2020 Half Year Results Presentation · Link Group –1H 2020 Results Presentation 2 Important...

Half Year Results PresentationFor the period ended 31 December 2019

27 February 2020

1

Link Group – 1H 2020 Results Presentation 2

Important notice

This presentation has been prepared by Link Administration Holdings Limited (Company) together with its related bodies corporate (Link Group). The material contained in this presentation is

intended to be general background information on Link Group and its activities.

The information is supplied in summary form and is therefore not necessarily complete. It should be read in conjunction with Link Group’s other periodic and continuous disclosure

announcements filed with the Australian Securities Exchange, and in particular, Link Group’s Interim Financial Report for six months ended 31 December 2019. 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 Link Group believes that

they are useful for investors to understand Link Group’s financial condition and results of operations. Non-IFRS measures are defined in Appendix 6A. The principal non-IFRS financial measures

that are referred to in this presentation are Operating EBITDA, Operating EBIT, Operating EBITDA margin and Operating EBIT 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, Link Group believes that it should not be considered in isolation or as

an alternative to net operating cash flow. Other non-IFRS financial measures used in the presentation include Recurring Revenue, gross revenue, EBITDA, EBITA, EBIT, Operating NPATA,

working capital, capital expenditure, net operating cash flow, net operating cash flow conversion ratio and net debt. Significant items comprise business combination costs, 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 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 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 Link Group, and have been made based upon 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 Link Group’s expectations or that the effect of future

developments on Link Group will be those anticipated. Actual results could differ materially from those which 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 Link Group will

operate and the inherent regulatory risks in the businesses of Link Group.

When relying on forward-looking statements to make decisions with respect to Link Group, investors and others should carefully consider such factors and other uncertainties and events. 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 – 1H 2020 Results Presentation

1. Overview

2. Financial information

3. Proforma financial information

4. Closing

5. Q&A

6. Appendices

3

Contents


1. Overview

4


Global

5

FY 2020 - a transitional year for Link Group

Link Group’s revenue profile is diverse across jurisdiction and service offering, whilst Recurring

Revenue of over 80% provides resilience

Diverse1

Resilient

LINK GROUP PROFILE

(1H 2020 Revenue)

Revenue

(A$ millions)

APAC /

EMEA

Recurring

Revenue %

Revenue

Contribution1

Retirement and

Superannuation Solutions259.6

pcp: 275.988% 32%

Corporate Markets 183.0pcp: 191.9

70% 23%

Fund Solutions 86.1pcp: 79.6

91% 11%

Banking and Credit

Management83.8

pcp: 88.691% 10%

Technology and

Operations188.7

pcp: 167.431% 24%

External revenue

100%

47%53%

100%

APAC EMEA

32%

23%11%

10%

24% RSS

CM

FS

BCM

T&O

84%

16%

Recurring

Non-recurring

59%

41%APAC

EMEA$624m

$624m

$624mPEXA2 79.0

pcp: 51.3

BU

SIN

ES

S U

NIT

PR

OF

ILE

Eq

uit

y

Inv

estm

en

t

1. Divisional revenue contribution

percentage based on Gross Revenue

prior to eliminations.

2. Reflects 100% of PEXA revenue

(Link Group ownership 44.2%).

100%

90%

80%


Proactive diversification strategy

At the time of listing Link Group predominantly operated in APAC with revenue heavily weighted to

RSS. It has since diversified both geographically and by service offering, further broadened by PES

PEXA

Revenue: $4.5m2

Ownership: 12.0%

PEXA

Revenue: $136.8m2

Ownership: 44.2%

+

+

FY 2016 Revenue1 LTM (Dec-19) Revenue1,3

APAC - 59% EMEA - 41%

1. Percentages represent divisional revenue contribution based on Gross Revenue prior to eliminations.

2. Reflects 100% of PEXA revenue.

3. LTM reflects proforma (exc. CPCS).

Fund Solutions

Banking and Credit

Management

Technology &

Operations

Corporate Markets

Retirement &

Superannuation

Solutions

APAC - 94%

Operating EPS: 30.7 cps Operating EPS: 32.4 cps

EMEA – 6%

58% 34%

20%23%

21%

22%

10%

11%

776.0

1,243.2

A$ millions A$ millions


pcp: Proforma3 pcp

Revenue $624 million $714 million $648 million (down 4%)

Operating EBITDA1 $163 million $205 million $183 million (down 11%)

Operating EBIT1 $109 million $156 million $138 million (down 20%)

Operating NPATA1 $81 million $106 million $91 million (down 11%)

Recurring Revenue2 $522 million $570 million $525 million (down 1%)

Net Operating Cash Flow $181 million $159 million not quantifiable

Statutory NPAT $29 million $185 million $174 million (down 84%)

Operating earnings per share1 15.2 cents 20.1 cents 17.2 cents million (down 11%)

Interim dividend declared

100% franked

6.5 cents

per share8.0 cents per share

PEXA Revenue (100%) $79 million $51 million

PEXA Operating NPATA (100%) $26 million loss of $6 million

7

Key financial metrics

FY2020 is a transitional year. Lower financial measures compared to the pcp reflect the divestment

of CPCS in June 2019, and the impact of regulatory change and client losses in RSS

1. Operating EBITDA, Operating EBIT, Operating NPATA and Operating earnings per share exclude significant items. See Appendix 6A for a reconciliation of Operating EBITDA, Operating EBIT and

Operating NPATA to statutory NPAT.

2. See Appendix 6A for definitions for non-IFRS measures. Non-IFRS measures have not been audited or reviewed in accordance with Australian Accounting Standards.

3. Proforma excludes the divested CPCS business.


Distilling 1H 2020 earnings performance

Regulatory change and historical client losses in RSS are impacting FY 2020 earnings, whilst

PEXA and T&O are providing positive momentum

Revenue

Operating NPATA

1H 2020 commentary

PEXA and T&O are providing positive

momentum to Operating NPATA

As highlighted in FY 2019, regulatory

change (i.e. Protecting Your

Superannuation “PYS” & Putting

Members’ Interests First “PMIF”) and

historical client losses in RSS are

impacting FY 2020 revenues

Taking account of known factors,

underlying revenue growth was

modestly positive, with overall revenue

growth offset by soft capital market

activity in Corporate Markets – EMEA

647.5 618.8 624.2

16.1

(21.8) (6.9)(10.7)

66.9

714.4

1H 2019 RSSNet wins / (losses /

mergers)

RSSPYS recurring

revenue impact

Rebased CMUK market based

revenue

Growth 1H 2020

A$ millions

Proforma CPCS (divested)

Known factors impacting 1H 2020 Revenue (inline with guidance)

0.7 9.3 0.211.4 0.4 6.2

(26.0)(9.2) (3.2)91.2

81.1

15.2

106.4

1H 2019(Proforma)

RSSEBIT

CMEBIT

FSEBIT

BCMEBIT

T&OEBIT

Groupcost

PEXA(OperatingNPATA)

Interest Tax 1H 2020

A$ million

Proforma CPCS (divested)

Inline with guidance


Shareholder value initiatives

Executing on a series of initiatives to drive shareholder value in both short and medium term

Expansion of BCM with acquisition

of Pepper European Servicing

(“PES”) announced1

Entry into UK pensions market with

investment in SMART Pension

Potential PEXA capital returns and

share buy-back optionality

Further international expansion of

RSS

Further geographic expansion of FS

and BCM

Future options under considerationActioned/underway initiatives

Global Transformation - broadly on

track, delivering $11.5 million of

benefit in 1H 2020 ($50m target)

1. Subject to regulatory approval.


Outlook

Medium term growth potential remains strong, whilst managing through existing challenges

1. Change to revised guidance reflects the application of AASB 16 Leases.

Link Group Outlook

Balancing the positive contribution from PEXA, trading to date and expectations for the second half, Link Group expects

Operating NPATA to be at least $160 million for the full year ended 30 June 2020. Whilst medium term growth potential

remains strong, the FY 2020 Operating EBITDA for the continuing business is expected to be approximately 10% lower than

the prior year

Lower earnings for the continuing business (excluding CPCS) reflects the full year impact of PYS, previously announced client

losses, subdued capital markets activity, weaker new business pipeline in Europe and remediation efforts in LFS (i.e. ex

Woodford fund)

Further buyback activity

Remains a key element of capital management, taking account of impacts to the leverage profile, including the PES acquisition

and potential return of capital from PEXA

Global Transformation program on track

On track to deliver $50m of annualised savings by end of FY 2022, with $11.5m delivered to date

RSS guidance FY 2020 reaffirmed

Revenue of $480m-$500m and Operating EBITDA of $75m-$85m1


$101$197

Link Groupclients

Industry average(exc. Link)

Average admistration fee per account ($ per annum)2

275.9 259.6

56.6 30.6

1H 2019 1H 2020

30 June year end, A$ million

Revenue Operating EBIT

Retirement and Superannuation Solutions: Overview

Strong member growth in Australia and international opportunity supports medium term outlook.

Regulatory change, client exits and fund consolidation affecting near term financial performance

Financials

Strategy

Key focus

Underlying strength

Link Group is well positioned to benefit from an evolving global

landscape and capture scale benefits…Positive member growth of Link Group clients’ underpinning

resilient base of Recurring Revenue. Increased member growth

following Royal Commission (excluding impact of PYS)

1. Underlying members of Link Group’s clients exclude client wins/losses, ERFs, redundancy trusts and the impact of PYS related member account movements (to either ERFs or the ATO).

