Pengana Capital Group Ltd. · ASX:PCG
Pengana Capital — H1 FY2022 Earnings Presentation
19 slides from Pengana Capital's earnings presentation, Feb 25, 2022
Slide 1: Pengana Capital Group Shareholder Presentation
PENGANA CAPITAL GROUP SHAREHOLDER PRESENTATION FOR THE HALF YEAR ENDED 31 DECEMBER 2021 Russel Pillemer Katrina Glendinning Chief Executive Officer Chief Financial Officer
Slide 2: Table of Contents
TABLE OF CONTENTS 1. Business Overview 2. Half-Year Review 3. Outlook
Slide 3: Business Overview
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Slide 4: Pengana Capital Group Overview
PENGANA CAPITAL GROUP OVERVIEW • Leading Australian provider of premium, value added products • Focused on the higher-end retail market: advisors; SMSF’s; and HNW’s • Recognised and well-regarded brand built over 18 years • >$4bn of funds under management (“FUM”) as at 31 December 2021 • Unique fund
Slide 5: Key Attractions
KEY ATTRACTIONS • FUM diversified across: strategies/funds; geographies; market-caps; listed and private equity • Compelling long-term returns across the range of strategies • Well-rated by research houses; availability across all advisor platforms • Recognised brand with loyal client base of financ
Slide 6: Compelling Track Records with Capacity to Grow
COMPELLING TRACK RECORDS WITH CAPACITY TO GROW (AS AT 31/12/2021) Indicative Performance Since Inception p.a. 13 Primary Fund/Vehicle Name Strategy Team FUM Further FUM Current Capacity Fund Benchmark Relative ($m) ($bn) % % % Pengana Australian Equities1 Australian Multi Caps Internal 958 Limited 1
Slide 7: Growth in Funds Under Management
GROWTH IN FUNDS UNDER MANAGEMENT (“FUM”) 1 • Focus over the past few years has been on re-positioning Historical Growth in FUM ($m)2 the business for future FUM growth at higher margins $4,500 $4,170 $3,974 • Business currently experiencing FUM growth from both $4,000 investment returns as well as i
Slide 8: Annual Gross Fee Margin
ANNUAL GROSS FEE MARGIN 3.5% 3.23% Restructuring over past few years designed to lead to higher and 3.0% diversified sources of performance fees 2.97% 2.5% 2.20% 2.11% 2.11% 2.0% 1.69% 1.56% 1.5% 1.33% 1.40% 1.0% 1.18% 1.15% 1.12% 1.15% 1.14% 1.16% 1.11% 1.13% 0.5% FY 2015 FY 2016 FY 2017 FY 2018 FY
Slide 9: Analysis of Management Fees
ANALYSIS OF MANAGEMENT FEES (AS AT 31/12/2021) Management Fee Split in H1 FY2022 • $4.2bn of funds under management (“FUM”) subject to Blank 1 ($23.4m) Blank 2 management fees (31/12/2022) 0% • Average gross management fee rate of 1.1% • Management fees of $23.4m in H1 FY2022 split: Investment • 43%
Slide 10: Analysis of Performance Fees
ANALYSIS OF PERFORMANCE FEES (AS AT 31/12/2021) FUM subject to Performance Fees • Well diversified sources of performance fees (“PFs”) provide added stability ($3.1bn) • Absolute hurdles (higher level of certainty and consistency): 44% • Market Relative hurdles – (predominantly) Style Agnostic strat
Slide 11: H1 2022 in Review
SECTION 3 fa PENGANA CAPITAL, H1 2022 IN REVIEW
Slide 12: Key Developments in H1 FY 2022
KEY DEVELOPMENTS IN H1 FY 2022 • Growth in FUM and management fees • Diversification of revenue • Substantial returns to investors in PE1 with stable and strong performance fees • Further strengthening of distribution team • Flat operational expenses – continual focus on digitalization, process impr
Slide 13: Financial Performance in Half-Year to 31/12/2021
FINANCIAL PERFORMANCE IN HALF-YEAR TO 31/12/2021 • FUM up 5% to $4.2bn • Operating EBITA up 174% to $22.6m • Comprehensive Income before tax up 152% to $25.2m • EPS on Comprehensive Income after tax up 150% to 16.23 cents • NTA per share up 21% to 66.22 cents • Interim dividend per share up 140% fro
Slide 14: EBITDA, Underlying Profit and Comprehensive Income
EBITDA, UNDERLYING PROFIT AND COMPREHENSIVE INCOME1 Increase/ Increase/ Dec 2021 Dec 2020 Pengana Capital Group Operating EBITDA (Decrease) (Decrease) Comment $’000 $’000 $’000 % Management fee revenue 23,433 19,714 3,719 18.86% Growth in FUM and margin; 70% to PCG Strong contribution from Emerging
Slide 15: Statutory Profit
STATUTORY PROFIT Pengana Capital Group ($’000) Dec 2021 Dec 2020 Comprehensive profit before tax1 25,183 9, 987 Less: Less: investment gains recorded in other comprehensive income reserve (1,311) (1,699) Less: Non-cash amortisation and impairment (1,361) (2,139) Less: LSP interest income (not on pro
Slide 16: Balance Sheet
BALANCE SHEET1 Pengana Capital Group Balance Sheet ($’000) 31 December 2021 30 June 2021 Cash net of AFSL cash requirements 20,467 16,569 Receivables 35,656 22,214 Liabilities (29,000) (22,722) Net working capital 27,124 16,061 Investments net of AFSL liquid asset requirements and associated current
Slide 17: Outlook
OUTLOOK • Difficult start to calendar year for financial markets • FUM at 31 January 2022 of $3,828 million • Net flows in calendar 2022 remain positive • Listed products continue to trade close to their NAV • Robust balance sheet and diversified income streams • Current market volatility presents o
Slide 18: Disclaimer
DISCLAIMER This presentation has been prepared by Pengana Capital Group Limited (ABN 43 059 300 426) (PCG). The information in this presentation is current as at 25 February 2022. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with resp
Slide 19: Pengana Capital Group Limited
PENGANA CAPITAL GROUP LIMITED ABN 43 059 300 426 Levels 1, 2 & 3 60 Martin Place Sydney T: +61 2 8524 9917 E: clientservice@Pengana.com PENGANA.COM
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