FY12 Results Investor

Presentation

30 August 2012

SFG Australia Limited is a company listed on the Australian Securities Exchange; ASX Code: SFW. It was formerly known as Snowball Group Limited.

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This presentation is for general information purposes only and should be read in conjunction with the Appendix 4E lodged by SFG Australia

Limited (SFGA) with the Australian Securities Exchange (ASX) (ASX: SFW) on 30 August 2012. SFGA was formerly known as Snowball

Group Limited (ASX: SNO). This presentation does not purport to provide recommendations or opinions in relation to specific investments or

securities.

The merger of Shadforth Financial Group Holdings Limited (Shadforth) and SFGA (then Snowball Group Limited), and the relative size of

Shadforth compared to SFGA meant that the merger was treated as a reverse acquisition for accounting purposes. This means that the prior

comparative period results in the statutory income statement reported by SFGA is the statutory income statement results of Shadforth only,

but the statutory balance sheet reported by SFGA is the statutory balance sheet of the Combined Group in both periods. To provide a more

meaningful overview of the Group’s performance, the financial performance of SFGA on a Pro forma basis for the prior comparative period is

reported in the Appendix 4E lodged with the ASX on 30 August 2012, and this presentation primarily illustrates the Pro forma result of the

merged group for the prior comparative period (as if SFGA and Shadforth had been combined for the periods disclosed in this presentation).

This presentation has been prepared in good faith and with reasonable care. Neither SFGA nor any other person makes any representation

or warranty, express or implied, as to the accuracy, reliability, reasonableness or completeness of the contents of this presentation (including

any projections, forecasts, estimates, prospects and returns, and any omissions from this presentation). To the maximum extent permitted by

law, SFGA and its respective officers, employees and advisers disclaim and exclude all liability for any loss or damage (whether or not

foreseeable) suffered or incurred by any person acting on any information (including any projections, forecasts, estimates, prospects and

returns) provided in, or omitted from, this presentation or any other written or oral information provided by or on behalf of SFGA.

It is not intended that this presentation be relied upon and the information in this presentation does not take into account your financial

objectives, situations or needs. Investors should consult with their own legal, tax, business and/or financial advisers in connection with any

investment decision.

All numbers are as at 30 June 2012 unless otherwise stated. Numbers may not add due to rounding.

Important Notice & Disclaimer

2

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Agenda

3

Section Page

FY12 Results overview

Key highlights 4

Benefits from the merger 5

Market conditions 6

Group overview 7

FY12 Results – detailed summary 11

Operational Update & FY13 Strategic Initiatives 20

Summary 29

Appendix 31

FinHQ – diagrammatic overview

Definitions

Reconciliation to Appendix 4E

Segment Net Operating Revenue (1H12 & FY11)

Historical Financial Performance

Revenue drivers

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FY12 Results – Key highlights

• Strong first full year trading period of merged entity

• Successful integration has provided upside to

original merger expectations and is substantially

operationally complete

• Group delivered underlying earnings growth in

tough operating conditions through the

achievement of material merger synergies and

completion of tuck-in acquisitions – announced

today new tuck-in of a small, Perth based general

insurance broking business

• Reported NPAT and EPS affected this year by the

Government's reversal of the Rights to Future

Income (RTFI) legislation2

• Final, fully franked dividend of 1.00c per share

determined, bringing total dividends for the year to

2.00c fully franked

Results FY12

FY11

Pro forma

Net Operating Revenue1 $118.3m 2%

Operating EBITDA $41.9m 7%

Underlying NPAT $28.6m 6%

Reported NPAT2 $11.3m 55%

Reported NPAT excl. RTFI2 $20.6m 70%

Underlying EPS 3.93c 3%

Reported EPS2 1.56c 57%

Reported EPS excl. RTFI2 2.83c 65%

DPS (fully franked) 2.00c 20%

FUA $10.8bn 7%

FUAdmin $9.3bn 5%

FUM $4.4bn 18%

Solid result despite continued tough times

4 Note: Merger of SFGA and Shadforth effective 26 June 2011. 1. Net Operating Revenue differs from Statutory Reporting – see Appendix for reconciliation. 2. The Government has

selectively & retrospectively reversed the RTFI legislation, which has resulted in a reversal of the RTFI benefits booked by the Company to date in FY12, explained above and in Slides

12 and 19. Reported NPAT excl. RTFI and Reported EPS excl. RTFI illustrate the results excluding the impact of RTFI in both FY11 and FY12.

