Annual General Meeting 29 November 2012

AGM November 2012

Welcome

Board Members:

Rick Nelson - Chairperson
Tony Robinson – Managing Director
Noel Griffin – Non-Executive Director
Chris Castles – Non-Executive Director
Matthew Kidman – Non-Executive Director
Stephen Maitland – Non-Executive Director
Ian Magee – Company Secretary & CFO

Senior Executives:

Peter Walther – Professional Investment Services CEO
Robert Dodd – Centrepoint Alliance Premium Funding CEO

AGM November 2012

Agenda

Aspiration
Business structure
Financial performance
Other key issues
Future

AGM November 2012

Aspiration

Create a successful specialist financial services business
Ensure each of the components of the CAF group are successful and competitive in their own right including:
Advice services businesses which are viewed as providers of choice and have key strategic positions in their markets
Businesses which specialise in segments of markets where they can be leading service providers, for example premium funding
Create an organisation structure and environment which leverages the skill, knowledge and ability of the people working with and in CAF

AGM November 2012

Business Structure

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CAF
Core
Business
Centrepoint
Centrepoint
Premium
Wealth
Funding
Non-Core
Advisor Product Malaysia
Services & Platform
Singapore
NZ
Nil carrying value
PIS AAP
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AGM November 2012

Business Structure

Businesses

CPW | Centrepoint Wealth: largest non-institutional advice business
PIS | Professional Investment Services: AFSL holder providing services to approximately 650 financial planners
AAP | Associated Advisory Practices: Non AFSL holder providing services to approximately 170 licensees covering approximately 650 financial planners
IDL | Investment Diversity: Platform service provider (White Label)
Ventura/Allstar | Fund Manager – Ventura multimanager and Allstar sector specific
CAPF | Centrepoint Alliance Premium Funding

In the whole group, approximately $9 billion of FUA/FUM and over $300 million in premium funding loans

AGM November 2012

Financial Performance – FY 2011/12

FY 2011/12 result includes significant costs associated with legacy PIS
Claims issues significantly impacted result (legacy costs)

30 June 2012 ($m)	30 June 2012 ($m)	30 June 2012 ($m)	30 June 2012 ($m)	30 June 2012 ($m)		2011
	Advice	Product & Platform	CAPF	Other (Int. and Corp.)	Group	Group
Revenue	38.9	5.6	13.1	4.5	62.1	58.3
Pre-tax (12.2) 2.0 2.3 (6.6)					(14.5)	(12.3)
Tax	3.0	(0.9)	(0.7)	(4.2)	(2.8)	(0.8)
NPAT	(9.2)	1.1	1.6	(10.8)	(17.3)	(13.1)

30 June 2012 ($m)						2011
					Group	Group
Pre-tax					(14.5)	(12.3)
Minorities					(0.8)	(0.9)
Legacy Costs					16.5	4.3
Pre-tax and legacy attributable to owners					1.2	(8.9)

AGM November 2012

Financial Performance - Claims

PIS claims performance continued to impact on the business
Significant portion of claims relate to advisers no longer with the group
Significant structural change has occurred in the business to ensure minimal claims from current advisers and advice

Comparison of settled claims by # of claims by claim date & advice date (as at April 2012)

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200
POLICY YEAR ADVICE DATE
180
160
140
120
100
80
60
40
20
0
2003 or EARLIER2003-2004 2004-2005 2005-2006 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 2011-2012
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AGM November 2012

Financial Performance - Current

2012/13 Financial Year First Quarter Performance

3 months to 30 September 2012 (pre minorities) EBITDA was approximately $3 million
Still incurring costs associated with change
Will test claims provision at 31 December 2012 by second actuarial review
Most significant opportunity to improve performance remains in PIS

AGM November 2012

Most significant opportunity to improve - PIS

Changes being made to accommodate:
−Need for acceptable risk levels (ensure quality of advice)
−FoFA
−Competitive environment
Retain:
−Intra-network support
−Focus on planner/accountant relationship
Build:
−New capabilities

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AGM November 2012

Other Key Issues

Enforceable Undertaking update
Singapore sale update
Future of Financial Advice (FoFA) Reform

AGM November 2012

Future

PIS benefiting from capable management
CPW group remains a significant player in the wealth industry
largest non-institutionally owned advice service group
Premium Funding generating sound returns
largest non-institutionally owned premium funder
Continue to pursue exit from non-core businesses
Looking for opportunistic incremental add-ons

THANK YOU

AGM November 2012

Capital Management & Unrecognised Assets

Franking Credits $27,985,000 − Ability to pay fully franked dividends to $65,300,000
Tax value of revenue losses not recognised in balance sheet $11,940,000 − Potential taxable earnings before paying tax $39,800,000
Tax value of capital losses not recognised in balance sheet $8,767,000 − Potential profit on asset sales before paying tax $29,223,000
Combination of franking credit & tax losses allows fully franked dividends to be paid whilst tax losses are being absorbed
Your Board understands your right to be rewarded by fully franked dividends &/or capital initiatives
Your Board will decide on rewards at the appropriate time

