3 May 2016 ASX ANNOUNCEMENT

Transcription

1 Link Administration Holdings Limited ABN All correspondence to: Locked Bag A14 Sydney South NSW 1235 Australia 3 May 2016 ASX ANNOUNCEMENT ASX Market Announcements Office ASX Limited 20 Bridge Street SYDNEY NSW 2000 Presentation to Macquarie Australia Conference 2016 Attached is a copy of a Link Group presentation to be delivered by Managing Director, John McMurtrie, at the Macquarie Australia Conference 2016 on 4 May Level 12, 680 George Street Level 1, 333 Collins Street Level 15, 324 Queen Street Level 4, 152 St Georges Terrace SYDNEY NSW 2000 MELBOURNE VIC 3000 BRISBANE QLD 4000 PERTH WA 6000

2 Investor Presentation Macquarie Australia Conference 2016 Wednesday, 4 May :45am

3 Important notice This presentation has been prepared by Link Administration Holdings Pty Limited (Company) together with its related bodies corporate (Link Group). The material contained in this presentation is intended to be general background information on the Link Group and its activities. The information is supplied in summary form and is therefore not necessarily complete. It is not intended that it be relied upon as advice to investors or potential investors, who should consider seeking independent professional advice depending upon their specific investment objectives, financial situation or particular needs. The material contained in this presentation may include information derived from publicly available sources that have not been independently verified. No representation or warranty is made as to the accuracy, completeness or reliability of the information. All amounts are in Australian dollars unless otherwise indicated. Unless otherwise noted, financial information in this presentation is based on A-IFRS. Link Group uses certain measures to manage and report on its business that are not recognised under Australian Accounting Standards or IFRS. These measures are collectively referred to in this presentation as non-ifrs financial measures under Regulatory Guide 230 Disclosing non-ifrs financial information published by ASIC. Management uses these non-ifrs financial measures to evaluate the performance and profitability of the overall business and the Company believes that they are useful for investors to understand the Company s financial condition and results of operations. This information is also important for comparative purposes with the use of those measures in the Company s IPO prospectus dated 30 September The principal non-ifrs financial measures that are referred to in this presentation are Operating EBITDA and Operating EBITDA margin. Management uses Operating EBITDA to evaluate the operating performance of the business and each operating segment prior to the impact of significant items, the non-cash impact of depreciation and amortisation and interest and tax charges, which are significantly impacted by the historical capital structure and historical tax position of Link Group. Management uses Operating EBITDA to evaluate the cash generation potential of the business because it does not include significant items or the non-cash charges for depreciation and amortisation. However, the Company believes that it should not be considered in isolation or as an alternative to net operating free cash flow. Other non-ifrs financial measures used in the presentation may include Recurring Revenue, gross revenue, EBITDA, EBITA, EBIT, NPATA before significant items, working capital, capital expenditure, net operating free cash flow, net operating free cash flow conversion ratio and net debt. Significant items comprise business combination costs, bargain purchase gain and gain on consolidation, integration costs, IT business transformation and client migration costs. Unless otherwise specified those non-ifrs financial measures have not been subject to audit or review in accordance with Australian Accounting Standards. Forward-looking statements are statements about matters that are not historical facts. Forward-looking statements appear in a number of places in this presentation and include statements regarding the Link Group s intent, belief or current expectations with respect to business and operations, market conditions, results of operations and financial condition, including, without limitation, future loan loss provisions, financial support to certain borrowers, indicative drivers, forecasted economic indicators and performance metric outcomes. This presentation contains words such as will, may, expect, 'indicative', intend, seek, would, should, could, continue, plan, probability, risk, forecast, likely, estimate, anticipate, believe, or similar words to identify forward-looking statements. These forward-looking statements reflect the Link Group s current views with respect to future events and are subject to change, certain risks, uncertainties and assumptions which are, in many instances, beyond the control of the Link Group, and have been made based upon the Link Group s expectations and beliefs concerning future developments and their potential effect upon us. There can be no assurance that future developments will be in accordance with the Link Group s expectations or that the effect of future developments on the Link Group will be those anticipated. Actual results could differ materially from those which the Link Group expects, depending on the outcome of various factors. Factors that may impact on the forward-looking statements made include, but are not limited to, general economic conditions in Australia; exchange rates; competition in the markets in which the Link Group will operate and the inherent regulatory risks in the businesses of the Link Group. When relying on forward-looking statements to make decisions with respect to us, investors and others should carefully consider such factors and other uncertainties and events. The Link Group is under no obligation to update any forward-looking statements contained in this presentation, where as a result of new information, future events or otherwise, after the date of this presentation. LINK GROUP 2

