Praemium Ltd · ASX:PPS
Praemium — FY2011 Earnings Presentation
23 slides from Praemium's earnings presentation, Aug 31, 2011
Slide 1: Praemium Limited FY2011 Results Presentation
For personal use only Praemium Limited FY2011 Results Presentation Michael Ohanessian (CEO) August 2011 1
Slide 2: Agenda
Agenda For personal use only Group Overview FY2011 Summary Forward Plan Questions 2
Slide 3: Group Overview
For personal use only 3 Group Overview
Slide 4: Who we are
Who we are For personal use only Software developer of investment portfolio administration technology to the financial services industry Founded in 2001 by Arthur Naoumidis Listed on Australian Stock Exchange in 2006 to fund entry into the UK market Offices in Melbourne and London, and now Jersey (f
Slide 5: Key share statistics
Key share statistics For personal use only $1.40 Praemium (PPS) Share Price Praemium’s Major Shareholders $1.20 $1.00 Mr Arthur & Mrs Kathryn Naoumidis 8.0% $0.80 Dr Donald Stammer 7.3% $0.60 Nelcan Pty Ltd 4.9% $0.40 Patcheoak Pty Ltd 3.2% $0.20 Telstra Super 2.8% * $- Equitas Nominees Pty Ltd 2.6%
Slide 6: What we do
What we do For personal use only Praemium Australia: delivers technology and services to our clients, enabling them to efficiently administer investor portfolios Praemium UK: owns and operates portfolio investment platforms complete with custody, legal structures and administration 6
Slide 7: Product landscape
Product landscape For personal use only Core Technology Modules Clients Portfolio Administration Accountants Services (PAS) SMSF Administrators • Portfolio Admin Financial Planners Investment Register (V-Wrap) Brokers • Market Data Corporate Accounts CGT Engine • Trading Corporate Action Blackrock P
Slide 8: PAS – A proven technology
PAS – A proven technology For personal use only V-Wrap is a comprehensive online portfolio administration service that excels in: • Corporate action processing • Sophisticated tax and investment reporting • Multi-asset type • Multicurrency • Portfolio reconstruction Diversified Client Base • 40% Acc
Slide 9: SMA – Better than managed funds
SMA – Better than managed funds For personal use only Feature Managed Fund SMA Professional investment management Active trading Wholesale execution Low minimum investment Access via PDS Beneficial ownership of underlying shares Transparent – can view underlying shares Avoid embedded CGT In-specie t
Slide 10: SMA – How it works
SMA – How it works For personal use only Risk Profile Risk Score Asset SMA Model Underlying Questionnaire Allocation Selected Investments Cash and equivalents 2.00% Low Defensive Cash Corporate bonds 2.00% 19.60% Henderson Strategic Bond A Inc 9.80% M&G Strategic Corporate Bond A Inc 9.80% High Yiel
Slide 11: UK – Taking SMA international
UK – Taking SMA international For personal use only SMARTfund – First of its kind • Tax effective Authorised Unit Trust structure • Investment management services outsourced (eg Old Broad Street Research and Barrie & Hibbert) dps– Advisor centric & value adding • Advisors maintain the direct client
Slide 12: FY2011 Summary
For personal use only 12 FY2011 Summary
Slide 13: Highlights
Highlights For personal use only Australia • Revenue growth of 9% to $11.8 million • Continued to improve our core technology functionality to existing customers • MyState win significant for Powerwrap Limited and Praemium UK • Revenue growth of 51% to $1.2 million • Funds under administration (FUA)
Slide 14: Financial summary
Financial summary For personal use only RESULTS SUMMARY FY2011 FY2010 Change Change $'000 $'000 $ % Revenue 13,037 11,974 1,062 9% Expenses 18,096 16,962 1,133 7% EBITDA (5,059) (4,988) (71) -1% Net Loss before Tax (5,536) (5,724) 187 3% Cash at Reporting Date* 4,644 5,614 (970) -17% Net Assets 5,49
Slide 15: Key performance indicators
Key performance indicators For personal use only TECHNOLOGY KEY PERFORMANCE FY2011 FY2010 Change OFFERING INDICATOR % PAS: AUS V-Wrap Portfolios 45,075 44,167 2% SMA: AUS FUA ($M) 574 497 15% SMA: UK FUA (£M) 283 116 145% £300 V-Wrap Portfolios UK FUA (£ million) 50,000 £250 40,000 30,000 £200 20,00
Slide 16: Divisional breakdown
Divisional breakdown For personal use only PRAEMIUM GROUP AUS UK Corporate GROUP RESULTS by REGION FY11 FY11 FY11 FY11 $'000 $'000 $'000 $'000 External Revenue 11,698 1,266 12,964 Employee Expenses (7,007) (5,038) (510) (12,555) Operating Expenses (3,419) (1,639) (410) (5,468) Total Expenses (10,426
Slide 17: Product breakdown
Product breakdown For personal use only REVENUE by PRODUCT FY2008 FY2009 FY2010 FY2011 $'000 $'000 $'000 $'000 PAS: AUS 6,036 8,104 9,770 9,894 SMA & Wrap: AUS 226 281 1,279 1,714 SMA: UK 128 143 835 1,263 Product Revenue 6,390 8,528 11,884 12,872 Other Income 396 73 64 92 External Revenue 6,786 8,6
Slide 18: Forward Plan
For personal use only 18 Forward Plan
Slide 19: Profit focus
Profit focus For personal use only Priority is on achieving near term profitability Significant cost review • Organisational restructure • Protect our core service offering • Prioritise product development initiatives Increased sales focus • Addition of field sales support personnel to assist client
Slide 20: Business is highly scalable
Business is highly scalable For personal use only Our core software technology and daily processing engine can be leveraged across all of the company’s products The investment in our core client services, software support and operations capability is now largely complete Jersey-based strategy levera
Slide 21: UK market opportunity is large
UK market opportunity is large For personal use only £160 £140 UK Platform FUM B2B • UK Regulatory changes due at £120 (£ billion) end of 2012 will accelerate £100 platform adoption • Platform market expected to £80 exceed £300 billion by 2013 £60 • Platform business is sticky £40 • We have chosen a
Slide 22: Outlook for FY2012
Outlook for FY2012 For personal use only Praemium Australia is a sustainable, proven and valuable business • Our V-Wrap proposition remains the market leading solution for investment portfolio services • Potential EBIT uplift following planned restructure • Significant pipeline opportunity with Powe
Slide 23: Questions?
For personal use only 23 Questions?