Results for the Half Year · Strategy working – – – FOCUS ON HNW INVESTORS IS DELIVERING PLATFORM MARKET ... Total revenue 9,583 8,042 1,541 19.2% Total expenses (11,107) (11,013)

Results for the Half YearEnding 31 December 2019

Important information

Forward looking statements

No investment advice

Disclaimer

Presenters and agenda

Will Davidson Bruce MacDougall

01 02 03 04 05 06

Anthony Wamsteker

Highlights

Business and financial highlights

FUND FLOWS LAGGING

MARGINS MAINTAINED 21%

EARNINGS IMPROVING

49%

$8.76 billion

20%

EXPENSES UNDER

CONTROL

Strategy working

–

–

–

FOCUS ON HNW INVESTORS

IS DELIVERING

PLATFORM MARKET

CONTINUES TO EVOLVE

–

–now $2 trillion

–

POWERWRAP KEY

FINANCIAL MEASURES

IMPROVING IN LINE

WITH STRATEGY

Financial Performance

FUA growing

1H20 1H19 Change % Change

FUA (EOP)

Net FUA Flows

FUA up 20%

6.87.3

8.8

0

1

2

3

4

5

6

7

8

9

10

1H18 1H19 1H20

FUA

20%

Net flows lower

Platform revenue growing

6.9

7.7

9.4

0

1

2

3

4

5

6

7

8

9

10

1H18 1H19 1H20

Platform revenue Platform margins on Funds Under Administration (FUA)

–

–

–

2322

23

0

5

10

15

20

25

1H18 1H19 1H20

21%

Revenue per account increasing

$4,346

Revenue from various

sources growing as

sophistication of

accounts increases

$2 million

Low value accounts

were also closed

$0

$500

$1,000

$1,500

$2,000

$2,500

$3,000

$3,500

$4,000

$4,500

$5,000

1H18 1H19 1H20

Revenue per account

Earnings improving

Improvement lower than EBITDA due to

–

–

Improvement due to

–

–

–

-2.73-2.97

-1.52

-4

-3

-2

-1

0

1H18 1H19 1H20

Underlying EBITDA excluding share-based

payments*

Underlying net loss after tax

-1.30

-2.95

-2.25

-4

-3

-2

-1

0

1H18 1H19 1H20

Financial metrics improving at all levels

Platform revenue up 21%

Expenses under control

Underlying earnings improving

Prior half year comparison ($000)

1HFY20 1HFY19 Variance % Change

Total revenue 9,583 8,042 1,541 19.2%

Total expenses (11,107) (11,013) (94) 0.9%

EBITDA (before share based payments) (1,524) (2,971) 1,447 (48.7%)

EBITDA (1,690) (3,735) 2,045 (54.8%)

EBIT (2,261) (3,831) 1,570 (41.0%)

Loss before income tax (2,247) (3,717) 1,470 (39.5%)

Loss after income tax (2,247) (2,949) 702 (23.8%)

for the half year ended 31 December 2019

Delivering on Prospectus financial results

Revenue

Expenses

EBITDA

EBIT

IPO forecast compared to actuals ($000)

Adjusted* IPO

1HFY20

Actual

1HFY20Variance % Change

Total revenue 9,080 9,583 503 5.5%

Total expenses (11,546) (11,107) 439 (3.8%)

EBITDA (before share based payments) (2,466) (1,524) 942 (38.2%)

EBITDA (2,686) (1,690) 996 (37.1%)

EBIT (3,379) (2,261) 1,118 (33.1%)



AHEAD ON

Progress towards profitability

Reducing gap between revenue and expenses

Expenses under control

Low increase in staff expenses

–

–

–

Direct (supplier) expenses reduced 12%

–

–

–

Operating (other) expenses contained

–

$0

$2,000

$4,000

$6,000

$8,000

$10,000

$12,000

HY18 HY19 HY20

Revenue and expenses

Summary

– revenue growing

faster than expenses

– 49% improvement

in underlying EBITDA

- up 21%

- flat

- now $4,346

- up 20%

Business Update

Platform continues to attract HNW clients

December 2019

Continually increasing breadth of product range

and depth of asset classes

Specialisation in alternative assets

Findings from Powerwrap/Investment Trends

HNW Investor Report confirm their importance

30% of those surveyed already invest in or intend

to invest in alternative assets in the coming year

14% of Powerwrap portfolios are allocated

to alternative assets (Wholesale managed funds)

International and fixed interest assets represent

a further collective 17%

Client pipeline positive

Added nine new groups

to the platform

Technology improvements

Powerwrap Order Pad

Enabling the placement of investment

orders and trades from one place

Integrated Asset Library

Intermediary desk order integration

STP nominated bank accounts

Corporate Actions notifications

Industry Growth

Challenger platforms continue to take market share

Share of large financial

institutions continues

to decline

Share of challenger

platforms continues

to rise

Flow-on effects of

banking royal commission

still being felt

Opportunity for

Powerwrap

85%

83% 83%

14.8%

16.7%17.1%

70%

75%

80%

85%

90%

Sep 17 Sep 18 Sep 19

Advisers continuing to leave large financial institutions

Opportunity for Powerwrap

3,500

4,000

4,500

5,000

5,500

6,000

6,500

7,000

7,500

8,000

8,500

9,000

9,500

Dec 17 Dec 18 Dec 19

No

. o

f ad

vis

ers

Market Share (RHS)

HNW investor numbers continue to grow

Now control

$2 trillion in assets

Powerwrap well

positioned to service this

market particularly with

our HIN based solution

Typically use a wide

range of asset classes

0

100

200

300

400

500

600

2008 2009 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019

Outlook

Outlook

Industry trends

continue to confirm

our strategy and model

Financial

metrics improving

at all levels

H2 expected to produce

solid new flows

FY20 financial

performance on track

minus $3.9 million

$19.4m $9.8b

Questions

Appendix 1

for the half year ended 31 December 2019

Prior half year comparison ($000)

1HFY20 1HFY19 Variance % Change

Total revenue 9,583 8,042 1,541 19.2%

Total expenses (11,107) (10,803) (304) 2.8%

EBITDA (before share based payments) (1,524) (2,761) 1,237 (44.8%)

EBITDA (1,690) (3,525) 1,835 (52.1%)

EBIT (2,261) (3,621) 1,360 (37.6%)



Appendix 2

1HFY20 1HFY19

Statutory EBITDA before share based payments (1,524) (2,761)

Underlying EBITDA before share based payments (1,524) (2,971)

Statutory NPAT (2,247) (2,747)

Underlying NPAT (2,247) (2,949)

ThankYou

Documents

Results for the Half Year · Strategy working – – – FOCUS ON HNW INVESTORS IS DELIVERING PLATFORM MARKET ... Total revenue 9,583 8,042 1,541 19.2% Total expenses (11,107) (11,013)