Slide 1: FY2021 Results Announcement, Investor Presentation & MD's Overview
Tacoma // Denver // Sydney // Melbourne ASX ANNOUNCEMENT 30 August 2021 FY2021 Results Announcement, Investor Presentation & MD’s Overview Pacific Current Group Limited (ASX:PAC) attaches the following documents relating to PAC’s Full year 2021 results announcement: • FY2021 Results Announcement; •
Slide 2: Pacific Current Group Full Year Results
Tacoma // Denver // Sydney // Melbourne 30 August 2021 PACIFIC CURRENT GROUP FULL YEAR RESULTS Year ended 30 June 2021 Pacific Current Group (ASX: PAC, “Pacific Current”) is pleased to report the Company’s full year results for the period ended 30 June 2021. • Funds under management (FUM) grew 52% t
Slide 3: Outlook
OUTLOOK Pacific Current’s Chairman, Mr. Tony Robinson said, “Our business continues to progress nicely. This can be seen in the changing composition of our revenues, which are increasingly comprised of more predictable management fees, while becoming less reliant on commission revenues and performan
Slide 4: Conference Call
CONFERENCE CALL Investors and analysts are invited to participate in a conference call on Tuesday, 31 August 2021 at 9:00am (AEST). The call will be hosted by Pacific Current Group’s Chairman Tony Robinson, Paul Greenwood, CEO & CIO and Ashley Killick, CFO. The dial-in details are as follows: Locati
Slide 5: Full Year 2021 Results
F U L L Y E A R 2 0 2 1 R E S U LT S PRESENTERS: Paul Greenwood, Managing Director, CEO and CIO Ashley Killick, CFO August 2021
Slide 6: 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 7: A Strategy for Strong and Sustainable Earnings Growth
A Strategy for Strong and Sustainable Earnings Growth Pacific Current Group (PAC) is a global investor in investment management firms, with stakes in 15 investment firms across the US, Europe, Asia and Australia. PAC’s boutiques offer a diverse range of investment products across multiple asset clas
Slide 8: FY21 Underlying Results – strong growth in management fee revenues
FY21 Underlying Results – strong growth in management fee revenues Four core drivers: management fees, performance fees, commissions, & corporate overheads FY20 (A$m) FY21 (A$m) FY20 (US$m) FY21 (US$m) Comments Boutique Contributions Management fees 33.8 37.3 22.7 27.9 Management fee revenues increa
Slide 9: Management Fee Profitability
Management Fee Profitability An increasing portion of PAC’s profits are derived from management fee related revenues Management Fee Profitability (A$m) 35 » PAC emphasizes management fee related revenues over performance fees. This reduces earnings volatility and helps deliver high quality, 30 susta
Slide 10: Increasing Earnings Visibility
Increasing Earnings Visibility A growing portion of PAC’s revenues are derived from Revenue Share arrangements Boutique Contributions Revenue Share Vs Profit Share 100% » Majority of Boutique Contributions now derived from participating in boutique revenues (instead of profits), 80% which significan
Slide 11: Portfolio Update
PORTFOLIO- UPDATE”
Slide 12: Investment Philosophy
Investment Philosophy Quality Sustainable Growth We focus solely on best-in-class investment We invest in firms that we believe have a boutiques long runway for growth We look beyond headline investment We look for situations where our investment performance and seek to understand long-term serves a
Slide 13: PAC Boutiques
PAC Boutiques Tier 1 Tier 2 Revenue Share Pref. Equity / 5% 16% / 40%* 8% / 16%* Pref. Equity / 23%* Pref. Equity / 18.8% FUM - US$84.7bn FUM - US$2.3bn FUM - US$3.6bn - FUM - US$1.6bn Global & emerging Life settlements Private equity natural resources Private equity & hedge fund International & eme
Slide 14: FY21 Portfolio Highlights
FY21 Portfolio Highlights Portfolio companies navigated FY21 well and are strongly positioned for FY22 & FY23 Roc » Grew FUM from A$6.6b to A$8.5b during FY21, and new business pipeline remains strong. Also realized significantly higher performance fees versus FY20. Astarte » New investment in uniqu
Slide 15: Portfolio Company Performance Update
Portfolio Company Performance Update Investment performance remains generally strong and should facilitate future growth » Private capital strategies generally weathering the pandemic very well » Improvement in commodity prices has aided Aether and Proterra performance » Carlisle’s open-end fund pro
Slide 16: Cumulative 3-Year FUM growth
FUM Growth by Portfolio Company Though GQG dominates the statistics, growth has generally been strong and broad Cumulative 3 Year FUM Growth as at 30 June 2021 FUM growth in Boutique Local Currencies 600% 600% 500% 500% Cumulative 3-Year FUM growth 400% 400% 300% 125% 100% 200% 75% 100% 50% 25% 0% 0
Slide 17: Outlook
; OUTLOOK
Slide 18: Investment Opportunities
Investment Opportunities Continued momentum in PAC deal flow into FY22 Opportunities by Asset Class Average Deal Size by Asset Class (US$m) Infrastructure Private Real Estate 5% 5% » Existing cash and a potential new credit line Public Equity (long only) 3 should provide ample dry powder to deploy i
Slide 19: Outlook
