Praemium Ltd · ASX:PPS
Praemium — H1 FY2021 Earnings Presentation
28 slides from Praemium's earnings presentation, Feb 10, 2021
Slide 1: Praemium Limited 2021 Half-year results
Praemium Limited 2021 Half-year results Investor presentation rsonal use only 10 February 2021 The platform of everything ACN 098 405 826
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 (10 February 2021) and is supplementary to the Group’s financial results released to the ASX on 10 February 2021 and previous
Slide 3: Global reach, global scale
Global reach, global scale Praemium is a leading provider of managed accounts technology, portfolio administration and CRM/financial advice software for the wealth management industry rsonal use only Our story Software company ASX listed in 2006 to Offices in Over 1,000 Covering over founded in 2001
Slide 4: Highlights
Highlights rsonal use only Financial results Australia business International business Summary
Slide 5: Transformational acquisition
Transformational acquisition Acquisition of Powerwrap Limited rsonal use only Praemium’s most significant acquisition to date Successful off-market takeover Fully completed November 2020 Synergistic platform merger An independent, open- Broad product suite for A unified platform for The most accurat
Slide 6: Record inflows and FUA
Record inflows and FUA Record net inflows of $1.85 billion Record global FUA of $34.3 billion rsonal use only Powerwrap inflows from September Platform FUA of $20.3 billion Record International inflows VMAAS FUA of $14.0 billion Platform Net Inflows* FUA 2.0 ($m) 35.0 ($b) 1.5 Aust Int'l VMAAS Aust
Slide 7: A productive half
A productive half Continued Product Awards rsonal use only R&D launches Our leading open API expanded Launch of an alternative assets Winner of Best International for offshore robo-advice partners platform with Qualis Capital Platform at the International Adviser Awards in London for the 3rd New adv
Slide 8: Financial results
Highlights rsonal use only Financial results Australia business International business Summary
Slide 9: H1 FY2021 financial highlights
H1 FY2021 financial highlights Praemium’s strategy execution is delivering results Product Revenue, $m rsonal use only 35.0 21% increase in net revenue 17.5 9% increase in gross margin 113% increase in NPAT 5% increase in EBITDA - H1 FY19 H2 FY19 H1 FY20 H2 FY20 H1 FY21 Portfolio Services Platform P
Slide 10: H1 FY2021 financial results
H1 FY2021 financial results H1, FY201 H2, FY212 Group Financial Results ($m) ($m) Profitable growth Revenue 26.5 31.7 rsonal use only Product commissions (0.4) (0.1) ▪ Net revenue growth of 21% Revenue (net) 26.1 31.6 ▪ Underlying EBITDA up 5% ▪ 24% increase in sales & marketing investment Cost of o
Slide 11: Australian segment result
Australian segment result H1 H1 Change Australia results $m FY201 FY21 % Revenue growth of 28% Platform 11.0 16.9 52% rsonal use only Portfolio services 8.4 8.4 (1%) ▪ Platform revenue up 52%, including PWL of $6.9 million Planning software 0.1 0.1 (34%) ▪ Portfolio services revenue up 9% from VMA p
Slide 12: International segment result
International segment result H1 H1 Change International results $m Revenue weathering global volatility FY20 FY21 % Platform 4.8 4.3 (8%) rsonal use only Planning software 1.1 1.1 1% ▪ Platform revenue up 20%, FUA up 24% Other 1.0 0.9 (3%) ▪ Fund revenue (net) down 55% from Smartfund outflows ▪ Grow
Slide 13: Cashflow
Cashflow Cashflow ($m) H1 FY20 H1 FY21 Strong cash generation Operating cashflow 5.9 5.2 rsonal use only R&D incentive 0.7 0.8 ▪ Positive operating cashflow of $2.2 million, net of acquisition costs Tax paid (2.3) (2.2) ▪ Business acquisition net of $14.6 million in cash One-off costs (0.5) (1.6) ac
Slide 14: Balance sheet
Balance sheet Balance Sheet ($m) Jun’20 Dec’20 Strong balance sheet Cash 15.9 28.9 rsonal use only Receivables 6.5 7.6 ▪ Cash reserves of $28.9 million Intangibles 12.0 68.5 Other assets 14.8 12.9 ▪ Group regulatory cash requirement of $12 million Assets 49.2 117.9 ▪ Intangibles increase includes $5
