Navigator Global Investments Ltd · ASX:NGI
Navigator Global Investments — FY2023 Earnings Presentation
49 slides from Navigator Global Investments's earnings presentation, Aug 24, 2023
Slide 1: 2023 Annual Results Update
2023 Annual Results Update 24 August 2023 Authorised by: Board of Navigator Global Investments Limited
Slide 2: Today's Agenda
01 02 Introduction Lighthouse Update Today’s Agenda 03 04 NGI Strategic NGI Strategic Investments Update Portfolio Transaction 05 06 Financial Results Closing & Q&A
Slide 3: Introduction
Introduction Sean McGould, CEO
Slide 4: Results Highlights
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Results Highlights NGI is uniquely positioned to deliver earnings growth Partnerships with 11 through a volatile and high caliber alternative asset challenging market management firms environment AUM
Slide 5: Unique ASX-listed alternative asset management company
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Navigator Global Investments is a unique ASX-listed asset management company, exclusively focused on the global alternative asset management sector $71 billion AUM $26 billion AUM on an 11 total firm
Slide 6: Resilient and Improving AUM Trends
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Resilient and Improving AUM1 Trends 25.5 22.9 Longreach Alternatives 20.9 Marble & Invictus USD billions 14.2 NGI Strategic Porfolio 11.8 Lighthouse Hedge Funds Lighthouse Managed Account Services Li
Slide 7: Positioning For and Supporting Growth
Positioning For and Supporting Growth 15 June 2023 announcement of a strategic initiative to unlock shareholder value and settle the 2026 redemption payment Accelerates full settlement of the 2026 redemption payment and the acquisition of remaining profit distributions from the NGI Strategic Portfol
Slide 8: NGI is a Compelling and Unique Value Proposition
NGI is a Compelling and Unique Value Proposition 1 Exposure to the earnings of leading global alternative asset managers 2 Established managers with proven track records 3 Highly diversified and growing earnings mix 4 Industry leading value-add strategic shareholder, GP Strategic Capital Investor1 5
Slide 9: Lighthouse Business Update
Lighthouse Business Update Sean McGould, CEO
Slide 10: Lighthouse Overview
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Lighthouse Overview Diversified and evolving platform Hedge Funds $15.4 billion $5.5 billion AUM1,3 Global Footprint Palm Beach Gardens Total assets1 North New York Rock Chicago 26 London Year track
Slide 11: Diversified AUM by Product and Client
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Diversified AUM by Product and Client Growth driven by hedge fund product inflows and strong relative performance AUM Trend AUM Composition 7% 15.4 Americas 14.2 13.9 14.4 Sovereign Wealth 66% Funds
Slide 12: Hedge Funds Driving the Return of Organic Growth
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Hedge Funds Driving the Return of Organic Growth Improved flows trend, $150m average net flows a quarter over the past year Net Flow Trends1 Quarterly Net Flows (USD billions) 0.50 0.35 0.30 0.32 Hed
Slide 13: Investment Performance
Investment Performance Strong relative investment performance through recent volatile markets Performance may vary among different share classes or series 30 June 2023 performance estimates for Calendar 3 year 3 month 3 year 5 year within a Fund. Past performance is not indicative of future select L
Slide 14: NGI Strategic Investments Update
NGI Strategic Investments Update Ross Zachary, CIO & Head of NGI Strategic Investments
Slide 15: NGI Strategic Investments – Strategic Objectives
NGI Strategic Investments – Strategic Objectives We have positioned the Group to benefit from high quality and growing earnings generated by a diversified portfolio of leading partner firms Expand our addressable Broaden revenues sources Accelerate earnings market across growing to benefit from attr
Slide 16: Partnering with Market Leaders in Alternatives
Partnering with Market Leaders in Alternatives Our strategy is designed to identify lasting firms and mitigate many of the risks inherent in the asset management business We partner with proven investors and operators who have strong investment track records, have demonstrated substantial AUM growth
Slide 17: Why Do Leading Alternative Asset Management Firms Partner with NGI?
