Praemium Ltd · ASX:PPS
Praemium — H1 2009 Earnings Presentation
19 slides from Praemium's earnings presentation, Mar 3, 2009
Slide 1: Half Year Results Presentation
For personal use only Half Year Results Presentation 3 March 2009 Due to a technical error, some pages were omitted from the copy of this presentation that was released to the market earlier today. About Praemium: Praemium supplies online Portfolio Administration Services (V-Wrap) and Separately Man
Slide 2: Præmium Update March 2009
For personal use only Præmium Update March 2009 Arthur Naoumidis Group CEO
Slide 3: Agenda
Agenda For personal use only Præmium in Australia United Kingdom Key financials
Slide 4: Præmium in Australia
Præmium in Australia For personal use only 3 key services: Virtual Wrap Separately Managed Accounts (SMA) Market Data & Trading System
Slide 5: Growth continues – even in this tough market
For personal use only Jun-07 Dec-07 Jun-08 Dec-08 V-Wrap Committed 22,860 32,160 37,040 40,651 portfolios Funds under $24.1 billion $28.5 billion $29.2 billion $26.5 billion administration Number of 346 423 462 498 wholesale clients Growth continues – even in this tough market
Slide 6: V-Wrap Highlights
V-Wrap Highlights For personal use only 7.8% increase in clients (to 498) 9.7% increase in portfolios SMSFs grow 24% to ~16,500 System enhancements Multi-CCY, Multi Exchange, Fixed Interest, FX, Advanced Corporate Actions Processing E*Trade contract (Post Balance Date) 5
Slide 7: V-Wrap Outlook
V-Wrap Outlook For personal use only Accountants are driver for growth in 2009 SMSFs are a particular focus Planners and brokers are struggling They need to reduce costs V-Wrap is a good way Look at accelerating organic growth Help our clients grow their client bases 6
Slide 8: SMA Highlights
SMA Highlights For personal use only Blackrock Exclusivity Expired but continues as a key SMA operator Actively pursuing strategy to ensure a balance of white label and institutional partners with captive distribution for SMA in addition to BlackRock Powerwrap signs Heads 26% increase in services (t
Slide 9: SMA Outlook
SMA Outlook For personal use only New SMA operators Targeting 2 more large scale operators Discussions are ongoing Strategy SMA’s Concept developed in the UK and brought back to Australia Significant interest in Australia Accountant SMA’s Fits in with V-Wrap’s strengths The “Holy Grail” – target SMS
Slide 10: p-Desktop Australia Highlights
p-Desktop Australia Highlights For personal use only 166 firms agree to deploy p-Desktop Adviser focus Portfolio Reviewer, Portfolio Planner, Enhanced Trading Back office integration Development and testing of extensive GBST interface 9
Slide 11: p-Desktop Australia Outlook
p-Desktop Australia Outlook For personal use only Target retail brokers Brokers having significant operational cost issues P-Desktop a cost effective solution for market data and trading services Advanced adviser tools to address SOA and compliance On-line broker deployment Several opportunities Sil
Slide 12: United Kingdom Highlights
United Kingdom For personal use only Highlights First commercial prospectus authorised OBSR SMARTfund First 4 SMARTfund clients signed Foster Denovo, Informed Financial Planning, Radcliffe & Newlands and Fat Prophets First discretionary client Price Bailey Praemium UK is “Live” 11
Slide 13: United Kingdom Outlook
United Kingdom For personal use only Outlook Sustained growth in SMARTfund during 2009 Lead times for asset loading Usually includes entry fee Parallel focus on Discretionary IFA market Quicker loading of assets faster revenue growth Captive market - main competitor has withdrawn from market 2009 is
Slide 14: Key Financial Details
Key Financial Details For personal use only EBITDA for half year to 31 Dec 2008 = ($6.6 million) All UK development costs are expensed Praemium has no debt Operational revenue for: Half Year 31 Dec 2008 = $3.4 million Half Year 31 Dec 2007 = $2.9 million Half Year 31 Dec 2006 = $1.8 million Cash at
Slide 15: Cash Strategies
Cash Strategies For personal use only Forward selling commercial deals in Australia Flagged at AGM E*Trade is the first example o Sizeable upfront payment o Expected to generate > 60% additional annual cash flow o Most of initial cash to be delivered over the next 6 months Other deals being negotiat
Slide 16: Key Financial Details - cont
Key Financial Details - cont Quarterly Comparison For personal use only V-Wrap Nbr Quarter Revenue Receipts Portfolios FUA SMA FUM Sep-07 $1,320 K $1,380 K 25,300 $26.3 bn $233 mn Dec-07 $1,651 K $1,598 K 32,160 $28.5 bn $323 mn Mar-08 $1,729 K $1,889 K 34,417 $28.1 bn $338 mn Jun-08 $1,688 K $1,611
Slide 17: Operating Performance to Dec 2008
Key Financial Details Operating Performance to Dec 2008 For personal use only Half Year to Operating Direct Operating Corporate EBITDA December Revenue Costs EBITDA Costs net of 2008 Corporate Costs V-Wrap 3,125 1,924 1,201 1,341 (140) SMA 135 579 (444) 403 (847) Desktop 93 385 (292) 268 (560) UK 55
Slide 18: Staffing & Resources
Key Financial Details Staffing & Resources For personal use only Location Dec-08 Jun-08 Dec-07 Australia: Operations / Client Service 12 14 8 Implementation Services 4 0 0 Sales & Marketing 7 7 8 Executives 2 3 3 R&D /IT 27 22 25 Finance, Compliance & Legal 6 6 5 Total Australia 58 52 49 UK Operatio
Slide 19: Presentation by Arthur Naoumidis
For personal use only Presentation by: Mr Arthur Naoumidis Praemium Ltd Level 1 406 Collins Street Melbourne Victoria 3000 Australia 18 www.praemium.com.au