ASX:AU1 · 17 May 2017

Investor Presentation

Disclaimer This presentation has been prepared by Ausnet Financial Services Pty Ltd ABN 37 093 805 675 (the Company) in connection with a proposed capital raising.

This presentation is being provided to a limited number of investors for the sole purpose of providing preliminary background financial and other information to enable recipients to review the business activities of the Company. It is not intended as an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any securities.

This presentation should not be relied upon as a representation of any matter that a potential investor should consider in evaluating the Company. The Company and its affiliates or any of its directors, agents, officers or employees do not make any representation or warranty, express or implied, as to or endorsement of, the accuracy or completeness of any information, statements, representations or forecasts contained in this presentation, and they do not accept any liability for any statement made in, or omitted from, this presentation.

Prospective investors should make their own independent evaluation of an investment in the Company.

Nothing in this presentation should be construed as a financial product advice, whether personal or general, for the purposes of Section 766B of the Corporations Act. This presentation consists purely of factual information and does not involve or imply a recommendation or a statement of opinion in respect of whether to buy, sell or hold a financial product. The Company has not considered any of your objectives, financial situation or needs.

This presentation and contents has been made available in confidence and may not be reproduced or disclosed to third parties or made public in any way without the express written permission of the Company.

Setting the Scene

✓ New business model disrupting the real-estate and financial services sectors, via our cloud-based digital platform. ✓ Our technology combined with our model and our distribution channels is what makes us successful – Triple digit growth. ✓ Fastest growing real estate business nationally ✓ A good idea is just a good idea – implementation of the idea is king. ✓ Model rolled out in Feb 2016 and listed on the 28th Dec 2016 at $0.02 and has traded at a premium of 40% to 50% on average. ✓ $1.1bn mortgage book – vend only $4m/ EV $5.8m (.8 times revenue at listing)

Who is Ausnet Financial Services ✓ We are disrupting the real-estate industry by being the first fully integrated financial services and real estate company. We use property transactions and/or financing events to review and service a client’s complete finance and wealth requirements. ✓ We capture clients at the start of a property and/or financing event and assist them with all the ancillary services – resulting in cross selling opportunities that increase revenue and strengthen the client relationship.

Purchase a Finance the Risk Settlement/ General Property Wealth house purchase Protection Conveyance Insurance Management Management

✓ Each of these services not only add revenue but also create value in growth of assets such as rent rolls, mortgage book, risk book and a general insurance book. ✓ By providing the complete suite of services that the client requires we build a better understanding of client needs and objectives and provide options to deliver those objectives in a hassle free and seamless manner by our team of experts in our various business units 4

The Challenge Our 2 Large Markets Face We operate in two large and fragmented industry sectors that are linked and have annual fees in excess of $7.5bn – Real Estate and Financial Services markets

The Challenge: The Key to success in these 2 markets – Distribution and Cross Selling The Question: How to get to the customer, offer them more and keep them? The Answer: Engage, empower and reward the largest referral sources for Finance in Australia –

Real Estate Agents;
The 200,000 Accountants, Tax Agents and Financial Planners

The Solution We combine financial services and real estate into a scalable single advisory cloud- based digital platform delivered direct to the client or via referral partners.

Our 2 Channels to market are: 1. Our own direct and disruptive real estate business – The Agency 2. The engagement of accountants, tax advisors and financial planners via our Value Partner Program (Stage 2)

The platform and processes provide trusted referral partners tools and services to engage and better assist their clients when it comes to finance property and wealth management.

What differentiates us – information and product choice is offered at a time that is relevant to the end client and validated via the trusted advisor. 6

Our Goals • Deliver shareholders high returns via: • increased earnings from multiple revenue lines and • value creation through the growth of multiple assets such as mortgage, risk and general insurance trail books and rent rolls. • Capture a slice of both the large and highly fragmented Australian finance and real estate sectors • Finance fees – $1.8bn pa • Real-estate fees – $5.72bn pa • Total Fees – $7.52bn pa • To expand and be regarded as the most reliable and trusted fully integrated financial services and real estate company in the Asia Pacific

Our Real Estate model is different ✓ Franchise and licensed operators can have up to 4 layers from National head office to agent level, these layers create legal & financial barriers, control issues and inability to change ✓ We have removed structural layers removed to allow greater commission to the agents who own the clients, with the company getting its required return. ✓ We provide for greater rewards – higher commissions, alternative income streams and the ability to create assets. All the benefits they would get if they ran their own business without the risk, administration and liabilities. ✓ The company gets additional revenue and asset creation. ✓ We have reorganised the revenue split and added additional revenue streams.

