AGM Presentation

Rubik Financial Limited

(ASX code: RFL)

Annual General Meeting

26 November 2013

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AGM Agenda

• Welcome & Procedural matters

• Notice of Annual General Meeting• Financial Reports

• Resolution 1 – Election of Craig Coleman as Non Exec Director & Chairman

• Resolution 2 – Adoption of Remuneration Report

• Resolution 3 – Ratification of Shares issued to Wyllie Group

• Resolution 4 – Ratification of Shares issued to Provisio vendors

• AGM Investor Update:• Chairman’s Address

• Managing Directors updates & questions

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Disclaimer

• The Company and its respective directors, employees, agents and consultants shall have no liability (including liability to any person by reason of negligence or negligent misstatement) for any statements, opinions, information or matters (express or implied) arising out of, contained in or derived from, or any omission from the Presentation, except liability under statute that cannot be excluded. The presentation contains reference to certain intentions, expectations and plans for the Company. These intentions, expectations and plans may or may not be achieved. They are based on certain assumptions which may or may not be met or on which views may differ. The performance and operations of the Company may be influenced be a number of factors, many of which are outside the control of the Company.

• No representation or warranty, express or implied, is made by the Company or any of its representative directors, officers, employees, advisors, or agents that any intentions, expectations or plans will be achieved either totally or partially or that any particular rate of return will be achieved. Actual results and developments will almost certainly differ materially from those express or purport to be inclusive or to contain all information which its recipients may require in order to make an informed assessment of the Company’s prospects. You should conduct your own investigation and perform your own analysis in order to satisfy yourself as to the accuracy and completeness of the information, statements and opinions contained in this presentation before making any investment decision.

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To consider and if thought fit, to pass, with or without amendment, the following Resolution as an Ordinary Resolution:

“That Mr Craig Coleman who retires in accordance with clause 7.1(e)(2B) of the Company’s Constitution and being eligible, offers himself for re-election, be re-elected as a Non-Executive

Director and Chairman.”

For Against Abstain Total

113,816,386 230,674 62,874 114,109,934

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RESOLUTION 1 – RE-ELECTION OF CRAIG

COLEMAN AS NON-EXEC DIRECTOR & CHAIRMAN

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RESOLUTION 2 – REMUNERATION REPORT

To consider, and if thought fit, pass the following resolution as an ordinary resolution:

“That the Remuneration Report of the Company for the financial year ended 30 June 2013 is adopted

For Against Abstain Total

90,428,674 420,180 23,261,080 114,109,934

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RESOLUTION 3 – RATIFICATION OF SHARE ISSUE

TO WYLLIE GROUP

To consider and if thought fit, to pass, with or without amendment, the following Resolution as an Ordinary Resolution:

“That for the purpose of ASX Listing Rule 7.4, and for all other purposes, the allotment and issue of 30,000,000 shares to Wyllie Group Pty Ltd on the terms and conditions set out in the Explanatory Statement is approved”

For Against Abstain Total

68,687,336 281,169 45,081,429 114,049,934

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RESOLUTION 4 – RATIFICATION OF SHARE ISSUE

TO PROVISIO VENDORS

To consider and if thought fit, to pass, with or without amendment, the following Resolution as an Ordinary Resolution:

“That for the purpose of ASX Listing Rule 7.4, and for all other purposes, the allotment and issue of 2,133,620 shares to the vendors of Provisio Software on the terms and conditions set out in the Explanatory Statement is approved”

For Against Abstain Total

113,703,136 342,777 4,021 114,049,934

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AGM Presentation

Rubik Financial Limited

(ASX code: RFL)

AGM Investor Update

26 November 2013

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Corporate Snapshot

Note: Gearing = Net Debt / (Net Debt + Total book value of equity). Note: EV/EBITDA (fwd) based on FY14 EBITDA guidance of $8m; EV/EBITDA (ttm) based on FY13 underlying EBITDA of $5.8mSource: Rubik Annual Report 2013, Financials via Bloomberg as at close 18/11/2013

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Nov-12 Jan-13 Mar-13 May-13 Jul-13 Sep-13 Nov-13

Rubik share price ASX300 IndexASX300 IT Sector Index

= base

12 month share price performance

Share data (ASX: RFL)

Current Price $0.24

Market Capitalisation

$62.7m

12 month price range

$0.08-$0.31

Number of shares 261.3m

Avg. daily volume 0.6m

Financials and key ratios

Cash $3.8m

Borrowing $7.2m

Net Debt $3.4m

Enterprise Value $66.1m

EV/EBITDA (fwd) FY14 8.3x

EV/EBITDA (ttm) FY13 11.4x

Gearing 15%

• Craig Coleman (Chairman, Non-executive)• Andrew Moffat (Non-executive)• John Wilson (Non-executive)• Ian Hunter (Non-executive)