4 Agenda 1 Link Group Overview 2 Operational Update 3 Outlook 4 Q&A 5 Appendix: Additional business information LINK GROUP 3

5 1. Link Group Overview LINK GROUP 4

6 Link Group is a market leading technology-enabled company Link Group is a market leading administrator of financial ownership data, underpinned by investment in technology, people and processes Link Group s divisional breakdown (By forecast FY2016 revenue) 1,2 19% 21% 9% 60% Link Group s revenue by type (By forecast FY2016 revenue) 2 Fund Administration Corporate Markets Information, Digital and Data Services Recurring revenue 3 At a glance, Link Group currently: Listed on the ASX (LNK) in October 2015 Market Capitalisation A$2.9 billion 4 Included in the S&P / ASX 200 from 11 February Leading market position in attractive industries 2 Adding value through Innovation and Technology 91% Other revenue 3 Defined Growth Strategy 1. Divisional percentages based on gross revenue prior to eliminations; 2. No pro forma adjustments have been made to statutory revenue in the pro forma forecast results; 3. Recurring Revenue is revenue arising from contracted core administration services, stakeholder engagement services, share registry services and shareholder management and analytics services that are unrelated to corporate actions, expressed as a percentage of total revenue; 4. Based on the closing share price of $8.00 (28 April 2016) LINK GROUP 5

7 Our operational scale Servicing over 10 million Superannuation account holders 1 Servicing over 20 million individual shareholders Processing over $70 billion in payments per annum Receiving over 4.6 million calls per annum Completing over 20 million transactions per annum Electronically processing over 6 million employer contributions per annum 1. Including ERFs and redundancy trusts LINK GROUP 6

8 No.1 administrator in the fourth largest pension pool globally Global pension asset pools (2014) and last decade growth 1 CY2004 CY2014 CAGR (%) 2 6.6% 6.5% (0.3%) 11.2% 7.3% 7.0% 4.5% 6.3% na 9.7% Australian superannuation administration providers By FUM 4 Total asset pool 2014 (US$tn) In-house administered 52% SMSF 25% Link 16% SMSF 4% By Members 4 Total Australian superannuation industry size Mercer 3% Pillar 3% In-house administered 55% Link 34% 3.0 FuM (A$tn) Fragmented market = Opportunity Other 1% Pillar 4% Mercer 0.0 FY2004 FY2009 FY2014 FY2019 FY2024 FY Based on Towers Watson Global Pension Assets Study Presents 2014 data. As at 30 June 2015, the Australian superannuation system has over $2.0 trillion in FuM; 2. Based on FY2004 and FY2014 FuM in Australian dollars; 3. Based on APRA Superannuation Bulletin 2013, revised February 2014; APRA Quarterly Superannuation Performance March 2015, issued 21 May Projections based on data from Rice Warner (2015); 4. Based on Link Group s analysis of APRA Superannuation data; Annual Fund-level Superannuation Statistics (June 2015 edition). LINK GROUP 7

9 $250 Link Group is well placed to benefit from scale & further outsourcing Link Group offers a valued alternative to in-house administration by providing scale, proprietary technology and quality of service Administration fees per member 2 (By fund type excluding SMSF) $200 Market average (excluding SMSF) Large fee disparity for members $150 $100 $50 Only 3 of the top 10 funds currently outsource administration 1 - Corporate Industry Public Sector Retail 1. Based on Link Group s analysis of APRA Superannuation data; Annual Fund-level Superannuation Statistics (June 2015 edition). Total assets at end of the period. 2. Based on Link Group s analysis of APRA Superannuation data: Annual superannuation Bulletin (June 2015 edition). Administration fees paid by source payment and number of member accounts by fund type. LINK GROUP 8

