Praemium Ltd · ASX:PPS
Praemium — FY2016 Earnings Presentation
17 slides from Praemium's earnings presentation, Aug 15, 2016
Slide 1: FY2016 Annual results
For personal use only FY2016 Annual results 15 August 2016
Slide 2: Disclaimer
Disclaimer For personal use only The material contained in this document is a presentation of general information about the Praemium Group’s activities current as at the date of this presentation (15 August 2016) and is supplementary to the Group’s financial results released to the ASX on 15 August
Slide 3: Global reach, global scale
Global reach, global scale For personal use only Software company founded in Melbourne in 2001 ASX listing in 2006 to launch our UK business in London Expanded to 8 offices globally with over 190 staff And over 700 clients covering $80 billion in assets Our aim is to help transform the financi
Slide 4: What we do
What we do For personal use only Our global strategy is to provide a fully integrated solution to the financial advice process Our services Our clients Managed accounts platform (SMA) Financial advisers Portfolio administration and reporting Stockbrokers software (V-Wrap) Financial institu
Slide 5: SMA disrupting platform market
SMA disrupting platform market For personal use only Master Trusts Market forces driving disruption (1990s) Customer demand for transparency; in particular SMSF’s seeking professional investment management, beneficial ownership and tax advantages Wrap Platforms (2000s) Evolution of retail broker
Slide 6: Scalable business model
Scalable business model For personal use only Investment Platform (SMA) Software as a Service (SaaS) Asset based pricing, based on FUA invested on Portfolio administration and financial planning SMA platforms ($4.8b*) software Recurring revenue streams from: Subscription based pricing, based on port
Slide 7: FY2016 highlights
FY2016 highlights For personal use only Revenue 23% Profit growth SMA FUA 25% $30.1 million $3.8 million EBITDA*, up 72% Global FUA $4.8 billion (AUS $3.0b, International $1.8b) $0.8 million NPAT, up 137% Record annual inflows $1.6 billion Products launched Awards Client wins Smartfund 80% Protected
Slide 8: Financial results
FY16 financial results For personal use only FY15 FY15 FY15 Group Financial Results Reported AUS R&D Normalised FY16 FY16 to normalised FY15(1) ($m) ($m) ($m) ($m) Revenue 24.4 (1.1) 23.3 30.1 29% underlying growth Cost of operations (6.1) (6.1) (7.0) Gross margin 18.3 (1.1) 17.2 23.1 Operating leve
Slide 9: Revenue by segment
FY16 revenue by segment 23% revenue growth For personal use only By product… By region… 35.0 Product Revenue 35.0 Group Revenue ($ million) ($m) 30.0 30.0 25.0 25.0 Portfolio services AUS SMA 20.0 20.0 UK Planning software ASIA Other 15.0 15.0 10.0 10.0 5.0 5.0 0.0 - FY12 FY13 FY14 FY15 FY16 FY12 FY
Slide 10: EBITDA by half
FY16 EBITDA by half Confirming the operating leverage For personal use only $m H1 H2 FY16 H2 EBITDA (pre R&D incentive) up 123% EBITDA (pre R&D) 0.7 1.8 2.5 Growth in recurring revenue streams UK R&D incentive 1.1 0.2 1.3 High incremental margins from core products EBITDA (underlying) 1.8 2.0 3.
Slide 11: EBITDA by segment
FY16 EBITDA by segment Building scale in key markets For personal use only Segment EBITDA 10.0 9.7 Australia delivering strong earnings ($m) FY14 FY15 EBITDA increase of 10% from prior year FY16 (24% increase to FY15 normalised) 5.0 Maintained strong EBITDA margins of 48% Significant reduction i
Slide 12: Australia result
FY16 Australia result Australia – continuing strength For personal use only SMA SMA adoption is accelerating FUA of $3.0 billion, annual increase of 26% Platform retail super FUA increase to $289m from $84m 450 Client inflows by Cohort Increasing client adoption of SMA investment platform: ($ millio
Slide 13: UK result
FY16 UK result For personal use only UK – gaining momentum 1,000 UK FUA FUA of £923 million, annual increase of 30% (£m) In-house investment management Smartim Platform Platform + models delivering incremental margin and scale: Funds FUA of £245 million, 44% annual increase 500 Smartfund 80% Pro
Slide 14: UK trend
FY16 UK trend For personal use only UK – approaching the inflexion point UK Growth Trend GBP (£m) GBP (£m) Strong revenue growth relative to expenses over past 2 years 7.0 1,000 6.0 20% Investment in Smartim in FY14 is delivering margin expansion 16% 750 5.0 Innovative capital protected range growin
Slide 15: Looking forward
Looking forward For personal use only Continue to grow funds under administration Accelerate on-boarding of new SMA clients Secure new clients looking to transform their business with a more efficient platform experience Secure new model portfolio business for our Smartim Expand distribution
Slide 16: Appendix: Cashflow
Appendix: Cashflow For personal use only $m FY15 FY16 Positive operating cashflows Operating cashflow 2.3 1.6 Working capital timing: $1.7 million received post FY16 R&D incentive 1.7 0.9 UK R&D received as cash (FY15 also included AUS) Tax paid - (0.9) Initial company tax payment on AUS profi
Slide 17: Appendix: Balance sheet
Appendix: Balance sheet For personal use only $m Jun’15 Jun’16 Cash 11.5 10.4 Receivables 3.1 5.3 Solid balance sheet to fund growth Intangibles 5.2 4.3 $10.4 million in cash reserves Other assets 2.7 3.3 Increase in receivables from June Assets 22.5 23.3 billing, now collected in July Tax liabi