• Wayne Wilson (MD Wealth Segment)• Dr Ken Carr (MD Banking Segment)• Paula Kensington (Corporate CFO)

Board

Executive

Governance and Leadership Team

Key Financials

~28% TSR

~150% TSR

• Software for Australian financial planners• Planning and practice support software• Strong Institutional customer base

• Core banking systems for Australian institutions• Unique hosted ‘pay as you go’ offering• Further channels and collections/payments products

Wealth Segment

Banking Segment

Business description

• Australian Fintech- Information Technology for Financial Services industry participants

Industry

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Presentation summary

1 Where we have been

2 Where we are now

3 Where we are going

• Started in FY08; identified Australian FINTECH as attractive segment- favourable industry trends have materialised

• Start up phase of broader Banking software acquisitions; then transformational Wealth acquisition- now driving returns

• We are harnessing learnings from the first 2 phases; moving to a tightly focused and customer orientated business model

• Building an Australia-based Fintech company of relevance• Operating in profitable niches, high recurring revenues• Supporting Wealth and Banking operating segments through

portfolio direction setting /resource allocation and scale/capability advantages in shared back-end (inc hosting)

• Wealth offers strong growth prospects, Banking presents uncertain upside and further ‘strong fit’ deals are considered

• Corporate ambition for ASX300 membership in 3 years• Flight path of significant growth – average ~30%pa operating

segment EBITDA targets to FY16• Solid investor proposition- low downside given strong

recurring revenue, plus solid upside from Wealth and further speculative upside from Banking and Wealth

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1 Where we have been

2 Where we are now

3 Where we are going

• Started in FY08; identified Australian FINTECH as a highly attractive segment with favourable industry trends• These trends have materialised,

making the market highly attractive

• After learning about the market and displaying investment patience, started making acquisitions; despite delays in traction, now starting to drive returns

• We are driving returns by harnessing learnings from the first 2 phases; moving to a focused and customer orientated business model

Agenda: Rubik Financial Investor Presentation Nov-13F

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Rubik started in FY08; we wanted to be in the FINTECH space- and still do

Australian FINTECHSoftware/IT Aus. Financial Services

Favourable provider economics• Highly scalable business, strong

growth potential especially for ‘off the shelf’ products

• Recurring license revenues

• Hosting/SaaS model emerging, increasing software market size and profitability

Robust customer dynamics• Large ecosystem of long-

established potential customers

• FS industry is profitable and poised for further growth-especially Australian Wealth

• Large contract potential given scale of institutional customers

• Strong relationships and low churn with reputable and highly regulated customer base

Large, fragmented and growing market• $2.3bn market in Australia, $30bn in Asia

• Fragmented market; long tail of specialist providers, opportunities for acquisitions to enhance governance and scale

• Financial institutions increasingly preferring buy over build on applications

• Attractive consumption pricing model and cost savings from SaaS

Favourable tailwinds have now emerged and gained strength;highly attractive market

FY08

Today

Favourable provider economics continuing

Some inertia in adopting hosting but strong momentum

Briefly checked by GFC but sound underlying industry

Source: Ovum for market sizes

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After a long start-up period, Rubik is now at the point of driving returns

FY10FY09 FY11 FY12 FY13 FY14

FY10FY09 FY11 FY12 FY13 FY14

Achieved first installation of T24 software at MCU

Sold non-core asset (Shelf Company)

Completed more complex T24 ‘go

live’

Acquired TemenosT24 Core Banking

System license

Completed COIN Acquisition(Institutional software)

Completed Provisio Acquisition

(scaled advice software)

Completed Visor Acquisition (Independent Financial

Adviser software)

Wealth

Banking

FY08: Rubik performs initial raising, acquired Swift Call (Phone, IVR and Internet)

Acquired El-Ten (internet banking, BPAY interface,

card origination)

Acquired Admerex(collections software)

Transformational acquisition

Driving returns

• Broad focus, accumulating software across the banking value chain (e.g. internet/ mobile…)and positioning these around a world class core banking product

• Traction hampered by GFC and slower than expected adoption of SaaS• ‘Patient Cashbox’- scanning and identifying transformational acquisition

• Patience and focus in negotiating and integrating pivotal Wealth acquisition

• Driving organic growth and returns in existing segments

• Patiently scanning for further profitable niche acquisitions

Start-up and learning the landscape

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Investment $7m Investment $0.2m Investment $6m

Investment $26.4m Investment $0.2m Investment $4.4m Total Investment Wealth $31m

Total Investment Banking $13.2m

Total Group Investment $44.2m ** Note: Investment costs represent actual purchase price paid and excludes transaction costs, transition costs and

ongoing working capital requirements

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Banking

Wealth

Share price performance reflects change in competitive focus and earnings growth

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Rubik Share Price

FY10FY09 FY11 FY12 FY13 FY14

$0.30

$0.20

$0.10

$0.00

$0.30

$0.20

$0.10

$0.00

Broader focus: tried to be all things to all people; operating on many fronts

Narrower focus: operate in profitable niches where we have a competitive advantage

