Praemium Ltd · ASX:PPS
Praemium — FY2018 Earnings Presentation
16 slides from Praemium's earnings presentation, Aug 13, 2018
Slide 1: FY2018 annual results: Delivering on growth
For personal use only FY2018 annual results Delivering on growth 13 August 2018 Praemium Limited ACN: 098 405 826
Slide 2: Disclaimer
Disclaimer 2 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 (13 August 2018) and is supplementary to the Group’s financial results released to the ASX on 13 Augus
Slide 3: Australia and International market exposure
Australia • High-growth market, significant industry change • Diversified client base across institutions and retail advisers For personal use only • Exposure to fast-growing superannuation markets • Diversified products across managed accounts and software-as-a-service • Strong profit margins (45%+
Slide 4: Integrated technology
Integrated technology 4 For personal use only The leading managed accounts provider Investment platforms serving AUS, UK and International markets Portfolio Managed Account Investment Administration Platform Management SMA, IMA, VMA, UMA* Excellence in Multi-asset model tax reporting portfolios and
Slide 5: The leading managed accounts provider
The leading managed accounts provider 5 For personal use only Gross Inflows FUA 3,000 ($m) 8,500 ($m) 2,000 Aust Int 4,250 Aust Int 1,000 - - 14, 14, 14, 14, 15, 15, 15, 15, 16, 16, 16, 16, 17, 17, 17, 17, 18, 18, FY14 FY15 FY16 FY17 FY18 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Increas
Slide 6: Managed Accounts disrupting Aus market
Managed Accounts disrupting Aus market 6 Aus platform market (2016-2020) For personal use only Market SMA segment could growth Already at deliver 75% of SMA $57bn as at industry net flows Managed Platform 31 Dec 201711 Accounts market Expected to grow up 45% in 20171 from $18b to $60b by 20202 Advis
Slide 7: Australia highlights
Australia highlights 7 Non-custodial platform, VMA For personal use only Key client wins 5-year contract with CMC Markets to extend Tax Tools 2-year extension with JBWere Sign up of Hartleys, a leading broking and wealth management firm Launch of portfolio administration service Offering ful
Slide 8: Praemium well placed for UK market
Praemium well placed for UK market 8 For personal use only Key drivers Platform evolution Most UK platforms based on older style wrap technology Use of model portfolios has increased 25-fold over the last 7 years1, ideal environment for Praemium’s next-gen SMA technology Importance of proprietar
Slide 9: Leveraging our global pensions expertise
Leveraging our global pensions expertise 9 For personal use only UK domestic pensions UK platform market £591 billion1 80% of 2017 platform inflows (£35 billion)1 into SIPP Praemium’s platform SIPP growing strongly Potential to scale up SIPP income UK expat pensions by acquiring books of business UK
Slide 10: FY2018 financial results
FY2018 financial results 10 FY17 FY18 For personal use only Group Financial Results ($m) ($m) Key financial highlights Revenue 35.4 43.2 Product commissions (2.6) (4.6) Revenue (net) 32.8 38.6 Revenue growth 22% Cost of operations (6.8) (7.3) Gross margin 26.0 31.3 Gross margin up 21% GM % 79.3% 81.
Slide 11: Continued revenue growth
Continued revenue growth 11 For personal use only Product Revenue 50.0 ($ million) Total revenue up 22% CGR = 23% Australia up 19% 40.0 Portfolio services International up 27% SMA 30.0 Planning software Other SMA revenue up 41% Total FUA up 35% 20.0 In-house investment management FUA up 15%
Slide 12: Sustained earnings growth
Sustained earnings growth 12 Group Earnings Segment view For personal use only EBITDA by Half Segment EBITDA 9.0 ($m) 14.0 ($m) 4.6 H1 H2 8.0 3.5 4.0 2.2 FY16 FY17 1.4 4.2 2.0 FY18 2.8 2.0 1.2 (1.0) (4.0) FY14 FY15 FY16 FY17 FY18 AUS UK ASIA Corporate H1 H2 $m AUS UK ASIA Corp FY18 $m FY18 FY18 FY18
Slide 13: Building a compelling proposition R&D roadmap
Building a compelling proposition R&D roadmap Create leading For personal use only digital dashboards Key enhancements delivered Launch of International Models The Australian SMA now live with global securities Evolve to a Unified Managed Account (UMA) Launch of digital acceptance Paperless, fast ac
Slide 14: Appendix: Cash flow
Appendix: Cash flow 14 For personal use only $m FY17 FY18 Operating cashflow 6.5 8.8 Operating cashflows R&D incentive 0.1 0.6 Strong operating cashflow improvement, Tax paid (3.1) (2.7) consistent with EBITDA growth One-off costs (1.8) (1.3) Australian company tax with FY18 instalments Net oper
Slide 15: Appendix: Balance sheet
Appendix: Balance sheet 15 For personal use only $m Jun’17 Jun’18 Solid balance sheet to fund growth Cash 9.0 12.1 $12.1 million in cash reserves from strong free Receivables 6.7 7.3 cash flow generation Intangibles 4.4 6.5 Increase in receivables from higher H2 billing Other assets 4.1 4.4 In
Slide 16: Appendix: One-off costs
Appendix: One-off costs 16 For personal use only $m FY17 FY18 Arbitration, restructure & other costs Arbitration costs - 0.9 Arbitration costs from legal claim made against a HK based customer for expense and delay incurred arising General Meeting 1.2 0.4 from project scope expansion and rework Re