Our Real Estate model is different The Agency

Revenue Split Asset Ownership Additional Revenue Agent 75% – 85% 50% Yes Company 15% – 25% 50% Yes

Traditional Revenue Spilt Asset ownership Additional Revenue

Agent 40% – 60% nil token

Franchisee 30% – 40% 100% token

Franchisor 6% – 10% nil Yes but low referral rate 10

Our Real Estate model is different ✓ Our Agents are our clients ✓ We recognise them as the CEOs of their business ✓ Our job is to help them grow their business and focus on what they do best and is income producing – Helping the best do better ✓ We handle the compliance, accounts and administration – non income producing activities ✓ We assist in marketing and database management – each agent adds 2000 – 2500 contacts

Our view is that in the end brands and technology doesn’t sell homes on there own people do When it comes to most people’s largest asset they want to deal with a person they can trust

What differentiates us from our competitors in Real Estate?

Traditional real estate Real estate / fin tech competition • Corporatised, moving away • Only a tech provider from franchise model • Essentially a Tech Service only • Removed unnecessary layers • Greater flexibility • No Distribution channels • Our Agents are our clients • Require large marketing budgets • Greater rewards for all participants • Recruit anyone • Technology provides greater • We are recruiting the best efficiencies Agents to deliver the results with set minimum sales track records and referral KPIs

Not reliant on just the real estate market Multiple revenue verticals and assets 12

East Coast Expansion – Top Level Option • Rapidly expanding east coast operations through a Licence Agreement with and an Option to acquire Top Level Real Estate Pty Ltd. • Top Level is the fastest growing eastern seaboard real estate business. • 2 large acquisitions in the eastern suburbs – 23 sales agents, 3700 property managements • Top Level has rights to use The Agency brand and intellectual property on the East Coast. • Ausnet will retain an Option to acquire Top Level within the next 12 months. • Since February 2017 Top Level Real Estate, operating under licence as ‘The Agency’, has sold 33 properties, valued at approx. $106.7M, and secured 60 agents (with acquisition) 13

Top Level Acquisition Tranche 1 Tranche 2 Tranche 3 Ordinary Shares Performance Performance Shares Shares Approx. total 366 300 300 number of Ausnet Shares (m)

Timing Upon settlement of Upon finalisation Upon Finalisation acquisition of Top of of 2019 accounts Level 2018 accounts

Performance Hurdles (weighting) (50%) – EBIT $7M $10M (30%) – Gross $70M $80M Commission Income

(20%) – Total Sales 85 100 Agents

The acquisitions will deliver 23 sales agents, as of March this will total over 60. On target to have approximately 80 sales agents by June 30 Number of sales agents is the main sensitivity factor in the model 14

So what have we achieved

Organic Growth – Western Australia ✓Financial YTD March ‘The Agency’ WA sold a total of 246 properties worth approx. $162.1m, 4th highest sale office for April ✓Yr. on Yr. Agency Sales revenues increase 330% to $3.31m. ✓Yr. on Yr. Group revenues to March up 148% to $7.9m. ✓Yr. on Yr. number of Settlements up 480% ✓Yr. on Yr. increase of dollar value of properties sold up 371% ✓Referral rates to Settlement Agency, Mortgage brokering is over 100% of budget and from Mortgage Broking to financial planning and general insurance is over 100% as well.

Group Results Number of Settlements Settlement Value Listings Total for year 307 99 $75.9M 2015/16

Q1 2016 100 65 $44.2M Q2 2016 159 75 $53.9M Q3 2017 193 106 $64.0M

Total year to 452 246 $162.1M date

Since February 2017 Top Level Real Estate, operating under licence as ‘The Agency’, has sold 33 properties, valued at approx. $106.7m, and secured 57 agents.

Number of Settlements Settlement Value Listings Accumulative (2 47 33 $106.7M months Feb to Mar)

Acquisition Growth BEAUFORT REALTY ✓Ausnet recently acquired market leading inner city Western Australian real estate agency Beaufort Realty, ✓Beaufort Realty acquisition which settled in early April will have : • 432 properties under management with revenues of approximately $950,000 • Approximately 100 sales delivering $1m of sales revenues

Achievements To Date Combined WA and NSW In the last 12 months, we invested and created a disruptive and integrated business that efficiently delivers a large range of relevant services to clients.

Group Results 9 months to March 17 ✓Sold 279 properties valued at $269 million (approx. $5.2m in commissions) ✓377 Listings currently on the market totalling $292.7 million ✓Over 100 Sales Agents in WA and NSW

Acquisition model

FY18 Revenue $99M EBIT $13M EBIT Margin % 13%

Acquisitions (other than Top Level) $10M – Revenue contribution $7.2M – EBIT contribution $2.3M Total Dilutive Shares 1.4B Indicative Share Price (based on 10xEBIT) $0.09

Short Term Objectives 30 June 2018

As announced in transaction target of $7m EBITDA
Growth of sales agents to 150 plus
Expansion of The Agency on East Coast – Qld and Vic.
A rent roll of over 4000 properties
Acquisitions and Mergers
Value Partner Program launch in WA
Growth of mortgage book
National roll out of Value Partner Program

Corporate snapshot ASX code: AU1

Market capitalisation: $15 million* (fully diluted $22.4m)

Top shareholders Finsure Holdings 7.33% Coast Equity 5.15% SEMC 2 3.63% Ruth Paneth + Jacqueline Bierenkrant 2.33% Earl BG Pty Ltd 2.14%