10 The superannuation environment continues to evolve A dynamic industry undergoing constant structural change Key developments in the Superannuation System 1 Industry objectives Efficiency Competiveness Integrity 1. Source: Superannuation Efficiency and Competitiveness: Productivity Commission Issues Paper (March 2016). Institutional funds comprise corporate, industry, public sector and retail funds. Small funds comprise small APRA funds, single member approved deposit funds and SMSF s. Data Sources: APRA (2007, 2014, 2016) LINK GROUP 9

11 The fund administration market is similarly dynamic Link Group continues to meet the requirements of an industry that has historically suffered from low levels of reinvestment Efficiency Dynamic regulatory environment Requires flexible, agile systems Historically low margins and low level of reinvestment Proven proprietary technology: regulatory change diffused across a broad client base $300m invested over last 10 years Open & neutral platform encouraging integration with other participants e.g. DIO, API s, Annuities, Insurance, etc. Competiveness Many operational participants Many operating models available for participants Potential for further technology solutions Providing a scaled alternative for funds Flexible operating model (i.e. ability to insource certain functions as desired) Annual spend on IT exceeding $100 million Integrity Increasing reliance on technology & interconnectivity Data security and privacy risks Stable IT infrastructure requirements Publicly listed with a market capitalisation of A$2.9 billion 1 ISO certification Low levels of gearing 1. Based on the closing share price of $8.00 (28 April 2016) LINK GROUP 10

12 Leading player in all key Corporate Markets geographies Link Group provides a comprehensive corporate markets solution, delivered through a single, integrated platform. Link Group is a leading player in all key markets in which it operates. Corporate Markets product suite, geographic footprint and market position 1 UK ASX200 companies serviced 1 Shareholder management and analytics 2 Other North America 1 France Germany 1 India 2 Hong Kong 76% Share registry Link Group 1 No.1 position 2 No.2 position Leading position UAE 1 Singapore Papua New Guinea 1 Other 38% Link Group Shareholder management and analytics Stakeholder engagement Share registry South Africa New Zealand 1 2 Share of Australian IPOs over $50 million since FY Employee share plans 1 2 Australia Other Company secretarial % Link Group Link Group Global Share Alliance (Excl. Link Group) Source: ASX, publicly available stock exchange data 1. Based on the number of companies serviced in the index as at June 2015; These figures are for a subset of services which may form part of a broader service (for which there are a number of alternative suppliers) 2. Percentage of issuers serviced by Link Group includes those issuers for whom Link Group is not the exclusive service provider; 3. Based on number of IPOs LINK GROUP 11

13 Innovation and technology a competitive advantage Investment in technology and innovation is delivering benefits to clients by leveraging our scaled infrastructure and investment in partnerships Information Digital & Data Services (IDDS) Leveraging the secure, shared and scalable infrastructure across IDDS Core Services Value-added services Fund Administration Corporate Markets Data analytics Digital Solutions Digital Communications 3 rd party integrations Real time transactions Data security Proprietary technology Scalable platform Next best action insights Personalisation and targeted communications Mobile first Increasing customer engagement, acquisition and retention Integrations to enhance functionality Enhanced interconnectivity of specialist providers Lower cost of ownership Secure and scaled benefits for clients LINK GROUP 12

14 Innovation and technology in practice HESTA: real-time, integrated mobile app for superannuation members Instant uplift in functionality, due to full integration with Link s core processing system Ability for members to transact via their mobile app in real-time With straight-throughprocessing for all functionality (e.g. updating details, beneficiary information, consolidation, investment switching and more) LINK GROUP 13

15 Innovation and technology in practice Investor Relations (miraqle): real-time, integrated mobile app for C-suite Putting on-the-go investor insights and intelligence into the hands of C-suite executives + IRO s. Review roadshow itineraries and track + record investor interaction Interactive briefing book provides key information required for investor meetings (e.g. shareholding history, past meetings) Integrations with 3 rd parties such as taxi + restaurant bookings LINK GROUP 14

