Pacific Current Group Ltd · ASX:PAC
Pacific Current — FY2022 Earnings Presentation
39 slides from Pacific Current's earnings presentation, Aug 26, 2022
Slide 1: FY2022 Results Announcement and Investor Presentation
ASX ANNOUNCEMENT 26 August 2022 FY2022 Results Announcement and Investor Presentation Pacific Current Group Limited (ASX:PAC) attaches the following documents relating to PAC’s Full year 2022 results announcement: • FY2022 Results Announcement; and • FY2022 Investor Presentation. AUTHORISED FOR LODG
Slide 2: Pacific Current Group FY22 Year Results
Tacoma // Denver // Sydney // Melbourne ASX ANNOUNCEMENT 26 August 2022 PACIFIC CURRENT GROUP FY22 YEAR RESULTS Year ended 30 June 2022 SYDNEY (26 August 2022) - Pacific Current Group (ASX:PAC, “Pacific Current”) is pleased to report the Company’s full year results for the period ending 20 June 2022
Slide 3: ASX Announcement Page 2 of 3
ASX ANNOUNCEMENT Page 2 of 3 Aggregate funds under management (FUM) grew 19%, from A$142b to A$169b. FUM increased 18%, ex GQG, due to strong capital commitments for many of PAC’s private capital boutiques. In August 2021, PAC forecast that its portfolio companies, ex GQG, would receive A$3b to A$8b
Slide 4: Conference Call
ASX ANNOUNCEMENT Page 3 of 3 CONFERENCE CALL Pacific Current Group would like to invite you to join our conference call to be held at 9:00am (AEST) on Monday, 29 August 2022. The presenters will be Paul Greenwood, MD & CEO and CIO and Ashley Killick, CFO. INVESTOR CONFERENCE CALL DETAILS The call wi
Slide 5: Full Year 2022 Results Presentation
PACIFIC CURRENT GROUP FULL YEAR 2022 RESULTS PRESENTATION PRESENTERS Paul Greenwood Ashley Killick Managing D 26 August 2022
Slide 6: The information in this presentation is general information about Pacific
The information in this presentation is general information about Pacific Current Group (‘Pacific Current’ or ‘PAC’) and is current only at the date of this presentation. In particular, this presentation = is not an offer or recommendation to purchase or subscribe for securities in Pacific Current,
Slide 7: FY22 Overview
FY22 Ove vie Pacific Current Group (PAC) is a global investor in investment management firms, with stakes in 16 investment firms across the US, Europe, Asia and Australia. PAC’s boutiques offer a diverse range of investment products across multiple asset classes, delivering sustainable and growing m
Slide 8: FY22 Underlying Results
FY22 Underlying Results Strong growth in performance fees Four core drivers: management fees, performance fees, commissions, & corporate overheads Gsm asm) | 38m SSM Soalinaliad Revenues EauileWe mene gEMremilEES sa 28 Bai FD SG CRE eieei RA encuentra Boutique performance fees 68 145 54 105 Signific
Slide 9: Underlying Revenues (US$)
Underlying Revenues (US$) 450 38.5 oe) 307 ang 36.2 29 i af 29 34 30 250 200 180 100 50) ma we Eo PAC’s management fee related revenues fell 5%. This stemmed primarily from only recognizing 9 months of GQG related earnings (due to an intra year accounting change). If able to recognize 12 months, man
Slide 10: Management Fee Profitability
30 25 20 15 10 5 0 Management Fee Profitability 1H Management Fee Profitability 2H Underlying NPBT GQG Dividend not recognised in this period
Slide 11: PAC Net Asset Value
PAC < N et Asset PAC NAV movement (A$) Va u e . A$525m ° 00 0 AS383m AS402m A$402m, 400 “se ° Continued growth in Net So Assets, most notably driven 300 5 through realizations in the on , portfolio 100 2 Fy2017 Fy2018 Fy2019 Fy2020 Fy2021 Fy2022 mmm PAC NAV (LHS) NAV/Share (RHS) ——=PAC Share Price (
Slide 12: Pacific Current Group
2.0 1.5 Pacific Current Group 1.0 0.5 0.0
Slide 13: Portfolio Update
PORTFOLIO UPDATE PACIFIC CURRENT GROUP
Slide 14: 300% $86,700 250% $529 200% $2,371 150% $6,237 $5,436 100% $1,415 $4,021 $9,286 50%
300% $86,700 250% $529 200% $2,371 150% $6,237 $5,436 100% $1,415 $4,021 $9,286 50% $2,157 $1,589 $15 0% -50% -100% -150% -200% -250% -300% -350% -400%
