Yellow Brick Road

Holdings FY 2015 Summary & 2016 Outlook

November 11, 2015

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Executive Summary:

Delivery in FY15, Enhancement in FY16, Position For

Growth

Delivered on our commitment to get to operating breakeven in FY15*

Underpinned by strong execution of our strategies through FY15

Distribution scale – near four fold increase in points of presence off the back of acquisitions

Diversification – six product introductions improved spread of income

Margin – scale from acquisitions improved corporate margin 140% yoy

Brand – acquisition marketing generated 40% increase in leads yoy

Some big changes for FY16 investing to reinforce our business model

Major brand investment – doubling of marketing spend to generate leads and brand uplift

Re-platforming web & lead infrastructure – generating significant uplift in digital yield

Invest in wealth product – Guru, Loan Protect (life insurance) & new investment platform

Leaving Yellow Brick Road uniquely positioned for growth

Home loans – strong growth in mortgage book, driving new customer acquisition

Wealth – diversifying revenues and provides broader customer base for stability

Distribution scale & diversity – true national multi-channel reach

RESI mortgage manager capability – brings manufacturing and credit assessment in house

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* Underlying EBITDA excludes acquisition and integration costs and non cash share expenditure. NB Underlying EBITDA

normalised for 12 months ownership of Vow and Resi is circa $1.7m

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1. Brought Business to

Operating Breakeven in

FY15

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Yellow Brick Road delivered our key commitment of

operating breakeven in FY15

Yellow Brick Road delivered on our key commitment to achieve an operating

breakeven performance in FY15:

Underlying Earnings* Before Interest Tax & Depreciation (EBITDA) of $1.3M**

– Represents an improvement of circa $6.4m compared to ($5.2m) in FY14

A net loss after tax (NPAT) of ($2.5m)

– Represents an improvement of $6.3m compared to ($8.8m) in FY14

Underlying EBITDA excludes & NPAT (IFRS) includes some one off effects

– $3.9m acquisition and integration costs

– Non cash share expense of $4.2m

– Offset by a significant tax benefit of $6.8m

* Underlying EBITDA excludes acquisition and integration costs and non cash share expenditure.

** Underlying EBITDA normalised for 12 months ownership of Vow and Resi is circa $1.7m4

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FY15 financial outcome driven by our core strategies

5

0.99

0.700.57 0.29

-0.36-0.58 -1.09

-0.17 1.28

-5.14

6.07

FY 2014 Acquisitions(Vow and Resi)

Growth(Lending)

Scale(Lending)

Growth(Wealth & GI)

Growth(New Branches)

Personnel Costs Administration,Premises &

CommunicationCosts

Marketing Costs Other Costs FY 2015

YBR (GROUP) - Underlying EBITDA* - FY 2014 vs FY 2015 ($mil)

+ 6.42

* Underlying EBITDA excludes acquisition and integration costs and non cash share expenditure.

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Acquired 7- 11x scale in lending and grew organically

on normalised basis by 42% versus FY14

0.3 0.4 0.5 0.7 0.7 0.7

4.3

6.4

H1FY12

H2FY12

H1FY13

H2FY13

H1FY14

H2FY14

H1FY15

H2FY15

MORTGAGE – SETTLEMENTS ($B)

0.6 0.9 1.3 1.8 2.2 2.7

27.6 30.8

H1FY12

H2FY12

H1FY13

H2FY13

H1FY14

H2FY14

H1FY15

H2FY15

MORTGAGE - LOAN BOOK UNDER ADVICE ($B)

Acquired Scale 11x

2.2 2.3 2.6

3.0

4.1

4.8

6.2 6.4

H1 FY12 H1 FY13 H1 FY14 H1 FY15

(Normalised) MORTGAGE – SETTLEMENTS ($B)

Acquired Scale 7 x

FY14 $8.9B

FY15 $12.6B

+42%

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Strong organic growth in wealth yielding an increase of

57% in FUM and 94% in insurance book

182 192 243 293 339 357 32 84

137 134

185

311

H1 FY13 H1 FY14 H1 FY15

TOTAL FUNDS UNDER MANAGEMENT ($M)

FUM - Smarter Money Investments* FUM - Platforms

4.6

7.1

8.3

FY 2013 FY 2014 FY 2015

WEALTH REVENUE ($M)

1.4 2.3

3.7

4.8

6.9

9.3

H1 FY13 H2 FY13 H1 FY14 H2 FY14 H1 FY15 H2 FY15

PERSONALISED LIFE INSURANCE PREMIUMS ($M)

FY14 $4.8B

FY15 $9.3B

+94%

FY14 $427M

FY15 $668M

+57%

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* Smarter Money Investments is 50% joint venture. Chart represents 100% of FUM.