Offerings

CompetitiveFocus

Superior product: trying to compete on superior functionality

Superior customer focus:competing on value proposition, customer service

Transformational acquisition

Start-up and learning the landscapeDriving returns

Valuation At/below net cash position: market uncertain of value creation potential

As earnings stream: market belief builds in current earnings streams and growth becomes plausible

Source: Financials via Bloomberg as at close 18/11/2013

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1 Where we have been

2 Where we are now

3 Where we are going

A Wealth

• Who we are now

• Current operating portfolio

• Portfolio strategy

B Banking

C Open to further M&A

Agenda: Rubik Financial Investor Presentation Nov-13F

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Who we are now

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• Same mission as start-up in 2008: ‘Building an Australian based FINTECH company of relevance’

• We design, build, host and support software and data for Financial Services industry participants

• We provide financial planning software to wealth advisers and core banking systems including other related banking software

o We focus on delivering customer value in profitable niches

• We have a reliable and established market position

o We are big enough for solid governance and trust from institutional partners, remaining agile to be entrepreneurial and responsive to our customers

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Rubik Mission

Building an Australia based FINTECH company of relevance

Centralised portfolio management Portfolio governance: target setting, resource allocation and deal making capability

Wealth Segment

• Software for financial adviserso Comprehensive financial planning tools enabling full

compliance to burdensome regulationso Planner workflow, CRM and practice management

• One of two clear market leaders, strong market share with ‘big 5’ institutional planners through COIN product

• Leading scaled advice product through Provisio acquisition, and strong exposure to independent market through Visor

Banking Segment

• Pay as you go, hosted core banking systems for small/medium existing Australasian institutions and all new entrants

• Channels (software internet and phone banking)

3rd Segment?

• Consider further opportunities in profitable niches in FS-related IT

• Only where we will unlock value through fit with our portfolio management and shared back-end

Back office scale economiesCommon back-end: shared hosting capability, development quality methods and support services,

Portfolio summary:Operating segments in profitable FinTech niches, clear value adds from centre

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$12.6m

$6.6m

$10.3m

$3.0m

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100%

Revenue EBITDA

Corporate centre:

FY13 Operating segment financials

Consolidated result

-$3.7m-

$5.8m$22.9m

Wealth

Banking

Segment strategy: Solid foundation and growth prospects from Wealth, further upside from Banking and potential 3rd Segment

• Game changing upside potential from scaled/direct adviceo Forecast market shift to scaled/direct advice a major

opportunity given our leading share at ‘big 5’ institutional planners and our scaled advice capability and product

• Sustain and grow our ‘core’ earnings streamo Driving improvements in product, user experience and customer

value proposition (e.g. drive hosting/ SaaS)o Various opportunities in plan for incremental growth

3rd

Segment?• Patiently scan for profitable niche buys in FS-related IT

o Highly selective acquirers- burden of proof on ‘why us’ vs otherso Value focus- EBITDA per share accretive – composed deal making

• Real EBITDA upside potentialo Unexciting base case contribution- continued challenges in

overcoming core system switching costs for existing institutionso Possibility of strong upside given additional core banking sales

(including new entrant customers) over fixed cost base

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Financials: Strengthening operating returns, translating to real earnings growth

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$0m

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$40m

FY11 FY12 FY13 FY14e

Revenue from continuing operations

-$2m

$2m

$6m

$10m

FY11 FY12 FY13 FY14e

Underlying EBITDA

-$2m

$2m

$6m

$10m

FY11 FY12 FY13 FY14e

Operating Cash Flow Normalised EPS

Source: Rubik Annual Report 2012, 2013 and indicative Rubik management guidance for FY14e

-0.5c

0.5c

1.5c

2.5c

FY11 FY12 FY13 FY14e

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1 Where we have been

2 Where we are now

3 Where we are going

A Wealth

o Provides planning software for financial advisors

o Solid position- in top 2 in consolidating market

o Very large underlying Australian wealth

management market with strong growth forecast

o Product and retention strong - but not complacent

o Well positioned for future wealth trends

B Banking

C Open to further M&A

Agenda: Rubik Financial Investor Presentation Nov-13F

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• ‘Advisers’/’planners’ provide financial advice to clients and are the key access point to steer customer investment choice

• Wraps / mastertrusts provide a menu of products (therefore steer planners fund choices) and administer client funds

Wealth Segment: We provide planning software for financial advisers

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• Design, creation and operation of managed funds

Wealth market value chain

What our software

does:

Who we service:

We provide financial advisers with software

Planner Tools• Financial planning advice calculators• Enables compliance to complex regulatory

requirements- generating ‘statements of advice’-both comprehensive and scoped/scaled advice

