partners’ listing in June 2019, new VG1/VG8 Other income3 (0.1) 0.7 FUM raised, the costs of the VGI/VG1/VG8 raisings, and No
Slide 11: Funds Under Management on 31 December 2019
Funds Under Management on 31 December 2019 of $3.1 bn Roughly half in Listed Investment Companies Individually Managed Master Fund Offshore Fund Accounts VG1 VG8 FUM (A$m) at $855m $275m $450m $975m $540m 31 December 2019 Launch date January 2009 May 2012 Various September 2017 November 2019 51% 49%
Slide 12: Revenue and FUM
Revenue and FUM Year to 31 December 2019 • FUM of $3.1 bn up 48% over the year ($0.3 bn VG1 raising, VGI Partners FUM $0.6 bn VG8 IPO and $0.1 bn performance/other) $3.5 bn • Gross management fees of 1.5% $3.0 bn • VG1 fee waiver finished in April 2019 $2.5 bn $2.0 bn • Net management fees of c.1.4%
Slide 13: Go-forward annualised net management fees
Go-forward annualised net management fees of c.$47 million1 Assumes no further capital raised Bridge: FY19 net management fees to “go-forward” annualised net management fees as at 31 January 2020 $50m $7.1m $46 8m $2.2m $40m $2.2m $2 9m $32.4m $30m $20m $10m $0m FY19 net management VG1 fee waiver In
Slide 14: Illustrative Revenue Scenarios
Illustrative Revenue Scenarios based on 31 January 2020 FUM of $3.3bn1 The illustrative revenue scenarios comprise: • The “go-forward” annualised net management fee1 • Net performance fee outcomes based on an illustrative range of VGI Partners Fund performance levels (post fees) Historical fees ($m)
Slide 15: Expenses
Expenses Year to 31 December ($ million) FY19 FY181 Year to 31 December 2019 Personnel 11.8 7.6 • Normalised operating costs (ex raising) of $21.0m Research, communications and IT 3.8 3.4 Occupancy 0.4 0.5 • Cost increase on pcp mainly due to personnel, given headcount growth Donations2 0.6 0.4 Othe
Slide 16: Balance sheet
Balance sheet As at 31 December 2019 • Strong balance sheet; increased flexibility post IPO 31 Dec 31 Dec Statutory balance sheet ($ million) 2019 2018 • $29 million in cash as at 31 December 2019, no debt Cash and cash equivalents 29.3 7.8 • $6.1m of on-market purchases VG1 to date Trade and other
Slide 17: Foundation Class and Charitable FUM
VGI Partners Foundation Class VGI’s cumulative charitable rebates and donations and Charitable FUM $6m $5.8m $5m • VGI Partners actively supports charitable and community causes. Total donations and rebates since 2008 of $5.8m. $4m $3m This includes $1.3m of cash donations to select charities. $2m
Slide 18: Shareholder Engagement
Shareholder Engagement Please elect electronic Half-year and full-year Annual national Notes from Berkshire communications to result conference calls roadshow including Hathaway and Daily stay informed briefings in Sydney, Journal meetings Annual General Melbourne, Adelaide, Meeting (AGM) in April P
Slide 19: Questions
VGI PARTNERS Questions
Slide 20: Appendix
VGI PARTNERS Appendix
Slide 21: Reconciliation: Normalisation adjustments
FY18 FY19 FY19 Year to 31 December ($ million) pro forma1 statutory Adjust. normalised Income Appendix: Reconciliation Management fees (net) 19.2 30.6 0.3 + 1.5 32.4 Normalisation adjustments Performance fees (net) 44.9 36.7 36.7 Other income 0.7 (1.6) 1.5 (0.1) • Given VGI Partners’ listing in June
Slide 22: Disclaimer
Disclaimer: VGI Partners Limited (ABN 33 129 188 450) (VGI Partners) is the holder of an Australian Financial Services Licence (No. 321789) and is SEC registered. The information in this presentation (Information) has been prepared by VGI Partners and is current as at the date of this presentation.
Slide 23: Disclaimer (continued)
Disclaimer (continued): Some forward-looking statements included (and footnoted) in this Information Financial Information is presented on both a statutory basis (prepared in accordance with Australian accounting standards which include Australian equivalent to International Financial Reporting Stan
Slide 24: Disclaimer (continued)
Disclaimer (continued): Information dissemination The Information may not be reproduced, disseminated, quoted or referred to, in whole or in part, without the express consent of VGI Partners. Ownership VGI Partners and their associates may have interests in financial products mentioned in this prese