2. Link Group analysis of APRA Fund-level Superannuation Statistics (June 2019 edition).

Revenue $480m to $500m

Operating EBITDA $60m to $70m

11

0.5%0.9% 1.2%

0.8%

2.3%2.9%

3.9%

5.2%

Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19

Underlying 12 month member growth1

Client losses and PYS

impacting earnings in

1H 2020

• Supporting clients through challenging regulatory change

programs (i.e. PYS & PMIF)

• Supporting clients’ member growth strategies

• Securing opportunities in market post regulatory change

program

• Continuing to reinvest to strengthen client offering

• Building on presence in the UK and exploring further

international opportunities

Link Group supports

member outcomes

Fragmented market = Opportunity

34%

48%

10%

Superannuation administration (Australia) by members2

Link

Inhouse

Mercer

Other (3%)

SMSF (5%)


•

191.9 183.0

44.1 34.9

1H 2019 1H 2020



Corporate Markets: Overview

Continued success in growing value added services, offset by softer market conditions impacting

European operations

Financials

Strategy

Key focus

Underlying Strength

Cross selling of service offerings continues to provide growth Increase penetration in each jurisdiction, by offering a globally

standardised suite of services

Registry

Company Secretarial

Employee share plans

Investor Relations

12

• Providing value added services to existing and new clients

• Continuing to add new clients to drive volume growth (i.e. IPO

mandates)

• Providing high levels of customer service supporting client

retention

• Global coordination to support multinational entities

• Global alignment of operations to drive efficiencies

• Enhancing customer experience through innovation and

technology led solutions

Further

opportunity for

cross sell

Service offerings: Registry, Employee share plans, Company Secretarial & Investor Relations

Lower market related

activity impacting

revenue

• South Africa • Australia

• PNG

• India• Hong Kong

• GermanyIreland · • UK

New Zealand ·

• UAE

France

Singapore ·

Clients using: Australia UK

1 service offering 57% 54%

2 service offerings 26% 40%

3+ service offerings 17% 6%


79.6 86.1

14.0 14.7

1H 2019 1H 2020



Fund Solutions: Overview

Revenue growth supported by increased AuM of existing clients and jurisdictional expansion

Financials

Strategy

Key focus

Underlying Strength

13

Support deep client relationships and leverage

strong market network

Explore expansion of existing service offering

across new jurisdictions

Deliver the benefit of operational excellence,

location and transformation strategy

Growth in outsourced AuM underpinning resilient base of

Recurring Revenue

-

500

1,000

1,500

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2015 2016 2017 2018 2019

Au

M £

bill

ion

s

UK AFM Assets under Management

AuM hosted / outsourced % (LHS) Total AuM (RHS)

Source: Management information

• Expansion of Luxemburg operation

• Capitalise on increased propensity for outsourcing

• Capture broader benefits of the Local Government Pension Schemes

• Improving profitability of Australian business (complete new platform

implementation)

• Remediation of ex Woodford fund: first distribution remitted end of

January 2020 of £2.1 billion (representing 75.5% of the AUM at the

time of distribution). Working proactively with regulator


88.6 83.8

11.5 8.3

1H 2019 1H 2020



Banking and Credit Management: Overview

Diversification of service offering and jurisdictional expansion broadens opportunity and

strengthens resilience through debt cycles

Financials Key focus

Underlying Strength

14

Diversification of service offering and jurisdictional expansion

strengthens resilience through debt cycles

Strategy

UKIreland

Netherlands

Italy

16%

54%

30%

1H 2020 - Revenue mix

Bank Outsourcing

PortfolioManagement (NPLs)

New LendingServices

• Scale operations in Italy and the Netherlands

• Exploring further expansion into new jurisdictions with

attractive characteristics

• Expanding end-to-end lending proposition

• Global alignment of operations to drive efficiencies

• PES integration planning commenced. Completion expected in

FY 2021

Acquisition

of PES

Attractive deal

economics

Complementary

fit to BCM

Positioned for

growth

Combination

of talent

1 2

3 4

Acquisition of PES creates a leading independent pan-European

servicer with scale and diversification, accelerating existing BCM

growth strategy


167.4 188.7

16.8 26.1

1H 2019 1H 2020



46.3 58.9

121.1 129.8

167.4 188.7

28% 31%

1H 2019 1H 2020


External Revenue Internal Revenue External Revenue %

Technology & Operations: Overview

External revenues continue to grow. Global Transformation program driving alignment of

processes and systems, to provide further efficiencies

Financials

Strategy

Key focus

Underlying strength

Standardised systems and approach across the globe, establish

Centres of Excellence (“CoE”)

• Info Security CoE• Data Analytics CoE

• Coding Development CoE• High volume, low customer

contact processes

• Cloud CoE• Workflow CoE

External revenue continues to grow with an expanded product offering

15

• Delivery of Global Transformation program

• Over 100 FTE already in Mumbai (capacity for 1200+)

• New Leeds CoE now complete, facilitating premises

consolidation in the UK

• Investment in core technology (contact centre, CRM, data hub and

miraqle)

• Continuing growth of external revenue


PEXA (equity accounted investment – Link Group share 44.2%)

PEXA beginning to make a material contribution to Link Group’s financial results as volumes

continue to grow and operational leverage is realised

Financials1

Revenue and transaction volumes

Highlights

Underlying strength

• Volumes continue to grow as the industry embraces PEXA’s effective service

and technology offering, driving record Member satisfaction (NPS +52)

• Continued investment in security and innovation, with 80 platform

enhancements in the past year, facilitating $382B of settlement value on the

platform

• Fostered an extensive network of members connecting over 8,000 legal and

conveyancing firms, 150 financial institutions, multiple land registries and

government offices

• Operating across five largest states representing 96% of national property

transactions, an estimated 70% of all transfers settled on-line

PEXA contributed to the Link Group result as an equity accounted

investment

PEXA continues to perform strongly

Included in

Link Group

result

Note: above figures reflect Property Exchange Australia Limited (PEXA) results for 6

months ending 31 December 2019 and 31 December 2018

16

Network effect driving increased transaction volumes

-

10.0

20.0

30.0

40.0

50.0

60.0

70.0

80.0

90.0

-

250

500

750

1,000

1,250

1,500

1,750

2,000

1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H 2H 1H

FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY20

PE

XA

ex

chan

ge r

ev

enu

e ($M

)

PE

XA

tra

ns

ac

tio

ns

(0

00

's)

Exchange transactions (LHS)

Exchange Revenue (RHS)

30 June year end, A$ million 1H 2020 1H 2019

PEXA exchange transactions (000s) 1,196 842 355 42%

PEXA Revenue 79 51 28 54%

PEXA Operating EBITDA 27 4 23 597%

PEXA Operating NPATA 26 (6) 32 nmf

Year on year change

1. Refer to page 21 for a reconciliation of Operating NPATA to Statutory NPAT.

30 June year end, A$ millionPEXA

(100%)

Link

(44.2%)

Revenue 79

Statutory NPAT (9) (4)

Operating NPATA1 26 11

1H 2020


PEXA continues to invest in security, innovation and customer service

Since inception PEXA has completed more than 3.9 million transactions. Today more than 70% of

all property settlements nationally are completed online

Continuous investment in the platform Delivering exceptional experience

Protecting the property industry and

homebuyers and sellers

In 2019:

• $382B settled on the platform

• 395,000 home buyers benefited from a safer and

more efficient property settlement

• 12,500 consumers registered for secure-app

PEXA Key

Continuous innovation

• 80 platform enhancements in the past year

• Improved User Interface

• Expansion into ACT

• Launch of PEXA Key

• Creation of self-help tools

Better for members

• Exchange Net Promoter Score: +52

• Platform availability: 99.99%

• Member satisfaction: 95%

• Calls answered within a minute: 91%

Better for PEXA’s people

• 94% of employees consider PEXA members in

their day-to-day role1

• 92% of employees feel part of an inclusive team*

• Recipient of the HRD2 Innovative Teams 2020

Diversity and Inclusion Award

“It’s refreshing to spend time with

a company that genuinely

understands their role in our

profession and goes to so much

trouble to try and have a positive

impact for their members”

Jacob Corbett, Director,

Bradley & Bray Solicitors

1. 2019 PEXA staff engagement survey.