39.11% of stock held by top 20 10.90% of stock held by the Directors * As at 12.5.17

Appendixes

Our Business strategy 1 We target property investors 2 To drive clients direct and via referral partners to use our platform and aggregated 3 … to cross-sell and better serve clients… building an upfront and recurring trail fees business model & SMEs… businesses/services SME 30% s Clients Direct Housing Referral 5% Partners

Industry Ausnet X sell X sell …of which 50% use Empower the referral Our digital cloud-based Our platform platform aggregates Ausnet is acknowledged as the brokers for financing partners – agents, manages and requirements – total many products & most productive broker in accountants and distributes clients potential $1.8b providers. It includes Australia – leveraging client trust, financial planners to to experts in our fees pa validate client “sticky” tools, providing choice & convenience marketing and rewards business units decisions

Over 10,000 clients
WA focused integrated
$1.1b Loans under
30+ own brokers/referral partners, 200+ products &

Current Financial and wealth management services from Banks, Insurance and wealth providers management services • $6.2m revenues pa

National focus and reach with future fee for service and/or
Increase clients,
Increase brokers, real estate agents and referral partners subscription to increase loans and assets and provide a finance & wealth management platform revenues, assets Future under management with marketing and data analytics and profit

Source: RBA, ABS, Team Analysis 2016, The Advisor 2015 23

Our Board All with Public Company Experience Paul Niardone – Managing Director Philip Re – Chairman Previously Executive Director and founder Chartered Accountant, Chartered Secretary and a of Professional Public Relations (WA), the Member of the Institute of Company Directors. In largest PR and communications firm in the recent years he has been involved as a Director State until he sold the business to WPP. and Company Secretary for a number of public Experience in marketing and strategic companies involving transactions in mining planning for clients in both Government exploration and production and the renewable and the private sector and over 10 years energy industry. experience with public companies.

Adam Davey – Non Executive Ross Cotton – Non Executive Director Director Ross currently has a corporate consulting Adam is Director, Private Clients and business, Regency Corporate, which specialises Institutional at Patersons Securities. in re-capitalisations, registered training His expertise spans over 25 years and organisations, early stage venture capital and includes capital raising (both private asset acquisition and divestments. As a and public), mergers and acquisitions, corporate adviser, has been working with both ASX listings, asset sales and purchases, public and private companies on strategy, transaction due diligence and director financing, acquisitions and corporate re- duties. structuring across the technology, industrial and resource sectors for over five years. John Kolenda – Non Executive Director John is the co-founder and Managing Director of Finsure Group, one of Australia’s fastest growing retail finance brokerages, writing over $1 Billion in new mortgages every month across 850 brokers. He formed the Loan Market Group with Ray White and before that worked as the General Manager of Sales & Distribution of Aussie Home Loans, where he was responsible for the sales performance of over 700 mortgage advisors.

Executive and Sales Team – The Agency Matt Lahood – CEO More than 25 years in real estate sales; 2,000+ property sales worth over $2bn. Previously Director of Sales for McGrath Real Estate, responsible for market entry strategies and management of 22 company owned offices and more than 250 people.

Steven Chen – Director of Projects Over 20 years’ experience in real estate sales delivering over 3,000 properties worth in excess of A$2.5bn.Ranked 16 in the top 100 agents of 2016 by REB. Previously Head of Projects for McGrath Real Estate where he was responsible for a team of eight Associate Directors and over 50 agents and support staff across Sydney, Brisbane and Gold Coast..

Maria Carlino – Director of Property Management Over 27 years of real estate experience in key markets incl. Sydney, Brisbane and the Gold Coast. Previous senior roles at RUN Property, Ray White and McGrath Real Estate where she was responsible for the management and growth strategies of the rental portfolio and team across all company owned offices..

Thomas McGlynn – Director of Sales and Chief Auctioneer Experienced and award winning real estate professional across sales, auctioneering and management. Involved in over 5000 auctions Australia-wide. Previously General Manager of Sales in QLD for McGrath Estate Agents. Other roles include Queensland Head Auctioneer for McGrath Estate Agents and performance coach.

Ben Collier – Property Partner Has worked in real estate sales since 1993, specialising in Sydney’s Eastern Suburbs. Ranked 15 in the top 100 agents of 2016 by REB and Number 1 sales agent for McGrath Real Estate Agents for 2015 and 2016. In the past 12 months has been responsible for 72 property sales worth $365m.

Shad Hassen – Property Partner In excess of 20 years’ real estate sales experience; specialises in Sydney’s Inner West. Recognised as the Number 1 agent in the Inner West – previously McGrath’s leading Inner West agent. Consistently placed in the top 1% of agents in Australia. Achieved the highest number of sales in Australia for FY05, 07, 08 and 09.

Contact Us Head Office Ausnet MD – Paul Niardone 254 Scarborough Beach Road M: 0412 470 241 Doubleview WA 6018 P: 08 9204 7955 P: 08 9204 7955 E: paul@ausnetrealestate.com.au F: 08 9204 7956