Praemium Ltd · ASX:PPS
Praemium — FY2024 Earnings Presentation
27 slides from Praemium's earnings presentation, Aug 26, 2024
Slide 1: Financial Results Presentation Year to 30 June 2024
PRESENTED BY Year to 30 June 2024 Anthony Wamsteker CEO Financial Results Presentation David Coulter CFO Praemium Limited ACN 098 405 826 26 August 2024
Slide 2: Acknowledgement of Traditional Custodians
At Praemium we acknowledge the Traditional Custodians of Country. We pay our respect to their Elders past, present, and emerging. 2
Slide 3: Disclaimer
Disclaimer The material contained in this document is a presentation of general information Praemium does not undertake any obligation to publicly release the result of any about the Praemium Group’s activities current as at the date of this presentation revisions to these forward-looking statements
Slide 4: Agenda
DRAFT Agenda » FY24 Business Highlights – Anthony Wamsteker » FY24 Financial Results – David Coulter » Strategy – Anthony Wamsteker Anthony Wamsteker David Coulter CEO CFO » Questions 4
Slide 5: Business Highlights
Business Highlights ACARDAARARARAADARAALRE WAARAAAAAAAAAAAARAAAY IWATA
Slide 6: Emphasise what makes us different and valued
Emphasise what makes us different and valued 6
Slide 7: FY24 business highlights
DRAFT FY24 business highlights » EBITDA uplift of 39% in second half » $12.5m v $9.0m HoH » Revenue up 15% HoH (11% annual) » Higher margin SMA of $11.3b, up 18% » 12% 5-year CAGR for SMA FUA $21.5m $84.9m » $820m net flow » 6 bps improvement in margin from reprice FY EBITDA Revenue and other (signi
Slide 8: Established partners and pipeline
DRAFT Established partners and pipeline SMA Half Yearly Netflow Analysis FUA by adviser length of tenure 100% 2% 10% 8% 16% 17% 90% 21% 32% 20% 15% 80% 7% 34% 31% 11% 20% 70% 60% 24% 50% 45% 40% 76% 75% 68% 63% 61% 30% 45% <=1 year 1 -<5 years 5-<10 years 10+ years 20% 10% 0% 1H 2022 2H 2022 1H 2023
Slide 9: Maintain Leadership: Award-winning technology innovations
DRAFT Maintain Leadership Award-winning technology innovations » No. 1 in 17 sub-categories » No. 2 for sub-category wins » No. 3 platform overall » 90% platform rating – highest score to date *Investment Trends Competitive Analysis and Platform Benchmarking Survey 2023. 9
Slide 10: OneVue integration proceeding to plan
OneVue integration proceeding to plan Strategic value accretive acquisition Attractive consideration structure Client migration well advanced » Highly strategic, added $4.1b » Upfront payment $1.0m with » Tailored migration plan funds under administration earn-out of $3.2m on forecast finalised for
Slide 11: Corporate Responsibility
Corporate Responsibility » 35% of rated funds achieved “High” or » Implemented fact-based remuneration “Above Average” MorningstarTM benchmarking resulting in equitable market- sustainability ratings based remuneration structures » 89 ESG themed investment options » OH&S committee focus on psycholog
Slide 12: Financial Results
Financial Results ACARDAARARARAADARAALRE WAARAAAAAAAAAAAARAAAY IWATA
Slide 13: Group results
DRAFT Group results » All comments ex OneVue FY24 FY24 ex Group results $m FY24 FY23 $ change % change OneVue OneVue » 8% revenue growth Platform 62.2 2.4 59.8 55.2 4.6 8 Portfolio services 20.5 - 20.5 19.1 1.4 7 » SMA inflows and Q4 reprice Revenue 82.7 2.4 80.3 74.3 6.0 8 » Equity markets strongly
Slide 14: Significant 2H momentum
