Praemium Limited

update. It's good to see so many people on the call, so many people registered and now a lot having joined the call. So thank you very much for your interest. I'm joined today by Simon Moore, the interim CFO at Premium, and we'll be taking you through the slide deck, which has been published on the ASX already. We will begin by acknowledging the traditional custodians of country and pay our respects to their elders past and present. We also before we start just draw your attention to the usual disclaimer about the material that we're presenting. As I said, I'm joined by Simon. As we often do, we'll talk about strategy. We'll then get into the detail on the FUA and the flows, including the detailed tables, and then there'll be plenty of time for questions. For those who haven't joined before or even those who have, just a reminder that you can type your questions into the Q&A section, and we will... answer all the questions that come in, except where there's multiple questions on the same topic or the same basic theme, and we'll curate those ones. On the strategy, you've all seen this slide before. What I want to do, first of all, is just a reminder that this is what we focus on. And I have said for those people tuning in, particularly shareholders who are most of the audience, if you think that we're missing something in the strategy, you're more than welcome to reach out and say, I see your strategy, I see the progress you're making on it, but I think the business would be in better shape if this was a particular area of focus. So we're always open. We have very good conversations with shareholders and it may be that you see some opportunities that we're missing. So that's the first thing to say about the site. Second thing is we have made two very subtle changes. The first is We've talked about inorganic in the fifth column, but now we're just talking about growth because our strategic focus is actually growth and more of our growth is coming organically than inorganically at the moment and probably for the foreseeable future. So growth is the objective rather than necessarily acquisitions, although we don't rule out acquisitions and we continue to have some files open. The second thing is service. We've just simplified. We used to say customer service. We're just calling it service just for ease of the look of the slide. But the service is to our clients who are financial advisors and to their clients, the investors. And those are the five areas that we feel if we get those right, the business will produce good results, both growth, which we talk about four times a year, including today, and then financially, which we talk about twice a year and a half year and full year results. So these are the levers we've got to work on that we believe will deliver results that ultimately lead to appropriate shareholder returns. The biggest area that we've focused on over the last year or two has been on the product side. We've said in the five areas or the five levers that we've got, the gap that we've got, the most glaring gap has been product and the launch of Spectrum was our attempt to close what we saw as a glaring gap in our business model. And so with Spectrum now launched, we turn our attention to fine tuning the product suite for the time being. And that consists of work that we're doing on the two interfaces that our clients have with us, which is investor portal, which the end investors use, and advisor portal. And then the other thing is our technology works very well with other technology that's available to advisors. But the thing that makes it work well is the integration. So we continue to do what I believe is very good work. on the integration suite or the API suite and integrating to more and more software. Each time we win a new client, it introduces new integrations that they would like because they have a different desktop than other clients. So there's been a bit of work on some of our wins to develop new integrations. But we do do a lot of work on that and And we score number one on integrations in the investment trend survey. So we think we're doing a good job. But again, as I often say, we don't want to be complacent because how well your technology interfaces with the other technology that advisors use is a critical point of difference in the market. In terms of, I've finished by saying, as I said at the start, we regard it more as fine tuning on the product side than wholesale new development, which is good because it gives us time to focus on the other four areas, which are also just as important in terms of what we're doing strategically. In operations, which includes not just administration staff and operational people, but includes our technology, you'll see that a lot of the issue now is around how we're integrating AI and the early developments we're doing there. And we're very pleased with the initial progress that we're seeing there, as well as continuing our Lean Six Sigma program, which has been going for a while now and which has developed some outstanding wins within our business driving. And these things are usually driven by two high priorities. productivity improvement or efficiency gains. And the second is improved quality of what we do. The third area of service and And this is now a major area of focus for us. We've said that we're going to improve our service. We are not happy with where we are on service. We think we're satisfactory on service, but satisfactory is not good enough for what we want to do because we appeal to the high net worth market and the high net worth market expects that we will deliver a very high level of service, a level of service that they're used to in the other products and services that they use as high net worth services. advisors and high-net-worth people. We've talked a bit there about what we're doing on service. As I said earlier, AI or the advancements that we've seen recently in technology don't just drive productivity gains for us, but they drive service improvements. On superannuation, we've continued to say, you know, superannuation is the vehicle the large amount of the wealth industry uses to accumulate their wealth. We benefit from the fact that our high net worth cohort often have self-managed super funds, but we're confident that we can deliver a substantial improvement in our retail super offering. And at the moment, we've got about 20% of our portfolio is held in retail superannuation. And for the platform market as a whole, it's much higher. So we feel that even as we grow our platform offering and the amount of FUA on the platform, we can grow the superannuation