16 Continue to execute on Link Group s growth strategy Superpartners secures medium term growth, with continued outsourcing and innovation to drive growth beyond this Link Group s growth strategy is focused on five major drivers of growth Growth through further penetration of attractive industries Growth through product and service innovation Growth through client, product and regional expansions Executing Superpartners opportunity Identifying adjacent market opportunities Continue to explore prospective opportunities New clients include: Corporate Markets: Woolworths ESP Sirtex Medical Sims Metal Mgt Macquarie Group IDDS ANZ (NZ) Digital membership card Mobile app for superfunds Expanded capability in NZ Kiwi Saver and Fund Administration market Successfully integrated more than 35 business combinations over the last 10 years Continue to explore prospective opportunities Hostplus migration completed in April 2016 Cbus to be migrated prior to 30 June 2016 with migration program to be completed by 31 December 2016 On track to achieve targeted synergies Continue to assess a range of corporate and other actionable targets LINK GROUP 15

17 2. Operational update LINK GROUP 16

18 Superpartners integration on track The Superpartners integration remains on track to complete all client migrations by the end of this calendar year and realise significant operational efficiencies Highlights Anticipated timing of the realisation of synergies from Superpartners Head Office Rationalisation of head office complete. 2H FY2015 1H FY2016 2H FY2016 FY2017 FY2018 FY2019 Migrations Head office MTAA Super, HESTA & Hostplus migrations complete. Migrations HESTA MTAA Super HOST- PLUS Cbus Aus- Super Cbus to be migrated prior to 30 June 2016 and on track for completion of all client migrations by the end of CY2016. Operational efficiencies Consolidation & efficiencies Migration onto a single managed services platform complete. Sydney based Superpartners staff relocated to Link premises. The fitout of the Collins Square premises in Melbourne remains on track for completion in 2H of CY16. Consolidating 3 existing Melbourne premises. Retirement of legacy systems Post-migration operational efficiencies Vendor consolidation Completed Partially realised in line or above expectations To be realised LINK GROUP 17

19 Culture is a key focus The importance of our people and the culture in supporting our business & clients is essential to achieving our vision Our Culture is the way; With the Link team benefiting from; > We do business with our clients > Significant investment in training > We treat our people > Group wide career opportunities > > We reward based on performance and core values We empower our people to think, to deliver and to take responsibility > > Improved use of technology, leading to reduced manual processing activity State of the art premises > We encourage open and honest dialogue Culture is embedded in our business from the top down and bottom up LINK GROUP 18

20 3. Outlook LINK GROUP 19

21 Good momentum into the full year Pro forma prospectus forecast for FY2016 > Link Group reaffirms its pro forma prospectus forecast and full year FY2016 outlook > Good momentum continuing through the 2H16 30 June year end, A$ million FY2016 Prospectus Forecast Revenue Operating EBITDA EBITDA after significant items NPATA before significant items 95.5 Link Group confirms it is expected to consider a dividend in respect of the year to 30 June 2016 in line with the prospectus disclosure of approximately $27 million. This dividend is expected to be largely unfranked Well positioned for future growth LINK GROUP 20

22 4. Q&A LINK GROUP 21

23 5. Appendix: Additional business information LINK GROUP 22

24 Divisional snapshot Fund Administration Corporate Markets Information, Digital & Data Services ( IDDS ) Underlying stakeholders Over 10 million superannuation account holders Over 20 million individual shareholders Over 30 million financial records FTE 1 2, Key services Core administration services Stakeholder education and advice Value-added data management and analytics Shareholder management and analytics Stakeholder engagement Share registry Employee share plans Core systems development and maintenance Digital communications and solutions Data analytics Revenue model Contract-based 2 (typically 3 5 years) Contract-based 3 (typically 2 3 years) Market related income less than 2% of forecast FY2016 revenue 4,5 Revenue from supporting other divisions and external clients Fee-for-service and licence fees FY2016 revenue contribution 5,6 60% 19% 21% 1. Based on 30 June 2015 FTE numbers excluding head office employees; 2. Clients charged a weekly fee per member (invoiced monthly); 3. Driven by number of shareholder accounts serviced; 4. Includes margin income and corporate actions; 5. No pro forma adjustments have been made to statutory revenue in the pro forma forecast results; 6. Divisional percentages based on gross revenue prior to eliminations LINK GROUP 23

