PRAEMIUM LIMITED — Interim / Quarterly Report 2012

Feb 21, 2012

Praemium Limited . FY2012 Half-Year Results Presentation

Michael Ohanessian – CEO 21 February 2012

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Disclaimer

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 (21 February 2011). 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 Praemium Group or any of its related bodies corporate.

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Agenda

Group Overview H1 FY2012 Summary

Forward Plan Questions?

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Group Overview

H1 FY2012 Summary Forward Plan Questions?

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What we do

Praemium Australia

Delivers technology and services to our clients, enabling them to efficiently administer investor portfolios

Praemium UK

Owns and operates portfolio investment platforms complete with custody, legal structures and administration

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Product landscape

Core Technology

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Investment Register
CGT Engine
Corporate Action
Processing
Data Feeds
Reconstruction Data
Rebalancer
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Modules

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Portfolio
Administration
Services (PAS)
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Separately
Managed
Accounts (SMA)
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Wrap
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Clients

Accountants SMSF Administrators Financial Planners Brokers Corporate Accounts

Blackrock

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Praemium UK
( dps & SMARTfund)
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Powerwrap

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PAS—A proven technology

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A comprehensive online
portfolio administration
service…
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Corporate action processing Sophisticated tax and investment reporting Multi-asset class

Multicurrency Portfolio reconstruction

40% Accountants 40% Financial Planners Approximately 17,000 SMSFs Key corporate clients

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…with a diversified Client
Base
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The market-leading SMA in Australia

The BlackRock Customised Portfolio Service (CPS) is the largest SMA platform in Australia with $490 million FUM as at December 2011

Key features:

• Transparency

• Professionally managed share portfolios

• Automatic reinvesting of dividends

• Reduces trading costs by netting off buys and sells

• Model blending and investor customisation

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The UK SMA

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A discretionary portfolio service where Praemium provides the
administration and custody
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• Advisors maintain the direct investor relationship

Advisor centric

• Advisors “outsource” investment management to professional fund managers

• Fund managers provide model portfolios which advisors can attach to investor accounts

• Professionally managed investments

A rich investor experience

• Model portfolios appropriate to investor circumstances

• Dynamic and rebalanced frequently

• Online viewing and transparency

• Beneficial ownership

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Group Overview

H1 FY2012 Summary

Forward Plan Questions?

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Half-Year Achievements

Strategic priority	Progress during the period	Progress during the period
Complete implementation of cost-reduction initiatives		Company restructure commenced September 2011. On target to achieve annualised savings of $3 million, approximately a 16% reduction on FY2011’s cost base
Refocus sales effort on V-Wrap to maintain leadership position in Australia		Commenced strategic review of V-Wrap product offerings. Implemented new sales structure in October 2011 targeting sales growth
Continue to build funds on platform in the UK		15% growth during the half year from £283 million to £324 million
Invest in improving service quality to enhance and broaden our relationships with key customers		Commenced a continuous improvement and quality system program in the December quarter

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Revenue profile & KPIs

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Segment Revenue - H1 FY2012 Half Yearly Revenue Trend
11% 2% 8,000 ($000)
7,000
4%
6,000
Other
5,000
UK SMA
4,000
AUS SMA
3,000
AUS PAS
2,000
83%
1,000
-
AUS PAS Aus SMA UK (SMA) Other H1 FY10 H1 FY11 H1 FY12
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Note: FY11 included $1.1m for Powerwrap’s annual licence revenue issued as shares.

