Slide 1: Pacific Current Group Interim Results
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 28 February 2017 PACIFIC CURRENT GROUP INTERIM RESULTS Period ended 31 December 2016 HIGHLIGHTS PAC underlying NPAT of A$5.8m for half year; The growth of GQG over the six
Slide 2: Valuation reviews and operational results
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 during the period. The Board will consider further divestment of non-core investments subject to pricing and terms. A review of the portfolio companies owned by the Trust resul
Slide 3: Portfolio and FUM update; Trust financial results
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 The period also saw growth in firms such as Blackcrane Capital, LLC and EAM Global Investors, LLC. Management is optimistic about the additional growth of both firms based on F
Slide 4: Financial results for PAC
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 Although it has finalized and commissioned two projects, Nereus was impaired due to the delay in the commissioning of two additional solar projects in India and the failure to
Slide 5: Management commentary and conference call
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 Pacific Current President, North America & Global CIO, Paul Greenwood added: “The last six months showed that we made significant progress on numerous fronts. Proven businesses
Slide 6: Contact
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 CONTACT For Investor Enquiries: Paul Greenwood President, North America & Global CIO (+1) (253) 617-7815 For Media Inquiries in the US: Chris Sullivan MacMillan Communications
Slide 7: Interim Results
Interim Results For the half year ended 31 December 2016 Presenters Paul Greenwood, President North America and Global CIO Joseph Ferragina, Chief Financial Officer and COO Tony Robinson, Executive Director A S X : PA C 28 February 2017
Slide 8: Disclaimer
Disclaimer The information in this presentation is general information about Pacific Current Group 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 Pacific Current Group Limited, nor
Slide 9: Agenda
Agenda 1. Overview 2. Portfolio Performance 3. FUM Analysis 4. PAC Interim Results 5. Aurora Trust Interim Results 6. Restructure and Simplification 7. Summary 8. Q & A ASX: PAC // 3
Slide 10: Overview
1 OVERVIEW ASX: PAC // 4
Slide 11: Interim Highlights
Interim Highlights First Half of FY2017 Achievements: • PAC underlying profit after tax of A$5.8m, Aurora Trust underlying profit of A$10.8m for the half year • Conditional agreement reached on restructure and simplification with explanatory memorandum and notice of meeting issued. Awaiting sharehol
Slide 12: Progress on Strategic Plan
Progress on Strategic Plan 1 Simplify business and › EGM scheduled for 15 March 2017 to finalize restructure and structure simplification › Sold Raven and Aubrey. May sell one or two more smaller portfolio companies 2 Further diversify into › Final payment made to acquire a 23.4% interest in Aperio
Slide 13: Financial Results Summary
Financial Results Summary For the half year ended 31 December 2016 A$ million 31 Dec 2016 31 Dec 2015 % change PAC Statutory profit / (loss) 2.2 (10.0) n/a Underlying profit 5.8 5.7 1.8% Underlying EPS (cents) 20.8 20.6 1.0% Interim dividend - 20.0cps n/a Trust Statutory profit / (loss) 5.5 (20.5) n
Slide 14: Operational Results
Operational Results ❯ Portfolio is well positioned in many companies with strong growth prospects. For example, Aether successfully closed Fund IV and its first co-invest Fund. IML is steadily growing, while Aperio’s growth has resumed after last quarter’s outflows. GQG is experiencing very rapid gr
Slide 15: Valuations and Impairments
Valuations and Impairments ❯ Revaluation increment of A$9.9m with respect to GQG following strong start and encouraging prospects (increment posted through reserves on Aurora Trust balance sheet) ❯ Revaluation gain of the X RPU of A$15.3m ❯ Total impairment charge of A$11.4m at Aurora Trust from adj
Slide 16: Understanding Our Financial Results
Understanding Our Financial Results ❯ Pacific Current (PAC) is a listed corporation that owns 65% of the Aurora Trust (“Trust” or “Aurora”), which was established as a result of the merger between Treasury Group and Northern Lights Capital Partners in November 2014 ❯ Trust results reflect those rela
Slide 17: Portfolio Performance
2 PORTFOLIO PERFORMANCE ASX: PAC // 11
Slide 18: Core Boutiques
Core Boutiques Core Boutiques FUM as at 31 Dec 2016 A$42.8b* Revenue A$104.2m Contribution to Aurora A$16.4m Trust earnings Share of earnings to A$10.7m Pacific Current * FUM of private equity funds is based on capital commitments to each fund and does not reflect and return of capital to-date. ASX:
Slide 19: Core Boutiques
Core Boutiques ASSET GROWTH » Invested at firm inception in 2008, zero FUM USD 1,120 1,200 » 2010 closed on Fund I of US$127 million 898 898 » 2012 closed on Fund II of US$303 million » 2013 closed on Fund III and related fund of US$179 million 430 » 2016 closed on Fund IV raising US$255m & co-inves
Slide 20: Growth Boutiques