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Benefits from the merger Integration & upgraded synergies on plan

5

• SFGA has achieved $4.4m in synergies in 2H12,

totaling $6.3m for FY12, in line with previous

expectations1

• Main integration objectives complete – on track to

achieve upgraded synergies from the merger of

$10.5m per annum by end FY13, annualised and

gross of integration costs

• Synergies for FY13 largely relate to full year impact

of successful re-negotiation of the Group’s portfolio

administration supply contracts, property savings

already executed and full benefit of rationalisation

of duplicate functions

1H12

achieved

FY13 full year

benefit of

FY12

FY13 synergies

to be achieved

2H12

achieved1

$m

Synergies

stated at

merger

FY11 cost

savings

1H12

synergy

upgrade

$10.5m p.a.

1. 1H12 expectation was to achieve a total of $5.6m in savings and synergies in FY12. The Group has achieved $6.3m, 13% ahead of expectations.

5.0

1.9

1.8

4.4

3.73.4

0.8

Total Synergies & Savings

Synergies & Savings achievement

timetable

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3,500

4,000

4,500

5,000

5,500

ASX All Ordinaries Index daily spot close

1H monthly average

2H monthly average

FY monthly average

Period end spot close

MSCI ACWI ex Australia All Cap (re-based to ASX at 1-Jul-11)

Performance of ASX All Ordinaries – average FY12 10% compared to FY11 average

Market conditions

1. Using actual asset allocation data for total BT FUAdmin as at 30 June 2012. 6

FY12 ASX

Spot11%

on FY11

AS

X A

ll O

rdin

ari

es In

de

x

FY12 ASX

monthly average

10% on FY11

monthly average

The majority of the

Group’s asset based fees

(c. 80% of revenue) are

calculated using monthly

portfolio balances

2H12 ASX

monthly average

1% on 1H12

monthly average

Australian Equities 37%

International Equities 19%

Cash & Fixed Interest 35%

Property & Other Securities 10%

Example of our clients’ asset allocation at 30 June1:

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GROUP OVERVIEW

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Financial Advice Fees

Portfolio Administration Fees

Insurance, Mortgage Broking Fees

Portfolio Management Fees

Stockbroking Fees

Associates, License & Other Fees

Group overview

• Quality, professional, HNW and complementary financial

advice business models – fee for service

• Integrated advice implementation services across the client

value chain (see “FY12 Revenue by service” in below chart)

• Significant scale, footprint and industry presence

• Experienced management team, with strong transaction

execution and integration credentials

• Aligned interests of management, advisers and staff with

shareholders

FY12 Revenue by state FY12 Revenue by service

A unique, quality financial advice & wealth management firm

Unique adviser footprint

FY12 Key metrics

8

$4.4bn

$9.3bn

$10.8bn

FUM FUAdmin FUA

1. As at 20 August 2012.

$28.6m

$118.3m

Underlying NPAT

Op. Revenue

Market

Cap1

$259m VIC

WA

QLD

NSW

TAS

SA

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Family

office

Corporate Services

Affiliate Advice Model

17 practices &

36 advisers nationally

End-to-end business model

9

Portfolio Construction

& Management

B2B Advice

Services Model

Adviser Services,

Platforms & Funds

Group Advice Implementation Services & Corporatised Support Services

HNW Clients Affluent Clients

• Corporate Solutions

• 7 Relationship Mgrs

Dealer groups,

practices & advisers

Leading Professional Advice Model

14 offices nationally

Platform Services

Stockbroking

Insurance Services

‘Best Advice’: Client, Adviser, Practice & Dealer Services IP & best practice

Integrated advice & implementation services across the entire client value chain

1. Includes 4 Accountants from the acquisition of Spencers Accountants and 5 Financial Advisers from the acquisition of Life Financial Services (Ballarat) on 1 June 2012.

• Private client focus

• 1201 employed advisers

& accountants

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Shadforth’s recent advertisement

in Qantas & Virgin inflight

magazines:

Industry leading financial advisers across key metrics

Quality financial advisers

10

Illustrative FUA per Private Client Adviser in End-to-End Model1, Jun-12

• Average FUA per adviser1: $84m

• Average age of advisers: 43 years

• ~70% of Shadforth advisers are Certified Financial Planners –

highest industry qualification available

$m

1. This data (and the chart data) excludes the recent acquisition of Life Financial Services and is estimated based on the End-to-end model’s Servicing Advisers, meaning those who are

servicing existing clients. Most Advisers undertake a combination of roles between attracting new clients and servicing existing clients. This data does not include those Advisers who are

primarily dedicated to attracting new clients.

