Slide 1: ASX Announcement: FY2020 Results Announcement, Investor Presentation & MD's Overview
Tacoma // Denver // Sydney // Melbourne ASX ANNOUNCEMENT 1 September 2020 FY2020 Results Announcement, Investor Presentation & MD’s Overview Pacific Current Group Limited (ASX:PAC) attaches the following documents relating to PAC’s Full year 2020 results announcement: 1. FY2020 Results Announcement;
Slide 2: Pacific Current Group Full Year Results, Year ended 30 June 2020
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 31 August 2020 PACIFIC CURRENT GROUP FULL YEAR RESULTS Year ended 30 June 2020 Pacific Current Group (ASX: PAC, “Pacific Current”) is pleased to report the Company’s full year
Slide 3: Portfolio Management, Pipeline and Outlook
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 PORTFOLIO MANAGEMENT There were numerous developments in the portfolio during FY20. PAC began the fiscal year with an A$6.8m investment in Roc Partners to increase PAC’s stake
Slide 4: Summary of Financial Results
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 Summary of Financial Results Please refer to the presentation attached for the details. 1 FUM of private equity funds is based on capital commitments to each fund and does not
Slide 5: Conference Call
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 CONFERENCE CALL Investors and analysts are invited to participate in a conference call on Tuesday, 1 September 2020 at 8:00am AEST. The call will be hosted by Pacific Current G
Slide 6: FY Results Presentation August 2020
F Y 2 0 R E S U LT S P R E S E N TAT I O N 31 August 2020
Slide 7: Disclaimer
DISCLAIMER The information in this presentation is general information about Pacific Current Group (‘Pacific Current’ or ‘PAC’) and is current only at the date of this presentation. In particular, this presentation: ❯ is not an offer or recommendation to purchase or subscribe for securities in Pacif
Slide 8: Performance Snapshot
PERFORMANCE SNAPSHOT The business achieved record underlying profit, a 40% increase in fully franked dividend, and substantial growth in funds under management. 21% 18% 40% 62% on pcp on pcp on pcp on pcp ($M) (Cents) (Cents) ($B) 25 25.0 15 51 93 20.8 44 75 22 17.1 57 36 10 10 FY18 FY19 FY20 FY18 F
Slide 9: Shareholder Value
SHAREHOLDER VALUE PAC has an extensive bank of franking credits to support ongoing shareholder value and a level of asset backing that sits at a premium to its current share price. Franking Credit Balance Franking Credits per Share Net Assets per Share $M $ $ 31.6 0.66 8.04 8.09 29.0 0.58 26.6 0.56
Slide 10: FY20 Highlights
FY20 HIGHLIGHTS After significant change in the portfolio in FY19, the year was one of reinforcement and growth in contrast with the chaotic external environment. Investments » Proterra Investment Partners (US$20.5 million) - a private equity firm focused on natural resources » Pennybacker Capital (
Slide 11: Financial Performance
FINANCIAL PERFORMANCE
Slide 12: Statutory versus Underlying Results
STATUTORY VERSUS UNDERLYING RESULTS Underlying results are critical to understanding business performance and are the measures used to remove discrete or one-off items as noted below, which are otherwise required under the accounting standards. Statutory NPAT Underlying NPAT ($M) » Gains or losses o
Slide 13: Underlying Profit Drivers
UNDERLYING PROFIT DRIVERS Growth in underlying profit was driven by increases in boutique contributions and active expense management. (A$000s) FY18 FY19 FY20 Underlying Revenue Underlying Expenses Revenue 9,651 7,633 5,126 ($M) 48.7 ($M) 47.2 Employment 9,642 8,613 8,080 37.2 20.0 19.8 Marketing/co
Slide 14: Alternative Balance Sheet
ALTERNATIVE BALANCE SHEET The economic strength of the business is shown in the alternative balance sheet, which highlights movement in the values of the portfolio companies different than the requirements of the statutory accounts. » Reflects deconsolidation of operating subsidiaries (i.e. Aether,
Slide 15: Operational Performance
vi. OPERATIONAL PERFORMANCE
Slide 16: New Investments
NEW INVESTMENTS In 1H20, the business invested in two new funds, Proterra Investment Partners, a private equity firm focused on investing in natural resources, and Pennybacker Capital, a private real estate investment fund. PAC Classification: Tier 1* PAC Classification: Tier 2* An alternative inves
Slide 17: Revenue Diversification
REVENUE DIVERSIFICATION PAC’s underlying revenue shift away from equity market dominance underscores the increased diversification across boutiques, investment classes, geographies, and industry sectors. Share of Revenue^ Linked to Equity Markets* » In FY20 revenues continued to shift away from acti