Slide 15: Australia business
Highlights rsonal use only Financial results Australia business International business Summary
Slide 16: Key drivers: Australia
Key drivers: Australia Praemium and Powerwrap, stronger together Platform FUA, $m rsonal use only 18,000 116% 9,000 13% increase in increase in inflows total portfolios - F18, H1 F18, H2 F19, H1 F19, H2 F20, H1 F20, H2 F21, H1 Platform Net Inflows*, $m Portfolios, # 1.5 90,000 1.0 132% 60,000 increa
Slide 17: Tailwinds for tech-savvy independent players
Tailwinds for tech-savvy independent players Adviser trends Platform trends rsonal use only Hayne Royal Commission fallout: margin squeeze Institutional platforms FUA declined 1.5% in the 12 months to Sep 2020 ▪ Stricter regulatory oversight and overhead costs Challenger platforms grew 34% over the
Slide 18: Powerwrap acquisition to drive scale
Powerwrap acquisition to drive scale Merged Group now over $34 billion FUA ▪ A strong position serving the complex needs of advisers rsonal use only Scale ▪ Ability to serve clients across retail and HNWI market segments ▪ Leverage existing sales capacity to sell a combined offering Targeting operat
Slide 19: VMA administration service (VMAAS)
VMA administration service (VMAAS) Non-custodial administration is complicated For accurate reporting and efficient administration, and time-consuming there really is only one solution rsonal use only 22% of advised wealth is “off-platform”* VMAAS is underpinned by the best SaaS reporting capability
Slide 20: International business
Highlights rsonal use only Financial results Australia business International business Summary
Slide 21: Key drivers: International
Key drivers: International Accelerated growth across our global solutions UK Pension Schemes, # rsonal use only 2,500 2,000 31% 1,500 On platform Off Platform 28% increase in 1,000 increase in platform FUA 500 portfolios - F18, F18, F19, F19, F20, F20, F21, H1 H2 H1 H2 H1 H2 H1 Platform FUA, $m Port
Slide 22: UK platform increasing momentum
UK platform increasing momentum UK results (H1 $m) FY19 FY20 FY21 YoY% International platform FUA, £m 2,400 Platform 2.5 3.1 3.7 +20% Funds (net) 1.6 1.2 0.6 -55% rsonal use only Other 1.5 1.6 1.5 - Total net revenue 5.6 5.9 5.8 1,200 Expenses 6.2 6.5 6.0 EBITDA (0.6) (0.6) (0.2) 0 H1 F19 H1 F20 H1
Slide 23: Increasing awareness
Increasing awareness ▪ 5-star rating by Defaqto rsonal use only ▪ International Adviser’s Platform of the Year 2020 (3rd year in a row) ▪ City of London Wealth Management Award for innovation ▪ Praemium rated 2nd best overall platform in latest the lang cat’s Platform Market Scorecard*, as rated by
Slide 24: International momentum
International momentum rsonal use only Accelerating growth in 2020 Gross Inflows, $m 700 600 ▪ Record platform inflows for the December half ▪ Platform FUA of £2.2 billion, up 31% 500 ▪ Further investment in sales, implementation and 400 client support in the UK and Dubai ▪ First Japan-based client
Slide 25: Summary
Highlights rsonal use only Financial results Australia business International business Summary
Slide 26: Summary – years into our growth strategy
Summary – 2 years into our growth strategy rsonal use only ▪ Successful off-market transaction Powerwrap ▪ Highly accretive given common DNA acquisition ▪ Strengthens our position as a key player SaaS leadership ▪ Extended our competitive edge with ongoing R&D investment in non-custodial ▪ After 3 y
Slide 27: Plan for 2021
Plan for 2021 ▪ Key drivers of growth: rsonal use only • UK – further expansion of the DFM* channel International • Offshore – continued shift from product selling to advice on platform platform • WealthCraft automated account opening for client adoption ▪ Key profit drivers: • Admin support from Ye
Slide 28: Contact us
rsonal 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