Investor Presentation 26 July 2010 Praemium (ASX:PPS) is pleased to provide a copy of the attached Investor Presentation which will be used by the Group CEO, Mr Arthur Naoumidis, to accompany presentations to investors and their advisers following the recent release of the Group?s quarterly Appendix 4C. About Praemium: Pr?mium Ltd (ASX:PPS) is one of Australia?s leading suppliers of online financial portfolio administration and Separately Managed Account (SMA) technology, administering over AUD 38.9 billion* of assets. Pr?mium currently provides services to around 500* financial institutions and intermediaries, including some of Australia?s largest financial institutions. *As at 31 December 2009 Investor Presentation July 2010 Arthur Naoumidis Group CEO Business Performance V-Wrap Quarter Revenue Receipts Nbr Portfolios FUA SMA FUM UK FOP? Jun-09 $2,170 K $4,796 K 41,296 $31.6bn $329mn ? 11.4mn Sep-09 $2,632 K $2,938 K 41,043 $36.7bn $415mn ? 17.5mn Dec-09 $2,642 K $2,272 K 42,596 $38.9bn $460mn ? 39.0mn Mar-10 $3,261 K $2,968 K 43,647 $40.6bn $511mn ? 80.7mn 2 Jun-10 $3,413 K $2,821 K 44,167 $39.7bn $497mn ?115.7mn ? 09/10 FY revenue up 33% to $11.9 Million(unaudited) ? 7% Growth in V-Wrap portfolio Numbers over FY ? 51% Growth in SMA FUM over FY ? UK FOP Growth continuing - 44% Growth in Q4 Note?: FOP = Funds on Platform EBITDA for half year to 31 December 2009 = ($3.7million) ? a 44% improvement from PCP Estimated EBITDA for 09/10 FY approx. ($5 Million) ? unaudited - PCP was ($10.676m) Key Financial Details 3 All development costs are expensed Praemium has no debt Cash at end of June 2010 = $5.6 million o Cash at 31/12/2009 was $7.6 Million 7% increase in portfolios 44,167 portfolios with $39.7 billion assets as at 30 June 2010 Over 17,500 SMSFs ? 4% of market E*TRADE deal - ?live? in July 2009: Highlights 4 Once a year Tax Reports for all E*TRADE active retail customers as part of a base fee Daily standard V-Wrap service launched June 2010 to E*TRADE customers on subscription V-Wrap Equity Trading being deployed with E*Trade & Morgan Stanley Smith Barney Improve Accountant Penetration Continued Improvement of Super compliance interface Additional portfolio services for smaller portfolios Development of Accountant Investment Register SMARTwrap Outlook 5 Full managed fund wrap capability ? launched July 10?. Compelling proposition for clients ? better functionality and cheaper than legacy wrap platforms Increases financial planner addressable market for V-Wrap from 10% of planners to 100% of planners Supports transition from commission to fee based advisers Addressable market is $400 Billion ? we are targeting more than 2% in 2-3 years $8+ Billion Already receiving strong enquiry rate from prospective clients. Praemium earns approx. 8bps on SMARTwrap FUM Highlights BlackRock Customised Portfolio Service: 184 organisations now subscribed to this service $400 $500 $600 SMA FUM($ Million) 6 FUM approx. $500 million* Flat lined during GFC Started growing in April 2009 *As at 30 June 2010 $0 $100 $200 $300 Jun-09 Sep-09 Dec-09 Mar-10 Jun-10 Outlook SMA Will improve as market does Imminent deployment of ?Model of Models? Compelling value proposition for Financial Planners Elimination of ongoing SOA Reduction of business risk 7 Improved business value Strong demand from current and prospective clients SMARTwrap to drive growth Allows transition form old legacy wraps One platform showing traditional managed fund and new SMA portfolios FUM of Praemium UK grew to ?115.7 million over the period ? 197% growth since December 2009 Praemium UK clients have circa ?3 billion ?under influence? Our two key offerings are well positioned within the UK regulatory environment United Kingdom - Highlights 8 Commissions banned from end of 2012 Strong Fiduciary requirement - TCF Russell Investments selected Praemium SMA platform Large global investment manager Multi-jurisdictional deployment to global offshore Trust company High net worth and very high net worth clients Expected to start loading FUM this quarter Strong Growth in UK platform assets Current size is approx. ?90 Billion Forecast to grow to ?300+ Billion by end of 2012 Driven by ban of commissions Praemium well placed to benefit from this United Kingdom - Outlook 9 Offshore Market is an additional driver Russell Investments first offering in this space A number of other negotiations in progress This is a large market not well served by existing platforms Praemium well positioned for growth in this market 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 financial planner market Increasing distribution and building FOP in the UK Maintaining tight control on costs Outlook Summary 10 To realise substantial revenue leverage from the scalability of our services, and from enhanced productivity in general We aim to become operating cash flow positive during 2HFY11. 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. 11 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 098 405 826 (ASX:PPS). Praemium, V-Wrap, V-Wap Adviser, V-Wrap Investor, dps, SMARTfund and Praemium SMARTwrap are trademarks of Praemium Limited.
PPS Price at posting:
26.2¢ Sentiment: LT Buy Disclosure: Held
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