even faster and it can become a greater share. But to do that, we're making those improvements. And again, we're very confident we've had a provider develop some new technology capability for us. That's been delivered and we're just going through final UAT on that. And when we launch that, into the market. That will be a substantial improvement in the functionality of our retail superannuation offering. And finally, on growth, which is critical to what we're trying to achieve, that we do continue to grow, the inorganic growth was, of course, OneView, and that transition is now well underway with a substantial part of the funds on the OneView technology and product suite now transitioned to the premium technology and product suite, which is tremendous. and we've had some major client partnerships. I talk a lot about the pipeline is full of big opportunities, middle-sized opportunities and smaller opportunities, and they're all important. Advisors are spread across firms in all three categories. but obviously it's the bigger ones that people say oh well if you win a big financial advice group that's a good sign about the merits of what you've got to offer and the encouraging thing is that some of our recent major wins including euros bell potter and morgan's are spread across the offering that we've got uh spectrum scope plus and the sma product so when we talk to advise now we're we're definitely in the position where we can say, we need to understand your business. We obviously understand quite a lot about how financial advice works in Australia, but we want to understand the unique capabilities and features that you bring to your client base. And we will inevitably understand have a product in our suite now that will meet your needs probably better than anyone else in the market can meet. And that shows itself in success across all of the product offerings that we've got in the major client segment, as well as in the middle size and smaller segment. So that's what drives the results, but now I'm going to hand over to Simon, and he's going to talk about the quarterly flows and FUA in a bit more detail. Over to you, Simon.

Great. Thanks. We'll move to the next slide. Our headline FUA, as you know, finished at $64.3 billion for the year, so up 12% for the year. Breaking that down, this slide deals with the platform FUA. which finished at $30.7 billion, which is up $2.6 billion, or 9% on the year. Net funds inflow in the quarter, excluding OneView, so keeping that focus on the organic growth, was net inflows of 152. The first call out is Spectrum, which is our key FrontBook platform product. Spectrum ended at $2.4 billion FUA at 30 June, in that number is net inflows for the quarter of $339 million, which is on top of the $440 million in the March quarter. The $2.4 billion also includes $1.5 billion transfer, which is coming from OneView on the integration. Internal transfers are excluded from the inflow statistics for Spectrum and outflow statistics for OneView to ensure that reported movements that we put in these figures are purely external. Although I should note that the $1.5 billion comes from internal transfers that only come about because the customers of OneView have elected to go to Spectrum. They had other choices. Understandably, we get a lot of questions from people who are trying to calibrate the future take-up of this new product spectrum, and it's an important part of our future, and I can understand the interest. We were happy picking up close to $800 million in the last two quarters. In the next half, we'll be focusing on onboarding Euros Hartley, as Anthony mentioned, which will help build that momentum. That said, we think it will probably take a couple more quarters under the belt to get a better sense of the longer-term growth trajectory and be able to calibrate that growth. Para wrap finished at $13.4 billion, up 6% for the year, 1% for the quarter. The June quarter had net outflows of $251 million, which was disappointing. The frustration is that the flows do not relate to customer satisfaction or the strength of the proposition. We have looked carefully at the outflows. We understand the outflows associated with the departed advisors and other changes that And we are hoping that with the ownership of Escala resolved, that this becomes more settled in the future. That said, we expect that PowerWrap will be impacted by the fact that our primary wrap product is now Spectrum. and we expect IDP growth to be more focused in spectrum, which sounds a bit of a oxymoron to have focus in a spectrum, but anyway, there we go. Putting this together, once OneView is complete, it will make more sense to simply report the investment platform flows in the aggregate as our competitors do. I think this was signalled by Anthony in the last March quarter. OneView had net outflows of 189 million, which is a result of an acquired business undergoing business change. From our perspective, we are keeping good clients for the right reasons, which was always our objective. As Anthony noted, we are well progressed on the integration. Finally, the SMA product ended 14% up for the year, 5% for the quarter at $12.9 billion. Net flows of 64 million in part reflect elevated outflows that occur in the June quarter, which is a function of tax planning and pension payments at the year end. The SMA is a good product with strong future potential. Anthony has referred to the recent sign-up of Morgans for the SMA product. The onboarding of Morgans will be our key priority for the first half of 26. Now I'll move to the next slide. On the non-custodial side, our full was up 4% for the quarter, or 15% for the year, ending at $33.6 billion. This is a key strength of premium, and it's a strength that's particularly relevant to the high net worth segment and the broker market, which we are focused on. Our recent announcement of the Bells Potter win will add a further 2,220 accounts and 6 billion of FUA in the first half of 26, creating a good step up for the business on top of the five new advice scripts that we added last quarter. I moved to the detailed slides, and rather than read a telephone book to you, we'll leave that open for questions and leave that in public domain. But to set the expectations for the future discussions consistent with our periods, I expect that we'll be providing our custodial and non-custodial split of funds flows. and will be a reporting platform in the aggregate in the future once we're through the one view transition. Although we can still talk in the narrative about what are the movements within PowerApp and OneView. So Anthony, if we move to the questions.

