Australian Ethical Investment Ltd · ASX:AEF
Australian Ethical Investment — FY2025 Earnings Presentation
48 slides from Australian Ethical Investment's earnings presentation, Aug 28, 2025
Slide 1: Australian Ethical Investment Ltd FY25 Full Year Results
Australian Ethical As Australian Ethical Investment Ltd FY25 Full Year Results John McMurdo (Managing Director & CEO) Mark Simons (CFO)
Slide 2: Contents
cacalen | AS Contents 01 02 03 04 Overview & Financial Results Business update Appendices FY25 highlights
Slide 3: Overview & FY25 highlights
Overview & FY25 highlights
Slide 4: We are a 'pure-play' ethical investment management company
We area ‘pure-play’ ethical investment management company aiieaton | AS e a Successful, fast growing ASX listed company, delivering long term returns to shareholders and investors alike. Authentic, purpose- driven, ethical investment leader making money a force for good and having a positive impact
Slide 5: Growing with a clear, consistent and disciplined strategy
Growing with a clear, consistent and disciplined strategy wu, & + Our Vision Make money a force for good Australian Ethical —+ | AS Growing superannuation scale with ethical investment leadership Maximise growth through our differentiated value proposition, brand resonance and data driven marketing
Slide 6: FY25 - A record result
FY25 - Arecord result Achieved through organic and inorganic successes, disciplined strategic execution, strong cost management and resilience in volatile markets. Australian Ethical | AS $23.8m | $199m | $1194m | $84.5m | 714% FY25 UPAT* FY25 NPAT** Revenue Operating Cost to income up 29% up 68% up
Slide 7: We continue to execute on our strategy which is delivering strong results
aiiuaton | AS We continue to execute on our strategy which is delivering strong results... Strong growth in key metrics and continued 20.90 cents Diluted EPS” Brand awareness \ tl Fa ates ax S-year CAGR 20% strengthening of our business platform sees us up from 11% to 22% well placed for further gro
Slide 8: FY25 saw us delivering against multiple strategic milestones
FY25 saw us delivering against multiple strategic aiiuaton | AS milestones to further enhance the quality of our business Strong brand Business Platform {tt Investment capability 6) Significant lift in brand awareness among ethically minded Australians” 2024 2025 Significant uplift in the perception
Slide 9: Our unique expertise is compelling for customers
aiieaton | AS Our unique expertise is.” compelling for, custome A__)» (Pelivering strong portfolio returns Creating real world impact +) 30-year anniversary for the retail Australian Shares Fund*, achieving 9.7% p.a. return since inception 2.2% above benchmark 10-year anniversary for Emerging Compan
Slide 10: ...and accentuated through the valued work of the Australian Ethical Foundation
...and accentuated through the valued ‘work of the Australian Ethical Foundation... ARK Place-based nature solutions Empowering First Nations people and other communities to protect and restore nature and demonstrate new place-based economic models $2.8m record donation to the Foundation in FY25 © U
Slide 11: ...While the business continues to receive awards and recognition
...While the business continues to receive awards and recognition across many dimensions aiiuaton | AS Superannuation SuperReview Super Money Magazine Awards Roy Morgan Rainmaker ESG Rainmaker SuperRatings GOLD Fund of the Year Awards Best of the Best - Best NEO Brand Awards Leader Rating AAA Qualit
Slide 12: Our success is underpinned by our purpose-driven, high performing culture
Our success is underpinned by our purpose-driven, high performing culture... Attracting key senior talent to deliver our strategy in line with our values: Nathan Parkin Bill Bovingdon, Gavin Goodhand & Chris Dickman Joined as part of acquisition of the Altius team, Head of Equities Head of Private M
Slide 13: Financial results
02. Financial results
Slide 14: FY25 Financial Results
| AS Australian Ethical FY25 Financial Results Strong FY25 profit growth Key themes Key financials ($000) FY25, FY24_ Movement % {>} FY25 operating revenue up 19% driven by average FUM Operating Revenue 119,384 100,304 19% growth, partially offset by lower average blended revenue Rea tenTENSENES . a
