Slide 1: Positioning WisdomTree for Ongoing Success
Positioning WisdomTree for Ongoing Success May 2023
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation contains forward-looking statements that are based on our management’s beliefs and assumptions and on information currently available to our management. Any statements contained in this presentation that do not describe historical facts may constitute for
Slide 3: Table of Contents
Table of Contents Page 1. Company Overview 6 2. Financial and Operating Performance 13 3. Trading Performance 18 4. Tokenization and Digital Assets Opportunity Charts a Course for Accelerated Long-Term Growth 21 5. Powerful Vision for the Future of WisdomTree and Long-term Stockholder Value Creation
Slide 4: WisdomTree Has Transformed its Business to Position it for Innovation, Growth and Margin Expansion
WisdomTree Has Transformed its Business to Position it for Innovation, Growth and Margin Expansion Opportunities and Refreshed its Board and Corporate Governance Practices • We have created the largest pure-play ETP platform with a high-quality, diversified, and differentiated product suite We Have
Slide 5: Company Overview
Company Overview
Slide 6: Who is WisdomTree: A Differentiated and Innovative ETP Platform
Who is WisdomTree: A Differentiated and Innovative ETP Platform Poised for Innovation and Growth We have built a diversified and differentiated product suite with industry leading revenue generation capabilities Footprint Global Presence and Innovation AUM by Product Type <1% 2% <1% $90.7bn 3% AUM a
Slide 7: WisdomTree's Strategy for Growth
WisdomTree’s Strategy for Growth WisdomTree is on the right track with an exceptional vision for the future ✓ WisdomTree is the industry-leading inflower (in 2022 and 2023 YTD) with the highest organic growth % vs. publicly traded U.S. traditional asset managers Ongoing Inflow ✓ Drivers in Place: Mo
Slide 8: WisdomTree's Robust and Sustainable Inflows Continue to Grow AUM
WisdomTree’s Robust and Sustainable Inflows Continue to Grow AUM WisdomTree’s AUM is balanced & levered to current investment themes Q1 Highlights Quarterly Net Flow Breakdown ($ million) + Net flows in Q1 are the 3rd best quarter in history $8,000 $6,000 Ten consecutive + Net flows in the last four
Slide 9: AUM Diversification Increases Performance and Ability to Withstand Volatile Markets
AUM Diversification Increases Performance and Ability to Withstand Volatile Markets Our ETP business has never been stronger. We remain proud of the success of our U.S. Floating Rate Treasury fund (“USFR”), which grew in AUM from ~$2 billion at the end of 2021 to over $15 billion today; however, it
Slide 10: Expanding the Managed Models Franchise is Key to Long-Term Growth
Expanding the Managed Models Franchise is Key to Long-Term Growth By expanding managed models provider partners, deepening current partner relationships, and offering new growth oriented advisor services, WisdomTree will gain a greater share of advisor wallets, which will lead to “stickier” inflows
Slide 11: Our Strategy Will Continue to Provide Scale, Stability, and Margin Expansion
Our Strategy Will Continue to Provide Scale, Stability, and Margin Expansion Well into The Future Through the cycle, organic growth accelerates scale & expands operating margins Illustrative Annual AUM & Revenue Growth Algorithm over the Long-Run (1) Organic Growth Market Return AUM & Revenue Growth
Slide 12: Financial and Operating Performance
Financial and Operating Performance
Slide 13: WisdomTree Organic AUM Performance at a Glance
WisdomTree Organic AUM Performance at a Glance Our disciplined focus on growth and new products has allowed us to outperform our peers and position us for continued growth 2023 Annualized YTD Net Flows as a % of BoP AuM 35.0% 31.4% 30.0% 25.0% 20.0% 17.6% 15.0% 10.0% 7.8% 5.2% 5.0% 2.6% Avg. of 0.5%
