Praemium Ltd · ASX:PPS
Praemium — H1 FY2019 Earnings Presentation
17 slides from Praemium's earnings presentation, Feb 11, 2019
Slide 1: 2019 Half-year results: A new platform for growth
For personal use only 2019 Half-year results A new platform for growth Praemium Limited ACN 098 405 826 11 February 2019
Slide 2: Disclaimer
Disclaimer The material contained in this document is a presentation of general information about the Praemium Group’s activities current as For personal use only at the date of this presentation (11 February 2019) and is supplementary to the Group’s financial results released to the ASX on 11 Febru
Slide 3: A global technology leader
For personal use only A global technology leader We offer sophisticated and scalable technology to over 1,000 clients covering $100+ billion in assets Our mission is to assist wealth advisers to deliver great investor experiences and outcomes Global presence across 9 offices Our global product suite
Slide 4: With a great new look and feel
With a great new look and feel For Investors For Advisers New branding For personal use only Best in class Investor Portal Brand new Adviser Portal With a new look • Adviser branded • Investor centric dashboard • Bold new colour scheme • Intuitive and responsive • Ability to easily navigate platform
Slide 5: The next generation platform, now launched
The next generation platform, now launched Praemium’s Unified Managed Account (UMA), a unique solution UMA MIS For personal use only Unified experience • Integrated technology in a single structure across model portfolios, • Elegant platform design via a modern digital portal bespoke portfolios and
Slide 6: The leading managed accounts provider
The leading managed accounts provider Platform Accounts Gross Inflows For personal use only (#) ($m) 20,000 1,500 Aus Int Aus Key underlying growth in accounts and inflows.. Int 1,000 10,000 » Over 27,000 global platform clients, a 26% increase » Gross inflows in H1 FY2019 of $1.4 billion 500 » Annu
Slide 7: H1 FY2019 financial results
H1 FY2019 financial results Group Financial Results H1, FY18 H1, FY19 Key financial highlights For personal use only ($m) ($m) Revenue growth 7% Revenue 21.5 22.9 Gross margin up 10% Product commissions (2.2) (1.6) Revenue (net) 19.3 21.3 Underlying EBITDA up 19%, to 22% EBITDA to revenue Cost of op
Slide 8: Continued revenue growth
Continued revenue growth Product Revenue 25.0 ($ million) H1 H1 $m FY18 FY19 Change For personal use only Platform 11.8 12.9 9% Portfolio services 7.9 8.1 2% Planning software 1.0 1.1 15% Other 0.8 0.8 8% 12.5 Revenue 21.5 22.9 7% Highlights 50% increase in WealthCraft clients, from 24 to 36 - H1
Slide 9: Sustained earnings growth
Sustained earnings growth EBITDA by Half Segment EBITDA 10.0 ($m) ($m) For personal use only 7.0 H1 12% increase H2 4.6 H1 FY17 H1 FY18 5.0 2.5 H1 FY19 3.5 2.2 5.1 4% reduction 11% reduction 1.4 4.2 2.8 2.0 1.2 0.0 (2.0) FY15 FY16 FY17 FY18 FY19 Aus Intl Corporate H1 H1 Change Change H1 $m FY18 FY19
Slide 10: Tailwinds from disruption of the Australian platform market
Tailwinds from disruption of the Australian platform market For personal use only • 10% CAGR over last 5 years2 Platform Total market • Continued growth through mandated super forecast to grow market • 84% of FUA held with top 7 financial institutions to $1.5 trillion $860 billion1 by 20262 • Market
Slide 11: International – strong platform growth
International – strong platform growth Int Gross inflows R&E £m UK Revenue to Expenses FUA £m For personal use only (£ million) (£m) 250 5.0 1,500 FUA 9% decline 200 Revenue 11% decline Expenses Platform 1,000 150 Smartfunds 2.5 Record 100 platform 500 inflows of £184m 50 - 0 - H1 H2 H1 H2 H1 H2 H1
Slide 12: International – WealthCraft a compelling offshore solution
International – WealthCraft a compelling offshore solution For personal use only WealthCraft Licence Revenue ($000) 500 250 - H1 FY17 H2 FY17 H1 FY18 H2 FY18 H1 FY19 Technology delivered in 2018 Due for release in 2019 • Digital fact find • Gap analysis • Online risk profiling • Lifecycle profiling
Slide 13: Summary
Summary For personal use only “Welcome to the Upgrade” campaign launched in February 2019 Australia • A new Adviser dashboard • Expanded functionality from SMA to UMA • Investment universe of 1,300 model portfolios and single investment assets Clients who use both custodial (SMA / IMA) as well as no
Slide 14: Appendix: Financials
For personal use only APPENDIX Financials
Slide 15: APPENDIX: Cashflow
APPENDIX: Cashflow For personal use only Cashflow ($ million) H1 FY18 H1 FY19 Operating cashflow 4.1 4.1 R&D incentive - 0.7 Operating cashflows Tax paid (1.6) (1.9) • Operating cashflow in line with EBITDA growth (including UK R&D) One-off costs (0.6) (0.9) • Australian company tax with FY19 instal
Slide 16: APPENDIX: Other financial information
APPENDIX: Other financial information Balance Sheet ($ million) Jun’18 Dec’19 For personal use only Cash 12.1 11.3 Solid balance sheet to fund growth Receivables 7.3 7.6 • $11.3 million in cash reserves from strong free cash flow generation Intangibles 6.5 8.5 • Increase in intangibles from platform
Slide 17: Contact us
(\ praemium contact us Level 19, 367 Collins Street, Melbourne, VIC 3000 Ph: 1800 571 881 E: support@praemium.com.au (¥) twitter.com/praemium (in) linkedin.com/praemium praemium.com.au