Slide 15: PAC Tier Boutiques Update
PAC Tier 1 Boutiques Update 2008 investment 7 AETHER | Piivate equity, real assets “| USA = In market with Aether Seed Fund. Secured initial USS70m commitment in 2H22 Targeting US$250m - US$500m fund size Improved commodity prices and inflation bring momentum back to the real asset space top 1b 1b 1
Slide 16: PAC Tier Boutiques Update
PAC Tier 1 Boutiques Update aR FR _ Global international, G OG & EM equity 2016 investment PARTNERS USA «Listed on ASX in October in largest IPO of year * Investment performance has been exceptionally strong and inflows continue despite difficult equity markets * PAC's 4% holding no longer subject t
Slide 17: PAC Tier Boutiques Update
PAC Tier 2 Boutiques Update | Piivate equity, real assets , International and global equity . Private and listed infrastructure Astarté 202K investment Blackcrane yf 2014 investment BS CAMGLEP 2018 investment PA | UK APITA USA UK = Initial Fund (ASOP 4) investments tracking well © Very difficult per
Slide 18: PAC Tier Boutiques Update
PAC Tier 2 Boutiques Update e Global, international, & yi E A M EM small cap equity 2014 investment USA «Received large additional Australian institutional mandate in 1H22 * Investment results trailed indices, though consistent with expectation given growth orientation of investment strategy 1.6b 1.
Slide 19: PAC Tier Boutiques Update
PAC Tier 2 Boutiques Update /@ NORTHERN LIGHTS Placement agent 2014 investment UK FY22 was strong year and business appears to be accelerating * PAC expects increasing distributions over next several years PACIFIC CURRENT GROUP Pennybacker Capital Private real estate 2019 investment USA * In market
Slide 20: Outlook
OUTLOOK PACIFIC CURRENT GROUP
Slide 21: Investment Opportunities
i Ad InvestmentOpp ortunities Opportu Infrastructure 4% Private Real Estate 11% Private Equity 28% Hedge Fund 11% Public Equity (long only) 13% Private Debt 17% Misc, Alternatives 17% PACIFIC CURRENT GROUP More difficult macroeconomic environment having little impact on deal flow. ies by asset class
Slide 22: Operational Outlook
Operational Outlook SS, capable (©) ictable. growth i PACIFIC CURRENT GROUP. Expect modest increases in expenses, primarily due to increased travel and increased compensation expenses, including commissions. PAC expects an additional AS3b-A$5b of gross new allocations, ex GQG, for FY23. Expect to fu
Slide 23: Financial Outlook
Financial Outlook PACIFIC CURRENT GROUP. PAC expects double digit revenue growth in FY23, biased toward 2H23 due to: Recognition of 12 months of GQG earnings (rather than 9 months recognized in FY22); Annualization of investment in Banner Oak; Revenue growth from VPC and Pennybacker; Progress with e
Slide 24: Appendices
APPENDICES PACIFIC CURRENT GROUP
Slide 25: Pacific Current Overview
Pacific Current Ov Pacific Current is an ASX-listed, global, multi-boutique asset management business, which leverages its experience and resources to identify exceptional asset managers and help them grow. Shares on Issue 51,149,723 Market Cap (30 June 22) $354M 52-Week High $9.54 52-Week Low $5.97
Slide 26: Statutory Profit or Loss
A$000s FY21 FY22 Statutory income Statutory Profit Revenue from operations 20,123 21,646 Oo r Loss Distributions and dividend income 26,686 22,418 Other income 237 138 ¥ Changes in fair value 4,160 (66,741) Résults include theg@Vvenues Loss on sale of investment (2,250) : Gain/{loss) on derecognitio
Slide 27: Statutory to Underlying Reconciliation
Statutory to a TE - Reported NPBT/(NLBT) 23,465 (48,186) ‘ U nderlyi ng Non-cash items ~~ Amortisation expenses 5,846 7,218 Reconci | iation o Fair value adjustment of financial assets (6.850) 66,327 Fair value adjustment of financial liabilities 1,690 414 Impairment of investments and financial ass
Slide 28: Underlying Revenues / Profit Drivers