Right. Thanks, Simon. Now bear with me because we've had a lot of questions come in. So I'm going to group them in the sort of categories they come. The first one is power outflows. Can we get a bit more colour about that? And do you think it's coming to an end? The reality is Yes, we can see that it's coming to an end. There's been a dramatic drop-off in the outflows, which doesn't automatically appear when you say, oh, but the previous quarter it was $88 million, I think. I can't get the slides to move, but... Here we go. Yeah, so when people see that, I get the confusion because the outflows, 188 outflow from departed advisors in the previous quarter, we had, from memory, it was about $88 million. But what we see behind the scenes, and we're not going to give away confidentiality, but More than half of that outflow was a single client and it was related to the changes that Focus made in the ownership of the business. So it's not unusual. It's money that was probably going to stay until the changes. So I won't say any more about it. It wouldn't be fair. for me to say more, but what it does mean is that we are very confident that we've seen a tailing off of the flows. And it's consistent with our expectation that about this time, two years down the track, that would be about it. And the last two quarters give us high confidence. So we're tailing off before. You know, the outflows in FY25 are significantly lower than 24. and the last two quarters have really tailed off a lot to give us some confidence that that's coming to an end. The thing I would encourage people to do, as we said in the note, you know, a lot of people, when they go into the details, say, look, we look at your gross inflows, we look at your outflows, And we know the difference between the two gives net inflows. And we just want to understand if these outflows are coming to an end and whether the outflows, you know, are elevated forever. And if you just, you know, we've talked about, you know, if one view there's some unusual behaviour because we just bought it and you lose some clients, we expected to lose some clients. And then we had the departed buyers. And all that, if you say that's about $2 billion over the last two years and you add that back, our gross outflows are not dissimilar from the market as a whole. And that's what we expect in the long run. We don't expect our outflows to be significantly higher than the market as a whole. And then the lever that we've got to pull is the inflows. And the inflows are picking up. albeit early shoots or early growing shoots, but they're picking up and spectrum's been the key thing. Now other products were declining in terms of gross inflows and spectrum is closing the gap and now getting us to a positive gross inflow story. So we're very confident, as we say, in our growth trajectory and our growth outlook. I have had some questions about OneView. There's been two types of questions about OneView in the questions. One is, are we surprised at the rate of outflow from Spectrum? And no, it's consistent with the business case when we bought that business. You don't expect to keep all of the money. You expect you'll keep most of the money. But we're not uncomfortable with the amount of outflow and the rate of transition. And the second question is, are we comfortable with the rate of transition from one view to spectrum and the other products, which we've gone into a bit detail about which products it's switching to in this release, which I think is transparent and good information about where the OneView money is transitioning to within our business. And it's transitioning to our growth products, the products that we're actively promoting. And we're very happy with the rate and we're confident about the trajectory of the transition onto the premium tech. I have had a question around the cash holdings. It's still early days for Spectrum and the cash holdings were higher than the other products. We do earn that same sort of margin on cash in Spectrum as we do on the other products. So that was part of the question. And where it lands, as we've said for a while, you've got to give Spectrum two or three years to really understand where it finishes up in terms of cash holdings, in terms of the asset allocation of the investors in there, in terms of what the consistent rate of fuel will be. And so we would expect that to even out over time. see where that goes when it's a more mature product. The early days of the product are the early adopters, if you like, and not necessarily representative of where the product lands in the long run. But clearly we think we've hit the market with Spectrum and we're very happy with how it's going on all fronts, asset allocation, rate of growth and the like. Now, there's been a couple of questions about Bell Potter. We sort of said what we would say about Bell Potter, but obviously people want to know what sort of revenue we get out of the business. I've seen speculation in the market. All we've said is that it was priced competitively and consistent with the balance of our scope plus. clientele and so a very good win for us and congratulations to many of the distribution team who are on the call who have worked tirelessly to build out our sales pipeline and seeing some fruits of that so thank you to them. The question around will we expect to see some churn in scope? We have got at least one big account in scope that will transition off scope in the not too distant future, which I think is in the public domain. We'll let that business