SelfWealth : Quarterly Activities Report and Appendix 4C

Quarterly Activities Report

New Revenue Stream and Record $9bn Funds on Platform

Ongoing momentum as SelfWealth passes halfway mark of 18-month transformation program to build a leading retail wealth creation platform

Highlights

• • Solid quarterly revenue growth: Operating revenue increased 6% quarter-on-quarter to $5.4m.

• • Positive customer growth: Net new Active Traders1 up 5% quarter-on-quarter to 123,523.

• • Record funds on wealth platform: Over $9.3bn in Funds Under Administration (FUA), up 66% year-on-year.

• • Record cash balance: Cash balances on the platform increased by 22% quarter-on-quarter to a record $744m.

• • Improved operating cash flow: Operating cash flow improved by $600k quarter-on-quarter down to an outflow of $1.8m.

• • New revenue streams: Launch of an additional international market in Hong Kong equities trading. Australia, US, and HK Equities all now available on platform.

• • Award-winning, high-growth company: SelfWealth ranked 4th in Australia in the Financial Times' Asia-Pacific High-Growth Companies 2022 Awards and 27th in the Deloitte Tech Fast 50 Awards.

Market conditions

• • Investors going to cash: In Q3, SelfWealth clients responded to the inflation outlook, interest rate speculation, and geopolitical tensions by switching out of equities and into cash, leading to the record cash balance on the platform and lower trading activity.

• • Interest rates on the move: With increasing cash balances on platform, SelfWealth is well positioned to benefit from an interest rate tightening cycle in Australia, as the Company has the ability to increase the net interest margin on cash.

• • Sustainable business model in post COVID 'new normal': Following heightened levels of retail trading activity in equities over the past two years, Q3 represented the first post lockdown quarter with lower trading numbers across the market. In Q3, SelfWealth observed a 'new normal', as retail investors increased spending on consumer goods, travel, and entertainment. Over the past two years, the number of retail traders increased, however competition for disposable income among millennials and Gen Zs has recently intensified. SelfWealth is well positioned to continue growing in this 'new normal' environment. In Q3, SelfWealth continued to grow Active Traders and top line revenue, reinforcing SelfWealth's sustainable business model and growth potential.

1 Active Traders are portfolios that are ready to trade, with cash and/or equities in their portfolio

Melbourne, Australia - 12 April 2022: SelfWealth Ltd (ASX:SWF) ('SelfWealth' or 'the Company') has released its Q3 FY22 Quarterly Cash Flow and Activities Report.

SelfWealth Managing Director and CEO Cath Whitaker comments, "SelfWealth is halfway through its 18-month transformation program to build a leading retail wealth creation platform. We have attracted top technology and marketing talent, and our focus is now on increasing deployment velocity. In Q3, Hong Kong trading went live, and in this quarter, we remain on track with the launch of crypto. Based on original roadmap projections, deployment has been delayed by a quarter on each of these new revenue streams due to complex regulatory approvals required and delays in onboarding team members in a COVID disrupted environment."

"We are future-proofing SelfWealth by creating a market-leading wealth management platform for retail investors. We are not engaged in the race to the bottom. Instead, we are building a sustainable business model, where savvy retail investors can trust that their cash and equities are safe."

Key Financial Metrics

Q3 FY21*Q2 FY22

Q3 FY22

YOY Change

*Q3 FY21 was the 'GameStop' quarter which represented the historical high-water mark for retail trading activity.

Operating Revenue by Quarter ('000)

Active Trader Growth by Quarter

In Q3 FY22, operating revenue increased by 6% quarter-on-quarter to $5.37m, and Active Traders increased to 123,523.

Quarterly Equities Trade Volumes

The number of trades executed during the quarter was 380,029, down 10% quarter-on-quarter and in line with an industry-wide reduction in market trading activity in early 2022.

Despite the competitive environment, SelfWealth continues to attract new customers from its targets - the big four banks. The continued net inflow of HINs onto the platform shows the Company is consistently gaining market share.

Total Securities Held on HIN ($B)

Total Client Cash ($m)

Cash balances on the platform increased by 22% quarter-on-quarter to a record $744m. The SelfWealth customer base is well-funded and has capacity to invest in new asset classes as they are added to the platform. The company continues to see increases in the value of assets held on HIN, reaching $8.2bn by the quarter-end, and FUA including cash and International holdings at a record $9.3bn.

Launch of Hong Kong Equities

In March 2022, SelfWealth launched Hong Kong equities, providing access to China's largest and fastest growing tech stocks. This provides SelfWealth with additional competitive differentiation in market.

Education and Content

SelfWealth is continuing to implement market-leading investor education content via YouTube live sessions that provide a weekly forum for member engagement with tens of thousands of quarterly views. In Q3, the Company updated the format to include interviews with top fund managers, and harness the platform's 'virtual portfolio' feature to model investing strategies viewers can follow at home.

The launch of SelfWealth's Big Swinging Stocks podcast is an important differentiator in the investor content landscape. The initial two episodes were ranked in the top three Australian business podcasts by Spotify.

Ongoing Product Innovation

SelfWealth remains on track to launch crypto capabilities late in Q4, an industry first that will again see the Company lead the market.

Mobile updates are important to SelfWealth customers and pivotal to maintaining a competitive edge. Mobile has become a priority, and the Company is committed to improving the user experience.

Through better utilisation of data, analytics, and customer segmentation, SelfWealth is developing tailored service offerings that will improve customer acquisition, engagement, and retention.

Balance Sheet & Cashflow

The quarterly cash outflow from operating activities was $1.8m for the March quarter, down from the cash burn of $2.4m in Q2 FY22. The increase in staff costs supports the Company's strategy to utilise key talent and remains in line with our budgeted growth plans.

Cash and cash equivalents at the end of the quarter were $13.1m and the Company is fully funded to execute on its growth strategy. SelfWealth continues to have no outstanding debt.

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

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

Investor Inquiries

Cath Whitaker, CEO & Managing Directorshareholders@selfwealth.com.au

Media Inquiries

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

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