INVESTSMART GROUP LIMITED — AGM Information 2017

Nov 21, 2017

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22 November 2017

Attention: Company Announcements ASX Limited

By E‐Lodgement

ANNUAL GENERAL MEETING OF INVESTSMART GROUP LIMITED (ASX Code: INV), HELD ON 22 NOVEMBER 2017 – COMMENTS BY CHAIRMAN & PRESENTATION BY MANAGING DIRECTOR

Text of the Comments by Mr Paul Clitheroe AM, Chairman

Before we consider the formal business of the Meeting, I would like to make a few comments in relation to the Company.

Our vision for the InvestSMART Group is to help all Australians to grow and protect their wealth. People should be able to take control of their financial future and it should not be hard or expensive for them to do so.

We seek to do this by providing innovative tools, research and advice that they can trust and empower them to make better investment decisions.

I am delighted to advise that our own suite of inhouse products has recently been more actively promoted to our members and visitors. One pathway I do know a fair bit about is growing a retail funds management business. And it is with pleasure I am able to tell you that we have exceeded $50 million funds under management in a very short time. The month on month growth of funds being invested is impressive. It is with equal pleasure that I went to the InvestSMART website and was able to make an investment for my super fund, including identity checks with ease. The technical difficulty of this that sits behind the website is hugely complex. Such simplicity at the consumer end is a huge competitive advantage.

I announced when I was first appointed Chair that the idea of what is effectively a fintech start up, investing shareholders’ funds in other startups, was not an appropriate strategy for shareholders. We are better placed applying shareholder funds to our own growth. In the 2016/17 year we sold our interest in Hashching, our initial investment was $100,000 and the sale of shares resulted in a return of just over 50%. I am pleased to say that in August 2017, we were able to sell our stake in Stockspot for $557,000, a sound return on the $250,000 invested. Shareholders invested some $1.6 million in these ventures. I have to say that of our remaining 8 investments, some are sure to fail, such is the way of startups, but I remain positive that we have reasonable prospects of seeing a return of funds outlaid by shareholders.

Speaking of use of funds, following on from my comments last year, InvestSMART is now in a position to embark on a significant marketing campaign aimed at growing our client base and FUM. Obviously, we are a digital company and I would not pretend to

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you that I have skills in digital marketing. As such we have been undertaking a search for a Director with these skills. The right person has only just been found and has indicated his willingness to accept a role as Director of InvestSMART. The appointment will be formalised shortly, but in the interim I would like to say a few words about Kevin Moore and he has generously agreed to be here today.

“The board is delighted to announce the pending appointment of Kevin Moore. Kevin brings to InvestSMART a corporate career with Director level marketing and general management experience across 30 countries, with success in launching and growing Australian and Global brands. His private company career saw him build a small technology based retail marketing business into the sector with over 3,000 team members in ANZ, and clients that include Apple, Woolworths, & Coles. His Non‐ Executive responsibilities include the Chairmanship of “CROSSMARK Asia Pacific”, owned by Private Equity Firm Warburg Pincus, Chairman of digital marketing company “The Now Communications Group” and a Director of the physical and digital events company “Now Asia” based in Singapore.”

Kevin is a Fellow of the Australian Institute of Company Directors, a Member of the Chartered Institute of Marketing.

I now have pleasure introducing Ron Hodge to address the meeting.

Presentation by Mr Ron Hodge, Managing Director

A copy of the presentation made by Mr Ron Hodge, Managing Director is enclosed.

Yours faithfully

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Grant Winberg Company Secretary

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Page 1

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Investor
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Our Vision

To help all Australians grow and protect their wealth.

FY17 Highlights

3 0 J U N E 2 0 1 7

Core Business Goals FY18–20

Grow funds under Maintain historical management subscription business

1 2 Maintain historical funds 3 4 under administration book

Grow additional revenue streams predominantly through life insurance and term deposits offering

Competitive Advantage

Profitable business No Debt Monthly free cash flow $6m cash in bank

Considerable existing database of clients, with significant new monthly traffic

Product development starting to reap rewards

Major Marketing campaign to start early in 2018

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Automated Investment Advice
Engagement Advice
Health Check /
Checking Diversification
Reviewing
Monitoring
Keeping track
Research & Improve Portfolio /
information Scenario Checking
Insights
Investment Opportunities
Total Value of Shares: $9,614,742,350 Total Value of Funds: $2,191,727,296
Assets on Platform
(as at 31 Oct 2017) Total Value of Cash: $2,019,423,733 Total Value of Property: $8,121,615,754
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International Comparison

B E T T E R M E N T & W E A L T H F R O N T

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Takes them 2 years to get
Takes them another 2 years
viable product to market
to reach $1B AUM
Aug
2008 2010 2013 2015
2017
Betterment $10B AUM
Betterment and 353k investors
Takes them both around
Wealthfront both start in
Aug 2008 another 3 years to reach Wealthfront $7.5b
$100m AUM AUM182k investors
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International Comparison

I N V E S T S M A RT I S C U R R E N T LY O N A S I M I L A R PAT H

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2013
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2015 2018 2020 2022
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Target Audience

Over 9m Australians are between 36-65 years old.

Nearly 80% or over 7m of these Australians earn greater than $78,000

Estimated penetration is conservatively estimated at 0.5%

InvestSMART Today

• Market Cap $42.6m

• Shares on Issue 133m

• Share Price 33 cents

• No debt & $6m cash in bank

• FY17 Revenue $14.2m

Revenue Drivers

• FUM to $535m by 2020

• Term Deposits > $1b

• Potential Scaled SOA

• Historical revenue from Subs and FUA