Praemium Ltd · ASX:PPS
Praemium — H1 2025 Earnings Presentation
29 slides from Praemium's earnings presentation, Feb 25, 2025
Slide 1: Half Year 2025 Financial Results
Half Year 2025 Financial Results Presented by Anthony Wamsteker CEO David Coulter CFO Praemium Limited ACN 098 405 826
Slide 2: Acknowledgement of Traditional Custodians of Country
At Praemium we acknowledge the Traditional Custodians of Country We pay our respect to their Elders past and present 2
Slide 3: Disclaimer
Disclaimer The material contained in this document is a presentation of general information about the Praemium Group’s activities current as at the date of this presentation (25 February 2025) and is supplementary to the Group’s previous ASX filings as applicable. It is provided in summary and does
Slide 4: Presenters
Presenters ▶ Business Highlights ▶ Results ▶ Investment Trends ▶ Strategy ▶ OneVue ▶ Stakeholders ▶ Financials, FUA and flows Anthony Wamsteker David Coulter CEO CFO ▶ Strategic and sectoral outlook ▶ Questions 4
Slide 5: Business Highlights
Business Highlights
Slide 6: HY25 business highlights
HY25 business Strong 32% revenue growth, flowing highlights through to underlying EBITDA ex OneVue No. 1 platform in 2 categories in 2024 Investment Trends Report $ 12.9 m HY EBITDA (underlying) $ 52.3 m Market-leading $31.9b Scope+ non- custody solution Revenue and other income Up 43% Up 32% Spectr
Slide 7: 2024 Investment Trends sustained strong performance
2024 Investment Trends sustained strong performance No. 1 in 2 key categories No. 1 in 18 sub-categories No. 3 platform overall 89% platform rating 7
Slide 8: Strategy progress update
Strategy progress update Acquisition Product Operations Customer Service Superannuation opportunities ▶ Spectrum ▶ Transfer of ▶ Improved adviser ▶ Workflow and ▶ OneVue launched with functions from onboarding process integration onboarded Armenia to India process underway improvements tracking to p
Slide 9: OneVue transition update
OneVue transition update Transition tracking to plan First earn-out statement issued NIL owed 15 January FUA below $3b threshold Emphasis on ensuring relationships are commercially sustainable Second earn-out statement to be issued after 15 October measurement date Expect FUA $2.5b - $3b at second e
Slide 10: Stakeholder engagement programme
Stakeholder engagement programme ▶ Launched Praemium Academy, encompassing all ▶ Enhanced Cybersecurity Framework aspects of employee wellbeing and development ▶ Cybersecurity webinar to advisers and firms to ▶ A new Career Framework aligned to our Values, build resilience and strengthen defences en
Slide 11: Financial Results
Financial Results
Slide 12: Group results
Group results Group results $m 1H25 1H24 $ change % change Platform 40.9 28.5 12.4 43 Portfolio services Revenue 10.5 51.4 10.0 38.5 0.5 12.9 5 33 Reconciles underlying Expense recovery Direct costs 1.7 (7.3) 1.4 (4.1) 0.3 (3.2) 19 (80) EBITDA to statutory profit Gross Profit 45.7 35.8 10.0 28 Cost
Slide 13: Group results ex OneVue
Group results ex OneVue Group results $m 1H25 2H24 $ change % change 1H24 $ change % change (ex OneVue) Platform 35.0 31.3 3.7 12 28.5 6.5 23 Portfolio services 10.5 10.5 - - 10.0 0.5 5 Revenue 45.5 41.8 3.7 12 38.5 7.0 18 Expense recovery 1.7 2.4 (0.8) (31) 1.4 0.3 19 Direct costs (5.4) (4.7) (0.8)
Slide 14: Platform revenue margins elevated by SMA repricing
Platform revenue margins elevated by SMA repricing 14 OneVue margin for the current half was 28 bps cf ex OneVue average of 28 bps
Slide 15: Net flows and FUA custody