2. Human Resources Director magazine.

17


2. Financial information

18


Financial overview

Revenue is resilient in challenging markets. Global Transformation program is broadly on track,

addressing costs and margin compression

19

RSS result tempered by the impact of regulatory change and previously announced client losses and fund mergers, partly mitigated by strong

underlying member growth and project revenues

Non-recurring Revenue in Corporate Markets impacted by lower market related activity in the UK (Brexit)

Increased FUM in FS driving higher revenue

Solid growth in T&O revenue and operating EBITDA

Lower new business activity levels for BCM in UK and Ireland

1. Financial highlights

2. Transformation and Investment

Capex of $48.8 million building foundations for future products and services, and platform refreshes to maintain technology led positioning

in key markets

Global Transformation on track to deliver annualised savings of $50 million by the end of FY 2022, with $11.5 million realised to date

3. Future growth drivers

PEXA continues to grow strongly

Entry into the UK pensions market, with investment in SMART Pension market and a good pipeline of new business opportunities

Positioned well to benefit from super fund consolidation and outsourcing opportunities in Australia

Expansion of BCM through the acquisition of Pepper European Servicing (subject to regulatory approval)


Financial summary

Revenue, EBITDA and NPATA lower than pcp, mostly reflecting the divested CPCS business and

the impact of previously announced client losses and regulatory change in RSS

20

Profit & loss statement 1H 2020 commentary

Comparative information has been restated to reflect

the application of AASB 16 Leases

Lower operating EBITDA performance compared to

the pcp, mostly reflects the divestment of the CPCS

business in June 2019 and the impact of regulatory

change and previously announced client losses in

RSS

Increased D&A reflects the flow through impact of

higher levels of capex, and higher contract fulfilment

cost amortisation. FY 2020 D&A (excluding acquired

amortisation and ROU asset amortisation) is expected

to be between $85 million and $90 million

The effective tax rate for 1H 2020 is 33.1% (pcp

29.4%), impacted by PEXA earnings (non taxable)

and non deductible acquisition related cost. The

underlying effective tax rate is 25.1% (excluding PEXA

earnings and significant items). The expected effective

tax rate for FY 2020 is c.25%

Summary of depreciation and amortisation


Revenue 624.2 714.4 (90.2) (13%)

Operating cost (460.8) (509.4) 48.6 10%

Operating EBITDA 163.4 205.0 (41.6) (20%)

Depreciation and amortisation (53.9) (49.1) (4.8) (10%)

Operating EBIT 109.4 155.8 (46.4) (30%)

Significant items (other) (21.1) (27.5) 6.3 23%

Acquired amortisation (24.0) (26.0) 2.0 8%

EBIT 64.3 102.3 (38.1) (37%)

Net finance expense (17.6) (17.1) (0.5) (3%)

Gain on assets held at fair value 0.2 177.6 (177.4) n/a

Share of PEXA loss (3.9) - (3.9) n/a

NPBT 42.9 262.8 (219.9) (84%)

Income tax expense (14.2) (77.3) 63.2 82%

NPAT 28.7 185.5 (156.7) (85%)

Add back acquired amortisation after tax (inc. PEXA) 33.3 20.6 12.7 62%

NPATA 62.0 206.0 (144.0) (70%)

Add back significant items after tax 19.1 (99.6) 118.7 (119%)

Operating NPATA 81.1 106.4 (25.3) (24%)

Operating earning per share (cents) 15.2 20.1 (4.8) (24%)

Dividend per share (cents) 6.5 8.0 (1.5) (19%)

Year on year change


ROU asset amortisation (AASB 16) (15.6) (16.2)

Other Depreciation and amortisation (38.3) (33.0)

TOTAL Depreciation and amortisation (53.9) (49.1)


Statutory reconciliation

Reconciling items identified are in line with expectations

21

1H 2020 EBIT 1H 2020 commentary

1H 2020 NPAT

Major drivers of significant items are:

− Global Transformation cost $15.3 million

− Acquisition related cost $4.5 million

(predominantly related to the PES acquisition

and the investment in SMART Pension)

Expectation of c.$30-35 million in 2H 2020,

reflecting PES acquisition, RSS international

new business tenders and Global

Transformation program

Statutory NPAT down 85% on the pcp, primarily

reflects the one off gains related to revaluation

of the PEXA investment (non cash) in 1H 2019

PEXA

PEXA is an equity accounted investment with

the following components included in the Link

Group result:

1. The Operating NPATA for PEXA takes into account available unrecognised tax losses.

30 June year end, A$ millionPEXA

(100%)

Link

(44.2%)

Statutory NPAT (8.9) (3.9)-

add back Significant items (after tax) 1.2 0.5

add back Acquired amortisation (after tax) 33.5 14.8

Operating NPATA1 25.8 11.4

1H 2020

109.4

64.388.9

21.1

24.0

13.4

102.3

Operating EBIT Significant Items(other)

Acquired amortisation Statutory EBIT(1H 2020)

Statutory EBIT(1H 2019)

A $ million

Link (exc. CPCS) CPCS (divested)

81.1 62.028.7 50.0

19.133.3

124.3

11.2

185.5

Operating NPATA SignificantItems

after tax

NPATA Acquiredamortisation

after tax

Statutory NPAT(1H 2020)

Statutory NPAT(1H 2019)

A $ million

Link (exc. CPCS) PEXA revaluation (after tax) CPCS (divested)


Cash flow

Strong operating cash flow

22

Cash flow statement 1H 2020 commentary

Net operating cash flow

Improved cash flow conversion mostly reflects timing of

receipt of investment management fee invoices in the FS

business

Working capital improvement reflects:

− Timing on receipt of investment management fee invoices

(payables); partially offset by

− Weaker performance on trade and other receivables; and

− Trade and other creditors (seasonality)

Capital expenditure

Increased capex spend relates to new systems and

technology refresh programs (CRM, contact centre platform,

BCM platform) and Leeds/Mumbai office fit-out. Capex spend

is weighted to first half, overall FY 2020 spend expected to

be 7-8% of revenue

Dividend

Higher dividend paid in cash reflects full year inclusion of

LAS for the FY 2019 final dividend vs 8 months for the FY

2018 final dividend

Other financing cash flow

$324.3 million net movement in borrowings, largely reflects

the application of CPCS sales proceeds to debt

Buyback $17.5 million


Operating EBITDA 163.4 205.0 (41.6) (20%)

Changes in fund assets & liabilities (0.2) (8.6) 8.4 98%

Changes in net working capital 17.5 (37.5) 54.9 147%

Net operating cash flow 180.7 158.9 21.8 14%

Cash impact of significant items (22.1) (24.1) 2.0 8%

Tax (28.7) (45.3) 16.6 37%

Interest (17.6) (15.3) (2.2) (14%)

Net cash provided by operating activities 112.4 74.2 38.2 52%

Capital expenditure (48.8) (39.3) (9.5) (24%)

ROU asset payments (14.1) (15.6) 1.6 10%

Free cash flow (available for capital

management)49.5 19.2 30.3 158%

Acquisitions / divestments (40.2) (39.5) (0.8) (2%)

Dividends paid (66.7) (51.8) (15.0) (29%)

Other financing activities (342.1) - (342.1) nmf

Net increase / (decrease) in cash (399.6) (72.0) (327.6) nmf

Net operating cash flow conversion % 111% 78% 33%

Year on year change


Global Transformation

Global Transformation broadly on track, delivering $11.5 million of savings in 1H 2020

23

Program plan

Initiatives Benefits realised to

dateFY 2020 FY 2021 FY 2022 TOTAL Program

Vendor consolidation /

centralised sourcing$5.6M $10M

Premises consolidation $0.0M $3M

Centres of excellence $0.2M $23M

Operational efficiencies $5.7M $14M

TOTAL PLAN $11.5M $15-20M $30-35M $50M $50M

60%

40%

Project plan Progress

One-off cost of $15.3 million incurred in 1H 2020 (total program cost of $50-60 million remains)

Premises consolidation and Centre of Excellence (CoE) initiatives are tracking slower than planned, overall expectation remains in place

Mumbai CoE established with first staff in place from August 2019, currently over 120 FTE


Fin

an

ce

Ris

k &

Co

mp

lian

ce

HR

& B

ran

din

g

Leg

al

Global Transformation

Standardisation across the globe

24

• Operations CoE opened in Mumbai

• UK Northern hub opened in LeedsRetirement and Superannuation Solutions

Fund Solutions

Banking and Credit Management

Corporate Markets

Centr

alis

ed T

echnolo

gy a

nd O

pera

tions

function s

erv

ing a

ll busin

ess u

nits

Exte

rnal

custo

mers

Cen

trali

sed

sh

are

d s

erv

ices

:

Mumbai CoE complete - approximately 1,200 seat

capacity with over 120 FTE currently in place

New Leeds CoE complete - facilitating premise

consolidation in the UK. Approximate 750 seat capacity

with over 400 FTE currently in place

Technology and Operations

Hubs established in Mumbai and LeedsGlobally aligned business units

Centralised shared services in place


3. Proforma financial information

25


Proforma reconciliation

Link Group has re-presented historical comparatives to align with current reporting

26

Financials

Link Group Proforma reflects the following adjustments to Link Group Reported:

− Exclusion of the CPCS result in 1H 2019, following divestment in June 2019

− FY 2018 (depicted in subsequent charts) includes pre acquisition LAS result for the period 1 July 2017 to 31 October 2017 and excludes CPCS

Link Group Proforma revenue growth is negative 3.6%, on a constant currency basis revenue growth is negative 4.5%

Link Group Proforma Operating EBITDA growth is negative 10.7%, on a constant currency basis Operating EBITDA growth is negative 11.1%

Link Group Proforma Operating EBIT growth is negative 20.4%, on a constant currency basis Operating EBIT growth is 20.7%

30 June year end, A$ million 1H 2020 1H 2019 1H 2020 1H 2019 1H 2020 1H 2019

Revenue 624.2 714.4 - (66.9) 624.2 647.5 (23.3) (3.6%)

Operating costs (460.8) (509.4) - 44.9 (460.8) (464.5) 3.7 0.8%

Operating EBITDA 163.4 205.0 - (22.0) 163.4 183.0 (19.6) (10.7%)

Depreciation and amortisation (53.9) (49.1) - 3.7 (53.9) (45.4) (8.5) (18.7%)

Operating EBIT 109.4 155.8 - (18.3) 109.4 137.5 (28.1) (20.4%)

Operating EBIT margin 17.5% 21.8% n/a 27.3% 17.5% 21.2% (3.7%)

Year on year change

Link Group Reported Adjustments Link Group Proforma

CPCS (divestment)


Revenue summary

Recurring Revenue remains an important feature, underpinning the business’ resilience.