Why Do Leading Alternative Asset Management Firms Partner with NGI? Benefits of a Minority Stake Why NGI? Scaled and proven platform Retain autonomy and alignment with clients Preserves partner firms' ability to properly High bandwidth and credible team with incentivize current and future talent
Slide 18: NGI Strategic Investments – AUM
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. NGI Strategic Investments – AUM Diversified AUM across the broad alternative asset management sector Assets Under Management1 Firm Level AUM by Asset Class AUM growth driven by both investment perfor
Slide 19: NGI Strategic Investments – Profit Distributions
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. NGI Strategic Investments – Profit Distributions Profit distributions are derived from a highly diverse set of management fee and performance-based revenue sources and strong alignment of interests w
Slide 20: NGI Strategic Portfolio – Profit Distributions
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. NGI Strategic Portfolio – Profit Distributions Portfolio of six established leaders in alternatives have benefits from their proven track records and market leadership positions Distributions Receive
Slide 21: NGI Strategic Portfolio Transaction
NGI Strategic Portfolio Transaction Ross Zachary, CIO & Head of NGI Strategic Investments
Slide 22: Transaction Highlights
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Transaction Highlights Repositions NGI to unlock substantial shareholder value On 1 August 2023, Navigator Global Investments entered into definitive transaction documents regarding settlement of the
Slide 23: Navigator Ownership Interests
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Navigator Ownership Interests Transaction illustrates GP Strategic Capital Investor’s conviction in Navigator and preserves alignment between them and other shareholders Current1 Pro Forma1 Ordinary
Slide 24: Equity Raising Update
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Equity Raising Update1 Based on the negotiated binding Implementation Agreement, the following update can be provided regarding the proposed equity raising from existing shareholders to fund a portio
Slide 25: Expected Transaction Impacts
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Expected Transaction Impacts Material improvement in NGI’s financial profile with higher Revenue, Adjusted EBITDA and lower leverage ratio Current Pro Forma Impact FY2023 FY2023 27% Total 44% Access
Slide 26: Indicative Timetable
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Indicative Timetable The transaction is expected to close in Q4 of 2023, subject to the timing of approvals Early Notice of Meeting and Explanatory Memorandum sent to shareholders September Annual Ge
Slide 27: 2023 Financial Results
2023 Financial Results Amber Stoney, CFO
Slide 28: 2023 Financial Results
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. 2023 Financial Results Our approach to diversification is Ownership Adjusted AUM underpinning growth 25.5 despite difficult +11% 20.9 22.9 global market conditions FY2021 FY2022 FY2023 Revenue & Othe
Slide 29: Navigator Annual Group Results
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Navigator Annual Group Results result Adjusted EBITDA up 5% on pcp (Unaudited, non-IFRS measure) 30 June 2023 30 June 2022 Change to pcp USD millions USD millions Management fees revenue 76.7 73.5 ▲4
Slide 30: Reconciliation of Statutory EBITDA to Adjusted EBITDA
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Navigator Annual Group Results result Reconciliation of 2023 Statutory EBITDA to Adjusted EBITDA Excluded from Adjusted USD millions (unaudited) Adjusted (unaudited, assets and liabilities Statutory
Slide 31: Key Revenue Items
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Key Revenue Items Management fees $76.7 million (▲ 4% pcp) Earned from the Lighthouse operating business, Average management fee rate %pa 75.6 73.5 76.7 management fee revenue has remained steady due
Slide 32: Key Net Operating Expense Items
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Key Net Operating Expense Items Employee expenses $54.8 million (▲8% pcp) Employee expenses are the major expense category for the NGI Group. 54.8 USD millions 47.9 50.7 Lighthouse employee compensat
Slide 33: Other Items
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Other Items Impact of ‘pass through’ expense model Financing income and costs With the progress made in growing NGI over the past year, the Group’s 94.5 financing profile has evolved. Whilst net fina
Slide 34: Breakdown of Results by Business Line
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Breakdown of Results by Business Line FY 2022 H1 2023 H2 20231 FY 2023 Lighthouse $13.1 million $8.7 million $21.9 million Operating Result $23.4 million NGI Strategic Investments $26.2 million $8.9
Slide 35: Annual Balance Sheet
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Balanceresult Annual Sheet USD millions 30 June 2021 30 June 2022 30 June 2023 High cash conversion each year. Cash 52.1 94.0 67.8 Deferred purchase consideration structured to be paid over multi
Slide 36: Dividend
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Dividend NGI is allocating operating cash flow to fund growth FY2023 Dividend Total Continues to be Implied yield Adjusted EBITDA annual dividend unfranked Single final dividend 3.3% payout ratio 3.0
Slide 37: Closing Remarks
Closing Remarks Sean McGould, CEO
Slide 38: In Closing
In Closing NGI is well positioned to deliver in today's market environment Recently announced transaction to acquire the remaining profit distributions from the NGI Strategic Portfolio simplifies the balance NGI Strategic sheet, increases financial resources, and positions the company for Portfolio
Slide 39: Q&A
Q&A
Slide 40: Appendices
Appendices \ Y
Slide 41: Navigator Annual Group Results
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Navigator Annual Group Results result Statutory EBITDA up 7% on pcp 30 June 2023 30 June 2022 Change to pcp USD millions USD millions Management fees revenue 76.7 73.5 ▲4% Performance fee revenue 6.9
Slide 42: NGI Strategic Portfolio - AUM
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. NGI Strategic Portfolio - AUM Portfolio of six established leaders in alternatives that benefit from their proven track records and market leadership positions Portfolio Assets Under Management1 Owne
Slide 43: Partnership with GP Strategic Capital Investor
Partnership with GP Strategic Capital Investor1 (fka Dyal Capital) Strategic shareholder is the global leader in partnering with alternative asset managers globally Overview of GP Strategic Capital Investor1,2 $50.9B Built on experience, permanence, and Underlying partners gain access to over alignm
Slide 44: Focus on Market Leaders with Sustainable Growth
Focus on Market Leaders with Sustainable Growth Our criteria is designed to identify those managers that will continue their already impressive growth and strong performance Navigator seeks opportunities with the potential for long term growth and sustained profitability driven by scaling existing p
Slide 45: Our Approach
Our Approach Our strategy is designed to identify lasting firms and mitigate many of the risks inherent in the asset management business We recognise that the critical entrepreneurial spirit and partnership focused A Focus on approach should be maintained, yet balanced with institutional quality ope
Slide 46: Marble Capital
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Marble Capital Proven investment capacity, deep market expertise and attractive risk adjusted return profile Firm Overview Investment Strategy Target Target preferred equity investments up to 70-75
Slide 47: Invictus Capital Partners
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Invictus Capital Partners Deep client relationships and ability to invest tactically across market segments and generate strong risk adjusted and uncorrelated returns Firm Overview Investment Strateg
Slide 48: NGI Operates and Invests in the Most Attractive Area of Asset Management
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. NGI Operates and Invests in the Most Attractive Area of Asset Management Alternatives are the faster growing segment of the Key drivers of growth in alternative assets classes Asset Management indust
Slide 49: Disclaimer
The numbers in this presentation have been presented in US dollars (USD) unless otherwise indicated. Disclaimer This presentation has been prepared by Navigator Global Investments Limited (NGI) and provides information regarding NGI and its activities current as at 24 August 2023. It is in summary f
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