Praemium Ltd · ASX:PPS
Praemium — FY2015 Earnings Presentation
23 slides from Praemium's earnings presentation, Aug 26, 2015
Slide 1: FY2015 Annual results
FY2015 Annual results 26 August 2015
Slide 2: Disclaimer
Disclaimer 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 (26 August 2015). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for inv
Slide 3: A global fintech company
A global fintech company Financial Portfolio Separately Planning Admin Managed (WealthCraft) (V-Wrap) Account (SMA) Servicing Financial Advice intermediaries Head office in Melbourne Over 800 7 locations across Europe, Asia & Middle East global clients Company stats: ASX: PPS Listed May 2006
Slide 4: FY2015 key achievements
FY2015 key achievements Maiden EBITDA profit, $2.2 million Strong operating cash flows, $4.2 million 28% increase in group revenue 63% increase in UK revenue Record breaking year with SMA platform inflows of $1.5 billion Acquired Plum Software to accelerate WealthCraft’s launch in UK E
Slide 5: Maiden profit
Maiden profit Praemium ($m) FY12 FY13 FY14 FY15 Revenue 13.0 14.9 19.0 24.4 Highlights Operations (3.7) (3.8) (4.8) (6.1) Gross margin 9.3 11.1 14.2 18.3 Revenue +28% GM % 72% 74% 75% 75% Expenses +15% Information Technology (3.2) (3.6) (4.4) (5.1) Increased R&D Sales & Marketing (2.3) (3.1) (
Slide 6: Revenue growth of 28%
Revenue growth of 28% Product Revenue 25.0 ($ million) Compared with FY2014 Revenue up 28% to $24.4 million 20.0 SMA revenue up 35% to $8.5 million 15.0 Planning software $1.6 million, including 4-month contribution from Plum Software 10.0 Portfolio Services of $12.1 million, up 12% Other income inc
Slide 7: SMA growth is accelerating
SMA growth is accelerating Fund Inflows - Gross Funds on Platform ($000's) Growing fund inflows ($m) 1,800 leading to accelerating 4,000 Funds on Platform Aust 1,600 Aust Int Int 1,400 3,000 1,200 1,000 2,000 800 600 Several new significant clients still in early 1,000 400 adoption phase further u
Slide 8: Segment results
Segment results FY2015 ($m) Group AUS UK ASIA Corp Total Year on year Revenue 18.3 5.3 0.8 - 24.4 Aus EBITDA ↑ 52% Expenses (9.4) (10.0) (2.1) (0.7) (22.2) UK EBITDA ↑ 3% (GBP ↑ 8%) EBITDA 8.9 (4.7) (1.3) (0.7) 2.2 EBITDA % 49% 9% 10.0 Segment EBITDA FY13 FY14 FY15 7.5 ($m) 5.0 2.5 - -2.5 -5.0 A
Slide 9: Unfavourable fx impacted UK result
Unfavourable fx impacted UK result UK Expenses in AUD & GBP 12,000 0.7 0.6 10,000 FY2015 expense growth of 16% in 0.5 GBP included full year costs of 8,000 Smartim Investment Management Expenses (000’s) 0.4 plus 4 months of Plum Software 6,000 fx 0.3 Expense growth in AUD was 24% 4,000 0.2 2,000 0.1
Slide 10: Balance sheet
Balance sheet Praemium ($m) FY14 FY15 Change Cash 8.6 11.5 34% Highlights Current Assets 3.8 3.0 Non-Current Assets 5.1 8.0 Strong cash position Operating cash flow of Total Assets 17.5 22.5 29% $4.2m Cash for Plum Current Liabilities (3.4) (6.3) acquisition of $1.9m Non-Current Liabilities (0
Slide 11: Australia business now highly profitable
Australia business now highly profitable The Australian business recorded 49% EBITDA margin in FY2015 Important institutional contract extension from November 2014 Increased investment in technology development Strong operating cash flows SMA platform in particular has grown very strongly with
Slide 12: Aus EBITDA margin of 49%
Aus EBITDA margin of 49% Aus EBITDA 10.0 50% ($m) Australia business EBITDA $8.9 million % 8.0 40% Revenue growth of 22% over last year with growth across all products 6.0 30% Expense growth of 4% including an increase in technology spend of $0.4 million over last year 4.0 20% Demonstrable operating
Slide 13: Strong SMA platform growth
Strong SMA platform growth Strong asset growth on Praemium’s Australia SMA Award winning Gross asset inflows increased 61% over prior year Major client wins in the independent advisory segment Solid pipeline of new business expected from firms in early adoption phase Considerable shift away
Slide 14: Upside potential in retail SuperSMA
Upside potential in retail SuperSMA Overall superannuation market is A$2 trillion* 14
Slide 15: V-Wrap now with SMSF functionality
V-Wrap now with SMSF functionality Complete member view at a glance SMSF Alerts for unallocated member transactions Transaction matching feature makes reconciliations easy Excellent contribution cap monitoring Covers cap history, contributions into other funds & contribution acceptance rules
Slide 16: International business growing strongly
International business growing strongly UK revenue grew 63% over the prior year in AUD (53% in local currency), or 45% pre the impact of the Plum acquisition Solid pipeline of new clients seeing the unique benefits of Praemium’s dynamic SMA platform The in-house Investment Management proposition, Sm
Slide 17: Breakout year for UK business
Breakout year for UK business Underlying UK Revenue ($000's) Revenue growth of 63% 6,000 (53% in local currency) Plum driven by: 5,000 Software 31% increase in Funds under Administration 4,000 Higher vertical margin with Smartim models / funds 4 month contribution from 3,000 acquisition of Plu
Slide 18: UK platform gaining traction
UK platform gaining traction Services provided by International Platform Award winning UK domestic Praemium client Price Bailey, Offshore expat in £, $, € winner of the Leading Adviser Fully automated discretionary SMA Practice - 2014 Aberdeen UK platform drives efficiencies for financial Platfo
Slide 19: Excellent start for Smartim
Excellent start for Smartim Smart Investment Management (Smartim) – Praemium’s in house Multi Asset Investment Management team Smartim FUA Background: (A$000’s) • Smartim established in late 2013 in London 400 • Experienced team of multi-asset fund managers 350 • Prior experience in running model po
Slide 20: Innovative new fund from Q1, FY16
Innovative new fund from Q1, FY16 Smartfund 80% Protected Growth Bull Bear Recovery Market Market Equities 92% Performance cap 6%/mo Protection level 80% Fund Balanced Equities 55% Performance cap 4%/mo Protection level 80% Day 1 Protection Market level Multi Asset Strategies Investment Manageme
Slide 21: Value drivers
Value drivers Industry drivers Praemium… SMA is the fastest growing segment in the …is the SMA market leader with proprietary Australia platform market technology Mandated growth of superannuation funds in …has an innovative new SMSF solution plus a Australia revamped retail SuperSMA solution Model
Slide 22: Looking forward
Looking forward Strong SMA inflows expected to accelerate given the company’s solid pipeline of new business, from recent client wins and new sales opportunities Model portfolios and managed funds offered by Smartim will continue to build off an excellent first full year of operation Growth for V-Wr
Slide 23: Questions?
Questions? 23