Recurring Revenue represents 84% of 1H 2020 Revenue

27

Revenue profile 1H 2020 commentary

Revenue movement by business unit

Lower Recurring Revenue mostly reflects the impact

of client losses / mergers and partial impact of

regulatory change in RSS, partially offset by growth

in CM, FS and T&O

Lower Non-recurring Revenue mostly reflects lower

levels of market related activity in CM UK (Brexit

related), lower BCM revenue (on lower new loan

portfolios on boarded), partially offset by growth in

RSS, FS and T&O

APAC - 59% EMEA - 41%

APAC vs. EMEA (1H 2020 Revenue)

RSS CM FS BCM T&O Group

Recurring Revenue 525.3 (19.4) 2.1 4.8 (0.9) 20.0 (10.3) 521.6

Non-recurring Revenue 122.1 3.1 (10.9) 1.7 (3.9) 1.4 (10.8) 102.6

Revenue 647.4 (16.3) (8.9) 6.4 (4.8) 21.3 (21.1) 624.2

1H 2019 1H 2020Movement


497 525 522

113122 103

609647

624

81% 81% 84%

1H 2018 1H 2019 1H 2020


Recurring Revenue Non-recurring Revenue


62 5731

6552

126

108

FY 2018 FY 2019 FY 2020

30 June year end, A$ million 1H

2H

Segment results – Retirement & Superannuation Solutions

Previously announced client losses and partial impact of PYS weighing on 1H 2020 result.

Underlying member growth and project revenue remain strong

28

Financials 1H 2020 commentary

Operating EBIT

1H 2020 Revenue

contribution132%

Reduced revenue reflects lower Recurring Revenue,

partially offset by increase Non-recurring Revenue

Excluding the impact of PYS (negative $6.9 million vs

pcp) and net client losses (negative $21.8 million vs

pcp), Recurring Revenue grew by $9.3 million (5.0%)

Strong underlying member growth of 5.2%

Increases in the cost base driven by:

− Volume related cost supporting additional project

revenue

− Elevated cost of c.$3.5 million related to regulatory

change programs

− Partially offset by Global Transformation benefits

and slightly lower costs associated with exited

clients

1. Divisional revenue contribution percentage based on Gross Revenue prior to eliminations.


Revenue 259.6 275.9 (16.3) (5.9%)

Operating expenses (222.6) (212.7) (9.9) (4.6%)

Operating EBITDA 37.1 63.2 (26.1) (41.3%)

D&A (6.5) (6.6) 0.1 2.0%

Operating EBIT 30.6 56.6 (26.0) (45.9%)

Recurring Revenue % 88% 90% (1.8%)

Operating EBITDA margin % 14% 23% (8.6%)

Operating EBIT margin % 12% 21% (8.7%)

Year on year change


Segment results – Retirement & Superannuation Solutions

29



1H 2020 Revenue

contribution132%

APAC - 100%

Recurring Revenue reduction reflects the full and part

year impact of client wins / losses and PYS, and

growth from underlying members and contracted

price escalators

Higher Non-recurring Revenue benefiting from

regulatory change projects (including PYS)

Underlying member growth 5.2% year on year (to

December)2

Underlying resilience remains, supported by strong member growth and project related revenue.

FY 2020 guidance reaffirmed, Operating EBITDA in the range of $75 to $85 million


2. Excludes client wins/losses, ERFs, redundancy trusts and impact of PYS related member account movements (to either ERFS of the ATO).

Revenue bridge

FY 2020 guidance

Revenue for FY 2020 is expected to be in the

range of $480 million to $500 million

Operating EBITDA for FY 2020 is expected to be

in the range of $75 million to $85 million

(adjusted to take account of AASB 16 Leases)

0.5%0.9% 1.2%

0.8%

2.3%2.9%

3.9%

5.2%

Jun-16 Dec-16 Jun-17 Dec-17 Jun-18 Dec-18 Jun-19 Dec-19

Underlying 12 month member growth1

275.9 259.6

3.19.3

(21.8)(6.9)

1H 2019 Net wins /(losses / mergers)

PYS recurringrevenue impact

Project revenue Growth 1H 2020

Revenue (A$ millions)

253 248 229

31 2831

284 276260

89% 90% 88%

1H 2018 1H 2019 1H 2020


Recurring Revenue Non-recurring Revenue Recurring Revenue %


39 4435

41 36

80 80

FY 2018 FY 2019 FY 2020


2H

Segment results – Corporate Markets

Slower market related revenue in the UK weighing on the result, partially mitigated by a stronger

performance across APAC jurisdictions

30


Operating EBIT

1H 2020 Revenue

contribution1

23%

Revenue was down by $8.9 million compared to the

pcp, with a $10.9 million drop in Non-recurring

Revenue (predominantly UK), partially offset by a

$2.1 million increase in Recurring Revenue (further

detail overleaf)

The cost base was broadly flat reflecting:

− Volume related increases supporting Recurring

Revenue growth across most jurisdictions

(including India acquisitions)

− Offset by lower costs, resulting from realisation of

Global Transformation benefits

The margin decline is mostly due to the impact of

lower Non-recurring Revenue (higher margin)

The previously announced divestment of LMS South

Africa is pending regulatory approval



Revenue 183.0 191.9 (8.9) (4.6%)



D&A (10.2) (10.2) 0.1 0.8%

Operating EBIT 34.9 44.1 (9.2) (20.8%)

Recurring Revenue % 70% 66% 4.3%



Year on year change


Segment results – Corporate Markets

Moderate growth in Recurring Revenue, through a combination of client wins and increased

production penetration

31


Non-recurring revenue historical range

1H 2020 Revenue

contribution1

23%

APAC - 47% EMEA - 53%


Growth in Recurring Revenue largely resulting from

new client wins and increased product penetration

across most jurisdictions

New business continues to bolster Recurring

Revenue in a competitive environment. Pricing

remains under pressure and is offset by increased

volumes

Decline in Non-recurring Revenue mostly due lower

market related activity in the UK (Brexit)

Won 30% of IPOs on the ASX and 32% of IPOs that

have gone live on the LSE between 1 July 2019 and

31 December 2019

Link Group’s hybrid AGM technology hit a new record

in Australia & NZ with almost 1.8 million eligible

voting members provided access for RACQ AGM

Launched micro investing app (ShareMeUp) for NZX

listed stocks, allowing retail investors to a dollar cost

averaging investment strategy


119 126 128

5766 55

176192 183

67% 66% 70%

1H 2018 1H 2019 1H 2020



5766 66

53 55

1H 2018 2H 2018 1H 2019 2H 2019 1H 2020



Segment results – Fund Solutions

Strong performance underpinned by growth in AUM resulting from new clients, new funds and

growth in existing funds

32


Operating EBIT

1H 2020 Revenue

contribution1

11%

Strong revenue growth, with Recurring Revenue up

$4.8 million (6.5%) and Non-Recurring Revenue up

$1.7 million

Ex-Woodfood fund generated a $2.7 million drag in

1H2020 v’s pcp (reflecting foregone revenue and

increased costs)

Increases in the cost base driven by:

− Volume related cost supporting additional revenue

− Elevated costs related to remediation activity,

which will continue in 2H 2020

− Partially offset by Global Transformation benefits


1114 15

11

12

21

26

FY 2018 FY 2019 FY 2020


2H


Revenue 86.1 79.6 6.4 8.1%


Operating EBITDA 17.8 16.6 1.2 7.3%

D&A (3.1) (2.6) (0.5) (19.5%)

Operating EBIT 14.7 14.0 0.7 5.0%

Recurring Revenue % 91% 93% (1.4%)



Year on year change


Segment results – Fund Solutions

Strong revenue growth driven by the addition of new funds and increased AUM for existing funds

33


APAC vs. EMEA

1H 2020 Revenue

contribution1

11%

APAC - 10% EMEA - 90%

Recurring Revenue growth reflects a combination of

new clients, increased funds administered for existing

clients and growth in underlying AUM

Total AUM across EMEA increased from £96.6 billion

at 30 June 2019 to £105.9 billion at 31 December

2019

Over £6 billion of AUM growth from the on-boarding

of new client funds

LGPS schemes continue to provide momentum in

AUM growth as local government assets are

consolidated

Increased outsourcing in the UK AFM market,

supporting revenue growth

UK AFM Assets under management2

-

500

1,000

1,500

0.0%

2.5%

5.0%

7.5%

10.0%

2015 2016 2017 2018 2019

AuM

£bill

ions



2. Source: Management information.

68 74 79

46

77180

86

95% 93% 91%

1H 2018 1H 2019 1H 2020




Segment results – Banking and Credit Management

European expansion continues with strong revenue growth in Italy and acquisition related growth

in the Netherlands, partially offsetting lower revenues in the UK and Ireland

34


Operating EBIT

1H 2020 Revenue

contribution1

10%

Revenue was down by $4.8 million on the pcp,

reflecting softer revenue in the UK and Ireland

partially offset by promising organic growth in Italy

and the impact of acquisitions in the Netherlands

Non-recurring revenue decreased on lower

disbursements

Operating costs were down, reflecting:

