Pengana Capital Group Ltd. · ASX:PCG
Pengana Capital — FY2017 Earnings Presentation
22 slides from Pengana Capital's earnings presentation, Aug 30, 2017
Slide 1: Pengana Capital Group Final Results for the Year to 30 June 2017
PENGANA CAPITAL GROUP Final Results For the Year to 30 June 2017 Russel Pillemer Chief Executive Officer Katrina Glendinning Chief Financial Officer
Slide 2: Table of Contents
TABLE OF CONTENTS 1 Overview 2 FY 2017 Highlights 3 FY 2017 Results 4 The Future 6 2
Slide 3: 1. Overview
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Slide 4: Pengana Capital Group
Pengana Capital Group • PCG is a leading provider of premium products; benchmark-unaware and actively managed • Proven long-term performance over multiple funds • Focused on the retail market through financial advisors with larger sophisticated clients as well as direct SMSF’s and HNW’s • FUM of cir
Slide 5: Strengths and Opportunities
Strengths and Opportunities • A leading retail brand in benchmark-unaware actively managed equities • A diverse high quality offering across Australian and International equities; proven long term performance across multiple funds • Capitalise on increasing demand in benchmark-unaware, absolute retu
Slide 6: Funds Under Management
Funds Under Management 1 Historical Growth in FUM ($m) FUM Strategy Breakdown (30/6/2017) $3,500 $3,127 6% 1% $3,000 $2,879 1% $2,528 $794 $2,500 $2,140 $1,140 $2,020 $2,000 24% 43% $1,117 $960 $1,500 $1,115 $2,333 $1,000 $1,739 $1,411 $1,180 $500 $905 25% $0 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017
Slide 7: Diversified Range of Funds
Diversified Range of Funds 1 Acronym Primary Fund Name Strategy Strategy FUM Base Fee; Performance Fee (Primary Fund) 2 at 30/6/17 ($m) PAEF Pengana Australian Equities Australian Multi-caps 1,344 1.0%; 10% above 0% PECF Pengana Emerging Companies Australian Small-caps 783 1.3%; 20% above ASX Small
Slide 8: Revenue Potential From a Range of Performance Fees
Revenue Potential From a Range of Performance Fees Note, this is not a forecast and is provided as a simplified mathematical illustration only. Investors and shareholders need to make their own assessments of these matters. Performance Fees (“PF”) and Outperformance Since Inception (“SI”) Primary FU
Slide 9: 2. FY 2017 Highlights
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Slide 10: 2017 Highlights
2017 Highlights Pengana Pre Merger • Maintained long term performance track records across strategies • Growth in FUM of 34% during the 2017 financial year (4Y CAGR of 27%) • Improved ratings and accessibility for Pengana Global Small Companies Fund • Extensive equitisation of team members Post Merg
Slide 11: An Aligned Team
An Aligned Team • Employees and fund managers own 38.8% of PCG equity; non-executive directors own 5.7% • Prior to merger, Pengana Holdings further equitised team via a 7 year equity loan structure that is significantly “in-the-money” • Value of loans at issue was $27.2m vs market value of $66.3m at
Slide 12: 3. FY 2017 Results
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Slide 13: Pengana Capital Group "Adjusted" Operating EBITDA
Pengana Capital Group “Adjusted” Operating EBITDA 1 30 June 2017 ($000) Pengana - Excluding HHL Operating revenue 14,565 Net fund administration expenses (1,711) Ongoing operating expenses (13,331) Net performance fees 2. 5,530 Pengana adjusted operating EBITDA excluding HHL 5,053 HHL 12 months oper
Slide 14: Reconciliation to Audited Annual Report
Reconciliation to Audited Annual Report 30 June 2017 ($000) Adjusted operating EBITDA for merged entity 11,182 HHL 11 months operating EBITDA (5,706) Return on other investments and cash 2,771 Merger expenses – reverse acquisition and restructuring costs (4,504) Employee loan share costs – share bas
Slide 15: Financial Assets
Financial Assets ($m) Balance Sheet Assets Cash for Licenses 5.0 AFSL requires $2.5m of cash per license; held in bank deposits Other net cash 6.4 Currently held on bank deposit Investment in Funds / LIC 18.3 Invested across a range of PCG strategies with daily liquidity Total on-Balance Sheet 29.7
Slide 16: 4. The Future
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Slide 17: Key Focus for FY2018
Key Focus for FY2018 • Maintain long term performance track records and ratings across funds • Achieve ratings and platform accessibility for: • Pengana international equity funds (“PIEF, VGT, GET”) • Pengana Australian Equities Income strategy (“PAEIF”) • Pengana WHEB Sustainable Impact Fund (“WHEB
Slide 18: Platform for Long Term Growth
Platform for Long Term Growth 1 2 3 4 1 2 3 4 Superior Business Model Scalable Infrastructure Distribution and Brand Acquisition Opportunities • Attract, retain and align • Manage significantly • FUM growth in existing • Attractive partner/buyer “in-house” teams larger asset base with low and new fu
Slide 19: A Simplified Illustrative Model for Projecting Earnings
A Simplified Illustrative Model for Projecting Earnings ($m) 1 Note, this is not a forecast and is provided as a simplified mathematical illustration only. Investors and shareholders need to make their own assessments of these matters. 2017 Illustrative assumption / calculation re increment above Il
Slide 20: Disclosures
Disclosures Pengana Absolute Return Asia Pacific Fund – Performance Simulation These performance figures show the returns of the Absolute Return Asia Pacific Fund from inception on 1 September 2010 to the current date and, for the period prior to 1 September 2010, the since inception returns for the
Slide 21: Disclaimer
Disclaimer This presentation has been prepared by Pengana Capital Group Limited (ABN 43 059 300 426) (PCG). The information in this presentation is current as at 30 August 2017. This presentation is not an offer or invitation for subscription or purchase of securities or a recommendation with respec
Slide 22: For More Information
THANK YOU FOR MORE INFORMATION PENGANA CAPITAL GROUP ABN 43 059 300 426 Level 12, 167 Macquarie Street, Sydney, NSW 2000 T: +61 2 8524 9900 F: +61 2 8524 9901 E: clientservice@pengana.com PENGANA.COM 22 22