25 Resilient earnings with uninterrupted Operating EBITDA growth Over the past decade, Link Group has achieved uninterrupted Operating EBITDA growth and evolved from a share registry business to a provider of technology-enabled outsourced services Operating EBITDA 1 profile FY2002 FY2015 revenue CAGR: 23% FY2002 FY2015 Operating EBITDA CAGR: 24% 29% 28% 28% 25% 24% 24% Over 30 business combinations in the last 10 years Over 80 superannuation fund migrations since % 35% 36% 34% 34% % % % 20% FY2002 FY2003 FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2015 FY : Corporate Markets focus Today: Technology-enabled outsourced services provider Operating EBITDA (A$m) Operating EBITDA margin 1. FY2013 FY2016 Operating EBITDA includes public company costs and excludes significant items (see page 24) LINK GROUP 24

26 Link Group s investment highlights 1 Leading market position in attractive industries 2 Proprietary and scalable technology platforms 3 Large and loyal client base 4 Strategically positioned for long-term growth 5 Strong financial profile 6 Track record of value creation through business combinations and migrations 7 Experienced management team LINK GROUP 25

27 No.1 administrator in the fourth largest pension pool globally Global pension asset pools (2014) and last decade growth 1 CY2004 CY2014 CAGR (%) Australian superannuation administration providers (By core administration service expense 2014) 4 Total asset pool 2014 (US$tn) % 6.5% (0.3%) 11.2% 7.3% 7.0% 4.5% 6.3% na 9.7% Total outsourced administration: 42% Total Australian superannuation industry size FuM (A$tn) FY2004 FY2009 FY2014 FY2019 FY2024 FY2029 Estimated total addressable market of over $2.0 billion 4 1. Based on Towers Watson Global Pension Assets Study Presents 2014 data. As at 30 June 2015, the Australian superannuation system has over $2.0 trillion in FuM; 2. Based on FY2004 and FY2014 FuM in Australian dollars; 3. Based on APRA Superannuation Bulletin 2013, revised February 2014; APRA Quarterly Superannuation Performance March 2015, issued 21 May Projections based on data from Rice Warner (2015); 4. Based on data from Rice Warner (2015). Excludes value-added services and self managed superannuation funds LINK GROUP 26

28 Organic growth underpinned by an attractive client base Link Group s current client base has experienced material member account growth over the last decade, and with drivers of this growth expected to continue Fund member accounts of Link Group s current client base (excl. ERFs 1 and redundancy trusts) 2 Key organic growth drivers Member accounts (million) Underlying member growth of Link Group s clients 2.0% CAGR 4 in employed persons expected over the next five years Further share gains by Link Group s top five clients 2 Growth in revenue per member Contracts provide for annual indexationlinked price increases Ageing population driving growth in higher value pension members FY2004 FY2005 FY2006 FY2007 FY2008 FY2009 FY2010 FY2011 FY2012 FY2013 FY2014 FY2004 FY2014 CAGR: Link Group s current clients underlying member accounts: ~6% Link Group s current top five clients member accounts: ~7% Australian superannuation funds total operating expenses 3 : ~9% Source: APRA, Fund Level Profiles and Financial Performance, issued 20 May Eligible Rollover Funds are superannuation funds that are eligible to receive accounts automatically rolled over from other funds. Administrators typically receive lower fees per member to administer ERFs compared to those other funds as the cost of servicing ERFs is typically lower; 2. Link Group management estimates that Link Group s total number of members (excl. ERFs and redundancy trusts) remained at 9.3 million as at 30 June 2015; 3. Administration services form a significant part of superannuation funds operating expenses; 4. Based on Department of Employment, Industry Employment Projects for the five years to November 2019, released 2015 LINK GROUP 27