− Realisation of Global Transformation benefits

− Volume related decreases in Non-recurring

revenue

− Partial offset of increased cost supporting current

and future organic revenue growth in Italy and

cost of the acquired business in the Netherlands


10 128

10

21

12

FY 2018 FY 2019 FY 2020


2H


Revenue 83.8 88.6 (4.8) (5.4%)

Operating expenses (69.3) (72.9) 3.6 4.9%


D&A (6.1) (4.1) (2.0) (47.4%)

Operating EBIT 8.3 11.5 (3.2) (27.5%)

Recurring Revenue % 91% 87% 3.9%



Year on year change


Segment results – Banking and Credit Management

BCM continues to add new NPL portfolios, which partially offset run-off on existing books

35


1H 2020 Revenue

contribution1

10%

Revenue by service


EMEA - 100%

Good contribution to revenue from Italy and

Netherlands

Revenue in the UK and Ireland were lower mostly as

a result of portfolio run-off and the sale of a debt

portfolio, partially offset by the on-boarding of a new

client portfolio

Lower bank outsourcing revenue follows the sale of a

large bank portfolio which was previously

administered by BCM under an outsourcing

arrangement

AUM decreased from £82.7 billion at 30 June 2019 to

£72.7 billion at 31 December 2019

The business announced the acquisition of PES in

January 2020. The acquisition is a highly

complimentary fit, diversifying revenue and providing

greater growth opportunities in Europe. The

acquisition remains subject to regulatory approval

and is expected to complete in FY 2021

23%

47%

30%

1H 2019 - Revenue

Bank Outsourcing

Portfolio Management (NPLs)

New Lending Services

16%

54%

30%

1H 2020 - Revenue


6377 76

11

12 874

8984

85% 87% 91%

1H 2018 1H 2019 1H 2020




Segment results – Technology and Operations

Strong revenue performance with solid internal and external revenue growth, Global

Transformation driving improved margins

36


Operating EBIT

1H 2020 Revenue

contribution1

24%

Overall revenue growth reflects strong performance

on both internal and external revenue

Increases in the cost base driven by

− Volume related cost growth supporting additional

external revenue

− Ongoing cost associated with increased

technology support following a shift to the cloud

− Cost related to internal restructure (further

consolidation of IT services into T&O from other

business units)

− Partially offset by Global Transformation savings

Strong margin performance reflects the impact of

Global Transformation savings, together with

improved margins on communication and analytics

services


2217

26

2428

45 45

FY 2018 FY 2019 FY 2020


2H


Revenue 188.7 167.4 21.3 12.8%


Operating EBITDA 54.1 38.5 15.6 40.5%

D&A (28.0) (21.7) (6.3) (29.0%)

Operating EBIT 26.1 16.8 9.3 55.4%

External Revenue % 31% 28% 3.6%

Operating EBITDA margin % 29% 23% 5.7%

Operating EBIT margin % 14% 10% 3.8%

Year on year change


Segment results – Technology and Operations

Revenue growth driven by stronger internal and external demand. External revenue representing

31% of total revenue

37



1H 2020 Revenue

contribution1

24%

APAC - 80% EMEA - 20%

External revenue grew by 28% on the pcp mostly on

larger volumes for communication services, analytics

and fee for service projects

Internal revenue increase reflects a combination of

increased support related to a shift to the cloud and

the impact of restructure (further consolidation of IT

services into T&O from other business units)

Recently announced partnership with Port Adelaide

Football Club, helping develop a cloud-based

integrated data platform, supporting data driven

analysis and decision-making


116 121130

39

46

59155

167

189

25% 28% 31%

1H 2018 1H 2019 1H 2020


Internal Revenue External Revenue External Revenue %


Capital management

Link will remain prudent in its capital management

38

Net debt 1H 2020 commentary

Dividend and franking summary

Net debt

Increased net debt since 30 June 2019, reflects:

− Investments ($40.2 million) (including SMART Pension)

− Share buyback ($17.5 million)

− Capex ($48.8 million) and Global Transformation ($15.2 million)

Current leverage is 2.3x, which is within the guidance range of 1.5x

to 2.5x

On a proforma basis (inclusion of PES) leverage increases to 2.7x,

which sits above the guidance range. Interest cover ratio remains

over 10x

Dividend

Directors have declared an interim dividend of 6.5 cents per share

(1H 2019: 8.0 cents per share) equating to a total dividend of $34.5

million (1H 2019: $42.6 million)

The dividend will be 100% franked

Moving forward we expect there will be a reduced level of franking,

reflecting the increased weight of non Australian based earnings

Capital management

To date 3.1 million shares purchased for $17.5 million (average

price of $5.59 per share)

Potential PEXA capital returns and further share buy back activity

provide optionality

30 June year end 1H 2020 1H 2019

Interim dividend declared (cents per share) 6.5 8.0

% Franking 100% 100%

1. Leverage calculated in accordance with Link Group’s debt agreement. Net debt excludes ROU liabilities (AASB 16).

Total debt excludes ROU liabilities.

30 June year end, A$ million Dec 19

Total debt 855.9

Cash and cash equivalents (148.8)

Net debt 707.1

Net debt / LTM Proforma Operating EBITDA1 2.27x


4. Closing

39


Priorities

Continued focus on client retention and investment in new products. Global Transformation to

drive efficiency

40

Retain existing clients, increase

cross sell of value added services

and win new business in all markets

Capital management, including

potential PEXA capital returns

Capitalise on investment in SMART

Pension to grow UK pensions

business

Continue to invest in development

of new innovative products and

services

Global Transformation program

Further jurisdictional expansion for

LFS and BCM


5. Q&A

41


6a. Appendix: Additional financial information

42


Constant currency

Strengthening GBP/AUD during 1H 2020 provided a slight benefit to result

43

30 June year end, A$ million1H 2020

Actual

1H 2020

Constant

1H 2019

Actual

Variance

Actual

Currency

Impact

REVENUE

Retirement & Superannuation Solutions 259.6 259.6 275.9 (16.3) 0.0 (16.3) (6%)

Corporate Markets 183.0 180.3 191.9 (8.9) 2.7 (11.6) (6%)

Fund Solutions 86.1 84.9 79.6 6.4 1.2 5.2 7%

Banking and Credit Management 83.8 82.1 88.6 (4.8) 1.6 (6.5) (7%)

Technology & Operations 188.7 188.1 167.4 21.3 0.6 20.7 12%

Group (177.0) (176.8) (155.9) (21.1) (0.2) (20.9) 13%

TOTAL LINK GROUP 624.2 618.2 647.5 (23.3) 6.0 (29.2) (5%)

OPERATING EBITDA

Retirement & Superannuations Solution 37.1 37.1 63.2 (26.1) (0.0) (26.1) (41%)


Fund Solutions 17.8 17.6 16.6 1.2 0.3 1.0 6%


Technology & Operations 54.1 54.7 38.5 15.6 (0.6) 16.2 42%

Group (5.1) (4.8) (5.3) 0.2 (0.3) 0.5 (10%)

TOTAL LINK GROUP 163.4 162.7 183.0 (19.6) 0.7 (20.3) (11%)

OPERATING EBIT

Retirement & Superannuations Solution 30.6 30.6 56.6 (26.0) (0.0) (26.0) (46%)


Fund Solutions 14.7 14.5 14.0 0.7 0.2 0.5 3%


Technology & Operations 26.1 26.7 16.8 9.3 (0.6) 9.9 59%

Group (5.2) (4.9) (5.5) 0.3 (0.3) 0.6 (11%)

TOTAL LINK GROUP 109.4 109.1 137.5 (28.1) 0.3 (28.4) (21%)

Constant currency

variance


Detailed P&L statutory reconciliation for 1H 2020

44

$ million StatutoryBusiness

Combination costs

Global

transformation

Client migration

costs

Other

(non EBITDA)TOTAL Operating

RSS 259.6 - - - - - 259.6

CM 183.0 - - - - - 183.0

FS 86.1 - - - - - 86.1

BCM 83.8 - - - - - 83.8

T&O 188.8 - (0.1) - - (0.1) 188.7

CPCS - - - - - - -

Elimination/Recharges (176.9) - - - - - (176.9)

Revenue 624.3 - (0.1) - - (0.1) 624.2

Employee expenses (297.9) - 8.5 (0.0) - 8.5 (289.4)

IT expenses (55.5) - (0.0) - - (0.0) (55.5)

Occupancy expenses (12.0) - 1.3 - - 1.3 (10.7)

Other expenses (110.8) (0.0) 5.7 0.0 - 5.7 (105.2)

Net acquisition and capital management related expenses (4.5) 4.5 - - - 4.5 (0.0)

Total operating expenses (480.8) 4.5 15.4 (0.0) - 19.9 (460.8)

EBITDA 143.6 4.5 15.3 (0.0) - 19.8 163.4

Depreciation (8.9) - - - - - (8.9)

Amortisation (other) (27.7) - - - - - (27.7)

Contract fulfilment (3.1) - - - - - (3.1)

Right of use asset amortisation (15.6) - - - 1.3 1.3 (14.3)

