Slide 1: 1H 2018 Results Presentation
netwealth 1H 2018 Results Presentation
Slide 2: Important notice and disclaimer
Important notice and disclaimer General Information only Information provided is general information presented in a summary format, 353127 February 2018, and is therefore not necessary complete fis presentation is for informational purposes only and is not ta be relied upon as advice to investors or
Slide 3: Our purpose is to enable people to see wealth differently
>» Ourpurposeis = © _ To enable people to _ see wealth differently _ and discover a brighter future FOr p
Slide 4: Today's presenters and agenda
Today's presenters and agenda aoa e acne Director 1. 1H 2018 Business and financial highlights 2.1H 2018 Financial performance 3. Operating update Matt Heine 4. Q&A Joint Managing Director . a . . . . 5. Appendix additional financial information Grant Boyle Chief Financial Officer Dine 4 | netwealth
Slide 5: 1H 2018 Business and financial highlights
1H 2018 2 Business - and financial (fp) highlights For personal u
Slide 6: Continued strong growth in 1H 2018
Continued strong growth in 1H 2018 2 & G $15.4B FUA $2.4B FUM 2,190 al al $1.8B $0.7B #1 platform’ Ith 11 2018-6 months to December 2017. § | netwealth cy2017 ~12 months to December 2017
Slide 7: 1H 2018 Pro forma financial highlights
1H 2018 Pro forma financial highlights Growing profits and current NPAT forecast is 3% to 5% ahead of prospectus’ all “al all $40.5M $20.5M® 50.5% Revenue EBITDA EBITDA MARGIN % “all all $141M © $18.9M° 7.2 cents” NPAT OPERATING CASH FLOW PRE-TAX EPS 1)(2) (1) Pro forma EBITDA , NPAT, Operating Cash
Slide 8: 1H 2018 Financial performance
1H 2018 Financial performance For personal use o 8 | netwealth
Slide 9: For personal use only
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Slide 10: Margin analysis
Margin analysis Strong cost management, demonstrated operating leverage & continued investment in the platform EBITDA margin growth 50.5% 40.5M 29.0M 20.0M 15.9M 1H 2017 Actual 1H 2018 Actual mmm Totallncome mam Total Expenses —> EBITDA Margin 10 | netwealth —(1)_—‘1H. 2018 Annualised as per number
Slide 11: For personal use only
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Slide 12: Operating update
Operating - update For personal use o 12 ‘| netwealth
Slide 13: For personal use only
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Slide 14: Significant market opportunity for growth
Significant market opportunity for growth Platform providers by FUA market share Platform provider net funds flows % market share (September 2017) % market share (12 months to September 2017) ° #10 221% 21.4% #3 18.7% 17.9% 18.8% |» % of net flows >10x market share 15.0% 14.6% 10.9% 9.6% 9.8% 9.1% 5
Slide 15: For personal use only
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Slide 16: Q&A
Q&A Ajuo asn peuosied 104 16 | netwealth
Slide 17: Additional information
Additional 2 information For personal use o 17 ‘| netwealth
Slide 18: Appendix 1 - Results reconciliation
Appendix 1- Results reconciliation 18 | netwealth tion of pro forma adjustments to the statutory income statement Half Year Ended 31December 2017 31 December 2016 $000s $000s NPAT proforma 14,064 8,826 Adjust for: IPO transaction costs (12,075) - Income tax effect of IPO Transaction 3,623 Loss from
Slide 19: Appendix 2 - Cash flow reconciliation
Appendix 2- Cash flow reconciliation 19 | netwealth Reconciliation of pro forma adjustments to the consolidated statement of cash flow Half Year Ended 31 December 2017 31 December 2016 $000s $000s Net cash flow from operating activity 2,603 9,436 Income tax paid 4,739 4,383 IPO transaction costs 12,
Slide 20: Appendix - Balance sheet
Appendix 3 - Balance sheet Debt free with $31 million in cash Regulatory capital required: ° ASIC NTA $10.0m * Operating Risk Financial Requirement $16.6m 20 | netwealth Consolidated statement of financial position as at 31 December 2017 Consolidated Group Half Year Ended ‘31December 2017 31December