29 Well positioned to benefit from further outsourcing Link Group is well positioned to benefit from increased fund administration outsourcing given its competitive advantage from its proprietary technology, quality service offering and operating scale Number of outsourced member accounts has been growing Total outsourced member accounts 2 Member accounts (m) As % total accounts % 37% Key drivers: Continually evolving and increasingly complex superannuation system imposes administrative burdens Service benefits to superannuation fund members High level of public scrutiny on costs Link Group well placed to benefit from further outsourcing Only two of the ten largest super funds currently outsource Australia s ten largest funds by administration and related fees (2014) 1 Fund name % industry admin. and related fees No. of members as at 30 June 2014 Status of administration The Universal Super Scheme (NAB) 8% 1.2m In-house AMP Superannuation Savings Trust 7% 2.4m In-house AustralianSuper 5% 2.1m State Public Sector Superannuation Scheme (QSuper) Outsourced Link 5% 0.5m In-house Retirement Wrap (Westpac) 4% 0.8m In-house 5.4 million of the 6.0 million increase in Link Group s members since FY2006 have come from previously in-house administered funds Key competitive advantage: Proprietary technology Quality service offering Operating scale Colonial First State FirstChoice Superannuation Trust (CBA) 4% 0.8m In-house Sunsuper Superannuation Trust 3% 1.1m In-house Retail Employees Superannuation Trust 3% 2.1m Outsourced Link Suncorp Master Trust 2% 0.2m In-house OnePath Masterfund (ANZ) 2% 1.1m In-house 1. Estimates of administration and related fees based on data from Rice Warner (2015); number of members sourced from APRA, Fund Level Profiles and Financial Performance, issued 20 May 2015; 2. Proportion of total member accounts based on member accounts of APRA regulated and non-apra regulated government superannuation funds and excludes SMSFs, based on data from Rice Warner (2015); APRA, Superannuation Bulletin 2013, revised February 2014 LINK GROUP 28

30 Leading player in all key Corporate Markets geographies Link Group is a leading player in all key markets in which Corporate Markets operates. Australia is the largest market, with Australia and New Zealand ~70% the division s FY2016 revenue Corporate Markets product suite, geographic footprint and market position 1 UK ASX200 companies serviced 1 Shareholder management and analytics 2 Other North America 1 France Germany 1 India 2 Hong Kong 76% Share registry Link Group 1 No.1 position 2 No.2 position Leading position UAE 1 Singapore Papua New Guinea 1 Other 38% Link Group Shareholder management and analytics Stakeholder engagement Share registry South Africa New Zealand 1 2 Share of Australian IPOs over $50 million since FY Employee share plans 1 2 Australia Other Company secretarial % Link Group Link Group Global Share Alliance (Excl. Link Group) Source: ASX, publicly available stock exchange data 1. Based on the number of companies serviced in the index as at June 2015; 2. Percentage of issuers serviced by Link Group includes those issuers for whom Link Group is not the exclusive service provider; 3. Based on number of IPOs LINK GROUP 29

31 Supported by IDDS proprietary and scalable technology platforms Link Group has developed market leading proprietary technology platforms that are scalable and provide significant operating leverage IDDS highlights Key proprietary platforms Technology hub that supports Link Group s other divisions and provides services directly to external clients Core services Value-added services Innovation and data analytics capabilities that enable Link Group to differentiate itself from competitors Engages directly with IDDS own external clients Value-added services and licensing of in-house fund administration software to external clients are expected to contribute 22% of IDDS revenue in FY2016 Outsourced superannuation Share registry and database management Shareholder management and analytics In-house fund administration software Data analytics Digital solutions Digital communications 22% of IDDS FY2016 revenue Focus on scalability, high levels of automation, high degree of operating leverage, flexibility, privacy and data protection, and ability to interface with value-added platforms and services Shared applications Shared IT infrastructure Over the last nine years, Link Group has invested approximately $300 million in the successful development and implementation of its market leading platforms Key: Supports Fund Administration Software licensed to external clients Supports Corporate Markets Supports Fund Administration, Corporate Markets and external clients 1. Includes ERFs LINK GROUP 30

