Pacific Current Group Ltd · ASX:PAC
Pacific Current — Shareholder Meeting (November 2021)
25 slides from Pacific Current's shareholder meeting presentation, Nov 19, 2021
Slide 1: 2021 Annual General Meeting Presentation
Tacoma // Denver // Sydney // Melbourne ASX ANNOUNCEMENT 19 November 2021 2021 Annual General Meeting Presentation Pacific Current Group Limited (ASX:PAC), a global multi-boutique asset management firm, is pleased to provide its 2021 Annual General Meeting Presentation for release to the market. AUT
Slide 2: Annual General Meeting
ANNUAL GENERAL MEETING PRESENTERS: Tony Robinson, Chairman & Paul Greenwood, Managing Director, CEO and CIO
Slide 3: Disclaimer
Disclaimer The information in this presentation is general information about Pacific Current Group (‘Pacific Current’ or ‘PAC’) and is current only at the date of this presentation. In particular, this presentation: > is not an offer or recommendation to purchase or subscribe for securities in Pacif
Slide 4: A Strategy for Strong and Sustainable Earnings Growth
A Strategy for Strong and Sustainable Earnings Growth » » » » » » » » » » » » // 3
Slide 5: FY21 Underlying Results – strong growth in management fee revenues
FY21 Underlying Results – strong growth in management fee revenues Boutique Contributions Corporate Revenues Total Revenues 48.7 46.8 32.7 34.9 Corporate Overheads Underlying NPBT 32.1 32.6 21.5 24.3 Underlying NPAT 25.0 26.3 16.8 19.6 Underlying EPS Dividends Per Share Net Assets Per Share // 4
Slide 6: Management Fee Profitability
Management Fee Profitability Management Fee Profitability (A$m) 35 » 30 25 20 » 32.1 13.7 32.6 15 27.4 11.9 » 10 11.3 18.3 • 5.2 5 9.7 6.8 5.4 4.7 • 0 FY2018 FY2019 FY2020 FY2021 Management Fee Profitability 1H Management Fee Profitability 2H Underlying NPBT // 5
Slide 7: Portfolio Update
iy PORTFOLIO- UPDATE PACIFIC CURRENT GROUP
Slide 8: PAC Boutiques
PAC Boutiques Tier 1 Tier 2 Revenue Share 16% / 40%* 8% / 16%* Pref. Equity / 23%* Pref. Equity / 18.8% Tier 1 Tier 2 100% 4%* 40% / 44.9%* 25% 30% 60% Profit Share 24.9% 37.5% 24.9% 16.5%* 50% // 7
Slide 9: Portfolio Highlights
Portfolio Highlights » » » » » » » » » » // 8
Slide 10: GQG Overview
GQG Overview ❯ History • • • • ❯ Overview • • • • • • ❯ Future • • // 9
Slide 11: Portfolio Company Performance Update
Portfolio Company Performance Update Strong Long-Term Performance • Boutique 1 Year 3 Years 5 Years ITD • ○○ ●● ●○ ●● ○○○○○ ●●●○○ ●●○ ●●●●● • ●●●●● ●●●●● ●●●●● ○○○○○ • // 10
Slide 12: FUM Growth by Portfolio Company
FUM Growth by Portfolio Company Cumulative FUM Growth from 30 June 2018 to 30 September 2021 600 % 500 % % 400 % 300 % 200 % 100 % 0% -100% Aether Carlisle GQG Partners Proterra Victory Park Roc Astarte Blackcrane EAM Pennybacker -200% // 11
Slide 13: Strategy & Outlook
PACIFIC CURRENT GROUP
Slide 14: Investment Philosophy
Investment Philosophy Quality Sustainable Growth We seek to invest in quality We invest in firms that have asset managers. a long runway for growth. Alignment Risk Mitigation We seek alignment between our portfolio companies, their clients, We seek to manage investment risk through bespoke investmen
Slide 15: Investment Strategy: Growth Equity
Investment Strategy Growth Equity ❯ ❯ ❯ ❯ ❯ TYPICAL INVESTMENT CONSIDERATIONS Equity Interest Strategic Value Investment Size Seller Motivations AUM at Investment // 14
Slide 16: Investment Strategy: Early-Stage
Investment Strategy Early-Stage ❯ ❯ ❯ ❯ ❯ TYPICAL INVESTMENT CONSIDERATIONS Equity Interest Strategic Value Investment Size Seller Motivations AUM at Investment // 15
Slide 17: Investment Opportunities
Investment Opportunities Opportunities by Asset Class Average Deal Size by Asset Class (US$m) » » » » // 16
Slide 18: Current Market Trends
Current Market Trends Trends Implications for PAC Pressure on active equity ❯ strategies ❯ ❯ ❯ Democratization of alternative ❯ assets Evolving business models ❯ ❯ Emerging asset classes ❯ Rising asset management ❯ valuations ❯ ❯ ❯ // 17
Slide 19: Impact of GQG listing on PAC’s FY22 Financial Results
Impact of GQG listing on PAC’s FY22 Financial Results ❯ • • ❯ • • • • ❯ // 18
Slide 20: Other Insights into FY22 Financial Results
Other Insights into FY22 Financial Results ❯ ❯ ❯ // 19
Slide 21: Outlook
Outlook Operational Outlook Financial Outlook » • • » • • » • » » // 20
Slide 22: Perspective on PAC Valuation
Perspective on PAC Valuation Market Cap (A$) Per Share (A$) » PAC Market Capitalisation 369,511,876 7.24 PAC's 4% stake in GQG (net of estimated tax) 167,925,232 3.29 » GQG proceeds (net of estimated tax) 43,512,000 0.85 Implied Market Cap. of PC ex-GQG 158,074,645 3.10 PAC FY21 Underlying NPAT ex-G
Slide 23: Appendices
aes sis = = APPENDICES” PACIFIC CURRENT GROUP
Slide 24: Pacific Current Overview
PACIFIC CURRENT OVERVIEW MARKET INFORMATION * PAC SHARE PRICE MOVEMENT ASX 200 MOVEMENT Shares on Issue 51,037,552 9 9000 Market Cap (17 Nov 21) $369.51M 8 8000 7 7000 52-Week High $8.21 6 6000 52-Week Low $5.03 5 5000 Average Volume 108,027 4 4000 Jun-2020 Aug-2020 Jun-2021 Aug-2021 Jan-2021 Mar-20
Slide 25: Key Definitions
Key Definitions » Underlying Results/Earnings: Unaudited and non-IFRS financial measures used by PAC management to reflect the recurring elements of PAC's business. » Boutique Contributions: PAC’s economic entitlement from portfolio company/boutique investments including Management Fees and performa
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