Delivering client confidence A message from the CEO The investments - PowerPoint PPT Presentation

Half Year Results Presentation 19 February 2020 A WORLD OF INVESTMENTS Delivering client confidence

A message from the CEO “The investments we have made to expand our people capabilities and the number of markets we compete in, are beginning to have a positive impact on our financial results. We are pleased to deliver 21% revenue growth, 50% EBITDA growth and positive cashflow for the half year versus the prior corresponding period. This is very encouraging considering we are in the process of upgrading our Mike Wright business model and transitioning to One Platform, which should deliver CEO Xplore Wealth additional benefits for shareholders. With our upgraded capabilities and enhanced customer offering we plan to sustainably grow our business in 2020.“ Xplore Wealth Ltd Suite 1, Level 5 28 Margaret Street Sydney NSW 2000 2 A WORLD OF INVESTMENTS

Results summary Delivering improved early results Revenue ($m) FUA ($b) Net Operating Cashflow ($m) 15 20 2.5 15.89 1.9 11.3 2 13.4 14.38 15 13.22 9.3 1.5 10 1 FUA up Revenue up Positive 10 0.5 0.5 20.2% pcp 20.9% pcp operating 5 0 cashflow 5 -0.8 -0.5 0 0 -1 Dec-18 Jun 19 Dec-19 H1 FY19 H2 FY19 H1 FY20 H1 FY 19 H2 FY19 H1 FY20 Net Funds Flow ($m) Underlying EBITDA ($m) Underlying EBITDA Margin (%) 3 800 20 722 18.9 2.5 600 2.5 15 2 10.7 Strong Underlying EBITDA 1.5 400 10 1.2 uplift in EBITDA* up margin 6.5 1 181 net flows 50% pcp growth pcp 0.6 200 5 0.5 25 0 0 0 H1 FY19 H2 FY19 H1 FY20 H1 FY19 H2 FY19 H1 FY20 H1 FY19 H2 FY19 H1 FY20 * refer to slide 16 for definition 3 A WORLD OF INVESTMENTS

Xplore Wealth at a glance Our Purpose > Enabling our clients to confidently manage, protect and grow their clients’ wealth Growth strategies Fast facts Where we compete  15+ years specialising in the 1. Leverage our niche, agility and size to excel in tailored offers Core Markets Managed Account market with such as MDA, tailored investment management, white labelling  Retail Platform ($872bn) ~$16bn FUA and insights  Superannuation ($2.9tr)  Managed Accounts ($71bn)  An aligned platform with three 2. Leverage our aligned Platform, fully integrated, with three Products distinctive client offers distinct offers, fully paperless and systemised  MDA  Wrap, including SMAs  Direct HIN  An RSE licence holder, one of 3. Build a low cost operating model within the Specialist Platform  Super Services – RSE/Admin only 110 in the market Providers, that is highly scalable Client Segments  IFAs  An advised only platform 4. Take to market new product and service offerings to continually  Full Service Stock Brokers  Licensed Advised business disrupt and attack the large insto Retail Platforms  Independent - do not Client Channels – Advised only manufacture funds or own an 5. Upgrade to a values based culture, driving the right behaviours Advice AFSL and decision making process to support our clients 4 A WORLD OF INVESTMENTS

1. Leverage our niche, agility and scale Specialised expertise in tailored offers and insights to support our clients grow their business, their way MDA Offer Wrap Offer HIN Offer Super Offer Insto Offer  Flexible legal structures  Manage model portfolios  No custody  Tailored sub-plan / division  Fully tailored, be-spoked  Manage model portfolios  Trade international assets  Tailored administration  Supports emerging  Joint build  Deep investment choices  Flexibility to deduct super  Tailored tax reporting superannuation funds  Dedicated resources  Wholesale MDA offer  ASX non broker participant  Manage own model advice fee from Wrap  Integrate to trading & client  Trade international assets  Broker of choice (settlement) available portfolios portals  3 rd party MDA administration  Flexible modelling tool  Corporate action handling  100% White labelled (~6  100% white labelled (2  Broker of choice  100% White labelled (~30 flexibility clients) clients)  Flexible modelling tool  100% White labelled clients)  100% White labelled (~40 clients) Business model provides shared services for investment management, product, risk, legal, etc 5 A WORLD OF INVESTMENTS