Slide 18: FUM Growth by Manager
FUM GROWTH BY MANAGER A number of funds performed well but were overshadowed by the spectacular results of GQG, which grew 77% off an already large base. Tier 1 Boutiques (A$B) Tier 2 Boutiques (A$B) 125% $64.7 100% $2.7 75% FY20 Growth 50% $3.6 $4.7 25% $1.5 $2.2 $6.6 $4.2 0% $0.7 $2.2 -25% -50% Ae
Slide 19: COVID-19 Impact
COVID-19 IMPACT In general, portfolio companies have held up well since the onset of the pandemic, further validating our diversification strategy. We are beginning to see early signs of increased sales activity as the investment community grapples with the new paradigm. Primary impact of COVID-19 I
Slide 20: Strategy and Outlook
PACIFIC CURRENT GROUP
Slide 21: Strategy
STRATEGY While focused on distribution and new investments, PAC remains committed to devising innovative ways to access capital for growth, a possible option being the establishment of a private investment fund alongside its traditional activities. Invest and Enhance Explore New Diversify Distributi
Slide 22: Investment Opportunities
INVESTMENT OPPORTUNITIES PAC continues to see an increase in attractive investment opportunities despite current economic environment Opportunities by Asset Class Average Deal Size by Asset Class USD millions Infra 4% Private Real » 145+ deal opportunities reviewed in Public Equity Estate the last 1
Slide 23: Outlook and Investment Rationale
OUTLOOK AND INVESTMENT RATIONALE Shareholders should expect to see continued exposure to private capital strategies due to their more resilient cash flows and long- term growth prospects. Outlook Investment Rationale » The COVID-driven fundraising delays will impact PAC is distinctive because: FY21,
Slide 24: Appendices
APPENDICES
Slide 25: Pacific Current Overview
PACIFIC CURRENT OVERVIEW Pacific Current is an ASX-listed, global, multi-boutique asset management business, which leverages its experience and resources to identify exceptional asset managers and help them grow. MARKET INFORMATION * PAC SHARE PRICE MOVEMENT ASX 200 MOVEMENT Shares on Issue 49,708,4
Slide 26: Statutory Profit & Loss
STATUTORY PROFIT & LOSS A$000s FY18* FY19 FY20 » Results include the revenues and expenses of operating subsidiaries (i.e. Seizert, Aether, and SCI) Revenue from operations 37,484 41,501 35,811 Distributions and dividend income 5,293 19,851 25,271 » Dividends from Carlisle and Proterra improves divi
Slide 27: Statutory to Underlying Reconciliation
STATUTORY TO UNDERLYING RECONCILIATION A$000s FY19 FY20 Change % » Reported results impacted by extraordinary items Reported NPBT 53,969 (27,317) (150.6) » Impairment of investments in FY20 relate to Non-cash items Seizert, Aether, Blackcrane, IFP, and Victory Park Impairment of investments 28,857 5
Slide 28: Statutory Balance Sheet
STATUTORY BALANCE SHEET Book Value (A$000) FY18 FY19 FY20 » Reflects the consolidation of corporate admin and operating subsidiaries Cash 130,096 80,232 20,154 (i.e. Aether, Seizert and SCI) Other Current Assets 20,351 25,184 21,705 » Cash balance reduced with the acquisition of Proterra and Pennyba
Slide 29: Alternative Cashflow
ALTERNATIVE CASHFLOW A$000 FY19 FY20 Underlying proforma NPBT 27,448 32,072 » Cash flow from operations in FY19 significantly impacted by the payment of taxes relating to gains on disposal of Accounting earnings from boutiques (22,844) (29,911) investments in prior years Dividends from boutiques 25,
Slide 30: Managing Director's Financial Year Overview
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 Managing Director’s Financial Year Overview I am pleased to provide an update on the business and performance of Pacific Current Group (PAC). What initially looked like another
Slide 31: Performance Fees and Stock Performance
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 It is our practice to recognize performance fees only when our entitlement to them is essentially assured. However, some of our boutiques accrue performance fees on their own b
Slide 32: COVID-19
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 COVID-19 Elsewhere in this report, we elaborate in greater depth on the impact COVID-19 has had on our business. That said, the brief summary is that: (1) some of our portfolio
Slide 33: Final Thoughts
33° 51' 50.457" S, 151° 12' 23.437" E Level 29, 259 George Street, Sydney NSW 2000 T: +61 2 8243 0400 // F: +61 2 8243 0410 Final Thoughts We believe our diversification into growing segments of the investment management world is one of our key strengths. One only has to look at the quarter ending 3