Pengana Capital Group Ltd. · ASX:PCG
Pengana Capital — FY2022 Earnings Presentation
18 slides from Pengana Capital's earnings presentation, Aug 24, 2022
Slide 1: Pengana Capital Group Shareholder Presentation
PENGANA CAPITAL GROUP SHAREHOLDER PRESENTATION FOR THE YEAR ENDED 30 JUNE 2022 Russel Pillemer Katrina Glendinning Chief Executive Officer Chief Financial Officer
Slide 2: Table of Contents
PENGANA CAPITAL GROUP TABLE OF CONTENTS I Business Overview II FY 2022 in Review PENGANA CAPITAL GROUP | PAGE 2
Slide 3: Business Overview
iii_aas SECTION 1 BUSINESS OVERVIEW
Slide 4: Group Overview
GROUP OVERVIEW Leading Australian provider of premium, value added products • Compelling long-term returns across the range of strategies Focused on the higher-end retail market: financial advisors; SMSF’s; and HNW’s • Serviced by experienced and capable distribution team Recognised and well-regarde
Slide 5: Compelling Track Records with Capacity to Grow
COMPELLING TRACK RECORDS WITH CAPACITY TO GROW (AS AT 30/6/2022) Indicative Further FUM FUM Capacity Fund Benchmark Relative Primary Fund/Vehicle Name Strategy Team Current ($m) ($bn) % % % Pengana Australian Equities1 Australian Multi Caps Internal 778 Limited 8.5 6.0 2.5 Pengana Emerging Companies
Slide 6: Growth in Funds Under Management
GROWTH IN FUNDS UNDER MANAGEMENT (“FUM”)1 • Focus over the past few years has been on re-positioning the HISTORICAL GROWTH IN FUM ($M)2 business for future FUM growth at higher margins • Decrease in FY22 FUM due to market movements, with net $4,500 flows positive for the year $3,974 $4,000 $3,519 •
Slide 7: Annual Gross Fee Margin
ANNUAL GROSS FEE MARGIN 3.5% 3.23% Smoother total performance fees are anticipated going forward due to diversification of fee sources across multiple funds 3.0% 2.26% 2.5% 2.20% 2.11% 2.0% 1.69% 1.56% 1.40% 1.33% 1.5% 1.0% 1.18% 1.15% 1.12% 1.15% 1.14% 1.16% 1.11% 1.14% 0.5% FY 2015 FY 2016 FY 2017
Slide 8: Analysis of Management Fees
ANALYSIS OF MANAGEMENT FEES (AS AT 30/6/2022) Management Fee Split in FY2022 • Average funds under management (“FUM”) ($44.1m) subject to management fees for financial year of $3.9 bn • Average gross management fee rate of 1.14% (FY21: 1.10%) • Management fees of $44.1m in FY22 split: Investment • 4
Slide 9: Analysis of Performance Fees
ANALYSIS OF PERFORMANCE FEES (AS AT 30/6/2022) FUM subject to Performance • Well diversified sources of performance fees (“PFs”) provide added stability Fees ($2.5bn) • Absolute hurdles (higher level of certainty and consistency): 52% • Market Relative hurdles – (predominantly) Style Agnostic strate
Slide 10: FY 2022 in Review
SECTION 2 FY 2022 IN REVIEW
Slide 11: Key Developments in FY 2022
KEY DEVELOPMENTS IN FY 2022 • Difficult year in listed investment markets with two distinct halves: • Six months to December – strong absolute and relative performance across all major strategies • Six months to June – overall negative absolute and relative performance due to quality growth bias of
Slide 12: Financial Performance in Year to 30/6/2022
FINANCIAL PERFORMANCE IN YEAR TO 30/6/2022 • Closing 30 June 2022 FUM of $3.325bn (31 July 2022: $3.419bn) • Operating EBITA up 64% to $31.5m • Underlying profit before tax up 34% to $29.3m • EPS on Underlying profit after tax up 33% to 18.82 cents • NTA per share up 1.2% to 55.33 cents • Final divi
Slide 13: EBITDA and Underlying Profit
EBITDA AND UNDERLYING PROFIT1 Increase/ Increase/ 2022 2021 Pengana Capital Group Operating EBITDA (Decrease) (Decrease) Comment $’000 $’000 $’000 % Management fee revenue 44,134 41,186 2,948 7% ~ 60% to PCG, up from 56% in FY21 Performance fee revenue 33,174 27,454 5,720 21% ~ 63% to PCG, up from 5
Slide 14: Statutory Profit
STATUTORY PROFIT Pengana Capital Group ($’000) 2022 2021 Underlying profit before tax1 29,258 21,884 Less: Less: investment gains recorded in other comprehensive income reserve 2,765 (2,127) Less: Non-cash amortisation and impairment (2,883) (4,766) Less: LSP interest income (not on profit & loss) (
Slide 15: Balance Sheet
BALANCE SHEET1 Pengana Capital Group Balance Sheet ($’000) 30 June 2022 30 June 2021 Cash net of AFSL cash requirements 21,989 16,569 Receivables 8,211 22,214 Payables (13,153) (22,722) Net working capital 17,047 16,061 Investments net of AFSL liquid asset requirements and associated current liabili
Slide 16: The Year Ahead
THE YEAR AHEAD • Current FUM below the 2022 average • Sales strategy across our funds focused on • Quality and uniqueness of underlying teams/strategies • Compelling long term track records • In general, well placed in the event of market rebound - but still relatively conservatively positioned • Gl
Slide 17: Disclaimer
DISCLAIMER 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 24 August 2022. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respec
Slide 18: For More Information
PENGANA CAPITAL GROUP FOR MORE PENGANA CAPITAL LIMITED ABN 30 103 800 568 CLIENT SERVICE T: +61 2 8524 9900 INFORMATION AFSL 226566 E: clientservice@pengana.com pengana.com Levels 1, 2 & 3, 60 Martin Place, Sydney, NSW 2000 T: +61 2 8524 9900 F: +61 2 8524 9901 PENGANA.COM