PRAEMIUM LIMITED — AGM Information 2019

Nov 18, 2019

2019 Annual General Meeting Presentation

19 November 2019, Melbourne: Praemium is pleased to provide a copy of the address to be given by Praemium's Chairman, Barry Lewin, and the presentation by Praemium's CEO, Michael Ohanessian at the Company's Annual General Meeting (which will commence at 11am this morning).

Document approved by the Board of Praemium Limited

For further information: Paul Gutteridge, Company Secretary Ph: 1800 571 881

About Praemium (ASX: PPS): Praemium is a global leader in the provision of technology platforms for managed accounts, investment administration and financial planning. Praemium services in excess of 300,000 investor accounts covering over $140 billion in funds globally for more than 1,000 financial institutions and intermediaries, including some of the world's largest financial institutions.

Praemium Limited (ABN 74 098 405 826), Level 19, 367 Collins Street, Melbourne VIC 3000 Australia

Praemium's Chairman's Address Barry Lewin, Melbourne, 19 November 2019

I extend a very warm welcome all shareholders, staff, professional advisors and other visitors to the 2019 Praemium Annual General Meeting. I'm delighted to be presenting to you following my second full year as Chairman of Praemium.

The past year can be characterised as one where the Company has achieved very solid progress across a number of growth-focused initiatives. Further diversification of our business and the significant broadening of our addressable market and product offering have contributed to strong growth in our international business, which continues its drive towards inflection.

The major rebranding and upgrade in February expanded Praemium's range of single assets, and created a comprehensive Individual Managed Accounts (IMA) service. The IMA significantly increases Praemium's Australian addressable market, from the $21 billion SMA platform segment (as at the end of 2018) to the $858 billion overall platform market today.

Major achievements for the year included:

• Record annual gross inflows across Australia and International markets of $3 billion
• Platform Funds under Administration (FUA) of $9.5 billion at June 2019 and increasing further to $10.3 billion by the end of September 2019, and
• IMA contributing a rapidly growing 8% of overall FUA growth since its launch in February

With the inclusion of the VMA Administration Service (VMAAS) for the first time, total FUA has hit the $20 billion mark. Based on the experience thus far, we expect VMAAS to be an important driver of future growth.

I should not let the opportunity pass to say how disappointed we were to see a major Australian client make the decision to leave the platform. While it is of course disappointing to have a valued client choose to go in a different direction, it is important not to overstate the reliance of our business on any one client.

Moreover, several major new agreements executed during the financial year will exceed the lost revenue once fully transitioned, and these contract wins demonstrate just how diversified and robust our business has become, and this is a great credit to Michael and his team.

On behalf of the Board, I extend sincere thanks to our dedicated staff and management around the world for delivering another strong financial result. They are working hard to assure our continued success.

My fellow directors and I also wish to express our sincere appreciation to all shareholders for your support, and we are confident you will continue to benefit from your investment in the Company well into the future.

I would now like to ask our CEO Michael Ohanessian, to present his report to the meeting.

CEO's Report

Michael Ohanessian, CEO & Managing Director

1

The material contained in this document is a presentation of general information about the Praemium Group's activities current as at the date of this presentation (19 November 2019) and is supplementary to the Group's financial results released to the ASX on 12 August 2019 and previous ASX filings as applicable.

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.

This presentation may contain forward looking statements including statements regarding our intent, belief or current expectations with respect to Praemium's businesses and operations, market conditions, results of operation and financial condition, capital adequacy, specific provisions and risk management practices. Readers are cautioned not to place undue reliance on these forward looking statements. Praemium does not undertake any obligation to publicly release the result of any revisions to these forward looking statements to reflect events or circumstances after the date hereof to reflect the occurrence of unanticipated events. While due care has been used in the preparation of forecast information, actual results may vary in a materially positive or negative manner. Forecasts and hypothetical examples are subject to uncertainty and contingencies outside Praemium's control. Past performance is not a reliable indication of future performance.

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 Praemium Group or any of its related bodies corporate.

Key performance indicators

VMA Administration Service (VMAAS) at $6.6 billion FUA UK Pension schemes now exceed 1,000

16, Q3 16, Q4 17, Q1 17, Q2 17, Q3 17, Q4 18, Q1 18, Q2 18, Q3 18, Q4 19, Q1 19, Q2 19, Q3

A major platform upgrade

UMA: Unified Managed Account MIS: Managed Investment Scheme SMA: Separately Managed Account IMA: Individually Managed Account VMA: Virtual Managed Account

Award-winning innovation 2019

Winner

Innovation Category

Institute of Managed Account Professionals Managed Account Awards

Winner Schroders UK Platform Awards Leading Platform for Discretionary Management

Winner

Global Investment Platform of the Year Investment Adviser Awards

Winner

Best Fund Platform

City of London Wealth Management Awards

"The winner has shown persistence over a long period in developing a service that meets the needs of its clients and their clients for a solution which is flexible and able to be used by a range of investors.

In a competitive environment the solution needed to support a wide range of business models and the winner achieves that."

