STEPPES PARTNERS LIMITED
Contents 1. Introduction 3 2. Marketplace 7 3. Financial Services 12 4. Asset Management 16 5. Current Assets 20 6. Summary 27 Exhibit I 29 2017 www.steppespartners.com
1. Introduction “Steppes Partners is ideally positioned to take advantage of changing market dynamics in the financial services marketplace” 2017 www.steppespartners.com 3
Overview ▪ Steppes Partners Limited (Steppes Partners) is an Australian holding company that completed the acquisition of 53.4% of alternative asset management group, Steppes Alternative Asset Management Limited on December 10 th 2015. ▪ Steppes Partners will be listing publicly in the second half of 2017 in order to expand its business. Once the public listing is completed, the company will look to make accretive acquisitions. ▪ Steppes Partners had a net asset value (NAV) per share of $1.85 as at the 31st December 2016 which is forecast to grow to $2.34 per share by the 31 st December 2017 (before planned accretive acquisitions). ▪ Steppes Partners is focused on growing a diversified financial services group with a specific focus on alternative asset management, wealth management and corporate advisory. ▪ Changing bank regulations and positive macro economic picture will create multiple opportunities in the financial services sector. 2017 www.steppespartners.com 4
Steppes Focus Expand existing established business due to exceptional market opportunities Expand existing established business due to exceptional market opportunities Complete targeted acquisition Complete targeted acquisition Integrate contracted acquisition post closing Public Listing in Second Half of 2017 in order to provide currency for acquisitions Building Value grow net asset value per share from $1.85 as at 31.12.16 to $2.34 as at 31.12.17 Building Value - grow net asset value per share from $1.85 as at 31.12.16 to $2.34 as at 31.12.17 Focused on Financial Services Sector Focused on Financial Services Sector Steppes expansion strategy will create leading specialist financial services group Steppes expansion strategy will create leading specialist financial services group 2017 www.steppespartners.com 5
Financial Snapshot Current Key Statistics * Ordinary shares 230,000,000 Net Assets per share as at 31 st December 2016 $1.85 Attributable Earnings as at the 31 st December 2016 $0.68 Projected Net Assets per share as at 31 st December 2017 $2.34 Projected Net Assets per share as at 31 st December 2018 $3.07 Historical and Projected Performance Fiscal Year ending 31 st December 2015 Actual* 2016 Actual 2017 Projected 2018 Projected 2019 Projected Attributable Income $104m $156m $151m $196m $274m Net Assets $266m $426m $557m $753m $1,028 Shares Outstanding 230,000,000 230,000,000 237,900,000 245,700,000 253,400,000 Earnings Per Share $0.45 $0.68 $0.66 $0.80 $1.08 Net Assets Per Share $1.16. $1.85 $2.34 $3.07 $4.06 *pro-forma for the 12 month period 2017 www.steppespartners.com 6
2. Marketplace “Macro Economic Conditions are Favourable for Financial Services Businesses” 7 2017 www.steppespartners.com
Macro-Economic Conditions Favorable ▪ Key long term themes all point to increased demand for financial services businesses. ▪ The financial services sectors that Steppes Partners are focused upon are currently underserved and will benefit from GDP growth, population growth and urban growth. ▪ The GDP of the top 20 economies is forecast to grow by over 240% between 2015-2050. 250 200 150 100 50 0 Top 20 by GDP 2015 Top 20 by GDP 2030 Top 20 by GDP 2050 2017 www.steppespartners.com 8
Population Growth will Fuel Economic Growth ▪ The Global Population is forecast to grow by just under 50% between now and 2100. ▪ By 2100 the Global Population will be over 11 billion people (with 40% of population in Asia). Population of the World and Regions 2017-2100 2017 2030 2050 2100 World 7550 8551 9772 11184 Africa 1256 1704 2528 4468 Asia 4504 4947 5257 4780 Europe 742 739 716 653 Latin America 646 718 780 712 North America 361 395 435 499 2017 www.steppespartners.com 9
Urban Growth 1.45 Million People Per Week ▪ Between 1990 and 2015 approximately 1.1m people per week urbanised, between 2015 and 2050 approximately 1.45m people per week are projected to urbanise. ▪ Between 1990 and 2015 of the 1,427m people who urbanised 471m were in China, 630m were in the rest of Asia and 272m were in Africa. ▪ Between 2015 and 2050 of the 2,638m people who are projected to urbanise 291m are in China, 596m in the rest of Asia and 759m in Africa. ROW Urban Growth African Urban Growth Asian Urban Growth 3.5 2.5 1.4 1,230m 3,000m 2,108m 3 1.2 2 2.5 1 2,113m 1.5 2 0.8 1,116m 1,062m 1.5 0.6 1 471m 1,012m 1 0.4 0.5 199m 0.5 0.2 0 0 0 1990 2015 2050 1990 2015 2050 1990 2015 2050 2017 www.steppespartners.com 10
