Slide 1: Changes to Financial and Operating Disclosure Post ETFS Securities Transaction
Changes to Financial and Operating Disclosure Post ETF May 9, 2018 Securities Transaction
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements that are based on our management’s belief and assumptions and on information currently available to our management. Although we believe that the expectations reflected in these forward-looking statements are reasonable,
Slide 3: Overview
Overview + On April 11, 2018, we acquired the European exchange-traded commodity, currency and short-and-leveraged business (“ETFS”) from ETF Securities Limited (“ETF Securities”), which includes $17.6 billion of assets under management (“AUM”) as of April 10, 2018. + The acquisition elevates us to
Slide 4: Key Items Post Transaction
Key Items Post Transaction Below are key items associated with our acquisition of ETFS that we believe investors should understand to better analyze our business going forward: + Contractual gold payments + Term loan and revolving credit facility + Issuance of preferred stock + Preliminary purchase
Slide 5: Contractual Gold Payments—Deferred Consideration
Contractual Gold Payments—Deferred Consideration + In 2008, ETF Securities acquired Gold Bullion Securities (“GBS”) a gold-backed ETC owned by Gold Bullion Holdings (“GBH”), a company owned two-thirds by the World Gold Council and one-third by Graham Tuckwell. + The acquisition did not involve any u
Slide 6: Term Loan and Revolving Credit Facility
Term Loan and Revolving Credit Facility We entered into a $200 million term loan and $50 million revolving credit facility. We have not used the revolving credit facility. Key terms of the term loan are as follows: + Rate: LIBOr + 1.75 + Interest expense components (4/11/18 to 12/31/18): Cash intere
Slide 7: Preferred Stock
Preferred Stock WisdomTree issued common and preferred stock as part of the ETFS acquisition. Key terms for the stock portion of the transaction consideration are as follows: + 15.25 million shares of common stock + 14,750 non-voting preferred shares convertible into 14.75 million shares of common s
Slide 8: Preliminary Purchase Price Allocation
Preliminary Purchase Price Allocation + WisdomTree engaged a valuation consultant to allocate the purchase price across the assets acquired from ETF Securities. Preliminary allocation of the purchase price using the proforma financial statements as of December 31, 2017 is as follows: ($ millions) Ca
Slide 9: New Operating Income Statement
New Operating Income Statement We will be reclassifying our income statement into an operating statement format with non-operating items “below the line.” An explanation of the new line items are highlighted below. Revenues Advisory fees Other income Total revenues Expenses: Compensation and benefit
Slide 10: Reclassification of AUM and net flow disclosures
Reclassification of AUM and net flow disclosures + Following the closing of the transaction we reclassified our AUM and net flows to better align with our new consolidated AUM + AUM and flows are still broken down by the region where the product is listed (U.S., Europe, Canada) along with new asset
Slide 11: WT International Segment 2018 Guidance
WT International Segment 2018 Guidance The following provided additional guidance on expense line items for our International segment post the ETFS acquisition, which is now included in this segment. There are no changes to the overall guidance since our earnings call on April 27, 2018. + ETF Securi
Slide 12: Taxes
Taxes The table below reflects the components of our tax expense assuming annualized Q1/18 results less acquisition related expenses and run rate guidance for ETFS. Pre Tax Pre Tax Tax Tax Jurisdiction Product NOL Income Rate Expense WisdomTree US 21% States 5% Total US 75.0 26% 19.5 Ireland UCITS E
Slide 13: Historical Financials
Historical Financials The table below reflects the historical breakdown of “Other income” into the revised income statement format. No other line items changed Q1 2018 Q4 2017 Q3 2017 Q2 2017 Q1 2017 Previously Reported Other Income US Segment $883 $539 $590 $508 $1,312 International Segment (34) 22
Slide 14: WisdomTree
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