Praemium Ltd · ASX:PPS
Praemium — H1 2024 Earnings Presentation
26 slides from Praemium's earnings presentation, Feb 26, 2024
Slide 1: Half-Year to 31 December 2023 Financial Results Presentation
PRESENTED BY Half-Year to 31 December 2023 Anthony Wamsteker CEO Financial Results Presentation David Coulter CFO Praemium Limited ACN 098 405 826 26 February 2024
Slide 2: Traditional Custodians of Country
At Praemium we acknowledge the Traditional Custodians of Country. We pay our respect to their Elders past, present, and emerging for they hold the memories, traditions, and culture of First Nations’ People. 2
Slide 3: Disclaimer
Disclaimer The material contained in this document is a presentation of general information Praemium does not undertake any obligation to publicly release the result of any about the Praemium Group’s activities current as at the date of this presentation revisions to these forward-looking statements
Slide 4: Agenda
Agenda » HY24 Business Highlights – Anthony Wamsteker » HY24 Financial Results – David Coulter » Strategy / OneVue Acquisition – Anthony Wamsteker Anthony Wamsteker David Coulter CEO CFO » Questions 4
Slide 5: Business Highlights
Business Highlights 5
Slide 6: HY24 business highlights
HY24 business highlights » Strong 10% revenue growth » 12% 5-year CAGR for SMA $9.0m $39.7m » Market-leading $25.3b VMAAS non-custody HY EBITDA Revenue and other (underlying) solution income » Higher margin SMA now at $10.4b » $7.5m of buy-back completed HY24 - $19m buy-back in total up to 21/12/23
Slide 7: Net flows and FUA- custody
Net flows and FUA- custody Net Flows by Half-Year Net Flows HY24 2,500 » Platform $31m 2,000 SMA PWL 1,500 » SMA $416m inflow 1,000 » Powerwrap $385m outflow » Market movement $696m increase $m 500 - H2 2020 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023 H2 2023 H1 2024 (500) (1,000) (1,500) » FUA (Dec 23
Slide 8: Net flows and FUA – non-custody
Net flows and FUA – non-custody VMA Services 66,000 » Reinvigorated growth in non-custodial 64,000 services with 27 new client firms signed 62,000 » VMA 64,384, up from 59,745 60,000 » VMAAS 8,493, up from 7,702 58,000 » VMAAS FUA $25.3b - up 16% 56,000 54,000 H1 2021 H2 2021 H1 2022 H2 2022 H1 2023
Slide 9: Maintain Leadership
Maintain Leadership Award-winning technology innovations » No. 1 in 17 sub-categories » No. 2 for sub-category wins » No. 3 platform overall » 90% platform rating – highest score to date *Investment Trends Competitive Analysis and Platform Benchmarking Survey 2023. 9
Slide 10: Financial Results
Financial Results 10
Slide 11: Group results
Group results Group results $m HY24 HY23 $ change % change » 9% revenue growth Platform 28.5 26.0 2.5 10 Portfolio services 10.0 9.4 0.6 6 • SMA inflows partly offset by Powerwrap Revenue 38.5 35.4 3.1 9 adviser exits to non-user licensee Cost of operations* (11.7) (9.8) (1.9) (19) • Equity markets
Slide 12: Platform Revenue Margins – subdued trading volume impact
Platform Revenue Margins – subdued trading volume impact • SMA HY 23 33 bps v 30 bps pcp • SMA HY 23 34 bps v 33 bps pcp • PWL HY 23 20 bps v 17 bps pcp • PWL HY 23 19 bps v 20 bps pcp 12
Slide 13: FTE increases in Australia
FTE increases in Australia FTE totals FTE Totals » Dec 21: 322 (Aus 242) 180 160 » Jun 22: 346 (Aus 253) 140 120 » Dec 22: 338 (Aus 253) 100 80 » Jun 23: 347 (Aus 264) 60 40 20 » Dec 23: 349 (Aus 269) 0 Sep-22 Dec-22 Sep-23 Dec-23 Feb-22 Apr-22 Feb-23 Apr-23 Mar-22 Jul-22 Aug-22 Mar-23 Jul-23 Aug-23
Slide 14: Cashflow
Cashflow Cashflow ($m) HY24 HY23 » Operating cashflow of $6.8m impacted by: Operating cashflow 4.9 7.9 » Timing mis-match on GST remittance Tax refunded / (paid) 2.6 (0.8) One-off costs (0.7) (1.5) » PAYG tax refunded post 30 June 2023 Net operating cashflow 6.8 5.6 » HY23 one-off costs were divestm
Slide 15: Balance Sheet
Balance Sheet Balance Sheet ($m) Dec 23 Jun 23 » Strong balance sheet available to fund Cash 41.0 46.3 future growth, even allowing for cash Receivables 9.8 10.5 used to fund accretive IOPB acquisition Financial assets 2.1 4.0 Intangibles 62.3 60.5 » Group regulatory cash requirement Other assets 8.
Slide 16: Strategy
Strategy 16
Slide 17: Strategic approach
Strategic approach » Closely tracking » Develop and » Create unique » Continue to enduring market offer products offerings and grow and scale trends. & services that differentiators our business to effectively » Deliver the benefit of address improvements our clients, evolving needs. that outshine s
Slide 18: Growing market share in our core markets
Growing market share in our core markets 18
Slide 19: Strong progress on strategic initiatives
Strong progress on strategic initiatives 19
Slide 20: OneVue Acquisition
OneVue Acquisition 20
Slide 21: Highly Accretive Strategic Acquisition
Highly Accretive Strategic Acquisition Praemium has entered into an agreement to acquire 100% of the Iress OneVue Platform Business (“IOPB”) from Iress Limited (ASX:IRE) Strategic value accretive acquisition Attractive consideration structure Client migration and timing » Highly strategic, adding $4
Slide 22: FUA and client overview
FUA and client overview IOPB has long term, stable relationships with high-quality client base with $4.0b of FUA Key metrics(1) Revenue by product / service(2) FUA by product / service(1) FUA by client segment FUA by asset type Other revenue Platform fees 37% 43% Private Client Custodial Non-custodi
Slide 23: Post-migration snapshot
Post-migration snapshot Through the acquisition, Praemium’s Platform FUA is expected to grow by $4.0bn, bringing the pro forma Platform FUA to $26.9b and total FUA to $52.3bn Praemium(1) IOPB(3) Pro forma +17.5% VMAAS Platform (2) VMAAS Platform FUA Retail Super 52% 48% Custody & Admin 48% 15% Platf
Slide 24: Questions
Questions 24
Slide 25: Contact us
przemium contact us Level 19, 367 Collins Street, Melbourne, VIC 3000 Ph: 1800 571 881 E: support@praemium.com.au (¥) twitter.com/praemium (in) linkedin.com/praemium praemium.com.au
Slide 26: Appendix: About the Iress OneVue Platform Business
Appendix: About the Iress OneVue Platform Business IOPB offers a comprehensive range of financial products and services in both the super and non-super segments, as well as value-add custody and administration services Product / service type Key features Target clients Breadth of portfolio Administr