Growth Boutiques Growth Boutiques FUM as at 31 Dec 2016 A$6.7b* Revenue A$6.6m Contribution to Aurora (A$0.2m) Trust earnings Share of earnings to (A$0.1m) Pacific Current * FUM of private equity funds is based on capital commitments to each fund and does not reflect and return of capital to-date. A
Slide 21: Growth Boutiques
Growth Boutiques USD 390 » Invested in existing firm in 2014, FUM of approximately US$3 million 259 » Secured anchor investor (SEI) in 2014 and initiated global distribution 159 effort » 31 December 2016 FUM of US$390 million 30-Jun-15 30-Jun-16 31-Dec-16 USD 393 » Invested in existing firm in 2014
Slide 22: Other Boutiques
Other Boutiques Other Boutiques* FUM as at 31 Dec 2016 A$2.2b Revenue A$5.7m Contribution to Aurora A$0.2m Trust earnings Share of earnings to A$0.1m Pacific Current * Other than Nereus, none of these business require working capital support. ASX: PAC // 16
Slide 23: FUM Analysis
3 FUM ANALYSIS ASX: PAC // 17
Slide 24: Translating the Aurora Trust Portfolio
Translating the Aurora Trust Portfolio Total Contribution to Total FUM Total Revenue Earnings Core Boutiques $42.8b $104.2m $16.4m Growth Boutiques $6.7b $6.6m ($0.2m) Other Boutiques $2.2b $5.7m $0.2m TOTAL: $51.7b $116.5m $16.4m Total Portfolio FUM: $51.7b Total Portfolio Earnings to Aurora: $16.4
Slide 25: PAC Interim Results
4 PAC INTERIM RESULTS ASX: PAC // 19
Slide 26: Review of Interim Results
Review of Interim Results PAC Statutory P&L for six months to 31 December 2016 PAC PAC ❯ Statutory PAC Profit and loss primarily Statutory Statutory reflects share of profit and loss from Aurora P&L Highlights (A$m) 31 Dec 2016 31 Dec 2015 % Change Trust, the business operations of the Group Revenue
Slide 27: Significant Non-recurring Items
Significant Non-recurring Items Impairment charges, non-labour costs incurred as a result of restructure PAC P&L (A$m) 31 Dec 2016 31 Dec 2015 ❯ All non-recurring items are PAC’s share of expense/gain from Aurora Trust PAC Statutory Profit / (Loss) After Tax 2.2 (10.0) ❯ Impairment of investments ma
Slide 28: Dividends
Dividends Interim Dividend deferred Dividends: ❯ The board has declared no dividend for the half year in light of impending changes including: • EGM will be held on 15 March 2017 to seek shareholder approval on restructure and simplification. If approved by PAC shareholders and B shareholders, it wi
Slide 29: Aurora Trust Interim Results
5 AURORA TRUST INTERIM RESULTS ASX: PAC // 23
Slide 30: Aurora Trust – P&L
Aurora Trust – P&L 31 Dec 31 Dec % P&L Highlights (A$m) 2016 2015 change ❯ Revenue includes service fee revenue Revenue 3.1 2.2 40.9% ❯ Share of earnings from boutiques include Gain on sale of investments 1.1 10.2 (89.2%) Aether and Seizert Gain on revaluation of X-RPU 15.3 - n/a Share of earnings f
Slide 31: Aurora Trust – Underlying P&L
Aurora Trust – Underlying P&L Significant non-recurring items Aurora P&L (A$m) 31 Dec 2016 31 Dec 2015 Aurora Profit / (Loss) After Tax 5.5 (20.5) Gain on revaluation of X RPU (15.3) - ❯ Impairment of investments in Aether and Gain on sale of investments (1.1) (10.2) Nereus Impairment of investments
Slide 32: Aurora Trust – Balance Sheet
Aurora Trust – Balance Sheet Immediate focus on balance sheet Balance Sheet – Aurora Trust (A$m) 31 Dec 2016 Current Assets 32.8 ❯ PAC owned 65% of Aurora Trust as at 31 December 2016 Non-Current Assets ❯ Reflects consolidation of Aether Investment Partners, Available-for-sale investments 28.6 Seize
Slide 33: Details of Non-Current Liabilities
Details of Non-Current Liabilities Amount Name Maturity Notes (Face Value) Class X Redeemable US$21.0m 31 March 2018 Subject to changes to be approved by shareholders Preference Units* Promissory Notes US$17.5m 50% Nov ‘18 Vendor finance related to Seizert acquisition 50% Nov ’19 * If approved by sh
Slide 34: Financial Results of Boutiques
Financial Results of Boutiques Illustrative aggregation of portfolio P&L if all boutiques were 100% owned Aggregate P&L for 31 Dec 31 Dec % change ❯ Excludes Aurora management and operating costs Boutiques 2016 2015 and interest expense Year end FUM (A$bn) 51.7 30.9 67.3% (A$m) ❯ Aurora 1H16 share o
Slide 35: Restructure and Simplification
6 RESTRUCTURE AND SIMPLIFICATION ASX: PAC // 29
Slide 36: Restructure and Simplification
Restructure and Simplification EGM to be held on 15 March 2017 ❯ Principal goal to create simpler and more transparent structure for PAC while not materially shifting the value of the respective stakeholders: • Reduction in complexity and uncertainty • Reduction in potential conflicts among stakehol
Slide 37: Restructure and Simplification
Restructure and Simplification Before the Exchange Transaction Shareholders PAC ordinary shares PAC NLCP BNP Paribas XRPUs Class B/Class B-1 units Class A units XRPUs Aurora Trust After the Exchange Transaction Shareholders (including NLCP* and BNP Paribas NLCP and PAC BNP Paribas XRPUs Aurora * Inc
Slide 38: Summary
7 SUMMARY ASX: PAC // 32
Slide 39: Summary
Summary Transparent structure and positive outlook ahead ❯ Continue to reduce debt and strengthen balance sheet ❯ After completion of restructure our focus will be on growth and diversification ❯ Expect meaningful acceleration from Growth boutiques in CY17 ❯ We expect to realize additional cost savi
Slide 40: Q&A
8 Q&A ASX: PAC // 34