Hmc Capital Limited · ASX:HMC
Hmc Capital — FY2024 Earnings Presentation
34 slides from Hmc Capital's earnings presentation, Aug 21, 2024
Slide 1: FY24 Results Presentation
Wj Lil iS w& 2 SS S FY24 Results Presentation 21 August 2024
Slide 2: Agenda and Presenters
David Di Pilla Group Managing Director & CEO 01 02 03 Result Funds FY25 Will McMicking Group CFO Overview Management Outlook 04 05 Strategy & Additional Misha Mohl Group Head of Track Record Information Strategy, Research & IR 1
Slide 3: Journey of Creation Artwork by Billy Reynolds
“Journey of Creation” Artwork by Billy Reynolds
Slide 4: Results Overview
HM Capital RESULTS OVERVIEW
Slide 5: Results Overview
Results Overview Successfully diversifying platform with establishment of new growth platforms and strategic hires RESULTS OVERVIEW KEY HIGHLIGHTS ▪ Energy Transition platform with specialist team onboarded Operating Assets Under and first seed investment secured EPS (pre-tax) Management New Growth
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 5 years HMC Capital Economic Flywheel Pre-tax EPS track record (cents) HMC’s strong growth since listing is a testament to the scalability of our business model and Our transition to
Slide 7: New Growth Platforms Established
New Growth Platforms Established Strategic investments in institutionally scalable platforms and high conviction sectors Private Credit Energy Transition Digital Infrastructure 6 Strategic Investments Commercial Real Estate (CRE) private debt asset Developer, owner and operator of large-scale Specia
Slide 8: Funds Management
HM Capital FUNDS MANAGEMENT
Slide 9: Investment Strategy
Investment Strategy Targeted and long-term investment approach focused on high conviction megatrends HMC Investments ▪ Growing and ageing populations, evolving consumer preferences and technological advancement in detection and treatment of illnesses impacting all developed economies Ageing Populati
Slide 10: Healthcare & Real Estate
Real Estate Scalable platform with proven capability to value-add in sectors with attractive long-term fundamentals Platform Highlights Investment Team & Capability HMC manages over $9.6bn1 of real estate across multiple vehicles supported by a diversified investor base spanning listed & unlisted in
Slide 11: Private Equity
Partners Private Equity HMCCP has delivered exceptional returns since inception. Strong foundation to accelerate fundraising and expand into Corporate Private Equity Platform Highlights Investment Team & Capability HMC’s Private Equity platform was established in Aug-22 with the launch of HMC Capita
Slide 12: Private Credit
Private Credit Building leading domestic private credit investment manager with broad capability and institutional scale Platform Highlights Investment Team & Capability In May-24, HMC announced the establishment of its Private Credit platform: ✓ Acquired Payton Capital, a specialist CRE ✓ private d
Slide 13: Energy Transition
Energy Transition HMC platform is seeking to become a national champion supporting Australia’s decarbonisation targets Platform Highlights Investment Team & Capability In Feb-24, HMC announced the establishment of its Energy Transition platform and is pleased to provide the following update: ✓ Onboa
Slide 14: FY25 Growth Objectives
FY25 Growth Objectives Well positioned to significantly grow AUM across all key strategies CURRENT AUM FY25 KEY OBJECTIVES MEDIUM TERM (Dry Powder) TARGET ✓ Grow private credit platform to $3bn of AUM across CRE (Payton) and new Corporate and Private Credit $1.6bn Asset-based private credit capabili
Slide 15: Product Development Pipeline
Product Development Pipeline We remain focused on building scalable investment products and attracting diverse sources of capital Digital Real Estate Private Equity Energy Transition Private Credit1 Infrastructure2 Listed Funds ✓ Unlisted / Wholesale HNW ✓ ✓ ✓ Unlisted Institutional ✓ ✓ Ticks denote
Slide 16: FY24 Sustainability Achievements
FY24 Sustainability Achievements Key sustainability achievements driving long term value creation and positive community impact ENVIRONMENTAL ▪ HMC Capital’s Energy Transition Platform made its first strategic investment in StorEnergy Pty Ltd, a specialist developer, owner and operator of utility-sc
Slide 17: Financials
FINANCIALS HM Capital 16
Slide 18: Earnings Summary