EBITA 88.3 4.5 15.3 (0.0) 1.3 21.1 109.4

Acquired amortisation (24.1) - - - 24.1 24.1 -

EBIT 64.3 4.5 15.3 (0.0) 25.4 45.2 109.4

Net finance expense (17.6) - - - 1.0 1.0 (16.6)

Gain on assets held at fair value 0.2 - - - - - 0.2

Profit on disposal of subsidiaries - - - - - - -

Share of NPAT of equity accounted investments (3.9) - - - 15.3 15.3 11.4

NPBT 42.9 4.5 15.3 (0.0) 41.7 61.6 104.5

Income tax expense (14.2) (9.1) (23.3)

NPAT 28.7 52.4 81.1

Add back acquired amortisation (after tax) 18.5 (18.5) -

Add back PEXA acquired amortisation (after tax) 14.8 (14.8) -

NPATA 62.0 19.1 81.1

Significant Items


Detailed P&L statutory reconciliation for 1H 2019

45

$ million StatutoryBusiness

Combination costs

Global

transformation

Client migration

costs

Other

(non EBITDA)TOTAL Operating

RSS 275.9 - - - - - 275.9

CM 191.9 - - - - - 191.9

FS 79.6 - - - - - 79.6

BCM 88.6 - - - - - 88.6

T&O 167.4 - - - - - 167.4

CPCS 70.6 - - - - - 70.6

Elimination/Recharges (159.6) - - - - - (159.6)

Revenue 714.4 - - - - - 714.4

Employee expenses (341.6) 0.0 13.6 0.7 - 14.3 (327.3)

IT expenses (57.3) - 0.5 0.1 - 0.6 (56.7)

Occupancy expenses (11.1) - 0.1 - - 0.1 (10.9)

Other expenses (117.2) 0.1 2.7 (0.0) - 2.8 (114.4)

Net acquisition and capital management related expenses (9.7) 9.6 - - - 9.6 (0.1)

Total operating expenses (536.9) 9.7 16.9 0.8 - 27.5 (509.4)

EBITDA 177.5 9.7 16.9 0.8 - 27.5 205.0

Depreciation (9.8) - - - - - (9.8)

Amortisation (other) (22.0) - - - - - (22.0)

Contract fulfilment (1.1) - - - - - (1.1)

Right of use asset amortisation (16.2) - - - - - (16.2)

EBITA 128.4 9.7 16.9 0.8 - 27.5 155.8

Acquired amortisation (26.0) - - - 26.0 26.0 -

EBIT 102.3 9.7 16.9 0.8 26.0 53.5 155.8

Net finance expense (17.1) - - - - - (17.1)

Gain on assets held at fair value 177.6 - - - (177.6) (177.6) -

Profit on disposal of subsidiaries - - - - - - -

Share of NPAT of equity accounted investments - - - - - - -

NPBT 262.8 9.7 16.9 0.8 (151.5) (124.0) 138.8

Income tax expense (77.3) 45.1 (32.3)

NPAT 185.5 (79.0) 106.4

Add back acquired amortisation (after tax) 20.6 (20.6) -

Add back PEXA acquired amortisation (after tax) - - -

NPATA 206.1 (99.6) 106.4

Significant Items


Detailed cash flow statutory reconciliation for 1H 2020

46

$ million

Stat

uto

ry

Inte

rest

Tax

Ne

t o

pe

rati

ng

cash

flo

w a

fte

r

sign

ific

ant

ite

ms

Bu

sin

ess

Co

mb

inat

ion

co

sts

Glo

bal

tran

sfo

rmat

ion

cost

s

Clie

nt

mig

rati

on

cost

s

TOTA

L

Ne

t o

pe

rati

ng

cash

flo

w

NPAT 28.7

Income tax expense 14.2

Net finance expense (Inc. one-offs) 17.6

Gain on assets held at fair value (0.2)

Profit on disposal of subsidiaries -

Share of NPAT of equity accounted investments 3.9

Depreciation and amortisation 79.3

EBITDA 143.6 - 143.6 4.5 15.3 (0.0) 19.8 163.4

Net finance expense (17.6) 17.6 - - - - - - -

Income tax expense (14.2) - 14.2 - - - - - -

Equity-settled share based payment expense (0.3) - - (0.3) - - - - (0.3)

Unrealised foreign exchange loss/(gain) 1.6 (1.6) - - - - - - -

Unwinding discount on deferred acquisition 0.2 (0.2) - - - - - - -

Borrowing cost amortisation 0.7 (0.7) - - - - - - -

Change in trade and other receivables (9.9) - - (9.9) - - - - (9.9)

Change in other assets 2.4 - - 2.4 - - - - 2.4

Change in trade and other payables 26.4 2.4 - 28.8 2.4 (0.1) - 2.3 31.1

Change in employee provisions (3.7) - - (3.7) - - - - (3.7)

Change in provisions (2.1) - - (2.1) - (0.1) - (0.1) (2.2)

Change in current and deferred tax balances (14.5) - 14.5 - - - - - -

Total changes in working capital

(inc. Fund assets & liabilities)(1.4) 2.4 14.5 15.5 2.4 (0.2) - 2.3 17.8

Change in fund assets and fund liabilities (0.2) - - (0.2) - - - - (0.2)

Net operating cash flow 112.4 17.6 28.7 158.6 6.9 15.2 (0.0) 22.1 180.7

Significant Items


Detailed cashflow statutory reconciliation for 1H 2019

47

$ million

Stat

uto

ry

Inte

rest

Tax

Ne

t o

pe

rati

ng

cash

flo

w a

fte

r

sign

ific

ant

ite

ms

Bu

sin

ess

Co

mb

inat

ion

co

sts

Glo

bal

tran

sfo

rmat

ion

cost

s

Clie

nt

mig

rati

on

cost

s

TOTA

L

Ne

t o

pe

rati

ng

cash

flo

w

NPAT 185.5

Income tax expense 77.3

Net finance expense (Inc. one-offs) 17.1

Gain on assets held at fair value (177.6)

Profit on disposal of subsidiaries -

Share of NPAT of equity accounted investments -

Depreciation and amortisation 75.2

EBITDA 177.5 - 177.5 9.7 16.9 0.8 27.5 205.0

Net finance expense (17.1) 17.1 - - - - - - -

Income tax expense (77.3) - 77.3 - - - - - -

Equity-settled share based payment expense 3.3 - - 3.3 - - - - 3.3

Unrealised foreign exchange loss/(gain) 1.2 (1.2) - - - - - - -

Unwinding discount on deferred acquisition 0.0 (0.0) - - - - - - -

Borrowing cost amortisation 0.8 (0.8) - - - - - - -

Change in trade and other receivables (5.7) - - (5.7) - - - - (5.7)

Change in other assets (6.6) - - (6.6) - - - - (6.6)

Change in trade and other payables (17.3) 0.3 - (17.1) (8.6) (0.1) 2.5 (6.2) (23.2)

Change in employee provisions (5.2) - - (5.2) - - - - (5.2)

Change in provisions (2.9) - - (2.9) - 2.8 - 2.8 (0.1)

Change in current and deferred tax balances 32.1 - (32.1) - - - - - -

Total changes in working capital

(inc. Fund assets & liabilities)(5.6) 0.3 (32.1) (37.4) (8.6) 2.7 2.5 (3.4) (40.7)

Change in fund assets and fund liabilities (8.6) - - (8.6) - - - - (8.6)

Net operating cash flow 74.2 15.3 45.3 134.8 1.1 19.7 3.3 24.1 158.9

Significant Items


Balance sheet

48

30 June year end, A$ million31 December

2019

30 June

2019

Cash and cash equivalents 148.8 560.2

Trade and other receivables 257.0 244.8

Other assets 31.0 37.3

Current tax assets 15.1 0.2

Funds assets 481.2 985.9

Assets held for sale 6.9 -

Total current assets 940.2 1,828.5

Investments - equity accounted 698.7 702.6

Investments - other 93.9 51.3

Plant and equipment 247.4 268.9

Intangible assets 2,216.9 2,188.9

Deferred tax assets 49.1 52.0

Other assets 22.4 21.6

Total non-current assets 3,328.3 3,285.4

Total assets 4,268.5 5,113.9

Trade and other payables 296.4 261.3

Interest-bearing loans and borrowings 32.3 30.0

Provisions 13.0 14.8

Employee benefits 40.8 44.7

Current tax liabilities 6.1 7.8

Fund liabilities 480.3 985.6

Liabilities held for sale 1.7 -

Total current liabilities 870.7 1,344.2

Trade and other payables 17.5 29.2

Interest-bearing loans and borrowings 1,078.6 1,393.5

Provisions 40.4 39.9

Employee benefits 5.3 5.3

Deferred tax liabilities 150.2 150.4

Total non-current liabilities 1,291.9 1,618.3

Total liabilities 2,162.6 2,962.5

Net assets 2,105.8 2,151.4

Contributed equity 1,891.7 1,909.1

Reserves (42.2) 15.3

Retained earnings 252.0 223.7

Total equity attributable to equity holders of the parent 2,101.5 2,148.1

Non-controlling interests 4.3 3.2

Total equity 2,105.8 2,151.4


Defined Terms

• IMPORTANT NOTICE: Link Group uses a number of non-IFRS financial measures in this presentation to evaluate the performance and profitability of the overall business. Although Link Group believes that these

measures provide useful information about the financial performance of Link Group, they should be considered as supplemental to the information presented in accordance with Australian Accounting Standards and not

as a replacement for them. Because these non-IFRS financial measures are not based on Australian Accounting Standards, they do not have standard definitions, and the way Link Group calculated these measures

may differ from similarly titled measures used by other companies. The principal non-IFRS financial measures that are referred to in this presentation are as follows:

• Recurring Revenue is revenue arising from contracted core administration servicing and registration services, corporate and trustee services, transfer agency, stakeholder engagement services, share registry services

and shareholder management and analytics services that are unrelated to corporate actions. Recurring Revenue is expressed as a percentage of total revenue. Recurring Revenue is revenue the business expects to

generate with a high level of consistency and certainty year-on-year. Recurring Revenue includes contracted revenue which is based on fixed fees per member, per client or shareholder. Clients are typically not

committed to a certain total level of expenditure and as a result, fluctuations for each client can occur year-on-year depending on various factors, including number of member accounts in individual funds or the number

of shareholders of corporate market clients.