• Connect to research providers, data feeds and live product pricing data

Practice Management• Planner workflow• CRM and sales tools• Compliance reporting

Traditional Planners• Institutional Advisers• Boutiques• IFAs

Emerging advice segments• Industry super• SMSFs• Other scaled advice

Our customers include all types of advisers

Advising Funds ManagementPlatforms

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Wealth Segment: Strong upside anticipated, low downside potential

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$0m

$2m

$4m

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$10m

$12m

$14m

Revenue OperatingCosts

EBITDA

Recurring

Non-recurring

• Most (83%-FY13) of our Wealth segment revenue is earned as licence fee or consumption based usage fees on a recurring basis

• We also earn project (non-recurring) revenue for bespoke configurations for individual customerso This is driven by customer customisation and multiple releases

being ‘live’- intention is to migrate non-recurring income to recurring through aligning customers onto latest release

• Our main cost is development labour- as such largely fixed.o Software is easily scalable- Increasing revenue over our largely

fixed cost base would generate proportionally higher EBITDAo E.g. 10% increase in revenue could drive >30% EBITDA increase

COIN Visor Provisio

Conventional comprehensive planning software for Instos

Conventional comprehensive planning software for IFAs

Unconventional Scaled Advice planning software, primarily for institutions

Currently 3 customer-facing product brands

FY13 Financial Performance Our business model

Operating Costs(>75%

fixed dev’tlabour costs)

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Wealth Segment: Exposure to large underlying market with strong growth prospects

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2011 2014 2017 2020 2023

Australian wealth industry Pieces of Advice (‘000s)

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$200m

$400m

$600m

$800m

$1000m

$1200m

$1400m

2003 2007 2011 2015 2019 2023

CAGR 6.25%

CAGR 9%

Australian Retail Funds

Retail Fund growth has been strong andis expected to continue

Number of pieces of advice growing

Note: CAGR = Compound Annual Growth RateSource: Rice Warner, Credit Suisse, Plan for Life

• Increased fund flows- employer super contribution legislation offsetting wave of baby boomer retirements

• Investment returns likely to improve (above GFC era average returns)

• Shift to scaled advice forecast, driven by FoFA and other regulation, plus social and technological trends

• Comprehensive planning advice expected to hold firm despite rise in scaled advice

Key

Comprehensive Advice

Scaled Advice

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Wealth Segment: Solid position within current software planning market

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Strong position serving the Big 5 instos that now lead the advice market

Decent boutique presence through COIN

Source: Money Management Top 100 Dealers Survey, Plan for Life, Credit Suisse, Investor Trends Planner Technology Report

Indep-endent

WBC

CBA

Boutique

# Advisers

Big 5 Instos

Recently gained exposure to IFA segment through Visor acquisition

Australian Market: Rubik presence:

Great coverage of ‘big 5’ instos->40% of all planners, and >80% of big 5 salaried planning groups

Market share by # of planners

Market consolidating towards COIN & Xplan; smaller players losing share

• 2 clear market leaders, with share gains for Rubik and IRESS in their flagship COIN & Xplan product brands

• Rubik clear second to IRESS ; long established positions• Long tail of smaller players, but these have lost share

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Wealth Segment: Strong product and retention but not complacent

Source: Investment Trends (market share from planner survey, products scores from expert functionality review) Note: *Adviser NETgain is Westpac only, and rated below ‘good’ in 2 key areas)t

Product Functionality Score

Strong product but not complacent; investing in development

Customer retention excellent; investing further in COIN user experience

• We have a very strong producto Only Xplan and COIN score ‘good’ or better on all aspectso 2 clear product leaders* contesting the market

• But not complacent- significant work underwayo Previous owners of COIN under-invested in developmento Our recent development on ‘must-haves’ e.g. compliance to

FoFA and database integrity (achieved quality certification)o Now executing a focused product development plan

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Estimated Market Share

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• Our customer retention is very strongo Didn’t lose a single customer during transitiono Internal focus on retention rather than new saleso Switching costs make market churn relatively infrequent

• But not complacent – user and buyer value focuso Investing in COIN user experience and customer value

proposition to defend and grow core revenue streams

0%

10%

20%

30%

Market COIN

18% market churn is primarily smaller software companies losing share to

COIN and Xplan (often driven by planner consolidation to big 5)

Churn rate (2013)

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Wealth Segment: Well positioned for future software planning market trends

Slide 26

Planner software providers to benefit from industry emphasis shifting to advisory

Major growth predicted in scaled advice; COIN uniquely positioned to lead market

Industry emphasis shifting to advisory

Software positioned

to drive productivity

• FoFA regulatory changes putting competitive focus onto advisory to win customers

o Commissions restricted in platforms and funds

o Lower recurring revenues in these areas

• Software tools positioned to drive productivity improvements

• Potential to unlock significant value e.g. through enhancing planner productivity, further integration to platforms

