15 slides from Microequities Asset Management's earnings presentation, Aug 23, 2018
Slide 1: FY18 Results Presentation
For personal use only MICROEQUITIES ASSET MANAGEMENT GROUP LIMITED | FY18 RESULTS PRESENTATION | 23rd AUGUST 2018 | microequities.com.au
Slide 2: Legal Disclaimer
LEGAL DISCLAIMER For personal use only The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and obs
Slide 3: About Microequities
ABOUT MICROEQUITIES For personal use only Microequities Asset Management (Microequities) is a specialist microcap & small cap fund manager ▪ Business commences operations in 2006 ▪ Expands into funds management in 2008 ▪ Launches flagship Deep Value Fund in March 2009 ▪ Becomes unlisted public compa
Slide 4: Our Business Model
OUR BUSINESS MODEL For personal use only TWO MAIN SOURCES OF REVENUE MANAGEMENT FEES PERFORMANCE FEES • Recurring in nature, invoiced • Non-recurring, subject to monthly performance hurdles being • Key operating metric as recurring surpassed in nature and generally • Can have large variances in pred
Slide 5: Board of Directors & COO
BOARD OF DIRECTORS & COO For personal use only Les Szekely- Non Executive Chairman Les worked as a solicitor before teaching commercial and revenue law at the University of New South Wales, and Sydney University. He was a tax consulting partner with Horwaths Chartered Accountants for 20 years, until
Slide 6: FY18 Overview
FY18 OVERVIEW For personal use only Financial & Operational Overview • Operational achievements FY18: – Successfully launched the Pure Microcap Value Fund – Positive absolute return performance across all our open ended funds – Successful fully oversubscribed IPO at minimal cost & disruption to the
Slide 7: FY18 Financial Results Highlights
FY18 FINANCIAL RESULTS For personal use only HIGHLIGHTS Financial Results Highlights FY17 FY18 FUM $365m $432m +18.4% Recurring revenue* $4.9m $7.0m +42.0% Ongoing operating expenses $2.5m $3.2m +24.0% Operating profit from recurring revenue $2.4m $3.9m +61.3% Normal opex cost/rec. revenue 51.6% 45.
Slide 8: FUM Growth
FUM GROWTH For personal use only Funds Under Management $m As of 30/06/2018 $500 $450 $400 $350 $300 $250 $200 $150 $100 $50 $0 FUM Jun-13 Jun-14 Jun-15 Jul-16 Jun-17 Jun-18 Strong year-on-year growth across all open ended funds MICROEQUITIES ASSET MANAGEMENT GROUP LIMITED 8
Slide 9: Product Profile
PRODUCT PROFILE For personal use only Product profiles (As of 30/06/2018) FUND Inception Objective Size Deep Value March 2009 Capital Growth $209m High Income Value Microcap March 2012 Income + Capital Growth $52m Global Value Microcap December 2015 Capital Growth $59m Pure Microcap Value October 20
Slide 10: FUM by Product
FUM BY PRODUCT For personal use only FUM ACROSS PRODUCTS As of 30/06/2018 FUND SIZE A$ Other Funds 16% Deep Value $209m High Income $52m Pure Microcap Global Value $59m 10% Deep Value 48% Pure Microcap $42m Other Funds $70m Global Value 14% Total $432m High Income 12% MICROEQUITIES ASSET MANAGEMENT
Slide 11: Balance Sheet Further Strengthened
BALANCE SHEET FURTHER For personal use only STRENGTHED Balance Sheet Summary as of 30/06/2018 FY17 FY18 Assets Increase in NTA via retained earnings ✓ Cash and Equivalents $3.7m $6.6m No financial debt and strong cash position ✓ Trade and other receivables $3.8m $0.8m Financial Assets $2.8m $2.9m Ne
Slide 12: Client Growth
CLIENT GROWTH For personal use only Average aggregate investment per client A$ Jun-18 835 $600 Thousands Jun-17 769 $550 $500 Jun-16 521 $450 $400 Jun-15 323 $350 Jun-14 179 $300 Client Numbers $250 Jun-13 73 $200 Jun-15 Jun-16 Jun-17 Jun-18 0 200 400 600 800 1000 Outstanding client growth. Clients
Slide 13: FY19 Our Strategy
FY19 OUR STRATEGY For personal use only PRIORITIES AND INITIATIVES • Our core function & investment values: – Laser focus on our long term growth driver; capital deployment – Value investment doctrine continues to be strictly upheld – Pockets of attractively priced investment opportunities being act
Slide 14: Our Investment Case
OUR INVESTMENT CASE For personal use only The fundamental pillars of our investment case • Our managed asset classes are fast growing ✓ • Experienced & stable management team ✓ • High quality business model ✓ • History of very strong FUM & profit growth ✓ • Solid & clean balance sheet ✓ • High free
Slide 15: For personal use only
For personal use only MICROEQUITIES ASSET MANAGEMENT GROUP LIMITED | FY18 RESULTS PRESENTATION | 23rd AUGUST 2018 | microequities.com.au