Slide 1: Results Presentation 1H2022
— FY Results Presentation 2 O 16 February 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 16 February 2022, and is therefore not necessarily complete. This presentation is for informational purposes only ands not to be relied upon as advice to investors
Slide 3: Our purpose
Our purpose is To enable people to see wealth differently and discover a brighter future 3. Results Presentation 1H2022
Slide 4: Today's presenters and agenda
Today's presenters and agenda Meet: 2 Michael Heine Matt Heine Joint Managing Director Joint Managing Director Grant Boyle Chief Financial Officer 4 Results Presentation 1H2022 16 February 2022 Discover: 1. 1H2022 business and financial highlights 2. 1H2022 financial performance
Slide 5: Business and financial highlights
1H2022 Business and financial highlights Results Presentation 1H2022 ‘16 February 2022
Slide 6: Financial highlights
Financial highlights FY2021 $84.7m $27.5m $43.8m $45.7m Underlying EBITDA excluding Operating net cashflow before non cash share based payments expense tax and interest Dividend 10 cps “Technology, peo ole & infrastructure investment 1. Operating net cashflow excludes non-recurring items for 1H2022
Slide 7: Business highlights 1H2022
Business highlights 1H2022 $56.7B FUA $7.6B (@) (a) $13.98 FUM 2878 $11 7B MA a) $158. sos () (@) #1 Platform Overall * * (@) 10 107103 Clients — 12 month growths of 18,914 (+21.4%) investment Trends December 2021 Competitive Analysis and Benchmarking Report 7 Results Presentation 1 12022 16 Februar
Slide 8: Our strategy is...
Our strategy is... Supporting wealth professional 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. 170+ I
Slide 9: #1 for Functionality and Service
#1 for Functionality and Service Award winning platform Ranked 1st by Investment Trends December 2021 Competitive Analysis and Benchmarking Report: — Best Overall Platform — Transaction tools — Reporting Rated 18t by Investment Trends May 2021 Adviser Technology Needs Report Netwealth for overall sa
Slide 10: Strategy to retain our leadership
Strategy to retain our leadership Mobile and client Reporting engagement Non-custodial + Report customisation + 3 party data integrations + Enhanced performance + Tasks & activities reports * Ongoing development + Administration + Reports * Ongoing development Adviser Efficiency o Data and analytics
Slide 11: Disruption = Opportunity
Disruption = Opportunity Platform providers by FUA market share Platform providers net funds flows % market share (Sep 20 and Sep 21) #039;Billions (12 months to Sep 21) Top 4 Institutions are losing market share and represent 68.4% of market #6 #1 Netwealth continues to lead the industry for FUA net i
Slide 12: Accelerating FUA and account number growth
Accelerating FUA and account number growth Growth in FUA, FUM and Accounts 120,000 100,000 80,000 60,000 40,000 20,000 9102-980 dioz-une Source: Netwealth 12 Results Presentation 112022 88,189 c = o = c i o § 5 8 3 8 3 8 &¢ 8 &€@ & s 8 = @ #@ 8 @ 8 8 me PUA mm FUM (oe Accounts, 16 February 2022 97,3
Slide 13: Financial performance
1H2022 Financial performance 13 Results Presentation 12022 ‘16 February 2022
Slide 14: 1H2022 financial results
1H2022 financial results 1H2022 commentary (comparisons 1H2021) 1H2022 1H2021 Financials ‘netual ‘actual Change — %Change Platform Revenue 82.9 nA nT 16.5% Other Income 19 12 0.6 51.6% Total Income 847 72.4 12.4 17.1% Employee Benefits Expense (31.0) (23.4) 76 32.4% Share Based Payments Expense (1.9
Slide 15: 1H2022 key performance metrics
1H2022 key performance metrics 1H2022 commentary (comparisons 1H2021) Platform Statistics ee Change % Change Funds Under Administration FUA (EOP) 56,654 38,799 17,856 46.0% Fee Paying FUA % (EOP) 63.5% 63.4% 0.2% 0.3% FUA net inflows 7,636 4468 3,168 70.9% Funds Under Management Managed Account 11,7
Slide 16: Key statistics analysis
Key statistics analysis Focused on profitable & sustainable revenue growth + Average Account size increased to $529,000 as at 31 Dec 2021 — as average Account size increases, revenue streams are diversified and ancillary revenues increase + Platform Revenue per Account increased to $1,609, an increa
Slide 17: Further diversification of Platform revenue
Further diversification of Platform revenue Platform revenue split 1H2021 & 1H2022 Administration fees Wrap Super Ancillary fees Pool cash interest retained Netcash International equities admin Managed model service Fund manager service Insurance admin 12021 1H2022 SMSF admin Annuities Source: Netwe
Slide 18: Step-up in investment to support growth and innovation
Step-up in investment to support growth and innovation Strategic investments across IT infrastructure, people and software Total underlying operating expenses (M) 1H2022 commentary (comparisons 1H2021) + Total Underlying Operating Expenses of $42.7 million ($31.9 million), an increase of $10.9 milli
Slide 19: Investing in our people and Technology
Investing in our people and Technology Across technology, operations and distribution to support continued stability, scalability and innovation Strategic increase in headcount, increase of 24 in Technology and 24 in Headcount by function 31 December 2021 Operations Increase of 32 to 1H2021 Increase
Slide 20: Strong financial and market position
Strong financial and market position Strong balance sheet + low capital expenditure * no debt + significant cash reserves Ongoing strategic investment across IT infrastructure, people and software 1LAs ranked by advisers in the Adviser Ratings 2020 Financial Advice Landscape Benchmarking Study 2Plan
Slide 21: Outlook
1H2022 Outlook 21 Results Presentation 1H2022
Slide 22: Outlook
Outlook + Growth has continued to accelerate in 1H2022 and we expect to benefit from ongoing industry consolidation and change. + We expect to benefit from growth in affluent, high net-worth and private wealth groups as the platform functionality supports and enables the unique and differentiated ne
Slide 23: Questions
1H2022 Questions 23. Results Presentation 1H2022 16 February 2022
Slide 24: Thank you
| Thank you netwealth
Slide 25: Appendix and additional information
1H2022 Appendix and additional information 25 Results Presentation 1H2022 16 February 2022
Slide 26: Underlying profit for 1H2022
Underlying profit for 1H2022 Set out in the table below is the reconciliation from EBITDA to underlying EBITDA and NPAT for 1H2022 to reflect an adjustment on non recurring costs Consolidated Group for Period Ended 31Dec 2021 31 Dec 2020 Variance Variance $000 $000 $000 % EBITDA 41,468 40514 954 24%
Slide 27: Underlying profit excluding non-cash share based payments for 1H2022
Underlying profit excluding non-cash share based payments for 1H2022 Set out in the table below is the underlying EBITDA adjustment to reflect the add back of non-cash share-based payments Consolidated Group for Period Ended 31 Dec 2021 31 Dec 2020 Variance Variance $000 $000 $000 % Underlying EBITD
Slide 28: Underlying Cash Flow
Underlying Cash Flow The table below sets out the summary of the underlying consolidated statement of cash flows for 1H2022 and 1H2021 Consolidated Group for Period Ended 31 Dec 2021 31 Dec 2020 Variance Variance $000 $000 $000 % Receipts from customers 91,172 75,270 15,902 21.1% Other operating cas