Slide 1: 2020 Annual results
2020 Annual results Praemium Limited ACN 098 405 826 Investor presentation 14 August 2020
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 (14 August 2020) and is supplementary to the Group’s financial results released to the ASX on 14 August 2020 and previous ASX
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 for the wealth management industry. Our mission is to help improve the productivity and effectiveness of wealth managers. Our history Softwa
Slide 4: Business highlights, Financial results, Looking forward
Business highlights Financial results Looking forward Q&A
Slide 5: Resilience in the face of challenges
Resilience in the face of challenges Despite headwinds, Praemium has executed its strategy and delivered a strong financial result 8% increase in net revenue $51.2 million in revenue 12% increase in gross margin 91% increase in NPAT 25% increase in EBITDA* 15.0 Underlying EBITDA*, $m 28% 10.0 7.2 89
Slide 6: Execution of two-step growth strategy
Execution of two-step growth strategy Step 1: Upgraded from niche SMA provider to full-service platform – better tech, bigger market Upgrade to 5th generation % of total FUA Praemium added IMA to its SMA platform capability, enabling the full breadth of 100 managed accounts via a seamless 90 digital
Slide 7: Execution of growth strategy
Execution of growth strategy Step 2: Invested in sales and marketing – building our presence Increased sales and marketing investment by 22% Increased BDMs: Aus by 100%, International by 70% Engaged with ratings agencies in Australia and the UK – Investment Trends, Defaqto, the lang cat 7
Slide 8: Growth strategy showing results
Growth strategy showing results Seeing results from 2019 platform upgrade and market investment Australian platform inflows1, net $m Intl platform inflows, $m 1,100 1,200 Gross inflows AUD Net inflows AUD 550 600 - - FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 68% increase in net inflows1 51%
Slide 9: Maintaining growth
Maintaining growth Global FUA of $20.3 billion FUA, $m 21,000 Total FUA of $20.3 billion, up 26% Aust Platform FUA of $8.9 billion, down 6% Int'l VMAAS FUA of $11.4 billion, up 73% 10,500 Managed Account Platform FUA Australian platform of $5.7 billion, down 18% International platform of $3.
Slide 10: UK platform focus
UK platform focus UK revenue ($m) FY18 FY19 FY20 International platform FUA, £m Platform 4.7 4.8 6.2 +28% 2,000 Funds* 2.9 3.5 2.0 -42% Other 2.7 2.6 2.6 - Total net revenue 10.3 10.9 10.8 1,000 Expenses 12.0 12.5 12.7 EBITDA (1.7) (1.6) (1.9) 0 Platform progressing well F18 F19 F20 UK Offshore Pl
Slide 11: VMA – our unique competitive advantage
VMA – our unique competitive advantage Leaders in portfolio administration and reporting Delivering strong growth in FY2020 Praemium now offers the full spectrum of non-custodial services Continues to diversify our non-asset-based revenue with: VMA portfolios up 10%, VMAAS portfolios up 15% Praemi
Slide 12: Staying on the leading edge
Staying on the leading edge Platform Product User expansion enhancements experience Added over 50 ETFs on the New Expanded platform security with a Launched Adviser Portal to UK York and London stock exchanges range of new encryption measures to and international clients further protect data Added A
Slide 13: Praemium is emerging as a global leader
Praemium is emerging as a global leader UK: Debuted 2nd in the lang cat Platform Market Scorecard, first among the independent open- Australia: Debuted 4th in Investment Trends platform survey. architecture platform providers. Total overall score 90.0% Parmenion 4.64 Praemium 4.47 80.0% Novia 4.30 7
Slide 14: Australia platform: Debuted 4th in Investment Trends
Australia platform: Debuted 4th in Investment Trends Across the 18 platforms rated, Praemium came 4th overall and 1st in seven out of 44 sub-categories Online Business Management Integration Product Offering 1st 1st 1st Online Permissions APIs Managed Accounts 1st 1st Reporting White Labelling Plann
Slide 15: UK platform: Debuted 2nd in Platform Market Scorecard
UK platform: Debuted 2nd in Platform Market Scorecard Across the 19 platforms rated, Praemium came 2nd overall and rated highly in several categories Support Overarching Factors Proposition Ratings “Praemium’s position outside the mainstream will soon 1st 1st 2nd be a thing of the past. The SMA/IMA
Slide 16: Award-winning FY2020
Award-winning FY2020 “Praemium has a unique Winner proposition and has Investment Adviser Awards introduced a number of Global Investment Platform of the Year developments over the year October 2019 to offer API links, trade matching that goes above and beyond on the crucial Winner regulatory requir
Slide 17: Business highlights, Financial results, Looking forward
Business highlights Financial results Looking forward Q&A
Slide 18: FY2020 financial results
FY2020 financial results FY19 FY19 FY19 FY20 Group Financial Results ($m) (Reported) (AASB (Restated) ($m) Key financial highlights* 15&16)* Revenue 45.1 3.6 48.7 51.2 Gross Margin to Revenue (net), % Product commissions(1) (2.0) (2.0) (0.6) 80% 79% Revenue (net) 43.1 3.6 46.7 50.6 Cost of operation
Slide 19: Half-on-half results
Half-on-half results H1, FY20 H2, FY20 FY20 Group Financial Results Maintained growth during volatile 2nd half ($m) ($m) ($m) Revenue 26.5 24.7 51.2 Revenue impacted from market declines post Product commissions (0.4) (0.2) (0.6) COVID-19 Revenue (net) 26.1 24.5 50.6 Delivered gross margins of 8
Slide 20: Revenue & earnings growth despite challenges
Revenue & earnings growth despite challenges $m Aus Intl FY20 FY20 % Aus % Intl % Australia: 47% EBITDA margin Platform 21.0 9.1 30.1 2% 11% (15%) Strong growth in core products, with revenue up 11% Portfolio services 17.7 - 17.7 11% 11% - Platform revenue up 11% from underlying inflow Planning
Slide 21: Cashflow and balance sheet
Cashflow and balance sheet Cashflow ($m) FY19 FY20 Balance Sheet ($m) FY19 FY20 Operating cashflow 10.0 14.4 Cash 13.7 15.9 R&D incentive 0.8 0.8 Receivables 7.6 6.5 Tax paid (3.0) (2.0) Intangibles 9.9 12.0 Other assets 4.2 14.8 One-off costs (1.6) (1.1) Assets 35.4 49.2 Net operating cashflow 6.2
Slide 22: Business highlights, Financial results, Looking forward
Business highlights Financial results Looking forward Q&A
Slide 23: Summary
Summary Key strategic achievements FY2020 Forward plans Completed the major upgrade program: A continued focus on growth: After launching the fully integrated managed accounts platform The expanded Australia sales team will be supported by ongoing in Australia in early 2019, we then rolled it ou
Slide 24: Takeover offer for Powerwrap
Takeover offer for Powerwrap Powerwrap Offer consideration Board Recommendation Specialist platform with 7.5¢ cash and one Praemium share Powerwrap’s Board has FUA of $8.5 billion1 for every two Powerwrap shares3 unanimously recommended that Provides sophisticated HNW shareholders accept in favour o
Slide 25: Powerwrap and Praemium – stronger together
Powerwrap and Praemium – stronger together Praemium’s reporting and administration strength combined with Powerwrap’s execution capabilities and broad range of alternative investment options will create a highly attractive specialist platform solution. Powerwrap today Merged Group differentiators •B
Slide 26: Business highlights, Financial results, Looking forward
Business highlights Financial results Looking forward Q&A
Slide 27: 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