SEQUOIA FINANCIAL GROUP LTD — Interim / Quarterly Report 2017

Apr 27, 2017

27 April 2017

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APPENDIX 4C QUARTERLY REPORT

• Period Ended 31 March 2017

Highlights

• ➢ Record revenue result of $11,766,000

• ➢ Positive net cash flow of $516,000

• ➢ Software Subscription Division commenced new platform roll out

• ➢ Investment Solutions Division delivering greater contribution from bespoke solutions for third party wholesale investors

Sequoia Financial Group Limited ( ASX: SEQ ) (“SEQ”, “Sequoia” or “the Company”) is pleased to provide the following overview of its consolidated statement of cash flows for the quarter ending 31 March 2017 and general market update.

Operating Result

During the quarter, the Company reported receipts from customers of $11,766,000 which was:

• A record result and 22% uplift on the prior quarter (Q2FY17: $9,674,000)

• An increase of 63% on the previous comparable period (Q3FY16: $7,200,000)

• Revenue of more than $4,900,000 from bespoke product sales

This result produced a positive operating net cash flow totalling $516,000.

Importantly, this allowed Sequoia to strengthen the balance sheet with cash & cash equivalents increasing by $216,000 in addition to increasing our bonds with our ASX clearer by $300,000 to $1,300,000. The aggregate amount of these assets including investments totals $5,533,000 , a 12% increase from the previous quarter.

Outlook

Business opportunities benefiting the broader group continue to present themselves.

The Trading & Execution Division continues to experience stronger volumes and client activity. The favourable market conditions, additional new client accounts and new third party wholesale AFS licensed clients helped generated record levels of income across this division. We continue to see many new opportunities and new client acquisition opportunities which should assist in continued upside in this business unit.

In January, the Software Subscription Division commenced the rollout of the new software platform to new and existing clients. We are encouraged by the early take up of new retail and wholesale clients of the new platform. The transition of all clients to the new software is expected to take approximately 6 months.

The Investment Solutions Division had a fantastic quarter of traditional year on year sales as well as increased traction for its bespoke products.

The increased demand for bespoke solutions in this quarter was $4,932,000 because of customised strategies for third party wholesale clients & high net worth individuals beginning to gain greater interest in this period.

The Capital Markets Advisory team successfully completed key capital raising initiatives and were successful in securing several mandates during the period which are expected to contribute favourably in FY18.

Commenting on the Company’s performance of the business for the quarter, Sequoia’s Managing Director and CEO Scott Beeton, said “our strategy of being a horizontally integrated financial services company continues to produce favourable results and value to our stakeholders. We have strong momentum across the various business units with plenty of opportunities in front of us which should continue our positive trajectory. We are very proud of the complementary family of businesses within our group which we believe delivers a strong diversified business model for long term success.”

For further information please contact:

Scott Beeton, Group Managing Director and CEO +61 400 242 425 Marika White, Company Secretary +61 2 8263 0515

ABOUT SEQUOIA FINANCIAL GROUP LIMITED

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

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

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

• 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 D2MX is an ASX Market Participant