Earnings Summary Strong growth in underlying investment and funds management segments $ million FY23 FY24 % Management and Performance fees Revenues ▪ +14% increase in management fees to $79.7m driven by Real Estate Management fees 69.7 79.7 14% FUM growth including the new unlisted institutional Un
Slide 19: Balance Sheet
Balance Sheet Balance sheet continues to provide warehouse support for new funds management initiatives and capital market activities HMC Standalone Jun-23 Jun-24 Jun-24 Jun-24 $ million HMC HMC HMC-CP Consolidated Balance Sheet (HMC) Cash and cash equivalents 20.4 151.3 35.3 186.6 ▪ Jun-24 balance
Slide 20: Capital Management
Capital Management Net cash position with undrawn debt and net tangible assets of ~$1.4bn HMC Standalone $ million Jun-23 Jun-24 Capital management Bank debt ▪ Net cash position, with total cash and undrawn debt liquidity of $506m Maturity Jan-24 Sep-25 ▪ During FY24 the senior secured bank facility
Slide 21: Outlook
OUTLOOK HM Capital 20
Slide 22: Outlook
Outlook HMC is well placed to maintain a strong operating EPS growth trajectory supported by scalable growth platforms and significant investment capacity FY25 Outlook Pre-tax Operating EPS Track Record (cents)1 HMC is well placed to maintain a strong operating EPS growth trajectory supported by fiv
Slide 23: Appendix A: Strategy & Track Record
APPENDIX A: STRATEGY & TRACK RECORD HM Capital 22
Slide 24: HMC Capital Strategy
HMC Capital Strategy Diversified alternative asset manager focused on high conviction growth sectors ▪ Targeting >20% group ROE over the medium-term High ROE and ▪ >$20bn FUM target over the medium-term Scalable Business ▪ Strong balance sheet (no core debt) with ample liquidity ▪ Over 200 professio
Slide 25: Platform Growth & Diversification
Platform Growth & Diversification HMC has expertise and investment products in growing and scalable sectors FY17 FY20 FY21 FY22 FY23 FY24 Platform Masters Real Estate Private Real Estate Private Energy Digital Establishment Infrastructure Transaction Listed REITs Equity Unlisted Institutional Credit
Slide 26: HMC Capital Leadership Team
HMC Capital Leadership Team Corporate Divisional Heads Funds Management Nicholas Harris Marie Nguyen David Di Pilla Will McMicking Matt Lancaster Victoria Hardie Chairman, Institutional Capital LML Fund Manager Group CFO Chair of Private Credit Head of Private Equity Group Managing Director & CEO Fe
Slide 27: Appendix B: Supporting Information
APPENDIX B: SUPPORTING INFORMATION HM Capital 26
Slide 28: Established Funds | Real Estate
Established Funds | Real Estate Partners Established Nov-20 Sep-21 Aug-22 Mar-23 May-23 Daily needs retail High conviction Daily needs Hospitals & life Sector focus Healthcare property strategic stakes transition assets sciences Capital source ASX listed ASX listed Unlisted Unlisted Unlisted Investo
Slide 29: Established Funds | Private Credit
Established Funds | Private Credit Payton Select Investment Fund (PSIF) Payton Pooled Investment Fund (PPIF) Established Apr-18 Mar-21 Sector focus CRE debt secured by mortgages of real property CRE debt secured by mortgages of real property Capital source Unlisted Unlisted Investors Wholesale Insti
Slide 30: Funds Under Management
Funds Under Management Committed FUM ($bn)1 Divestments / Revaluations & FUM ($bn) FY23 Additions FY24 (Outflows) other2 Real Estate 9.3 0.6 (0.8) 0.5 9.6 Private Equity 0.4 0.1 - 0.3 0.8 Private Credit - 1.6 - - 1.6 Digital Infrastructure - 0.7 - - 0.7 Group 9.7 3.0 (0.8) 0.8 12.7 1. AUM includes u
Slide 31: Additional financial information
Additional financial information Earnings reconciliation Operating cashflow reconciliation $ million FY23 FY24 $ million FY24 Statutory profit after tax 83.3 114.4 Operating cashflow 25.5 Items classified as investing activities – dividends received 35.4 Non-controlling interest (26.2) (48.4) HMC-CP
Slide 32: Additional financial information
Additional financial information Funds management revenue Investment income $ million FY23 FY24 $ million FY23 FY24 Base management fees 35.6 41.4 Share of associate profit 31.1 34.2 Share of HMC-CP investment uplift 28.0 60.7 Acquisition / disposal fees 12.2 8.8 Other 0.3 - Investment management re
Slide 33: Further Information
Further Information Investors and analysts Media Misha Mohl Will McMicking John Frey Group Head of Strategy, Research & Group Chief Financial Officer Corporate communications Investor Relations +61 422 371 575 +61 451 634 991 +61 411 361 361 misha.mohl@hmccapital.com.au william.mcmicking@hmccapital.
Slide 34: 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