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2. Carried Momentum into

Q1 2016

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Q1 FY16 delivered 42% increase in settlements– off

huge 71% increase in YBR settlements

1,777

2,3062,077

2,737 2,875 3,074 3,0753,381

4,088

Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16

(Normalised) MORTGAGE (GROUP) – SETTLEMENTS ($B)

346395

338405 399

542498

628681

Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16

MORTGAGE (YBR) – SETTLEMENTS ($B)

2.0 2.2 2.4 2.7

25.4 27.8 28.1

30.8 31.7

Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16

MORTGAGE (GROUP) - LOAN BOOK ($B)

+42% +71%

19.8 20.5 21.1 22.2

25.4 27.6 28.1

30.8 31.7

Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16

(Normalised) MORTGAGE (GROUP) - LOAN BOOK ($B)

+25%

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478

592 626 657694

738790

Q2 FY14 Q3 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16

POP Agreements in Place*

1.4

2.33.0

3.74.3

4.8

6.6 6.8

8.2

9.3 9.4

Q22013

Q42013

Q12014

Q22014

Q32014

Q42014

Q12015

Q22015

Q32015

Q42015

Q12016

PUM* (GROUP) ($M)

And a strong 42% increase in both FUM & PUM while

network growth continued apace

321 381

409 427 477

524 594

668 676

Q1 FY14Q2 FY14Q3 FY14Q4 FY14Q1 FY15Q2 FY15Q3 FY15Q4 FY15Q1 FY16

FUM* (GROUP) ($M)

+42%

+26%

+42%

* PUM = Premium Under Management; FUM = Funds Under Management; POP = Points of Purchase

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3. 2016 Investment

in Long-term Growth

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4. Client Acquisition

Major investment in client

acquisition & capability

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Doubling of advertising investment to drive brand

equity, awareness and leads

2.5 x Brand Exposure

Significant increase in television investment and presence across FY16

$5M of media support in FY16 at best in market rates, gives 10 months coverage

Celebrity Apprentice content to value of $17M in H1 16 – leveraged across Q2

To drive a significant increase in brand strength and double brand leverage

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Old Manual Manual check

Manual load

Excl. branch enquiry

2 hour delay / 80%

New STP Auto allocate

Auto load

Incl branch enquiries

Instant delivery / 100%

Re-platforming YBR web & lead infrastructure,

increasing conversion of visitors to leads & leads to

applications

New website in Kentico ecommerce platform

New SEO informed design & content – pilot driving multiples of former lead flow

Tracks consumer behaviour across digital channels web, email, mobile

Integrated insights on propensity to act

Informs & automates targeting/ timing and messaging

Automation and control of back-office lead platform

Straight through processing of leads – more timely response & reduced cost

New tracking and reporting of customer branch enquiries ~ 20% of leads

4.4X

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YBR marketing investment paying dividends with new

prospect introductions up threefold in the year to date

Nov-14 Dec-14 Jan-15 Feb-15 Mar-15 Apr-15 May-15 Jun-15 Jul-15 Aug-15 Sep-15 Oct-15

GrowthInvestment

3 x leads(avg. month)

FY14/ FY15 +185%

Lending Pipeline Up 43%

Monthly Lead Flow To YBR branches

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5. Wealth Product

Enhancement

A wealth offering tailored for our

mortgage client base

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Guru is at the vanguard of ROBO advice targeting the

“other 80%” and off to a flying start.

Prepositions Advice for 80% of Population Without a Plan

Market is concentrated on population in pre-retiree and retiree phase

Guru targets mass market – middle class families YBR serves with home loans

Addresses concerns about accessibility, outcomes, cost and control

Empowers them to act by showing enormous benefits of a few tangible actions

National Launch in Celebrity Apprentice

Over 300 leads from first night

Early feedback ~80% proceeding to meeting >20% proceeding with advice/loan

Heavy support through Q3 “New year plan” drive

Like a seminar (without product placement)

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YBR will enter the mortgage life insurance market

with a breakthrough branded product in second

quarter FY16

Mortgage life insurance is a life product offered in mortgage sales process

Enhances our ability to convert mortgage clients to wealth

Current offerings have limited margin and risks to client experience

YBR has agreed terms with a major global provider & will launch Q2

Product designed to YBR’s needs and branding offering Up-front underwriting for better client experience

Competitive affordable pricing for our target market

A direct relationship with insurer which improves margins to YBR18

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Re-platformed investment offering to accelerate uptake

of wealth across branches & improve margin

Reduces admin. burden for branches providing wealth advice by 400 hours or $40k

p.a.

One platform to cover 95% of needs vs. 3 at present

Automates & centralises tasks currently managed in branch

Saves ~ 4 hrs p.a. / client or 400 hours p.a. for 100 clients

Ramps up YBR returns from wealth

Accelerate uptake of wealth - 1/3 branches embedded, this will address next 1/3

Added margins from SMAs

Centralised portfolio management reduces risk

Client access and analytical tools will increase engagement

My YBR Account covers investment, super and insurances Low cost, high performance SMAs for the “other 80%”

My YBR Account Cash, invest, super, ins

Two series of SMAs

Guru integration

Simple to complex

Smarter Money series

Active asset allocation

Centrally managed

No SOA for rebalancing

Sophisticated res. tools

My YBR SMAs

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Direct to consumer investment offering under

development

& personal lending acquisitions in due dilligence

Building direct consumer proposition in wealth

New My YBR Account platform back end is direct ready

Guru plugs into My YBR Account

“Money Manager” cash flow tool to launch Q3

Working on buy and adapt option for consumer front end

Personal lending acquisition opportunities in due diligence

Additional business line for network & direct potential

Securitisation funding capability will support

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YBR has a securitisation platform two years in

the making & will go to market when

conditions right

Much of required capability & structure built in FY14 and FY15

RESI capabilities including credit and customer service teams in place

Legal structures and appropriate funding entity in place

Leading providers appointed for mortgage servicing, trustee & legal counsel

Servicing platform customisation & reporting in final stages of development

Launch now targeted for 3rd quarter FY2016

We have paused this activity for a quarter given recent market volatility

In negotiation with 4 funding partners

Pending appropriate conditions considering Q3 launch21

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