Click to edit Master title style StatPro Proactive Investors One2One Forum December 2010 1 www.statpro.com www.statpro.com
A Platform for Portfolio Analytics Valuations & Research 2 www.statpro.com
StatPro History Established 1994 Employees 250+ Clients 250+ Revenue in 2009-31.6 million (up 16%) H1 2010-16.6 million (up 7%) Profit* in 2009-6.9 million (up 48%) H1 2010-3.4 million (up 6%) Recurring Revenue - 27.9 million (June 2010) Recognised leader in Performance and Risk *Adjusted profit before tax 3 www.statpro.com
Worldwide Offices 4 www.statpro.com
Portfolio Analysis Why do we need it? Manage your portfolio better Win new investors Transparency for investors (Madoff!) Comply with Regulations 5 www.statpro.com
The Asset Management Market Place Key Facts There are about $90 Trillion under management 30% is managed by just 25 companies! 30% is managed by companies with <$1 billion StatPro s Traditional Market The top 1,000 asset managers >$5 billion Assets under Management (AUM) 14 of the top 20 asset managers are clients 6 www.statpro.com
Market Size for Portfolio Analytics Category BY AUM Approximate Number of Asset Managers Potential Budget* for Analytics Systems > 1 Trillion Dollars** 25 $300m > 200 and 1,000 Billion Dollars** 150 $400m > 50 and 200 Billion Dollars** 300 $600m > 5 and 50 Billion Dollars # 500 $800m > 1 and 5 Billion Dollars # 3,000 $1,000m < 1 Billion Dollars # 25,000+ $3,000m Total approximately 30,000+ $6,100m+ * Estimate that excludes people, data, back and front office systems ** Source Watson Wyatt # Estimate by StatPro from various sources 7 www.statpro.com
The technical challenge for analytics The traditional approach Install the software with clients Offer annual upgrades The problem It is a slow process Over time, you get the software grid of death The solution SaaS* allows scalability Rapid deployment 8 www.statpro.com *Software as a Service
The Opportunity with SaaS New markets for StatPro Revolution Gatekeepers Custodians, Wealth Managers Smaller asset managers with limited solutions The front office of existing clients New territories Asia, South America 9 www.statpro.com
Addressing this Market It is good to have a large market, but how do you access it? The product must be : Easy to use Easy to deploy Easy to support Have superb analytics Be affordable and in the Cloud The business model must be adapted to the market 10 www.statpro.com
Statpro Revolution is + + + + Data Analysis Presentation Publish Research per portfolio per month 11 www.statpro.com
The Strategy for Revolution Data Focus on Gatekeepers Custodians Software Vendors Data Vendors Quick wins from our existing asset management clients Revolution will not cannibalise existing revenue Build market awareness Build the StatPro shop with third party services Data suppliers Software suppliers 12 www.statpro.com
The Current Situation Revolution free public beta started on July 2010 Over 200 companies have signed up First client is a global custodian bank Data Potential portfolios 3,000+ 2011 probably have between 200-500 portfolios Revolution goes live on February 2011 StatPro has 250 clients that we can integrate with it We are focusing on Gatekeeper & distributor prospects 13 www.statpro.com
Our Objective Revolution will become a Platform for analytics Open to any supplier Open to any asset manager Data Collaboration and transparency will be simple Analytics will be affordable 14 www.statpro.com
Appendix 15 www.statpro.com
Financial Highlights of H1 2010 16 www.statpro.com
Financial and Operational Highlights H1 2010 17 www.statpro.com
Growth in Revenue 18 www.statpro.com
Adjusted Operating Profit 19 www.statpro.com
Free Cash Flow 20 www.statpro.com
Revolution Screenshots Revolution screenshot: Dashboard Overview 21 www.statpro.com
22 www.statpro.com Revolution screenshot: Equity Attribution Overview
23 www.statpro.com Revolution screenshot: Contribution Overview
StatPro Shareholders Shareholder Name (* - Director) Amount % Holding JMBT Wheatley * 7,159,367 11.8 Herald Investment Trust 6,981,784 11.5 AXA Framlington 6,638,750 10.9 Liontrust Asset Management 4,576,467 7.5 Artemis Investment Management 3,897,670 6.4 Strategic Equity Capital 2,627,307 4.3 MC Adorian * 2,520,698 4.2 Freefloat 50.7% 24 www.statpro.com
