Pacific Current Group Ltd · ASX:PAC
Pacific Current — H1 2020 Earnings Presentation
29 slides from Pacific Current's earnings presentation, Feb 28, 2020
Slide 1: Pacific Current Group Half Year 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 2020 Company Announcement for Immediate Release (ASX Code: PAC) PACIFIC CURRENT GROUP HALF YEAR RESULTS Six months ended 31 December 2019 SYDNEY (28 February 2020)
Slide 2: Portfolio Company Highlights
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 PORTFOLIO COMPANY HIGHLIGHTS Total funds under management (FUM) at 31 December 2019 were A$73.0bn, a 15.9% increase since 30 June, adjusting for the sale of FIM and the additio
Slide 3: CEO comment and reference to presentation
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 Managing Director & CEO and CIO, Mr. Paul Greenwood added, “We are pleased with the progress of the business during the period. The fact that for the first time
Slide 4: 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 CONFERENCE CALL Investors and analysts are invited to participate in a conference call on Monday, 2 March 2020 at 9:00am AEDT. The call will be hosted by Pacific Current Group’
Slide 5: Half Year 2020 Results
H a l f Ye a r 2 0 2 0 R e s u l t s PRESENTERS: Paul Greenwood, Managing Director & CEO and CIO Ashley Killick, CFO 28 February 2020 Firm Overview
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: Agenda
Agenda ❯ Overview ❯ Portfolio Update ❯ Financials ❯ Questions ❯ Appendix // 3
Slide 8: Overview
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Slide 9: 1H20 Overview
1H20 Overview Portfolio growth and cost controls driving higher profits ❯ Strong financial results due to solid revenue growth and lower operating expenses ❯ Underlying results consistent with previous guidance. Full year results tracking to high end of guidance ❯ Expect limited impact on FY20 resul
Slide 10: 1H20 Highlights
1H20 Highlights Significant growth and portfolio activity ❯ Financial Performance • Strong growth with underlying NPBT growing A$15.9m vs. A$9.1m in 1H19 and NPAT of A$13.3m (A$0.28 per share) vs. A$7.9m (A$0.17 per share) in 1H19 • Reported statutory NPBT of A$13.3m loss compared to A$61.8m profit
Slide 11: Overview – Investment Opportunities
Overview – Investment Opportunities ❯ Deal flow remains robust, with over 130 deal opportunities reviewed in the last 12 months. More than A$65m has been deployed since 30 June 2019 ❯ PAC continues to emphasize firms with private capital strategies and highly visible revenues—over 40% of deal opport
Slide 12: Portfolio Update
P O R T F O L I O U P D AT E
Slide 13: Portfolio Company Performance Update
Portfolio Company Performance Update ❯ Generally strong year of investment performance across the portfolio ❯ Most private capital strategies performed well, though managers exposed to commodity pricing (Aether and Proterra) were adversely impacted ❯ Among active equity managers very strong performa
Slide 14: Portfolio Company Update
Portfolio Company Update ❯ Victory Park • Though having grown slower than initially expected, new business prospects appear strong, with approximately A$200m of new commitments already secured in 2020. • For accounting purposes, PAC bifurcates Victory Park investment between management company and c
Slide 15: FUM June 2019 vs. December 2019
Portfolio Company Update FUM 30 June 2019 vs. 31 December 2019 (in each manager’s home currency) Tier 1 Boutiques Tier 2 Boutiques 35 7 -3% Billions Billions 23% 30 6 25 5 20 4 15 3 -1% 115% 10 2 15% 5 1 13% 23% -5% 9% 2% -12% -35% - - 30/06/2019 31/12/2019 30/06/2019 31/12/2019 * Proterra – PAC inv
Slide 16: Quarterly FUM progress
