SEQUOIA FINANCIAL GROUP LTD — AGM Information 2022

Nov 22, 2022

==> picture [595 x 90] intentionally omitted <==

----- Start of picture text -----

Sequoia Financial Group Ltd
ACN: 091 744 884
ASX: SEQ
----- End of picture text -----

ASX AND MEDIA RELEASE

Wednesday, 23 November 2022

CEO PRESENTATION AT 2022 ANNUAL GENERAL MEETING

Sequoia Financial Group Ltd (ASX: SEQ ) attaches a copy of the CEO’s presentation for today's Annual General Meeting.

-END-

This announcement was authorised for release by the Board of Directors.

For further information please contact:

Garry Crole, Managing Director +61 3 9209 9777 Rebecca Weir, Company Secretary +61 481 876 099

Registered Office: Level 7 7 Macquarie Place Sydney NSW 2000

Phone: +61 2 8114 2222 Fax: +61 2 8114 2200 Email: admin@sequoia.com.au Website: www.sequoia.com.au

ABOUT SEQUOIA FINANCIAL GROUP LTD

ASX-listed Sequoia Financial Group Ltd (ASX: SEQ) is an integrated financial services company providing products and services to self-directed retail and wholesale clients and those of third-party professional service firms.

It provides:

• Investment and superannuation products

• Wealth management and advisory services

• Corporate advisory and capital markets expertise

• Retail, wholesale and institutional trading platforms

• Market data and financial news services

Sequoia operates various AFS Licenses and Its subsidiary Morrison Securities Pty Ltd is an ASX Market Participant.

==> picture [228 x 87] intentionally omitted <==

2022 Annual General Meeting

Garry Crole Managing Director and CEO John Larsen Chairman

23 November 2022

==> picture [378 x 540] intentionally omitted <==

Disclaimer

General Advice

This presentation has been prepared by Sequoia Financial Group Limited (ASX:SEQ). Information contained in this presentation:

==> picture [7 x 11] intentionally omitted <==

==> picture [7 x 11] intentionally omitted <==

==> picture [7 x 11] intentionally omitted <==

==> picture [7 x 10] intentionally omitted <==

• is intended to be general background information only, and is not intended that it be relied upon as advice to investors or potential investors and is not an offer or invitation for subscription, purchase, or recommendation of securities in SEQ should be read in conjunction with SEQ’s annual reports and market releases on ASX

• includes forward-looking statements about SEQ and the environment in which it operates, which are subject to significant uncertainties and contingencies, many of which are outside the control of SEQ – as such undue reliance should not be placed on any forward-looking statements as actual results or performance may differ materially from these statements

• includes statements relating to past performance, which should not be regarded as a reliable guide to future performance

• includes certain financial information not recognised under IFRS which SEQ considers useful to assist in evaluating its performance however, such information has not been subject to audit or review in accordance with Australian Auditing Standards.

• All dollar values are in Australian dollars (A$) unless otherwise stated.

Copyright

The material contained in this document is based on information received in good faith from sources within the market, and on our understanding of legislation and Government press releases at the date of publication, which are believed to be reliable and accurate. Opinions constitute our judgment at the time of issue and are subject to change.

Neither, the Sequoia Financial Group Limited, nor their employees or directors give any warranty of accuracy, nor accept any responsibility for errors or omissions in this document.

Unless otherwise specified, copyright of information provided is owned by Sequoia Financial Group Limited. You may not alter or modify this information in any way, including the removal of this copyright notice.