Service	Key Performance Indicator	Dec 2011	Dec 2010	% Change
PAS: Australia	V-Wrap Portfolios	44,313	43,969	1%
SMA: Australia	FUA ($M)	490	558	(12%)
SMA: UK	FUA (£M)	324	206	58%

FUA: Funds under Administration

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Financial summary

Results Summary	H1 Dec 11	H1 Dec 10	Change	Change
	$000	$000	$	%
Revenue	5,992	6,987	(995)	(14%)
Expenses	7,642	8,855	(1,213)	(14%)
EBITDA (before restructure costs)	(1,650)	(1,868)	218	12%
EBITDA	(2,854)	(1,868)	(986)	(53%)
Net Loss before Tax	(3,263)	(2,168)	(1,094)	(50%)
Cash at Reporting Date	5,046	4,644	402	9%
Net Assets	7,109	5,494	1,615	29%
Operating Cashflow (before
restructure costs)*	(3,075)	(2,852)	(222)	(8%)
Operating Cashflow	(4,279)	(2,852)	(1,426)	(50%)

*EBITDA & cashflow for the December 2011 half-year includes $1.2m of one-off restructure costs

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Divisional breakdown

Praemium Group Half Year to Dec 11	Aus FY11 $m UK FY11 $m Corporate FY11 $m Group FY11 $m	Aus FY11 $m UK FY11 $m Corporate FY11 $m Group FY11 $m
External Revenue Employee Expenses Operating Expenses Total Expenses EBITDA EBITDA% Restructure Costs Depreciation EBIT NPBT H1 FY12	5.3 0.7 (2.5) (2.4) (0.1) (1.4) (1.0) (0.3)	6.0 (5.0) (2.7)
	(3.9) (3.4) (0.4) 1.4 (2.7) (0.4) 27% (1.0) (0.2) - (0.1) (0.1) - 0.3 (3.0) (0.4)	(7.7) (1.7) (1.2) (0.2) (3.1)
	0.3 (3.2) (0.4)	(3.3)

*Corporate overheads relate to costs associated with operating a public company, including Board of Directors, share registry and public relations costs plus as a percentage allocation for the CEO and Group CFO on investor relations.

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AUS earnings profile

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Solid uplift in profitability
of the Australian business
EBITDA margin has
doubled to 27% in half-
year period from cost
reductions commenced in
October 2011
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Aus EBITDA to Revenue
(%)
30%
25%
20%
15%
10%
5%
0%
H1 FY11 H2 FY11 H1 FY12
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*Powerwrap revenue recognised in September 2010 has been normalised over the full FY2011 year.

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UK business continues to grow

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UK Funds on Platform
(£m)
£350
£300
£250
£200
£150
£100
Jun-10 Sep-10 Dec-10 Mar-11 Jun-11 Sep-11 Dec-11
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Solid inflows in a tough
investment environment
FUM up 58% on
December 2010
Praemium continues to
be one of the fastest
growing platforms in the
UK
Major new client signed
in December quarter
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Group Overview

H1 FY2012 Summary

Forward Plan

Questions?

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Delivering in tough markets

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Our UK funds grew 58% while FTSE 100 fell 5%

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V-Wrap portfolios remained stable despite challenging equity markets

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V-Wrap revenue up on improved pricing

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Funds on Australia SMA platform fell in line with ASX 200

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Cash burn significantly reduced

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The future is about the investor

Australia

UK

Future of Financial Advice (June 2012)

Retail Distribution Review (December 2012)

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Ban on conflicted remuneration

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Truly independent, consistent advice

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“Opt in” for all client fees

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Commission bias removed

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A “best interest” duty

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Costs and methods of payment known up front

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Praemium is well positioned

Detailed Reporting

Reporting at the underlying security level Performance reporting at portfolio, model and security level 24 / 2 online client access

Clarity of Transparency of Ownership Fees

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All securities
beneficially held by
investor
In specie transfer in or
out
Investor level tax
control
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All fees are clearly
itemised, including:
• Advice
• Administration
• Investment
Management
• Other
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Strategic priorities

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Continue to improve service
quality to enhance our key
client relationships
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Invest in and modernise V-
Wrap to maintain leadership
position in Australia
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Continue to build funds on
platform in the UK and to roll
out our new Jersey-based expat
service
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Tight cost control and revenue
growth to achieve near-term
profitability
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Group Overview H1 FY2012 Summary Forward Plan Questions?

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