Income Asset Management Group Limited · ASX:IAM
Income Asset Management — Investor Presentation (October 2024)
40 slides from Income Asset Management's investor presentation, Oct 14, 2024
Slide 1: IAM Group Investor Presentation
IAM Group Investor Presentation October 2024 Income Asset Management Group Limited ACN 010 653 862 (ASX: IAM)
Slide 2: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER The following notice and disclaimer applies to this investor presentation and you are therefore advised to read this carefully before reading or making any other use of this presentation or any information contained in this presentation. By accepting this presentation
Slide 3: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Investment risk An investment in shares in IAM is subject to known and unknown risks, some of which are beyond the control of IAM and its directors, including possible loss of income and principal invested. IAM does not guarantee any particular rate of return or the p
Slide 4: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER Financial data All dollar values are in Australian dollars ($ or AUD) unless stated otherwise. All IAM references starting with “FY” refer to the financial year for IAM, ending 30 June. For example, for IAM, “FY24” refers to the financial year ending 30 June 2024. Inv
Slide 5: Important Notice and Disclaimer
IMPORTANT NOTICE AND DISCLAIMER The Joint Lead Managers and their Limited Parties make no recommendation as to whether you or your related parties should participate in the Offer nor do they make any representations or warranties to you concerning the Offer. There is no statement in this presentatio
Slide 6: Executive Summary
Executive Summary In just 3 years IAM has scaled to $2 billion in Capital Markets FUA1 and 2000+ client accounts. The agreement with Perpetual provides a significant cost reduction and revenue initiatives will drive growth. Transformative Agreement with Perpetual Corporate Trust2 ▪ IAM is moving cus
Slide 7: Entering Horizon 3 – Focus on Scaling and Growing Profitably
Entering Horizon 3 – Focus on Scaling and Growing Profitably Horizon 3 2025+ Building scale and growing Horizon 2 profitably 2022-2024 Emerging Horizon 1 2020-2021 Growth Start-up/Re-branding Time 7 Income Asset Management
Slide 8: The Path To Profitability
The Path To Profitability In early 2021, IAM began implementing a new strategic direction for the group. In 2024 the firm will outsource administration – to drive profitability. April 2020 May 2022 2024 Oct 2024 Cashwerkz board RBA raises cash Partnerships formalised IAM announces agrees to new rate
Slide 9: Overview of Equity Raising
Overview of Equity Raising
Slide 10: Strategic Rationale
Strategic Rationale Reset the business to focus on our core fixed income offering, materially reduce costs and strengthen the revenue potential by allowing IAM to allocate resources towards sales and growth. Focus on Fixed Balance sheet Partnership with Perpetual Corporate Trust Income reset Simplif
Slide 11: Equity Raising – Summary of Terms
Equity Raising – Summary of Terms Equity Raise Size & ▪ Equity Raising of up to $18m comprises: Structure • Up to $15m entitlement offer in the form of a 1.51 for 1 fully underwritten, renounceable pro-rata offer by IAM to eligible shareholders1 ("Rights Issue") of new fully paid ordinary shares ("N
Slide 12: Abbreviated Pro-Forma Balance Sheet & Capital Structure
Abbreviated Pro-Forma Balance Sheet & Capital Structure Proforma Abbreviated Balance Sheet ($’000) 31/8/20241 Capital Raise2 Note Repayment3, 4 31/8/20245 Cash and Cash Equivalents 2,481 17,300 (10,300) 9,481 Total Current Assets 4,633 17,300 (10,300) 11,633 Total Non-Current Assets 2,315 - - 2,315
Slide 13: Equity Raising – Indicative Timetable
Equity Raising – Indicative Timetable Announcement of the Equity Raising Monday, 14 October 2024 Ex-date, rights are quoted on a deferred settlement basis Wednesday, 16 October 2024 Record Date for Entitlement Offer (7.00pm AEDT) Thursday, 17 October 2024 Settlement of Institutional Placement Thursd
Slide 14: IAM Overview
IAM Overview
Slide 15: Company Overview
Company Overview Board & Management Title % Ownership Top 10 Shareholders Shares Held % of Issued Brook Adcock 59,348,475 17.9% Executive Chairman John Nantes 3.4% Regal Funds Management Pty Ltd 41,004,692 12.4% Chief Executive Officer Jon Lechte 5.0% Michael Hackett 19,085,186 5.8% Executive Direct
Slide 16: IAM Leadership Team
IAM Leadership Team Jon Lechte James Shillington Kyle Lambert Jenna Labib CEO, IAM Group Co-Head Capital Markets Co-Head Capital Markets Head of Sales Jon has more than 30 years’ James is a fixed interest Kyle is Executive Director Jenna Labib is Head of Sales experience in Australian and product sp
Slide 17: About IAM
About IAM We provide investors with access to the OTC and listed bond market across both primary and secondary market transactions. Overview: ▪ We believe IAM is a market leader in secondary trade, largely due to our growing client base and extensive number of liquidity providers ▪ Secondary trading
Slide 18: Comprehensive Fixed Income Solution
Comprehensive Fixed Income Solution ◼ We are well established in the fixed income market, providing income solutions for all "risk vs reward" appetites. ◼ We continue to engage with our business partners, to Bond increase the deal flow with their clients. Already this group Trading includes ANZPB, H
Slide 19: Diversified lines of business revenue
Diversified lines of business revenue An Australian fixed income house, building an investor base capable of placing institutional sized deals. Debt Capital Markets Secondary Investment Direct loan Trustee (DCM) Grade investments ▪ Debt capital markets - ▪ Over 2000 wholesale ▪ Both primary and ▪ Wh
Slide 20: Select Transaction Experience