Each bar represents an individual adviser -

50

100

150

200

250

300

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FY12 RESULTS – DETAILED

SUMMARY

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Financial Performance

$m FY12 FY111 FY111

Net Operating Revenue2 118.3 115.7 2%

Net Operating Expenses2 (76.4) (76.5) (0%)

Operating EBITDA 41.9 39.2 7%

Underlying NPAT 28.6 26.9 6%

One-off items (4.7) (2.2) 114%

Acquisition costs (1.9) (9.2) (79%)

Amortisation expense (4.3) (5.3) (18%)

Notional funding cost (0.5) (0.6) (17%)

Income tax (5.9) 15.8 large

Reported NPAT 11.3 25.4 (55%)

RTFI reversal 9.3 (13.3) large

Reported NPAT excl. RTFI 20.6 12.1 70%

Reported EPS (c) 1.56 3.59 (57%)

Reported EPS excl. RTFI (c) 2.83 1.71 65%

Underlying EPS (c) 3.93 3.80 3%

DPS (c) 2.00 2.50 (20%)

• FY12 Operating EBITDA in line with 1H12 guidance, positively assisted by savings and synergies achieved to date, and acquisitions completed – reinvestment spend commenced during the year

• Underlying NPAT considered a meaningful indicator of the underlying performance and cash generating capability of the Group

• RTFI legislation has been retrospectively and selectively reversed by the Government. Reported NPAT and EPS include the accounting reversal of previously booked tax benefits relating to RTFI – total cash impact is $2.3m, accounted for in the FY12 result (see slide 19 also). “Reported NPAT and EPS excl. RTFI” illustrates the results excluding the (non-operational) impact of RTFI in both FY11 and FY12

• One-off items consist primarily of integration costs, including $2.9m of redundancy expenses and $1.2m relating to the rationalisation of properties, which includes a $0.7m write-off of leasehold improvements on vacated properties. Expect some one-off costs to be incurred in FY13 to complete the integration

• Acquisitions costs relate to acquisitions in the pipeline, executed, and those investigated but discontinued

• Amortisation expense change as a result of the finalisation of the merger Purchase Price Allocation process in 2H12

12 1. Note: FY11 is presented as Pro forma and includes re-classifications between Net Operating Revenue and Expenses in FY11 (which have a net zero impact on Operating EBITDA) –

outlined in Appendix. 2. Net Operating Revenue and Expenses differ from Statutory Reporting – see Appendix for reconciliation.

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3.3

6.9

9.7

3.7

6.6

9.2

0.4

0.9

1.2

0.6

0.9

1.2

0.1

1.9

0.7

0.1

1.8

0.4

FUM FUAdmin FUA FUM FUAdmin FUA

FY11 FY12

End-to-end model Affiliate model B2B Advice Services model

Market conditions continue to be weak – spot close ASX All Ordinaries 11% on FY11

• Group maintained slight positive FUAdmin net inflows in FY12

• Recently launched Strategic Fixed Interest Trust FUM equal to $723m, up 13% from $637m as at 31-Dec-11

FUMA: Clients' funds summary

$4.4bn

$9.3bn

$10.8bn

$3.7bn

$9.8bn

$11.6bn

18%

7%

5%

13

Launched

upgraded MPS

& DPU Service

in Jul-12, on

Colonial

platform

Developed the

Mosaic Strategic

Cash Plus Trust

for launch to

clients in late

2012

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87% of the Group’s Net Operating Revenue is generated directly or indirectly by the End-to-end model

$m

End-to-end

model

Affiliate

model

B2B Advice

Services

model FY12 Total

% of Net

Operating

Revenue

Financial Advice Fees (relates to FUA) 58.1 2.0 - 60.1 51%

Insurance, Mortgage Broking Fees 13.8 0.6 - 14.4 12%

Portfolio Administration Fees (FUAdmin) 24.3 4.3 5.2 33.8 29%

Portfolio Management Fees (FUM) 4.2 1.3 0.3 5.7 5%

Stockbroking Fees 2.2 - - 2.2 2%

Accounting, Associates, License & Other Fees 0.81 0.32 0.9 2.0 2%

Net Operating Revenue 103.3 8.5 6.4 118.3 100%

% of Net Operating Revenue 87% 7% 5% 100%

Segment Net Operating Revenue

14 1. Includes $0.3m of revenue from expense recharges not recognised in FY11 (FY11 treatment netted this revenue off against related expenses, with a net zero impact on Operating

EBITDA). 2. Includes $0.3m of revenue from expense recharges not recognised in FY11 (FY11 treatment netted this revenue off against related expenses, with a net zero impact on

Operating EBITDA).