Trends in wealth market set to benefit leading planner software providers

0

400

800

1,200

2011 2014 2017 2020 2023

Australian Wealth industry pieces of scaled advice (‘000s)

• Major industry growth predicted in scaled advice• i.e. modular advice rather than comprehensive plans• Driven by FoFA regulatory changes• Previously unadvised segments to enter value chain

• Rubik uniquely positioned to lead in scaled advice• Industry leading scale product, capability and market

share through Provisio• Strong enduring customer relationships at 4 out of the

5 big institutions’ salaried planners

CAGR: 15%

Source: Credit Suisse for pieces of scaled advice forecast

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Wealth Segment: Clear path ahead to execute on solid growth initiatives

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StrategicImperative

Initiatives

Plausible Incremental

Segment EBITDAgrowth by FY16

Why we are confident of success

Product augmentation

• Product enhancement• Scaled and scoped advice• Hosting and system

integration

$8m

(incremental on FY13 underlying segment EBITDA of $6.6m)

• Clear prioritised road map, sufficient resourcing• Leading Provisio product and know-how combined

with strong COIN big 5 customer relationships• Mature and proven hosting capability- SaaS and

hosted planning software already proven by Xplan

Customer acquisition &

service capability

developments

• Enhanced sales & marketing• Greater service in training,

education, compliance management and reporting

• Clear opportunities to improve in sales and marketing practices and results with minimal cost

• Training/compliance management a logical layer to increase retention

Product renewal

• Introduce entirely new GUI• Integrate existing smart

capabilities and refresh where appropriate

• Sufficient development resources to deliver on requirements

Carefully pursue adjacencies

• Mortgage market opportunities

• Self managed super fund opportunities

• Asian opportunities (long-term i.e. post FY16)

• Encouraging early discussions with partners• Clear fit for planning tools with SMSF and mortgages• Asia- not confident of returns- low focus for now, but

monitoring our key institutional customer needs as they ponder entry into Asian Wealth market at scale

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1 Where we have been

2 Where we are now

3 Where we are going

A Wealth o Focusing on building around core banking product –also offer channels, collections and payments software

o Provide core banking systems in unique disruptive business model suite of software products for financial institutions

o Significant upside available from new sales given fixed cost base

B Banking

C Open to further M&A

Agenda: Rubik Financial Investor Presentation Nov-13F

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Banking Segment overview: Becoming more solid- with potential upside

Slide 29

1. Core Banking• Exclusive license to provide Temenos T24 core banking software; complete

‘pay as you go’ core banking solution with internationally admired functionality

• Mortgage bureau system managing multi-client loan books including ex-Rams

2. Channels• Internet, mobile, phone and cards banking software used in 3rd party core

systems or integrated into our core banking offering

3. Collections & Payments• CWX collections software enabling financial institutions and other large

companies to improve their cash flow and productivity by improving collections

• SPX payments software replaces and automates banks payment processingo Customers across Asia; difficult and hotly contested markets

Banking with strong operating leverage – above breakeven• Less prospective for solid EBITDA growth than Wealth• However, high barriers to exit and strong operating leverage- above breakeven• Investments in sales cycles, including some unconventional targeting

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Revenue OperatingCosts

EBITDA

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FY13 Financial Performance What we do

Significant upside plausible but uncertain

Operating Costs(75%+

fixed dev’tlabour costs)

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Banking Segment: Portfolio Overview

Slide 30

Core Banking SoftwareCollections & Payments

SoftwareChannels Software

• Bank in a box: Complete real time core banking capability on a pay-as-you-go basis

• Separately have acquired mortgage administration platform for large bureau customer with well known loan book brands (e.g. ex Rams)

Product

Customer value

proposition

• Bank in a box:o Reduced costs,o Rapid product development

and launcho Ability to operate business

anywhere, anytime on any device

o Easy to scale system if demand increases

o Rubik operates & secures IT infrastructure, software and systems

• CWX Collections: collection software for corporate and mercantile credit collections

• SPX Payments: automates payment processing between mutuals and big banks

• CWX Collections:o Workflow and automatic billing

and overdue escalation protocols

o Intuitive, flexible software providing real time view of debt situation

• SPX Payments:o Fast, easy and secure payments

vs manual alternativeo Cost savings through payment

automation

• Internet, Phone & Mobile & IVR Banking: allows for banking systems to be offered through different channels

• Cards Management: facilitates issuing and management of cards through core banking systems

• Internet, Phone & Mobile & IVR Banking: o 24/7 responsive access,

anywhere, anytimeo Industry-leading scalability with

minimal hosting requirementso Rapid implementation time and

flexible configurationo Seamless cross channel

integration

• Cards Management:o Ability to manage cards through

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Banking Segment: Our main Core Banking offering- Bank in a Box

