Slide 1: Results Presentation FY2022
= FY Results Presentation 2 O 24 August 2022
Slide 2: Important notice and disclaimer
Important notice and disclaimer General Information only Information provided is general information presented in a summary format as at 24 August 2022, and is therefore not necessarily complete. This presentation is for informational purposes only ands not to be relied upon as advice to investors o
Slide 3: Our purpose
Our purpose is To enable people to ' see wealth differently XN VA and discover a ~a- brighter future 24 August 2022 Tw
Slide 4: Today's presenters and agenda
Today's presenters and agenda Meet: Michael Heine Matt Heine Joint Managing Director Joint Managing Director Grant Boyle Chief Financial Officer 4 Results Presentation FY2022 24 August 2022 Discover: 1. FY2022 business highlights 2. Strategy and Product update
Slide 5: Business FY2022 highlights
FY2022 Business h i g h | i g h t 5 Results Presentation FY2022 24 August 2022
Slide 6: Business highlights FY2022
Business highlights FY2022 G@) SS57BFUA (@) 813.08 (@) (a) $1318 FUM | (a) 2.68. . (a) $11.2B MA 92.90 (6) (@) #1 Platform*. (8) 115,642 Accounts ~ 12 month growth of 18,323 (+18.8%)
Slide 7: Netwealth as your #1 specialist investment platform partner
Netwealth as your #1 specialist investment platform partner Award winning platform 2027 Adviser Technology Needs regorL Qyerall Satisfaction: Platform WINNER item Newweaty 2021 Platfor Competitive Analysis and Benchmarking Report Best Platform Overall Ratings rtm WINNER [gy — 2022 Advicer Technaloay
Slide 8: Business growth drives market share gains
Business growth drives market share gains Growth in FUA, FUM and Accounts No of Accounts 115,642 Billions 120,000 " 80.0 97,319 31 eo 50.0 40.0 557 ne 20.0 10.0 0 Jun-22 100,000 81,804 80,000 60,000 54,628 17 73 3.9 47.1 " 315 233 12 0 40,000 20,000 Jun-17 Jun-18 Jun-19 Jun-20 Jun-21 mee UA mm FUM e
Slide 9: Compounding organic FUA net inflows growth
Compounding organic FUA net inflows growth Both existing and new Financial Intermediaries contribute to yearly FUA net inflows Existing financial intermediaries Yearly FUA Net inflows analysis Continued migration of accounts from our existing Financial Intermediaries accounted for approximately 85%
Slide 10: Strategy and product update
Strategy and product update
Slide 11: Supporting wealth professionals and investors to see wealth differently
Supporting wealth professionals and investors to see wealth differently 1 A focus on technology and platform innovation We have a home grown market leading investment platform that connects clients and advisers. It is agile and flexible to provide choice and remove barriers. 200+ IT staff dedicated
Slide 12: A large and growing addressable market
A large and growing addressable market Objective is to continue to increase our penetration of financial intermediaries by increasing their efficiency and productivity and continuing to add new features for the end customer The proportion of advisers that have their own AFSL or are majority independ
Slide 13: Two Advisable Australian segments represent a significant advice opportunity
Two Advisable Australian segments represent a significant advice opportunity and are a key focus for Netwealth These two key segments total ~26% of the population 18+ but account for ~60% of total household wealth The Established Affluent opportunity The Emerging Affluent opportunity 2./5m 1.94m Aus
Slide 14: Netwealth's whole of wealth platform
SMsr Netwealth's whole of wealth platform Introducing Wealth Accelerator MAPs Custodial (Multi-asset portfolio service) ustodial + Non-custodial Managed & Term deposits unregistered (IM) wholesale funds r Annuities Private label and retail Clientdata | managec account models: Domestic & internationa
Slide 15: FY2023 Strategic Pillars
FY2023 Strategic Pillars Upgrade functionality for MDA, HNW and mid-market clients To enhance our award-winning feature-set to better support MDA, HNW advisers/licensees & mid-market institutional investors. Provide market leading client portal To expand our client portal for advisers to interact on
