Slide 1: FY20 Results Briefing Presentation
VGI Partners Limited ABN 33 129 188 450 39 Phillip Street Sydney NSW 2000 Australia T. +61 2 9237 8900 www.vgipartners.com AFSL No. 321789 | SEC Registered 23 February 2021 ASX Market Announcements ASX Limited Exchange Centre 20 Bridge Street Sydney NSW 2000 BY ELECTRONIC LODGEMENT FY20 Results Brie
Slide 2: VGI Partners Limited (ASX:VGI) FY20 Investor Briefing
VGI Partners Limited (ASX:VGI) FY20 Investor Briefing – 23 February 2021
Slide 3: FY20 Business Highlights
Year to 31 December ($ million)1 FY20 FY19 FY20 Business Highlights Income Year to 31 December 2020 Management fees (net)1,2 43.1 32.4 Performance fees (net)2 21.1 36.7 • Normalised NPAT of $30.7m1 Other income1 (0.3) (0.1) • Management fees up on FY19 given higher average Normalised total operating
Slide 4: 2H20 Business Highlights
2H20 Business Highlights Six Months to 31 December 2020 VGI Partners Global Investments (ASX:VG1) VGI Partners Asian Investments (ASX:VG8) • 14% post-tax NTA return • 10% post-tax NTA return Proven investment process Global and Asian portfolios continue to evolve, various new investment holdings New
Slide 5: Trading Update
VGI PARTNERS Trading Update
Slide 6: Current FUM of $3.3 billion and Recent Net Returns
Current FUM of $3.3 billion and Recent Net Returns FUM is $3.3 bn as at 19 February 2021 Net Return Net Return 1 Jan 2021 Fund FY20 to 19 Feb 20211 VGI Partners Master Fund +5.9% +5.0% VGI Partners Offshore Fund +5.6% +5.5% VGI Partners Global Investments Ltd (ASX:VG1) – post-tax NTA +8.4% +4.1% VGI
Slide 7: Business Overview
VGI PARTNERS Business Overview
Slide 8: VGI Partners Overview
VGI Partners Overview • Specialist manager focusing on global equities. Long Individually Managed biased, concentrated strategy with selective short VGI Managed Funds Accounts (IMAs) selling. Minimal to no leverage utilised • Offices in Sydney, New York and Tokyo Unlisted Listed Unlisted • FUM of $3
Slide 9: VGI Partners Philosophy and Alignment of Interests
VGI Partners Philosophy and Alignment of Interests Alignment of Interests • All operating costs of VG1 and VG8 (where permitted) paid by VGI • Founders of VGI Partners reinvest their pro-rata amount of VG1 and VG8 Capital Preservation Do not lose money performance fees (after tax) back into VG1 and
Slide 10: VGI Partners Master Fund: Capital Preservation Performance in Up/Down Months
VGI Partners Master Fund: Capital Preservation Performance in Up/Down Months Since Inception Compound Annual Return (Net) Performance in Performance in 13.5% "Up Market" Months "Down Market" Months 14% 12% 11.0% 2.9% 3% 2.3% 10% 2% 8% 1% 6% 0% 4% (1%) (2%) (0.8%) 2% (3%) (2.3%) 0% VGI Partners Maste
Slide 11: Financials
VGI PARTNERS Financials
Slide 12: Normalised Financials
Year to 31 December ($ million) FY20 FY19 Income Management fees (net)1 43.1 32.4 Performance fees (net) 21.1 36.7 Normalised Financials Other income2 (0.3) (0.1) Year to 31 December 2020 Normalised total operating revenue 63.8 69.0 • Normalised FY20 NPAT adds back contra-revenue Normalised operatin
Slide 13: Reconciliation Normalisation Adjustments
FY20 FY20 FY19 Year to 31 December ($ million) statutory Adjust. normalised normalised1 Income Reconciliation Management fees (net) 35.9 5.0 + 2.1 43.1 32.4 Normalisation Adjustments Performance fees (net) 21.1 21.1 36.7 Other income (0.6) 0.3 (0.3) (0.1) • Normalised FY20 NPAT adds back contra- Tot
Slide 14: Revenue and FUM