Slide 14: WisdomTree's Revenue Growth is Outpacing Competitors
WisdomTree’s Revenue Growth is Outpacing Competitors Our disciplined focus on innovation and new products has allowed us to significantly outperform our peers and position us for continued growth Observations 1yr CAGR (‘22A – ‘23E) 3yr CAGR (‘20A – ‘23E) 5yr CAGR (‘18A – ‘23E) + Revenue profile is i
Slide 15: Strong Momentum Continues in 2023
Strong Momentum Continues in 2023 We outperformed in our most recent quarter in terms of organic growth and revenue generation. Our success allows us to focus on investing in innovation, including our tokenization strategy, which will temporarily lower margins – but better position us in the future
Slide 16: WisdomTree is Out-Maneuvering Industry-Wide Margin Compression
WisdomTree is Out-Maneuvering Industry-Wide Margin Compression The asset management business is tough and getting tougher – WisdomTree is not only outperforming today, but setting itself up for the future Adjusted Operating Margins – Quarterly Changes Since December 2021 Levels 5.0% 5.0% Firm Change
Slide 17: Trading Performance
Trading Performance
Slide 18: WisdomTree Trading Performance at a Glance
WisdomTree Trading Performance at a Glance Our disciplined focus on growth and new products has allowed us to outperform our peers and position us for continued growth Key Highlights as of March 31, 2023 Indexed 3-Year Share Price Performance 300% + WisdomTree had ten consecutive quarters of net inf
Slide 19: Our Disciplined and Innovative Efforts Have Been Well Received by the Market
Our Disciplined and Innovative Efforts Have Been Well Received by the Market Total Shareholder Return appreciation relative to peers reflects our positive momentum and growth trajectory Total Shareholder Return + We have outperformed all traditional asset YTD 1 Year 3 Years managers in the past 3 ye
Slide 20: Tokenization and Digital Assets Opportunity Charts a Course for Accelerated Long-Term Growth
Tokenization and Digital Assets Opportunity Charts a Course for Accelerated Long-Term Growth
Slide 21: WisdomTree's Entrance into Tokenized Asset Market
WisdomTree’s Entrance into Tokenized Asset Market Akin to entrance into ETF market with greater growth potential Global ETP Market Growth in Trillions (2001-2022) (1) Projected Global Tokenized Market Could Reach $16 Trillion By 2030 (2) Trillions of Dollars 16.1 10.1 9.1 13.0 7.8 10.2 6.2 7.6 4.6 4
Slide 22: The Industry is Already Shifting and We are Investing Today
The Industry is Already Shifting and We are Investing Today to Take Advantage of the Future What are Other Asset Managers Doing / Saying? “Traditional finance will get it right” December 2022: BlackRock CEO says “Next Generation for Markets Is Tokenization” “While there will be a set of highly succe
Slide 23: Proactive Investing in Tokenization Positions Us Well for the Future
Proactive Investing in Tokenization Positions Us Well for the Future Launching tokenized products and WisdomTree Primepositions WisdomTree as an early mover in blockchain-enabled finance What • Early mover in tokenization and blockchain-enabled finance • Created the leading platform for regulated as
Slide 24: WisdomTree is Uniquely Positioned to Gain Market Share and Win in its Tokenization Initiatives
WisdomTree is Uniquely Positioned to Gain Market Share and Win in its Tokenization Initiatives • Ability to build and launch tokenization product suite in compliance with regulations Tokenization initiatives enable WT to • Real World Asset Tokenization: gain a larger share of the financial Early Mov
Slide 25: We Have a Results-Oriented Tokenization Strategy
We Have a Results-Oriented Tokenization Strategy Our tokenization strategy is positioned to deliver favorable financial results Strategy Results + WisdomTree PrimeTM – proprietary 1 + Diversifies revenue and drives higher retail channel to save, spend, invest revenue capture on WisdomTree PrimeTM as
