Slide 1: FY22 Financial Results Presentation
PRESENTED BY FY22 Financial Results Presentation Anthony Wamsteker CEO David Coulter CFO Praemium Limited ACN 098 405 826 31 August 2022
Slide 2: Disclaimer
Disclaimer The material contained in this document is a presentation of general information about materially positive or negative manner. Forecasts and hypothetical examples are subject the Praemium Group’s activities current as at the date of this presentation (31 August to uncertainty and continge
Slide 3: Agenda
Agenda • FY22 Business Highlights – Anthony Wamsteker • FY22 Financial Results – David Coulter • Looking Forward Anthony Wamsteker David Coulter – Anthony Wamsteker CEO CFO • Questions 3
Slide 4: Business Highlights
Business Highlights INDBARARARARARAAAARE WALARALRARAROARADADAGY IIOCOOOAAAARARARAARARAG
Slide 5: FY22 business highlights
FY22 business highlights $16.6m Record EBITDA (underlying) • Strong revenue growth • HoH cost discipline $2.9b • Higher margin SMA generated Record annual inflows $2.0b net inflow from $6.9b base • 15% 5 year CAGR for Platform FUA $40.5b Scalable Australian FUA • Market leading $21.0b VMAAS non-cust
Slide 6: Delivering for shareholders
Delivering for shareholders 6
Slide 7: Corporate objectives
© Corporate objectives Deliver customer value and sustainable growth Attract and retain market-leading people Continue to deliver Australia’s HNW platform of choice Support the evolution of advice Maintain an in-depth knowledge of the Australian market and our clients’ businesses Deliver strategic s
Slide 8: Value & Growth – organic FUA
Value & Growth – organic FUA 4,000 Aus platform inflows, net ($m) PWL Net Flows 3,000 SMA • Overall Platform $2,938m - up 92% 2,000 1,000 • SMA $1,997m 0 FY16 FY17 FY18 FY19 FY20 FY21 FY22 • Powerwrap $941m -1,000 -2,000 • Market movement $(1,841m) 50,000 FUA FUA VMAAS ($m) SMA • 15% Platform FUA CA
Slide 9: Value and Growth - International divestment
Value and Growth - International divestment • Methodical and committed value realisation • $45.7 million profit on sale from $62 million proceeds • 2022 losses $5.9 million (2021 losses: $6.0 million) • Deployment of funds for immediate (special dividend) and ongoing (buy-back) shareholder benefit •
Slide 10: Attract and retain people
Attract and retain people Completed Employee choice Measure engagement Investment in executive hybrid working and embed feedback talent acquisition leadership model supports into our people and people and tools refresh retention and culture strategy to increase our attraction of sourcing capacity St
Slide 11: Maintain Leadership - Award winning technology innovations
Maintain Leadership - Award winning technology innovations *Investment Trends Competitive Analysis and Platform Benchmarking Survey 2022 11
Slide 12: Support the advice community
Support the advice community Engagement with Thought leadership and Realign national key customers on research insights on sales team to focus adopting machine HNW investors and on ideal client profile learning, improved managed accounts for the modern reporting and other delivered to 11 dealer soph
Slide 13: Financial Results
Financial Results INDBARARARARARAAAARE WALARALRARAROARADADAGY IIOCOOOAAAARARARAARARAG
Slide 14: Group financial results FY22
Group financial results FY22 Group Financial Results $ % ($m) FY22 FY21 change change Revenue (net) 79.7 65.4 14.3 22 Cost of operations (24.2) (19.8) (4.4) (22) • 22% revenue growth due to: Gross margin 55.5 45.6 9.9 22 » Organic FUA growth GM % of net revenue 69.6% 69.7% (0.1)% » Strong rate of gr
Slide 15: Australian segment results (continuing business)
Australian segment results (continuing business) Australia results $m FY22 FY21 $ change % change • Underlying trends as per Group: Platform 45.9 36.2 9.7 27 » Organic FUA growth Portfolio services 17.5 16.5 1.0 6 » Higher rate of growth in Planning software 0.1 0.1 - 0 higher margin SMA Revenue 63.
Slide 16: Australian segment EBITDA (continuing business)
Australian segment EBITDA (continuing business) EBITDA $19.1m (up 7%) AUS EBITDA (underlying), $m 28.0 • Net $7.0m uplift from higher FUA and 7.0 additional 2 months of Powerwrap 1.4 (FY22 EBITDA $7.9m) » 22% revenue growth backed by 21.0 (2.0) ( 2.7 ) ( 0.6 ) record annual net inflows to ( 1.2 ) (
Slide 17: Platform Revenue Margins
Platform Revenue Margins 0.40% Revenue Margins by Platform SMA PWL Total Platform 0.35% 0.34% • Positive May – 0.33% 0.32% June cash rate 0.30% 0.31% 0.30% 0.31% 0.31% 0.30% 0.31% impact ongoing 0.29% 0.29% 0.28% into FY23 0.28% 0.25% 0.25% • Other movements 0.24% 0.23% 0.24% broadly in line 0.23% 0
Slide 18: Cashflow
Cashflow Cashflow ($m) FY22 FY21 • Net operating inflow of $10.4m million, Operating cashflow 16.6 12.6 impacted by divestment and restructuring R&D incentive - 0.8 costs, augmented by divestment proceeds Tax paid (1.5) (4.2) One-off costs (4.7) (3.3) • Operating cashflow of $16.6m matches Underlyin
Slide 19: Balance Sheet
Balance Sheet Balance Sheet ($m) Jun 22 Jun 21 • Strong cash reserves includes Cash 80.5 26.7 net divestment proceeds pre Receivables 7.3 9.0 $25.8m special dividend Financial assets 3.6 5.3 Intangibles 58.4 64.3 • Group regulatory cash Other assets 7.1 7.1 requirement of $15.0m Assets 156.9 112.5 •
Slide 20: Looking forward
Looking forward INDBARARARARARAAAARE WALARALRARAROARADADAGY INOAAATNANAANAAAATAAAAAATANAAAANES
Slide 21: Growing market share in our core markets
Growing market share in our core markets 21
Slide 22: Strategic focus on our core competencies
Strategic focus on our core competencies 22
Slide 23: Continued improvement and enhancement of our proposition
Continued improvement and enhancement of our proposition 23
Slide 24: Questions
Questions INDBARARARARARAAAARE WAAAY INOAAATNANAANAAAATAAAAAATANAAAANES
Slide 25: Contact us
(¥) twitter.com/praemium (in) linkedin.com/praemium (2 preemium contact us Level 19, 367 Collins Street, Melbourne, VIC 3000 Ph: 1800 571 881 E: support@praemium.com.au praemium.com.au 25