-IMAP judging panel

FY2019 financial results

Group Financial Results	FY18($m)	FY19($m)
Revenue	43.2	45.1
Product commissions(1)	(4.6)	(2.0)
Revenue (net)	38.6	43.1
Cost of operations	(7.3)	(7.3)
Gross margin	31.3	35.8
ofGM%netrevenue	812%	831%
Expenses:
Information Technology(2)	(6.7)	(6.0)
Sales & Marketing	(7.5)	(9.4)
General & Admin	(8.3)	(9.0)
Total expenses	(22.5)	(24.4)
EBITDA (underlying)	8.8	11.4
Share schemes(3)	(1.1)	(2.0)
D&A(4)	(1.0)	(1.9)
EBIT	6.7	7.5
Arbitration & restructure(5)	(1.8)	(1.6)
FX & other(6)	(0.0)	(0.5)
NPBT	4.9	5.4
Tax(7)	(3.5)	(2.9)
NPAT	1.4	2.5

Key financial highlights

(1) Product commissions relate to Smartfunds, with reductions from fund outflows during the year

(2) Information Technology expenses excludes R&D capex of $4.7 million (FY19) and $2.3 million (FY18)

(3) Expense relates to phasing of long term incentives (performance rights) under the Company's employee share scheme

(4) Includes amortisation of intangibles from software R&D (3 years) and Plum and Wensley Mackay acquisitions (5 years)

(5) Refer slide 16 for detailed breakdown

(7) FY19 Aus tax estimate at 27.5% company tax rate

Industry tailwinds

Australia

Specialist platforms market share predicted to grow from 5% to 12% in 5 years1

UK

Over-concentration of platform tech from 2-3 providers could lead to an innovation stalemate

International

Increased regulatory requirements forcing advisers to adapt from a front-loadedcommissions model to a fee-for-service model

1 UBS Global Research, Australian Diversified Financials, May 2019

Upgrade to a full-service platform

Praemium's Integrated Managed Accounts platform adds IMA functionality to its SMA capability. In Australia, the upgrade represents a 40-fold increase in available market from the $21bn SMA market to the overall $858bn platform market.1

Praemium is now a one-stop-shop with an expanded menu of single assets for IMA

In February 2019 Praemium released its innovative Integrated Managed Accounts platform.

• The fully integrated platform provides wealth managers the ability to construct the full breadth of managed accounts solutions for their clients via a seamless digital platform
• The integrated platform includes:
  • Custodial Separately Managed Accounts (SMA) and Individually Managed Accounts (IMA), plus
  • Non-custodial Virtual Managed Accounts (VMA) to underpin MDAs, IDPS and similar structures, and
  • Unified Managed Accounts (UMAs) that enable a consolidated view of custody and non-custody investment assets.

Supported by a major re-brand, new website and the 'Welcome to the Upgrade' marketing campaign

1Strategic Insight (Plan for Life), March 2019 & Institute of Managed Accounts Professionals, Dec 2018

VMAAS – a complete administration service

Providing full administration, including:

• Mail processing
• Account reconciliation
• Corporate action elections and processing
• Billing and fee generation
• Quarterly reporting
• Annual tax statements
• Optional year-end SMSF accounting, audit and lodgment

Built on Praemium's unique portfolio capabilities:

• Automatically reconstructs all portfolios' tax position after ATO rulings
• Complex corporate actions with history from 1985, CGT optimisation and tax reporting
• Performance benchmarking supported by an unmatched range of market indices
• Handles the most complex investments including international and stapled securities
• Automates AMIT rules for managed funds
• Broad investment range: all ASX-listed and 5,000 int'l equities, 700 local and int'l bonds, funds, options, fixed interest

ATO to gather 20 billion digital transactions in the year ahead1 , accurate annual tax reports will be a critical

Service launched in December 2017 Strong uptake in 2H FY2019

International, now growing strongly

UK/Int'l is well placed with Praemium's proprietary technology

*"*Re-platforming has without doubt been the most disruptive activity in the platform space in recent years. When adviser platforms have tried to shift their underlying technology from one provider to another, it has caused havoc for the advisers, paraplanners and administrators who are simply trying to service their clients."

• Professional Adviser 29 July 2019

In the UK, three tech providers underpin 77% of platform FUA. Consolidation could reduce this to just two.1

Praemium's next-gen platform can better serve the UK advice market:

• Proprietary tech leveraging global experience
• Innovative, responsive, agile
• Global, multi-currency
• Excellence in SMA rebalancing
• Excellence in reporting
• FATCA-compliant solution for US tax-payers
• Global ex-pat pension solutions
• Unified discretionary and advisory (SMA & IMA) in a single structure

Good progress for WealthCraft

Portfolio administration (VMAAS)

Leverage excellence in non-custodial reporting for HNW clients

Custodial managed accounts

SMA, IMA, MDA, FATCAcompliant, ex-pat super/pensions

Cloud based CRM, fact-find, risk profiling, gap analysis, digital acceptance

Adviser Portal

Investment management (Smartim)

In-house professionally managed multi-asset, multi-currency model portfolios