PRAEMIUM LIMITED - AGM Information 2013

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2013 Annual General Meeting Presentation

19 November 2013, Melbourne:

Praemium (ASX:PPS) is pleased to provide a copy of the presentation to be given by Praemium’s Chairman, Mr Bruce Loveday, and its CEO, Mr Michael Ohanessian at the Company’s Annual General Meeting (which will commence at 11am this morning).

About Praemium : Praemium is a global leader in the provision of investment administration, Separately Managed Account (SMA) and financial planning technology platforms. Praemium administers in excess of 300,000 investor accounts covering approximately $80 billion in funds globally, and currently provides services to approximately 700 financial institutions and intermediaries, including some of the world’s largest financial institutions.

For further information contact: Mr Paul Gutteridge, Company Secretary +613 8622 1222

PRAEMIUM LIMITED - CHAIRMAN’S ADDRESS – 2013 AGM

In his address to you last year, my colleague and predecessor as Chairman of Praemium, Bruce Parncutt, reported on the considerable improvements that had been made to Praemium’s operating structures and on the key strategic decisions taken by the Company, especially in acquiring the rights to become the Responsible Entity for the Praemium Customised Portfolio Service (then known as the Black Rock CPS), along with the acquisition of WealthCraft in Hong Kong.

I am delighted to be able to continue the theme of improvement in Praemium’s operations in my comments to you today. While we have not yet achieved operating profitability across the Group, we have moved closer to that objective. Importantly, the Company has several exciting opportunities ahead of it, which our CEO Michael Ohanessian will report on in more detail shortly.

Your company reported a profit after tax of $4.4 million in 2012/13. As advised when this result was announced, the reported profit was the result of recognising a deferred tax asset relating to Praemium’s Australian business and does not reflect a profit from normal operational activities. Nonetheless, in order to be able to recognise a deferred tax asset, your Board had to make a determination that it was likely that the Australian business would be profitable in the future and we were delighted to be able to do so.

After experiencing some financial difficulties in the past, Praemium’s Australian business has now recorded two consecutive years of profit as the result of a strong performance by the Company’s traditional business.

Before the effect of recognising the deferred tax asset, the Company’s earnings before interest, tax, depreciation and amortisation (EBITDA) for 2012/13 was negative $1 million, of which approximately $600,000 related to Wealthcraft.

By comparison, EBITDA – not including Wealthcraft - was negative $2.4 million in the previous year. We are very pleased with the continuing improvement in operational performance, and we remain committed to achieving sustainable operating profitability as soon as possible.

Praemium also completed a successful capital raising during 2012/13, the principal purpose of which was to support the Company’s capital requirements as Responsible Entity for the CPS. With the support of shareholders and several new investors, the Company raised $4.2 million via a placement and a non-renounceable rights issue.

At the end of 2012/13, Praemium had a cash balance of $8.1 million, which the Board believes puts the Company in a strong position to support current operations and pursue future growth options. Based on current expectations, the Board sees no reason for the Company to raise further capital.

PRAEMIUM LIMITED - CHAIRMAN’S ADDRESS – 2013 AGM

I would now like to turn to some important positive developments that we believe will deliver value to shareholders into the future.

Firstly, we have become the Responsibility Entity for what was previously the BlackRock Customised Portfolio Service, Australia’s leading Separately Managed Account (or SMA) service. Praemium has provided the software engine for the CPS since it was first launched in Australian in 2005. We understand the product and what is required to make it function smoothly for the benefit of the clients.

Praemium became the Responsibility Entity in December 2012, at which time the total volume of funds in the CPS was $685 million. We have worked hard to promote and develop the business and, by 30 June 2013, the volume of funds had grown to $885 million. By the end of October we had achieved further growth, and total funds had grown further to over $1.1 billion.

We believe that the combination of our prominent positioning in the sector, the quality of our product and our reputation for service to clients, along with emerging demand in the SMA market, will lead to continuing growth for Praemium’s CPS into the future.

Secondly, Praemium’s acquisition of WealthCraft in Hong Kong is starting to bear fruit. In addition to providing us with access to some very interesting opportunities in Asia, which Michael will talk about more fully in his address to you, we have also been able to take the Customer Relationship Management software developed by WealthCraft and Australianise it to enhance our core portfolio administration product in Australia. The competitiveness of our VWRAP offering has been improved as a result, and the additional functionality has added measurable value to our Australian business already.

