ASX:AU1 · 31 October 2017Price sensitive

Appendix 4C – Quarterly Cashflow and commentary

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ďŽƵƚƵƐŶĞƚ ƵƐŶĞƚ ĐŽŶƐŝƐƚƐ ŽĨ Ă ŐƌŽƵƉ ŽĨ ƐƵĐĐĞƐƐĨƵů ďƵƐŝŶĞƐƐĞƐ ǁŚŝĐŚ ĚĞůŝǀĞƌ ĨŝŶĂŶĐĞ ďƌŽŬŝŶŐ͕ ƌĞĂů ĞƐƚĂƚĞ ƐĞƌǀŝĐĞƐ͕ ƐĞƚƚůĞŵĞŶƚ ƐĞƌǀŝĐĞƐ͕ ƉƌŽƉĞƌƚǇ ŵĂŶĂŐĞŵĞŶƚ ;ϮϬϭϳͿ͕ ƉƌŽũĞĐƚ ŵĂƌŬĞƚŝŶŐ͕ ŝŶƐƵƌĂŶĐĞĂŶĚĨŝŶĂŶĐŝĂůƉůĂŶŶŝŶŐŝŶŝƚŝĂůůǇƚŽƚŚĞtĞƐƚĞƌŶƵƐƚƌĂůŝĂŶŵĂƌŬĞƚǁŝƚŚĂŶĂŝŵƚŽďĞ ƌŽůůĞĚŽƵƚŶĂƚŝŽŶĂůůǇ͘ dŚŝƐ ŵŽĚĞů ŚĂƐ ďĞĞŶ ĐƌĞĂƚĞĚ ƚŽ ďƵŝůĚ ƚŚĞ ĐŽƌĞ ĂƐƐĞƚ ďĞŝŶŐ Ă ůŽĂŶ ďŽŽŬ ĐƵƌƌĞŶƚůǇ Ăƚ ΕΨϭ͘ϭ ďŝůůŝŽŶ ďǇ ĐƌŽƐƐ ƌĞĨĞƌƌŝŶŐ ĐůŝĞŶƚƐ ďĞƚǁĞĞŶ ďƵƐŝŶĞƐƐ ƵŶŝƚƐ͘ dŚĞ ůĂƌŐĞƐƚ ŐƌŽǁŝŶŐ ƌĞĨĞƌƌĂů ĂƌĞĂ ŚĂƐďĞĞŶďƵŝůƚŽŶĂŚŝŐŚůǇƐƵĐĐĞƐƐĨƵůĂŶĚĚŝƐƌƵƉƚŝǀĞƌĞĂůĞƐƚĂƚĞĂŐĞŶĐǇŵŽĚĞůŶĂŵĞĚ͞dŚĞ ŐĞŶĐǇ͘͟dŚĞĂŐĞŶƚƐŚĂǀĞďĞĞŶƌĞĨĞƌƌŝŶŐΕϲϬйŽĨĂůůƐĂůĞƐĨŽƌĨŝŶĂŶĐŝŶŐďƌŽŬŝŶŐ͘ ƵƐŶĞƚŝƐĂŝŵŝŶŐƚŽƌĞĐƌƵŝƚΕϭϬϬƐĂůĞƐƌĞƉƌĞƐĞŶƚĂƚŝǀĞƐƚŽ͞dŚĞŐĞŶĐǇ͟ŝŶtĞƐƚĞƌŶƵƐƚƌĂůŝĂ ƚŚĂƚ ǁŝůů ĞǀĞŶƚƵĂůůǇ ĚĞůŝǀĞƌ ŽǀĞƌ ϭϬϬϬ ƉƌŽƉĞƌƚǇ ƚƌĂŶƐĂĐƚŝŽŶƐ ƉĞƌ ǇĞĂƌ ǁŝƚŚ ƚŚĞ Ăŝŵ ŽĨ ĐŽŶǀĞƌƚŝŶŐ ŝŶƚŽ ĐƌŽƐƐ ƐĂůĞƐ ĨŽƌ ŵŽƌƚŐĂŐĞƐ͕ ƐĞƚƚůĞŵĞŶƚƐ ĂŶĚ ŝŶƐƵƌĂŶĐĞ͘ ĂĐŚ ƐĂůĞƐ ƌĞƉƌĞƐĞŶƚĂƚŝǀĞƚŚĂƚũŽŝŶƐƵƐŶĞƚŶŽƚŽŶůǇĂĚĚƐĂůĞƐĂĐƚŝǀŝƚŝĞƐďƵƚĂůƐŽŽŶĂǀĞƌĂŐĞďƌŝŶŐŝŶĂ ĚĂƚĂďĂƐĞŽĨΕϮϬϬϬĐůŝĞŶƚƐ͘ƵƐŶĞƚ͛ƐƚĂƌŐĞƚŝƐƚŽŚĂǀĞΕϲϬϬƐĂůĞƐƌĞƉƌĞƐĞŶƚĂƚŝǀĞƐŶĂƚŝŽŶĂůůǇ͘ dŚĞ ŽŵƉĂŶǇ ŝƐ ĂůƐŽ ďĂĐŬĞĚ ďǇ &ŝŶƐƵƌĞ ‘ƌŽƵƉ͕ ŽŶĞ ŽĨ ƵƐƚƌĂůŝĂΖƐ ĨĂƐƚĞƐƚ ŐƌŽǁŝŶŐ ƌĞƚĂŝů ĨŝŶĂŶĐĞ ďƌŽŬĞƌĂŐĞƐ ǁƌŝƚŝŶŐ ŽǀĞƌ Ψϭ ďŝůůŝŽŶ ŝŶ ŶĞǁ ŵŽƌƚŐĂŐĞƐ ĞǀĞƌǇ ŵŽŶƚŚ ĂĐƌŽƐƐ ϴϱϬ ďƌŽŬĞƌƐ͘ ŽƌƉŽƌĂƚĞǁĞďƐŝƚĞ͗ ǁǁǁ͘ĂƵƐŶĞƚƌĞĂůĞƐƚĂƚĞƐĞƌǀŝĐĞƐ͘ĐŽŵ͘ĂƵ dŚĞŐĞŶĐǇǁĞďƐŝƚĞ͗ ǁǁǁ͘ƚŚĞĂŐĞŶĐǇ͘ĐŽŵ͘ĂƵ /ŶǀĞƐƚŽƌƐ ƵƐŶĞƚ&ŝŶĂŶĐŝĂů^ĞƌǀŝĐĞƐ>ƚĚ WĂƵůEŝĂƌĚŽŶĞ d͗нϲϭϬϴϵϮϬϰϳϵϱϱ ƉĂƵůΛĂƵƐŶĞƚƌĞĂůĞƐƚĂƚĞ͘ĐŽŵ͘ĂƵ