Includes $0.5m of Accounting

revenue from Jeena and

Spencers Accountants

acquisitions during FY12

1H12 and FY11 Segment Net Operating Revenue

results have been re-classified to be comparable

with the accounting treatment of the FY12 results

(and future results) – refer Appendix

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Operating EBITDA

15

$m

6.8%

Solid result in tough period – opportune time to have bedded down the merger

Organic Inorganic

6 month impact –

net full year impact

included in synergy

expectation

Net organic impact

$2.1m, 5.4%

39.2

41.9

(4.2)

2.5

3.8 0.5

FY11 Operating

EBITDA

Organic

contribution (ex synergies)

Revenue

synergies

Expense

savings & synergies

Inorganic

contribution

FY12 Operating

EBITDA

FY13 will include:

normal factors of net new

growth in clients & impact

of markets

full year impact of FY12

acquisitions & synergies

achieved

benefit of FY13 synergies

& integration costs (not

included in Op. EBITDA)

part year impact of any

mergers or acquisitions

completed, such as

Parkside announced today

▬ normal expense base

increases

▬ FY12 & FY13 reinvestment

& spend on developing

new capabilities

▬ some ongoing & one-off

costs associated with the

implementation of the

regulatory reforms

Impacted by lower

revenue largely due to

markets, and some

increase in cost base

and reinvestment

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Impact of acquisitions

Net Operating Revenue

1. Note: Includes minor risk fees also associated with acquisitions.

Note: FY11 Net Operating Revenue has been re-stated to exclude Mosaic Portfolio Advisers and Stockbroking expense recovery income. See Appendix for reconciliation. 16

$m

2.2%

Inorganic impact 2.1% Organic impact 0.1%

1

Overall revenue impacted by weak conditions, positively assisted by acquisitions

Organic Inorganic

Assisted by new Fixed

Interest Trust, offset

by markets and some

negative impact from

fund reorganisation

Consistent with

market impact

on FUAdmin

Decrease in monthly

average FUA balances,

primarily due to market

movement

115.7

118.3

(2.5)

2.5

(0.4)

0.70.3

(0.5)

1.50.4

0.5

FY11 Net Operating Revenue

Financial Advice Fees

Portfolio Admin Fees - revenue synergy

Portfolio Admin Fees

- other

Insurance & Mortgage Broking

Fees

Portfolio Mgmt Fees

Stockbroking & Others

Fees

Financial Advice Fees

Portfolio Admin Fees

Accounting fees

FY12 Net Operating Revenue

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76.5 76.4

(3.8)

1.00.8

1.9

FY11 Net Operating Expenses

Savings & Synergies

Increase in personnel

expenses: new hires, CPI increases

Occupancy, IT, Mktg, Other

Contribution from acquisitions

FY12 Net Operating Expenses

FY12 achievement of savings & synergies reduced expense base by 5%, offset by

some increase in operating base & reinvestment as noted in 1H12 result

Net Operating Expenses

Note: FY11 Net Operating Expenses have been re-stated to exclude expense recovery expense items of Mosaic Portfolio Advisers and Stockbroking. See Appendix for reconciliation. 17

0.1%

$m

Organic impact 2.6% 2.5%

Organic Inorganic

Includes operating costs associated with

integration (‘duplicate’ leases, expect out

in FY13; IT support outsourcing

arrangements) and business reinvestment

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Underlying NPAT, EPS & DPS

Underlying NPAT

Final dividend determined to be 1.00c per share – total FY12 payout ratio of 51%

Underlying EPS DPS

(fully franked)

18

6% 3%

Payout at lower end of guidance of 50 – 70% of Underlying NPAT takes into account the Group’s acquisition strategy

(having paid net $7.5m in cash consideration for acquisitions and deferred payments during the year); reversal of the

RTFI legislation ($2.3m cash impact); and the proposed capital adequacy regime for Responsible Entities (requiring

in excess of $5m in November 2012)

20%

$m c c

2.50

2.00

FY11 FY12

26.9

28.6

FY11 FY12

3.803.93

FY11 FY12

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Cash Flows & Balance Sheet

$m

FY12 Opening cash balance 33.0

Operating cash flows (incl. one-offs, excl. tax) 36.1

Investing activities (incl. acquisitions) (8.9)

Financing activities (incl. repayment of bank

debt and dividends) (27.6)

Tax paid (13.4)

FY12 Closing cash balance 19.21

Balance Sheet, $m FY12

Cash 19.21

Other Current Assets 16.5

Total Assets 206.6

Current Liabilities 33.5

Total Liabilities 54.6

Net Assets 152.0

• The reversal of the RTFI legislation will have a total

cash flow implication of $2.3m, being cash refunds

and offsets received to date, expected to be repaid

to the ATO

• $13.7m of bank debt repaid during the year and

$7.5m paid as consideration for acquisitions (net of

cash received on acquisition) and deferred

payments

• Group has net cash balance sufficient to cover

pending dividend of $7.3m, RTFI reversal, and

increased regulatory capital of over $5m in

November 2012

• 1x Operating EBITDA debt facility available to fund

future acquisitions

Strong cash flows from operations – no net debt

19 1. Including $2.4m in cash held on trust for clients.