Significant 2H momentum Group results $m 2H24 2H24 2H24 ex 1H24 $ % » All comments ex OneVue OneVue OneVue change change » Revenue up 8% Platform 33.7 2.4 31.3 28.5 2.8 10 Portfolio services 10.5 - 10.5 10.0 0.5 5 » Platform - 10% reflects higher FUA and Q4 Revenue 44.2 2.4 41.8 38.5 3.2 8 SMA repri
Slide 15: Platform Revenue - SMA repricing is improving margins
Platform Revenue - SMA repricing is improving margins • SMA FY 24 34 bps v 34 bps PY 39 bps post 1 April • SMA HY 23 33 bps v 30 bps pcp reprice • PWL FY 24 19 bps v 20 bps PY • PWL HY 23 20 bps v 17 bps pcp • OneVue FY 24 26 bps (not plotted) 15
Slide 16: Targeted market segmentation gap to be addressed by Next-Gen IDPS
Targeted market segmentation gap to be addressed by Next-Gen IDPS SMA Powerwrap $450,000 1,540 $3,300,000 300 $400,000 1,520 $3,200,000 250 $350,000 1,500 $3,100,000 $300,000 200 1,480 $3,000,000 $250,000 1,460 $2,900,000 150 $200,000 1,440 $2,800,000 $150,000 100 1,420 $2,700,000 $100,000 50 $50,00
Slide 17: Net flows and FUA - custody
DRAFT Net flows and FUA - custody $3,500m Net Flows by Year Net Flows FY24 $3,000m $2,500m SMA PWL OneVue » Platform $183m outflow $941m $2,000m » SMA $819m inflow $1,500m » Powerwrap $876m outflow $497m $m $1,000m $1,997m $500m $1,283m » OneVue $126m outflow (Q4 only) $865m $820m $- $36m $250m » Ma
Slide 18: Net flows and FUA – non-custody
DRAFT Net flows and FUA – non-custody VMA Services 70,000 65,000 » Reinvigorated growth in non-custodial 60,000 services with 41 new client firms ytd Portfolios 55,000 » VMA 65,228, up from 59,863 +9% 50,000 » VMAAS 9,559, up from 7,460 +28% 45,000 » VMAAS FUA $29.3b up from $21.8b +34% 40,000 FY20
Slide 19: FTE increases in Australia
DRAFT FTE increases in Australia FTE totals FTE by Geography » Dec 21: 322 (Aus 242) 41 OneVue added 350 » Jun 22: 346 (Aus 253) 300 » Dec 22: 338 (Aus 253) 250 » Jun 23: 347 (Aus 264) 200 » Dec 23: 349 (Aus 269) 150 100 » Jun 24: 377 (Aus 261, OV 41) 50 0 Higher average Aus FTE v prior year (ex OV)
Slide 20: Cashflow
DRAFT Cashflow Cashflow ($m) FY24 FY23 » Operating cashflow decline of $7.6m impacted Operating cashflow 19.2 26.8 by: Tax refunded / (paid) 1.9 (1.2) One-off costs (3.9) (2.2) » Timing mis-match on GST remittance Net operating cashflow 17.2 23.5 » PAYG tax refunded post 30 June 2023 Intangible cape
Slide 21: Balance Sheet
DRAFT Balance Sheet Balance Sheet ($m) Jun 24 Jun 23 » Strong balance sheet available to fund Cash 44.3 46.3 future growth, even allowing for cash Receivables 10.8 10.5 used to fund accretive IOPB acquisition Financial assets 2.3 4.0 » Group regulatory cash requirement Intangibles 68.8 60.5 Other as
Slide 22: Strategy
Strategy ACARDAARARARAADARAALRE WAARAAAAAAAAAAAARAAAY IWATA
Slide 23: Growing market share in our core markets
Growing market share in our core markets 23
Slide 24: Strong progress on strategic initiatives
Strong progress on strategic initiatives 24
Slide 25: Outlook for 2025
Outlook for 2025 Momentum from OneVue acquisition Launch IDPS revenue uplift discipline » FY25 12-month impact of » Address the adviser and » Execute to well-constructed repricing to market for client needs “wrap gap” in plans highly rated SMA the HNW sector » Active management of » Demonstrable cli
Slide 26: Questions
Questions ACARDAARARARAADARAALRE WAARAAAAAAAAAAAARAAAY IWATA
Slide 27: 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 27