Slide 1: Acquisition of Evidentia and Equity Raising
Generation Development Group | Acquisition of Evidentia and Equity Raising | 1 Acquisition of Evidentia and Equity Raising 10 February 2025 Presenters: Grant Hackett OAM Terence Wong Chief Executive Officer Chief Financial Officer
Slide 2: Disclaimer
Generation Development Group | Acquisition of Evidentia and Equity Raising | 2 Disclaimer IMPORTANT NOTICE AND DISCLAIMER The following notice and disclaimer applies to this investor presentation (Presentation or document) and you should read it carefully before reading or making any other use of th
Slide 3: Disclaimer (cont'd)
Generation Development Group | Acquisition of Evidentia and Equity Raising | 3 Disclaimer (cont’d) Financial data All dollar values are in Australian dollars (A$ or AUD) unless otherwise stated. Prospective investors should also be aware that the pro forma financial information included in this Pres
Slide 4: Disclaimer (cont'd)
Generation Development Group | Acquisition of Evidentia and Equity Raising | 4 Disclaimer (cont’d) Disclaimer The information in this Presentation has been obtained from or based on sources believed by GDG to be reliable. To the maximum extent permitted by law, GDG and Jefferies (Australia) Pty Ltd
Slide 5: Table of contents
Generation Development Group | Acquisition of Evidentia and Equity Raising | 5 Table of contents 1. Transaction overview 2. Overview of Acquisition of Evidentia 3. Acquisition funding and financial impact 4. GDG update and FY25 outlook Appendices a. Managed Account market overview b. Risks c. Intern
Slide 6: Executive Summary
Generation Development Group | Acquisition of Evidentia and Equity Raising | 6 Executive Summary A transformative opportunity for GDG to expand its presence in the rapidly growing and highly attractive Managed Accounts market Generation Development Group Limited (ASX:GDG) (‘GDG’) has entered into a
Slide 7: 1. Transaction overview
Generation Development Group | Acquisition of Evidentia and Equity Raising | 7 1. Transaction overview
Slide 8: Acquisition of Evidentia Group
Generation Development Group | Acquisition of Evidentia and Equity Raising | 8 Transaction overview A transformative opportunity for GDG to expand its presence in the rapidly growing and highly attractive Managed Accounts market Acquisition of Evidentia Group Transaction funding ▪ Generation Develop
Slide 9: Introduction to Evidentia
Generation Development Group | Acquisition of Evidentia and Equity Raising | 9 Introduction to Evidentia Evidentia is one of Australia’s leading providers of investment management and tailored Managed Account solutions ▪ One of Australia’s leading providers of investment management and tailored Mana
Slide 10: Strategic and financial rationale
Generation Development Group | Acquisition of Evidentia and Equity Raising | 10 Strategic and financial rationale The combined business will lead the tailored SMA, off-the-shelf SMA and MDA segments with minimal overlap in clients, products and markets Evidentia is fast growing and a leading Evident
Slide 11: GDG go-forward organisation structure
Generation Development Group | Acquisition of Evidentia and Equity Raising | 11 GDG go-forward organisation structure Evidentia to combine with Lonsec Investment Solutions 100% 100% 100% Investment Annuities Research & Ratings Managed Accounts Organisation structure on a go- bonds forward basis ▪ Ev
Slide 12: 2. Overview of Acquisition of Evidentia
Generation Development Group | Acquisition of Evidentia and Equity Raising | 12 2. Overview of Acquisition of Evidentia
Slide 13: Overview of Evidentia
Generation Development Group | Acquisition of Evidentia and Equity Raising | 13 Overview of Evidentia Evidentia is one of Australia’s leading providers of investment management and tailored Managed Account solutions Business Overview Financial Snapshot ($m) ▪ Evidentia is one of Australia’s leading
Slide 14: Overview of Evidentia (continued)
Generation Development Group | Acquisition of Evidentia and Equity Raising | 14 Overview of Evidentia (continued) Evidentia is one of Australia’s leading providers of investment management and tailored Managed Account solutions Strong FUM Outlook1 Highly Experienced Team FUM ($bn) 30 28.5 Peter Smit
Slide 15: Strategic and financial rationale
Generation Development Group | Acquisition of Evidentia and Equity Raising | 15 Strategic and financial rationale The combined business will lead the tailored SMA, off-the-shelf SMA and MDA segments with minimal overlap in clients, products and markets • The Australian Managed Accounts sector is cur
Slide 16: Evidentia is fast growing and a leading player in a highly attractive growth industry
Generation Development Group | Acquisition of Evidentia and Equity Raising | 16 1 Evidentia is fast growing and a leading player in a highly attractive growth industry The Australian Managed Accounts sector is a $200bn+ market opportunity that is highly fragmented, with the Tailored SMA segment, whe
Slide 17: Track record of significant growth that is expected to continue
Generation Development Group | Acquisition of Evidentia and Equity Raising | 17 2 Track record of significant growth that is expected to continue Evidentia is a high growth business and is expected to outpace the already high growth, attractive Managed Accounts market Funds under management (FUM, $b
Slide 18: Track record of significant growth that is expected to continue
