Pengana Capital Group Ltd. · ASX:PCG
Pengana Capital — FY2021 Earnings Presentation
20 slides from Pengana Capital's earnings presentation, Aug 31, 2021
Slide 1: Pengana Capital Group Shareholder Presentation for the Year Ended 30 June 2021
For personal use only PENGANA CAPITAL GROUP SHAREHOLDER PRESENTATION FOR THE YEAR ENDED 30 JUNE 2021 Russel Pillemer Katrina Glendinning Chief Executive Officer Chief Financial Officer
Slide 2: Table of Contents
TABLE OF CONTENTS For personal use only 1. Business Overview 2. FY 2021 in Review 3. Valuation Components
Slide 3: Section 1: Business Overview
SECTION 1 For personal use only BUSINESS OVERVIEW
Slide 4: Pengana Capital Group Overview
PENGANA CAPITAL GROUP OVERVIEW For personal use only • 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 • >$4bn of funds under management (“FUM”) • Unique funds
Slide 5: Key Attractions
KEY ATTRACTIONS For personal use only • FUM diversified across: strategies/funds; geographies; market-caps; listed and private equity • Compelling long-term returns across the range of strategies • Well-rated by research houses; availability across all advisor platforms • Recognised brand with loyal
Slide 6: Compelling Track Records with Capacity to Grow
COMPELLING TRACK RECORDS WITH CAPACITY TO GROW (AS AT 30/6/2021) For personal use only Indicative Performance Since Inception p.a. 13 Primary Fund/Vehicle Name Strategy Team FUM Further FUM Current Capacity Fund Benchmark Relative ($m) ($bn) % % % Pengana Australian Equities1 Australian Multi Caps I
Slide 7: Growth in Funds Under Management
GROWTH IN FUNDS UNDER MANAGEMENT (“FUM”) 1 For personal use only • Focus over the past few years has been on re-positioning Historical Growth in FUM ($m)2 the business for future FUM growth at higher margins $4,500 • Business currently experiencing FUM growth from both $4,000 $3,974 investment retur
Slide 8: Annual Gross Fee Margin
ANNUAL GROSS FEE MARGIN For personal use only 3.5% 3.23% Smoother total performance fees are anticipated going forward 3.0% due to diversification of fee sources across multiple funds 2.5% 2.20% 2.11% 2.0% 1.69% 1.56% 1.5% 1.33% 1.40% 1.44% 1.0% 1.18% 1.15% 1.12% 1.15% 1.14% 1.16% 1.11% 0.5% FY 2015
Slide 9: Analysis of Management Fees
ANALYSIS OF MANAGEMENT FEES (AS AT 30/6/2021) For personal use only Management Fee Split in FY2021 • $4.0bn of funds under management (“FUM”) subject to ($41.2m) management fees (30/6/2021) • Average gross management fee rate of 1.1% • Management fees of $41.2m in FY2021 split: Investment • 44% to I
Slide 10: Analysis of Performance Fees
ANALYSIS OF PERFORMANCE FEES (AS AT 30/6/2021) For personal use only 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)
Slide 11: Section 2: FY 2021 in Review
SECTION 3 For personal use only FY 2021 IN REVIEW
Slide 12: Key Developments in FY 2021
KEY DEVELOPMENTS IN FY 2021 For personal use only • Strong absolute and relative investment performance across most of the funds • Continued progress in improving ratings as well as platform access • Expansion of distribution team • Further development of leading-edge digital marketing capabilities
Slide 13: Financial Performance in Year to 30/6/2021
FINANCIAL PERFORMANCE IN YEAR TO 30/6/2021 For personal use only • FUM up 27% to $4bn • Operating EBITA up 95% to $19.2m • Comprehensive Income before tax up 83% to $21.9m • EPS on Comprehensive Income after tax up 77% to 14.18 cents • NTA per share up 7.6% to 54.69 cents • Final dividend per share
Slide 14: EBITDA, Underlying Profit and Comprehensive Income
EBITDA,UNDERLYING PROFIT AND COMPREHENSIVE INCOME1 For personal use only Increase/ Increase/ 2021 2020 Pengana Capital Group Operating EBITDA (Decrease) (Decrease) Comment $’000 $’000 $’000 % ~ 56% to PCG; full impact of increase in FUM not Management fee revenue 41,186 38,091 3,095 8.1% shown due t
Slide 15: Statutory Profit
STATUTORY PROFIT For personal use only Pengana Capital Group ($’000) 2021 2020 Comprehensive profit before tax1 21,884 11,932 Less: Less: investment gains recorded in other comprehensive income reserve (2,126) (138) Less: Non-cash amortisation and impairment (4,766) (3,250) Less: LSP interest income
Slide 16: Balance Sheet
BALANCE SHEET1 For personal use only Pengana Capital Group Balance Sheet ($’000) 30 June 2021 30 June 2020 Cash net of AFSL cash requirements 16,569 12,209 Receivables 22,214 4,370 Liabilities (22,722) (6,363) Net working capital 16,061 10,216 Investments net of AFSL liquid asset requirements and as
Slide 17: Section 3: Valuation Components
SECTION 4 For personal use only VALUATION COMPONENTS
Slide 18: Valuation Components
VALUATION COMPONENTS For personal use only PENGANA CAPITAL GROUP Net tangible assets of $59m1 generating investment income PENGANA CAPITAL GROUP • Net investable assets (includes (includes Employee Employee Share LoanShare Plan Loan Plan): $55m generating • Net investable assets (includes Employee S
Slide 19: Disclaimer
DISCLAIMER For personal use only 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 31 August 2021. This presentation is not an offer or invitation for subscription or purchase of securities or a reco
Slide 20: Pengana Capital Group Limited
For personal use only 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