Allfunds Group Plc · EURONEXT:ALLFG
Allfunds — H1 2021 Earnings Presentation
35 slides from Allfunds's earnings presentation, Sep 3, 2021
Slide 1: 1H 2021 Results
1H 2021 Results London, 3 September 2021
Slide 2: Disclaimer
For the purposes of this disclaimer, Allfunds Group plc and its consolidated subsidiaries are referred to as “Allfunds” and “Presentation” shall include this document, its contents or any part of it, as well as any oral briefings by Allfunds and any Q&A session that may follow such briefings. This P
Slide 3: Agenda
Agenda 1 Business update…………CEO, Juan Alcaraz 2 Financial update…………CFO, Amaury Dauge 3 Q&A Allfunds – 1H 2021 results 3
Slide 4: 1H 2021 – Key Takeaways
1H 2021 – Key Takeaways Highlights Resilient AuA up 16.4%(1) with 11.5%(2) net organic flows, reflecting strong commercial activity (new platformclients), continued secular tailwinds (open architecture and outsourcing) and strong market backdrop 11.5% (2) €247m €181m Excellent Financial Revenues
Slide 5: Business update
Business update Juan Alcaraz (CEO) 5
Slide 6: 1H 21 Highlights: Further Growth and Record Financial Performance
1H 21 Highlights: Further Growth and Record Financial Performance Global Scale High Growth High Profitability Resilient AuA Net Flows (1) Adj. EBITDA platform €1,348bn 11.5% (2) €181m Assets under Over BoP AuA Adj. EBITDA Administration Best performance in 1H 2021 as of 1H 2021 the last 3 years Net
Slide 7: What makes Allfunds special?
What makes Allfunds special? Unique Selling Points Historical Track Record 20 years serving our clients Scale Founder-led business Glocal Global expansion One-stop-shop Innovation and transformation Buy free-model M&A platform Allfunds – 1H 2021 results 7
Slide 8: Compelling End-to-End Wealth Management One-stop-shop
Compelling End-to-End Wealth Management One-stop-shop >2,000(1) >1,500(2) €1.3tn AuA(3) Fund Houses Distributors Data & Analytics Investment Solutions Fund Trading & Custody Blockchain (Pre- & Post-trading) Note: (1) Fund houses included on the platform (2) Access to >1,500 Distributors. Includes ac
Slide 9: A Comprehensive Suite of Best-in-class Solutions Powered by Smart Data
A Comprehensive Suite of Best-in-class Solutions Powered by Smart Data Fund Information Data & Analytics Search, track and compare over 180,000 funds Anticipating the market with data-driven analytics Trade Execution Digital Wealth Solutions Online funds eTrading Intelligent portfolio building Inves
Slide 10: Compelling Building Blocks of Growth
Compelling Building Blocks of Growth Secular Market Growth Trends Continued Share Gain Strategic Growth Initiatives Strategic M&A Open-architecture penetration Flywheel network effect Connect Platform M&A Platform outsourcing Land and expand Sub-Advisory Product M&A Wealth effect
Slide 11: Commercial Update: Positive Trend Expanding Allfunds Services Worldwide
Commercial Update: Positive Trend Expanding Allfunds Services Worldwide Regional Updates Migrations Connect Client Upselling opportunity Allfunds traditional markets: we keep on In a complex year with the integration of Recurrent business: New contracts acquired Initiative has just launched
Slide 12: A Semester of Strong Growth
A Semester of Strong Growth Powerful Flywheel Effect Exceptional Growth BNPP Integration ~100 new Fund Houses Fund BP2S Flash FDS AuA Growth Levers of Growth added to the platform Channel Application Platform in 1H 2021 Wealth Local Paying Agent BP2S clients Management business (BNP LPA Platf