Select Transaction Experience* Primary Public Bond (IAM Participation) ANZ 6.124 39s NAB 6.342 39s MQGAU Float HSBC Mar 34 QBE Float 35s LLOYDS Float $1.9B $800M $900M $850m $400m $500m IAM: $180M IAM: $125M IAM: $80M IAM: $70M IAM: $50M IAM: $35M Corporate Loan (IAM Participation) IMC (Illawarra) T
Slide 21: Revenue / Expenses
Two trends are emerging driving confidence towards profitability Revenue quality is improving off the back of continued growth Cost reductions through external administration will enable in client accounts and secondary trading activity. better customer experience at significantly lower cost. ◼ Whol
Slide 22: Organic growth drivers & initiatives
Organic growth drivers & initiatives Distribution partners Expand network through existing and new distribution partners IAMs partnership with Perpetual will not only be a cost benefit. The company believes that existing clients will invest more Existing clients capital driven by trust in Perpetuals
Slide 23: Product growth initiatives
Product growth initiatives Syndicated Loans & Direct Single-Bond Exchange Traded Residential Mortgage Backed Credit Funds Securities (RMBS) IAM is targeting large senior secured bank syndicated term loans to large Listed Single Bond ETFs offer investors corporates with significant assets, easy acces
Slide 24: Large Potential Opportunity as Hybrids Cease in 2027
Large Potential Opportunity as Hybrids Cease in 2027 Single bond ETFs can provide easy access for wholesale and retail investors to the debt markets Opportunity ▪ Bank subordinated bonds or "Tier 2" (T2) sit above Tier 1 or Hybrids in the capital stack, yet trade at very similar margins. In Septembe
Slide 25: Investment Overview
Investment Overview Looking ahead, IAM is well positioned to take advantage of strong tailwinds in the fixed income sector Individual investor appetite for fixed income product is growing, supported by more people moving to the Strong Industry retirement phase of superannuation. RBA expected to be c
Slide 26: Key Risks
Key Risks
Slide 27: Key Risks
Key Risks This section describes some of the key risks associated with an investment in IAM. IAM's business is subject to a number of risk factors both specific to its business and of a general nature which may impact on its future performance. Before subscribing for New Shares, prospective investor
Slide 28: Key Risks
Key Risks Key personnel risk The Company’s operating and financial performance is dependent on the ability to attract and retain high quality and experienced personnel to operating and grow the business. The loss of personnel may adversely affect IAM's operating and financial performance. Competitio
Slide 29: Key Risks
Key Risks Future capital needs Further funding may be required to advance the business objectives of IAM or for working capital purposes. There is a risk that despite efforts from IAM, expansion efforts will fail, which will adversely affect IAM's growth, business and financial performance. Moreover
Slide 30: Key Risks
Key Risks General investment risks continued Underwriting risk The Rights Issue is fully underwritten by Blue Ocean Equities Pty Limited and Morgans Corporate Limited ("JLMs") pursuant to the terms of the underwriting agreement summarised in Appendix B of this presentation ("Underwriting Agreement")
Slide 31: Key Risks
Key Risks Selling or transferring If a Shareholder does not wish to take up their Entitlements, they can sell them on ASX or transfer them to another person or entity Entitlements under the other than on ASX during the Entitlement Trading Period. Offer Prices obtainable for Entitlements may rise and
Slide 32: Appendix A: Foreign Selling Restrictions
Appendix A Foreign Selling Restrictions
Slide 33: Foreign Selling Restrictions
Foreign Selling Restrictions This document does not constitute an offer of New Shares in any jurisdiction in which it would be unlawful. In particular, this document may not be distributed to any person, and the New Shares may not be offered or sold, in any country outside Australia except to the ex
Slide 34: Foreign Selling Restrictions
Foreign Selling Restrictions United Kingdom Neither this document nor any other document relating to the offer of New Shares has been delivered for approval to the Financial Conduct Authority in the United Kingdom and no prospectus (within the meaning of section 85 of the Financial Services and Mark
Slide 35: Appendix B: Summary of Underwriting Agreement
Appendix B Summary of Underwriting Agreement
Slide 36: Summary of Underwriting Agreement
Summary of Underwriting Agreement IAM has entered into a joint lead management and underwriting agreement with the Underwriters dated 14 October 2024. (Underwriting Agreement). The Underwriters have agreed to act as joint lead managers and bookrunners of the Offer and to severally underwrite the Ent
Slide 37: Summary of Underwriting Agreement
Summary of Underwriting Agreement • either of the Underwriters may, by notice given to IAM and the other Underwriter, and without cost or liability, immediately terminate if any on the occurrence of certain events occurs or has occurred at any time before 4.00pm on the Entitlement Offer Settlement D
Slide 38: Sub-underwriting Agreement
Sub-underwriting Agreement The Underwriters have entered into sub-underwriting agreements for the Rights Issue with Regal Funds Management Pty Ltd and Jamplat Pty Ltd (Sub-Underwriters). The Sub-Underwriters have committed to sub-underwrite the Rights Issue up to a maximum of $5.0 million each, less
Slide 39: Contact us
Contact us P: 1300 784 132 E: sales@incomeam.com W: incomeam.com
Slide 40: Glossary
Glossary ABS Asset Backed Securities DCM Debt Capital Markets ETF Exchange Traded Fund FUA Funds Under Administration HY High Yield IAM Income Asset Management IG Investment Grade OTC Over the Counter pcp Previous corresponding period pcm Per calendar month RBA Reserve Bank of Australia RMBS Residen
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