AGM Order of Business

1. Annual financial & other reports for the year ended 30 June 2012.

2. Adoption of the remuneration report for the year ended 30 June 2012.

3. Election of Stephen Maitland as a director.

4. Election of Matthew Kidman as a director.

5. Re-election of Noel Griffin as a director.

6. Maximum annual remuneration of non-executive directors.

7. Modification of the constitution of the Company.

AGM Order of Business

1. Annual financial & other reports for the year ended 30 June 2012.

2. Adoption of the remuneration report for the year ended 30 June 2012.

3. Election of Stephen Maitland as a director.

4. Election of Matthew Kidman as a director.

5. Re-election of Noel Griffin as a director.

6. Maximum annual remuneration of non-executive directors.

7. Modification of the constitution of the Company.

AGM Order of Business

1. Annual financial & other reports for the year ended 30 June 2012.

2. Adoption of the remuneration report for the year ended 30 June 2012.

3. Election of Stephen Maitland as a director.

4. Election of Matthew Kidman as a director.

5. Re-election of Noel Griffin as a director.

6. Maximum annual remuneration of non-executive directors.

7. Modification of the constitution of the Company.

Remuneration Report

Resolution:

“That the Remuneration Report for the year ended 30 June 2012 (set out in pages 17 to 25 of the 2012 Annual Report) be adopted”

Proxies:

Vote Type	Voted	%	% of All
For	38,395,735	88.47	37.94
Against	4,666,937	10.75	4.61
Open Usable	339,269	0.78	0.34
Other	3,438,432	-	3.39
TOTAL	46,840,373	-	46.28

AGM Order of Business

1. Annual financial & other reports for the year ended 30 June 2012.

2. Adoption of the remuneration report for the year ended 30 June 2012.

3. Election of Stephen Maitland as a director.

4. Election of Matthew Kidman as a director.

5. Re-election of Noel Griffin as a director.

6. Maximum annual remuneration of non-executive directors.

7. Modification of the constitution of the Company.

Election of Director

Resolution:

“That Mr. Stephen James Maitland, who was appointed in accordance with Rule 47 of the Company’s Constitution, and who is eligible for election and offers himself for election, be elected as a director of the Company.”

Proxies:

Vote Type	Voted	%	% of All
For	42,457,357	90.41	41.96
Against	3,473,245	7.40	3.43
Open Usable	1,028,131	2.19	1.02
Other	58,498	-	0.06
TOTAL	47,018,231	-	46.46

AGM Order of Business

1. Annual financial & other reports for the year ended 30 June 2012.

2. Adoption of the remuneration report for the year ended 30 June 2012.

3. Election of Stephen Maitland as a director.

4. Election of Matthew Kidman as a director.

5. Re-election of Noel Griffin as a director.

6. Maximum annual remuneration of non-executive directors.

7. Modification of the constitution of the Company.

Election of Director

Resolution:

“That Mr. Matthew Kidman, who was appointed in accordance with Rule 47 of the Company’s Constitution, and who is eligible for election and offers himself for election, be elected as a director of the Company.”

Proxies:

Vote Type	Voted	%	% of All
For	42,476,151	90.43	41.97
Against	3,464,434	7.38	3.42
Open Usable	1,028,131	2.19	1.02
Other	49,515	-	0.05
TOTAL	47,018,231	-	46.46

AGM Order of Business

1. Annual financial & other reports for the year ended 30 June 2012.

2. Adoption of the remuneration report for the year ended 30 June 2012.

3. Election of Stephen Maitland as a director.

4. Election of Matthew Kidman as a director.

5. Re-election of Noel Griffin as a director.

6. Maximum annual remuneration of non-executive directors.

7. Modification of the constitution of the Company.

Re-election of Director

Resolution:

“That Mr. Noel James Griffin, who retires as a director by rotation in accordance with Rule 58(a) of the Company’s Constitution, and who is eligible for re-election and offers himself for re-election, be re-elected as a director of the Company.”

Proxies:

Vote Type	Voted	%	% of All
For	42,355,184	90.17	41.85
Against	3,590,923	7.64	3.55
Open Usable	1,028,131	2.19	1.02
Other	43,993	-	0.04
TOTAL	47,018,231	-	46.46

AGM Order of Business

1. Annual financial & other reports for the year ended 30 June 2012.

2. Adoption of the remuneration report for the year ended 30 June 2012.

3. Election of Stephen Maitland as a director.

4. Election of Matthew Kidman as a director.

5. Re-election of Noel Griffin as a director.

6. Maximum annual remuneration of non-executive directors.

7. Modification of the constitution of the Company.

Remuneration of Directors

Resolution:

“That $425,000 be fixed as the maximum total amount or value of remuneration to be paid or provided to non-executive directors of the Company for their services as nonexecutive directors in any year (excluding reasonable travel, accommodation and other expenses, retirement benefits, and payments under an indemnity) for the purposes of rule 48 of the constitution of the Company, rule 10.17 of the ASX Listing Rules and for all other purposes."

Proxies:

Vote Type	Voted	%	% of All
For	39,266,547	90.09	38.80
Against	4,022,383	9.23	3.97
Open Usable / Conditional	297,663	0.68	0.30
Other	3,431,638	-	3.39
TOTAL	47,018,231	-	46.46

AGM Order of Business

1. Annual financial & other reports for the year ended 30 June 2012.

2. Adoption of the remuneration report for the year ended 30 June 2012.

3. Election of Stephen Maitland as a director.

4. Election of Matthew Kidman as a director.

5. Re-election of Noel Griffin as a director.

6. Maximum annual remuneration of non-executive directors.

7. Modification of the constitution of the Company.

Modification of Company Constitution

Resolution:

That the constitution of the Company be modified by deleting the existing rule 85 in the constitution and replacing it with the revised wording as set out in the Notice of Meeting.

Proxies:

Vote Type	Voted	%	% of All
For	42,383,333	90.19	41.88
Against	3,583,044	7.62	3.54
Open Usable	1,028,131	2.19	1.02
Other	23,723	-	0.02
TOTAL	47,018,231	-	46.46