Business SummaryBell Financial Group Limited (BFG) is an Australian based provider ofstockbroking, investment and financial advisory services to private,institutional and corporate investors. BFG has 12 offices nationally, an officein London and one distribution network in Australia. The Company has threeoperating structures: Bell Potter Securities (Bell Potter Securities Ltd); BellPotter Capital (Bell Potter Capital Ltd); and Bell Direct (Third Party PlatformPty Ltd).

Bell Potter Securities (BPS): BPS is a private client stockbroking andfinancial advisory firm, offering a number of services including: Stockbroking;Portfolio Investing; Retirement Planning; and Corporate Advice. BPS is a FullMember of the Sydney Futures Exchange, and a Clearing Member of theSydney Futures Exchange Clearing House, and it incorporates the twobusinesses, being Bell Commodities and Bell Foreign Exchange. BellCommodities is a futures broker, providing Australian and internationalfutures and option execution services, covering metals, energy products, softcommodities, grains and oil seeds, meats and livestock, currencies, stockindices and interest rates. Bell Foreign Exchange is a provider of customisedforeign exchange services to wholesale clients, including spot and forwardforeign exchange, foreign currency options, tailored forwards, 24-hour orderwatch, research, foreign currency accounts and fee-free internationalremittances.

Bell Potter Capital (BPC): BPC provides an integrated accountmanagement service for clients by issuing and managing the Group'sin-house margin lending and cash products.

Bell Direct: Bell Direct: BFG has a 45% holding in Bell Direct. Bell Direct isan online broker providing online share trading for both the retail andwholesale. Investors can trade ASX listed equities, warrants and interest ratesecurities either online or through the call centre.

GICS - Div. Financials

Bell Financial Group Limited

ASX Code: BFG Price: $0.450

Important Disclaimer - This may affect your legal rights: Because this document has been prepared without consideration of any specific client's financial situation, particular needs and investmentobjectives, a Bell Potter Securities Limited investment adviser (or the financial services licensee, or the proper authority of such licensee, who has provided you with this report by arrangement withBell Potter Securities Limited) should be consulted before any investment decision is made. While this document is based on the information from sources which are considered reliable, Bell PotterSecurities Limited, its directors, employees and consultants do not represent, warrant or guarantee, expressly or impliedly, that the information contained in this document is complete or accurate.Nor does Bell Potter Securities Limited accept any responsibility to inform you of any matter that subsequently comes to its notice, which may affect any of the information contained in this document.This document is a private communication to clients and is not intended for public circulation or for the use of any third party, without the prior approval of Bell Potter Securities Limited. This is generalinvestment advice only and does not constitute advice to any person. **Bell Potter covers the following ASX Codes: AAX,ACL,AHE,ALZ,AMM,ANG,ANN,ANZ,API,APK,AQA,AQG,ASL,AUN,AWC,BDR,BEN,BHP,BKN,BOQ,BRC,BTT,BYL,CAA,CAH,CBA,CGF,CHN,CMG,CMJ,CND,COH,CQT,CSL,CTM,CVN,DJS,DLX,EHL,ELD,FFF,FGE,FMG,GBG,GCS,GNC,GRR,HIN,HZN,IDO,IFL,IIN,ILU,INQ,IRD,JBH,JMS,JPR,KAM,KCN,KRM,KZL,LCM,MGX,MIN,MLB,MLX,MND,MQG,MRM,MYR,NAB,NCM,NEC,NEN,NVT,NWH,NXS,OZL,PDN,PEA,PLA,PMV,PPC,PPT,PRG,PRY,PTM,QRX,RCR,RDF,RED,RHC,RIC,RIO,RMD,RMS,ROK,RRL,SBM,SDL,SDM,SHL, SHV,SKE,SLR,SLX,SPL,SUL,SUN,SWM,TFC,TLS,TRS,TRY,TWO,VMG,WBB,WBC,WDS,WEB,WEC,WPL,WSA,WTP.Disclosure of Interest: Bell Potter Securities Limited receives commission from dealing in securities and its authorised representatives, or introducers of business, may directly share in thiscommission. Bell Potter Securities and its associates may hold shares in the companies recommended.