Slide 15: Record FUM of $13.94bn, up 34%
Record FUM of $13.94bn, up 34% FUM ($b 14.00 S/o 12.00 I) 2.01 par 10.44 10.00 920 8.00 6.07 6.20 6.00 178 4.05 4,00 2.00 0.00 30 Jun 20 30 Jun 21 30 Jun 22 30 Jun 23 30 Jun 24 © Superannuation & Investments* Institutional * Includes Investments’ funds (reall and wholesale) and SMA, Excludes Institu
Slide 16: Continued positive net flows
Continued positive net flows Key themes - FY25 © Total net flows of $522m with $593m of organic net flows and ($71m) of inorganic outflows from the Altius business © Retail and wholesale net flows of $575m driven by superannuation and the relatively new values-aligned channel © Superannuation net fl
Slide 17: Average FY25 revenue margin lower following Altius Asset Management acquisition
euical” | AS Average FY25 revenue | margin lower following Altius Asset Management acquisition Key themes Average Average revenue FUM (Sbn) margin* © Average FY25 blended revenue margin of 0.92% 140 80% down from 1.02% in FY24 fe 1.60% © The acquisition of Altius was the key factor behind 12.0 the 0
Slide 18: Revenue up 19% to $119.4m
Revenue up 19% to $119.4m Key themes © Revenue increased 19% driven by: + Average FUM growth of 31%, underpinned by positive net flows and positive investment performance, and the Altius acquisition + Partially offset by lower average revenue margin. © $0.6m of other income relates to cost recovery
Slide 19: Expense growth of 14% reflects business growth, Altius and platform strengthening
aiieaton | AS Expense growth of 14% reflects business growth, Altius and strengthening of business platform Key themes © Operating Expenses* increased 14% as we continue to grow the $ business organically and inorganically m 900 © Employee expenses increased 16% driven by capability uplift, which 37
Slide 20: We retain a strong capital position with no debt
aiieaton | AS We retain a strong capital position with no debt With $10.1m surplus above regulatory capital Net Tangible Assets ($ Key themes Group capital position $m FY25 FY24 Cash & term deposits 38.8 36.4 © Strong Balance Sheet with no debt Net cash from operating activities 26.9 22.3 © Strong C
Slide 21: Shareholder metrics
; eaate | AS Shareholder metrics NPAT attributable to shareholders UPAT attributable to shareholders Diluted earnings per share (cps) Dividends (cps) Diluted earnings per share (cps) 751 14.0 20.90 40.02 10.51 70 ABS 6 P.. o | ener vie FY20 FY21 FY22 FY23. FY24 FY25, FY20 FY21 FY22 FY23 FY24 FY25 FY
Slide 22: Business Update
Business Update tn
Slide 23: • • • • • • • • • • • • • •
• • • • • • • • • • • • • • • • • • • • • • • • • • •
Slide 24: Growth to continue into FY26 and beyond
Growth to continue into FY26 and beyond Continued profit growth and sensible reinvestment in the business designed to further strengthen our market position FY26 Outlook © Strong momentum as we head into FY26 with higher brand awareness, asset class expansion into fixed income and private markets, u
Slide 25: Thank you
Slide 26: Appendices
Appendices tn
Slide 27: Appendix 1: UPAT and Cost to Income (CTI) reconciliation
Appendix 1: UPAT and Cost to Income (CTI reconciliation 27
Slide 28: Appendix 1: UPAT and CTI reconciliation
aiieaton | AS Appendix 1: UPAT and CTI reconciliation Key financials (S'UU0) FY25 FY24 Movement % Net profit after tax (NPAT) 20,196 11,531 75% Less: Net (profit)/loss after tax attributable to The Foundation (258) 316 Net profit after tax attributable to shareholders 19,938 11,847 68% Adjustments:
Slide 29: Appendix 2: Investment Performance
Slide 30: Investment leadership
; eaate | AS Investment leadership Long-term returns | Australian Shares Fund Value of $1,000 invested since inception Risk/return over ten years to June 2025 20,000 16.00 16.0 18,000 14.00 14.0 16,000 12.00 12.0 14,000 e = 10.00 10.0 12,000 g = e 40,000 < 8.00 8.0 5 a e 8,000 = 6.00 6.0 6,000 400 4
Slide 31: Australian Shares Fund
; aiiaalen | AS Australian Shares Fund Since Wv 3Y (%pa) SY (%pa) TY (%pa) 10Y (%pa) 20Y (%pa) inception (opa) Retail* 11.6% 11.8% 10.2% 8.8% 9.4% 9.4% 9.7% Benchmark** 13.4% 13.1% 11.6% 79% 9.4% 65% 7.5% Relative Performance (1.8%) (1.4%) (1.4%) 0.9% (0.0%) 2.9% 2.2% Wholesale* 12.3% 12.4% 11.0% 9.