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OPERATIONAL UPDATE & FY13

STRATEGIC INITIATIVES

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SFG Australia – group level update

21

FY12 Achievements

FY13 Initiatives

• Continue M&A and complementary acquisition strategy – announced today tuck-

in acquisition of general insurance broker, Parkside Insurance Brokers, based in Perth

• Oversee implementation of the regulatory reform responses once detail / guidance

known

• Disciplined investment in IT continuing in FY13 – progressive migration to Cloud

based technology, in conjunction with adviser software tools upgrade, web platform

upgrade, and incorporation and launch of FinHQ

• Group level integration complete

• Continued to further enhance and corporatise online back office services

• Well prepared with strategic responses to regulatory reform – await detailed

regulatory guidance for 1 July 2013 main implementation date (see slide 27)

• Proactive approach to sourcing quality, strategic, value accretive partners

consistent with acquisition strategy – acquired tuck-ins Jeena, LFS Financial Services

(Ballarat) and Spencers Accountants

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Shadforth & Outlook

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FY12 Achievements

FY13 Initiatives

• Launch of enhanced products and services to advisers and clients in 1H13,

including the MPS and DPU Service (see slide 26), FinHQ (see slide 24), new Mosaic

Strategic Cash Plus Trust and enhanced Mosaic active funds (see slide 25)

• Beginning migration of clients to more contemporary offers – this will progressively

deliver benefits to clients and revenue uplift to Shadforth over the next two years

• Scaled advice and corporate super opportunity – Outlook to implement tactical

initiatives once regulatory reforms and guidance known

• Completed front office integration (some benefits still to come in FY13)

• Refined and re-targeted business models to focus on core client bases

• Shadforth: High net worth clients

• Outlook: Corporate solutions and scaled advice clients

• Developed enhanced segmented service propositions (and re-segmented clients)

• Completed the local integration of the tuck-in acquisitions

End-to-end Model

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Cortex, Western Pacific & Actuate

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FY12 Achievements

FY13 Initiatives

• Cortex: Continue to enhance existing adviser support services, including further

adviser software releases; rollout of Automated Advice Precedent Library to all

business models; supporting the client migration; and provision of technical, economic

and investment content for Group wide marketing initiatives, including social media

• Western Pacific: Rejuvenation of this potentially significant quality advice community

continues

• Actuate: Embarking on more expansive independent B2B offer – expect formal

launch 2H13

• Continuing to implement ‘Cortex Project Best Advice’ – FY12 enhancements:

• Extended online investment research, technical, tax and strategy support to

Shadforth, Outlook and Western Pacific

• Aligned approved product list approach and investment philosophies

• Consistent brand family introduced and commenced marketing enhancement

• Designed and launched end-to-end framework for MPS and DPU solutions

• Actuate: Extended financial advice business partnership with QTMB

Affiliate Model B2B Services Model

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FinHQ & platform strategy

24

FY12 Achievements

FY13 Initiatives

• Rollout of upgraded MPS and DPU services to all advice businesses (see slide 26)

• Over FY13 – FY15, FinHQ will progressively become a consolidated view of a

client’s portfolio and effectively an online marketplace for other financial

products and services

• FinHQ Phase 1 launch of consolidated client reporting in Sep-12; Phase 2 launch of

online, direct broking scheduled for Oct-12 (broking execution supported by UBS)

• Re-branding existing main platforms to ‘FinHQ’ by Nov-12

• Introducing ‘FinHQ’: web-based portal for consolidated client reporting, sourcing

data and leveraging technology from SFGA’s existing main platforms. Serves as

vehicle for future integration and development of the Group’s platform strategy (see

slide 32)

• Renewed key platform contracts post merger and achieved margin uplift (identified

as revenue synergy) – contracts are FoFA compliant (assuming current interpretation)

• Appointed Colonial / Symetry Endeavour as administration provider for enhanced

Group portfolio services (MPS, DPU)

Portfolio Administration

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Mosaic Portfolio Advisers

25

FY12 Achievements

FY13 Initiatives

• Consolidating the custody and funds administration function to one service

provider in 1H13

• Launching the Mosaic Strategic Cash Plus Trust to clients in late 2012, using

Westpac and Commonwealth Bank cash account products

• Refining and rationalising fund offering (including relinquishing RE’ship of some

small scale funds), in line with the needs of SFGA’s advice businesses – some overall

reduction in revenue margins from change in business mix expected

• Combined and improved governance and portfolio management approaches

• Strengthened in-house administration capability and scalability of RE function.