U n re| e rl i n $000s FY21(A$) FY22 (A$) FY21 (US$) FY22 (US$) . y < g Revenues 2,588 4,001 1,931 2,902 Profit Drivers Employment 8,492 9,084 6,336 6,589 Marketing/commissions 266 160 199 116 said i 1, _Ttavel/entertainment 16 393 12 285 Underlying NPBT and NPAT 2 Advisory, tax and accounting 4,805
Slide 29: Underlying Functional P&L Summary
U nderlying A$000s FY22 FY21 Investment Sales Group Total Total _ Functional P&L Undeding Revenues “yy Boutique contributions S umma ry ¥ Management fees 32,523 - - 32623 33,276 ge Performance fees 14,476 - - 14,476 6,846 Unrealized MIM (1,154) - - (1,154) 4,070 Reve Boutique contributions 45,845 -
Slide 30: Balance Sheet
(A$000s) 30 J 21 30 J 22 Statutory cash 78208 25 34,886 Other current assets 21,982 12,116 _ Balance Sheet Ron “a Investments in associates and joint ventures 132,058 195,117 F ¥ Intangible assets 52,705 54,315 m= Other financial assets 221,774 304,785 Reflects the consoliGation of Other assets 1169
Slide 31: Alternate Balance Sheet
Alternate (AS000s) 30 June 21 30 June 22 Cash 21,032 23,480 Balance Sheet Other current assets 20,368 9/342 Current liabilities (14,828) (17,974) Sd PAC's investable cash 26,572 14,848 Reflects deconsoligation of i bsidiaries (i.e. Investment in boutiques Subsidiaries 57,464 61,378 Associates & join
Slide 32: Statutory Cash Flow
Statutory Cash ra F | ow Net receipts from customers/suppliers/financiers Notable for FY22 "Dividends from Carlisle lower in FY22 impacting dividends received * Increased investments in IFP and CAMG totalled AS6.4m and investment in Banner Oak was AS47.8m "The sale of 1% stake in GQG provided the Gr
Slide 33: Alternate Cash Flow
Alternate Cash 8000s aa — Underlying NPBT 32,578 35,385 F | OW Accounting earnings from boutiques (36,498) (35,005) Dividends from boutiques 34,515 33,762 < Net interest income (26) 23 Reconciles the undéflying Depreciation and amortisation 819 508 Changes in operating assets and liabilities 388 2,1
Slide 34: PAC Boutique Investments
PAC Boutique Investments Private equity, real assets 2008 investment USA Aether Investment Partners (Aether) is an alternative investment manager sponsoring closed-end limited partnerships focused on private investments in real assets * Primary sectors include natural resources and infrastructure. «
Slide 35: PAC Boutique Investments
PAC Boutique Investments CAMG LLP > : Private and listed infrastructure 2018 investment UK Capital and Asset Management Group (CAMG) is a London-based developer and manager of infrastructure assets. * CAMG is working on a combination of investment vehicles investing in developmental and value-add as
Slide 36: PAC Boutique Investments
PAC Boutique Investments INDEPENDENT [rewanctan] PARTNERS Hybrid RIA platform 2019 investment USA Independent Financials Partners ("IFP") is a hybrid Registered Investment Advisor (RIA), broker-dealer, and general insurance agency that serves as a back and middle office for financial professionals w
Slide 37: PAC Boutique Investments
PAC Boutique Investments PROTERRA Private equity and private credit, natural resources 2019 investment USA Proterra Investment Partners (Proterra) manages private equity and private credit strategies focused on global natural resources. + The investment team's industry experience, dedicated emphasis
Slide 38: Key Definitions
Key Definitions PACIFIC CURRENT-GROUP Underlying Results/Earnings Unaudited and non-IFRS financial measures used by PAC management to reflect the recurring elements of PAC’s business. Boutique Contributions PAC's economic entitlement from portfolio company/boutique investments including Management F
Slide 39: Tips for Analyzing PAC Revenue Recognition
Ti ps for Revenue recognition Ana | Zi n PAC = Private equity, private infrastructure, and private real estate managers normally charge fees on y g committed capital. Thus, new FUM generates revenue immediately after the legal commitment is received, even though it may take several years to invest t