COUNT LIMITED — Interim / Quarterly Report 2012

Feb 28, 2012

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Half Year Results 29 February 2012

Barry Lambert - Chairman Michael Spurr - CEO & Managing Director

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The Count lus Network p

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Full Year Result Highlights

Financials

2

3 Consolidated EBITA: $10.51 million Consolidated Net Profit after Tax: $6.93 million Net Profit after Tax attributable to shareholders: $6.87 million Earnin s Per Share: 6.30 cents g Diluted Earnin s Per Share: 6.29 cents g

CUP Dividends

• 3 cent interim quarterly dividend declared (payable 15/05/12)

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3

Group Performance

	$„000	% Change(previousyear)	Revenue derivedprimarily fromaccounting andfinancial planningservicesOrganic growth inboth main revenuelinesOther Expensesinclude impact ofgroup debtorprovisioning policynow in placeEmployment costsimpacted byacquisitionsFull periodcontribution fromTFS dealer group	Revenue derivedprimarily fromaccounting andfinancial planningservicesOrganic growth inboth main revenuelinesOther Expensesinclude impact ofgroup debtorprovisioning policynow in placeEmployment costsimpacted byacquisitionsFull periodcontribution fromTFS dealer group
Total Net Member Revenue	45,153	10.3%
Expenses:
Salaries and Employment	(25,665)	12.2%
Premises	(2,512)	28.8%
Depreciation	(657)	11.4%
Other Expenses	(5,700)	0.5%
Total Expenses	(34,534)	11.1%
				Other Expensesinclude impact ofgroup debtorprovisioning policynow in place
Net Member Income	10,619	8.0%
Member Firm Contribution Margin (%)	23.5%	(2.2%)

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Group Performance (cont)

	$„000	% Change(previousyear)	QueenslandMember Firms arerecovering fromdifficult 2011.Low businessconfidence andinvestor uncertaintyhas impactedperformance
Total Net Member Revenue	45,153	10.3%
Expenses:
Salaries and Employment	(25,665)	12.2%
Premises	(2,512)	28.8%
Depreciation	(657)	11.4%
Other Expenses	(5,700)	0.5%
Total Expenses	(34,534)	11.1%
Net Member Income	10,619	8.0%
Member Firm Contribution Margin (%)	23.5%	(2.2%)

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Group Performance (cont)

		$„000	% Change(previousyear)
Net Member Income		10,619	8.0%
Head Office Contribution (net cost)		(107)	(73.1%)
Operating Profit		10,512	11.4%
Interest Expense		(359)	(34.4%)
Non Cash fair value adjustments		57	(98.5%)
Amortisation Expenses		(1,721)	18.6%
Profit Before Tax		8.489	(24.9%)
Tax Expense		(1,563)	(55.9%)
Consolidated Net Profit after Tax		6,926	(10.7%)
Earnings Per Share		6.30

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Balance Sheet

Balance Sheet
	$„000	Strong balance sheetwith working capitaldebt repaid out ofpublic raisingAll Member Firmsgenerate strong cashflow. Average “Lock-up” at 94 days$2.8m drawn on $10mdebt facility withCount Financial atbalance date
Current Assets	26,855
Current Liabilities	17,616
Current Ratio	1.52
Non-Current Assets	58,624
Non-Current Liabilities	12,413
Net Assets	55,450
**Total Loans and Borrowings **	3,709
Debt to Equity Ratio	6.7%

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7

Results Summary

• Overall result solid in challenging business environment

• Organic revenue growth delivered in both accounting and financial services

• Conservative group debtor provisioning policy now in place impacting expenses (one-off)

• Benefit from tax consolidation realised in current period.

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Dividends

Dividends Paid

2011 Final Dividend

1[st] Interim Dividend

2[nd] Interim Dividend

Cents Per Share

Paid

01/07/2011

2 cents 15/08/2011

3 cents 15/11/2011

3 cents 15/02/2012

Dividends Declared

Cents Per Share

Pa able y

3[rd] Interim Dividend 3 cents 15/05/2012

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Key Acquisitions

Date Ac uirer “Tuck-In” q Jul 2011 Countplus MBT Parramatta (Sydney, NSW) based (Sydney, NSW) chartered accounting & financial planning practice Loughhead Roberts Feb 2012 Kidmans Victorian based property & accounting (Melbourne, VIC) group Pacific East Coast

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 Core business is property broking services

• Main clients are accounting firms

• Example of “bolt-on” acquisition –complements core business

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Ac uisition Strate q gy

• “Tuck-Ins” by subsidiaries will continue

• Minority interests may also be acquired in larger practices

• CUP has low debt and ability to use scrip where appropriate

• Marketing campaign launching to accounting (non-Count) firms

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12

Guidance

• 2012 second half operating result v first half

  • Impact of “tuck ins”

  • Impact of group provisioning policy in first half

• Current 12 cents per annum dividend expected to be maintained

• Dividend payout ratio expected to reduce over time

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The Countplus Network

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Future Growth

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Group efficiency

Organic (primary driver)

• Firms acquired on basis of being capable of delivering continued organic growth

• Member Firms continue to run independently of each other with - vendor principals retaining control

• Performance based equity rewards

Acquisition

• Carefully targeted

• Must be EPS accretive

• May take form of “tuck-ins” by existing Members or minority stakes by group

“Bolt-on” acquisitions that complement core accounting business

• Member Firms learn from each other and develop best practice

• Cost synergies (limited) - Accounting franchise

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The Countplus Network

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Half Year Results 29 February 2012

Barry Lambert - Chairman Michael Spurr - CEO & Managing Director

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