PRAEMIUM LIMITED — Interim / Quarterly Report 2016

Jul 14, 2016

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Praemium records 2[nd] highest quarterly inflows

15 July 2016, Melbourne: Praemium is pleased to report that quarterly inflows were the second highest on record, with gross platform and managed fund inflows of $432 million. These inflows, a 33% increase from the prior quarter, comprised $313 million for the Australian business and $119 million for the International business.

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----- Start of picture text ----- Gross Inflows 500 Aust ($m)Int 400 300 200 100 -14, Q1 14, Q2 14, Q3 14, Q4 15, Q1 15, Q2 15, Q3 15, Q4 16, Q1 16, Q2----- End of picture text -----

In Australia, 14 new white-label services were launched and 38 new firms signed up to the Praemium Separately Managed Account (SMA) platform in FY2016. These new firms contributed 18% of total asset inflows for the financial year, and Praemium expects to see fund growth accelerate from several new dealer groups currently in the process of adopting Praemium’s SMA platform technology.

The $119 million in inflows for the International platform represents a 12% increase over the prior quarter. Despite volatile European markets, inflows have been maintained from a diversified global client base. In particular, assets in the innovative new Smartfund 80% Protected funds had reached £60 million at 30 June 2016, a 43% increase on the March quarter.

Funds under administration (FUA) of the SMA platform have grown 27% in the 2016 financial year to $4.8 billion. FUA for the Australian business achieved an annual increase of 26% to $3.0 billion, while FUA for the International business increased 30% to £923 million (equivalent to A$1.76 billion*).

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----- Start of picture text ----- 5,000 FUA, platform & fundsAust ($m)Int 2,500 -14, Q1 14, Q214, Q314, Q4 15, Q1 15, Q215, Q315, Q4 16, Q1 16, Q2Refer to Appendix for quarterly FUA movement----- End of picture text -----

Praemium’s in-house investment proposition of SMA model portfolios and multi-asset funds grew to $471 million as at 30 June 2016. This represents a 44% increase over the year, further improving the revenue diversification of the International business.

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----- Start of picture text ----- 500 Smart Investment Management FUA($m) 400 ModelsFunds 300 200 100 -14Q1 14Q2 14Q3 14Q4 15Q1 15Q2 15Q3 15Q4 16Q1 16Q2----- End of picture text -----

Praemium’s CEO Michael Ohanessian commented, “We are delighted to report another strong quarter of growth across the business. Our continued investment in innovative functionality, built upon Praemium’s core strengths in portfolio reporting and auto-rebalancing, will ensure we retain our position as the leading global SMA platform. Continued innovation in our accountant-strength portfolio reporting for non-custodial assets has resulted in the signing of a leading financial institution in the June quarter (refer announcement Praemium sign up JBWere on 29 June 2016).

“Despite ongoing uncertainty in the UK as a consequence of the Brexit decision, inflows in the June quarter and into the new financial year have remained strong due to our global reach and expanded product range. We expect this trend to continue.

“The recent depreciation of UK sterling (GBP) will impact Praemium in the two ways. The first impact is GBP-held foreign currency will be reported at lower value in $AUD, resulting in unrealised foreign exchange losses. The second impact will be to reduce operating losses reported in $AUD. Based on UK results in GBP (pre-audit) for the 2016 financial year, revenue growth was 66% while expenses were up 20%, highlighting the improving financial trend as the UK business approaches profitability.”

Appendix: FUA and flows by region

$ million	Mar 2016	Inflows	Other^	Jun 2016
Australia	2,851	313	(152)	3,012
International	1,665	119	(21)	1,763
Total	4,516	432	(173)	4,775
International (£)	856	62	5	923

*Average GBP FX for quarter: 0.52 (prior quarter 0.51) ^Other includes changes in market value of assets, foreign exchange movements (for International FUA) and fund outflows.

About Praemium (ASX: PPS): 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