Net flows and FUA FUA (DEC 24 V DEC 23) $30.2b - up 32% custody ▶ SMA $12.5b - up 20% ▶ Powerwrap $13.5b – up 8% $m ▶ OneVue $4.2b – acquired April 24 FUA 35,000 ▶ Spectrum $72m – launched Oct 24 30,000 ▶ 20% SMA FUA CAGR 5 years to Dec 24 25,000 20,000 NET FLOWS HY25 $510m – up $479m ▶ SMA $426m ne
Slide 16: Platform portfolios and revenue
Platform portfolios and revenue Average revenue per portfolio (average portfolio #) 1H 24 $628 (26,527) 1H 24 $2,673 (4,357) 2H 24 $704 (26,954) 2H 24 $2,815 (4,350) 1H 25 $839 (27,253) 1H 25 $2,781 (4,221) 16
Slide 17: Net flows and FUA non-custody
Net flows and FUA non-custody Reinvigorated growth in non-custodial $m Scope+ 35,000 10,000 30,000 9,000 services with 12 new client firms signed. 8,000 25,000 7,000 Scope 65,706, up from 64,384. Portfolios 20,000 6,000 5,000 15,000 4,000 10,000 3,000 2,000 Scope+ 9,416, up from 8,493. 5,000 1,000 -
Slide 18: Cashflow
Cashflow Cashflow ($m) HY25 HY24 Operating cashflow below EBITDA due to Operating cashflow 10.8 4.9 working capital and share plan deployment Tax paid (3.4) 2.6 One-off costs (2.2) (0.7) in a growth business Net operating cashflow 5.2 6.8 Intangible capex (3.7) (3.9) PAYG income tax returned to conv
Slide 19: Balance Sheet
Balance Sheet Balance Sheet ($m) Dec-24 Jun-24 Cash 37.3 44.3 Receivables 12.1 10.8 Strong balance sheet available to Financial assets 2.5 2.3 fund future growth Intangibles 69.7 68.8 Other assets 8.6 8.3 Assets 130.2 134.6 Group regulatory cash requirement Tax liabilities 1.3 2.5 remains $20m, incl
Slide 20: OneVue one-off costs
OneVue one-off costs Acquisition Integration ▶ $1.8m total ($1.5m forecast at deal stage) ▶ $2.3m total ($4.0m forecast at deal stage) ▶ 1H25: $0.1m ▶ 1H25: $1.4m ▶ 2H24 $1.7m ▶ 2H24: $0.9m ▶ Largely advisory and legal ▶ Largely TSA and contractor project ▶ Slightly over forecast on legal drafting a
Slide 21: Strategy
Strategy
Slide 22: Growing market share in our core markets
Growing market share in our core markets 22
Slide 23: Comprehensive market-leading solutions in HNW advice
Comprehensive market-leading solutions in HNW advice ▶ Largest choice of alternative assets ▶ No. 1 platform for non-custody supporting growing demand for the investments asset class. StroPro partnership supporting demand for structured ▶ Reporting uplift to support greater products efficiencies for
Slide 24: Strategic focus and outlook
Strategic focus and outlook Realise the potential of Spectrum, Scope and Scope+ as the best overall platform and administration solution for HNW advice Further develop our leadership position in alternative assets Realise the financial benefit of the Scope repricing Complete the full integration of
Slide 25: Q&A
Q&A
Slide 26: Appendices
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Slide 27: Group result – reconciliation to OneVue contribution
Group result – reconciliation to OneVue contribution Group results $m 1H25 1H25 1H25 2H24 2H24 2H24 (ex OneVue) OneVue Group (ex OneVue) OneVue Group Platform 35.0 5.9 40.9 31.3 2.4 33.7 Portfolio services 10.5 - 10.5 10.5 - 10.5 Revenue 45.5 5.9 51.4 41.8 2.4 44.2 Expense recovery 1.7 - 1.7 2.4 - 2
Slide 28: Strong partners
Strong partners Spectrum will boost pipeline SMA Half Yearly Netflow Analysis FUA by adviser length of tenure 100% 2% 10% 8% 16% 17% 9% 90% 21% 1% 32% 15% 80% 7% 31% 20% 11% 20% 70% 34% 60% 24% 50% 89% 40% 76% 75% 68% 30% 63% 61% 20% 45% 45% 10% 0% 1H 2022 2H 2022 1H 2023 1H 2023 1H 2024 2H 2024 1H
Slide 29: FTE
FTE FTE totals FTE by Geography » Dec 22: 347 (Aus 253) 350 Australia » Jun 23: 347 (Aus 264) 300 Armenia » Dec 23: 349 (Aus 269) 250 » Jun 24: 377 (Aus 261, OV 41) 200 » Dec 24: 360 (Aus 273, OV 38)« 150 Higher average FTE v pcp » Group Dec 24: 374 v Dec 23: 350« 100 50 0 FTE Dec 24 by geography Ju