Cashwerkz : Chairman and CEO’s Address and Presentation

ASX Announcement

4 December 2020

CHAIRMAN AND CEO'S AGM ADDRESS AND PRESENTATION

Cashwerkz Limited (ABN: 42 010 653 862) (Company) provides the Chairman and CEO's address

together with the presentation to the Annual General Meeting of Cashwerkz Limited (ASX: CWZ), to be held at 11:00am today.

This announcement was approved by the Board of directors for release.

ENDS

For more information pleases contact:

Jon Lechte - CEO

M: +61 418 406 805

1. shareholders@cashwerkz.com

About Cashwerkz Limited

The Cashwerkz Limited Group of companies delivers an innovative online cash management marketplace including, Bonds, At Call and Term Deposits. Cashwerkz provides 54 Authorised Deposit taking Institutions access to institutions, financial advisers and direct investors for capital using our proprietary technology. Cashwerkz now includes Cashwerkz Technology, Bond Income and Fund Income as its revenue and asset creating divisions. Listed on the Australian Securities Exchange (ASX: CWZ) the group is headquartered in Australia. The Group consists of the following companies:

• Cashwerkz Limited ABN 42 010 653 862 AFSL 260033;
• Cashwerkz FI Limited ABN 86 111 273 048 AFSL 283119;
• Cashwerkz Technologies Pty Ltd ABN 70 164 806 357 AFSL 459645; and,
• Trustees Australia Limited ABN 63 010 579 058 AFSL 260038

CHAIRMAN'S ADDRESS CASHWERKZ LIMITED ANNUAL GENERAL MEETING 4 DECEMBER 2020

This year has been unique to say the least, especially dealing with the impacts of COVID-19. I think "unprecedented times" would have to be the most used statement of 2020 especially on Zoom, followed by "you are on mute". This pandemic however emphasised the need for businesses to be resilient and agile. It drove home to everyone at Cashwerkz the importance of providing investors and portfolio managers with the most trustworthy and capable platform for research, execution and management of their investments.

In October 2019, I became Executive Chairman and immediately commenced a full review of our strategic direction, capability of our technology, talent and processes inherent in our operations, and the performance against various targets. As a result, the Board saw the need to effect change that altered the trajectory of the group, invigorated the ability to innovate in technology and introduced a scalable and new business model that expanded our market reach.

To bring this to fruition, we have the done the following in a very short period:

• Introduced to our board Mr Craig Swanger, who has extensive Fixed Income, Funds Management, Remuneration Modelling skills and very strong Executive Directorship experience in the Fintech space. As a result, we were able to effect significant improvements with our remuneration model to attract the very best of talent and scan the market for a new leader.
• In April 2020, the group recruited Mr Jon Lechte as Chief Executive Officer to drive our new agenda and deliver upon the required revenue growth and increase in shareholder value. Jon is a very well- known talent in Fixed Income and also in building businesses by disrupting markets and moving quickly. During his short tenure with the group, Jon has delivered a clear pathway to executing our strategy, diversifying into bonds and other products, as well as building the cash products offered via our unique platform. He has built a brand-neweco-system that is unique and very adaptable for our product suppliers and customers.
• Launched Bond Income, our leading bonds business and attracted key talent to drive this scalable segment forward. We have already found this has threatened our competitors as we seek to bring transparency, innovation, and fairness to this industry. Given our advantage in technology and leadership capability, we know that we can scale this part of our business and move the industry away from archaic practices to more efficient and value-added services and solutions.
• Also launched our Funds Management "Incubator Business", called Fund Income, to attract market leading capability and product offerings through sustainable partnership agreements.
• Cashwerkz has, via its retained Trustees Australia Limited subsidiary, launched Fortlake Asset Management which is run by Dr Christian Baylis. Fortlake Asset Management is an experienced fixed income manager that offers institutional capabilities in a boutique structure, with a focus on generating returns above inflation.