Slide 13: Allfunds Organic AuA: Best Performance in the Last 3 Years
Allfunds Organic AuA: Best Performance in the Last 3 Years Net Flows Over BoP AuA (1) 23% Annualised Net flows over BoP AuA 11.5% 4.1% 3.7% 0.8% 1H 2018 1H 2019 1H 2020 1H 2021 Note: AuA as of beginning of period, excludes acquired AuA coming from BNPP Other portfolio (1) Net flows refer to flows fr
Slide 14: Allfunds keeps innovating for its customers
Allfunds keeps innovating for its customers Blockchain Unique Private Capital Enhanced US Distribution Markets Access Network Sandbox in Spain FAST Strategic partnership with iCapital Partnership to offer mutual funds to Selection of Allfunds Blockchain Innovative technology to Network to gi
Slide 15: Financial update
Financial update Amaury Dauge (CFO) 15
Slide 16: Focus On 1H 21 Results: Further Growth and Record Financial Performance
Focus On 1H 21 Results: Further Growth and Record Financial Performance Strong Revenues High Profitability Cash Flow Resilient Revenues Adj. EBITDA Free Cash Flow platform €247m 46% €114m Growth of 1H 2021 1H 2021 Adj. EBITDA Pro-forma normalized revenues y-o-y based on pro- Free Cash flow forma fig
Slide 17: Allfunds AuA: Growth Across All Drivers
Allfunds AuA: Growth Across All Drivers Figures in €bn 16.4% A 189 1,348 1,232 1,159 AuA AuA (1) AuA Growth AuA Dec 2020 PF Dec 2020 Actual 1H 2021 June 2021 Of which €42bn of Net transfers into Allfunds platform and €13bn of % Over BoP AuA (2) 4.4% 3.0% 4.3% 4.7% market/flows A 55 1,348 Growth 49 s
Slide 18: Allfunds AuA: Breakdown
Allfunds AuA: Breakdown Our three lines of defense against market volatility Client Type Asset Class Geography 6% 6% 6% 7% 17% 10% 5% 14% 24% 23% 7% 12% 11% 15% 4% 3% 6% 6% 15% 24% 2% 2% 13% 13% 12% 13% 14% 18% 20% 9% 17% 35% 34% 27% 26% 37% 21% 20% 21% 10% 11% 44% 37% 35% 36% 38% 38% 30% 25% 24% De
Slide 19: Net Revenues
Net Revenues Figures in €m 1H 2021 1H 2020 PF % Y-o-Y change 1H 2020 % Y-o-Y change Net Platform revenues 238.0 170.6 39% 129.9 83% Net Subscription revenues 9.2 6.5 42% 6.5 42% Net revenues 247.2 177.1 40% 136.4 81% 96% 4% Platform revenues Subscription revenues Growth 238 Origin of subscription 9.
Slide 20: Net Platform Revenue Margin
Net Platform Revenue Margin Considerations AuA 2020 PF Dec 2020 AuA 1H 2021 1H 2021 (€bn) Platform Margin (€bn) (2) Platform Margin Stable to slightly increasing margin at Allfunds excl. BNPP Other, due to: − Initial results of the fund house harmonisation programme 57% 64% − Higher transaction re
Slide 21: Adjusted Expenses
Adjusted Expenses Figures in €m 1H 2021 1H 2020 % Y-o-Y 1H 2020 % Y-o-Y Considerations PF change change Personnel expenses have increased due Adj. Personnel expenses 44.4 33.1 34% 30.6 45% to: - Additional 43 employees (5% of total Adj. SG&A 23.6 21.9 8% 17.3 37% employees) since December 2020, mo
Slide 22: Adjusted EBITDA
Adjusted EBITDA Figures in €m Considerations Adj. EBITDA 67% 70% 73% Margin 181.1 Record EBITDA in the 1H of 2021, mainly 46% growth y-o-y due to: - Exceptional performance in terms of 124.4 AuA (with higher level of revenues) - Good contribution from transaction 91.0 revenues (i.e. Local Paying A
Slide 23: Separately Disclosed Items
