Praemium Ltd · ASX:PPS
Praemium — H1 2011 Earnings Presentation
16 slides from Praemium's earnings presentation, Mar 3, 2011
Slide 1: 1HFY11 Results & Update
1HFY11 Results & Update 3 March 2011 Arthur Naoumidis Group CEO
Slide 2: Service offerings - Australia
Service offerings - Australia V-Wrap V-Wrap Adviser / SMA Praemium SMARTwrap V-Wrap Investor AUSTRALIA Brief Description •A virtual wrap platform •A comprehensive •A Separately •A modern wrap platform with strengths in Direct market data service Managed Account based on V-Wrap Equity processing, tax
Slide 3: Service offerings - UK
Service offerings - UK Discretionary Platform SMARTfund Advantage SMARTfund Services Service (dps) United Kingdom Brief Description A range of risk-profiled funds Praemium can create, manage and Online platform on which utilising the investment research host a fund with a distributor’s Distributors
Slide 4: Key Statistics
Key Statistics 1HFY11 1HFY10 % Revenue change Model Australia V-Wrap Funds under AUD$44.4b AUD$38.9b + 14% Generally Flat $ Administration (FUA) Average $226 per portfolio Committed Portfolios 43,969 42,596 + 3% Separately Managed Account Funds under Management AUD$558m AUD$460m + 21% Approx. 8 bps
Slide 5: Key Financial Achievements
Key Financial Achievements EBITDA EBITDA Variance & 1HFY10 $AUD 1HFY11 $AUD Commentary (‘000) (‘000) V-Wrap 2,218 2,236 1% improvement 43% improvement SMA (467) (268) Flat lined during GFC; growth since then is strong SMARTwrap - 1,036 Contracted revenue Total Praemium 1,751 3,004 72% improvement Au
Slide 6: Key Financial Details
Key Financial Details Group EBITDA for 1HFY11 = ($1.941 million) A 48% improvement from 1HFY10 All development costs are expensed Praemium has no debt Revenue and other income: Half year to 31 December 2010 = $7.02 million Half year to 31 December 2009 = $5.33 million Cash at 31 December 2010 = $5.0
Slide 7: Group Financial Summary
Group Financial Summary Revenue Costs including R&D EBITDA expense $AUD (‘000) $AUD (‘000) $AUD (‘000) 1HFY10 1HFY11 1HFY10 1HFY11 1HFY10 1HFY11 Praemium Australia V-Wrap 4,909 4,921 2,691 2,685 2,218 2,236 SMA 190 266 657 534 (467) (268) SMARTwrap - 1,167 - 131 - 1,036 Total 5,099 6,354 3,348 3,350
Slide 8: Highlights
Highlights Revenue ($’000) Costs EBITDA( $’000) 1HFY11 incl. R&D ($’000) 1HFY11 1HFY11 V-Wrap (including V- 4,921 2,685 2,236 Wrap Adviser) V-Wrap continued to increase its footprint: 43,969 portfolios – a 3% increase since 1HFY10 $44.4 billion FUA – a 14% increase since 1HFY10 E*TRADE: 2nd year Tax
Slide 9: Outlook Australia
Outlook Australia Proposed Future of Financial Advice regulatory reform in 2012 stands to accelerate growth for: V-Wrap Praemium SMARTwrap Praemium SMARTwrap – a full service wrap platform: SMARTwrap Investments – launched in August 2010 SMARTwrap Super (including Pension) – launched November 2010 S
Slide 10: Highlights
Highlights Revenue ($’000) Costs EBITDA( $’000) 1HFY11 incl. R&D ($’000) 1HFY11 1HFY11 SMA 266 534 (268) SMA FUM ($ million) BlackRock Customised Portfolio $600 Service: $500 185 firms use this service $400 SMA FUM increased by 21% to $300 $558 million since 1HFY09 $200 Approx. 30% of the increase F
Slide 11: Outlook
Outlook FUM for SMA will continue to improve with market Imminent deployment of ‘Models of Models’ Compelling value proposition for Advisers Elimination of ongoing SOA Reduction of business risk Improved business value Strong demand from current and prospective clients Praemium SMARTwrap to drive gr
Slide 12: Highlights – United Kingdom
Highlights – United Kingdom Revenue ($’000) Costs EBITDA( $’000) 1HFY11 incl. R&D ($’000) 1HFY11 1HFY11 United Kingdom 575 2,068 (1,493) UK FOP increased by 431% to £207.4 million Our two key offerings are well positioned within the UK regulatory environment Commission is banned from end of 2012 Str
Slide 13: Highlights – United Kingdom Growing Funds on Platform
Highlights – United Kingdom Growing Funds on Platform £250,000,000.00 £200,000,000.00 £150,000,000.00 DPS SMARTfunds £100,000,000.00 UK Total £50,000,000.00 £- 13
Slide 14: Outlook – United Kingdom
Outlook – 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, and £500 billion by 2015 Compelling competitive advantages Product, technology and regulatory Offshore SMA Platform being launched in Channe
Slide 15: Looking ahead
Looking ahead Continue with achieving strong growth in revenues as we: Further enhance our service offerings in Australia Penetrate the wider financial planning community using our SMARTwrap offering Increase distribution and building FOP in the UK Maintain tight control on costs Realise substantial
Slide 16: Important Notices
Important Notices 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, business and/or fina