Snapshot

DateMarket Cap.Shares on issue12 Month High12 Month Low

10 July 2012$117m259.6m$0.80$0.40

Investment FundamentalsFYE 30 Dec 2008A 2009A 2010A 2011A

Profit $m 16.1 27.3 21.6 7.6Profit (norm)* $m 14.4 27.3 21.6 7.6

EPS* ¢ 7.0 11.1 8.7 3.0EPS Growth % 78.7 59.2 -21.4 -65.8P/E* x 6.5 4.1 5.2 15.1P/E Relative % 1.0 0.7 0.9 2.0

DPS ¢ 5.0 8.0 6.5 3.0Yield % 11.1 17.8 14.4 6.7Franking % 100.0 100.0 100.0 100.0* Adjusted for unusual itemsSource: Aspect Huntley historical financials

Share Price Chart

Total Return on $10,000 Investment

Profit & Loss ($M)2007A 2008A 2009A 2010A 2011A

Investment Income 10 31 23 23 14Other Income 219 146 181 173 141Profit Before Tax 18 23 40 32 12Income Tax -8 -7 -13 -10 -4Outside Equity Int. -- -- -- -- --Profit after Tax 10 16 27 22 8Significant Items after Tax -- -2 -- -- --Reported Profit after Tax 10 14 27 22 8Preference Dividends -- -- -- -- --

Cash Flow ($M)2007A 2008A 2009A 2010A 2011A

Receipts from Customers 293 273 187 218 163Funds from Operations 527 465 332 347 340Net Operating Cashflow 54 90 40 86 -11Capex -1 -0 -0 -1 -2Acquisitions & Investments -2 -22 -7 -8 -2Sale of Invest. & Subsid. 7 0 14 5 8Net Investing Cashflow 5 -21 6 -17 -4Proceeds from Issues 28 -- -- -- --Dividends Paid -15 -7 -10 -21 -15Net Financing Cashflow 31 -140 -10 -68 -1Net Increase Cash 89 -71 37 1 -17Cash at Beginning 48 155 88 125 127Exchange Rate Adjust. -- -- -- -- --Cash at End 155 88 125 127 110

Ratios and Substantial Shareholders2007A 2008A 2009A 2010A 2011A

Profitability RatiosNTA/share % 0.32 0.26 0.25 0.19 0.21Net Gearing % 143.68 69.35 47.66 43.97 41.50Net Interest Cover x -1.73 -0.98 -4.22 -2.10 -0.13

Top 5 Substantial ShareholdersBell Group Holdings Pty Ltd (formerly Bell Commodities Ltd) 45.4%UBS AG, Australia Branch 16.7%

Balance Sheet ($M)2007A 2008A 2009A 2010A 2011A

Cash 155 88 125 127 110Receivables 375 266 81 65 52Investments 9 7 12 18 2Other Current Assets 1 2 194 176 139Current Assets 541 363 412 385 303Investments 5 8 9 10 11Property 53 83 106 129 121Other 8 9 6 5 5Non-Current Assets 66 100 121 144 137Total Assets 607 463 532 529 441Trade Creditors 119 104 100 93 72Provisions 23 19 56 49 8Other (inc Borrowings) 337 191 208 207 183Current Liabilities 479 314 364 349 263Borrowings 0 0 -- -- --Deferred Tax -- 0 0 2 0Other 1 2 2 3 2Non-current Liabilities 2 2 3 4 2Total Liabilities 481 317 367 353 266Net Assets 126 146 166 176 175Share Capital 134 148 148 158 164Reserves 8 14 33 34 26Retained Earnings -15 -15 -15 -15 -15Minorities -- -- -- -- --Total Shareholders Equity 126 146 166 176 175

Price vs. EPS Principals & DirectorsPrincipals

Company Secretary Mr Paul Vine

Directors

Mr Craig Evan Coleman(Non-Executive Director)Ms Brenda Mary Shanahan(Non-Executive Director)Mr Colin Morton Bell(Executive Chairman)Mr Graham Allan Cubbin(Non-Executive Director)Mr Alastair Provan(Managing Director)Mr Brian Arthur Wilson(Non-Executive Director)

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Bell Financial Group Limited

Bell Potter Securities Research

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