2 0 2 2 A n n u a l G e n e r a l M e e t i n g

S e q u o i a F i n a n c i a l G r o u p | 2

==> picture [228 x 87] intentionally omitted <==

Managing Director & CEO’s Update

2 0 2 2 A n n u a l G e n e r a l M e e t i n g

CEO Update

1. FY22 Group and Division Financials

2. YTD 2023 Update

3. Group Strategy

4. Questions

==> picture [323 x 487] intentionally omitted <==

2 0 2 2 A n n u a l G e n e r a l M e e t i n g

S e q u o i a F i n a n c i a l G r o u p | 4

FY22 Financial Performance

==> picture [762 x 404] intentionally omitted <==

• NPATA is calculated by adding back amortisation (net of tax) to NPAT

2 0 2 2 A n n u a l G e n e r a l M e e t i n g

S e q u o i a F i n a n c i a l G r o u p | 5

Consolidated Outlook

==> picture [832 x 404] intentionally omitted <==

2 0 2 2 A n n u a l G e n e r a l M e e t i n g

S e q u o i a F i n a n c i a l G r o u p | 6

Licensees Services Division

Financial performance

Divisional performance

==> picture [65 x 58] intentionally omitted <==

==> picture [70 x 58] intentionally omitted <==

==> picture [71 x 54] intentionally omitted <==

==> picture [143 x 50] intentionally omitted <==

==> picture [143 x 50] intentionally omitted <==

==> picture [143 x 49] intentionally omitted <==

==> picture [143 x 49] intentionally omitted <==

==> picture [193 x 350] intentionally omitted <==

FY 2023 revenue forecast is expected to grow 5% year on year, over FY22

FY 2023 has seen an increase in retiring advisers practices providing opportunity for our salaried planning business to acquire further client books.

FY 2023 focus is to increase the number of equity brokers in our Melbourne and Sydney offices from 25 to 40 through recruitment

FY 2023 will see a reporting of an abnormal item in the accounts to remediation from 2019 that we are relating seeking recovery from our insurer

2 0 2 2 A n n u a l G e n e r a l M e e t i n g

S e q u o i a F i n a n c i a l G r o u p | 7

Equity Market Division

Financial performance

==> picture [193 x 350] intentionally omitted <==

==> picture [143 x 61] intentionally omitted <==

==> picture [143 x 50] intentionally omitted <==

Divisional performance

Morrison business continues to win market share of ASX trading volumes with contract note volumes 30% on monthly up year as we have attracted new wholesale and third AFSL year party holders

Morrison has fully expensed investment we made to support the ASX blockchain due to ASX the new proposed cancelling platform whilst also expanding service offerings of the clearing business

Sequoia Specialist Investment new structured products revenue down in FY23 at our election due to our concerns in the volatility of equity markets and interest rate uncertainty Morrison business expanding services in international equities offering in the second half of FY23 and closer aligning with investment platform market

2 0 2 2 A n n u a l G e n e r a l M e e t i n g

S e q u o i a F i n a n c i a l G r o u p | 8

Professional Services Division

Financial performance

Divisional performance

==> picture [143 x 29] intentionally omitted <==

==> picture [143 x 14] intentionally omitted <==

==> picture [71 x 64] intentionally omitted <==

==> picture [62 x 55] intentionally omitted <==

==> picture [63 x 55] intentionally omitted <==

==> picture [143 x 50] intentionally omitted <==

==> picture [191 x 349] intentionally omitted <==

Achieved significant growth of 32% in the number of individual accounting firms or financial planners that used one of our Professional Services in FY22 and this trend has continued in FY23

Captured multiple revenue streams after employing specialist sales staff and further investing in technology in FY22

High revenue growth of 55% achieved in FY22 and forecasting more than 10% growth in FY23

Margin expansion the nature of this business as a SAAS type model allows for long term margins of 25-30% once scale is enabled

2 0 2 2 A n n u a l G e n e r a l M e e t i n g

S e q u o i a F i n a n c i a l G r o u p | 9

Direct Investment Division

Financial performance

Divisional performance

==> picture [142 x 25] intentionally omitted <==

==> picture [78 x 54] intentionally omitted <==

==> picture [142 x 45] intentionally omitted <==

==> picture [142 x 24] intentionally omitted <==

==> picture [142 x 50] intentionally omitted <==

==> picture [142 x 50] intentionally omitted <==

==> picture [142 x 38] intentionally omitted <==

==> picture [192 x 350] intentionally omitted <==

Increased the scale of the media distribution, research and adviser technology platforms to enable premium adviser and investor content

Investment in the back end of FY22 and early FY 2023 has the to the market we serve. improved offering Intention is to use the Informed Investor platform as the core direct to market channel

General Advice capability has been enhanced by the employment of specialist investment managers who will assist in the provision of lower cost to consumer model portfolios and robo-solutions for the market place so more Australians an access advice

2 0 2 2 A n n u a l G e n e r a l M e e t i n g

S e q u o i a F i n a n c i a l G r o u p | 10

YTD 2023 Update

1. Abnormal expenses in the current period has impacted first half 2023 results

a) Client remediation payments from a 2019 remediation matter against an adviser terminated in 2019 has recently settled for amount of approximately $2.5M in our Licensee Services division , the group has commenced an action to seek recovery from the insurer but has conservatively determined to fully expense the matter in current period

b) The decision to reduce new structured product offers in the period May 2022 to September 2022 at our discretion will see a reduction in revenue for that business in the first half

The total of these abnormal items is about $3m. Despite these abnormal items the company expects EBITDA to be in the range of $4m to $5m in the first half year