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• Attracted a diverse range of talent that is market leading. Fortlake announced some very senior and well-known board members recently, additionally Jon has also appointed:

1. Our new Financial Controller, Clare Power, ex large corporate accounting executive.

1. Alexandra Coleman to be appointed Chair of Trustees Australia Limited, a very strong AFSL expert who was instrumental in getting Fortlake to the market.

1. Head of Deposits, Bianca Burt, ex FIIG Securities of 15 years and experienced in managing billions in cash and term deposits.

1. Kyle Lambert, ex BGC Australia and our Head of Bond Facilitation, is starting in early 2021. He is one of the most exciting talents in the Bond Industry and a proven performer.

1. Vanessa Chidrawi as our Company Secretary.

1. Matthew Loughnan, Ex NSX CEO and well accomplished senior executive to our Chief Commercial Officer role.

We expect under Jon's leadership to continue to attract the right market leading talent who approach us because of the way we treat each other and our customers. Innovating, scaling, transparency and focusing on customers first will drive our agenda.

I thank the entire Cashwerkz team for their tenacity and commitment, their resilience and agility to implement a new strategy and manage the multitude of changes this year has brought to enable a stable income for investors.

I would also like to thank my board colleagues for their insights and commercial acumen throughout the year. Craig Swanger, Brook Adcock, Michael Hackett and Nathan Leman who for the most part, have been part of the journey since merging Trustees Australia and Cashwerkz in 2017.

And lastly and very importantly to our shareholders, I thank you for your continuing support. Today, Cashwerkz is better positioned with innovative technology, financial resources and human capabilities to enable the Company to improve the value for shareholders.

Australia has now officially exited the recession we were forced into, global debt exceeds $272 trillion dollars, Australian Government debt exceeds $1.3 trillion with household private debt a staggering $2.9 trillion, and we are currently seeing a significant increase in the savings rate of 20% from the normal 5%. This is a once in a generation wealth transfer from the Government sector to the Private sector, and Cashwerkz, as a result of its brand new eco-system, is extremely well placed to excel in this market environment and we look forward to making 2021 our best year ever!

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CEO'S ADDRESS

CASHWERKZ LIMITED

ANNUAL GENERAL MEETING

4 DECEMBER 2020

The Chairman's address talked about the past year at Cashwerkz, it was one of change I am sure you agree. I am going to explain the vision and also our point of difference.

Household Saving Rate in Australia

Source: Australian Bureau of Statistics

The Battle.

We are small micro-cap company, how are we going to win the battle to get to scale to compete?

The battle I refer to, is not one with incumbent Fixed Income players who, by the way, in trying to create a snug environment for themselves, have created a model that, I believe, will never get to scale. Let us explore some of the mistakes made in the past and how our offering differs.

Many in the Fixed Income sector have been ignoring the "Best Interest Duty" to clients.

It may not be illegal - but it doesn't pass the pub test.

We at Cashwerkz will make Best Interest Duty our commercial edge.

Unlike our competitors, we will not over-charge clients who hold bonds with our custodian. Or introduce suddenly a fee that can cost clients up to $500 per bond, to move their holdings to another custodian.

The government review into the Bond market is a welcome step forward to opening up this market to more investors yet the behaviour of the incumbents is a step in the opposite direction. (*see link below)

We have seen that the behaviour of employers in financial services can set the wrong culture. We see competitors creating employee contracts that drives pure extraction of revenue from clients or the employee faces stiff financial consequences. In this environment where employees are already under pressure, we know this will lead to a poor compliance culture and high-pressure sales.

At Bond Income we are creating a different culture and client experience that clients trust. We will attempt to always have professional buyers in our bonds offers. It increases liquidity and it is a tacit endorsement of the price at which the bond is being offered.

*www.aph.gov.au/Parliamentary_Business/Committees/House/Tax_and_Revenue/CorporateBondMarket

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