Praemium Ltd · ASX:PPS
Praemium — FY2021 Earnings Presentation
21 slides from Praemium's earnings presentation, Aug 16, 2021
Slide 1: Praemium Limited 2021 Annual results
Praemium Limited 2021 Annual results Investor presentation 16 August 2021 ACN 098 405 826 The platform of everything
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 (16 August 2021) and is supplementary to the Group’s financial results released to the ASX on 16 August 2021 and previous ASX
Slide 3: Who we are
Who we are Praemium is a leading provider of managed accounts technology, portfolio administration and CRM/financial advice software for the wealth management industry Our story Software company ASX listed in 2006 to Offices in Over 1,000 Covering over founded in 2001 launch the UK Australia, the UK
Slide 4: Business highlights, Financial results, Looking forward, Q&A
Business highlights Financial results Looking forward Q&A
Slide 5: Executive summary FY2021
Executive summary FY2021 ▪ Takeover of Powerwrap Limited, our most significant acquisition A year of ▪ Divestment of International business announced July 2021 consolidation ▪ Conclusion of revenue headwinds while business managed through COVID ▪ Extending our competitive edge with ongoing R&D inves
Slide 6: Record inflows and FUA
Record inflows and FUA Record net inflows of $3.8 billion* Record global FUA of $41.7 billion Australian platform inflows of $2.6 billion Platform FUA of $23.4 billion, up 163% International platform inflows of $1.2 billion VMAAS FUA of $18.3 billion, up 61% Platform Net Inflows* FUA 4,000 ($m) ($m)
Slide 7: The platform of everything
The platform of everything Leader in Managed Addition of non-custodial Accounts Powerwrap expert VMA, our unique Next-generation Managed proprietary technology Accounts platform Broad product suite for the complex needs of The most accurate portfolio Leading edge Adviser HNW clients and tax reportin
Slide 8: Industry recognition
Industry recognition Platform benchmarks ▪ 3rd overall in Australia’s Investment Trends 2020 Platform Competitive Analysis and Benchmarking Report Winner in 9 categories, including Managed Accounts (Product Offering), Business Reporting, Integration and Non-Custodial Assets ▪ Praemium rated 3rd best
Slide 9: Financial results
Business highlights Financial results Looking forward Q&A
Slide 10: FY2021 financial results
FY2021 financial results Group Financial Results FY20 FY21(1) Combining Praemium with Powerwrap ($m) ($m) Revenue 51.2 65.6 ▪ Net revenue growth of 30% to $65.5 million ▪ Gross margin up 15% to $45.8 million Product commissions (0.6) (0.1) ▪ Impact to gross margin% from inclusion of Powerwrap Revenu
Slide 11: Half-on-half results
Half-on-half results Group Financial Results H1, H2, FY21(1) Growth in the 2nd half ($m) FY21 FY21 Revenue 31.7 33.9 65.6 ▪ Revenue growth of 11% across all products ▪ Full half of PWL results, with stable trading volumes Product commissions (0.1) 0.0 (0.1) ▪ Consistent gross margin of 70% Revenue (
Slide 12: Australian segment result
Australian segment result H1 H2 Change Australia results $m FY21 FY21 FY21 FY20 % Revenue growth of 37% Platform 16.9 19.6 36.5 21.0 73% Platform revenue $36.5 million, up 73% Portfolio services 8.0 8.1 16.1 15.2 6% ▪ Powerwrap revenue $16.3 million Portfolio services (PWL) 0.4 - 0.4 2.5 (84%) ▪ Pra
Slide 13: International segment result
International segment result H1 H2 Change International results $m FY21 FY21 FY21 FY20 % Revenue growth of 6% (net) Platform 3.5 4.6 8.1 6.2 30% ▪ Platform revenue up 30%, FUA up 55% Platform (funds) 0.8 0.7 1.5 2.9 (47%) ▪ Fund revenue down 47% from Smartfund Planning software 1.1 1.1 2.2 2.3 (1%)
Slide 14: Cashflow
Cashflow Cashflow ($m) FY20 FY21 Strong cash generation Operating cashflow 14.4 12.6 ▪ Operating cashflow of $12.6 million consistent with R&D incentive 0.8 0.8 EBITDA, other than working capital Tax paid (2.0) (4.2) ▪ Net operating cashflow of $5.9 million, net of One-off costs (1.1) (3.3) acquisit
Slide 15: Balance sheet
Balance sheet Balance Sheet ($m) Jun’20 Jun’21 Stable balance sheet Cash 15.9 26.7 Receivables 6.5 9.0 ▪ Strong cash reserves Intangibles 12.0 63.6 ▪ Group regulatory cash requirement of $12 million Other assets 14.8 12.5 Assets 49.2 111.8 ▪ Intangibles increase includes $47 million in goodwill Tax
Slide 16: Looking forward
Business highlights Financial results Looking forward Q&A
Slide 17: Gaining share of Australian platform market
Gaining share of Australian platform market Tailwinds for independent wealth management platforms $915 ▪ Industry change from regulatory oversight, end of grandfathered commissions billion1 ▪ End of conflicted advice, a shift to independence as institutions exit wealth ▪ Advisers seeking independent
Slide 18: Strong momentum in FY2022
Strong momentum in FY2022 Australia accelerating underlying growth July 2021 sets a new monthly record1 VMA Portfolios 55,000 VMA VMAAS $2.6 billion $36 billion 149% increase in 27,500 115% increase net inflows in total FUA - FY19 FY20 FY21 Aus Platform Net Inflows* Aus FUA ($m) 40,000 ($m) 3,000 Au
Slide 19: Australia, the road ahead
Australia, the road ahead Merged Group now over $36 billion FUA Powerwrap addition to ▪ A strong position serving the complex needs of advisers deliver scale ▪ Ability to serve clients across retail and HNWI market segments ▪ Leverage existing sales capacity to sell a combined offering ▪ Key drivers
Slide 20: Proposed divestment of International
Proposed divestment of International Strategic Decision Sale review to divest process Strategic review highlighted the External strategic review of Deloitte Corporate Finance technological leadership of the International business appointed to manage a international platform and recommended divestmen
Slide 21: Contact us
contact us Level 19 367 Collins Street Melbourne, VIC 3000 T: 1800 571 881 E: support@praemium.com.au W: praemium.com.au