Please see the attached presentation to be given by Praemium s Chairman and Group CEO at the Company s AGM to be held at 11am this morning.

Transcription

1 23 November 2009 Please see the attached presentation to be given by Praemium s Chairman and Group CEO at the Company s AGM to be held at 11am this morning. A Boardroom Radio Broadcast with audio recorded at today s meeting will be released tomorrow. About Præmium: Præmium supplies online portfolio administration services (V-Wrap), market data (p-desktop) and Separately Managed Account (SMA) technology to wealth managers, financial planners, accountants, stockbrokers and SMSF administrators. V- Wrap currently administers in excess of $36bn. For further information contact: Arthur Naoumidis Group Managing Director Praemium Limited:

2 ANNUAL GENERAL MEETING 23 November 2009

3 Agenda Chairman s Report Group CEO s Report Business of the Meeting Financial Report Election of Directors Remuneration Report Appointment of Auditor Directors and Employee Benefits Plan Any Other Business 2

4 Chairman s Report Don Stammer 3

5 Chairman s Report Our role and strategy We are specialists in the provision of portfolio management services to accountants, financial planners, stockbrokers, SMSFs and large institutions. Our strategy is to continue to expand our market share in Australia and to become a significant player also in the United Kingdom. 4 Continue to deliver the strategy committed to shareholders 4

6 Chairman s Report Key achievements: Australia Despite difficult conditions in investment markets, we: Widened the composition of our V-Wrap client base Increased the number of financial planners signed up for the SMA Executed the agreement with E*TRADE Australia Including a material level of minimum fees for the delivery of our tax-reporting function to their clients Achieved our first quarterly cash surplus from operations in the three months to June 2009 Australian business grows and transitions to profitability 5 5

7 Chairman s Report Key Achievements: UK Despite difficult conditions in investment markets, we: Achieved regulatory authorisation for the SMARTfund Launched SMARTfund and dps Select Restructured our business to focus on sales, implementation and client support to reduce net cost base by about $4m p.a. Signed our first clients and commenced taking in funds UK business is operational and accumulating FUA 6

8 FY09: Chairman s Report Key Financial Details Revenue of $8.8m (+25% on FY08) Net loss for the group of $10.92m EBITDA of the Australian operating business, before reallocation of corporate costs, rose by $1m to $2.5m FY10-Q1: Net receipts from clients of $2.938m (+61% on FY09 Q1) Capital raisings: Private Placement of $3.675m (Oct 09) Fully Underwritten Rights Issue of $2.775m (Nov 09) No debt; and all research and development costs expensed Cash of $8.2m as at 18 November 2009 We are now well capitalised to deliver our business plan 7

9 Chairman s Report Looking Ahead Positive indicators in both Australia and the United Kingdom: Confidence has been returning to investment markets Investors are more cost conscious Move away from product commissions to fee-for-service We expect strong revenue growth as Praemium s services: Gain further sales as low-cost pricing models Appeal as ideal fee-for-service solution Benefit from stronger investment markets Strong revenue growth in Australia and UK expected 8

10 Chairman s Report Our Goals for the Next Year To achieve strong growth in revenues from: Further developing our service offerings in Australia Seeking and supporting new operators (including Powerwrap) to gain access to mainstream financial planners Increasing distribution and building FUA in the UK To maintain tight control on costs To realise substantial efficiency gains from the scalability of our services and from enhanced productivity generally focus is to grow revenues and control costs 9

11 Group CEO s Report Arthur Naoumidis 10

12 Measures As at 30 Sept 09 % change since 30 Sept 08 Number of Services 488 2% Committed Portfolios 41,043 5% Funds under Administration $36.7 bn 31% Revenue September Q/E $2,362 k 21% Highlights since last AGM: Powerwrap Nov 08 Pricing changes Nov 08 E*TRADE Australia Jun 09 V-Wrap continues to increase its footprint 11

13 Committed Portfolios Growth in V-Wrap Committed Services & Portfolios Committed Services Committ ted Portfolios Number of Services Number of Portfolios Consistent growth despite difficult market conditions 12

14 V-Wrap Outlook Praemium targets: 4,000-6,000 new portfolios p.a. from existing clients At least one large (3,000+ portfolios or portfolio equivalents) new institutional client p.a. Accountants are the driver for growth in 2010 with SMSFs a particular focus Pressure to shift away from commission to fee-based model stands to accelerate growth Mainstream financial planners: Managed fund trading now enables Praemium to target all mainstream planners a $300+ billion market Advanced managed fund Wrap technology Strong opportunity to grow market share and target market 13

15 Highlights & Outlook A supporting product to V-Wrap and SMA Cost effective solution for market data and trading services 200 services have deployed p-desktop 35 services with live streaming version 54 users with Portfolio Review Tools Financial planning focus Portfolio Review Tools, Portfolio Planner, Enhanced Trading Portfolio Trader, the client facing Microsoft Silverlight TM version of p-desktop will be rolled out shortly p-desktop supports V-Wrap and SMA growth 14

