Slide 1: Pacific Current Group Half Year Results
Tacoma // Denver // Sydney // Melbourne ASX ANNOUNCEMENT 25 February 2022 PACIFIC CURRENT GROUP HALF YEAR RESULTS Six months ended 31 December 2021 SYDNEY (25 February 2022) - Pacific Current Group (“PAC” or “Company”) (ASX: PAC) is pleased to report the Company’s interim results for the six months
Slide 2: Statutory result and dividend
ASX ANNOUNCEMENT Page 2 of 3 in 2H22. In FY23, PAC will begin recognizing six months of GQG earnings in every half-year reporting period. The change in accounting method for GQG has no meaningful impact on when PAC receives cash from GQG. The statutory result for the first half was a loss of A$16.6m
Slide 3: Conference call
ASX ANNOUNCEMENT Page 3 of 3 CONFERENCE CALL Pacific Current Group would like to invite you to join our conference call to be held at 11:00am (AEDT) on Friday, 25 February 2022. The presenters will be Paul Greenwood, MD & CEO and CIO and Ashley Killick, CFO. INVESTOR CONFERENCE CALL DETAILS The call
Slide 4: First Half 2022 Results
F I R S T H A L F 2 0 2 2 R E S U LT S PRESENTERS: Paul Greenwood, Managing Director & CEO and CIO Ashley Killick, CFO February 2022
Slide 5: Disclaimer
Disclaimer The information in this presentation is general information about Pacific Current Group (‘Pacific Current’ or ‘PAC’) and is current only at the date of this presentation. In particular, this presentation: > is not an offer or recommendation to purchase or subscribe for securities in Pacif
Slide 6: A Strategy for Strong and Sustainable Earnings Growth
A Strategy for Strong and Sustainable Earnings Growth » » » » » » » » » » » // 3
Slide 7: 1H22 Underlying Results
1H22 Underlying Results – Strong growth in net profit // 4
Slide 8: Management Fee Profitability
Management Fee Profitability » » » » • • // 5
Slide 9: GQG listing and earnings recognition
GQG - ASX listing changes how earnings & market value are recognized » » » » » » » // 6
Slide 10: A$ Share Price/NAV Per Share
A$m – NAV NAV Movement A$ Share Price/NAV Per Share » » » » » » // 7
Slide 11: Portfolio Update
PORTFOLIO- UPDATE”
Slide 12: 1H22 Portfolio Highlights
1H22 Portfolio Highlights » » » » » » » // 9
Slide 13: Portfolio Company Performance Update
Portfolio Company Performance Update » » ○○ ●○ ○○ ○○ ●●○○ ●●●● ●●● ●●●● ●●●○○ ●●●○○ ●●●●● ●●●●● // 10
Slide 14: FUM Growth by Portfolio Company
FUM Growth by Portfolio Company // 11
Slide 15: PAC Boutiques
PAC Boutiques (as at 31 December 2021) Revenue Share Tier 1 Tier 2 16% / 40%* 8% / 16%* Pref. Equity / 23%* Pref. Equity / 18.8% Profit Share Tier 1 Tier 2 100% 4% 39% / 44.5%* 25% 30% 60% 35%* 24.9% 38.8% 24.9% 16.5%* 50% // 12
Slide 16: Outlook
; OUTLOOK
Slide 17: Investment Opportunities
Investment Opportunities » » » » // 14
Slide 18: Outlook
Outlook PAC continues its progress toward building a resilient business, capable of steady and predictable growth > > > > PACIFIC CURRENT GROUP Operational Outlook PAC expects strong new client allocations into portfolio companies in 2H22 to set stage for higher potential revenue and profit growth i
Slide 19: Appendices
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Slide 20: Pacific Current Overview
PACIFIC CURRENT OVERVIEW MARKET INFORMATION * PAC SHARE PRICE MOVEMENT ASX 200 MOVEMENT Shares on Issue 51,037,552 Market Cap (31 Dec 21) $380.2M 52-Week High $8.21 52-Week Low $5.03 Average Volume 103,318 FINANCIAL INFORMATION 1H22 DIRECTORS AND EXECUTIVES COMPANY INFORMATION Underlying Trailing P/