Generation Development Group | Acquisition of Evidentia and Equity Raising | 18 2 Track record of significant growth that is expected to continue Strong growth supported by embedded earnings in current client backbook Evidentia Business Model Embedded FUM from Existing Backbook Supports Earnings Upl
Slide 19: Substantial anticipated combination benefits between Evidentia and Lonsec Investment Solutions
Generation Development Group | Acquisition of Evidentia and Equity Raising | 19 3 Substantial anticipated combination benefits between Evidentia and Lonsec Investment Solutions Acquisition brings together two of the leading and fastest growing Managed Accounts providers with $25bn+ combined FUM Pro
Slide 20: Highly skilled and experienced leadership team with track record of driving growth
Generation Development Group | Acquisition of Evidentia and Equity Raising | 20 4 Highly skilled and experienced leadership team with track record of driving growth Evidentia have a highly skilled and experienced leadership team, who will remain aligned post-Acquisition via equity rollover Business
Slide 21: Acquisition of Evidentia is logical next step post Lonsec acquisition
Generation Development Group | Acquisition of Evidentia and Equity Raising | 21 5 Acquisition of Evidentia is logical next step post Lonsec acquisition Evidentia acquisition will help accelerate GDG’s Managed Accounts strategy following the acquisition of Lonsec Successful Acquisition of Lonsec Evid
Slide 22: Acquisition is financially attractive to GDG
Generation Development Group | Acquisition of Evidentia and Equity Raising | 22 6 Acquisition is financially attractive to GDG Acquisition of Evidentia is expected to be EPS accretive1 in the first full year of ownership (FY26) Significant growth Maintain strong EPS accretive Synergies identified ou
Slide 23: 3. Acquisition funding and financial impact
Generation Development Group | Acquisition of Evidentia and Equity Raising | 23 3. Acquisition funding and financial impact
Slide 24: Acquisition overview
Generation Development Group | Acquisition of Evidentia and Equity Raising | 24 Acquisition overview Transaction ▪ GDG is acquiring 100% of Evidentia Group Holdings Pty Ltd Overview ▪ $320.0m up-front Enterprise Value plus a potential Earn Out of up to $40.0m, subject to customary completion adjustm
Slide 25: Equity Raising
Generation Development Group | Acquisition of Evidentia and Equity Raising | 25 Equity Raising ▪ Fully underwritten $287.9m Placement and Entitlement Offer (together, the ‘Equity Raising’), comprised of: Offer Size & - $114.4m Institutional Placement (‘Placement’); and a Structure - $173.5m 1 for 7.
Slide 26: Equity Raising (cont'd)
Generation Development Group | Acquisition of Evidentia and Equity Raising | 26 Equity Raising (cont’d) ▪ Retail Entitlement Offer to raise approximately ~$60.7m Retail Entitlement ▪ The Retail Entitlement Offer will open on Friday 14 February 2025 and close on Thursday 27 February 2025 Offer ▪ Elig
Slide 27: Sources & uses of funds
Generation Development Group | Acquisition of Evidentia and Equity Raising | 27 Sources & uses of funds Sources & uses of funds Reconciliation to up-front enterprise value $m $m Placement 114.4 Cash Consideration to Evidentia shareholders 244.9 Entitlement Offer 173.5 Scrip Consideration to Evidenti
Slide 28: Equity Raising Timetable
Generation Development Group | Acquisition of Evidentia and Equity Raising | 28 Equity Raising Timetable Event Date Announcement of Acquisition and Equity Raising, together with Investor Presentation Monday 10 February Announcement of results of the Institutional Entitlement Offer, trading resumes o
Slide 29: 4. GDG update and FY25 outlook
Generation Development Group | Acquisition of Evidentia and Equity Raising | 29 4. GDG update and FY25 outlook
Slide 30: Key Highlights
Generation Development Group | Acquisition of Evidentia and Equity Raising | 30 GDG has delivered record sales during 1H251 Key Highlights ▪ The December quarter delivered $250m of quarterly inflows being 61% up on previous corresponding period and was the highest quarter in the history of Generatio
Slide 31: GDG is well-positioned for future growth post acquisition and combination of Evidentia and Lonsec
Generation Development Group | Acquisition of Evidentia and Equity Raising | 31 GDG is well-positioned for future growth post acquisition and combination of Evidentia and Lonsec Investment Solutions Historical strategic objectives Current strategic objectives Future strategic objectives Where GDG ha
Slide 32: Generation Development Group outlook
Generation GenerationDevelopment DevelopmentGroup Group | |Acquisition Acquisitionof ofEvidentia Evidentiaand andEquity Raising|| 32 EquityRaising Generation Development Group outlook Confident that the current sales momentum 1H FY25 FUM up 31% on previous will continue – capitalising on the legisla
Slide 33: Appendices: Managed Account market overview
Generation Development Group | Acquisition of Evidentia and Equity Raising | 33 Appendices Managed Account market overview
Slide 34: Full coverage across Managed Account market
Generation Development Group | Acquisition of Evidentia and Equity Raising | 34 Full coverage across Managed Account market Ready-Made / Off the Shelf Tailored (Licensee) Customised (Practice/Adviser) SMA Ready-Made Managed Accounts Tailored Managed Accounts Tailored Portfolios at Scale A range of p
Slide 35: Appendices: Risks
Generation Development Group | Acquisition of Evidentia and Equity Raising | 35 Appendices Risks
