Navigator Global Investments Ltd · ASX:NGI
Navigator Global Investments — H1 FY2025 Earnings Presentation
42 slides from Navigator Global Investments's earnings presentation, Feb 19, 2025
Slide 1: 2025 Interim Results
2025 Interim Results 19 February 2025 Authorised by: Board of Navigator Global Investments Limited
Slide 2: Agenda
Agenda 1 Overview 2 NGI Business Update 3 Financial Results 4 Outlook 5 Q&A 2
Slide 3: Overview
Overview Stephen Darke, NGI CEO
Slide 4: Company Snapshot
Company Navigator Global Investments (NGI) is the only ASX asset management company focused exclusively on partnering Snapshot with leading alternative asset managers Highly diversified earnings Partner Firms’ generated from operating over investment strategies USD 79 billion USD 27 billion 205 prod
Slide 5: H1 FY25 Financial Results
NGI | H1 FY25 Financial Results Strong top-line growth, Earnings Momentum, Positive Outlook US$27.1 billion US$92.3 million US$41.1 million A$43.7 billion1 A$139.6 million2 A$62.2 million2 Ownership-adjusted H1 25 Revenue H1 25 Adjusted AUM EBITDA 3% pcp 11% pcp in 28% pcp 28% pcp in 16% p
Slide 6: AUM Growth and drivers
NGI | AUM Growth and drivers Sustained Asset Growth - Driven by Consistent Investment Performance As of 31 Dec 2024, NGI has CY NGI Ownership Adjusted AUM1 USD billions CY2024 Ownership Adjusted AUM1 growth total Firm Level AUM2 of USD79 B YoY growth to 27.1 26.1 (1.1) 2.1 27.1 With growth for CY24
Slide 7: Underlying Revenue Composition
NGI | Underlying Revenue Composition Continued Growth in both Management + Performance Fees NGI Group Fee Composition1 Over the past 3 years USD millions 327 NGI’s managers have shown consistent long-term growth in management fee revenues, and a track record of generating performance fees across 258
Slide 8: Segment Revenue Composition
NGI | Segment Revenue Composition Robust Growth from both NGI Strategic and Lighthouse Management Fee Revenues Performance Fee Revenues USD millions USD millions 3yr CAGR of 10% $94m 3yr average annual performance fees 200 182 169 126 143 151 114 100 91 89 96 65 76 88 67 47 78 81 60 78 75 73 82 86 3
Slide 9: Earnings Power and Attribution
NGI | Earnings Power and Attribution Lighthouse the key driver of H1 FY25 Earnings NGI Strategic to drive H2 FY25 Earnings Historical EBITDA Adjusted EBITDA 16% growth on pcp growth driven by successful investments + resilient performance USD millions USD millions and growth of our Partner Firms 9
Slide 10: NGI Business Update
NGI Business Update Ross Zachary, NGI CIO and Head of NGI Strategic Investments
Slide 11: Scaled and Leading Alternative Investment Firms
Scaled and Leading Alternative Investment Firms Diversified assets and earnings from scaled firms, who have demonstrated leadership in their respective strategies and asset classes NGI Strategic Partner Firms $3 billion AUM $11 billion AUM $17 billion AUM $1 billion AUM/AUA $4 billion AUM Specialize
Slide 12: Highly Diversified Business
Highly Diversified Business Broad exposure across alternatives through scaled, institutional organisations Commingled Funds Hedge Funds Firm Level AUM by Firm Level AUM by Business1 Business1 $63 $16 billion billion Customised NGI Strategic Solutions Managed Account Lighthouse Services Liquid Altern
Slide 13: AUM Trends
AUM Trends Steady growth driven by wide range of existing and new products across various client channels globally Group AUM for six months to 31 December 2024 NGI Strategic • Strong performance and increased investor interest has led to inflows into 31 December 2024 certain alpha generating strateg
Slide 14: Investment Performance
Investment Performance Strong net performance across both segment’s strategies in CY2024 with continued low correlation to one another CY2024 CY2023 3 Year 5 Year NGI Strategic • Strong performance across the NGI Strategic: segment with only one strategy ending 2024 slightly negative NGI Strategic P
Slide 15: Executing on Growth Initiatives
