Netwealth Group Ltd. · ASX:NWL
Netwealth — Shareholder Meeting (November 2018)
33 slides from Netwealth's shareholder meeting presentation, Nov 14, 2018
Slide 1: Netwealth FY2018 Annual General Meeting
Netwealth E FY2018 Annual 4 General Meeting | Q Finda client — t=) Jane Flowers, Total Balance $437,789.45 wen ByAsset Class ~ T expandall Cash account $15,180.32 347% ‘Australian Equities 735% $119,739.06 $79893.80- National Australia Bank L... NAB 004% Price Value $29.83, $105,240.24 $76,448.91 =
Slide 2: 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 3: Important notice and disclaimer
Important notice and disclaimer General Information only Information provided is general information presented in a summary format as at 14 November 2018, and is therefore not necessarily complete. This presentation is for informational purposes only and is not to be telied upon as advice to investo
Slide 4: For personal use only
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Slide 5: For personal use only
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Slide 6: Agenda
Agenda Jane Tongs Chairman 1. Chairman's address 2. Joint Managing Directors’ address Michael Heine 3. Formal business Joint Managing Director Matt Heine Joint Managing Director 6 | netwealth = FY2018 Annual General Meeting [ nw
Slide 7: Chairman's address
Chairman's address = Jane Tongs For personal use o 7 ‘| netwealth = FY2018 Annual General Meeting
Slide 8: The foundations of Netwealth's success
The foundations of Netwealth's success Our purpose Our values To enable people to see wealth differently + Curious and discover a brighter future + Optimistic + Collaborative See Wealth Differently + Agile Trormealth + Genuine netwealth + Courageous 8 =| netwealth = — FY2018 Annual General Meeting O
Slide 9: Surpassed the FY2018 pro forma prospectus forecast
Surpassed the FY2018 pro forma prospectus forecast ..and delivered growth across all key financial metrics Total Income EBITDA NPAT Operating net cash flow above prospectus by above prospectus by above prospectus by pre tax above prospectus $1.7M (+2.1%) $2.4M (+5.9%) $1.7M (+6.3%) by $0.7M (+1.9%)
Slide 10: Enabling Australians to see wealth differently
Enabling Australians to see wealth differently And discover a brighter future Students sponsored: 8,600+ at over 170 schools bringing Challenge: 40+ university students participated in a financial education to life in classrooms workshop on improving Australians’ engagement with www.banger.com/netwe
Slide 11: Remuneration report
Remuneration report Under Item 2 in the business of the meeting Davyd Lewis will present briefly on the remuneration report. * Short term incentives are generally limited to the sales and distribution team and the Joint Managing Directors. Netwealth will pay a discretionary cash bonus to an employee
Slide 12: Our people
Our people 12 | netwealth FY2018 Annual General Meeting [ nw
Slide 13: Joint Managing Directors' address
Joint Managing 2 Directors’ address © Michael Heine & Matt Heine For personal use 13° | netwealth = FY2018 Annual General Meeting
Slide 14: Continued strong growth in Q1 FY2019
Continued strong growth in Q1 FY2019 $19.3B FUA $3.1B FUM 2,271 al al $11B $0.2B #1 platform" PCP-Prior comparative period being Sep 2017 quarter (1) Investment Trends~ December 2017 Platform Competitive Analysis and Benchmarking Report & May 2018 Planner technology report 14 ‘| netwealth = FY2018 A
Slide 15: FY2018 Pro forma financial highlights
FY2018 Pro forma financial highlights FY2018 NPAT growth was $12.2” million (an increase of 72.7%) in the year 4) | es) es all all all all $83.3M $42.3M° 50.8%" $29.0M" Revenue EBITDA EBITDA MARGIN % NPAT = & KX & $39 4M 11.9 cents” 5.38 cents 518 cents Operating Net Cash Flow Pre Tax EPS Dividend P
Slide 16: Continuing growth momentum
Continuing growth momentum Australias largest specialist platform provider se Russell 22m = transition of Financial Intermediaries = One off client transition 1,504 Russell transition of » 449 et Slee Me Juni? Si? OsetT ah ont —_ 12 mth to Sep-17 12 mth to Sep-18 Junt§ — Junel6—Jun-17-_—Jun-t8 Finan
Slide 17: Netwealth has the highest netflows