Slide 31

World class product• Rubik has exclusive license to provide Temenos T24

hosted core banking software in Australiao Temenos T24 is the world’s number one core banking

system- #1 by installations globally, by installations in

each region, and by new sales

• Rubik has configured T24 for the Australian regulatory and product environment

o Rubik’s channels software comes pre-plugged in

Unique value proposition• Hosted, pay as you go core banking system as SaaS-

customers only need a web connection- Rubik provides the data storage and processing

o Disruptive low-cost offering enabled through hosting model

Strong customer interest but inertia• Significant opportunity from the ~100 target

customers, but significant challenge in initiating sales given customer switching barriers

o Two successful integrations, with significant experience effects, but still significant integration/data migration activity for each sale to current ADI

• Catalyst for industry adoption could come via new entrants, which reduces switching barriers

Bank in a Box Product- Hosted Core banking SaaS Bank in a Box

Hosted Software as a Service (SaaS)- Secure dual site setup with DRP & BCP in place

-Managed hardware, network, software and servicesAll provided as an OPEX service with long stable contracts

Bank In A Box

Hosted Software as a Service (SaaS)- Secure dual site setup with DRP & BCP in place

-Managed hardware, network, software and servicesAll provided as an OPEX service with long stable contracts

Customer Channels

SocialMedia

-Facebook etcPhone Banking

Cards

Internet Banking

- Online Banking- Factor 2

authentication- Online Apps

Mobile Banking

- SMS Banking- Mobile Apps-Coupons and

offers

Payments

Printing House

Corporate GL

AML

ATO

Exte

rnal

Bat

ch In

terf

ace

Cap

abili

ty

Cards Switch

Collections

ATM Switch

Credit Checking

Exte

rnal

Rea

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Fraud Monitoring

TEMENOS CORE

Front Office

- CRM- Marketing

- Campaigns-Business

Intelligence- Big Data

Middle Office

- Functionality to meet regulatory,

accounting, compliance, reporting &

management needs

Back Office

- Processing of customer requests

- Imaging and document

management

Retail, Mortgages, Commercial lending, Treasury are typical banking applications provided by BIAB

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Banking Segment: Portfolio dynamics

Sub-segment How we entered the market Addressable Market Considerations

Core banking

• Bought Temenos T24 Core Banking system licence in September 2008

• Acquired RBX core banking software as part of Admerexacquisition in December 2008

• First installation of T24 software at MCU in February 2010

Small Australian ADIs:~$150m pa for mutualsmore with new entrants

• Significant challenges in traction with new sales

• Need to overcome switching costs for Credit Unions in changing system-despite superior product and cost offering

Channels

• Acquired Swift Call in January 2008, a provider of Internet, Phone and IVR banking services

• Acquired El-Ten Technology in March 2008, attaining internet banking, core system/BPAY interfaces and credit card origination capabilities

As above plus other Australian financial

institution (not big 4 banks)

~$100m pa

• Strong product in phone but market shifting to mobile

• Difficulties in gaining commercial acceptance to plug into core banking competitor systems

Collections and Payments

• Acquired Admerex’s CWX collections software and SPX payment engine software in December 2008

Collections- International Corporations with large

scale billing requirements (e.g. utilities)

Plus debt factoring firms>$1bn

• Different customer base to Core banking and Channels

• Significant challenge in co-ordinating sales and service over global customer footprint

Slide 32

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Banking portfolio strategy

Slide 33

Rubik positioned to benefit from smaller ADIs upgrading technology

Significant upside available should Rubik win more contracts

• RFL is positioned to be a major beneficiary of technology upgrades by smaller ADIs. o Many of the smaller financial institutions, primarily building societies and credit unions, targeted by Rubik’s banking

product are currently evaluating options for new core banking systems.

• RFL’s bank-in-a-box infrastructure is in place and has a strong value proposition; effort has been shifting onto sales to bring the bank-in-a-box product to market.

o Strong experience curve in migrations across different systems- integration efficiency to riseo Sales to new bank-in-a-box customers have not been included in management’s guidance and represent earnings upside

• There are hundreds of current potential customers in Australia, 90 potential institutions who have 4.5m customers (excluding the big 4) creating a $150mn addressable market.

o Each new contract Rubik can secure creates reference sites for new customers, building a recurring revenue base and increasing the value of the investment.

• 2 new contracts announced in FY12 to add to the existing client, with 2 more clients in the pipeline for FY2014o We are now rejecting smaller clients that are uneconomical, along with uneconomical and unnecessary customisation

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Banking growth initiatives

Slide 34

Sub-Segment InitiativesEBITDA growth

Reasons for confidence:

Core banking

• Enhanced value proposition-lead on hosted, pay as you go systems

• Enhanced proactive sales effort to identify and stimulate new entrants

0-?