Thirdly, there have been a number of positive developments regarding Praemium’s UK business that has given the Board confidence on the longer-term prospects for this business. Some of these are the result of market changes and some are the result of management initiatives. I would like to briefly summarise these:

The Retail Distribution Review (or RDR) relating to the financial services industry – similar in nature to FoFA in Australia – has increased the potential value of Praemium’s service to independent financial advisers.
Management has substantially transformed the operating structure of the business. Initially, this involved stripping out excess costs in the business and building a more efficient operational platform. Subsequently, more resources have been invested in improving our on-boarding and client service functions, which are essential in any business like ours.

PRAEMIUM LIMITED - CHAIRMAN’S ADDRESS – 2013 AGM

About twelve months ago, our Jersey business Praemium International opened for business to service the international English-speaking expatriate community by leveraging off the existing UK cost base. Market response to date has been positive, and we have written business with a number of important advisers in this market.
Management has begun to execute a strategy to position Praemium as a provider of multi-asset class investment solutions, in addition to its current platform administration and execution services. To this end, we have recently made several senior appointments in the Investment Solutions area. This initiative will open up a larger part of the wealth management value chain to Praemium.

We see great opportunity for our business in Australia, Asia and the UK. In order to access these opportunities, it has been necessary to undertake a substantial change process across the entire company and, while continuous improvement will always be something your management team will be focusing on, we are now able to look to the future with some confidence.

I look forward to being able to report continued progress to shareholders in the future and will now invite our CEO Mr. Michael Ohanessian, to present his report to the meeting.

Bruce Loveday Chairman – Praemium Limited 19 November 2013

Agenda

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CEO’s Report

Michael Ohanessian - CEO

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Disclaimer

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The material contained in this document is a presentation of general information about the Præmium Group’s activities current as at the date of this presentation (19 November 2013). It is provided in summary and does not purport to be complete. You should not rely upon it as advice for investment purposes as it does not take into account your investment objectives, financial position or needs. These factors should be considered, with or without professional advice when deciding if an investment is appropriate.

To the extent permitted by law, no responsibility for any loss arising in any way (including by way of negligence) from anyone acting or refraining from acting as a result of this material is accepted by the Præmium Group or any of its related bodies corporate.

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CEO’s Report

Background FY2013 results Forward strategy

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Who we are

ASX Listed

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Company founded in 2001
Listed on Australian Stock Exchange (ASX) in 2006
Head office in Melbourne, Australia

Global Footprint

Locations across London, Jersey, Hong Kong & Shenzhen
Over 130 staff

Global Reach

Technology provider to the financial services market
Customer base of over 600 firms providing wealth management services

What we do

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Key products

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Built upon Microsoft Dynamics CRM technology
Manages client information, business workflows
Fully integrated with other Praemium systems
Web-based portfolio administration system (V-Wrap)
Record, monitor and report client’s investments
SMSF administration integrated within system
Investment platforms across Australia, UK and International (Jersey)
Unique Separately Managed Account technology
Improves on traditional wrap platforms through transparency, efficiency and tax optimisation

CRM: Customer Relationship Management SMA: Separately Managed Account

CEO’s Report

Background FY2013 results Forward strategy

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Key achievements in FY13

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Significantly improved operating cash-flow
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*SMA: Separately Managed Account technology

Added key building blocks

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� �
Launched Smooth Completed key FoFA-compliant transition from product CRM in taking over Aus upgrades Australia SMA
� � � Significant Launched Commenced expansion of Praemium beta trials of key 3[rd] party International for SMSF data feeds ex-pat market compliance �
� Improved UK � Building strong Integrated V- client service
pipeline in Asia Wrap into CRM levels

CRM: Customer Relationship Management FoFA: Future of Financial Advice

Revenue growth in all areas

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15,000
ASIA Recurring revenue
UK ($000)
AUS
10,000
5,000
-
FY2010 FY2011 FY2012 FY2013
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Note: excludes revenue received as share issues in FY10 and FY11

Earnings improvement

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Underlying EBITDA
($m)
(1.0)
(2.5)
(4.0)
(5.5)
(7.0)
FY11 FY12 FY13
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Note: refer page 13 for definition of underlying EBITDA