Slide 32: Australian Shares Fund
Australian Shares Fund Rolling 1 Year 60% Net Return S086 © © © S A e S&S Australian Share Fund (Wholesale) Australian Share Fund - Blended 3enchmark 2 s es Sw SX S Rolling 3 Year Net Return’ 250 Australian Ethical 09% 15% 10% 5% 0% 5% — vctralian Share Fund (Wholesale) ——=Auetralian Share Fund - Bl
Slide 33: Emerging Companies Fund
Emerging Companies Fund Since Vv 3Y (%pa) SY (%pa) TY (pa) 10Y (%pa) inception (Mpa) Retail* 8.2% 10.0% 9.0% 10.5% 11.5% 11.5% Benchmark” 9.2% 10.3% 6.3% 4.2% 6.8% 6.8% Relative Performance (1.0%) (0.3%) 2.7% 6.3% 4.7% 4.7% Wholesale* 8.7% 10.5% 9.5% 111% 12.2% 12.2% Benchmark’ 9.2% 10.3% 6.3% 4.2%
Slide 34: Emerging Companies Fund
Emerging Companies Fund Rolling 1 Year 100% Net Return 80% Australian Ethical Emerging Companies Fund (Wholesale) ——=S&P/ASX Small Industrials, Rolling 3 Year 35% Net Return’ 30% 25% 20% 15% 109% Jun16 Dect6 Jun? Dec-7 Juv-18 Dec18 Jun-19 Dec-19 Jun-20 Dec-20 Jun-21 Dec-21 Jun-22 Dec-22 Se HAS 0% v
Slide 35: Balanced Accumulation Option (MySuper)
cuseaien | AS Balanced Accumulation Option (MySuper) Since 1Y 3Y (%pa) 5Y (%pa) TY (%pa) 10Y (%pa) 20Y (%pa) inception* (opa) Absolute Performance ~ 10.5% 8.8% 7.3% 7.0% 6.8% 5.5% 6.4% Benchmark# 6.0% 7.6% 7.3% 6.6% 6.2% 6.3% 6.3% Relative Performance AA% 1.3% 0.0% 0.4% 0.7% (0.7%) 0.1% FY25 Comment
Slide 36: Appendix 3: Additional FUM & Financial details
Slide 37: FUM overview
eaate | AS FUM overview Superannuation FUM of $9.52 billion represents 68% of the total AE] Group FUM Total FUM by product Total FUM by Asset Class = Domestic Equities (incl NZ) lm Intemational Equity ©" Investments - wholesale ‘© Investments - retell = Cash Fixed Income (domestic) ™ Values aligned
Slide 38: FUM by channel
cena’ | AS FUM by channel Super FUM by channel Investment Products FUM by channel © Direct © Advised ™ Employer © Direct © Advised B Institutional ‘All numbers a af 0 June 2025 38
Slide 39: FUM summary - Asset Class & Strategy
FUM summary - Asset Class & Strategy FUM at 30 Jun 25 FUM at 30 Jun 24 Asset Class (Sbn) (bn) Domestic Equities (incl NZ) 4.89 4.45 International Equity 3.40 2.50 Cash 0.69 0.20 Fixed Income (domestic) 3.15 157 Fixed Income (global) 0.64 0.62 Unlisted Property 0.53 0.52 Alternatives 0.64 0.59 Total
Slide 40: Sustainability highlights
Sustainability highlights: Investment portfolio Gg 75% ® 2.3X lower CO, intensity” revenue from sustainable impact solutions* 07 5.2x revenue from sustainable water & investment in renewables agriculture and pollution prevention® and energy solutions’ Our rigorous investment criteria continue to evo
