Praemium Ltd · ASX:PPS
Praemium — FY2019 Earnings Presentation
25 slides from Praemium's earnings presentation, Aug 12, 2019
Slide 1: 2019 Annual results: Delivering on our growth agenda
Disclaimer For personal use only 2019 Annual results Delivering on our growth agenda 12 August 2019 Praemium Limited ACN 098 405 826 1
Slide 2: Disclaimer
Disclaimer The material contained in this document is a presentation of general information about the Praemium Group’s activities current For personal use only as at the date of this presentation (12 August 2019) and is supplementary to the Group’s financial results released to the ASX on 12 August
Slide 3: Global reach, global scale
Global reach, global scale Praemium is a leading provider of scalable managed accounts technology, portfolio administration and CRM & financial planning tools for the wealth management industry. We help financial advisers, stockbrokers, accountants, investment managers and banks For personal use onl
Slide 4: Highlights, Financial results, Business update, Q&A
For personal use only Highlights Financial results Business update Q&A
Slide 5: Key financial highlights
Key financial highlights For personal use only 12% increase in net revenue $45.1 million in revenue 14% increase in gross margin 80% increase in NPAT 29% increase in EBITDA* 12.0 Underlying EBITDA*, $m 78% 8.0 6.3 H1 4.6 $11.4 million 4.0 H2 3.5 in underlying EBITDA* 2.2 increase in EPS 1.4 2.0 2.8
Slide 6: Key performance indicators
Key performance indicators FUA, $m Uplift in key areas 18,000 For personal use only 12,000 WealthCraft clients 64% Aus Int'l VMAAS 6,000 Itn'l platform clients 35% - Itn'l platform inflows 62% FY16 FY17 F18 F19 Gross Inflows, $m 3,000 Platform FUA 25% Aus Int'l Overall FUA 108% 1,500 VMA Administr
Slide 7: A major platform upgrade
A major platform upgrade For personal use only Fully integrated managed account platform Entirely new Adviser Portal, with: MIS New online adviser help centre and live chat UMA Unified experience across model portfolios, SMA bespoke portfolios and Professionally Managed Accounts Cash facility non-cu
Slide 8: Other key developments
Other key developments For personal use only Export Centre Enhanced model management Expanded IMA menu Data Exchange facility New interactive charting tools Digital fact find International income matching Targeted cashflow management SMSF annual reporting Split out fx gains/losses Automated notifica
Slide 9: Award-winning innovation
Award-winning innovation For personal use only “The winner has shown Winner persistence over a long period in Innovation Category developing a service that meets Institute of Managed Account Professionals the needs of its clients and their Managed Account Awards clients for a solution which is flexi
Slide 10: Highlights, Financial results, Business update, Q&A
For personal use only Highlights Financial results Business update Q&A
Slide 11: FY2019 financial results
FY2019 financial results FY18 FY19 Group Financial Results Key financial highlights ($m) ($m) For personal use only Revenue 43.2 45.1 Net revenue up 12% Product commissions(1) (4.6) (2.0) Revenue (net) 38.6 43.1 Cost of operations (7.3) (7.3) Gross margin up 14% Gross margin 31.3 35.8 GM % of net re
Slide 12: Half-on-half results
Half-on-half results H1, FY19 H2, FY19 FY19 Strong 2nd half result Group Financial Results ($m) ($m) ($m) For personal use only Revenue 22.9 22.2 45.1 Net revenue up 2%, after product commissions Product commissions (1.6) (0.4) (2.0) Delivered gross margins of 85.6%, up from 80.1% in H1 Revenue
Slide 13: Continued revenue growth
Continued revenue growth $m Aus Intl FY19 FY19 % Aus % Intl % Australia For personal use only Platform 15.3 10.7 26.0 5% 25% (15%) Australia platform FUA up 24%, revenue up 25% Portfolio services 15.9 - 15.9 5% 5% - Billable VMA portfolios up 4% (excl. institutional) Planning software 0.2 2.1 2.