NGI Strategic | Executing on Growth Initiatives NGI Strategic Portfolio Private Market Partner Firms1 Transformative strategic transaction to diversify and scale NGI Addition of established and fast-growing Partner Firms focused on earnings while establishing long term partnership with Blue Owl GPSC
Slide 16: Criteria Focus on Sustainable Growth
NGI Strategic | Criteria Focus on Sustainable Growth Diversification by asset class, strategy, geography and vintage is key to resilient earnings Our partnership with Blue Owl GPSC, dedicated focus on alternatives and experience team with global network results in high quality sourcing A Sourcing Ed
Slide 17: Broad Opportunity Set
NGI Strategic | Broad Opportunity Set We identify and partner with leading alternative asset managers with enduring & scalable franchises • Scaled and successful alternative asset managers are increasingly seeking growth capital and strategic support, but with only a limited number of experienced an
Slide 18: Financial Results
Financial Results Amber Stoney, CFO
Slide 19: H1 FY25 Financial Highlights
NGI | H1 FY25 Financial Highlights Adjusted EBITDA up 16% on pcp driven by: USD 27.1 billion USD 92.3 million AUD 43.7 billion AUD 139.5 million • Very strong performance fees from Lighthouse at $31.7m, up from $6.3m in pcp Ownership-adjusted AUM Revenue & other income (Non-IFRS) 1 • Lighthouse mana
Slide 20: Statutory & Adjusted EBITDA & NPAT
NGI | Statutory & Adjusted EBITDA & NPAT Adjusted EBITDA1 of $41.1 million, up 16% on pcp USD AUD3 billions 31 Dec 2024 30 June 2024 Change to pcp 31 Dec 2024 30 June 2024 Ownership-adjusted AUM 27.1 26.2 0.9 3% 43.7 39.4 millions 31 Dec 2024 31 Dec 2023 31 Dec 2024 31 Dec 2023 Statutory financial m
Slide 21: H1 FY25 delivers 16% growth on pcp
NGI | H1 FY25 delivers 16% growth on pcp Diversification across the NGI business delivers earnings growth NGI Strategic Lighthouse Corporate NGI Group 31 Dec 31 Dec Change 31 Dec 31 Dec Change 31 Dec 31 Dec Change 31 Dec 31 Dec Change USD millions 2024 2023 to pcp 2024 2023 to pcp 2024 2023 to pcp 2
Slide 22: Key Financial Metrics
NGI | Key Financial Metrics The components driving NGI profitability NGI Strategic Refer US$11.0 1.20% 17% 79% slide 90 - 95% 33 - 43% billion pa 14 Average Average AUM that Investment Distribution Indicative management Performance can earn Performance as a % of margin on fee rate fee rate Performan
Slide 23: Revenue growth
NGI | Revenue growth Growing management fees with upside from performance fees NGI Strategic Lighthouse Total Segment Profit Distributions Generated1 Management fees USD millions USD millions 84.2 73.5 76.7 70.9 61.9 61.4 42.3 36.3 39.7 H2 H2 71.3 39.0 63.7 51.4 H1 37.2 37.0 41.9 43.5 66.9 22.4 FY20
Slide 24: Balance Sheet and Funding
NGI | Balance Sheet and Funding Flexible Balance Sheet and Significant Cash Flow to fund Growth Opportunities Key Metrics Funding Strategy Total Assets USD 0.89bn AUD 1.43bn1 (60) 90 Target Net Debt Up to 1.5x Adjusted EBITDA (30) 93 100 Strong and growing free US$100m capacity in senior Dividend Po
Slide 25: Outlook
Outlook Stephen Darke, NGI CEO
Slide 26: H1 Recap
NGI | H1 Recap A scaled and diversified platform, positioned for increased organic and acquisitive growth Consistent Strong investment Financial performance across Outperformance Partner Firms Flexible Tailwinds Balance sheet benefiting & Significant global Cashflow alternatives 26
Slide 27: FY25 Outlook
NGI | FY25 Outlook Continued Core Growth of Partner Firms Execution of Growth Strategy • NGI expects our portfolio of Partner Firms to continue to perform • We are targeting 1-2 new partner firm investments per year that at both (i) management company and (ii) investment strategy level meet our inve
Slide 28: Growth Drivers
NGI | Growth Drivers Compounding Investment Opportunity Increases Quantum, Diversification & Resilience of both Revenue + Earnings Growth in Alternatives Partner Firm Growth NGI Value Creation New Partner Firms 1. Greater demand for our leading 1. Investment Performance 1. NGI Strategic Advice Partn
Slide 29: Long-term Investment Case