Became RE of the four low cost, highly diversified, quant based Strategic Trusts in

Nov-11 – FY12 FUM in Australian Equity: $1.3bn; International Equity: $0.7bn; Global

Property: $0.3bn; and Fixed Interest: $0.7bn, which was launched in 2011

• Added Mosaic funds to all of the Group’s main platforms

• Further developed MPS and DPU portfolio construction for upgraded launch

Portfolio Construction & Management

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Managed Account Service, with client discretion

• A client’s adviser and Mosaic Portfolio Services

(the Operator of the Service) builds and

actively manages their portfolio, providing

recommended changes periodically, which the

client can choose whether to accept or not

• Similar portfolio construction and management,

where the client retains control

Dynamic Portfolio Update Service

Managed Discretionary Account Service

• A client gives permission for their adviser and

Mosaic Portfolio Services (the Operator of the

Service) to build and actively manage their

portfolio, within parameters set by their adviser

• Portfolio can include managed funds, direct

securities and other investments, and provides

the client with portfolio see-through

Managed Portfolio Service

Innovative, robust solutions that give clients & advisers more options to simplify &

implement disciplined portfolio management

MPS & DPU Services

26

Individual

financial

goals,

objectives

& outcomes

STRATEGY Cash flow, tax, strategic

asset allocation & risk

advice; ongoing review

IMPLEMENTATION Portfolio construction,

ongoing review &

management

A LA CARTE

Typically ad hoc

review of a

client’s portfolio

done by the

adviser

CLIENT ADVISER

TRADITIONAL

METHOD For clients: tailored, timely,

transparent, efficient,

sophisticated and robust

portfolios – fee-based

For advisers: contemporary,

efficient, cost effective,

productivity enhancing

For SFGA: contemporary,

scalable, robust and effective

client and adviser solutions

PROFESSIONAL

PORTFOLIO

MANAGEMENT

TOOLS

Wrap

Platform

CONTEMPORARY

SOLUTIONS

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Scaled Advice

Very recently released draft

policy statement is

perplexing. Wait and see

approach to what is a large

opportunity for SFGA

Corporate

Superannuation, Group

Insurance & Insurance

inside super

Substantial legislation has now been passed – await Regulatory & Guidance Statements

Well positioned on reforms

27

Business model adjustments

likely when exact changes are

known, especially detail of

MySuper

Conflicted remuneration

structures

Renewal or Opt-in & Fee

Disclosure Statements

Act in the client’s best

interests

We do this now; impact of

some one-off implementation

costs, then small increased

compliance administration

spend

Strong client relationships

and grandfathering provide

strong protection against a

theoretical threat

Prepared – need to see

ASIC’s guidance on FY14 &

beyond to determine if any

future adjustments. Ready to

apply to be trustee / operator

of platforms if required

― ―

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Share register – escrow released

• Register now effectively free from escrow – less

than 0.01% of the register is currently escrowed,

pursuant to the Employee Share Plan

• Current market capitalisation equal to $259m,

assuming a share price of 35.5c1

• First tranche of escrowed shares relating to the

merger (172.9m in total) were released on 14 July

2012, in line with escrow terms

• Given the trading experience of the Company’s

shares since the merger, the Board determined to

release the remaining tranche of escrowed shares

early (172.9m in total); to be executed at close of

trading today (30 August 2012)

• Large number of SFGA shareholders are

employees, and the dealing in these shares is

governed by the Company’s Securities Trading

Policy (lodged with ASX) – trading window following

this announcement to be open from 31 August 2012

to 8 January 20133

28

Breakdown of internal & external holders2

(Internal holders being employees of the Company)

Register Composition2

1. As at 20 August 2012. 2. Composed from Top 500 Shareholders, which account for 99.3% of total shares outstanding as at 7 August 2012. 3. Consistent with the Company’s

Securities Trading Policy, and remains at the discretion of the Company.

26%

25%17%

15%

11%

6%0% Shadforth Advisers

HNW / Retail

Board & Management

Institutional

Employees

WPFG Advisers

B2B Relationship

45%

55%

Shares held by external

holders

Shares held by

Employees and subject to the Securities Trading

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SUMMARY

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Summary

30

Leading advice group

• High quality, client focused financial advice group – key differentiators:

• from all larger players: quality of advisers and deep client relationships

• from all smaller players: scale and capability across the value chain

Delivering earnings growth

• Operating EBITDA of $41.9m up 7% and Underlying NPAT of $28.6m up 6%, driven by

achievement of synergies and acquisitions completed

• Upgraded synergies on track: $10.5m annualised in FY13, gross of integration costs

Acquisition capacity

• Cash capacity: net non-leveraged balance sheet and strong operating cash flows –

debt facility in place at 1x Operating EBITDA

• Industry presence, quality, national management team key to attracting right partners

