CENTREPOINT ALLIANCE LIMITED — Management Reports 2012

Jul 9, 2012

Dear Shareholder

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Welcome to our first investor newsletter. It is our intention to update the shareholders about their Company with a similar letter every quarter. We would like to take this opportunity to thank everyone for their support as we look forward to a promising future.

While we are disappointed with the Centrepoint Alliance Limited (CAF) share price performance in recent times, not least because there is a disconnect with the significant improvement that has occurred within the business over that period, we enter the 2013 financial year more optimistic about the Company’s future than at any time over the last 12 months. Many difficult hurdles have been overcome and we believe the Company has a major role to play in the rapidly changing financial advice industry in Australia.

Major changes

CAF and in particular the Centrepoint Wealth businesses have been the subject of a major overhaul in recent times. Many key management positions have been filled and we have been pleasantly surprised at the quality of people the Company has been able to attract in a highly competitive market. While there are still some positions to be filled the critical people required to drive the business to its full potential are largely in place.

Unique offering

CAF, through its core financial advice assets of Professional Investment Services (PIS) and Associated Advisory Practices (AAP), has a distinctive position in the industry. Due primarily to the Future of Financial Advice (FOFA) regulatory changes the industry has undergone a rash of consolidation. This has seen several independent groups acquired by larger players such as the Banks, who are keen to sell their own financial products through an expanded distribution network. This has resulted in fewer and fewer financial planning groups providing independence of choice.

CAF stands separate from these groups, offering clients a clear value proposition based upon quality of service, quality of advice and independence of choice. The board and management of the Company do not believe financial planning groups need to be sheltered by larger institutions such as the Banks to thrive in the current market. As Australia and the World economies struggle through difficult times we strongly believe financial advisors and investors require a group that can provide quality of service, independence of choice and quality of advice.

Financial strength

Critically, CAF enters the FOFA era from a position of strength. The Company’s balance sheet, which has been buffeted by past poor decisions, retains a solid net cash position. This holds the Company in good stead despite the current malaise in investment markets.

The introduction of the new management and the prevailing difficult economic environment has resulted in the Company simplifying its structure and consequently dramatically altering its cost base. This has allowed us to reallocate funding to key areas of the Company and also place the overall group in the vital position of being able to take maximum advantage of an upturn in financial markets when they do inevitably improve. While management will continue to be prudent on costs to ensure shareholders are delivered satisfactory profit margins, we are also focused on ensuring the future of the Company by making significant investments in people and processes in the business.

Still much to do

CAF has seen major changes in recent times, however there is still much to do. The Company is still awaiting a response from the Australian Securities and Investment Commission in relation to an enforceable undertaking. The final independent expert’s report has been provided to ASIC and CAF has made its submission and is confident of working positively with the regulator going forward.

A major effort has been made to retain financial advisors which management now believe has stabilized. The Company now has the task of growing this base by delivering the value proposition that has at its core independence of choice, quality of service and quality of advice.

Finally, the Company has set itself the task of achieving industry best standards and delivering the shareholder returns that match this status.

Thank you for your support as we look forward to a promising future at CAF.

Yours faithfully,

Tony Robinson Managing Director Centrepoint Alliance Limited

6 July 2012

Level 2, Fawkner Centre 499 St Kilda Road, Melbourne, VIC, 3004 Tel: 03 9864 6464 Fax: 03 9864 6465 info@cafcorp.com.au www.cpal.com.au

CENTREPOINT ALLIANCE LIMITED ABN 72 052 507 507 A member of the Centrepoint Alliance Group