• Non-recurring Revenue is revenue the business expects will not be earned on a consistent basis each year. Typically, this revenue is project related and can also be adhoc in nature. Non-Recurring Revenue includes

corporate actions (including print and mail), call centre, capitals markets investor relations analytics, investor relations web design, extraordinary general meetings, share sale fees, off-market transfers, employee share

plan commissions and and margin income revenue. Non-Recurring Revenue also includes fee for service (FFS) project revenue, product revenue, revenue for client funded FTE, share sale fees, share dealing fees,

one-off and other variable fees.

• Gross Revenue is the aggregate segment revenue before elimination of intercompany revenue and recharges such as Technology and Innovation recharges for IT support, client-related project development and

communications services on-charged to clients. Link Group management considers segmental Gross Revenue to be a useful measure of the activity of each segment.

• Operating EBITDA is earnings before interest, tax, depreciation and amortisation and Significant items. 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. Link Group also presents an Operating EBITDA margin which is Operating EBITDA divided by revenue, expressed as a percentage. Operating EBITDA margin for business segments is

calculated as Operating EBITDA divided by segmental Gross Revenue, while Link Group Operating EBITDA margin is calculated as Operating EBITDA divided by revenue. 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.

• EBITDA is earnings before interest, tax, depreciation and amortisation.

• Operating EBIT is earnings before interest, tax and Significant items. Link Group also presents an Operating EBIT margin which is Operating EBIT divided by revenue, expressed as a percentage. Operating EBIT

margin for business segments is calculated as Operating EBIT divided by segmental Gross Revenue, while Link Group Operating EBIT margin is calculated as Operating EBIT divided by revenue.

• EBIT is earnings before interest and tax.

• Operating NPATA is net profit after tax and after adding back tax affected Significant items (including the discount expense on the un-winding of the Superpartners client migration provision) and acquired amortisation.

Acquired amortisation comprises the amortisation of client lists and the revaluation impact of acquired intangibles such as software assets, which were acquired as part of business combinations. Link Group

management considers Operating NPATA to be a meaningful measure of after-tax profit as it excludes the impact of Significant items and the large amount of non-cash amortisation of acquired intangibles reflected in

NPAT. This measure includes the tax effected amortisation expense relating to acquired software which is integral to the ongoing operating performance of the business. Link Group also presents Operating NPATA

margin which is Operating NPATA divided by revenue, expressed as a percentage. Operating NPATA margin is a measure that Link Group management uses to evaluate the profitability of the overall business.

• Operating earnings per share is Operating NPATA divided by the weighted average number of ordinary shares outstanding for the period. Link Group management considers Operating earnings per share to be a

meaningful measure of after-tax profit per share as it excludes the impact of Significant items and the large amount of non-cash amortisation of acquired intangibles reflected in basic earnings per share. This measure

includes the tax effected amortisation expense relating to acquired software which is integral to the ongoing operating performance of the business.

• Significant items refer to revenue or expense items which are considered to be material to NPAT and not part of the normal operations of the Group. These items typically relate to events that are considered to be

‘one-off’ and are not expected to re-occur. Significant items are used in both profit and loss and cash flow presentation. Significant items are broken down into; business combination costs, integration costs, client

migration costs, IT business transformation (all above EBITDA) and finance charges and one-off gains/losses associated with the fair value measurement or sale of Link Group’s investments (all below EBITDA).


6b. Appendix: Additional business information

50


Link Group: Business Units

Link Group has a diverse service offering across 5 business units. In addition it holds a 44.2%

equity stake in PEXA, which services the property industry in Australia

51

Underlying stakeholders Key services Revenue model

Retirement and

Superannuation

Solutions

Approximately 9 million

superannuation and pension

account holders

Core administration

Compliance and regulatory services

Value-added digital and data services

Contract-based (typically 3 – 5 years)

Fees based on a combination of weekly fee per

member, fee per transaction and fixed fee

arrangements, dependant on client

Corporate MarketsApproximately 35 million

shareholders

Shareholder

management &

analytics

Employee share

plans

Share registry

Company secretarial

Stakeholder

engagement


Fund SolutionsInvestors / unit holders of

over £100 billion of FUM

AFM / management company (“ManCo”)

Fund administration and transfer agency

ISA plan management


Fees typically based on a % of AUM

Banking and Credit

Management

Borrowers of over £70 billion

AUM

Portfolio management (including liquidation and

recovery of non-performing loans)

New lending services

Bank outsourcing

Contract-based (typically 3-5 years)

Technology and

Operations

Over 45 million financial

records

Core systems development and maintenance

Digital communications and solutions

Data analytics

Revenue from supporting other divisions and

external clients

Fee-for-service and licence fees

PEXAOver 395,000 home buyers

using PEXA for settlement

Electronic property exchange platform

Lodgment and settlement services Fee per transaction


224393 396

503714

624

44 49 54 55 65

221274 289 274 294 322 365

410

588

776 780

1,198

1,403

20%

24%

28% 29%28%

25% 24%

31%

34% 35% 36% 36%34%

25% 25%

28%

31%

28%26%

0%

5%

10%

15%

20%

25%

30%

35%

40%

-

200

400

600

800

1,000

1,200

1,400

1,600

FY 2002 FY 2003 FY 2004 FY 2005 FY 2006 FY 2007 FY 2008 FY 2009 FY 2010 FY 2011 FY 2012 FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

1H Revenue 2H Revenue (FY prior to FY2015) Operating EBITDA margin

1H Margin

Link Group: Historical profile

Link Group has grown to over $1 billion in Revenue, evolving from a share registry business to a

provider of technology-enabled outsourced services

52

1. FY 2013 – FY 2019 Operating EBITDA includes public company costs and excludes Significant items. AASB 16 Leases applied from FY 2018.

See Appendix 6A for non IFRS definitions. Non-IFRS measures have not been audited or reviewed in accordance with Australian Accounting Standards.

Revenue profile

2002: Corporate Markets focus Today: Technology-enabled outsourced services provider

Over 40 business combinations in the last 15 years

Over 90 superannuation fund migrations since 2008

FY 2002 – FY 2019 CAGR:

• Revenue: 23%


Retirement and Superannuation Solutions: Market

Link Group is a market leading administrator of financial ownership data, underpinned by

investment in technology, people and processes

53

Global pension asset pools (2018) and last decade growth1 Total Australian superannuation industry size2, 3

1. Based on Towers Watson Global Pension Assets Study 2019. Presents 2018 data.

2. Based on FY 2004 to FY 2018 FuM in Australian Dollars.


0

1

2

3

4

5

FY2004 FY2009 FY2014 FY2019 FY2024 FY2029

FUM

(A

$tn

)

Australian superannuation

administration providers

Fragmented market = Opportunity

Link Group is a low cost

administrator

24.7

3.1 2.9

1.9 1.6 1.50.9 0.7 0.6

0.2

7.7% (0.7%) 7.1% 10.2% 6.8% 5.9% 5.8% n/a 3.9% 2.6%

0

1

2

3

4

5

6

7

8

To

tal a

ss

et p

oo

l 20

18

US

$ tr

n

25

CY2008 to CY2018 CAGR (%)

34%

48%

10%

Superannuation administration (Australia) by members3

Link

Inhouse

Mercer

Other (3%)

SMSF (5%)

22%

62%

11%

Superannuation administration (Australia) by cost3

Link

Inhouse

Mercer

Other (5%)


$1

01

Industry average (exc. Link): $197

Industry average (inc. Link): $163

Lin

k

Su

nsup

er

AM

P

In h

ou

se

Me

rce

r

CB

A

NA

B

Oth

er

Westp

ac

Su

ncorp

IO

OF

Ma

cq

ua

rie

Average administration fee per account ($ pa)1

Retirement and Superannuation Solutions: Market

Link Group is well positioned to benefit from increased outsourcing given our competitive

advantage from our proprietary technology, quality service offering and operating scale

54

Key outsourcing drivers Link proposition

Continually evolving and

increasingly complex superannuation system imposes

platform & administrative burdens

Link Group maintains control over its

proprietary technology. The cost of

regulatory change is disbursed across

all clients

Service benefits to

superannuation fund members is

paramount

Link Group’s clients have access to a

much broader array of product and

specialist providers

High level of public and

regulatory scrutiny on costs

Link Group’s clients benefit from

operating scale and genuine market

based pricing

Data security andredundancy

Link Group spends over

$200 million per annum supporting

and developing its technology


Link Group is well placed to benefit from further

outsourcing

Link Group’s scale enables its clients to operate at the lower

end of the cost curve


Corporate Markets: Market

Leading player in all key Corporate Markets geographies

55

Revenue Split:

Revenue by Service:

Share registry

Shareholder mgmt and analytics

Stakeholder engagementEmployee share plans

Company secretarial

Recurring Non-Recurring

Corporate Markets product suite, geographic footprint and market position1,2 Characteristics

Source: ASX / publicly available stock exchange data

1. Based on the number of companies serviced in the index as at May 2019.

2. Reflects Corporate Markets business unit from 1 July 2019.


Fund Solutions: Market

Link operates in key European markets, and is well positioned to benefit from an ongoing

propensity to outsource

56

European market Outsourcing

United

States

Asia

UK

AUM approx.