Economic Growth will fuel demand for Natural Resources and Infrastructure Natural Resources and Infrastructure worth $6.1 trillion per annum INFRASTRUCTURE NATURAL RESOURCES CURRENT SECTORS Infrastructure & Services Mined Products $2.5 to $3 trillion per annum $1.3 trillion per annum + Energy Commodities $2.3 trillion per annum Need for more Products Currently under $500 billion* of Private Equity Capital invested in Infrastructure and Natural Resources PRODUCTS CURRENT Equity Funds Debt Funds * Towers Watsons Global Alternatives Survey 2017 www.steppespartners.com 11
3. Financial Services “Currently Outstanding Opportunities in the Financial Services Marketplace ” 2017 www.steppespartners.com 12
Global Capital Markets Continue to Grow • The total value of major global equity markets as at the end of March 2017 was just under $76 trillion, with the US NYSE and NASDAQ markets having a combined value of $28.45 trillion or 37.5% of the major global equity markets. • There are currently 209 recognised stock exchanges globally in 127 countries. • The top ten exchanges that are in nine countries account for around two thirds of global volume. Regional and total WFE domestic equity market capitalisation as at end March 2017 and end March 2016 USD bn USD bn Time Zone % change (in USD) March 2017 March 2016 Americas 32,378 28,452 13.8 Asia-Pacific 26,682 21,787 22.5 Europe-Africa-Middle East 16,852 15,815 6.6 Total WFE 75,912 66,055 14.9 13 2017 www.steppespartners.com
Largest Domestic Equity Markets by Value in March 2017 and March 2016 Largest Domestic Equity Markets by Value as at end March 2017 and end March 2016 USD bn USD bn Exchange % change (in USD) March 2017 March 2016 1 NYSE Euronext (US) 20,012 18,171 10.1% 2 NASDAQ (US) 8,436 7,049 19.7% 3 Japan Exchange Group 5,197 4,602 12.9% 4 Shanghai SE 4,419 3,930 12.4% 5 NYSE Euronext (Europe) 3,719 3,354 10.9% 6 London Stock Exchange Group 3,549 3,638 -2.4% 7 Hong Kong Exchanges & Clearing 3,505 3,024 15.9% 8 Shenzhen Stock Exchange 3,412 3,095 10.3% 9 TMX Group 2,129 1,767 20.5% 10 BSE India Ltd. 1,878 1,433 31.1% Note: LSE figure as at end February 2017 (latest available WFE figure) 14 2017 www.steppespartners.com
Financial Service Companies by Sector (by market value) Public financial services companies make up approximately 10% of the overall value of the global public equity markets. US $ Billion 4,500.00 4,223.12 4,000.00 3,500.00 2,903.53 3,000.00 2,500.00 2,000.00 1,500.00 859.87 1,000.00 717.48 706.40 500.00 273.26 0.00 Top 50 All Top 50 Asset Top 50 Banks Top 50 Top 50 Top 50 Sectors Managers Investment Investment Specialist Banks & Brokers Companies Companies 15 2017 www.steppespartners.com
4. Asset Management “Macro Economic Trends Extremely Favourable for Asset Management Industry” 2017 www.steppespartners.com 16
The Global Asset Management Industry will be worth over USD $100 Trillion by 2020 ▪ Global Investable Funds in the wealth management industry have grown from USD $31 trillion in 2002 to USD $74 trillion in 2014 and are forecast to grow to more than USD $100 trillion by 2020. 7 ▪ Changing markets and investor needs will create significant opportunities for specialist fund managers between now and 2020 (and beyond). ▪ Institutional assets under management in developing markets are projected to grow from USD $5 trillion in 2014 to USD $30 trillion by 2030. ▪ Steppes Partners will expand by acquisition and build a portfolio of specialised alternative investment products that will service targeted large market opportunities. ▪ Global banks have to offload USD $1.4 trillion of non-core assets due to new regulations causing an unprecedented opportunity for specialist companies like Steppes Partners. 2017 www.steppespartners.com 17
Alternative Assets are forecast to grow to US$13.6t - $15.3t by 2020 US $ trillion 18 $15.3t 16 $13.6t 14 $5.0t 12 $4.6t 10 $7.9t $2.9t 8 $2.5t $5.3t $2.9t 6 $2.0t $1.4t 4 $2.5t $7.4t $6.5t $0.8t 2 $1.0t $3.6t $0.5t $2.5t $1.0t 0 2004 2007 2013 2020 (base case) 2020 (high case) Private Equity Assets Real Assets Hedge Funds & Fund of Funds 2017 www.steppespartners.com 18
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