Praemium Ltd · ASX:PPS
Praemium — H1 2020 Earnings Presentation
20 slides from Praemium's earnings presentation, Feb 10, 2020
Slide 1: 2020 Half-year results Investor presentation
2020 Half-year results Investor presentation 10 February 2020 rsonal use only Praemium Limited ACN 098 405 826
Slide 2: Disclaimer
Disclaimer 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 (10 February 2020) and is supplementary to the Group’s financial results released to the ASX on 10 February 2020 and previous
Slide 3: Global reach, global scale
Global reach, global scale Praemium is a leading provider of scalable managed accounts technology, portfolio administration and CRM & financial advice software rsonal use only for the wealth management industry. Our mission is to help improve the productivity and effectiveness of wealth managers. Ou
Slide 4: Highlights
Highlights rsonal use only Financial results Business update Q&A
Slide 5: Key financial highlights
Key financial highlights rsonal use only 12% increase in net revenue $24.2 million in revenue 18% increase in gross margin 122% increase in NPAT 37% increase in EBITDA* Underlying EBITDA*, $m 12.0 29% 6.3 120% 8.0 H1 4.6 H2 3.5 4.0 2.2 7.0 EBITDA increase in EPS 1.4 2.8 4.2 5.1 margin* 1.2 2.0 0.0 F
Slide 6: Key performance indicators
Key performance indicators Growth across all products Gross Inflows, $b 2.0 Record platform gross inflows of $1.9 billion rsonal use only Aust Superannuation and pension Int'l UK pension schemes up 79% Aus SuperSMA up 33% 1.0 Smartim model portfolio FUA up 77% VMA portfolios up 6% WealthCraft se
Slide 7: Award-winning 2019
Award-winning 2019 Winner Investment Adviser Awards “Praemium has a unique proposition and has introduced a number of rsonal use only Global Investment Platform of the Year October 2019 developments over the year to offer API links, trade matching that goes above and beyond on the crucial regulatory
Slide 8: Innovation snapshot this half
Innovation snapshot this half Platform expansion Product enhancements User experience rsonal use only Platform asset universe expanded Expanded reporting and governance Launched Adviser Portal to UK to over 3,000 securities features to support MDA operators and international clients An industry-firs
Slide 9: Financial results
Highlights rsonal use only Financial results Business update Q&A
Slide 10: H1 FY2020 financial results
H1 FY2020 financial results H1, FY19 H1, FY19 H1, FY19 H1, FY20 Group Financial Results ($m) (Reported) (AASB16) (Restated) ($m) Revenue 22.9 22.9 24.2 Product commissions(1) (1.6) (1.6) (0.4) rsonal use only Revenue (net) 21.3 21.3 23.8 Cost of operations (4.2) (4.2) (3.5) Key financial highlights*
Slide 11: Delivering scale
Delivering scale Gross Margin to Revenue (net), % 90% 85% 83% Continued margin improvement rsonal use only Gross margins of 85%, up from 83% in FY19 70% Strong incremental revenue margins Future process automation to maintain scalability, especially for new, lower margin products such as VMAAS
Slide 12: Sustained revenue & earnings growth
Sustained revenue & earnings growth $m Aus Intl H1 FY20 YoY % Aus % Intl % Continued revenue growth Platform 8.7 4.8 13.5 4% 22% (18%) Australia platform FUA up 21%, revenue up 22% rsonal use only Portfolio services 8.5 - 8.5 6% 6% - International platform FUA up 22%, revenue up 27%, Planning so
Slide 13: Cashflow and balance sheet
Cashflow and balance sheet Cashflow ($m) H1 FY19 H1 FY20 Balance Sheet ($m) Jun-19 Dec-19 Operating cashflow 4.1 5.9 Cash 13.7 14.7 R&D incentive 0.7 0.7 Receivables 7.6 7.1 Intangibles 9.9 10.9 rsonal use only Tax paid (1.9) (2.3) Other assets 4.2 12.2 One-off costs (0.9) (0.5) Assets 35.4 44.9 Net
Slide 14: Business update
Highlights rsonal use only Financial results Business update Q&A
Slide 15: Australia – drivers of Platform growth
Australia – drivers of Platform growth Industry trends favouring Upgraded to 5th generation Praemium – a compelling offer emerging platforms platform rsonal use only Dominance of institutional incumbents Sustainable platform pricing diminishing post Banking Royal below industry peers: Commission. SM
Slide 16: VMAAS – a complete administration service
VMAAS – a complete administration service VMA admin service (VMAAS) Providing full administration, including: 45,000 12,000 rsonal use only Mail processing 40,000 Account reconciliation 10,000 Corporate action elections and processing 35,000 Billing and fee generation Quarterly reporting
Slide 17: International – drivers of Platform growth
International – drivers of Platform growth UK market structural challenges Increasing awareness of Praemium Major upgrade in Sep 2019 350 “Praemium has taken giant steps Gross inflows*, £m rsonal use only Over 70% of platform FUA sits on towards more mainstream platforms that don’t have their own ac
Slide 18: Summary
Summary Key strategic initiatives implemented in 2019 Will underpin growth in 2020 Completed major upgrade: A bigger business development resource for 2020: rsonal use only Australia live in February The expanded Australia sales team is in place International live in September Recruiting for
Slide 19: Q&A
Highlights rsonal use only Financial results Business update Q&A
Slide 20: Contact us
rsonal use only contact us Level 19 367 Collins Street Melbourne, VIC 3000 T: 1800 571 881 E: support@praemium.com.au W: praemium.com.au