2. Leverage our aligned Platform A platform empowering advisers with choice to support their Best Interest Duty obligations An aligned platform with three offers to choose from Plus choose suitable features 1 2 1 Discretion 3 Direct HIN 2 Wrap Investment Platform W/sal e White Direct Intl - Bespoke Invest Mgt - ASX - Super, Pension, Invest Managed Investors FX Offers offer labelled Mkts - HNWI - Linked cash account - Mass Affluent MA - Practice Services - Reporting - SMA, Intl, Ccy Discretion Yes (MDA & SMSF, Yes Yes Yes Yes (MDA) models) Investment Super, SMSF, Wrap No Yes Yes (models) Pension, Yes Yes (retail super) Investments SMSF, Direct HIN Yes Yes Yes (models) No No Investment A Platform > Empowering, Choice, Aligned 6 A WORLD OF INVESTMENTS

3. One Platform building a low cost operating model Xplore Wealth is building a highly scalable and competitive model to drive operating leverage — Mostly paperless — Fully integrated model — One Platform, for all offers — Processes mostly systemised — Highly scalable — Open Banking ready — Key measure basis points/$ of FUA Source : The Strategy Journey Framework by Julie Choo 7 A WORLD OF INVESTMENTS

4. Take to market new products, services and offers Planned 2020 roll out of new disruptive products and offers with the intention of capturing higher net inflows New Offers New Products MDA MDA 3rd Party Direct Retail Advised Foreign Wholesale HIN International Client Cash MDA Admin Exchange *  Fully integrated from  Trade direct listed  Less obligations  292 MDA provider  RBA official cash for  Wholesale panel to trade to settlement international assets imposed licences, 65% active all offers ensure best FX rate  No CGT from Retail to  ASX only + reporting  16 markets available  Strategic (re)pricing  Provide proven full  FX can be held within  Seamlessly added to Wholesale MDA & corporate actions review for all offers MDA administration models  Allows access to  Linked cash account  Differentiated pricing  Foreign currency managed portfolios solution  Advice AFSL uses unregistered schemes for dividends and schedules within accounts their MDA provider advice fees certain offers  Efficiencies passed licence  Upgraded onto clients via pricing Investment modelling * At initial stage tool Launch Q4 2020 Launched Feb20 Launch H2CY20 Launched Feb20 Launch Q3 2020 Launch H2CY20 Client retention. Also new Possible new revenue. Allows unregistered schemes. New advisers, clients, FUA and New advisers, clients, FUA Better deal for client cash advisers, clients, FUA and Transparent and fair deal. New advisers, clients, FUA and revenue, with reduced reg risk and revenue. Completes revenue revenue One Platform offer 8 A WORLD OF INVESTMENTS

5. Upgrade to our values based culture A culture that nurtures the right behaviours, effort and actions to glue together all strategic themes Our initiatives Our Values Our framework BELIEVING – build   Client confidence New Operating model Approach what, how and who we are  Group intranet  to Align all work practices  Empowering and policies to values “desired”  Development program(s) BELONGING – built  Simplify complexity  Quarterly recognition culture bottom up by our people, program  Professionalism for our people  Share ownership program  Staff innovation program  Entrepreneurial  Staff communications BEHAVING – agree plan on behaviours to guide us  Respect all when no one is watching 9 A WORLD OF INVESTMENTS

2020 Execution Report We have prioritised, we are executing and we are getting things done Upgrading the business Take to Market Plan One Platform Program With a winning three year strategy. With the purpose of sustainably growing our To create business efficiencies and savings. business.   A new three year strategic plan  Completed a review of current sales team 19 initiatives defined  Cultural workshops completed. Corporate  and commenced realignment to achieve The program was launched in Q1 with values and behaviours defined. the desired team structure and the appointment of a Program  Aracon Superannuation Pty Ltd provided composition Manager   APRA with an upgraded three year New Distribution Manager for Victoria 5 initiatives are well advanced, 5 have strategic business plan and two Aracon hired commenced and a further 3 are in  Superannuation Fund Board members Commenced work on new retail HIN initialising stage appointed product 10 A WORLD OF INVESTMENTS

New Customers in FY20 Implementations Underway – Advised Clients Onboarded – Wrap Super All Offers 11 A WORLD OF INVESTMENTS