Separately Disclosed Items Figures in €m Considerations % Y-o-Y Items Affecting Adj. EBITDA 1H 2021 1H 2020 change Transitional service agreement costs in line Transitional Service Agreements (TSAs) and restructuring costs (29.6) (6.6) n.m. with expectations and including €4.5m of CSIL TSA that wa
Slide 24: Capital Expenditure
Capital Expenditure Capital Expenditure Evolution (1) Figures in €m Maintenance Capex as 1.9% 6.7% 4.0%(2) 4.1% a % of net revenue 8.6 0.3 1.4 10.1 7.0 7.1 0.9 2.2 1H 2018 1H 2019 1H 2020 1H 2021 (3) Maintenance Transformational Note: (1) Excluding IFRS 16 Capex (2) Based on 2020 Pro Forma net reven
Slide 25: Cash Flow Generation
Cash Flow Generation Illustrative Adj. EBITDA to Normalised Free Cash Flow Bridge Figures in €m 181.1 (10.4) (3.7) (3.7) 114.3 (49.1) Adj. EBITDA Capex excl. Rental Adjusted net Adjusted cash Illustrative (1H 2021) IFRS 16 expense interest income / tax expense (1) Normalised Free (expense) Cash Flow
Slide 26: Outlook
Outlook allfunds
Slide 27: Outlook and Financial Guidance
Outlook and Financial Guidance Guidance provided 1H Performance vs near-term guidance Platform revenue margin Stable 3.3bps 3.8bps 1H was a strong semester which has helped us to Net revenues growth Mid-teens in the near-term / be well ahead of our (CAGR) 40% y-o-y Low teens in the medium term nea
Slide 28: Appendix
Appendix allfunds
Slide 29: Allfunds AuA December 2020 Reconciliation
Allfunds AuA December 2020 Reconciliation Figures in €bn Pro-forma numbers 1,232 79 6 1,159 1,153 AuA Dec 2020 PF AuA not-yet-transferred / Adjusted AuA Dec 2020 Increase in AuA from BNPP Other AuA Dec 2020 Actual (2) as per IPO Prospectus migrated as per Analyst portfolio Presentation (1) Note: AuA
Slide 30: Allfunds AuA Reconciliation: BNPP Other Portfolio
Allfunds AuA Reconciliation: BNPP Other Portfolio Figures in €bn B 485 79 55 467 406 6 412 AuA Dec 2020 AuA not-yet-transferred AuA Dec 2020 Increase in AuA Dec BNPP Flows AuA as of Pro-forma as per Analyst AuA from BNPP 2020 Actual 1H 2021 PF Presentation (1) Other Portfolio B 42 13 Flows from Net
Slide 31: 1H 2021 – Income Statement
1H 2021 – Income Statement Figures in €m 1H 2021 1H 2020 PF % Y-o-Y change 1H 2020 % Y-o-Y change Net platform revenues 238 170.6 39% 129.9 83% Net subscription and other revenues 9.2 6.5 42% 6.5 42% Net revenues 247.2 177.1 40% 136.4 81% Adjusted Expenses (68.0) (55.0) 24% (47.8) 42% Adj. SG&A (44.
Slide 32: Adj. EBITDA to Reported Profit / (Loss) for the Year after Tax
Adj. EBITDA to Reported Profit / (Loss) for the Year after Tax Figures in €m 1H 2021 1H 2020 % Y-o-Y change Considerations Adjusted EBITDA 181.1 91.0 99% Significant increase of EBITDA: TSAs and restructuring costs (29.6) (6.6) n.m. - Higher level of revenues Consultancy costs, legal fees and M&A/
Slide 33: Balance Sheet
Balance Sheet Figures in €m Jun - 21 Figures in €m Jun - 21 Assets Liabilities and equity Cash and balances with Central Banks 2,341 Financial liabilities held for trading 1 Financial assets held for trading 1 Financial liabilities at amortized cost 2,296 Available-for-sale financial assets 1 Deposi
Slide 34: Regulatory supervision and solvency position
Regulatory supervision and solvency position Allfunds Banking Group - Solvency position Change vs Dec-20 ALLFUNDS Figures in €m Dec-20 Jun-21 Amount % •1 Increase due to higher credit GROUP PLC (United Kingdom) Credit Risk 827 1 1,049 224 27% risk, coming from exposures to Operational Risk 482 482 -
Slide 35: Investor Relations
Investor Relations investors@allfunds.com