Revenue and FUM Year to 31 December 2020 VGI Partners FUM2 • FUM of $3.1 bn at the end of 2020 $3.5 bn $3.0 bn • FUM up to $3.3 bn as at 19 February 2021 $2.5 bn • Gross management fees of 1.5% $2.0 bn • Net management fees of c.1.4% largely due to charitable FUM1 $1.5 bn $1.0 bn $0.5 bn $0.0 bn 200
Slide 15: Management and Performance Fees
Management and Performance Fees • Annual management fee revenue has been increasing due to higher average FUM and end of VG1 fee waiver in April 20191 • Performance fees are based on absolute performance subject to high-water marks and can vary materially from period to period • As at 19 February, $
Slide 16: Expenses
Expenses Year to 31 December ($ million) FY20 FY193 Year to 31 December 2020 Personnel 11.1 11.8 • Normalised operating costs of $19.2m Research, communications and IT 2.4 3.8 Occupancy 0.3 0.4 • Cost decrease on pcp partly due to lower research, communications and IT costs (due to contract Charitab
Slide 17: Balance Sheet
Balance Sheet As at 31 December 2020 31 Dec 31 Dec • $42m in cash as at 31 December 2020, no debt Statutory balance sheet ($ million) 2020 2019 Cash and cash equivalents 41.7 29.3 • Financial assets represent investments in VG1 and VG8 Trade and other receivables 26.9 8.4 • $8.8m of on-market purcha
Slide 18: Charitable Initiatives and VGI Partners Foundation Class
Charitable Initiatives VGI’s cumulative charitable rebates and donations and VGI Partners Foundation Class $7.0m $7m • VGI Partners actively supports charitable and community $6m causes. Total donations and rebates since 2008 of $7.0m. $5m $4m • This includes $1.4m of cash donations to select extern
Slide 19: Shareholder Engagement
Shareholder Engagement Please elect electronic Half-year and full-year Annual General Meeting Annual national communications to result conference calls (AGM) in May roadshow each stay informed October Manager’s semi- Head of Investor Relations annual VG1 and VG8 Ingrid Groer, CFA letters in January
Slide 20: Questions
VGI PARTNERS Questions
Slide 21: Appendices
VGI PARTNERS Appendices
Slide 22: VGI Partners Limited Dividend Policy
Appendix A VGI Partners Limited Dividend Policy The Company will target a dividend pay-out ratio of between 50% and 75% of profit after tax. In a period of outsized performance fee revenue or when the Company is investing capital to improve Shareholder returns in the future, the Company may determin
Slide 23: Statutory vs Normalised P&L
FY20 FY19 FY20 FY19 Year to 31 December ($ million) statutory statutory normalised normalised1 Income Appendix B Management fees (net) 35.9 30.6 43.1 32.4 Statutory vs Normalised P&L Performance fees (net) 21.1 36.7 21.1 36.7 Other income (0.6) (1.6) (0.3) (0.1) • Normalised FY20 NPAT adds back cont
Slide 24: VGI Partners' Protocols
Appendix C VGI Partners’ Protocols VGI Partners Global Investments (ASX:VG1) Buy-back1 VGI Partners Limited Buying of VG1 Shares • Dividend Reinvestment Plan (DRP) and Performance Fee • When VG1 is not active with buying for the: Reinvestment take priority - DRP • Material sustained discount buy-bac
Slide 25: Disclaimer
Disclaimer: VGI Partners Limited (ABN 33 129 188 450) (VGI Partners) is the holder of an Australian Financial Services Licence (No. 321789) and is SEC registered. The information in this presentation (Information) has been prepared by VGI Partners and is current as at the date of this presentation.
Slide 26: Disclaimer (continued)
Disclaimer (continued): Normalisation adjustments Financial Information is presented on both a statutory basis (prepared in accordance with Australian accounting standards which include Australian equivalent to International Financial Reporting Standards (IFRS)) as well as information provided on a