Hmc Capital Limited · ASX:HMC
Hmc Capital — H1 2025 Earnings Presentation
37 slides from Hmc Capital's earnings presentation, Feb 18, 2025
Slide 1: 1H FY25 Results Presentation
1H FY25 Results Presentation 18 FEBRUARY 2025 1 HMC Capital | 1H FY25 Results Presentation
Slide 2: Agenda
Agenda Presenters David Di Pilla Will McMicking Angela Karl Chris Maher Group Managing Group CFO Managing Director, Executive Director, Director & CEO Head of Energy Digital Infrastructure Transition 2 HMC Capital | 1H FY25 Results Presentation
Slide 3: Acknowledgement of Country
Acknowledgement of Country HMC Capital acknowledges the Traditional Custodians of Country throughout Australia and celebrates their diverse culture and connections to land, sea and community. We pay our respect to their Elders past and present and extend that respect to all Aboriginal and Torres Str
Slide 4: Results Overview
HM Copia! Results Overview
Slide 5: Results Overview
Results Overview Record half-year financial result underpinned by private equity and digital infrastructure platforms Results Overview Active deployment in new Strong organic growth within existing growth platforms business verticals 1H FY25 Dec-24 Operating EPS (pre-tax) Assets Under Management1 ✓
Slide 6: Track Record and Economic Flywheel
Track Record and Economic Flywheel Each of our platforms has the potential to scale beyond $10bn in AUM over the next 3-5 years HMC Capital Economic Pre-tax EPS track record (cents) Flywheel Our transition HMC’s strong growth since to a high ROE alternative listing is a testament to the asset manage
Slide 7: Third party capital raising momentum is accelerating across the HMC Capital platform
Third party capital raising momentum is accelerating across the HMC Capital platform Real Estate Energy Transition Digital Infrastructure Private Credit Private Equity ✓ HMC Capital Unlisted Greenfield ✓ Initial $2bn+ fundraising on track for ✓ Engagement with multiple ✓ Commenced discussions with g
Slide 8: Fundraising & Distribution Capability
Fundraising & Distribution Capability Significant investment in depth and quality of fund-raising capability to support next phase of deployment Unlisted Institutional Unlisted Wholesale StratCap Super Funds / Insurance / SWF’s HNW / Family Offices / Financial Planners Nicholas Harris Adam Baxter Cl
Slide 9: Funds Management
HM Copia! Funds Management
Slide 10: Investment Strategy
Investment Strategy Targeted and long-term investment approach focused on high conviction megatrends Ageing Population Decarbonisation Digitalisation Deglobalisation Growing and ageing populations, evolving Investment opportunity of a generation Technological advancement driving Structural trend dri
Slide 11: Real Estate
Real Estate Scalable platform with proven capability to value-add in sectors with attractive long-term fundamentals Assets Under Management1 Platform Highlights $9.8bn HMC manages $9.8bn1 of real estate across multiple vehicles supported by a diversified investor base spanning listed & unlisted inve
Slide 12: Private Equity
Private Equity HMCCP Fund I was ranked as the top performing Australian equities fund in CY2024 by Morningstar Platform Highlights Assets Under Management1 $0.9bn HMC’s Private Equity platform was established in Aug-22 with the launch of HMC Capital Partners Fund I (HMCCP). HMCCP invests in ASX-list
Slide 13: Private Credit
Private Credit Leading domestic private credit investment manager with broad capability and institutional scale Platform Highlights Assets Under Management $1.8bn HMC manages $1.8bn of private credit investments across CRE and Corporate & Asset-based Finance (CAF). Key highlights from the period inc
Slide 14: Private Credit – Strong Focus on Credit Quality
Private Credit – Strong Focus on Credit Quality Growth in AUM occurring within strengthened risk & governance framework Australian private credit market size ▪✓ Following the acquisition of Payton Capital in Jul-24 and the establishment of the HMC Capital Private Credit platform, HMC has remained hi
Slide 15: Energy Transition
Energy Transition Platform is seeking to become a national champion supporting Australia’s decarbonisation targets Assets Under Management1 Platform Highlights $1bn HMC’s Energy Transition platform was established in Feb-24 and is led by a high calibre and deeply experienced investment team. Key hig
Slide 16: Energy Transition – Institutional Partnering Strategy
Energy Transition – Institutional Partnering Strategy High quality clean energy and storage platform with significant embedded near-term growth Platform Highlights HMC Energy Transition Platform Capacity (MW) The HMC Energy Transition platform has secured a top-10 operating position of wind/solar/BE
Slide 17: Digital Infrastructure
Digital Infrastructure Unique listed platform with large scale global expansion opportunity Assets Under Management1 Platform Highlights $5bn HMC manages ~$5bn1 of digital infrastructure assets across Australia and the United States. Key highlights from the period include: Existing capacity and futu
Slide 18: Digital Infrastructure – Capital Partnering Strategy