Segments half on half

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3.0
Underlying EBITDA by Segment
($m)
2.0
1.0
-
(1.0)
(2.0)
H1 FY13
H2 FY13
(3.0)
AUS UK ASIA Corporate
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Note: refer page 13 for definition of underlying EBITDA

Managing capital resources

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Quarterly Operating Cashflow
500
($000)
250
-
(250)
(500)
Q4 FY12 Q1 FY13 Q2 FY13 Q3 FY13 Q4 FY13 Q1 FY14
Group cash of $8 million
13
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*Excludes non-recurring costs

CEO’s Report

Background FY2013 results Forward strategy

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Overall strategy

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Portfolio Administration

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Reigniting growth for our proven leader, V-Wrap

Global SMA Platform The next generation investment platform Financial Planning & CRM (WealthCraft)

Taking wealth management to a new level

Reinvigorating our core product

Best-in-class portfolio administration

Significant ongoing investment

Enhance reporting capabilities
Unique account reconstruction technology
Unrivalled corporate actions processing
Comprehensive performance and tax reporting
Develop full SMSF compliance and reporting functionality in FY2014
Continue to enhance integration with WealthCraft
Next generation investor portal

A uniquely compelling combination of CRM, portfolio

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Global SMA player

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Global reach

Investment platform across Australia, UK and International (Jersey)

Unique capabilities

Built around a strong core technology
� Scalable and responsive rebalancing
� Multiple asset/currency
Compliant with newly introduced regulations
� WealthCraft integration
� In-house range of discretionary models

WealthCraft driving global strategy

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�
Solid start FoFA compliant release
�
in Considerable interest from
Australia Praemium’s existing client base
�
Existing WealthCraft clients looking
Growing
to adopt SMA platform
Asian
�
Significant opportunity for wealth
presence
management firms in China/HK
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*FoFA: Future of Financial Advice

A complete business solution

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Solid start
in Australia
Risk Profile
AdministrationGrowing
& Strategies
Asian
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presence
Transaction
& Reporting
Engine
SMSF
Huge Global Compliance
opportunity
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Looking forward

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Exciting new product releases

Investor portal
WealthCraft – SMA platform integration

Expand superannuation and pension

Expand SMSF functionality
Re-launch of the super and pension SMA Risk Profile
� AdministrationGrowing Group pension schemes for International markets & Strategies Asian presence
Build an in-house investment proposition
Recruitment of experienced discretionary investment managers
� Offer a range of risk weighted model portfolios

SMSF Favourable regulatory changes Compliance

Ready-made FoFA/RDR system
Uniquely positioned to service US taxpayers (FATCA*)
� G8 determined to “expand FATCA”

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*Foreign Account Tax Compliance Act

AI assistant

PRAEMIUM LIMITED AGM Information 2013

65606_rns_2013-11-18_d0f97b24-5105-4432-9882-0e4ff72f14f8.pdf

2013 Annual General Meeting Presentation

19 November 2013, Melbourne:

Agenda

CEO’s Report

Disclaimer

CEO’s Report

Who we are

What we do

Key products

CEO’s Report

Key achievements in FY13

Added key building blocks

Revenue growth in all areas

Earnings improvement

Segments half on half

Managing capital resources

CEO’s Report

Overall strategy

Reinvigorating our core product

Global SMA player

Global reach

Unique capabilities

WealthCraft driving global strategy

A complete business solution

Looking forward

Exciting new product releases

Expand superannuation and pension

AI assistant

PRAEMIUM LIMITED — AGM Information 2013

65606_rns_2013-11-18_d0f97b24-5105-4432-9882-0e4ff72f14f8.pdf

2013 Annual General Meeting Presentation

19 November 2013, Melbourne:

Agenda

CEO’s Report

Disclaimer

CEO’s Report

Who we are

What we do

Key products

CEO’s Report

Key achievements in FY13

Added key building blocks

Revenue growth in all areas

Earnings improvement

Segments half on half

Managing capital resources

CEO’s Report

Overall strategy

Reinvigorating our core product

Global SMA player

Global reach

Unique capabilities

WealthCraft driving global strategy

A complete business solution

Looking forward

Exciting new product releases

Expand superannuation and pension

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PRAEMIUM LIMITED AGM Information 2013