Outlook PAC expects continued improvement in corporate and boutique prospects Operational Outlook Financial Outlook » Growth prospects broadening across the portfolio » PAC expects current portfolio to generate solid due to increased sales activity and more funds growth in FY22 and further increases
Slide 20: Appendices
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Slide 21: Pacific Current Overview
PACIFIC CURRENT OVERVIEW Pacific Current is an ASX-listed, global, multi-boutique asset management business, which leverages its experience and resources to identify exceptional asset managers and help them grow. MARKET INFORMATION * PAC SHARE PRICE MOVEMENT ASX 200 MOVEMENT Shares on Issue 50,828,8
Slide 22: Statutory Profit or Loss
Statutory Profit or Loss A$000s FY20 FY21 Revenue from operations 35,811 20,123 » Results include the revenues and expenses of operating subsidiaries (i.e. Seizert (until 30 November 2020 sale date), Aether, and SCI) Distributions and dividend income 25,271 26,686 Other income 1,644 237 » Amortisati
Slide 23: Statutory to Underlying Reconciliation
Statutory to Underlying Reconciliation A$000s FY20 FY21 Reported NPBT/(NLBT) (27,317) 23,465 » Reported results impacted by extraordinary/non-cash items Non-cash items » Notable for FY21: Impairment of investments 52,693 3,536 » Impairment of investments relates to CAMG and VPC GP Amortisation expen
Slide 24: Expenses
Underlying Profit Drivers 000s FY20 (A$) FY21 (A$) FY20 (US$) FY21 (US$) Revenues 5,126 2,588 3,435 1,931 » Corporate revenues declined due to multi-year commission income running off, offset partially by reduced commission expense payments Employment 8,080 8,492 5,414 6,336 Marketing/commissions 1,
Slide 25: Underlying Functional P&L Summary
Underlying Functional P&L Summary FY21 FY20 A$000s Investment Sales Group Total Revenues » Revenues and Expenses broken out by functional area to shed light on profitability of different business segments Boutique Contributions Management Fees 37,346 - - 37,346 33,807 » Investment, Sales, and Group
Slide 26: Statutory Balance Sheet
Statutory Balance Sheet Book Value (A$000s) 30 June 20 30 June 21 Cash 20,154 28,298 » Reflects the consolidation of corporate admin and operating subsidiaries (i.e. Other Current Assets 21,705 21,982 Aether and SCI), Seizert was removed from 30 June 21 balance sheet due to disposal in November 2020
Slide 27: Alternate Balance Sheet
Alternate Balance Sheet Book Value (A$000s) 30 June 20 30 June 21 Cash 7,431 21,032 » Reflects deconsolidation of operating subsidiaries (i.e. Aether, Seizert, and SCI) to present PAC on a “look through” basis Other Current Assets 16,345 20,368 Current Liabilities (16,053) (14,828) » Investable cash
Slide 28: Statutory Cash Flow
Statutory Cash Flow A$000s FY20 FY21 Operating cash flow » Increased distributions from Boutiques resulted in an improved cash flow from operations in FY21 Net receipts from customers/suppliers/financiers 1,600 (4,135) Dividends received 26,966 34,515 » Increased investments in IFP and CAMG during F
Slide 29: Alternate Cash Flow
Alternate Cash Flow A$000s FY20 FY21 Underlying NPBT 32,070 32,578 » Reconciles the underlying NPBT to cash generated from operating Accounting earnings from boutiques (29,911) (36,498) activities. Dividends from boutiques 26,966 34,515 » Dividends reported in the P&L reflect income from the Fair Va
Slide 30: Key Definitions
Key Definitions » Underlying Results/Earnings: Unaudited and non-IFRS financial measures used by PAC management to reflect the recurring elements of PAC’s business. » Boutique Contributions: PAC’s economic entitlement from portfolio company/boutique investments including Management Fees and performa
Slide 31: Managing Director's Financial Year Overview
Tacoma // Denver // Sydney // Melbourne Managing Director’s Financial Year Overview A year ago, our world was fully in the grips of a global pandemic and uncertainty over the human and economic toll was rampant. Now, despite a surge in different variant strains of the COVID-19 virus, the clouds are
Slide 32: Managing Director's Financial Year Overview (continued)
Tacoma // Denver // Sydney // Melbourne fees or commission expenses. We refer to this as Management Fee Profitability. The graph below details the steady growth in Management Fee Profitability over the last several years, particularly in FY21. This means that a growing portion of PAC’s overall profi
Slide 33: Managing Director's Financial Year Overview (continued)
Tacoma // Denver // Sydney // Melbourne have made it and are grateful for the partnership with such a high-quality firm. Moreover, we remain exceptionally bullish on the firm’s future prospects. Victory Park Capital (VPC) had an exceptionally busy and productive year. The firm was a very active part
Slide 34: Managing Director's Financial Year Overview (continued)
Tacoma // Denver // Sydney // Melbourne breadth of our opportunity set is a key competitive advantage, as it allows us to be more selective and focus on opportunities where we face less competition. Given the heightened interest in acquiring investment managers, it is no surprise that valuations of