NGI | Long-term Investment Case 1 2 3 4 5 NGI is the only Highly diversified Established track Global team with Well positioned to ASX asset and resilient record of specialised Alts benefit from industry management portfolio identifying and experience. structural tailwinds company focused partnering
Slide 30: Q&A
Q&A
Slide 31: Performance Notes
Performance Performance may vary among different share classes or series within a Fund. Past performance is not indicative of future results. This information has been prepared by Navigator Global Investments Limited (NGI) for release to the Australian Securities Exchange and is not intended for dis
Slide 32: Disclaimer
Disclaimer This presentation has been prepared by Navigator Global Investments Limited (NGI) and provides information regarding NGI and its activities current as at 19 February 2025. It is in summary form and is not necessarily complete. It should be read in conjunction with NGI’s 30 June 2024 Annua
Slide 33: Appendices
Appendices ee gr
Slide 34: NGI Strategic | Diversification Benefit
NGI Strategic | Diversification Benefit Diverse and unique strategies deployed across the NGI Strategic Portfolio Low Correlation to Global Markets …and to one another 5 Year1 3 Year1 1A 1B 2A 2B 3A 3B 3C 4A 4B 5A 5B Partner Firms / Funds Market S&P 500 MSCI AC World Bloomberg US Daily Total Agg Gov
Slide 35: Hedge Fund Allocation Plans for 2025
Hedge Fund Allocation Plans for 2025 All allocator channels anticipate increasing their hedge fund exposure on average in the year ahead Plans to increase / decrease hedge fund exposure • Private banks continue to show conviction in hedge funds, with two-thirds of +16% +25% +13% +16% +20% +30% +17%
Slide 36: AUM Trends
NGI | AUM Trends Steady growth driven by wide range of existing and new products across various client channels globally Quarterly AUM over the past 2 years 30 September 30 September 31 December 31 December NGI Ownership 31 March 31 March 30 June 30 June 2023 2023 2023 2023 2024 2024 2024 2024 Adjus
Slide 37: H1 FY25 Adjusted EBITDA
NGI | H1 FY25 Adjusted EBITDA1 $41.1 million, up 16% on pcp 31 Dec 2023 USD millions 31 Dec 2024 Change to pcp Restated 4% increase in management fee revenue on pcp reflects Management fees revenue 43.5 41.9 4% higher average AUM and steady average management fee rate of 0.54bps Performance fee reve
Slide 38: Statutory Results
NGI | Statutory Results $41.1 million, up 16% on pcp 31 Dec 2023 USD millions 31 Dec 2024 Change to pcp Restated Management fees revenue 43.5 41.9 4% Performance fee revenue 31.7 6.3 405% Revenue from reimbursement of fund operating expenses 67.0 54.3 23% The increase in performance fee revenue is t
Slide 39: Statutory to Adjusted EBITDA Reconciliation
NGI | Statutory to Adjusted EBITDA Reconciliation 31 Dec 2023 USD millions 31 Dec 2024 Change to pcp Restated Statutory net profit after tax 68.8 10.0 588% Tax expense 9.1 6.3 44% Depreciation and amortisation expense 4.5 3.5 29% Adjusted EBITDA excludes non-cash items, fees and costs associated wit
Slide 40: Statutory to Adjusted NPAT Reconciliation
NGI | Statutory to Adjusted NPAT Reconciliation 31 Dec 2023 USD millions 31 Dec 2024 Change to pcp Restated Statutory net profit after tax 68.8 10.0 588% The largest driver of growth of statutory NPAT was the $44.9m of finance income, which largely comprises Non-cash items unrealised increases in th
Slide 41: Summary from Statutory Balance Sheet
NGI | Summary from Statutory Balance Sheet USD millions 31 Dec 2024 30 June 2024 Change to pcp Cash and cash equivalents 50.8 61.6 (18%) Trade and other receivables 64.3 32.9 95% Current tax assets 1.5 2.5 (41%) Total current assets 116.6 97.0 20% Investments at fair value 610.8 523.1 17% Increase i
Slide 42: Summary of Statutory Cash Flow
NGI | Summary of Statutory Cash Flow 31 Dec 2023 USD millions 31 Dec 2024 Change to pcp Restated Cash receipts from operating activities 114.5 99.7 15% Cash paid to suppliers and employees (95.3) (78.1) 22% Cash generated from operations 19.2 21.5 (11%) Distributions received from investments 16.6 2
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