Praemium Ltd · ASX:PPS
Praemium — FY2010 Earnings Presentation
19 slides from Praemium's earnings presentation, Aug 30, 2010
Slide 1: 2010 Year End – Results presentation
For personal use only 2010 Year End – Results presentation 30 August 2010 A presentation which will accompany a Boardroom Radio broadcast recorded by the Group CEO, Mr Arthur Naoumidis is attached. The broadcast will be accessible from the Company’s website under Boardroom Radio section from 10am to
Slide 2: FY10 Results & Update
For personal use only FY10 Results & Update August 2010 Arthur Naoumidis Group CEO
Slide 3: Service offerings - Australia
Service offerings - Australia For personal use only V-Wrap V-Wrap Adviser / V- SMA Praemium SMARTwrap Wrap Investor AUSTRALIA Brief Description •A virtual wrap platform •A comprehensive •A Separately •A modern wrap platform with strengths in Direct market data service Managed Account based on V-Wrap
Slide 4: Service offerings - UK
For personal use only Service offerings - UK Discretionary Platform SMARTfund Advantage SMARTfund Services Service (dps) United Kingdom Brief Description A range of risk-profiled funds Praemium can create, manage and Online platform on which utilising the investment research host a fund with a distr
Slide 5: Key Statistics
Key Statistics For personal use only June 2010 June 2009 % change Revenue Model Australia V-Wrap Funds under Administration $39.7 billion $31.6 billion + 26% Generally Flat $ (FUA) Average $226 per portfolio Committed Portfolios 44,167 41,296 + 7% Number of Wholesale Clients 505 494 + 2% Separately
Slide 6: Key Financial Details
Key Financial Details For personal use only Group EBITDA for FY10 = ($5.06 million) A 53% improvement from FY09 All development costs are expensed Praemium has no debt Revenue and other income: Full year to 30 June 2010 = $12.08 million Full year to 30 June 2009 = $8.95 million Cash at 30 June 2010
Slide 7: Group Financial Summary
Group Financial Summary For personal use only Revenue Costs EBITDA (‘000) including (‘000) R&D expense (‘000) FY10 FY09 FY10 FY09 FY10 FY09 Praemium Aus P/L V-Wrap (including 9,770 8,104 5,329 4,789 4,441 3,315 V-Wrap Adviser) Praemium 833 - 30 - 803 - SMARTwrap SMA 446 281 993 1,020 (547) (739) Tot
Slide 8: Key Financial Achievements
Key Financial Achievements For personal use only EBITDA EBITDA Variance & FY10 FY09 Commentary (‘000) (‘000) V-Wrap •34% improvement (including V- 4,441 3,315 Wrap Adviser) •Includes growth in portfolios and E*TRADE Praemium 803 - • Contracted revenue SMARTwrap •26% improvement •Flat lined during GF
Slide 9: Highlights – V-Wrap
Highlights For personal use only Revenue ($’000) Costs EBITDA( $’000) FY10 incl. R&D ($’000) FY10 FY10 V-Wrap (including V- 9,770 5,329 4,441 Wrap Adviser) V-Wrap continued to increase its footprint: 44,167 portfolios – a 7% increase $39.7 billion FUA – a 26% increase V-Wrap revenue increased by 21%
Slide 10: Growth in Committed Portfolios and Services
For personal use only Growth in Committed Portfolios and Services 600 50000 45000 500 40000 Committed Services Committed Portfolios 35000 400 30000 300 25000 20000 200 15000 10000 100 5000 0 0 Number of Services Number of Portfolios 9
Slide 11: Highlights (cont..)
Highlights (cont..) For personal use only Equity trading functionality being deployed using E*TRADE and Morgan Stanley Smith Barney In June 2010: p-Desktop was rebranded as V-Wrap Adviser Portfolio Trader (which was first launched in December 2009) was rebranded as V-Wrap Investor Introduced additio
Slide 12: Outlook
Outlook For personal use only Praemium SMARTwrap Launched in July 2010 Full Managed Fund trading/wrap capability Compelling proposition for clients Better functionality Cheaper than legacy wrap platforms Supports transition from commission to fee for service Increases V-Wrap’s addressable market Fro
Slide 13: Highlights – SMA
Highlights For personal use only Revenue ($’000) Costs EBITDA( $’000) FY10 incl. R&D ($’000) FY10 FY10 SMA 446 993 (547) $600 SMA FUM($ Million) BlackRock Customised Portfolio $500 Service: $400 123 organisations now subscribed to this service $300 SMA FUM increased by 51% to $200 $497 million $100
Slide 14: Outlook
Outlook For personal use only FUM for SMA will improve with market Imminent deployment of ‘Models of Models’ Compelling value proposition for Advisers Elimination of ongoing SOA Reduction of business risk Improved business value Strong demand from current and prospective clients Praemium SMARTwrap t
Slide 15: Highlights – United Kingdom
Highlights – United Kingdom For personal use only Revenue ($’000) Costs EBITDA( $’000) FY10 incl. R&D ($’000) FY10 FY10 United Kingdom 835 4,510 (3,675) UK FOP increased by 915% to £115.7 million Praemium UK clients have circa £3 billion ‘under influence’ Our two key offerings are well positioned wi
Slide 16: Highlights – United Kingdom
Highlights – United Kingdom For personal use only £140,000,000 £120,000,000 £100,000,000 £80,000,000 DPS £60,000,000 SMARTfunds UK Total £40,000,000 £20,000,000 £- Jul'09 Aug'09 Sept'09 Oct'09 Nov'09 Dec'09 Mar'10 Jun'10 FUM FUM FUM FUM FUM FUM FUM FUM 15
Slide 17: Outlook – United Kingdom
Outlook – United Kingdom For personal use only Strong growth in the UK platform market Current size is approx. £90 billion Forecast to grow to £300+ billion by end of 2012 Driven by ban of commissions Praemium is well placed to benefit from these aspects Offshore market is an additional driver Russe
Slide 18: Looking ahead
Looking ahead For personal use only To continue with achieving strong growth in revenues from: Further enhancing our service offerings in Australia Seeking and supporting new operators (e.g. Powerwrap) to penetrate mainstream Adviser market Increasing distribution and building FOP in the UK Maintain
Slide 19: Important Notices
Important Notices For personal use only The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions investors should rely on their own examination of Praemium Limited and consult with their own legal, tax