talk more about their opportunities out of respect for them. But we're very confident that on balance, the revenue and opportunity and scope and scope plus business is it's more of a tailwind than a headwind for us. So we're very confident about it. and continue to invest, a lot of that development and capex that you see in our business is developed at keeping Scope as the leading proposition in that market. As you all know, sometimes your investment is in catching up where you're behind and that's what Spectrum was all about. But some of your investment is in staying ahead of the game and that's what a lot of our investment in Scope and Scope Plus is all about. I think that having covered PowerApp Advisors, OneView, Bell Potter, onboarding, there's a couple of questions about onboarding. That's a very good question. And one of the things about having got to the tail end of the... Having got to the tail end of the Spectrum and OneView transitions, which were two of the big investments on that strategy slide, they were two of the big things that we were investing a lot in, having launched Spectrum and now fine-tuning it rather than building any new functionality, and having basically migrated most of the OneView business onto premium tech, That allows us to focus on those other areas. And the two areas that make the most difference to the pace of onboarding and what we do on the operations and the service, there's a little bit of the investment in product is about saying, okay, whenever you win a new client, they say we want this. As I said earlier, there's a fair bit of stuff in the API. Every client that you win has got their own CRM that they're using, got their own advice software that they're using and want a seamless experience for their advisors and their clients. So you invest a bit more in the API. And because we've finished the two big initiatives or largely finished the two big initiatives, that's giving us plenty of time to invest our time in building out the API that our new clients want. And so we're very happy with that. I've had some questions in the past as well about, you know, we know that you won Morgan's. There hasn't been an ASX release about it. There was an ASX release about Bell's. That goes to the fact Bell's is an existing book and Morgan's are building their book. So Bell's, we expect that transition will take place over the next six months, as Simon said, first half of FY25. Euros, we expect that, as we've said before, probably 18-month to two-year transition when it really gets going in earnest. And we're confident that that's all on track. And as I say, some of the development work we've got time to do now is building out what they would like. Morgan's are building a new business within Morgan's, and so we're working with them on that. We don't know how long that will take, but we've had the experience of doing that with other clients. And again, I don't really want to talk about our other clients on a public ASX call, but we've had some experience of helping advice firms build out their SMA offering and so we're very confident that that's a good initiative with Morgans but we're in their hands. It's their business, it's their product. We think it'll be a dynamic and great product for them and we'll do whatever we can to make that work and should that be successful it will be a very significant win but not because it's starting from scratch, it's not an ASX announcement. The one view transition that's happened, what we've announced today is what has transitioned before the 30th of June. There's been some additional funds of transition since the 30th of June, which we haven't put in this announcement, but that's what that is. I think the questions are around the rate of... Look, I get... There's quite a few questions about the rate of onboarding now that we've got these big wins like Euros, Morgans, Bell Potter. We've said what we can about it. We know... Some of the questions are just curious, you know. We'd just love to know. We've got to put in a model how quick it'll happen. And it's hard, you know. You just don't know exactly. We've said Bell Potter, we think, around a six-month journey. Euros, 18 months to two years. Morgans just... but builds over time. That's what we know. Some of the questions about, are you doing all you can? And that's my answer. If you ask me, what was the number one priority 12 months ago? It was launching Spectrum. What was the number one priority six months ago? It was, you know, transitioning OneView. What's the number one priority now is onboarding these big wins and giving them an experience to remember as part of their onboarding experience. All right. Well, I think there are some more questions. Some of them are touching a bit about what we've already covered. I'm going to close it there because I could wait a long time and we're all busy and got things to do. And I know I'll have the opportunity of talking to people over the next little while at various forums and the like. And then we've got the financial results coming out in about a month's time so thank you very much for the interest if there are things that you know we haven't dealt with you've got my number and Simon's number so feel free to reach out but I think that's probably a good place to bring it to an end except to say once again it's good to have so many people on the call and really appreciate your interest and thank you in particular to all the shareholders on the call for the support that you give us Enjoy the rest of the day.

Thank you.