Slide 16: Advice Efficiency focused on reducing cost of advice
Advice Efficiency focused on reducing cost of advice Reporting & Reviews + Report customisation + Tasks & activities oe . + Bulk reporting enhancements + Managed Accounts * Benchmarks enhancements & reporting . + Report & review builder + Auto ROA enhancements . o Scale and stability MAPs A + Back o
Slide 17: Wealth Accelerator
Wealth Accelerator Multi-asset portfolio service (MAPs) For investors looking for a centralised account and reporting solution Wealth Accelerator accounts can access an outsourced administration solution for assets which cannot be held in custody. The service offering + Submit investment instruction
Slide 18: Client portal mobile app
Client portal mobile app White labelling Mobile ‘whole of wealth’ Daily business & finance news Activities on mobile Mobile app plus browser-based Bank and property feeds plus A daily feed of our morning Clients can view tasks and desktop configured to the brand. integration with Xeppo data. busines
Slide 19: Activities tasks, alerts and messages
Activities tasks, alerts and messages Prototype only New Inbox-style feature-rich area of the ee platform, to enhance usability and team efficiencies, features include: a oO + Opransamet se Suireusatige: GQ Rent © Sune Activities @ Benne 9 Rae * corporate actions, wholesale certificate expiries, TD
Slide 20: Managed Account industry outperformance
Managed Account industry outperformance Netwealth is a leading player in the Managed Account industry Netwealth Managed Account market share increased to 8.9% at Dec 21 What benefits have you received from Managed Accounts, of those as industry Managed Account FUM continued to increase that use them
Slide 21: Further investment in Xeppo and data analytics
Further investment in Xeppo and data analytics Connect your financial services and accounting data with Xeppo and Netwealth to unlock its full potential Xeppo and Netwealth unlock the power of data with client information in a single view interface, automates tasks that drive client relationships an
Slide 22: Reporting and analytics
Reporting and analytics NEW: Practice Insights Aggregate data across multiple sources Using Practice Insights and Xeppo to consolidate and clean data across disparate data sets (e.g. Netwealth, Commpay or Xplan) for analysis and insights about clients. Save valuable time using pre-configured dashboa
Slide 23: ee OB) age
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Slide 24: Corporate sustainability
Corporate sustainability Looking forward + Protect and enhance our core business Continue to invest in system scalability and security Provision of more information and functionality to advisers + Be ethical, genuine, and transparent in our dealings Incorporate corporate sustainability targets into
Slide 25: Our people strategy
Our people strategy Employee's experience that centres around our people, our culture, our capability and our community Talent development and retention + Recognise, reward, promote and celebrate our talented people internally and externally * Create stronger career pathways to promote succession an
Slide 26: Financial performance
FY2022 Financial performance
Slide 27: FY2022 financial results
FY2022 financial results Platform Revenue ($M) Fy2022-FY2021 % Actual Actual Change Platform Revenue 1695 142.0 275 19.4% Rice) 169.5 Financials Change Other Income 38 29 09 30.0% Fy2021 Total Income 173.3 1449 28.4 19.6% FY2020 Employee Benefits Expense (63.8) (50,1) 13.7 27A% manne 40) Other Costs
Slide 28: FY2022 key performance metrics
FY2022 key performance metrics a Fy2022 FY2021 $ % Platform Statistics Actual Actual_Change Change FUA (EOP) 55652 471388514 18.1% FUA net inflows 12989 98Il3,178.—-32.4% Funds Under sainisteation Market Movement (4475) 5.825 - - Fee Paying FUA % (EOP) 65.4% 65.6% - - Platform Revenue per average FU
Slide 29: Key statistics analysis
Key statistics analysis Revenue per account maintained despite interest rate headwinds in FY2022 + Average Account size increased to $507,000 for FY2022 — as average Account size increases, revenue streams are diversified and ancillary revenues increase + Platform Revenue per Account decreased to $1
