SEQUOIA FINANCIAL GROUP LTD — Capital/Financing Update 2017

Dec 20, 2017

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ASX RELEASE

21 December 2017

Sequoia increases ownership in Financial News Network &

InterPrac General Insurance

• Sequoia increases holding in Finance TV Pty Ltd to 77.07%

• Sequoia increases holding in InterPrac General Insurance Pty Ltd to 100%

• Sequoia purchases My Own Super Fund Pty Ltd client base

• Restatement of financial report comparables for period ending June 2017

Sydney, 20[th] December 2017: Sequoia Financial Group Limited (ASX:SEQ) (“SEQ” or the Company) is very pleased to announce that it is in final completion stages of increasing holdings in partially owned subsidiaries, Finance TV Pty Ltd (trading as Finance News Network (FNN)) and InterPrac General Insurance Pty Ltd.

Finance TV

The holding in FNN will increase by 23.12%, taking total ownership to 77.07%. Shares in InterPrac General Insurance Pty Ltd (IPGI) will increase by 10% taking total holding to 100%. The increase in both holdings are cash funded.

FNN is a growing business and a key strategic asset to SEQ, due to its highly successful investor events, quality digital financial news platform and its ASX listied digital communication offering to ASX listed companies. FNN’s Founder and CEO Simon Van Es will remain with SEQ as a key executive.

InterPrac General insurance

InterPrac General insurance is an insurance brokerage business that specialises in providing access to Professional Indemnity Insurance, Directors and Officers liability insurance and business & personal insurance for the accounting industry and their clients. John Plim the

For further information please contact:

Scott Beeton, Managing Director & CEO +61 2 8114 2222 Tharun Kuppanda, Company Secretary +61 2 8016 2875

ABOUT SEQUOIA FINANCIAL GROUP LIMITED

Registered Office: Level 36, 50 Bridge St Sydney NSW 2000 Australia

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

ASX-listed Sequoia Financial Group Limited (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 subsidiaries D2MX Pty Ltd and Morrison Securities Pty Ltd are ASX Market Participants.

InterPrac General Insurance Founder will remain with SEQ as a key executive running this division of the Company.

The InterPrac General insurance business is an insurance broker to more than 1,500 separate bookkeepers, tax agents and accountancy firms across Australia which compliment the service offering of the broader Sequoia network in financial planning, stockbroking, selfmanaged super administration, legal documents and finance broking.

My Own Super Fund

In addition to the recent increase of ownership in FNN and InterPrac General Insurance, Sequoia is pleased to advise it is in the final stages of acquiring the SMSF client base of My Own Super Fund and will employ its founding director Mark Phillips as head accountant to the companies various self-managed superannuation administration businesses. The combination of Sequoia Superannuation, SMSF engine and My Own Super Fund brings the total SMSF funds being administered by SEQ to above 1400.

Restatement of Financial Reports

After considerable consultation with our previous auditors (Hall Chadwick) and our new auditors (William Buck) we will be restating prior period financial comparable results that will be released towards the end of February 2018. The prior period restatement relates to the treatment of deferred revenue and deferred hedging expenses of Investment Solutions operated through Sequoia Specialist Investment Pty Ltd (SSI). The Company will restate these components to reflect the gross amount of revenue and hedging expenses. The reporting change has no impact on the June 2017 reported profit of the Company, net cash from operating activities and net assets. The effect of the restatement for June 2017 is a decrease to revenue, hedging costs, receipts from customers and payments to suppliers of $9,280,486. The restated amounts which will be reported in the financial reports will be revenue of $35,084,460, hedging expenses of $7,131,658, receipts from customers of $50,522,074 and payments to suppliers of $44,490,517. The only impact in the financial statements is a restatement of the comparatives in the prior periods.

Commenting on the acquisitions, Sequoia Managing Director and CEO Scott Beeton said, “The two increases in strategic holdings and the additional purchase which is complementary to our SMSF superannuation businesses top off a very busy 2017 calendar year for Sequoia. I am also delighted Simon Van Es & John Plim will remain at Sequoia as a key executives of the group and we welcome Mark Phillips who is a highly regarded superannuation tax agent. The increased holdings and purchase align the Company for further growth into the new calendar year and beyond”.