INVESTSMART GROUP LIMITED — Capital/Financing Update 2013

Dec 12, 2013

AWI

Australasian Wealth Investments Limited

Australasian Wealth Investments

Further Acquisition & Capital Raising

Business Update – 13 December 2013

Page 1

The future for the Company

AWI

Australasian Wealth Investments Limited

Further investment in core FS themes

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•InvestSmart •van Eyk •Blueprint(wholly •Several
•YourShare – Research owned by vER) opportunities
settling on 13 Dec under
•Opportunity to •Potential for consideration
•Selective acquisition participate in sector synergistic
& organic growth consolidation acquisitions
Digital Research & Funds Trust & super
distribution information management services
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• In the core themes, the Company will hold up to 100% of a small number of distinct businesses

• Either control or significantly influence

• A number of qualified opportunities are highlighted over the page

• The Company also intends to invest in a portfolio of early stage FS opportunities, typically minority stakes alongside founders

• SelfWealth.com.au – crowd sourced equity portfolio construction

• Launching AWI Ventures , investing alongside FS entrepreneurs, in the New Year

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SelfWealth
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Business Update – 13 December 2013

Page 2

YourShare acquisition

AWI Australasian Wealth Investments Limited

A cash-back retail service provider with 16,000 customers

• YourShare operates a rebate schemes for retail customers in managed funds, life insurance products, with mortgages and for general insurance products

• Australia’s leading rebater of commissions on financial products

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• 14 staff based in Mittagong, NSW

• Acquisition price $12.5m

• $1.5 million EBIT expected for 2014 (annualised)

• Winner of Money Magazine - ‘ The Best Money Back Provider ’ award for five consecutive years

Business Update – 13 December 2013

Page 3

Strategic fit within AWI

A complementary digital distribution business

• YourShare is a significant independent digital distribution business that significantly increases AWI’s footprint in this core theme

• YourShare will be managed alongside InvestSmart (although no immediate cost savings expected)

• Cross-sell opportunities with InvestSmart products and van Eyk research

• YourShare also has surplus capacity to run InvestSmart's rebate scheme (branded ‘TrailCap’)

• Revenue per InvestSmart customer expected to increase as more clients bring on their additional products – including life insurance, general insurance and mortgages – to the wider YourShare rebate scheme

• InvestSmart currently averages $133 per customer

• YourShare averages $300 per customer

AWI Australasian Wealth Investments Limited

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Business Update – 13 December 2013

Page 4

Revenue drivers

AWI

Australasian Wealth Investments Limited

Independent but complementary investments driving compounding revenue growth

• Stable ‘annuity’ revenues, and positive earnings, in each of our acquired businesses

• Multiple client channels

• A platform for growth

40,000 paying customers* (12.9% sell through); seeking to increase take-up towards 20% through product/website enhancement

310,000 unique individuals access our digital properties*; seeking to build to 500,000 through acquisition & organic growth

Assume 7% pa market growth (with ‘self directed’ & SMSF assets - growing at 12% pa)

$205 annual revenue per customer* (largely from rebate / trail commissions); growth through new research & funds management streams; medium term goal to double annual revenue per customer

• AWI seeks to leverage its digital distribution footprint, and its complementary investments, to generate compounding revenue growth

• Includes YourShare traffic, customers & revenue

Business Update – 13 December 2013

Page 5

AWI deal pipeline

AWI

Australasian Wealth Investments Limited

A qualified opportunity pipeline

• AWI is currently evaluating multiple opportunities across its core themes

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Business Update – 13 December 2013

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Company financials

AWI Australasian Wealth Investments Limited

as at 6 December 2013 Market capitalisation of $54 million

Unaudited balance sheet – at 6 December 2013	Unaudited balance sheet – at 6 December 2013
Assets	$m
Cash	15.1
Investment - InvestSmart	7.0
Investment – van Eyk Research	13.3
Other Investments	0.8
Total Assets	36.1
Liabilities
Total Liabilities	(0.0)
Net Assets	36.1

Pro-forma balance sheet – following YourShare acquisition & capital raising	Pro-forma balance sheet – following YourShare acquisition & capital raising
Assets	$m
Cash	9.6
Investment - InvestSmart	7.0
Investment – van Eyk Research	13.3
Investment – YourShare	12.5
Other Investments	0.8
Total Assets	43.1
Liabilities
Total Liabilities	(0.0)
Net Assets	43.1

• Capital raised will be used to continue to build out the AWI investment portfolio in its core FS themes

Business Update – 13 December 2013

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Disclaimer

AWI

Australasian Wealth Investments Limited

This document has been compiled by Australasian Wealth Investments (AWI or the Company) Limited for the benefit of brokers, analysts and investors and not as specific advice to any particular party or person. The information is based on publically available information and other sources. Where an opinion is expressed in this document it is based on assumptions and limitation herein and are an expression of present opinions only. No warranties or representations can be made as to the accuracy, validity, completeness or reliability of the information.

AWI disclaimers and excludes all liability (to the extent permitted by law), for the loses, claims, damages, costs and expenses of whatever nature arising in any way out of or in connections with information, its accuracy, completeness or by reason of reliance by any person on any of it.

AWI does not have any obligation to advise any person if it becomes aware of any inaccuracy in or from any forecast or to update such forecast.

Business Update – 13 December 2013

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