Slide 36: Risks specific to Generation Development Group
Generation Development Group | Acquisition of Evidentia and Equity Raising | 36 Risks specific to Generation Development Group GDG derives a significant proportion of its earnings from fees and charges based on the level of funds under management (FUM). The level of FUM will reflect (in addition to
Slide 37: Risks specific to Generation Development Group (cont'd)
Generation Development Group | Acquisition of Evidentia and Equity Raising | 37 Risks specific to Generation Development Group (cont’d) Failures or breaches of data protection and systems security can cause reputational damage, regulatory impositions and financial loss. The legal and regulatory envi
Slide 38: Risks specific to Generation Development Group (cont'd)
Generation Development Group | Acquisition of Evidentia and Equity Raising | 38 Risks specific to Generation Development Group (cont’d) Successful product development in the financial services sector requires a material amount of capital, time, resources and various approvals before it can be brough
Slide 39: Equity Raising and Acquisition risks
Generation Development Group | Acquisition of Evidentia and Equity Raising | 39 Equity Raising and Acquisition risks GDG has undertaken financial, operational, business and other analysis of Evidentia in order to confirm its attractiveness to GDG and whether to pursue the Acquisition. It is possible
Slide 40: Equity Raising and Acquisition risks (cont'd)
Generation Development Group | Acquisition of Evidentia and Equity Raising | 40 Equity Raising and Acquisition risks (cont’d) GDG has entered into an underwriting agreement with the Jefferies (Australia) Pty Ltd and MA Moelis Australia Advisory Pty Ltd (collectively, the Underwriters) under which th
Slide 41: Evidentia business risks
Generation Development Group | Acquisition of Evidentia and Equity Raising | 41 Evidentia business risks Ability to maintain high Evidentia is a high growth business. If new client wins, growth in FUA, and / or conversion of client FUA to FUM materially diverges from expectations Evidentia may fail
Slide 42: General risks
Generation Development Group | Acquisition of Evidentia and Equity Raising | 42 General risks General economic Changes in general economic factors such as economic growth, interest rates, exchange rates, inflation and business and consumer confidence and general market factors may have an environmen
Slide 43: General risks (cont'd)
Generation Development Group | Acquisition of Evidentia and Equity Raising | 43 General risks (cont’d) GDG prepares its general purpose financial statements in accordance with IFRS and the Corporations Act. Australian Accounting Standards are subject to amendment from time to time, and any such chan
Slide 44: Appendices: International Offer Restrictions
Generation Development Group | Acquisition of Evidentia and Equity Raising | 44 Appendices International Offer Restrictions
Slide 45: International Offer Restrictions
Generation Development Group | Acquisition of Evidentia and Equity Raising | 45 International Offer Restrictions This document does not constitute an offer of new ordinary shares (“New Shares”) of the Company in any jurisdiction in which it would be unlawful. In particular, this document may not be
Slide 46: International Offer Restrictions (cont'd)
Generation Development Group | Acquisition of Evidentia and Equity Raising | 46 International Offer Restrictions (cont’d) Singapore This document and any other materials relating to the New Shares have not been, and will not be, lodged or registered as a prospectus in Singapore with the Monetary Aut
Slide 47: Appendices: Underwriting Agreement Details
Generation Development Group | Acquisition of Evidentia and Equity Raising | 47 Appendices Underwriting Agreement Details
Slide 48: Overview of the Underwriting Agreement terms
Generation Development Group | Acquisition of Evidentia and Equity Raising | 48 Overview of the Underwriting Agreement terms Jefferies and MA Moelis Australia are acting as underwriters and lead managers (Underwriters) of the Placement and the Entitlement Offer. GDG has entered into an underwriting
Slide 49: Overview of the Underwriting Agreement terms
Generation Development Group | Acquisition of Evidentia and Equity Raising | 49 Overview of the Underwriting Agreement terms ▪ ASX announces that the Company will be removed from the official list or that the Shares will be: Delisting ‒ removed from official quotation; or ‒ suspended from quotation
Slide 50: Overview of the Underwriting Agreement terms
Generation Development Group | Acquisition of Evidentia and Equity Raising | 50 Overview of the Underwriting Agreement terms Change in officers ▪ Resignation or termination of the Chief Executive Officer, Chief Financial Officer or the Chairman of the Company occurs. ▪ The Company, any of its Direct
Slide 51: Overview of the Underwriting Agreement terms
Generation Development Group | Acquisition of Evidentia and Equity Raising | 51 Overview of the Underwriting Agreement terms ▪ Trading of all securities quoted on ASX, Hong Kong Stock Exchange, London Stock Exchange or New York Stock Exchange is suspended or limited in a material respect for a whole
Slide 52: Generation Development Group | Acquisition of Evidentia and Equity Raising
Generation Generation Development Development Group Group| Acquisition | Acquisition of Evidentia of Lonsecand andEquity Raising|| 52 EquityRaising