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

Ausnet Financial Services Limited

ABN Quarter ended (“current quarter”)

52 118 913 232 30 September 2017

Consolidated statement of cash flows Current quarter Year to date $A’000 $A’000 1. Cash flows from operating activities 1.1 Receipts from customers 3,551 3,551 1.2 Payments for (a) research and development – – (b) product manufacturing and operating (1,231) (1,231) costs (c) advertising and marketing (65) (65) (d) leased assets (40) (40) (e) staff costs (1,964) (1,964) (f) administration and corporate costs (284) (284) 1.3 Dividends received (see note 3) – – 1.4 Interest received 2 2 1.5 Interest and other costs of finance paid – – 1.6 Income taxes paid – – 1.7 Government grants and tax incentives – – 1.8 Other – – 1.9 Net cash from / (used in) operating (31) (31) activities

2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (174) (174) (b) businesses (see item 10) – – (c) investments – –

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows Current quarter Year to date $A’000 $A’000 (d) intellectual property – – (e) other non-current assets – – 2.2 Proceeds from disposal of: (a) property, plant and equipment – – (b) businesses (see item 10) – – (c) investments – – (d) intellectual property – – (e) other non-current assets – – 2.3 Cash flows from loans to other entities – – 2.4 Dividends received (see note 3) – – 2.5 Other – Cash acquired on acquisition of – – businesses 2.6 Net cash from / (used in) investing (174) (174) activities

3. Cash flows from financing activities 3.1 Proceeds from issues of shares – – 3.2 Proceeds from issue of convertible notes – – 3.3 Proceeds from exercise of share options – – 3.4 Transaction costs related to issues of – – shares, convertible notes or options 3.5 Proceeds from borrowings – – 3.6 Repayment of borrowings – – 3.7 Transaction costs related to loans and – – borrowings 3.8 Dividends paid – – 3.9 Other (provide details if material) – – 3.10 Net cash from / (used in) financing – – activities

4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of quarter/year to date 2,203 2,203 4.2 Net cash from / (used in) operating (31) (31) activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (174) (174) (item 2.6 above) 4.4 Net cash from / (used in) financing activities – – (item 3.10 above)

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows Current quarter Year to date $A’000 $A’000 4.5 Effect of movement in exchange rates on – – cash held 4.6 Cash and cash equivalents at end of 1,998 1,998 quarter

5. Reconciliation of cash and cash Current quarter Previous quarter equivalents $A’000 $A’000 at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts 5.1 Bank balances 1,623 2,203 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (Bank Guarantees) 375 – 5.5 Cash and cash equivalents at end of 1,998 2,203 quarter (should equal item 4.6 above)

6. Payments to directors of the entity and their associates Current quarter $A’000 6.1 Aggregate amount of payments to these parties included in item 1.2 123 6.2 Aggregate amount of cash flow from loans to these parties included – in item 2.3 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2

Director salary $86k Director fees $37k

7. Payments to related entities of the entity and their Current quarter associates $A’000

7.1 Aggregate amount of payments to these parties included in item 1.2 – 7.2 Aggregate amount of cash flow from loans to these parties included – in item 2.3 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

8. Financing facilities available Total facility amount Amount drawn at Add notes as necessary for an at quarter end quarter end understanding of the position $A’000 $A’000 8.1 Loan facilities – – 8.2 Credit standby arrangements – – 8.3 Other (please specify) – – 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9. Estimated cash outflows for next quarter $A’000 9.1 Research and development – 9.2 Product manufacturing and operating costs (1,527) 9.3 Advertising and marketing – 9.4 Leased assets (2) 9.5 Staff costs (1,314) 9.6 Administration and corporate costs (250) 9.7 Other (Bank Guarantee and Rental deposit) – 9.8 Total estimated cash outflows (3,093)

10. Acquisitions and disposals of Acquisitions Disposals business entities (items 2.1(b) and 2.2(b) above) 10.1 Name of entity Nil Nil 10.2 Place of incorporation or registration 10.3 Consideration for acquisition or disposal 10.4 Total net assets 10.5 Nature of business

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Compliance statement

1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A. 2 This statement gives a true and fair view of the matters disclosed.

Sign here: …………………………………………………… Date: 31 October 2017 Company Secretary

Print name: Stuart Usher

Notes 1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report. 2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report. 3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

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