Portfolio Company Update Quarterly FUM progress (excluding boutiques sold during the period) 80 Billions +9% SCI +9% 70 ROC +10% EAM 60 +13% Blackcrane Alphashares +5% 50 +12% Pennybacker (Pre acquisition) +5% Pennybacker +9% 40 +10% Victory Park (Pre acquisition) +18% Victory Park 30 Seizert Proter
Slide 17: Expanding PAC's Diversification
Expanding PAC’s Diversification FUM by Vehicle Type 80 A$ Billions ❯ A growing portion of portfolio company FUM is in closed 70 end structures versus open end accounts 60 ❯ A majority of current revenues come from strategies not 50 40 focused on public equities 30 ❯ Growing contributions from Europe
Slide 18: Financial Results
1 H 2 0 F I N A N C I A L R E S U LT S Ashley Killick, CFO
Slide 19: 1H20 Financial Results Summary
1H20 Financial Results Summary » Total FUM of boutiques reaches A$73.0bn Up A$9.1bn from 30 June 19 (excluding boutiques sold/acquired FUM A$73.0 bn 1 15.9% during the year) Net inflows of A$6.1bn with growth from Aether, Carlisle and GQG » Equity attributable to members of A$382.8m Equity A$382.8m
Slide 20: Underlying Functional P&L Summary
Underlying Functional P&L Summary 1H20 ❯ Revenues and Expenses broken out by functional FY19 FY18 area to shed light on profitability of different (A$m) Investment Sales Group Total business segments Revenues ❯ Investment, Sales, and Group expenses reflect costs for those functional areas, including
Slide 21: Questions
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Slide 22: Appendix
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Slide 23: Boutique Results
Boutique Results Tier 1 Boutiques Tier 2 Boutiques 1H20 1H19* Change 1H20 1H19* Change FUM as at 31 Dec A$57.8b A$30.9b +87.1% FUM as at 30 June A$15.3b A$13.4b +14.2% Adjusted FUM as at 31 Dec1 A$50.1b A$30.9b +62.1% Adjusted FUM as at 31 Dec1 A$12.9b A$12.5b +3.2% PAC Share of underlying profits /
Slide 24: 1H20 Financial Results Snapshot
1H20 Financial Results Snapshot 1H20 1H19 Change ❯ During the period PAC made investments in Proterra and Pennybacker and disposed of FUM at 31 Dec1 Freehold Investment Management - Reported A$73.0b A$44.3b +64.8% ❯ Equity increased slightly. FV gains through OCI - Adjusted2 A$62.6b A$43.8b +43.0% (
Slide 25: Statutory Profit & Loss
Statutory Profit & Loss 1H20 1H19 Change ❯ Results include the revenues and expenses of operating subsidiaries (i.e. Seizert, Aether and SCI) (A$m) (A$m) % Revenue from operations 18.5 19.3 (4.1) ❯ Dividends from Carlisle causes Other Income to improve Other income 11.4 6.7 70.1 Gains on investment
Slide 26: Statutory to Underlying Reconciliation
Statutory to Underlying Reconciliation 1H20 1H19 Change ❯ Reported results impacted by extraordinary items (A$m) (A$m) % ❯ Impairment of investment in 1H20 relates to Seizert Reported NPBT (13.3) 61.8 (121.5) and Victory Park Non-cash items ❯ The increased value of investments held at FVTPL Impairme
Slide 27: Underlying Profit & Loss
Underlying Profit & Loss 1H20 1H19 Change ❯ Restated P&L on a ‘look-through’ basis adjusted for one-off/non-cash items. Excludes non-recurring (A$m) (A$m) % and/or non-cash items to show underlying business Revenue 2.6 3.7 (29.7) performance. Employment expenses 4.6 4.8 (4.2) ❯ The contributions Aet
Slide 28: Statutory Balance Sheet
Statutory Balance Sheet Book Value (A$m) 31 December 2019 30 June 2019 ❯ Reflects the consolidation of corporate admin and operating subsidiaries (i.e. Aether, Seizert and SCI) Cash 13.0 80.2 Other Current Assets 18.4 25.2 ❯ The acquisition of Proterra and Pennybacker, as well as the settlement of S
Slide 29: Alternate Balance Sheet
Alternate Balance Sheet Book Value (A$m) 31 December 2019 30 June 2019 ❯ Reflects the deconsolidation of operating subsidiaries (i.e. Aether, Seizert and SCI) effectively Cash 4.8 68.3 presenting PAC on a “look through” basis Other Current Assets 11.6 15.7 ❯ Investable cash balance assumes that all
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