Pacific Current Group Ltd · ASX:PAC
Pacific Current — H1 2021 Earnings Presentation
24 slides from Pacific Current's earnings presentation, Feb 26, 2021
Slide 1: Pacific Current Group Half Year Results
Tacoma // Denver // Sydney // Melbourne 26 February 2021 Company Announcement for Immediate Release (ASX Code: PAC) PACIFIC CURRENT GROUP HALF YEAR RESULTS Six months ended 31 December 2020 SYDNEY (26 February 2021) - Pacific Current Group (ASX: PAC, “Pacific Current” or “Company”) is pleased to rep
Slide 2: Pacific Current Group Half Year Results
PACIFIC CURRENT GROUP HALF YEAR RESULTS 26 February 2021 Total FUM represents the aggregate FUM of all Pacific Current boutiques as if each boutique were 100% owned by PAC and excludes boutiques sold during the year. Note that the relationship between FUM and the economic benefits received by PAC ca
Slide 3: Conference Call
PACIFIC CURRENT GROUP HALF YEAR RESULTS 26 February 2021 CONFERENCE CALL Investors and analysts are invited to participate in a conference call on Monday, 1 March 2021 at 10:00am AEDT. The call will be hosted by Pacific Current Group’s MD & CEO and CIO, Paul Greenwood and CFO, Ashley Killick. The di
Slide 4: Half Year Results
H A L F 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 26 February 2021
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: Performance Snapshot
PERFORMANCE SNAPSHOT The business achieved record FUM and a steady fully franked interim dividend FUM (A$b) Underlying EPS Dividends Per Share (Fully Franked) 25 113 28 15 93 23 57 17 10 10 10 FY19 FY20 1H21 1H19 1H20 1H21 FY19 FY20 FY21 Interim Final » Strong investment performance, particularly »
Slide 7: Underlying Profit Drivers
UNDERLYING PROFIT DRIVERS Growth in management fee revenues offset by lower performance fees Underlying Revenue ($m) Underlying Corporate Expenses ($m) Underlying Profitability ($m) 30 12 20 10 15 20 8 6 10 10.4 9.2 15.9 10 4 7.5 13.7 6.3 6.9 10.9 5.0 5 9.1 9.9 2 6.6 0 0 0 AUD USD AUD USD AUD USD 1H
Slide 8: Management Fee Profitability
MANAGEMENT FEE PROFITABILITY An increasing portion of PAC’s profits are derived from management fee revenues Management Fee Profitability (A$m) 35 » Management fee profitability (management fee revenues, 30 excluding performance fees, less underlying PAC operating expenses) continues to grow and bec
Slide 9: Operational Performance
OPERATIONAL PERFORMANCE one PACIFIC CURRENT GROUP
Slide 10: Portfolio Company Highlights
PORTFOLIO COMPANY HIGHLIGHTS Boutique level developments were largely related to companies adapting to the current environment Carlisle » Carlisle is restructuring its open-end Long Term Growth Fund (LTGF) due to COVID-19 induced redemptions and lower liquidity in the space. While a modest amount of
Slide 11: New Investments
NEW INVESTMENTS PAC announced an investment into Astarte in 1H21* London-based alternative investment manager focused on private markets real asset strategies. Profile: Astarte’s model is distinctive in that it provides anchor/seed LP capital, working capital, and strategic support to operating expe
Slide 12: FUM Growth by Manager
FUM GROWTH BY MANAGER Growth was widespread in 1H21, with 7 of 9 investment managers increasing FUM Tier 1 Boutiques (A$b) Tier 2 Boutiques (A$b) 70% $86.9 60% 50% 40% $1.8 1H21 Growth 30% 20% $4.2 $7.2 $4.5 10% $2.5 $2.0 0% $3.0 $0.6 -10% -20% Aether Carlisle GQG Proterra* Victory Blackcrane EAM RO
Slide 13: Investment Opportunities
INVESTMENT OPPORTUNITIES Significant acceleration in PAC deal flow during 1H21 Opportunities by Asset Class Average Deal Size by Asset Class (US$m) Infra, » PAC has a strong pipeline of high-quality Public Equity (long only) Private 5% investment opportunities 9.2 Real Estate, 9% » 170+ opportunitie
Slide 14: Outlook
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Slide 15: Outlook
OUTLOOK PAC expects continued progress in the portfolio and accelerating fundraising across its boutiques Operational Outlook Financial Outlook » Growth prospects look strong across the portfolio. » Expect growing management fee profitability All boutiques that deferred capital raising efforts (mana
Slide 16: Appendices
APPENDICES
Slide 17: 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 50,817,9
Slide 18: Statutory Profit & Loss
STATUTORY PROFIT & LOSS A$000s 1H20 1H21 » Results include the revenues and expenses of operating subsidiaries (i.e. Seizert (until 30 Nov 2020 sale date), Aether, and SCI) Revenue from operations 18,483 12,398 » Amortisation expenses include ARA V Management rights Distributions and dividend income
Slide 19: Statutory to Underlying Reconciliation
STATUTORY TO UNDERLYING RECONCILIATION » Reported results impacted by extraordinary/non-cash items A$000s 1H20 1H21 Reported NPBT (13,342) 15,165 » Legal, deal costs, and break fee – these are related primarily to investment diligence, rejected acquisition offer (1H20), and pending Non-cash items de
Slide 20: Underlying Profit Drivers
UNDERLYING PROFIT DRIVERS » Corporate revenues declined due to multi-year commission income running off, A$000s 1H20 1H21 offset partially by reduced commission expense payments Revenue 2,603 1,620 » Covid-19 impacted travel and marketing expenses Employment 3,846 3,793 » There has been no Nereus sh
Slide 21: Underlying Functional P&L Summary
UNDERLYING FUNCTIONAL P&L SUMMARY 1H21 » Revenues and Expenses broken out by functional area to shed light on 1H20 A$000s Investment Sales Group Total profitability of different business segments Revenues » Investment, Sales, and Group expenses reflect costs for those functional areas, Share of Prof
Slide 22: Statutory Balance Sheet
STATUTORY BALANCE SHEET » Reflects the consolidation of corporate admin and operating subsidiaries (i.e. Book Value (A$000s) 30 Jun 20 31 Dec 20 Aether and SCI), Seizert was removed from 31 Dec 20 balance sheet due to Cash 20,154 26,082 disposal in November 2020 Other Current Assets 21,705 20,444 »
Slide 23: Alternate Balance Sheet
ALTERNATE BALANCE SHEET Book Value (A$000s) 30 Jun 20 31 Dec 20 » Reflects deconsolidation of operating subsidiaries (i.e. Aether, Seizert, and SCI) to present PAC on a “look through” basis Cash 7,431 18,698 » Investable cash balance assumes that all current assets and liabilities have been Other Cu
Slide 24: Statutory Cashflow
STATUTORY CASHFLOW A$000s 1H20 1H21 » Increased distributions from Boutiques resulted in an improved Cash flow from operations in 1H21 Operating cash flow » Increased investments in IFP and CAMG during 1H21 totalled A$1.2m Net receipts from customers/suppliers/financiers (254) (1,848) while 1H20 inv
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