GENERATION DEVELOPMENT GROUP LIMITED — Interim / Quarterly Report 2011

Feb 21, 2011

Interim Results Presentation For the half year ended 31 December 2010

22 February 2011

Financial Overview: Operating Result

Operating Results ($m unless stated)

Half year ended 31 December	2010	2009	Change
Revenue					�Corporate revenue only $3.2mcompared with $5.4m. Improved
Corporate & Securities	10.1	14.7	(31.3%)		outlook for 2H
Investment Management	4.6	3.5	31.4%		�Brokerage revenue down to $6.5m
Other	6.6	0.2	nm		(from $8.6m). Institutional-related due
	21.3	18.4			to continued “tough” trading conditions.Some improvement evident in 2Q and
Personnel costs	(12.0)	(13.9)	(13.7%)		early 3Q
Operating costs	(6.1)	(6.1)	–		�Investment Management income up
Net profit/(loss) before tax	3.2	(1.6)	–		$1.1m due to debt refinancing fees of$900,000 from AEU and continued
					improvement from Life as FUM
Income tax benefit	0.7	0.7	–		continues to grow
Net profit / (loss) after tax	3.9	(0.9)	nm		�Other revenue includes profit on sale ofRegistries (including performance feesand dividends) and interest

nm: not meaningful Note: Excludes Life benefit funds

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Financial Overview: Expense Analysis

Expenses ($m unless stated)

Half year ended 31 December	2010	2009	Change
Personnel	12.0	13.9	(13.7%)
Occupancy	0.8	0.7	14.3%
Communication	0.4	0.4	–
Finance	0.2	0.3	(33.3%)
Dealing & settlement	2.1	2.1	–
Marketing & promotion	0.7	0.6	16.7%
Depreciation	0.3	0.4	(25.0%)
General administration	1.6	1.6	–
Total Expenses	18.1	20.0	(9.5%)

� Personnel costs down 13.7% from 2009, which is a combination of a reduction in headcount and commissions as a result of reduced brokerage income

• Occupancy includes effectively seven months rent with the Melbourne premises move. General administration includes $141,000 of plant & equipment/furniture and fittings write off at the old Melbourne premises

• Dealing & settlement expenses relate to ASX Chess / SEATS, Bloomberg, IRESS, Reuters, GBST, Life upfront payments and trails

• Marketing & promotion predominantly relate to travel & entertainment expenses

• General administration expenses include insurance, consulting, audit & tax, legal, IT, ASX & registry, office & photocopying, etc.

Note: Excludes Life benefit funds and discontinued operations (predominantly Asset Management in 2009)

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Financial Overview: Cashflow Statement

Cashflow ($m unless stated)

Half year ended 31 December	2010	2009
CASHFLOWS FROM OPERATIONS
Customer receipts	15.1	17.7
Supplier payments	(18.9)	(18.6)
Interest paid	(0.1)	(0.2)
Tax refund (payment)	0.7	1.0
Operating Cashflow	(3.2)	(0.1)
Proceeds from Registries & AFP sale	7.4	–
Interest received	0.3	0.2
Dividend received	0.5	–
Capital expenditure	(0.4)	–
Net borrowing	(2.3)	(0.4)
Guarantee payment	–	(1.8)
Other	(0.2)	(0.7)
Total Cashflow	2.1	(2.8)
Opening cash*	14.5	20.6
Closing cash*	16.6	17.8

• Operating cash outflow of $3.2m is disappointing. Timing of corporate income an important factor – expected to improve 2H

• Dividend of $0.5m received from Registries

• All bank debt relating Ceramic acquisition now repaid.

• Guarantee payment of $1.8m in 2009 relates to one-off payment in relation to AEDTs (schools)

* Excludes cash held in trust on behalf of Securities clients and Life benefit funds

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Financial Overview: Balance Sheet

Balance Sheet ($m unless stated)

ASSETS	31 Dec 2010	30 June 2010
Cash	16.6	14.3
Trust cash	–	0.2
Receivables	1.9	2.1
Financial assets	1.9	9.6
Other assets	1.0	1.2
Plant & equipment	1.0	0.9
Intangible assets	5.3	5.4
Deferred tax assets	6.9	6.1
Income tax refund	–	0.8
Total assets	34.6	40.6
LIABILITIES
Payables	0.9	2.0
Provisions	2.7	2.9
Other liabilities	4.1	5.8
Borrowings	0.3	2.6
Deferred tax liability	–	0.8
Total liabilities	8.0	14.1
Net assets	26.6	26.5

• Receivables includes brokerage receivable and property income receivable

• Financial assets at 30 June includes Registries ($7.8m) and principal trading ($1.8m)

• Other assets includes insurance prepayments and accrued property income

• PP&E includes furniture & fittings and IT equipment

• Intangibles includes software ($0.4m), goodwill ($3.0m) and property management rights associated with the Ceramic acquisition in 2007 ($2.0m)

• Deferred tax assets increasing due to carried forward tax losses

• Provisions includes annual leave & long service leave entitlements

• Other liabilities includes GST, accrued commissions, audit fees, payaways, trails, bonuses and termination payments

• Borrowings at 30 June include BankWest loan ($2.5m) and some HP

Note: Excludes Life benefit funds

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Segment Review: Organisational Chart

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Key Factors

• Improvement is evident – working hard to accelerate progress

• Cost base is very scalable

• Third quarter has started well in what is typically a slow period

• Team has changed significantly over the last six months

• Re-positioned to become a specialty Private Wealth House

• Short term focus is on Managed Discretionary Account Service, Portfolio Management & Construction, Options and the creation of the Small Resources Dealing Team.

• Revenue $3.2 million for first half

• Growing confidence in pipeline and significant improvement expected in 2H

• Evidence of increased IPO activity

• Ranked #10 in AFR /Starmine Awards in December, best performing of non globally aligned peers

• In same awards our Mining Services & Infrastructure research rated top 3

• Increased number of companies where we have market leadership, key to growing revenue medium term

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Key Factors

• Now stabilised post ABC

• AEU debt refinancing for $180 million completed on 31 December 2010

• ASIF to list on ASX on 25 February 2011

• Focus is now on growth opportunities

• Investment in distribution being reflected in increased FUM from $175 million at 30 June to $207 million at 31 December 2010

• December saw record inflow of $8.3 million

• Long-term strategy to continue to build FUM and capital value

• Minimal impact on profitability this year – but should become profitable during 2012

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Disclaimer

This presentation has been prepared by Austock Group Limited ABN 90 087 334 370 (“Austock”).

The information in this presentation is based on data obtained from recognised statistical services, company presentations or communications or other sources believed to be reliable. However, Austock has not verified this information. Austock believes that the information in this presentation is accurate and reliable, but no warranties of accuracy, reliability or completeness are given (except insofar as liability under any statute cannot be excluded). Austock does not accept responsibility for any errors, omissions or negligence. Statements that are nonfactual in nature, including projections and estimates, assume certain economic conditions and industry developments and constitute only current opinions, all of which are subject to change.

The information contained in this presentation is for information purposes only and does not constitute an offer of, or a recommendation to buy, securities.

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