Quarterly Cash Flow & Activities Report and

onlyAppendix 4C

Q2 FY22

17th January, 2022

useS lfWealth Limited ABN 52 154 324 428 Level 7, 130 Lonsdale Street Melbourne, Victoria, 3000

personalFor

For personal use only

Quarterly Activities Report

Growing Market Share and Diversifying Revenue

Highlights

  • Growing Market Share: Active Traders1 up 9.5% quarter on quarter to 117,674 and securities held on HIN up 17% quarter on quarter to $7.97B, with SelfWealth's market share growth in the past six months confirmed by the recent Investment Trends report.
  • Signed agreement with crypto exchange: Signed a Heads of Agreement with BTC Markets to provide access to select cryptocurrency assets on the SelfWealth platform.
  • Record activity levels in November: Second highest number of ASX trades in a month and highest number of unique portfolios trading.
  • Diversifying revenue: Revenue from US share trading now accounts for over 10% of total SelfWealth revenue, in line with strategy to diversify revenues by product and geography.
  • Attracting top industry talent: Key hires in design, user experience and marketing and the establishment of offshore teams, which builds new capability whilst providing a scalable delivery model.
  • Executing on the product roadmap: First Australian retail platform to offer USA Early Access and the launch of Hong Kong international trading is on track for this quarter.

Melbourne, Australia - 17th January 2022: SelfWealth Ltd (ASX:SWF) ("SelfWealth" or "the Company") has released its Q2 FY22 Quarterly Cash Flow and Activities Report.

Key Financial Metrics

SelfWealth Managing Director and CEO, Cath Whitaker, commented, "Our team is committed to building a sustainable wealth creation platform with diversified revenues and we are focused on strategic initiatives to attract and retain retail investors, including new education content, consumer behaviour analytics and improved user experience. We are very pleased to see that our market share growth over the past six months has been confirmed by the independent Investment Trends report for July to December 20212, in a competitive market environment, showing our strengthened position as the fourth largest wealth creation platform in Australia."

  1. Active Traders are portfolios that are ready to trade, with cash and/or equities in their portfolio
  2. Investment Trends, 2021 H2 Australia Online Investing Report. 20% growth in primary relationships identified between reporting periods.

SelfWealth Ltd (ACN 154 324 428)

Level 7, 130 Lonsdale St

shareholders@selfwealth.com.au

Melbourne, VIC, 3000

www.selfwealth.com.au/investor-centre/

only

Operating Revenue by Quarter ('000)

Active Trader Growth by Quarter

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$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

$1,000

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Total Active Traders (RHS)

For personal

In Q2 FY22, Active Traders were up by 10,213 to 117,674, which was a pleasing result in a competitive market for customer acquisition. Operating revenue decreased slightly to $5.07m, down from $5.5m in Q1, primarily due to customer acquisition-led promotional activity in November and December offering free brokerage on 'buys' for Exchange Traded Funds (ETFs).

Over the past year, SelfWealth started diversifying revenue streams across different exchanges. In Q2 FY22, total receipts from US trading represented over 10% of revenue, with 34% of total Active Traders having added US trading to their portfolios as at 31 December 2021.

Trade Growth by Quarter

SelfWealth Ltd (ACN 154 324 428)

Level 7, 130 Lonsdale St

shareholders@selfwealth.com.au

Melbourne, VIC, 3000

www.selfwealth.com.au/investor-centre/

The number of trades executed during the quarter was 421,764, down 3% quarter on quarter, and up 11% year on year. The second quarter is a seasonally slower trading quarter with the holiday season disrupting retail trading activities in December.

In November 2021, SelfWealth recorded the second highest number of ASX trades in a month and the highest number of unique portfolios trading.

Total Securities Held on HIN ($B)

$9,000

$8,000

$7,000

$6,000

$5,000

$4,000

$3,000

$2,000

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Total Client Cash ($m)

$700

$600

$500

$400

$300

$200

$100

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Client Cash ($m)

For personal use only

Client cash on the SelfWealth platform increased 8% quarter on quarter to $646m (up 49% year on year) and securities held on HIN increased by 17% quarter on quarter to $7.97b (up 85% year on year).

SelfWealth continues to gain market share in a competitive market by attracting a high value, engaged customer base. Over the past six months, SelfWealth has implemented a range of strategic initiatives to increase the number of active trading portfolios, invest in data analytics and build engaging educational content for retail investors.

Signed agreement with crypto exchange

SelfWealth has executed a Heads of Agreement with BTC Markets, Australia's largest and most liquid cryptocurrency exchange to provide access to select cryptocurrency assets via the SelfWealth platform. SelfWealth aims to be the first Australian-based online platform to combine direct Australian equities, US equities and cryptocurrency in a single account on the one wealth creation platform.

This product offering is in response to overwhelming demand from SelfWealth's customer base and ongoing retail investor demand in Australia. The addition of a cryptocurrency asset class to the SelfWealth platform will further enhance revenue diversification. A competitive percentage fee will be applied to cryptocurrency trading volumes undertaken on the SelfWealth platform.

The design and development of cryptocurrency on the SelfWealth platform is underway. The launch will be subject to satisfying the compliance requirements of all relevant authorities and the successful completion of development and testing.

SelfWealth Managing Director and CEO, Cath Whitaker, commented, "SelfWealth is excited to be working with BTC Markets, an organisation that is known for its professionalism,

SelfWealth Ltd (ACN 154 324 428)

Level 7, 130 Lonsdale St

shareholders@selfwealth.com.au

Melbourne, VIC, 3000

www.selfwealth.com.au/investor-centre/

For personal use only

innovation and deep commitment to the Australian crypto industry. We remain focused on building out a premier wealth creation platform, that retail investors can trust."

Ongoing Product Innovation

SelfWealth members have responded positively to instant deposits, live pricing and ESG data which were all deployed since September 2021. Q2 saw the deployment of Chi-X ETF access and additional US trading features, including pre-market access and advanced order types.

The launch of Hong Kong international trading is on track for this quarter.

Balance Sheet & Cashflow

The quarterly cash outflow from operating activities was $2.4m for the December quarter, up from $1.1m in Q1, primarily driven by an increase in quarterly staff costs to $2.6m (up from $1.7m in Q1). This is in line with the Company's strategy to attract key talent and to establish offshore teams.

Cash and cash equivalents at the end of the quarter were $14.9m. The Company continues to have no outstanding debt.

In accordance with listing rule 4.7C, payments made to related parties and their associates, including in items 6.1 of Appendix 4C incorporate Director's fees, remuneration and superannuation at commercial rates.

Investor Inquiries

Cath Whitaker, CEO & Managing Director shareholders@selfwealth.com.au

Media Inquiries

Jarrod Purchase, General Manager of Marketing jarrod.purchase@selfwealth.com.au

The Board of SelfWealth Ltd has authorised the release of this announcement to the market.

SelfWealth Ltd (ACN 154 324 428)

Level 7, 130 Lonsdale St

shareholders@selfwealth.com.au

Melbourne, VIC, 3000

www.selfwealth.com.au/investor-centre/

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SelfWealth Ltd. published this content on 16 January 2022 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 16 January 2022 21:34:06 UTC.