Slide 26: Powerful Vision for the Future of WisdomTree and Long-term Stockholder Value Creation
Powerful Vision for the Future of WisdomTree and Long-term Stockholder Value Creation
Slide 27: Summary of Strategic Plans for the Business
Summary of Strategic Plans for the Business “By failing to prepare, you are preparing to fail” – Benjamin Franklin WisdomTree ETFS Capital ✓ Ensure our products continue to be levered to favorable investing themes ✓ Expand ‘Sticky’ AUM / recurring flows by enhancing our Managed Models Top-Line str
Slide 28: Summary Impact of Competing Visions
Summary Impact of Competing Visions “By failing to prepare, you are preparing to fail” – Benjamin Franklin WisdomTree’s Vision for the Future ETFS Capital’s Vision for the Future + Strong Top-Line Growth + Scale Driven Margin Expansion + Tokenization Upside + Sustainable Earnings Growth ‒ Graham T
Slide 29: WisdomTree's State of the Union
WisdomTree’s State of the Union WisdomTree’s best-in-class organic growth and focus on innovation has created strong momentum and has the firm well positioned for future success Flows • Robust annualized growth rate of 31% and inflows in 6 of 8 of our major product categories • 10 consecutive quarte
Slide 30: Our Board Has Completed a Comprehensive Review of WisdomTree's Operations & Strategy
Our Board Has Completed a Comprehensive Review of WisdomTree’s Operations & Strategy
Slide 31: We Entered into a Cooperation Agreement Last Year with ETFS Capital and Lion Point Capital
We Entered into a Cooperation Agreement Last Year with ETFS Capital and Lion Point Capital… In May 2022, we announced enhancements to the composition of our Board of Directors and corporate governance Pursuant to the Cooperation Agreement and consistent with the Company’s ongoing process of Board re
Slide 32: …And Formed a New Committee to Review WisdomTree's Strategy & Operations
…And Formed a New Committee to Review WisdomTree’s Strategy & Operations 50% of OSCO members were directors nominated by ETFS Capital and ETFS Capital made multiple presentations to the Committee Committee Members Committee Charter Smita Conjeevaram Lynn S. Blake The purpose of OSCO was to review
Slide 33: OSCO Completed a Rigorous Business Review which Included Input from ETFS Capital
OSCO Completed a Rigorous Business Review which Included Input from ETFS Capital By the Numbers: The OSCO Process 1,000+ 49 17 Total hours invested in the OSCO Presenters speaking on a range of Sessions on different components of process by WisdomTree topics on WisdomTree’s strategy WisdomTree’s bus
Slide 34: The OSCO Conclusion: Unanimous Board Support of Our Management and Strategy
The OSCO Conclusion: Unanimous Board Support of Our Management and Strategy The full Operations & Strategy Committee, including both directors nominated by ETFS Capital, supported WisdomTree’s strategy No significant change in operations, strategy or management was necessary OSCO’s Conclusion ✓ Ten
Slide 35: We Have Deliberately and Thoughtfully Assembled the Right Board For Continued Success
We Have Deliberately and Thoughtfully Assembled the Right Board For Continued Success
Slide 36: WisdomTree's Diverse Board is Overseeing the Company's Continued Growth and Transformation
WisdomTree’s Diverse Board is Overseeing the Company’s Continued Growth and Transformation… Lynn S. Blake Anthony Bossone, CPA Smita Conjeevaram, CPA Daniela Mielke Shamla Naidoo Independent Director Independent Director Independent Director Independent Director Independent Director Nominee Committe
Slide 37: Led by Independent Directors With Highly Relevant Experience at Global Institutions
...Led by Independent Directors With Highly Relevant Experience at Global Institutions… Lynn S. Anthony Smita Daniela Shamla Win Frank Harold Blake Bossone Conjeevaram Mielke Naidoo Neuger Salerno Singleton III Director (Public) Chairman (Private) Chief Financial Officer Director (Public) Director (