£1.3 trillion

Ireland

AUM approx.

€3.0 trillion

Luxembourg

AUM approx.

€4.7 trillion

US fund managers

distribute to continental

Europe either through

Ireland or Luxembourg 77% of non-domestic funds

registered for distribution in

Hong Kong are Luxembourg-

domiciled funds

Asian fund managers

distribute to continental

Europe primarily though

Luxembourg

EU jurisdictions have ~€10T AUM, LFS operates in the largest of

these segmentsGrowth in outsourced AuM underpinning resilient base of

Recurring Revenue

-

500

1,000

1,500

0.0%

2.0%

4.0%

6.0%

8.0%

10.0%

2015 2016 2017 2018 2019

Au

M £

bill

ion

s

UK AFM Assets under Management


• Growth in savings and investment in collective scheme to drive increase in AuM

• Investment managers increasingly outsource to reduce regulatory burden, drive cost efficiency, simplify cross border complexity and focus on investing activities and distribution

• Ongoing propensity to outsource accelerated by large wave of new complex regulation (UCITS V&VI, AIFMD, MiFID II, PRIPS, CP86, FCA AMMS)

• National regulators increasingly favouring independent governance acting as an extra layer of oversight

Europe


Fund Solutions: Market

Due to growing levels of regulation there is an increasing propensity to outsource. Link Group

has specialist expertise to manage this challenge on behalf of clients

57

Depositary / Trustee

Safeguards assets,

Operational oversight

Sponsor

AFM

Retains legal and regulatory

responsibility for fund

Fund roles (some outsourced to third party

outsourcing providers)

Fund Administrator Transfer Agency

Investment Manager Distribution

LFS is Fund Administrator and/or Transfer Agent

for ~98% of its AFM clients

Law Firm

Advice on set-up

Accountant / Auditor

Yearly check of

books

LFS acts as AFM thereby responsible for the operations of the fund

LFS active

Depositary / Trustee

Safeguards assets,

Operational oversight

Fund Board of Directors

ManCo

ManCo appointed by Fund Board to take on

responsibility of the management of the fund,

appointing the investment manager, administrator

and the distributor

Fund roles (some outsourced to third party

outsourcing providers)

Fund Administrator Transfer Agency

Investment Manager Distribution

LFS is Fund Administrator and/or Transfer Agent

for 87% of its ManCo clients

Law Firm

Advice on set-up

Accountant / Auditor

Yearly check of

books

LFS owns a Management Company (ManCo) from which it can support third party

funds and provide AIFM services

LFS active

Onshore (i.e. UK) Offshore (i.e. Ireland)


Banking and Credit Management: Market

Shifting market dynamics will create opportunity for both service and jurisdiction expansion. Link

Group is well positioned to take advantage of the market dynamics

58

European GDP growth of 1.6% forecast for 2020; general slowdown in Europe due to Global uncertainty

Developing regulatory landscape may provide opportunities

Bank Balance Sheet Clean-up - the ECB has set target dates for banks to make full provision for bad debts; potential to stimulate further NPL sales

Global economies at different phases of a recovery cycle

Increasing move towards automation and digitisation

Bank outsourcing increasing (post deleveraging) embracing new Fintech Digital solutions

€

€P

ort

folio

M

anag

em

en

tB

ank

Ou

tso

urc

ing

Ne

w L

en

din

g Se

rvic

es

• Jurisdictional expansion – follow the NPL curve around the globe

• Scaled growth in Italy

• Expansion into Greece

• Explore Indian and Chinese markets

• Outsourcing of non core activities

• Optimisation of current proposition by leveraging Fintech / Regtech capability

• Scale the Netherlands business

• Expand end-to-end lending proposition

• Partner with start up / challenger banks and non-bank lenders

Shifting market dynamics: Link Group opportunity:


Banking and Credit Management : PES Transaction overview

59

Attractive

transaction

structure

Accretive

transaction

Efficiency

opportunities

• €165m (~A$266m) upfront cash consideration for 100% of PES and contingent cash

payments of €35m (~A$56m) over 3 years (based on pre-agreed milestones relating to

protection of existing AUM and achieving certain growth hurdles in Spain, Greece and

Cyprus - refer section 4)

• Structure designed to mitigate downside risk of existing contracts as well as execution risk

on achieving growth in the Mediterranean region

• Attractive acquisition multiple of ~8.2x normalised CY19 EBITDA (upfront) and ~6.0x

(including efficiency benefits and deferred payment for existing AUM protection)1

• Double digit accretive to Link Group Operating EPS2. Further realisation of efficiency benefits

will enhance accretion by 5% to 6%

• Aligns with Link’s focus on efficient capital allocation and maximising shareholder value

Notes: (1) Transaction multiple excludes the €20m deferred payment in relation to achieving growth hurdles in Spain, Greece and Cyprus given Link has attributed limited value upfront and this consideration will

only be paid if additional growth hurdles are achieved. (2) EPS accretion calculated on €180m cash consideration (including €15m of deferred payment related to protection of existing AUM).

• PES is highly complementary to BCM with overlapping footprint in UK & Ireland. Scope to

streamline the combined operating model under Link Group’s ownership

• Annual efficiency benefits estimated to be ~€10m (~A$16m) (pre-tax) to be realised over

the medium term (requires an estimated one-off investment spend of ~€15m (~$A24m) to

achieve the efficiency benefits)


Banking and Credit Management : PES Business Overview

60

Notes: (1) based on unaudited management accounts for the year ended 31 December 2019 (as adjusted); Normalised EBITDA excludes one-off costs predominantly related to separation of the servicing business

from Pepper, technology upgrade and remediation projects.

16

20

Dec-18A Dec-19A

51% 45%

2%

2%

Total Dec-

19A AUM:

~€39bn

Overview

Solutions across the loan cycle from origination

support and on-boarding to account settlement

and arrears management

End-to-end

servicing

Complementary asset management services

including portfolio due diligence, valuation

services, panel management and real estate

advisory

Asset

management

& advisory

• The PES business within the Pepper Group provides end-to-end

loan servicing, advisory and asset management & advisory services

in Europe

• PES predominately operates in the UK and Ireland, with operations

also in Spain, Greece and Cyprus

• PES has a diversified customer base, consisting of a range of

investors, banks and non-bank financial institutions

• PES has AUM of ~€39bn and generated FY 2019 (ending 31

December 2019) revenue of ~€93m and normalised EBITDA of

~€20m1

Services

Financial snapshot

Revenue by geography (€ million)

UK Ireland Spain

Cyprus Greece

Group EBITDA (€ million)

+27%

+13%

29 29

40 51

6 5 6

3 1 4

82 93

Dec-18A Dec-19A


Te

ch

no

log

y a

nd

Op

era

tio

ns

Technology & Operations: Market

T&O is the hub of technology and operations capability which services the Link Group business

units, and also provides services directly to external clients

61

In-house fund

administration

software

Data analytics

Digital solutions

Digital

communications

Proprietary software

Applications

Operations

Retirement and

Superannuation

Solutions

Corporate Markets

Fund Solutions

Banking and Credit

Management

Infrastructure

A single global business unit providing full technology and operational

capability across Link Group:

Inte

rna

l +

Ex

tern

al c

lie

nt

se

rvic

es

Inte

rna

l c

lie

nt

se

rvic

es

Standardised systems and approach across the globe,

establish centres of excellence (“CoE”)

• Info Security CoE• Data Analytics CoE

• Coding Development CoE• High volume, low customer

contact processes

• Cloud CoE• Workflow CoE

Technology and operations hubs that supporting Link

Group’s other divisions and providing services directly to

external clients

Innovation and data analytics capabilities that enable

Link Group to differentiate itself from competitors

T&O engages directly with external clients with value-

added services, implementation and licensing contributing

31% of T&O revenue in 1H 2020

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


Glossary

Terms

1H First half (6 months) ended 31 December

2H Second half (6 months) ended 30 June

APAC Asia Pacific

BCM Banking and Credit Management

CAGR Capitalised annual growth rate

CoE Centre of excellance

CM Corporate Markets

CPCS Corporate & Private Client Solutions

D&A Depreciation and Amortisation

EMEA Europe, Middle East, Africa

FS Fund Solutions

FY Fiscal year ended / ending 30 June

LAS Link Asset Services

Terms

LTM Last 12 months

PES Pepper European Servicing

pcp Prior corresponding period

pp Percentage point

PMIF Putting Members’ Interests First

PYS Protecting Your Superannuation legislation

RSSRetirement & Superannuation Solutions (formerly

Fund Administration

T&O Technology & Operations


End

63

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