StatPro Board Justin Wheatley Group Chief Executive Justin, 45, began his career with Micropal in 1988. In 1991 he set up an agency to sell Micropal products in Switzerland and from there grew the business by expanding it in France and Luxembourg. In 1994, he founded StatPro to develop portfolio analysis software systems. In 1999 he sold off the Micropal agency to raise 1.7m to fund StatPro's growth and in May 2000 he floated StatPro by raising 5.0 million to build up StatPro's international expansion. Since flotation Justin has led several secondary fund raisings, acquired 10 businesses and disposed of two business units. He has day to day responsibility for the Group. Carl Bacon CIPM (123) Non-Executive Chairman Carl, 47, was appointed Chairman in 2000. Previously he worked as Director of Risk Control and Performance at F&C Investment Management Limited and prior to that was Vice President - Head of Performance at J P Morgan Investment Management Inc. He is a founder member of both the Investment Performance Council and GIPS, a member of the GIPS Executive Committee, chair of the Verification Sub-Committee, a member of the UK Investment Performance Committee and a member of the Advisory Board of the Journal of Performance Measurement. Carl is also the author of "Practical Portfolio Performance Measurement & Attribution". Andrew Fabian FCA FCT Group Finance Director Andrew, 48, was appointed Finance Director in 2000. Prior to joining StatPro, he was Group Financial Controller at William Baird PLC. Andrew has significant experience in the financial services sector, both through senior finance roles at William Baird PLC and De La Rue plc, and also through advising financial institutions as a management consultant at Deloitte & Touche. Andrew is a chartered accountant and qualified corporate treasurer. He is a Fellow of both the ICAEW and the Association of Corporate Treasurers and served for three years on the ACT's governing council. Andrew is responsible for the finance and operations functions at StatPro. 25 www.statpro.com
StatPro Board Charles Fairbairn ACA (123) Non-Executive Director Charles, 47, has many years' experience in the media sector and in growing entrepreneurial companies. He is currently a director of a number of private companies. He has been a non-executive director of many other AIM listed companies, including Research Now plc that was sold in 2009. Previously he worked for Pearson plc, both as finance director of Pearson New Entertainment Limited, a start-up division with interests in computer publishing which was sold to Apax Partners in 1998 for 142 million, and as Group Chief Accountant. Charles chairs the Group's Audit Committee. Mark Adorian (123) Non-Executive Director Mark, 47, was appointed to the Board in 2002. He was previously Managing Director of Standard & Poor's Fund Services. Mark co-founded Micropal, the global fund performance analysis company in 1986, becoming their Sales & Marketing Director in 1987. In 1992 he became Managing Director of Micropal, and subsequently in 1997 negotiated the sale of Micropal to Standard & Poor's, a division of the McGraw-Hill Companies. Between 1999 and 2001, Mark was Managing Director of Standard & Poor's Fund Services, a business created through merger of Micropal together with two existing Standard & Poor's businesses and another acquisition. His specific responsibilities included the global development of the enlarged entity. Mark chairs the Group's Nominations and Remuneration Committees. Stuart James Clark (1) Non-Executive Director Stuart, 62, was appointed to the Board in September 2009. He has been employed in the financial information industry since 1968. From 1995 to 2009 Stuart held various senior positions at Interactive Data Corporation ("IDC") and served as a member of the board of directors from 2000 to 2009. As President and CEO from 2000, Stuart led the business through nine years of continuous and strong growth, with revenues more than doubling to US$750 million with profitability and cash flow growing more than threefold. IDC consistently outperformed the market in growth over that period and, at around 30%, had close to the highest EBITA margin amongst major comparable players in its industry. Stuart is also nonexecutive chairman of Ipreo Holdings LLC. 26 www.statpro.com