Slide 14: Sustained earnings growth
Sustained earnings growth Change% Aus Intl Corp Group $m Aus Intl Corp FY19 For personal use only Revenue (net) % 14% 7% - 12% Revenue 31.4 13.7 - 45.1 Expenses % 8% 5% 14% 7% Product commission - (2.0) - (2.0) EBITDA 21% 3% (14%) 29% Expenses (16.2) (14.4) (1.1) (31.7) (underlying)* Segment EBITDA
Slide 15: International platform – strong growth
International platform – strong growth For personal use only £m £b 300 Gross inflows*, £m Revenue and Expenses*, £m 0.5% increase 7.0 FUA (£b) 2.0 Platform Revenue (£m) Expenses (£m) 2% increase Smartfunds 1.5 150 3.5 1.0 0.5 - H1 H2 H1 H2 H1 H2 H1 H2 0.0 - FY16 FY16 FY17 FY17 FY18 FY18 FY19 FY19 FY
Slide 16: Cashflow and balance sheet
Cashflow and balance sheet Cashflow ($m) FY18 FY19 Balance Sheet ($m) FY18 FY19 Operating cashflow 8.8 10.0 Cash 12.1 13.7 For personal use only R&D incentive 0.6 0.8 Receivables 7.3 7.6 Tax paid (2.7) (3.0) Intangibles 6.5 9.9 One-off costs (1.3) (1.6) Other assets 4.4 4.2 Net operating cashflow 5.
Slide 17: Highlights, Financial results, Business update, Q&A
For personal use only Highlights Financial results Business update Q&A
Slide 18: Looking forward
Looking forward Long-term plan: Platform and WealthCraft integrated For personal use only Industry tailwinds WealthCraft opens accounts into platform Australia Specialist platforms market share predicted to grow from 5% to 12% in 5 years1 Growth of International UK profitable next year Over-conc
Slide 19: Upgrade to a full-service platform
Upgrade to a full-service platform For personal use only Praemium’s Integrated Managed Accounts platform adds IMA functionality to its SMA capability. In Australia, the upgrade represents a 40-fold increase in available market from Investment Menu, # the $21bn SMA market to the overall $858bn platfo
Slide 20: VMAAS – a complete administration service
VMAAS – a complete administration service For personal use only VMA admin service (VMAAS) Providing full administration, including: 45,000 7,000 Mail processing Account reconciliation 40,000 Corporate action elections and processing 6,000 Billing and fee generation 35,000 Quarterly reporti
Slide 21: International, now growing strongly
International, now growing strongly Platform clients up 35% Gross inflows up 62% Platform up 29% For personal use only Int'l Platform Clients, # Int'l Gross inflows, £m FUA, £m 250 500 1,600 Platform SIM models 200 400 1,200 150 300 800 100 200 400 50 100 0 - - FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY1
Slide 22: Good progress for WealthCraft
Good progress for WealthCraft For personal use only Praemium’s financial advice software growing with strong A total of 46 firms on platform cross-sell WealthCraft Seats Clients 900 50 57% 64% 40 600 30 of whom use other Clients Praemium services Seats increase in 300 20 WealthCraft clients 10 - - F
Slide 23: Our ultimate vision
Our ultimate vision For personal use only Portfolio administration (VMAAS) Leverage excellence in non-custodial reporting for HNW clients Non-custodial Custodial managed technology (VMA) accounts Performance analytics, asset SMA, IMA, MDA, FATCA- allocation, tax engine, consolidated compliant, ex-pa
Slide 24: Highlights, Financial results, Business update, Q&A
For personal use only Highlights Financial results Business update Q&A
Slide 25: Contact us
For personal use only contact us Level 19 367 Collins Street Melbourne, VIC 3000 T: 1800 571 881 E: support@praemium.com.au W: praemium.com.au