2. Other Matters

a) The company was approved for a $15m loan facility with ANZ on very positive terms, which we will draw down on for acquisitions only.

b) Sequoia Insurance Brokers business has out-performed expected margins on last years acquisition of the TAG Insurance Brokers portfolio

==> picture [328 x 163] intentionally omitted <==

==> picture [336 x 217] intentionally omitted <==

----- Start of picture text -----

Adviser number
26,793
27 2.0%
25
22,536
23
21 20,112 1.5%
18,969
19
16,921
17
15 1.0%
Jun 19 Jun 20 Jun 21 Dec 21 Jun 22
Industry adviser number Sequoia market share (RH)
Sequoia market share
Number of advisers in thousands
----- End of picture text -----

2 0 2 2 A n n u a l G e n e r a l M e e t i n g

S e q u o i a F i n a n c i a l G r o u p | 11

YTD 2023 Update (cont.)

==> picture [9 x 14] intentionally omitted <==

==> picture [9 x 14] intentionally omitted <==

==> picture [9 x 13] intentionally omitted <==

==> picture [9 x 14] intentionally omitted <==

==> picture [9 x 13] intentionally omitted <==

==> picture [9 x 13] intentionally omitted <==

The Licensees Services business continues to win market share despite the number of industry advisers falling further since June 30 to 15,000

Professional Services business has continued to gain market share following investment in enhanced technology over the last 18 months delivering EBITDA margin expansion for the business

Sequoia Family Office experiencing growth in revenue opportunity off a low base in FY22

Morrison business continues to increase market share with 65 AFSL holders now using the service up from 26 at the commencement of FY22

Morrison monthly market turnover has increased to a rolling average of in excess of $2 billion per month and 50,000 contract notes per month

The acquisition intention in the short to medium term is to acquire bolt on business in Professional Services where margins are in excess of 25% and in Licensee Services where we can gain a scale benefit and increase the numbers of advisers we provide a licensee service

==> picture [328 x 162] intentionally omitted <==

==> picture [336 x 217] intentionally omitted <==

----- Start of picture text -----

Adviser number
26,793
27 2.0%
25
22,536
23
21 20,112 1.5%
18,969
19
16,921
17
15 1.0%
Jun 19 Jun 20 Jun 21 Dec 21 Jun 22
Industry adviser number Sequoia market share (RH)
Sequoia market share
Number of advisers in thousands
----- End of picture text -----

2 0 2 2 A n n u a l G e n e r a l M e e t i n g

S e q u o i a F i n a n c i a l G r o u p | 12

Group Strategy is to provide services to a market that primarily consists of

==> picture [9 x 13] intentionally omitted <==

Approximately 15,000 financial advisers under approximately 2,000 AFS licensees across Australia and 20,000 accounting practices across Australia

Australians have approximately $14 trillion of private wealth, with $6.6 trillion of this wealth invested in a “managed investment” of some kind which in cases relies on an for many intermediary selection

==> picture [9 x 14] intentionally omitted <==

==> picture [9 x 14] intentionally omitted <==

Fund managers, listed companies, sophisticated investors seeking access to impartial adviser distribution and media to reach this market place

==> picture [324 x 487] intentionally omitted <==

2 0 2 2 A n n u a l G e n e r a l M e e t i n g

S e q u o i a F i n a n c i a l G r o u p | 13

What are the services:

Licensees Services Provision of an AFSL on a fee for services share of income.

General insurance Broking Services (Sequoia Insurance Brokers)

In house advice practice (Interprac Securities)

Provision of back office compliance support to 3[rd] party AFSL holders (new)

Professional Services Delivery of legal document establishments

(Constitute, Panthercorp ,NTAA corporate)

Provision of administration services for SMSF ( SMSF Engine , Sequoia Super ) Legal Services to SMSF Trustees

Equity markets Clearing and Execution Services ( Morrisons ) Specialist Investments (Sequoia Specialist Investments)

Direct Investment General Advice AFSL ( Sequoia Asset Management ) Media ( FNN , Share Café ) Research ( Corporate Connect , Yield Report , Informed Investor )

==> picture [324 x 487] intentionally omitted <==

2 0 2 2 A n n u a l G e n e r a l M e e t i n g

S e q u o i a F i n a n c i a l G r o u p | 14

==> picture [228 x 86] intentionally omitted <==

CONTACTS

Garry Crole | Managing Director and CEO garrycrole@sequoia.com.au Web: www.sequoia.com.au Phone: +61 (0)3 8548 3333

2 0 2 2 A n n u a l G e n e r a l M e e t i n g