16 As at 30 June 2009: Highlights 184 service sign-ups (up from 143 as at 30 June 2008) FUM exceeds AUD$400+ million* Flat lined during GFC Started growing in April 2009 Grew 30% in past 5 months Powerwrap will be 2nd SMA operator *As at 30 September 2009 SMA FUM is now growing as confidence returns to markets 15

17 Outlook BlackRock growth expected to accelerate Better market conditions expected to drive growth both in inflows and improved valuations Powerwrap SMA targeted to go live next quarter Extensive pre-launch interest received from potential clients Product extension - Strategy SMAs SMA across all asset classes To be launched by Powerwrap and potentially BlackRock Targeting $300 billion Wrap market and $300+ billion SMSF market Continue discussions with other SMA operators SMA growth expected to accelerate 16

18 United Kingdom SMARTfund Highlights 3 SMARTfunds are now live : Praemium s SMARTfund-branded Old Broad Street Research ( OBSR ) OBSR is one of the most respected fund rating agencies by IFAs in the UK Asset Allocation provided by Barrie & Hibbert, a global market leader in stochastic asset modelling services For planners that are not seeking white label service Foster Denovo and Allium joint venture - Sequel Foster Denovo services 20,000 investors with 100+ advisers Investment Advice provided by Henderson Global Investors, Schroders and Sarasin Informed Financial Planning a clone of Praemium s SMARTfund using OBSR and Barrie & Hibbert with Informed Financial Planning branding 3 SMARTfunds are now live 17

19 United Kingdom dps Highlights 5 dps offerings are now live : Price Bailey (7 offices - UK and Guernsey) - a discretionary firm which uses in-house models Succession Advisory Services (SAS) Signed up to dps Select as the platform through which each adviser firm member will be able to access Investment Models provided by Discretionary Managers Private Equity backed aggregator of financial planners targeting 85 firms with aggregate FUA of 7+ billion 10 firms already signed up to SAS with aggregate FUA of 1 billion Sterling McCall (3 offices, has FUA of 30 million and is targeting 250 million in 5 years) Fat Prophets 2 models targeting 35,000 UK subscribers 5 dps offerings now live and accumulating FUA 18

20 Revenue model 50 basis points entry fee 25 basis points ongoing Up to 250 entry fee Up to 35 basis points ongoing Operating Costs Very scalable offerings Net current costs (approximately $4.6m p.a.) indicative for future Scalable offerings with strong revenue models 19

21 United Kingdom Outlook Extensive interest being generated in the UK market Over 400 qualified leads In the order of 50 leads advanced discussion stage Our two key offerings are well positioned within the UK regulatory environment Transition to fee based planning by 2012 TCF Treat Customers Fairly Adviser Charging ability for each investor to agree IFA s remuneration for advice offered Praemium s platforms are designed to enhance TCF and Adviser Charging compliance Strong UK outlook; extensive interest & regulatory drivers 20

22 United Kingdom Outlook UK platform market forecast to grow from 90 billion in 2008 to 300 billion in 2013* No incumbent Wrap platforms yet achieved scale Praemium is operating during the formation stage of the UK platform market with an advanced product set Opportunity to be mainstream platform in UK market Praemium UK poised for rapid growth Compelling competitive advantages technology, regulatory and products Praemium UK signed clients already have 2 billion FUA a significant proportion expected to be transitioned over time Revenues have commenced first clients money on board with a strong sales pipeline Attractive business model bps based revenues result in significant scale benefits * Source: Navigant Consulting

23 Summary Outlook for Significant improvement in EBITDA expected due to: Revenue growth from E*TRADE Australia contract Organic V-Wrap portfolio growth Full year effect of 20% V-Wrap price increase commencing from November 2008 Growth in Australian SMA market BlackRock/Powerwrap New managed fund trading UK revenues expected to grow rapidly UK net cost reduction of approximately $4 million p.a. (effective from 1 July 2009) A promising year is ahead 22

24 Questions 23

25 Business of the Meeting 24

26 Consideration of Accounts and Reports To receive the Financial Report, Directors Report and Independent Auditor s Report for Praemium and its controlled entities for the year ended 30 June 2009 (No vote required) 25

27 Re-Election of Director Resolution 1 To consider, and if thought fit, to pass the following ordinary resolution: 1. That Mr John Bryson, who retires by rotation, is re-elected as a director of Praemium Limited 26

28 Re-Election of Director Proxy Votes/Direct Votes received prior to meeting Resolution 1 To re-elect Mr John Bryson as a director For 56,818,247 (97.10%) Open 1,668,304 (2.85%) Against 28,000 (0.05%) Abstain 0 27

