Slide 1: ASX Announcement: FY24 Results Presentation & Acting CEO's Overview
ASX ANNOUNCEMENT 23 August 2024 FY24 Results Presentation & Acting CEO’s Financial Year Overview Pacific Current Group Limited (ASX:PAC)(Pacific Current) attaches the following documents relating to Pacific Current’s FY24 financial results: • FY24 Results Presentation; and • Executive Director and A
Slide 2: Full Year FY24 Results Presentation
PACIFIC CURRENT GROUP FULL YEAR FY24 RESULTS PRESENTATION Presenters Michael Clarke Ashley Killick Acting CEO and Executive Directo! CFO 23 August 2024
Slide 3: The information in this presentation is general information
PACIFIC CURRENT GROUP 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 notan offer or recommendation to purchase or subscribe for securities
Slide 4: FY24 Overview
FY24 Overview Pacific Current Group (PAC) is a global investor in investment management firms, with stakes in 11 investment firms across the US, Europe, Australia and Asia. PAC’s boutiques offer a diverse range of investment products across multiple asset classes, delivering sustainable and growing
Slide 5: FY24 Underlying Results
FY24 Underlying Oe | oe, Comments Growth driven by strong Pennybacker Res u Its aie NEHGS ee ea a 267 fundraising and Banner Oak fee crystallisation Boutique performance fees 113 12.2 74 82 Led by Victory Park and Roc Boutique unrealised MTM (23) 7 (15) ci Nonecash item, primarily related to VPC bal
Slide 6: Revenue Composition
Reve n u e Underlying Revenues (US$m) Le i . omposition = “0 267 248 23.6 Management Fee revenues 0 continued steady growth over the past three years 105 10 8.2 Th 51 ao 29 19 09 04 i?) (0.8) 1.1, FY21 FY22 Fras ) Fy2i! 5) I Management Fees Performance Fees Unrealized MIM Corporate Revenues FY24 man
Slide 7: Net Assets
317,727 16,095 42,781 20,219 (4,821) (4,956) 79,885 6,919 Reflects deconsolidati (69,125) (25716) operating subsidiaries (Aether an a ere) SCI) to present PAC on a “look PAC's Corporate Net Assets 313,074 (48,546) through” basis, Strong growth in —— Net AssetS of over 17% Investment in Boutiques Sub
Slide 8: Fair Value vs Book Value
FAIR VALUE VS BOOK VALUE PACIFIC CURRENT GROUP
Slide 9: NAV Breakdown
NAV Breakdown Aether 449 28 (7.4) 449 303 (146) | Impairment recognised in FY24 Banner Oak 50.2 23.0 (272) 545 239 (30.6) | Impairment recognised in FY24 Carlisle 651 7718 125 651 7718 125 | Sale announced post 30 June 24, once completed, expect fair value uplift Cordillera 449 = (449) 449 - (449) |
Slide 10: FY24 Key Highlights
FY24 KEY HIGHLIGHTS PACIFIC CURRENT GROUP
Slide 11: Transactions which generated capital flexibility
jon Whichgeherated capital flexibi PACIFIC CURRENT GROUP In March 2024, PAC announced the sale of its 119,121,254 shares in GQG Partners, representing approximately 4% of GQG’s market capitalisation at the time and nearly 20% of the float. The sale price of A$2.16 per GQG share generated cash procee
Slide 12: Externalisation of investment management
FY24 PACIFIC CURRENT GROUP In March 2024, PAC announced its strategic initiative to externalise investment management by appointing an affiliate of GQG Partners The externalisation, together with a restructure of PAC’s US back office operations has generated a net cost savings for PAC of approximate
Slide 13: Pro-forma Underlying Results
' { FY24 (ASm) FY24 (ASm) F 24 P ro- fo rma Underlying Underlying Pro-Forma Comments Pro-forma excludes GQG, Avante, Cordillera, Proterra, 1 Boutique management fees 489 19.2 Pennybacker (partially), Carlisle and Victory Park Jnderlying on Boutique performance fees 13 13 Pro-forma excludes Victory P
Slide 14: Outlook
OUTLOOK PACIFIC CURRENT GROUP
Slide 15: FY25 Priorities
Near-Term Return Capital § Plan in progress to complete a substantial off-market, equal access share buy-back Enhance Capital Flexibility § Continue to pursue transactions that enhance value and provide capital for redeployment or return to shareholders. Good start in FY25 following the announcement
Slide 16: Asset composition FY2023 vs FY2024
FY2023 FY2024 § 2% 11% 13% § 10% 43% § § 87% 34% § Cash Cash § Financial Assets Financial Assets § Management Fee related investments Management Fee related investments Carry related investments Carry related investments
Slide 17: PAC Go-Forward Strategy
PAC Go-Forward Strategy PAC will allocate capital to its most accretive uses, including re-investment and distribution to shareholders Assets for Harvesting and Mature Boutiques In addition to its large cash balance (A$318m) and ongoing distributions from Boutiques, PAC has a number of assets that a
Slide 18: Growth Opportunities
Growth Opportunities” PAC has significant capital to invest in accretive ‘GP Stakes’ opportunities as they present Sources for Growth Capital Re-investment in existing Boutiques Existing Cash Reserves PAC may re-invest proceeds in existing Boutiques by providing: § Asat 30 June 2024, PAC has A$313m
Slide 19: Appendices
APPENDICES PACIFIC CURRENT GROUP
Slide 20: Statutory profit and loss
11,221 18,097 27,281 27,293 4,407 204 Changes in fair value 104,735 (14,681) ~ Gain on sale of investments 61,191 Results include the revenues-a id Total statutory income 208,835 30,913 expenses of operating subsidiaries Emoloymentey ee) cee) SCl)- —— impairment expenses (42,243) (14,022) (Aether an