Slide 41: FUM summary - Superannuation
FUM summary - Superannuation Australian Ethical Current Option FUM at 30 Jun 24 FY25 Net flows FY25 Market movement / Other FUM at 30 Jun 25 Investment Fee ($bn) ($bn) ($bn) ($bn) Superannuation Defensive 0.20% 0.18 (0.01) 0.06 0.24 Conservative 0.54% 0.33 0.00 0.06 0.40 Balanced (Accumulation/Pensi
Slide 42: FUM summary - Investment Products
eaate | AS FUM summary — Investment Products Retail Wholesale 7 7 insti Retail Wholesale Values Aligned” Institutional* Total Funds Investment fee Investment fee % % (Sm) (Sm) (Sm) (Sm) (Sm) Income Fund 0.20% 0.20% 14 1241 01 - 13.6 Fixed Interest 0.50% 0.30% 08 28.5 0.2 15.5 45.0 Balanced Fund 1.42
Slide 43: Growth metrics
eaate | AS Growth metrics ‘AE growth metrics FY25 Fy24 FY23 2H25 4H25 2H24 4H24 2H23 4H23 FUM ~ accumulated super (Sbn) 886 769 672 8.86 8.34 7.69 7M 672 6.05 Additional FUM — pension super ($bn) 0.66 0.56 0.48 0.66 0.62 0.56 0.52 0.48 0.45 . FUM - tota super (Sbn) 9.52 8.25 721 9.52 896 8.25 7.63,
Slide 44: Financial Metrics
; ; ; eaate | AS Financial Metrics Financial metrics Fy25 FY24 FY23 2H25 1H25 2H24 1H24 2H23 1H23 FUM based revenue (ex performance fee) ($m) W7 92.9 75.0 57.0 547 48.1 44.8 Ald 33.9 Performance fee ($m) - 02 - - - 02 - - - Member based revenue ($m)* 54 60 BA 27 27 3.0 3.0 27 24 Other ($m) 22 13 1.0
Slide 45: Fees
eaate | AS Fees Additional information Superannuation average Investments average revenue margin revenue margin~ Includes retail, wholesale” and institutional © Margins have reduced over time as we passed on benefits of scale to investors and members through fee reductions $bn $bn © Average revenue
Slide 46: Disclaimer
Disclaimer Australian Ethical Investment Ltd (ABN 47 003 188 930; AFSL No. 229949) (AEl) is the Responsible Entity of the Australian Ethical Managed Funds. Interests in the Australian Ethical Retail Superannuation Fund (ABN 49 633 667 743) (Super Fund) are offered by Australian Ethical Investment Lt
Slide 47: Disclaimer contd.
Disclaimer contd. Zenith- ‘Recommended’ rating applies to the Altius Green Bond Fund, Altius Sustainable Bond Fund, and Altius Sustainable Short Term Income Fund ‘The Zenith Investment Partners (ABN 27 103 182 672, AFS Licence 226872) ("Zenith") rating AUSSO4TAU Altius Green Bond Fund, ‘AUSOOTIAU Al
Slide 48: Australian Ethical Investment Ltd FY25 Full Year Results
Australian Ethical As Australian Ethical Investment Ltd FY25 Full Year Results John McMurdo (Managing Director & CEO) Mark Simons (CFO)
Australian Ethical Investment — FY2025 Earnings Presentation on 6ix