Praemium Ltd · ASX:PPS
Praemium — H1 FY2014 Earnings Presentation
22 slides from Praemium's earnings presentation, Feb 24, 2014
Slide 1: FY2014 Half-year results
FY2014 Half-year results 24 February 2014
Slide 2: Disclaimer
Disclaimer The material contained in this document is a presentation of general information about the Praemium Group’s activities current as at the date of this presentation (24 February 2014). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for i
Slide 3: Agenda
Agenda Overview 1H, F14 results Looking forward 3
Slide 4: Who we are
Who we are • Company founded in 2001 ASX Listed • Listed on Australian Stock Exchange (ASX) in 2006 • Head office in Melbourne, Australia Global • Locations across London, Jersey, Hong Kong & Footprint Shenzhen • Over 150 staff • Wealth management software Services • Over 700 wealth management clien
Slide 5: What we do
What we do Software Investment services platform Helping wealth Investment managers provide administration efficient financial services utilising planning and portfolio Separately Managed administration Account (SMA) services to investors technology 5
Slide 6: Key products
Key products Built around Microsoft Dynamics CRM Financial Planning Client management, workflows, financial plans (WealthCraft) Fully integrated solution for advisers Software services Portfolio Web-based portfolio administration system Admin Record, monitor and report client’s investments
Slide 7: Compelling business model
Compelling business model Scalable proprietary investment Best-in-class portfolio administration platform technology • Account reconstruction and thorough corporate actions capabilities - we always get it right • Significant competitive differentiator Global SMA provider • Uniquely positioned • A ma
Slide 8: Inherent benefits of SMA
Inherent benefits of SMA SMA Managed Direct Shares Funds Tax efficient ✔ X ✔ Transparent ✔ X ✔ Lower brokerage costs ✔ N/A X Customisable/flexible ✔ X ✔ Access to professional managers ✔ ✔ X Regulatory threshold Beneficial ownership ✔ X ✔ An SMA allows wealth managers to implement investment strateg
Slide 9: Aus market to grow significantly
Aus market to grow significantly Superannuation assets expected to grow from $1.6 trillion to $4.0 Australia market has considerable trillion in 10 years 1 growth potential: 8,000 Superannuation assets 1 • Platform assets hold $510 billion, 1997 - 2033 ($bn) of which Praemium has 0.2% 6,000 • Platfo
Slide 10: Agenda
Agenda Overview 1H, F14 results Looking forward 10
Slide 11: Key highlights in H1
Key highlights in H1 Strong growth in Australian SMA 70% annual growth to $1.2 billion funds on platform Expanded asset classes to provide the full asset allocation spectrum to managers Key strategic gains for international SMA First major international bank client Launch of discretionary in
Slide 12: SMA driving growth
SMA driving growth Revenue up 30% on pcp AUS earnings growth from SMA 10,000 4.0 ASIA Recurring revenue Underlying EBITDA by Segment UK ($000) ($m) AUS 3.0 2.0 H1 FY13 H2 FY13 H1 FY14 1.0 5,000 0.0 (1.0) (2.0) - (3.0) H1 FY13 H2 FY13 H1 FY14 AUS UK ASIA Corporate 12
Slide 13: EBITDA improvement
EBITDA improvement H1 H1 PRAEMIUM ($m) AUS UK ASIA Corporate FY14 FY13 External Revenue 7.2 1.1 0.0 - 8.3 6.5 Other Income 0.5 0.3 - - 0.8 0.1 Revenue & other income 7.7 1.4 0.0 - 9.1 6.6 Employee Expenses (3.5) (2.8) (0.6) (0.1) (7.0) (5.2) Operating Expenses (1.0) (0.9) (0.1) (0.3) (2.3) (2.4) Exp
Slide 14: Australia 2013 – SMA’s tipping point
Australia 2013 – SMA’s tipping point Significantly increased interest in SMAs in 2013 Particularly from institutional organisations Praemium received a considerable increase in sales enquiries A significant share of which were converted in the second half of 2013 Drivers of increased SMA inter
Slide 15: International SMA refitted for growth
International SMA refitted for growth Revamped the business model Secured several major signups Significantly improved client services Signed up our first international bank Consolidated operational processes to the platform in December 2013 Implemented a major upgrade to our A large advis
Slide 16: SMA growth strategy is evident
SMA growth strategy is evident 10.0 PPS Revenue Contribution Portfolio admin revenue growth ($m) from strengthened product features Strong growth in SMA revenue from: • Acquisition of Aus platform from 5.0 BlackRock • Opening of Jersey office to extend to ex-UK market Increased SMA offering through:
Slide 17: Agenda
Agenda Overview 1H, F14 results Looking forward 17
Slide 18: Looking forward in 2014
Looking forward in 2014 Significant investment to address Australian superannuation market Full launch of SMSF compliance and reporting to augment V-Wrap and leverage existing client base Imminent launch of SuperSMA to address large and growing retail superannuation market A complete investment
Slide 19: Adding value to SMSFs…
Adding value to SMSFs… Investment admin for SMSF client base (~20,000 accounts) + + + + Compliant Automated ATO Member Enhanced SMSF regulatory & preparation & statements & monitoring fiduciary lodgement alerts reporting Embeds existing relationships Makes us the most compelling solution SMSF compli
Slide 20: …with a new investor portal
…with a new investor portal 20
Slide 21: Launch of SuperSMA
Launch of SuperSMA Existing Aus SMA with SuperSMA FUM of $1.2 billion No retail super Competitive pricing presence Improved adviser Retail super is experience typically a substantial Targets large public- proportion of offer super market platform FUM Considerable Praemium is interest from launching
Slide 22: Questions?
preemium Questions? cf