Slide 21: Reported to underlying profit reconciliation
Reported Net Profit/(Loss) Before Tax 142,275 (17,545) Non-cash items - = _ = 7,791 8,977 Reconciliation ra a a 7,643 (3,223) 42,243 14,022 Reported results impacted by 2878 extraordinary and non-cash items = suid = Other normalising adjustments/items Deal, € 3,960 3,788 Gain on di (61,191) (628) 65
Slide 22: Underlying earnings
Boutique contributions 57,600 50,213 37,757 33,788 Revenues 659 1,314 432 884 8,481 8,485 5,559 5,710 883 602 579 405 i — 482 651 316 438 Underlying NPBT and NPAT are = a = = = unaudited and non-IFRS financial 767 966 503 650 measures used by PAC to manage aa aa 7a 7a its business 3,547 2,809 2335 1
Slide 23: Underlying revenues and expenses by function
PACIFIC CURRENT GROUP 48,938 39,661 11,327 12,211 (2,339) (1,659) Revenues Boutique contributions Management f 48,938 jormar 11,327 Unrealis (2,339) = = management fees (27) (327) - contributions 57,600 = = 57,600 50,213 Commissions and retai 567 567 1102 Other revenue 92 92 212 Underlying revenue 5
Slide 24: Statutory balance sheet
95,537 23,201 225,000 42,912 20,854 Non-current assets ments in associates and joint ventures 127,325 189,715 24,068 41,388 An 150,180. 324,893 corporate admin and-eperating nthe 62,859 6,259 subsidiaries (Aether and SCI) Total assets PZT HISD « Current liabilities 5,838 9,204 Non-current liabilitie
Slide 25: Operating cash flow
PACIFIC CURRENT GROUP Operating cash flow Net receipts from customers/supp! (24,225) (9,160) Divi 52,645 46,014 r tax paid (7,806) (15,032) Investing cash flow = (17,638) (225,000) N Jisposal of a 374,738 12,364 investments (23,925) (44,433) Other (62,348) (6,408) Financing cash flow Dividends paid
Slide 26: Underlying cash earnings and conversion
Underlying NPBT 38,607 31,692 ountin nings from boutiques (54,803) (41,308) Dividends from boutiques 52,645 46,014 fest expense (1,032) 344 tion andamortisation 833 693 n operating assets and liabi (2,290) 81 Other 1,336 1,389 Underlying pre-tax cash earnings 35,297 38,905 jal, consulting, dea (3,96
Slide 27: PAC Boutique Investments
PAC Boutique Investments PAAETHER 100% Private equity, real assets 2008 investment USA Aether Investment Partners is an alternative investment manager sponsoring closed-end limited partnerships focused private investments in real assets § Primary sectors include natural resources and infrastructure
Slide 28: PAC Boutique Investments
PAC Boutique Investments HE AM GLOBAL INVESTORS Global, international, & EM small cap equity 2014 investment USA EAM Global Investors ("EAM Global") manages emerging markets small cap, international small cap and international micro-cap public equity strategies § Distinctive, momentum-oriented appro
Slide 29: PAC Boutique Investments
PAC Boutique Investments PENNYBACKER CAPITAL Private real estate 2019 investment USA Pennybacker Capital Management (“Pennybacker’) is a middle-market real estate private equity and private credit manager focusing on value-add real estate private equity § More recently, Pennybacker launched Income &
Slide 30: Key Definitions
Key Definitions PACIFIC CURRENT GROUP ~ Revenue Share Boutique investments where PAC is entitled to a percentage of boutiques top-line revenues (largely made up of management fees and performance fees). This equity structure removes fluctuations related to the boutique’s cost base over time. For the
Slide 31: Fair Value NAV
3 The statutory consolidated financial statements have been prepared on the basis of historical cost, except for certain financial instruments nderstanding ete aeeeee atch asus atnecnd ot cnch ocniny coe As such, the Group's investments in operating subsidiaries (such as Aether and SC!) and Associat
Slide 32: Tips for Analysing PAC
Tips for Analysing PAC PACIFIC CURRENT GROUP ~ Revenue recognition o Private equity, private infrastructure, and private real estate managers normally charge fees on committed capital. Thus, new FUM becomes revenue immediately after the legal commitment is received, even though it may take several y
Slide 33: Executive Director and Acting CEO's Financial Year Overview – FY24
Executive Director and Acting Chief Executive Officer’s Financial Year Overview – FY24 In our letter to Pacific Current Group (PAC) shareholders last year we noted that PAC was committed to taking actions that would result in greater recognition of the value of PAC’s portfolio. We are gratified by the p
Slide 34: Sales of GQG, Pennybacker and other assets
• In March of 2024, PAC sold its entire stake in GQG. This sale was the culmination of a highly successful investment, and yielded PAC proceeds of A$257.3m. Combined with the distributions received throughout the investment, PAC made more than 99X its initial investment. • In May of 2024, PAC announ
Slide 35: Buy-back and FY25 focus
to be of up to $300m. The buy-back will be subject to PAC obtaining applicable Australian Tax Office rulings. PAC management expects to carry over the strong momentum built in FY24 into FY25. The focus will be to: • Return capital – Progress and execute the plan to complete a substantial off-market, eq