Slide 38: With the Right Mix of Expertise, Experience and Diversity
…And With the Right Mix of Expertise, Experience and Diversity to Continue WisdomTree’s Evolution 44% of WisdomTree’s directors and nominees are female and 33% are racially diverse, above public board averages of 32% and 22%, respectively (1) 100% of our directors and nominees added since 2021 are d
Slide 39: We Added Five New Directors in the Past Three Years and Improved Corporate Governance
We Added Five New Directors in the Past Three Years and Improved Corporate Governance WisdomTree continues to make ongoing enhancements to our corporate governance structure Since 2019 WisdomTree Has Governance and Board Enhancements Feb. ‘19 Jan. ‘22 May. ‘22 Aug. ‘22 Apr. ‘23 Amended bylaws to Har
Slide 40: Our Governance Structure is in the Best Interest of All Stockholders
Our Governance Structure is in the Best Interest of All Stockholders The Stockholder Rights Plan we recently adopted protects WisdomTree and its Aligned with stockholders from a group or single stockholder taking control of WisdomTree Corporate Governance without paying a control premium Practice Be
Slide 41: Executive Pay Tightly Aligned with Outcomes for Stockholders
Executive Pay Tightly Aligned with Outcomes for Stockholders During 2022, WisdomTree performed well against key quantitative metrics on an absolute basis and relative to peers, including net inflows, total revenues, operating margins and relative TSR, and compensated our executives based on this per
Slide 42: Our Directors Have Been Instrumental to Building Our Company
Our Directors Have Been Instrumental to Building Our Company and are Critical to WisdomTree’s Continued Success Frank Salerno and Win Neuger have demonstrated an unwavering commitment to creating stockholder value Frank Salerno Win Neuger Independent Chair Independent Director Experience Experience
Slide 43: Shamla Naidoo Brings Extensive Technology Acumen to the Board
Shamla Naidoo Brings Extensive Technology Acumen to the Board Ms. Naidoo’s election to the WisdomTree Board will provide key technology and digital expertise that aligns with WisdomTree’s strategy and will be instrumental to the Company’s continued success Ms. Naidoo’s Extensive Digital and Cyber Ex
Slide 44: WisdomTree Risks Losing Integral Expertise If ETFS Capital's Nominees Are Elected
WisdomTree Risks Losing Integral Expertise If ETFS Capital’s Nominees Are Elected What Our Board Would Lose What ETFS Capital’s Nominees Would “Add” ✓ A leader in digital transformation, with experience guiding global organizations No public company C-Suite experience in more than 20 countries and
Slide 45: We Have the Right Board to Continue Delivering Value for All Stockholders
We Have the Right Board to Continue Delivering Value for All Stockholders Thoughtful and Comprehensive Transformed Portfolio / Business Delivering Results for Stockholders Board Refreshment ✓ In 2022, WisdomTree had its best year of net inflows since 2015 and exited the year with ✓ WisdomTree has tr
Slide 46: ETFS Capital's Campaign is Unjustified, Unwise and Risks Value Destruction
ETFS Capital’s Campaign is Unjustified, Unwise and Risks Value Destruction
Slide 47: We Have Extensively Engaged With ETFS Capital Prior to its Most Recent Proxy Challenge
We Have Extensively Engaged With ETFS Capital Prior to its Most Recent Proxy Challenge… March 10 – May 25, 2022 December 16, 2022 December 21, 2022 Background of Our Engagement ETFS Capital and Lion Point Capital file a 13D and The Board issues a letter to with ETFS Capital nominate three candidates
Slide 48: Despite This Engagement, ETFS Capital Repeatedly Rebuffed Our Attempts at a Settlement