29 Re-Election of Director Resolution 2 To re-elect Ms Cathryn Nolan as a director 28

30 Re-Election of Director Resolution 2 (cont.) To consider, and if thought fit, to pass the following ordinary resolution: 2. That Ms Cathryn Nolan, who retires by rotation, is re-elected as a director of Praemium Limited 29

31 Re-Election of Director Proxy Votes/Direct Votes received prior to meeting Resolution 2 To re-elect Ms Cathryn Nolan as a director For 56,765,247 (97.01%) Open 1,678,304 (2.87%) Against 71,000 (0.12%) Abstain 0 30

32 Re-Election of Director Resolution 2 To re-elect Ms Cathryn Nolan as a director 31

33 Remuneration Report Resolution 3 To consider, and if thought fit, to pass the following ordinary resolution: That the Remuneration Report for the financial year ended 30 June 2009 (set out in the 2009 Annual Report) be adopted. Non-binding vote 32

34 Remuneration Report Proxy Votes/Direct Votes received prior to meeting Resolution 3 To adopt the Remuneration Report For 50,635,680 (95.83%) Open 1,678,304 (3.18%) Against 525,709 (0.99%) Abstain 59,000 33

35 Remuneration Report Resolution 3 That the Remuneration Report be adopted 34

36 Appointment of Auditor Resolution 4 To consider, and if thought fit, to pass the following ordinary resolution: That, for the purposes of section 327B(1)(b) of the Corporations Act 2001 (Cth) and for all other purposes, Grant Thornton Audit Pty Ltd who, having been nominated by a shareholder and consented in writing to act in the capacity of auditor, be appointed as the auditor of the Company. (Voting restrictions apply in respect to this resolution) 35

37 Appointment of Auditor Proxy Votes/Direct Votes received prior to meeting Resolution 4 To appoint the auditor For 56,813,747 (97.09%) Open 1,678,304 (2.87%) Against 22,500 (0.04%) Abstain 0 36

38 Appointment of Auditor Resolution 4 That Grant Thornton Audit Pty Ltd be accepted as the auditor of the Company (Voting restrictions apply in respect to this resolution) 37

39 Approval of amendments to the Praemium Directors and Employee Benefits Plan Resolution 5 To consider, and if thought fit, to pass the following ordinary resolution: That, for the purposes of Exception 9 of ASX Listing Rule 7.2, section 260C (4) of the Corporations Act 2001 (Cth), and for all other purposes, approval is hereby given for all securities granted under the Praemium Directors and Employee Benefits Plan which is constituted and administered in accordance with the Terms and Conditions of the Praemium Limited Directors and Employee Benefits Plan which are tabled by the Chairman at the Meeting and marked A for identification purposes. (Voting restrictions apply in respect to this resolution) 38

40 Approval of amendments to the Praemium Directors and Employee Benefits Plan Proxy Votes/Direct Votes received prior to meeting Resolution 5 To approve amendments to the Praemium Directors and Employee Benefits Plan For 19,479,318 (90.18%) Open 1,471,414 (6.81%) Against 650,094 (3.01%) Abstain 21,500 39

41 Approval of amendments to the Praemium Directors and Employee Benefits Plan Resolution 5 That the Praemium Directors and Employee Benefits Plan is approved. (Voting restrictions apply in respect to this resolution) 40

42 Any Other Business 41

43 Disclaimer/Copyright Notices/Trademarks 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, business and/or financial advisers in connection with any acquisition of securities. The information contain in this presentation has been prepared in good faith by Praemium Limited. However, no representation or warranty expressed or implied is made as to the accuracy, correctness, completeness or adequacy of any statements, estimates, opinions or other information contained in the is presentation by Praemium Limited, its directors, employees and advisors. To the maximum extent permitted by law, Praemium Limited its directors officers, employees and advisors disclaim liability for any loss or damage which may be suffered by any person thought the use or reliance on anything contained in or omitted in this presentation. Certain information in this presentation refers to the intentions of Praemium Ltd, but these are not but these are intended to be forecasts, forward looking statements or statements about future matters for the purposes of the Corporations Act or any other applicable law. The occurrence of events in the future are subject to risks, uncertainties and other factors that may cause Praemium Limited s actual results, performance or achievements to differ from those referred to in this presentation. Accordingly, Praemium Limited, its directors, officers, employees and advisors do not give any assurance or guarantee that the occurrence of the events referred to in this presentation will actually occur as contemplated. Unless otherwise indicated, this presentation is the copyright of Praemium Limited ACN (ASX:PPS). Praemium, V-Wrap, p-desktop, dps, and SMARTfund are trademarks of Praemium Limited. Silverlight TM is a registered trademark of Microsoft Corporation in the United States and other countries. Other trademarks and business names used in this presentation are trademarks of their respective owners. 42

44 ANNUAL GENERAL MEETING 23 November 2009