Prime Financial Group Limited · ASX:PFG

Prime Financial — H1 2012 Earnings Presentation

16 slides from Prime Financial's earnings presentation, Feb 24, 2012

1. Slide 1: Half Year Results Presentation

   Half Year Results Presentation For personal use only 24 February 2012 Integrated Wealth Management

2. Slide 2: Prime Financial Group Ltd – Positioning

   Prime Financial Group Ltd – Positioning For personal use only  What do we do?  Provide Integrated Wealth Management Services  Financial Planning  Investment Advice  Asset Protection & Life Insurance  Superannuation including Self Managed Superannuation, and  Accounting Services  To whom do w

3. Slide 3: Prime Financial Group Ltd – Positioning… cont

   Prime Financial Group Ltd – Positioning… cont For personal use only  How do we access  Through our Accounting Firm Equity Partners & Accounting new clients Investees  40,000+ Accounting Clients to access for Wealth Management  Why are we successful?  Independent Operating Model, providing Perso

4. Slide 4: Structure Chart

   Structure Chart For personal use only Prime Financial Group Ltd Wealth Management Accounting Services 100% Equity $1B+ FUM and over 4,000 clients Carroll, Pike & Piercy Primestock Securities Pty Ltd Ltd Up to 50% Equity 50% Equity 30 Wealth Management Entities jointly owned 7 Accounting Firms with A

5. Slide 5: 1H12 Results Summary – Introduction

   1H12 Results Summary For personal use only Introduction  The Financial Services sector has experienced a difficult six months to 31 December 2011. Global and domestic economic uncertainty saw the Australian stockmarket retreat 12% from 30 June 2011 resulting in declining investor confidence. Furthe

6. Slide 6: 1H12 Results Summary – Wealth Management and Accounting Results

   1H12 Results Summary For personal use only Wealth Management Results  Prime continued the growth in new leads for the period to 31 December 2011 and demonstrated the strength of Prime's distribution network by growing the new business earned from Life Insurance  Traditional Wealth Management Incom

7. Slide 7: Summary Half Year Results

   Summary Half Year Results For personal use only Financial 1H11 1H12 % Change Earnings Before Interest & Tax (EBIT) ($M) 2.82 2.66 - 6% Net Profit After Tax (NPAT) ($M) 2.02 1.81 - 10% Basic & Diluted Earnings 1.25 1.12 - 10% (cents per share) Dividend Paid & Proposed 0.75 0.75 0% (cents per share) (

8. Slide 8: Summary Profit & Loss

   Summary Profit & Loss % Change For personal use only 1H11 2H11 1H12 1H12 v 1H11 Wealth Management – New Business Income ($M) 1.63 1.37 1.42 - 13% Wealth Management – Recurring Income ($M) 3.66 3.59 3.41 - 7% Wealth Management – Licence Income ($M) - - 0.82 n/a Total Wealth Management Income ($M) 5.2

9. Slide 9: Wealth Management Income

   Wealth Management Income Wealth Management For personal use only Wealth Management Income represents 83% of Prime's Gross Income New Business Income % Change 1H11 2H11 1H12 1H12 v 1H11  Investment Brokerage ($'000) 1,349 1,068 927 - 31%  New Issues & IPO's ($'000) 0 0 68 n/a  Asset Protection & L

10. Slide 10: Key Metric – New Business Leads

    Key Metric – New Business Leads For personal use only New Business Leads  Prime has implemented a sophisticated client tracking system to a real time IT New Leads (monthly average) program (SalesForce) to track the 60 53 development of the business and accessing 51 50 the incumbent 40,000+ potentia

11. Slide 11: Key Metric – FUM Net Movements and Net Margin

    Key Metric – FUM Net Movements and Net Margin For personal use only Funds Under Management (FUM) 1H11 2H11 1H12 Commentary  Opening FUM ($M) 1,025 1,069 1,055  The overall decline in FUM of ($47.0m) is reflective of the difficult  FUM - New ($M) 56.2 45.2 35.5 domestic and global economic  FUM -

12. Slide 12: Key Metric – Licence Income

    Key Metric – Licence Income For personal use only Wealth Management Licence Income % Change 1H11 2H11 1H12 1H12 v 1H11 Licence Income ($'000) - - 820 n/a Total ($'000) - - 820 n/a  In the period to 31 December 2011 Prime has commenced its roll out of Asset Protection Wealth Management licenses. Thi

13. Slide 13: Accounting Services Investees

    Accounting Services Investees For personal use only Accounting Services Income Prime's 7 Accounting Services Investees represent 17% of the Prime's Gross Income. Where Prime invests in Accounting Firms the corresponding Wealth Management growth is more substantial. % Change 1H11 2H11 1H12 1H12 v 1H1

14. Slide 14: Summary Balance Sheet

    Summary Balance Sheet For personal use only 30/06/11 31/12/11 Current Assets Cash 0.5 0.6 Other current assets 6.1 6.2 Non Current Assets Receivables 1.7 1.7 Plant & Equipment 1.5 1.6 Investments 69.8 70.5 Total Assets 79.6 80.6 Current Liabilities Payables/Provisions 3.6 3.5 Borrowings 0.2 0.4 Non

15. Slide 15: FY2012 Targets & Longer Term

    FY2012 Targets & Longer Term For personal use only FY2012  Continue to work on & improve key indicators within the business that drive earnings:  Generate New Joint Venture Asset Protection Wealth Management Licenses  New FUM of $80.0M+ for year  Maintain FUM Annualised Net Margin of circa 1.00%

16. Slide 16: Contact

    Contact For personal use only Simon Madder Managing Director / CEO Prime Financial Group Ltd Level 17, Como Office Tower 644 Chapel Street South Yarra VIC 3141 Tel 03 9827 6999 Fax 03 9827 9100 simonm@primefinancial.com.au

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