32 Large and loyal client base driving high Recurring Revenue Link Group s business is characterised by medium to long term client contracts, strong Recurring Revenue and high levels of client retention Client contracts Top 10 clients Length of relationship 1 Remaining contract tenure from 30 June Client 1 >20 years Contract tenure >4 years Client 2 >20 years 1 year contract tenure 2 years Client 3 >20 years Contract tenure >4 years Client 4 13 years Contract tenure >4 years Client 5 >20 years Contract tenure >4 years Client 6 1 year 2 years contract tenure 4 years Client 7 2 years 2 years contract tenure 4 years Client 8 >20 years Contract tenure >4 years Client 9 13 years Contract tenure <1 year Client 10 >20 years Contract tenure <1 year Key drivers of client retention Quality of Link Group s product and service offering Strength of client relationships Brand loyalty Significant integration with clients Large, diversified client base Client examples Revenue concentration 3 Fund Administration 42% 46% Top 5 Top 6-10 Corporate Markets Other 12% High proportion of Recurring Revenue 4 % total revenue 100% 11% 12% 9% 9% 80% 60% 40% 89% 88% 91% 91% 20% 0% FY2013 FY2014 FY2015 FY2016 Recurring revenue % Other revenue % 1. Where client was previously a Superpartners client, length of relationship shown includes relationship with predecessor entity; 2. Tenure refers to remainder of fixed contract term. Note that the contracts are terminable by the client without cause on between 3 and 12 months notice; 3. Based on forecast FY2016 revenue. No pro forma adjustments have been made to statutory revenue in the pro forma forecast results; 4. Recurring Revenue is revenue arising from contracted core administration services, stakeholder engagement services, share registry services and shareholder management and analytics services that are unrelated to corporate actions, expressed as a percentage of total revenue LINK GROUP 31

33 Near term growth underpinned by Superpartners The successful tender for the five major Superpartners clients in FY2015 has significantly increased Link Group s revenues and creates a significant synergy opportunity Key highlights Transformational business combination More than doubles Fund Administration member accounts Increases Link Group revenues by ~40% in forecast FY Significant synergy opportunity upon integration Link Group, Fund Administration and IDDS Operating EBITDA margin Evolution of IDDS costs 3 (A$m) Pro forma Operating EBITDA margin (%) 45% 40% 35% 30% 25% 20% 41% 36% 25% 35% 34% 24% Margins expected to progressively trend back to levels similar to that achieved in pro forma FY % 24% 23% 20% 17% 17% 65% of IDDS revenue 67.9 Additional IDDS costs predominantly from Superpartners % of IDDS revenue % FY2013 FY2014 FY2015 FY2016 Pre Superpartners Post Superpartners Link Group Fund Administration IDDS Source: Management 1. No pro forma adjustments have been made to statutory revenue in the pro forma forecast results; 2. Assumes no further and similar acquisitions or business combinations. Requires operational efficiencies to be realised and may not occur unless the client migrations and the retirement of legacy systems are completed; 3. Pre Superpartners IDDS costs refer to FY2014 and Post Superpartners IDDS costs refers to FY2016. IDDS costs illustrated represent total IDDS costs including staff and other costs supporting IT infrastructure and development LINK GROUP 32

34 Experienced management team and Board Link Group s strong management team has a long tenure with proven track record of delivering growth John McMurtrie Managing Director, Link Group John Hawkins CFO, Link Group Suzanne Holden CEO, Fund Administration David Geddes CEO, Corporate Markets Paul Gardiner CEO, Information, Digital & Data Services Over 35 years experience Over 30 years experience ~25 years experience ~35 years experience ~20 years experience Joined Link Group in January 2002 as Managing Director Previous senior appointments include Executive General Manager of ASX s Investors & Companies division and CEO of UBS Australia Limited Joined Link Group in November 2001 as CFO Extensive commercial, accounting and finance experience from various roles with Optus, Perpetual and KPMG (Australia and UK) Joined Link Group in 2010 Extensive experience managing large operational and customer service teams. Previously General Manager Airport Operations for Qantas with responsibility for all operational, compliance and service performance across Australia Joined Link Group in 2006 when Orient Capital was acquired by Link from the Australian Stock Exchange Founder of Orient Capital in 1980 Joined Orient Capital in 2001 and appointed CEO, Information, Digital & Data, Link Group in 2015 Extensive experience in operations, web development and digital technology Board of Directors Michael Carapiet (Chairman) John McMurtrie (Managing Director) Paul McCullagh (NED) Cameron Blanks (NED) Glen Boreham (INED) Sally Pitkin (INED) Fiona Trafford-Walker (INED) LINK GROUP 33

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