• High upside potential given new sales drop through to bottom line once implementation complete

• Strong product and unique proposition-but challenging switching costs and customer inertia- catalyst may come through our unmatched offering for new ADIs

• Uncertain capability to drive significant organic growth

Channels• Careful product investments-

assess partnership opportunities

• Uncertain potential to drive significant organic growth• However, retention has been strong, so improvements

should hit the bottom line

Collections and Payments

• Review options for enabling focus across geographies

• Review credit analysis module (buy/partner/likely not build)

• Uncertain potential to drive significant organic growth

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Slide 35

1 Where we have been

2 Where we are now

3 Where we are going

A Wealth

• Open to another acquisition, but only for right fit

• Proven capability and history of earnings accretive acquisitions

• Patient scanning, deal making and transition management critical

B Banking

C Open to further M&A

Agenda: Rubik Financial Investor Presentation Nov-13F

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Previous inorganic opportunity performance

Slide 36

Previous deal value drivers

Careful target identification and patient deal making• Great care taken with target identification; sat on large cash stockpile

prior to COIN acquisition• Patient deal making; COIN acquisition took over a year to eventuate• Share some upside with tech co founder/owners to achieve

engagement and alignment, and enable sale at reasonable valuation

Generate value through synergies and customer relationships• Generate value through back office support synergies and aligning

interests e.g. retaining and incentivising founders• Acquisitions add value through key customer relationships e.g. Visor

providing key IFA relationships

Careful transition of acquisitions into existing business• Rubik model is not to fully integrate operations and sales of acquired

businesses- enables easier transition, agile and entrepreneurial business units and drives exit optionality for easy carve-outs

• Careful transition of customerso e.g. focus on retaining COIN customers instead of seeking out new sales o COIN customers welcomed change of management and customer

engagement strategy

Investment as multiple of

currentunderlying EBITDA *

Investment as multiple of deal-time

underlying EBITDA

VISOR 0.21x 0.27x

COIN 3.52x 4.80x

Provisio 5.95x 4.12x

Admerex ~0.35x 1.33x

Swiftcall/ElTen

~2.50x 6.54x

*Based on forecast EBITDA FY14 (excluding corporate costs)

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Significant organic growth potential in other segments (more certain in Wealth, more risky from Banking), and no desire to put the core business at risk

Continue to scan market patiently for profitable niches in Australian FS-related IT

• Further inorganic opportunity may exist- but contingent on right target and right deal structure- high burden of proof on ‘fit’

• A few potential opportunities at this stage, but nothing clear

• Remain as highly selective acquirers- burden of proof on ‘why us’

Scope for further inorganic opportunities

Slide 37

Composed deal-making, careful transition and integration will be our focus should a suitable target approach usF

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Slide 38

1 Where we have been

2 Where we are now

3 Where we are going

• Corporate ambition for ASX300 membership in 3 years

• Flight path of significant growth –average ~30%pa operating segment EBITDA targets to FY16

• Solid investor proposition- low downside given strong recurring revenue, plus solid upside from wealth and further speculative upside from banking and wealth

Agenda: Rubik Financial Investor Presentation Nov-13F

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Our Corporate Ambition- 40%pa TSR to gain entry into the ASX300 in 3 years

Slide 39

Required market cap for ASX300 entry

ASX 300 Index

$0m

$50m

$100m

$150m

$200m

$250m

0

1000

2000

3000

4000

5000

6000

7000

2009 2010 2011 2012 2013 2014 2015 2016

~$180m market cap needed to enter ASX300 today

Note: TSR= Total Shareholder Return. Uses baseline share price of $0.27c as at Oct-13, and assumes market cap proportional to TSR growth for simplicity- i.e. assumes no dividends paidSource: Bloomberg

We want to get into ASX300 in 3 years: need ~$180m market cap

Target ambitious but plausible at our market cap

Implies 3 yr ~40%pa TSR, arriving at RFL share price of 69c

All Ords company results of >40% pa 3yr TSR

Market Cap range

% of periods

$0-50m 17%

$50-100m 18%

$100-200m 12%

$200-500 8%

>$500m 5%

Rubik’s market

cap range

$0.00

$0.10

$0.20

$0.30

$0.40

$0.50

$0.60

$0.70

$0.80

$0.90

$1.00

2012 2013 2014 2015 2016

RFL Share Price3 yr target

Target market cap of $180m implied a share price of 69c and ~40% TSR over 3 years

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3 year flight path- growth targets are challenging but achievable

Slide 40

• Assuming no expansion in EBITDA:EV multiple, the target market cap growth must all be driven by ~40%pa EBITDA increases

o Therefore, Rubik’s FY16 corporate EBITDA target is ~$16.5M

o Current EV:EBITDA multiple of 8.3x (forward looking) should be defendable given right growth trajectory (potential for further uplift)

• However, the required operating segment growth rate is lower, at ~ 30%pa;

o Assuming corporate cost increases are contained at ~10%pa

o Requires only ~20%pa revenue growth if we conservatively assume half of cost base is fixed$5.8m