Slide 21: Statutory Profit or Loss
Statutory Profit or Loss A$000s 1H21 1H22 Revenue from operations 12,398 8,605 Distributions and dividend income 11,093 10,288 Other income 154 85 Changes in fair value 7,591 (33,433) Loss on sale of investment (2,250) - 28,986 (14,455) Employment expenses (8,767) (6,460) Impairment expenses - (2,40
Slide 22: Statutory to Underlying Reconciliation
Statutory to Underlying Reconciliation A$000s 1H21 1H22 Reported NPBT/(NLBT) 15,165 (22,297) Non-cash items Amortisation expenses 3,008 3,040 Fair value adjustment of financial assets (7,717) 32,709 Fair value adjustment of financial liabilities 126 724 Impairment of investments - 2,400 Share-based
Slide 23: Expenses
Underlying Profit Drivers 000s 1H21 (A$) 1H22 (A$) 1H21 (US$) 1H22 (US$) Revenues 1,620 2,133 1,171 1,561 Employment 3,793 3,924 2,741 2,870 Marketing/commissions 89 144 64 105 Travel/entertainment (1) 124 (1) 91 Advisory, tax and accounting 920 587 665 429 Expenses Legal and consulting 438 559 316
Slide 24: Underlying Functional P&L Summary
Underlying Functional P&L Summary 1H22 1H21 A$000s Investment Sales Group Total Revenues Boutique Contributions Management Fees 16,486 - - 16,486 16,643 Performance Fees 6,308 - - 6,308 2,349 22,793 - - 22,793 18,992 Commissions and Retainers - 2,005 - 2,005 1,446 Interest Income - - 85 85 153 Other
Slide 25: Statutory Balance Sheet
Statutory Balance Sheet Book Value (A$000s) 30 June 21 31 December 21 Cash 28,298 29,210 Other Current Assets 21,982 11,096 Non-Current Assets Investments in associates and joint ventures 132,058 196,179 Intangible assets 52,705 52,974 Other financial assets 221,774 323,724 Other assets 1,698 3,200
Slide 26: Alternate Balance Sheet
Alternate Balance Sheet Book Value (A$000s) 30 June 21 31 December 21 Cash 21,032 23,463 » Other Current Assets 20,368 9,350 Current Liabilities (14,828) (12,509) » PAC’s Investable Cash 26,572 20,304 Investment in Boutiques » Subsidiaries 57,464 54,504 Associates & Joint Ventures 132,058 188,562 »
Slide 27: Statutory Cash Flow
Statutory Cash Flow A$000s 1H21 1H22 Operating cash flow Net receipts from customers/suppliers/financiers (1,848) (3,404) Dividends received 15,761 13,029 Income tax (paid)/received (1,017) 314 Investing cash flow Net proceeds on sale of associate/subsidiary 2,271 58,579 Increased/new investments (1
Slide 28: Alternate Cash Flow
Alternate Cash Flow A$000s 1H21 1H22 Underlying NPBT 13,665 18,073 Accounting earnings from boutiques (14,655) (19,377) Dividends from boutiques 15,761 13,029 Net interest income (35) (60) Depreciation and amortisation 475 236 Changes in operating assets and liabilities (221) (1,117) Other 783 104 U
Slide 29: Key Definitions
Key Definitions » Underlying Results/Earnings: Unaudited and non-IFRS financial measures used by PAC management to reflect the recurring elements of PACs business. » Boutique Contributions: PAC’s economic entitlement from portfolio company/boutique investments including Management Fees and performan
Slide 30: Key Concepts
Key Concepts » Operating Leverage: » Investment management organizations generally have high operating leverage, whereby additional fee-paying assets can be managed and additional management fee revenues earned while not seeing a large corresponding increase in expenses. PAC benefits from operating