Slide 30: Platform revenue composition
Platform revenue composition FY2022 ancillary fee revenue diversification was impacted by lower cash fee income, all other fee areas increased for the year Platform revenue split FY2019 to FY2022 200 180 160 140 120 100 80 Platform Revenue $M's FY2019 w Administration fees Source: Netwealth, Going f
Slide 31: Significant re-investment to support revenue growth and innovation
Significant re-investment to support revenue growth and innovation Strategic investments across IT infrastructure, people and software Total underlying operating expenses* Annualised 30 Jun 22 run rate +$20.0M $96.6M 30.7% $85.1M FY2020 FY2021 FY2022 Jun 22 full year run rate mEmployee benefits expe
Slide 32: Investing in our people
Investing in our people Increase in Technology headcount of 53 roles, 47% of FY2022 new hires Headcount by function 30 June 2022 m Technology Increase of 63 for FY2021 Increase of 113 for FY2022 mInvestor services u Investment operations & custody m Distribution, Prod & Mark m Finance, P&C & office
Slide 33: Summary Strong financial and market position
Summary Strong financial and market position Strong balance sheet Exceptional correlation B 6]6 between EBITDA and Cash 3 + low capital expenditure Flow * no debt + significant cash reserves Ongoing strategic Aleader in mass affluent, investment across IT high net-worth and private [s] infrastructur
Slide 34: FY2023 succession and outlook
FY2023 Succession and 34 Results Presentation FY2022 24 August 2022
Slide 35: Managing succession
Managing succession + Inaccordance with the company’s succession plan, Michael has advised that he intends to step back from the day to day management of Netwealth. + Effective 1 October 2022 Matt Heine will be appointed sole Managing Director and Michael will continue to act as an Executive Directo
Slide 36: Outlook
Outlook + Net Inflows growth continued to accelerate in FY2022 and we expect to benefit from ongoing industry consolidation and change. + Expect benefits from growth in the affluent, high net-worth and private wealth groups as the platform functionality supports and enables the unique and differenti
Slide 37: Questions
FY2022 Questions 24 August 2022
Slide 38: Thank you
| Thank you netwealth
Slide 39: Appendix and additional information
FY2022 Appendix and additional information
Slide 40: Investing in our people and technology
Investing in our people and technology Strategic investments across IT infrastructure, people and software Analysis of half yearly headcount increase Increase of 55 for 1H2022 Increase of 31 for 2H2021 7 5 4 Increase of 32 for 1H2021 5 3 - Source: Netwealth, 40 Results Presentation FY2022 24 August
Slide 41: Underlying profit for FY2022
Underlying profit for FY2022 Set out in the table below is the reconciliation from EBITDA to underlying EBITDA and NPAT for FY2022 to reflect an adjustment on non recurring costs Consolidated Group for Period Ended 30 Jun 2022 30 Jun 2021 Variance Variance $000 $000 so00 % EBITDA 84,591 79,349 5242
Slide 42: Underlying profit excluding non-cash share based payments for FY2022
Underlying profit excluding non-cash share based payments for FY2022 Consolidated Group for Period Ended 30 Jun 2022 30 Jun 2021 Variance Variance $000 $000 $000 % Underlying EBITDA 85,092 79,349 5,743 7.2% Add back: non-cash share-based payment 3,053 402 2,651 659.5% Underlying EBITDA excluding non
Slide 43: Underlying Cash Flow
Underlying Cash Flow The table below sets out the summary of the underlying consolidated statement of cash flows for FY2022 and FY2021 Consolidated Group for Period Ended 30 Jun 2022 30 Jun 2021 Variance Variance $000 $000 $000 % Receipts from customers 186,387 151211 35,176 23.3% Other operating ca
Slide 44: Investing so we can grow rapidly
Investing so we can grow rapidly Netwealth continues to invest with focus on medium to long term ®) Maintain market leading customer service & Investment in software capital technology (FY2021 + FY2022) Implemented a new workflow management system in November 2021 to create efficiency in processing