Netwealth has the highest netflows Platform providers by FUA market Platform provider net funds flows % Platform providers net funds flow?) % share” % market share (June 2018) market share (12 months to June 2018) market share (quarter to June 2018) #1 |Net funds flow of $1.4B #9 #1 | % of net flows
Slide 18: Shift in platform flows to specialist providers accelerating
Shift in platform flows to specialist providers accelerating Market share percentage of net funds flows (12 month rolling) Net funds flow for the specialist platform providers (SPPs) (70.5%) exceeded the net funds flows for institutional providers (36.6%) for the first time in the 12 month period to
Slide 19: Advanced tech for advice delivery and client engagement
Advanced tech for advice delivery and client engagement A focus on usability Data and Al Automated investment Ecosystems and experience services 19 | netwealth = FY2018 Annual General Meeting Taw
Slide 20: A focus on UI
A focus on Ul Modern, interactive interface for both Advisers and Clients r.) ea + Amore modern design built for large screens, but can {netwealth resize for laptops and tablets + Astreamlined menu system helps users locate key tools and information easily * Simple for users to locate and edit perso
Slide 21: Household wealth
Household wealth John Smith 149,704 : ‘ever 2018 Now satvaseton | AscetPuchase +) or | Cheese ae Off platform external assets (xWrap) Please select your banking institution Q crypt dearen here ANz® Ormacen BOOM _& —.... rossomet PBBTET) stocorge singgel? wadestpac Show All Data feeds from financial
Slide 22: National advertising campaign
Guides (x3) National advertising campaign Change / Chance campaign —— ee = = on wee ee ° — & pres aera FE Withehange comes your : a = technology a =» B . With change With change comes your chance comes your chance torealise new to innovate. efficiencies. netwelth www.netwealth.com.au/change A4 full
Slide 23: For personal use only
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Slide 24: Pricing competition is set to continue
Pricing competition is set to continue but don't believe every thing you read in newspaper... Comparing investment platforms fees is complex as they are all structured differently No platform is the cheapest or most expensive across all + NWLhas superior administration and service than our clients,
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Slide 26: Questions from the floor
Questions from the floor
Slide 27: Formal business
For personal use only Formal business 27° | netwealth == FY2018 Annual General Meeting
Slide 28: Consideration of Netwealth Annual Reports
Item 1 Consideration of Netwealth Annual Reports To receive and consider the Financial Report, Directors’ Report and Auditor's Report for the financial year ended 30 June 2018. The Financial Report, Directors’ Report and Auditor's Report (the “Reports’) for the year ended 30 June 2078 will be laid b
Slide 29: Address by Chairman of the Remuneration Committee
Address by Chairman of the Remuneration Committee - Davyd Lewis 29° | netwealth FY2018 Annual General Meeting + Short term incentives are generally limited to the sales and distribution team and the Joint Managing Directors. Netwealth will pay a discretionary cash bonus to an employee if the employe
Slide 30: Adoption of the Remuneration Report
Item 2 Adoption of the Remuneration Report To consider and, if thought fit, to pass the following resolution as an ordinary resolution of the Company: “That the Remuneration Report, which forms part of the Director's Report for the year ended 30 June 2018, be adopted” Proxy Votes Received 53,194,491
Slide 31: Re-election of Jane Tongs as a Director
Item 3 Re-election of Jane Tongs as a Director To consider and, if thought fit, to pass the following resolution as an ordinary resolution of the Company: “That Jane Tongs, a Non-Executive Director and Chairman of the Company, and being eligible and offering herself for election, be re-elected as a
Slide 32: Appointment of Auditor
Item 4 Appointment of Auditor To consider and, if thought fit, to pass the following resolution as an ordinary resolution of the Company: “That Deloitte Touche Tohmatsu, having being duly nominated by a member of the Company and having consented in writing to act, be appointed as auditor of the Comp
Slide 33: For personal use only
For personal use only
Netwealth Group — Shareholder Meeting (November 2018) on 6ix