Investing in our people &

business

• Well prepared for reforms – awaiting detailed guidance to implement optimal solutions

• Responding to changing client needs, reinvesting in our client offers and experience

• Experienced management team in place to drive growth through the cycle

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APPENDIX

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On-line, best-of-breed platform offering

32

CL

IEN

TS

A

DV

ISE

RS

Consolidated

Reporting

Tool

Client

Relationship

Management

Tool

CO

NS

OL

IDA

TE

D P

LA

TF

OR

M “

DA

TA

WR

AP

PE

R”

OP

EN

AR

CH

ITE

CT

UR

E

BT Wrap

$5.5bn FUAdmin

Colonial

$1.8bn FUAdmin1

Asgard

$2.0bn FUAdmin

Praemium

$335m FUA

Virtual Wrap of direct securities

UBS

ADVISER

OPTIONS

ADMINISTRATION

PROVIDER INVESTMENTS

FY12 FUAdmin

Direct, online broking back office

Direct securities

Direct shares

Future Services

SFGA earns a fee for packaging or construction services provided.

1. Includes $693m of FUAdmin which relates to advice groups not licensed by SFGA.

Phase 2 Oct-12 launch

www.finhq.com.au

A la carte (Adviser selected from APL)

Multi-sector funds

Single-sector funds

Wide range of direct securities on APL

Wide range of funds,

banking products &

insurance on APL

A la carte

A la carte

PORTFOLIOS

Mosaic constructed & managed portfolios

Managed Portfolio Service

Dynamic Portfolio Update

Platforms provide clients with custody, registry, tax, cash flow & other record keeping, reporting & transaction services; primarily leveraging existing scaled supplier’s technology

Phase 1 launch Sep-12

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Term Definition

pcp Prior corresponding period

FUA Funds under Advice: funds balances upon which the Group derives a share of the advice fee

FUAdmin Funds under Administration (FUAdmin): funds balances upon which the Group derives a share of the

administration margin

FUM Funds under Management: funds balances upon which the Group derives a share of the management margin

FUMA The collective term for Funds under Advice, Administration and Management

Net Operating Revenue Net Operating Revenue comprises Operating Revenue less cost of goods sold type expense items to derive Net

Operating Revenue to the Group. The Appendix 4D reports Operating Revenue

Net Operating Expenses As above, excludes cost of goods sold type expense items

Operating EBITDA Earnings before interest, tax, depreciation and amortisation, before one-off and non-operating items

NPAT Net Profit After Tax

QTMB Queensland’s Mutual Bank

Underlying NPAT or

UNPAT

Underlying Net Profit After Tax. Underlying NPAT excludes amortisation and one-off, non-operational items.

SFGA considers this to be a meaningful indicator of the underlying performance and cash generating capability of

the Group

RTFI Rights to Future Income legislation

Definitions

33

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Reconciliation to Appendix 4E

FY11 $m

Operating Revenue per Appendix 4E (Gross)1 127.3

Less portfolio administration fee 7.5

Less Mosaic expense recoveries 4.0

Less Stockbroking expense recovery 0.1

Net Operating Revenue (per presentation) 115.7

Operating Expenses per Appendix 4E (Gross) (88.1)

Plus portfolio administration fee 7.5

Plus Mosaic expense recoveries 4.0

Plus Stockbroking expense recovery 0.1

Net Operating Expenses (per presentation) (76.5)

FY12 $m

Operating Revenue per Appendix 4E (Gross)1 132.5

Less portfolio administration fee2 6.4

Less Mosaic expense recoveries 7.6

Less Stockbroking expense recovery 0.3

Net Operating Revenue (per presentation) 118.3

Operating Expenses per Appendix 4E (Gross) (90.6)

Plus portfolio administration fee2 6.4

Plus Mosaic expense recoveries 7.6

Plus Stockbroking expense recovery 0.3

Net Operating Expenses (per presentation) (76.4)

34 1. Including Share of Associates Net Profit. 2. Reduction in fees paid to providers reflecting increased Portfolio Administration margin achieved in FY12.

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Segment Net Operating Revenue

$m

End-to-end

adviser model

Affiliate

adviser model

B2B Advice

Services model Total

Change from

reported results

Financial Advice Fees 28.7 1.0 - 29.8

Insurance, Mortgage Broking Fees 7.2 0.3 - 7.5

Portfolio Administration Fees 11.2 2.2 2.5 15.9 (1.3)