…Despite This Engagement, ETFS Capital Repeatedly Rebuffed Our Attempts at a Settlement March 13 – 24, 2023 April 4, 2023 April 6, 2023 April 12, 2023 May 17 – 19, 2023 In order to resolve the WisdomTree expresses its Mr. Singleton notes that WisdomTree ETFS Capital delivers notice of intention dist
Slide 49: Graham Tuckwell's Past Raises Serious Questions About His and ETFS Capital's Ethics
Graham Tuckwell’s Past Raises Serious Questions About His and ETFS Capital’s Ethics and Decision Making Graham Tuckwell’s inappropriate actions showcase his lack of suitability to serve on WisdomTree’s Board. We established a 9.99% ownership limit on ETFS Capital to reduce Graham’s influence when Wi
Slide 50: While ETFS Capital Claims to Be Aligned With All Stockholders, Gold Payments Were a Conflict
While ETFS Capital Claims to Be Aligned With All Stockholders, its Interest in the Contractual Gold Payments was a Fundamental Conflict Make no mistake – the resolution of the Contractual Gold Payments obligation is a significant positive for WisdomTree stockholders but this positive outcome undersc
Slide 51: Graham Tuckwell Continues to Have Long-standing Conflicts of Interest
Graham Tuckwell Continues to Have Long-standing Conflicts of Interest Graham Tuckwell’s conflict of interest at 21Shares In 2019, WisdomTree consented to ETFS Capital investing $3mm in 21Shares, a direct competitor of WisdomTree Mr. Tuckwell’s position that WisdomTree should cease crypto activit
Slide 52: Tonia Pankopf Has a History of Stockholder Value Destruction
Tonia Pankopf Has a History of Stockholder Value Destruction Tonia Pankopf is Unqualified to Serve on the WisdomTree Board Tonia Pankopf’s Skills are Not Additive to WT Directors While Director and Audit Committee Chair of Landec Corporation (now known as WisdomTree’s Board & Nominees Lifecore Bio
Slide 53: Bruce Aust Does Not Add Value to WisdomTree's Board
Bruce Aust Does Not Add Value to WisdomTree’s Board Bruce Aust is Unfit to Serve on the WisdomTree Board Bruce Aust’s Skills are Not Additive to WT Directors WisdomTree’s Board & Nominees Mr. Aust’s specialization is in selling IPO listings and is not directly applicable or additive to WisdomTree’
Slide 54: Setting the Record Straight
Setting the Record Straight
Slide 55: ETFS Capital Has a Track Record of Manipulating the Truth to Further Its Own Narrative
ETFS Capital Has a Track Record of Manipulating the Truth to Further Its Own Narrative ETFS Capital is deceiving stockholders by not accurately presenting the facts and cherry-picking data The Reality ETFS Capital’s Misrepresentation of Facts ETFS Capital is knowingly and intentionally ignoring shar
Slide 56: ETFS Capital is Deceiving Shareholders By Cherry-Picking Quotes
ETFS Capital is Deceiving Shareholders By Cherry-Picking Quotes ETFS Capital cherry-picked a quote from the back of a Wall Street research report to intentionally mislead shareholders and paint the Company in a negative light. In reality, the report concludes that the analyst sees increased strategi
Slide 57: Setting the Record Straight and Correcting ETFS Capital's False Claims
Setting the Record Straight and Correcting ETFS Capital’s False Claims ETFS Capital’s False Claims The Facts Stock performance ✓ In 2022, our stock outperformed the market, rising by more than 7.5% during that time period compared to a drop of (8.0%) for the S&P 500. We outperformed the entirety o
Slide 58: Conclusion
Conclusion
Slide 59: WisdomTree Has Transformed its Business to Position it for Innovation, Growth and Margin Expansion
WisdomTree Has Transformed its Business to Position it for Innovation, Growth and Margin Expansion Opportunities and Refreshed its Board and Corporate Governance Practices • We have created the largest pure-play ETP platform with a high-quality, diversified, and differentiated product suite We Have
Slide 60: Protect Your Investment. Reject ETFS Capital's Risky Agenda.
