Pacific Current Group Ltd · ASX:PAC
Pacific Current — Treasury Group — H1 2013 Earnings Presentation
16 slides from Pacific Current's earnings presentation, Feb 21, 2013
Slide 1: Strong interim result and 21% dividend uplift
ASX announcement Thursday 21 February 2013 Strong interim result and 21% dividend uplift • NPAT up 43% (on H1 2012) to $6 million • Solid growth in underlying NPAT, up 7% on H1 2012 • Total FUM at $17.0 billion, up 8% on H1 2012 • Leading performers, RARE, IML and Celeste drive FUM uplift • Shift in
Slide 2: CEO comment and summary of Profit and Loss
Treasury Group’s Chief Executive Officer, Mr Andrew McGill commented: “This was a pleasing result for the Company, led by strong contributions from RARE, IML and Celeste combined with the realisation of cost saving initiatives executed in the prior year. “Encouragingly, the shift in our FUM mix towa
Slide 3: Treasury Group Limited Interim Results presentation
Treasury Group Limited Interim Results presentation 31 December 2012
Slide 4: Agenda
Agenda 1. Financial highlights – 6 months ending 31 December 2012 2. Operational review 3. Funds under management 4. Dividend 5. Outlook & Summary 2
Slide 5: Financial Highlights – underlying profit growth driven by RARE, IML and Celeste
1. Financial Highlights – underlying profit growth, driven by growth in RARE, IML and Celeste • NPAT up 43% (on H1 2012) to $6 million • Solid growth in underlying profit – up 7% on H1 2012 • Total FUM at 31 December 2012 – $17.0 billion, up $1.1 billion (or 8%) on H1 2012 • Strong performance acros
Slide 6: Financial Highlights – growth in FUM; NPAT up 43%
1. Financial Highlights – growth in FUM ; NPAT up 43% P&L Highlights ($m) H1- 2013 H1 -2012 % Change • Growth in FUM of 7.8% year on year due to funds inflow at RARE, IML & Year end FUM ($bn) 17.0 15.8 7.8% Celeste and market gains, partially Aggregate Boutique Mgmt Fees ($m) 37.8 33.4 12.9% offset
Slide 7: Financial Results – Underlying NPAT up 7%
1. Financial Results – Underlying NPAT up 7% Treasury Group P&L ($000) H1- 2013 H1 -2012 % Change Profit After Tax 6,027.5 4,203.3 43.3% • $396k net gain from disposal of Net gain on disposal of investments (396.3) 104.4 investments (PRV, other) • $500k settlement fee from PRV. Settlement fee from P
Slide 8: Financial Results – Aggregate Profit & Loss of TRG Boutiques
1. Financial Results – Aggregate Profit & Loss of TRG Boutiques % Aggregate P&L for Boutiques ($m) H1- 2013 H1 -2012 change • Average net margin higher due Year end FUM ($bn) 17.0 15.8 7.8% to improved mix (increased Average Net Margin (%) 54 bpts 52 bpts 2.0% retail FUM) Management Fees 37.8 33.4 1
Slide 9: Operational Review - Business Activity during 1H 2012
2. Operational Review - Business Activity during 1H 2012 • Strong performance from RARE, IML and Celeste • Multiple Fund Manager of the Year awards/nominations for IML and Celeste • Strong initial ratings for Aubrey, Octis and Evergreen • Restructure of PRV completed • Restructure of Dublin UCIT pla
Slide 10: FUM & Performance – shift in FUM mix towards RARE & IML
2. FUM & Performance – shift in FUM mix towards RARE & IML $17.0 billion FUM as at 31 December 2012 Celeste Evergreen, AR Aubrey & GVI 4% Capital & Octis 1% IML 2% 22% Trilogy 19% IML Orion TAAM RARE Trilogy Aubrey & GVI Orion Celeste 16% Evergreen, AR Capital & Octis RARE 33% TAAM 3% 8
Slide 11: FUM & Performance – Increasing exposure to International & Alternatives
2. FUM & Performance – Increasing exposure to International & Alternatives FUM by Investor Type FUM by Investor Location FUM by Product Type 18 18 $bn $bn 16 16 100% 14 14 80% 12 12 10 10 60% 8 8 6 40% 6 4 4 20% 2 2 - - 0% Dec-12 Jun-05 Jun-06 Jun-07 Jun-08 Jun-09 Jun-10 Jun-11 Jun-12 Dec-12 Jun-05
Slide 12: Funds flow review
3. Funds flow review TRG Net Funds Flow 1,500 (July 2007 to December 2012) • Inflows at RARE, IML & Celeste more than offset 1,000 by large outflows at Orion & Trilogy during 500 $m H1 2013 0 • Chart shows Net Flow not change in FUM (500) (1,000) (1,500) 10
Slide 13: Strong FUM growth at RARE and IML drives average margin higher
4. Strong FUM growth at RARE and IML drives average margin higher Composition of FUM vs Average Margin 18 80 FUM Avg Margin $bn (bps) 16 70 14 60 12 50 Trilogy Aubrey, Evergreen & AR Capital 10 40 Celeste 8 TAAM Global Value Investors 30 6 RARE Infrastructure Orion 20 4 Investors Mutual % incl Trilo
Slide 14: Dividend
5. Dividend Dividend History 50 45 40 • Interim dividend for 2013 up 21% 35 (on H1 2012) to 17 cents per share 30 cps 25 • Balance sheet liquid and ungeared 20 • Implied payout ratio of 65% 15 10 5 0 2009 2010 2011 2012 2013 Interim Final 12
Slide 15: Outlook & Summary
6. Outlook & Summary • Solid underlying growth driven by improved market conditions and increased flows from retail investors • Strong growth from IML, RARE & Celeste offset by reduced contribution from Orion • Shift in FUM towards retail funds boosts overall margin and profits • Interim dividend up
Slide 16: Disclaimer
Disclaimer The information in this presentation is general background information about Treasury Group Limited 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 Treasury Group Limited