$9.5m

$5.8m

$5.0m

$3.7m

$0m

$5m

$10m

$15m

$20m

$25m

$30m

FY13UnderlyingreportedEBITDA

Growthrequired inreportedEBITDA

Required FY16UnderlyingreportedEBITDA

FY13 OperatingSegmentEBITDA

Growthrequired inOperatingSegmentEBITDA

Required FY16OperatingSegmentEBITDA

i.e. before corporate cost netted off

40%pa growth required to hit FY16 EBITDA target and enter ASX300…

Assuming same EV:EBITDA multiple, ~40%pa EBITDA needed…

…translating to ~30% pa target for Operating Segment EBITDA

~40%pa

…however, if corporate costs are restrained, a more manageable

~31%pa required

~30%pa

Corporate Costs

Underlying reported

EBITDA

$9.5m

>$21m

Corporate Costs

Underlying reported EBITDA

Note: Time period used for calculation is 3 yearsSource: RFL Annual report 2013

EBITDA

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Slide 41

Operating segment targets- $8m increase in Wealth EBITDA, $4m from rest of business

Source: RFL Annual report 2013, Iress Latest is latest available annual report- CY12 report i.e. 12 months ended December -12- before the significant UK acquisition.Note: * Iress ANZ Wealth software segment result was 43% margin, highly comparable to the ~40% in Rubik’s flight path

$6.6m

$3.0m

~$8m

~$4m

$0m

$5m

$10m

$15m

$20m

$25m

~$7m

~$14m

Operating segment EBITDA

Non-Wealth

Wealth

$9.5m

>$21 m

Further upside possible beyond

target

Baseline:FY13 Underlying

Operating Segment EBITDA

Plausible Wealth uplift to FY16

Uplift required from banking and other segments

3 yr Horizon:Required FY16

Operating Segment EBITDA

Non-Wealth

Wealth

RFL FY13

RFL FY16

Iress CY12

Revenue $23m ~$40m $207m

Underlying EBITDA

$5.8m ~$16m $75m

Underlying EBITDA margin

~25% ~40% ~36%*

By comparison, this level of growth would result in a much smaller

revenue than peer Iress’ CY12 scale, but at similar margins

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Why invest summary

Slide 42

Established position in attractive markets

• Exposure to large, solid underlying Australian FINTECH market with strong long-term growth drivers

• Established position as one of the 2 leaders in the wealth adviser software market; strong share amongst Big 5 institutions

Strong annuity income streams

Solid growth prospects in

core operations

Significant further upside

available

• Majority of Wealth and Banking revenue is recurring- defendable given strong relationships and retention dynamics

• Not complacent about our position-making necessary product and service investments to defend annuity income

• Well positioned for anticipated wealth industry shift to scaled advice- market leading tools and incumbency at key institutions

• Revenue growth over relatively fixed cost base in Wealth would translate to significant EBITDA impact

• Significant Wealth upside available from mortgage market and SMSF opportunities

• Considerable further upside in Banking given new core banking sales over relatively fixed cost base

• Further acquisitions - only significantly EBITDA per share accretive deals considered

Lower risk than many ‘tech’ companies… …and positioned for substantial growth

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Slide 43

Glossary

Term Meaning in this presentation

ADI Authorised Deposit-taking Institution: highly regulated customer-facing banking institution

Advice Wealth management advice- either comprehensive or scaled/scoped, and provided via advisors or direct

Advisers Appropriately qualified person giving financial planning advice

Bank in a Box Rubik's hosted ‘pay as you go' core banking system, provided with our channel software plugged in

Core Banking System Vital central IT data system for ADIs, managing storing and reporting all products and transactions

Corporate Services Cost Finance & administration, IT support costs supporting both segments

Direct advice Wealth management advice provided via internet

Fintech Information Technology for Financial Services industry

FoFA Future of Financial Advice reforms- part of series of reforms to increase transparency and customer value in wealth management

FS Financial Services

Hosting Third party management off site of computing environments

New Entrant ADIs Any new ADI- possible Australian equivalent (COLES?) to the UK Supermarket’s entering FS in retail banking of E.g. Tesco /Sainsburys

Operating Segment Individual business divisions with separate managing director’s and p&l responsibilities

Planners Term Interchangeable with advisers – see above

Platforms Base systems to provide CORE activities

SaaS Software as a service- typically hosted externally and paid for on a consumption basis

Scaled Advice /Scoped AdviceScaled advice is personal advice that is limited in scope, either by being in response to a limited range of issues or by addressing a specific area of the investor's needs

Temenos and T24 Number 1 global CORE banking software provider; T24 is their CORE banking product

TSR Total Shareholder Return- measure of shareholder value creation from share price appreciation and dividends (assumed as reinvested)

Underlying After adjusting for abnormal items and discontinued operations

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