Praemium Ltd · ASX:PPS
Praemium — H1 FY2023 Earnings Presentation
22 slides from Praemium's earnings presentation, Feb 27, 2023
Slide 1: Half Year to 31 December 2022 Financial Results Presentation
PRESENTED BY Half Year to 31 December 2022 Anthony Wamsteker CEO Financial Results Presentation David Coulter CFO Praemium Limited ACN 098 405 826 27 February 2023
Slide 2: Disclaimer
Disclaimer The material contained in this document is a presentation of general information about Forecasts and hypothetical examples are subject to uncertainty and contingencies outside the Praemium Group’s activities current as at the date of this presentation (27 February Praemium’s control. Past
Slide 3: Agenda
Agenda • HY23 Business Highlights – Anthony Wamsteker • HY23 Financial Results – David Coulter • Looking Forward Anthony Wamsteker David Coulter – Anthony Wamsteker CEO CFO • Questions 3
Slide 4: Business Highlights
Business Highlights ACARDAARARARAADARAALRE WAARAAAAAAAAAAAARAAAY IWATA
Slide 5: HY23 business highlights
HY23 business highlights $11.4m Record HY EBITDA (underlying) • Strong 17% revenue growth • HoH cost discipline • 13% 5-year CAGR for SMA $1.0b HY net inflows • Powerwrap recurring positive flows • Market leading $21.8b VMAAS non- $42.7b Scalable Australian FUA custody solution • Higher margin SMA n
Slide 6: Net flows and FUA
Net flows and FUA Net Flows HY23 • Platform $1,016m • SMA $670m • Powerwrap $346m • Market movement $421m FUA (Dec 22 v Jun 22) • $42.7b - up 6% • SMA $9.0b - up 11% • Powerwrap $12.0b – up 5% • VMAAS $21.8b - up 4% • 13% SMA FUA CAGR 5 years to Dec 22 6
Slide 7: Established partnerships supported by growing new pipeline
Established partnerships supported by growing new pipeline Half year fund flows FUA by adviser length of tenure 7
Slide 8: Maintain Leadership - Award winning technology innovations
Maintain Leadership - Award winning technology innovations *Investment Trends Competitive Analysis and Platform Benchmarking Survey 2022 8
Slide 9: Delivering innovation with purpose
Delivering innovation with purpose 9
Slide 10: Financial Results
Financial Results ACARDAARARARAADARAALRE WAARAAAAAAAAAAAARAAAY IWATA
Slide 11: Group financial results HY23
Group financial results HY23 Group Financial Results $ % ($m) HY23 HY22 change change • HY22 impacted by carrying divested Revenue (net) 35.4 39.2 (3.8) (10) business albeit EBITDA neutral Cost of operations (8.6) (12.3) 3.7 30 Gross margin 26.8 26.9 0.5 - • Share schemes no longer required to GM %
Slide 12: Australian segment results
Australian segment results • Strong revenue growth, augmented by Australia results $m HY23 HY22 $ change % change sector leading cost constraint, opens “jaws” by 30% (32.1% margin v 24.7% pcp) Platform 25.9 21.7 4.2 19 • 17% revenue growth Portfolio services 9.4 8.7 0.7 8 » Cash admin fee on SMA lif
Slide 13: Platform Revenue Margins – strong cash margin impact
Platform Revenue Margins – strong cash margin impact • SMA HY 23 33 bps v 30 bps pcp • PWL HY 23 20 bps v 17 bps pcp 13
Slide 14: FTE reduced from June due to tech uplift and TSA termination
FTE reduced from June due to tech uplift and TSA termination FTE totals (continuing business) FTE Dec 22 by geography » Dec 21: 322 » Aus: 126 Ops, 68 IT, 31 S&M, 28 Corp » Jun 22: 346 » Arm: 30 Ops, 51 IT, 4 Corp » Dec 22: 338 14
Slide 15: Cashflow
Cashflow Cashflow ($m) HY23 HY22 • Operating cashflow of $7.9m impacted by: Operating cashflow 7.9 2.5 Tax paid (0.8) (1.9) » Deployment of working capital to One-off costs (1.5) (0.7) support Morningstar TSA Net operating cashflow 5.6 (0.1) » Large deal advisory payments post Intangible capex (3.6)
Slide 16: Balance Sheet
Balance Sheet Balance Sheet ($m) Dec 22 Jun 22 • Strong balance sheet available to Cash 38.2 80.5 fund future growth Receivables 11.3 7.3 • Group regulatory cash requirement Financial assets 3.5 3.6 of $15.0m Intangibles 59.3 58.4 Other assets 8.4 7.1 • Tax losses on divestment Assets 120.7 156.9 re
Slide 17: Looking forward
Looking forward ACARDAARARARAADARAALRE WAARAAAAAAAAAAAARAAAY IWATA
Slide 18: Growing share in our core markets
Growing Attractivemarket share in ourabound market opportunities core markets 18
Slide 19: Continued delivery against core objectives
Continued delivery against core objectives 19
Slide 20: Strong foundations for continued growth momentum
Strong foundations for continued growth momentum 20
Slide 21: Questions
Questions ACARDAARARARAADARAALRE WAARAAAAAAAAAAAARAAAY IWATA
Slide 22: Contact us
(y) twitter.com/praemium (in) linkedin.com/praemium A preemium contact us Level 19, 367 Collins Street, Melbourne, VIC 3000 Ph: 1800 571 881 E: support@praemium.com.au praemium.com.au 22