Portfolio Management Fees 1.9 0.6 0.1 2.7 1.3

Stockbroking Fees 1.1 0.0 - 1.1

Accounting, Associates, License & Other Fees1 0.2 0.1 0.5 0.8

Net Operating Revenue 50.5 4.2 3.2 57.8 -

35

$m

End-to-end

adviser model

Affiliate

adviser model

B2B Advice

Services model Total

Change from

reported results

Financial Advice Fees 58.7 2.4 - 61.1

Insurance, Mortgage Broking Fees 13.1 0.6 - 13.6

Portfolio Administration Fee 22.0 5.1 4.3 31.3

Portfolio Management Fees 3.3 1.9 0.3 5.4 (1.4)

Stockbroking Fees 2.7 - - 2.7 (0.1)

Accounting, Associates, License & Other Fees1 0.3 - 1.3 1.6

Net Operating Revenue 100.0 9.9 5.8 115.7 (1.5)

Reclassified 1H12 Results

Reclassified FY11 Results (to be directly comparable with FY12 Results reported in this presentation)

The below reclassifications have no impact on reported Operating EBITDA in each period (as there is

a corresponding impact on Net Operating Expenses or movement between fee types)

1. There has been some re-classification between models post a management review.

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Historical Financial Performance

$m FY12

FY11

Pro forma

FY11

Pro forma

Net Operating Revenue

Financial Advice Fees 60.1 61.1 -1.7%

Insurance & Mortgage Broking Fees 14.4 13.6 5.7%

Portfolio Administration Fees 33.8 31.3 8.0%

Portfolio Management Fees 5.7 5.4 6.0%

Stockbroking Fees 2.2 2.7 -17.4%

Accounting, Associates, License and Other fees 2.0 1.6 28.8%

Total Net Operating Revenue (incl. Associates) 118.3 115.7 2.2%

Net Operating Expenses

Personnel expenses (54.4) (55.8) (2.4%)

Occupancy expenses (6.1) (5.6) 9.6%

Advertising & marketing expenses (1.0) (1.0) (1.7%)

Professional fees (4.8) (4.6) 4.6%

Travel & entertainment expenses (1.2) (1.4) (14.9%)

IT & communications expenses (3.3) (2.6) 24.6%

Other expenses (5.6) (5.6) 1.6%

Total Net Operating Expenses (76.4) (76.5) (0.1%)

Operating EBITDA 41.9 39.2 6.8%

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Financial

Advice

Revenue

FY12:

$60.1m

Ongoing Fees

– 100%

retained by

group

Core Clients

Corporate

Super F

U

A

>88% of FUA

$10.8bn of

FUA

Net flows

Market

impact

Outflows

Inflows

Asset

Allocation

Property

Securities

Equities

<12% of FUA

Affiliate

adviser model

End-to-end model

– $9.2bn

B2B Services

model

Ongoing Fees

– 20%1 margin

retained by

SFGA $1.2bn of FUA

$0.4bn of FUA

License

Fees (% of

revenue)

FY12:

$0.23m

Financial

advice

revenue of

B2B partner

New

clients

Existing

clients

One-off Fees

(End-to-end

model – 100%

retained)

Statement of

Advice Fees

Other Plan Fees

Fixed

Interest

Cash

One-off Fees –

Affiliate model

(20%1 retained)

One-off

Financial

Advice Fees

Ongoing

Financial

Advice Fees

Revenue drivers – Advice fees

37 1. Subject to incentive arrangements agreed with Western Pacific, where growth in revenue above a certain benchmark attracts a 10% dealer margin on revenue growth, maintaining

the 20% dealer margin on the benchmark revenue.

<10%

>90%

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Portfolio

Admin

Fees

Net

flows

Market

impact

F

U

A

D

M

I

N

$6.6bn

$9.3bn of

FUAdmin

End -to-end adviser

model – earn 100%

of share of margin

B2B Services model

– share income

earned

$1.8bn

Affiliate adviser

model – earn 100%

of share of margin FY12:

$33.8m $0.9bn

Portfolio Administration Fees

Portfolio

Mgmt

Fees

F

U

M

$3.7bn

$4.4bn of

FUM

End-to-end

adviser model

B2B Services

model

$0.1bn

Affiliate adviser

model FY12:

$5.7m $0.6bn

Portfolio Management Fees

Net flows

Market

impact

Portfolio

construction

Asset

allocation

Multi- &

Single-sector

funds

$0.6bn

Strategic

Trusts

$3.0bn

Other funds

$0.7bn

38

Revenue drivers – FUAdmin & FUM

Mosaic

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SFG Australia Limited

Contact details:

Tony Fenning

Managing Director

Level 18, 50 Bridge Street

Sydney NSW 2000

Telephone: +61 2 9250 1500

Email: Tony.Fenning@sfgaustralia.com.au

Ashleigh Nelson

Investor Relations

Level 18, 50 Bridge Street

Sydney NSW 2000

Telephone: +61 2 9250 1527

Email: Ashleigh.Nelson@sfgaustralia.com.au

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