Digital Infrastructure – Capital Partnering Strategy Opportunity to accelerate growth across the DigiCo platform through the introduction of capital partners Target levered 12 – 15% 8 – 12% 15 – 30%+ project IRR DigiCo ownership 50 – 75% 50 – 75% ~50% Australian Colocation Assets US Operating Assets
Slide 19: Digital Infrastructure – DigiCo Update
Digital Infrastructure – DigiCo Update DigiCo trading update & growth outlook ▪ DGT reconfirms Prospectus Pro Forma Annualised FY25 Adjusted EBITDA guidance of $97 million ▪ Upon completion of CHI1, which was fully funded in the IPO proceeds, Pro-Forma Adjusted EBITDA is expected to increase from $9
Slide 20: Digital Infrastructure – DigiCo Update
Digital Infrastructure – DigiCo Update DigiCo SYD1 update ▪✓ Targeting Hosting Certification Framework (HCF) certification for SYD1 by mid-2025 – Constructive dialogue with Government agencies towards certification – Third party defence contractor appointed to assist in security and systems uplift ✓
Slide 21: Sustainability Achievements
Sustainability Achievements Key sustainability achievements driving long term value creation and positive community impact Environment Social ▪ Materiality Assessment to reflect an evolving Group composition with targets ▪ HMC Capital Foundation FY25 granting round currently open and accepting under
Slide 22: Financials
HM Copia! Financials
Slide 23: Earning Summary
Earning Summary Strong growth in underlying investment and funds management segments $ million 1H FY24 1H FY25 Management and Performance fees Revenue ▪ +209% increase in management fees to $126.5m driven by FUM growth in Management fees 40.9 126.5 private credit and digital infrastructure Performan
Slide 24: Balance Sheet
Balance Sheet Balance sheet continues to provide warehouse support for new funds management initiatives and capital market activities $ million Jun-24 Dec-24 Balance Sheet (HMC) Cash and cash equivalents 151.3 17.5 Equity accounted investments 575.5 1,040.7 ▪ Balance sheet warehousing capability evi
Slide 25: Capital Management
Capital Management $ million Jun-24 Dec-24 Capital Management Bank debt Maturity Sep-25 Sep-26 ▪ During the period, the debt facility limit increased from $355.0m to $675.0m, with an extended expiry of September 2026 Limit 355.0 675.0 Drawn - 120.0 ▪ HMC is in compliance with all financial covenants
Slide 26: Trading Update
HM Copia! Trading Update
Slide 27: Trading Update
Trading Update HMC is well placed to maintain a strong operating EPS growth trajectory supported by scalable growth platforms and significant investment capacity FY25 Trading Update Pre-tax Operating EPS Track Record (cents)1,2 Based on HMC year-to-date performance, annualised FY25 Operating EPS (pr
Slide 28: Appendix A: Strategy & Track Record
APPENDIX A: STRATEGY & TRACK RECORD 28
Slide 29: Platform Growth & Diversification
Platform Growth & Diversification HMC has expertise and investment products in growing and scalable sectors FY17 FY20 FY21 FY22 FY23 FY24 FY25 Establishment Platform Masters Real Estate Private Real Estate Private Energy Digital Energy Transaction Listed REITs Equity Unlisted Institutional Credit Tr
Slide 30: HMC Capital Leadership Team
HMC Capital Leadership Team David Di Pilla Matt Lancaster Victoria Hardie Sid Sharma Will McMicking Group Managing Director & Chair of Private Credit Head of Private Equity Head of Real Estate Group CFO CEO Angela Karl Robert Vanderzeil Damon Reid Sandra Francis Andrew Selim Head of Energy Transitio
Slide 31: Appendix B: Supporting Information
APPENDIX B: SUPPORTING INFORMATION 31
Slide 32: Funds Under Management
Funds Under Management Committed FUM ($bn)1 Revaluations & FUM ($bn) Jun-24 Additions Divestments / (Outflows) Dec-24 other2 Real Estate 9.7 0.2 (0.1) - 9.8 Private Equity 0.8 - - 0.1 0.9 Private Credit 1.6 0.9 (0.7) - 1.8 Digital Infrastructure 0.7 4.3 - - 5.0 Energy Transition - 1.0 - - 1.0 Group
Slide 33: Additional financial information
Additional financial information Earnings reconciliation Operating cashflow reconciliation $ million 1H FY24 1H FY25 $ million 1H FY25 Statutory profit after tax 35.2 274.5 Operating cashflow 19.1 Non-controlling interest (12.3) (107.6) Items classified as investing activities – dividends received 1
Slide 34: Additional financial information
Additional financial information Funds management revenue Investment income $ million 1H FY24 1H FY25 $ million 1H FY24 1H FY25 Base management fees 20.6 37.8 Share of associate profit 22.3 15.4 Transaction fees 5.6 72.8 Share of HMC-CP investment uplift 22.1 112.2 Investment management revenue 26.2
Slide 35: Further Information
Further Information Investors and Analysts Media Will McMicking Andrew Dodds John Frey HMC Capital HMC Capital Corporate communications Group Chief Financial Officer Corporate Finance and HMC Capital Investor Relations Manager +61 451 634 991 william.mcmicking@hmccapital.com.au +61 423 810 851 +61 4
Slide 36: Disclaimer
Disclaimer This presentation (Presentation) has been prepared by HMC Capital Limited (ACN 138 990 593) (“HMC Capital”) Summary information This Presentation contains summary information about the current activities of HMC Capital and its subsidiaries as at the date of this Presentation. The informat
Slide 37: HM Copia!
HM Copia!