Praemium Ltd · ASX:PPS

Praemium — H1 FY2016 Earnings Presentation

16 slides from Praemium's earnings presentation, Feb 9, 2016

  1. Slide 1: FY2016 Half-year results

    For personal use only FY2016 Half-year results Confirming our potential 9 February 2016

  2. Slide 2: Disclaimer

    Disclaimer For personal use only 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 (9 February 2016) and is supplementary to the Group’s financial results released to the ASX on 9 Februar

  3. Slide 3: Global reach, global scale

    Global reach, global scale For personal use only Software company founded in Melbourne in 2001  ASX listing in 2006 to launch our UK business in London  Expanded to 8 offices globally with over 180 staff  And over 700 clients covering $80 billion in assets Our aim is to help transform the financi

  4. Slide 4: What we do

    What we do For personal use only Our global strategy is to provide a fully integrated solution to the financial advice process Our services Our clients  Managed accounts platform (SMA)  Financial advisers  Portfolio administration and reporting  Stockbrokers software (V-Wrap)  Financial institu

  5. Slide 5: First half FY2016 highlights

    First half FY2016 highlights For personal use only Revenue 35% EBITDA 93% NPAT 259% $14.7 million $1.8 million $1.3 million Products launched FUA 41% Inflows 33% SMSF compliance & accounting Record fund levels of $4.5b Record annual inflows of $1.7b Investor portal SMA FUA 4,500 ($m) Aust Int 3,000

  6. Slide 6: Strong growth in earnings base

    Strong growth in earnings base For personal use only FUA, Platform and Funds Gross Inflows 1,000 4,600 ($m) ($m) Aust Aust 2,300 Int 500 Int - - H1 FY12 H2 FY12 H1 FY13 H2 FY13 H1 F14 H2 F14 H1 F15 H2 F15 H1 F16 H1 FY12 H2 FY12 H1 FY13 H2 FY13 H1 F14 H2 F14 H1 F15 H2 F15 H1 F16 FUA, $m Dec 2014 Dec

  7. Slide 7: H1 FY16: Financial results

    H1 FY16: Financial results For personal use only Group Financial H1,FY15 H1,FY16 Strong profit growth Results ($m) ($m) Revenue 10.9 14.7 35% growth Cost of operations (2.6) (3.0) Gross margin 8.3 11.7 Expanding gross margins GM % 76% 80% Expenses: Information Technology (2.4) (3.7) 54% increase in

  8. Slide 8: H1 FY16: Balance sheet

    H1 FY16: Balance sheet Solid balance sheet to fund growth For personal use only Balance sheet Jun’15 Dec ’15 ($m) ($m)  $11.2 million in cash  No debt Cash 11.5 11.2  UK R&D refund will continue to be received as cash Other assets 11.0 12.7  From FY16, Australia R&D will be recorded as reduced A

  9. Slide 9: H1 FY16: Revenue by segment

    H1 FY16: Revenue by segment 35% revenue growth For personal use only By product… By region… Product Revenue Segment Revenue 15.0 ($ million) 15.0 ($ million) 10.0 Portfolio Services 10.0 AUS SMA UK Planning software Asia 5.0 5.0 - - H1 FY13 H2 FY13 H1 FY14 H2 FY14 H1 FY15 H2 FY15 H1 FY16 H1 FY13 H2

  10. Slide 10: H1 FY16: EBITDA by segment

    H1 FY16: EBITDA by segment Confirming the operating leverage For personal use only 3.0 Group EBITDA by Half Australia delivering strong earnings ($m) H1 H2  EBITDA improvement 21%  EBITDA margins of 47% 0.0 Significant reduction in UK losses (3.0)  EBITDA improvement 42% (50% in GBP) (6.0) Asia s

  11. Slide 11: 1H FY16: Australia result

    1H FY16: Australia result Australia – continuing strength For personal use only Australia EBITDA up 21% Australia, Revenue and EBITDA Rev ($m) EBITDA Platform retail super FUA increase to 10.0 4.5 $173m from $39m Revenue Strong pipeline of business: 7.5 3.0 • Over 20 new firms joined our SMA in the

  12. Slide 12: 1H FY16: UK result

    1H FY16: UK result UK – gaining momentum For personal use only UK Revenue 1.8 (£m) Strong revenue momentum with sales up 119% over the pcp in local currency Expenses growth by comparison was 18% resulting 1.2 in a 50% improvement in the EBITDA loss Plum software post-merger activities progressing to

  13. Slide 13: 1H FY16: UK Investment management

    1H FY16: UK Investment management For personal use only Smart Investment Management - growing strongly Smartim FUA 500 ($m) Established November 2013 Assets under management up 42% on Dec 2014 400 Outstanding investment performance over 2015 relative to the MSCI benchmark: 300  Twice the return at.

  14. Slide 14: 1H FY16: UK Trend

    1H FY16: UK Trend For personal use only UK – approaching the inflexion point £m FUM £m 3.5 UK Revenue and Expense trend 900 FUM (£m) Revenue 800 3.0 Expenses 6% CAGR 700 2.5 600 50% CAGR 2.0 500 1.5 400 300 1.0 200 0.5 100 - - H1 FY12 H2 FY12 H1 FY13 H2 FY13 H1 FY14 H2 FY14 H1 FY15 H2 FY15 H1 FY16 R

  15. Slide 15: Looking forward

    Looking forward For personal use only Continue to grow funds under administration  Accelerate on-boarding of SMA clients secured over the past 18 months  Secure new clients looking to transform their business with a more efficient platform experience  Secure new model portfolio business for our i

  16. Slide 16: A leader in a growing industry

    A leader in a growing industry For personal use only Large and growing markets  Australia is the 3rd largest superannuation market and is forecast to increase 5-fold to $10 trillion by 2030*  The UK is the 2nd largest retirement market and expected to expand strongly with pension reform Revenue ($

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