Protect Your Investment. Reject ETFS Capital’s Risky Agenda. Vote the WHITE Proxy Card FOR WisdomTree’s Nominees IMPORTANT We urge you NOT to sign any proxy card from Graham Tuckwell or ETFS Capital Limited VOTE FOR: Lynn S. Blake WITHHOLD VOTE ON: Bruce Aust Daniela Mielke Tonia Pankopf Shamla
Slide 61: Appendix
Appendix
Slide 62: Court Evidence Showing Graham Tuckwell Violated His Fiduciary Duties
Court Evidence Showing Graham Tuckwell Violated His Fiduciary Duties, Mistreated Minority Stockholders And Forced Out Independent Directors Courts found Mr. Tuckwell acted in a high-handed self-serving manner, violating multiple corporate governance practices Selected quotes from Royal Court proceed
Slide 63: Our Qualified Board Nominee's Backgrounds
Our Qualified Board Nominee’s Backgrounds Lynn S. Blake Daniela Mielke Age: 58 Age: 57 Committees: Compensation Lynn S. Blake has served as an independent consultant since October 2021. Previously, Ms. Daniela Mielke is Managing Partner of Commerce Technology Advisors, a privately held firm Blake se
Slide 64: Our Qualified Board Nominee's Backgrounds (Cont'd)
Our Qualified Board Nominee’s Backgrounds (Cont’d) Win Neuger Shamla Naidoo Age: 73 Age: 58 Committees: Compensation, Nominating and Governance (Chair) Win Neuger is an independent investor and consultant. From July 2014 until June 2015, he Shamla Naidoo is Head of Cloud Strategy and Innovation of N
Slide 65: Our Qualified Board Nominee's Backgrounds (Cont'd)
Our Qualified Board Nominee’s Backgrounds (Cont’d) Frank Salerno Jonathan Steinberg Age: 63 Age: 58 Chair of the Board Committees: Compensation (Chair) Frank Salerno has served as our non-executive Chair of the Board since October 2019 and Jonathan Steinberg founded WisdomTree and has served as Chie
Slide 66: ESG at WisdomTree
ESG at WisdomTree Sustainability and responsibility are embedded throughout our business, which we believe benefits investors in our products, employees, stockholders and other stakeholders Environmental, Social, and Governance (“ESG”) principles are a significant part of WisdomTree’s global appro
Slide 67: WisdomTree Has Established a Strong Governance Framework Around ESG Pillars
WisdomTree Has Established a Strong Governance Framework Around ESG Pillars ESG Governance Approach to ESG Governance Board of Directors Our ESG Steering Committee includes leaders from The Nominating and Governance Committee reviews and each department across the firm globally provides oversight an
Slide 68: WisdomTree Has A Responsible Investing Strategy and Offers a Suite of ESG-oriented Investment Products
WisdomTree Has A Responsible Investing Strategy and Offers a Suite of ESG-oriented Investment Products WisdomTree’s Approach to ESG: Screen, Integrate, Align U.S. Core ESG 1 Define Universe Methodology Provide exposure to U.S., developed international, or emerging markets equities WisdomTree’s core
Slide 69: WisdomTree is Committed to Promoting Diversity, Equity & Inclusion (DEI)
WisdomTree is Committed to Promoting Diversity, Equity & Inclusion (DEI) Diverse Leadership and Employee Base Diverse Board of Directors We recognize that a diverse set of perspectives is critical to innovation and have Consistent with our corporate governance guidelines, WisdomTree appointed or
Slide 70: Non-GAAP Financial Measurements
Non-GAAP Financial Measurements In an effort to provide additional information regarding our results as determined by GAAP, we also disclose certain non-GAAP information which we believe provides useful and meaningful information. Our management reviews these non-GAAP financial measurements when eva
Slide 71: Non-GAAP Financial Measurements
Non-GAAP Financial Measurements Adjusted Operating Income and Adjusted Operating Income Margin Q4 2021 Q1 2022 Q2 2022 Q3 2022 Q4 2022 Q1 2023 Adjusted operating income Operating revenues 79,175 78,368 77,253 72,414 73,310 82,044 Operating income 22,563 17,689 15,804 14,873 11,719 16,571 Add back: E
Slide 72: Non-GAAP Reconciliation to GAAP Results
Non-GAAP Reconciliation to GAAP Results 72
Slide 73: Reconciliation of US GAAP to Non-GAAP Results
Reconciliation of US GAAP to Non-GAAP Results Three Months ended March 31, 2023 73