ASX:AU1 · 20 November 2017

Investor Presentation

The fastest growing Real-estate Group in Australia

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.

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Setting the scene Our progress to date has been very strong

New Business Model Our Technology Fast Growth Proven Model Model Roll Out disrupting the real-estate via our cloud-based digital Fastest growing real estate In both Western Australia Model rolled out in February and financial services sectors platform, combined with our business nationally (depressed market) and New 2016 and listed on ASX by reducing structural layers model and our distribution South Wales (Boom market) 28th December 2016 and rewarding all staff channels makes us successful – Triple digit growth

Highlights 44.7% Group Revenue Breakdown (WA) Group Annual Results June 2017

Growth in group revenue for the year Insurance Services 2% June 2016 June 2017 $6.63m $9.59m • The WA real estate market has contracted 9% in sales turn over and Mortgage 9% in value of the average home and 10 Services 31% deemed by most experts as the worst 9 real estate market in the country. 8

Selective Recruited Sales Agents 7 Real Estate (minimum requirement plus $200k 6 58% commissions previous year in WA) 5 on track – 56 current (target 75 by Settlement 4 30 June 18) 9% 3
460 property managements and highly 2 respected sales team 1

0 • $1.1bn loan book Jun-16 Jun-17

Ausnet Group Revenue 4

Listings 700 Annual Comparison 600

Highlights • The Agency continued its stellar June 2016 307 500 400 300 108% growth with the three main The Agency (WA) indicators of listings, settlements June 2017 200 Growth in Listings 639 for the year and gross commissions exceeding 100 100% growth. 0 Jun-16 Jun-17

ANNUAL COMPARISON Settlements 400 5 700 350

Millions

217% June 2016 300 4.5 250 600 113 200 4 150 500 June 2017 Growth in 3.5 100 359 Settlements for 50 3 0 the year 400 Jun-16 Jun-17 2.5

300 2 Gross 5.00

Millions Commissions 4.00

267% 1.5 200 3.00 1 June 2016 2.00 100 $1.28m 0.5 1.00 Growth in June 2017 0.00 Settlements for 0 0 $4.17m the year 2014/2015 2015/2016 2016/2017

Listings # Settlements $ Settlements

Value of sales 100

Highlights 80

115% July – Sept 2016

137% $40.3m 60

The Agency (WA) July – Sept 2017 40 % increase YoY September Quarter $86.5m 20

Growth in number of sales for the year 0

July – Sept 2016 July – Sept 2017 Listings 61 145 200

104% • The Agency achieves REIWA Top Office July – Sept 2016 150 ranking in WA for month of July, 100 August and September for volume, 160 100 grabbing 3% market share in WA July – Sept 2017 % increase YoY 140 204 50 • The Agency sold 120 0 100 • 145 properties 80 • worth $86.5 million in the first Gross 2

Millions 3 months 60 Commissions

112% 2 • Have achieved 41% of last year’s 40 June 2016 revenue in first quarter 20 $830,160 1 • triple digit growth 0 % increase YoY July-Sept July-Sept June 2017 1 2016 2017 $1,762,403 0 Number of sales 6

Referral Rates for 2017 Highlights Mortgage Referral Settlement Referral Target rate of 20% or Target rate of 40% or The Agency (WA) 72 referrals 143 referrals

0 50 100 150 200 250 300 350 400 450 500

359 Total Number of Sales

Strong internal referral rates continuing well above our set target of 20% of all real-estate sales to our mortgage business and 40% to our 298 Actual Number of Referrals settlement agency. 440
Referral Rates – Real Estate industry average 5% from Sales to Finance 83% % of Sales Referred 123%

Mortgage Referrals

Settlement Referrals 21% Conversion of Referrals Notes 72%

The Agency – East Coast

Highlights As at 30th August Top Level had achieved the following numbers in only 5 months (unaudited): National Expansion Total Sales

$409m The Agency East Coast (Top Level Pty Ltd) • The Agency NSW launched March 2017 75 Agents recruited Total Commissions

$6.52m • License Agreement of 3% on revenue payable to Ausnet Group Total Settlements

27 170 • Option to purchase until January 2018

Agents confirmed not started Property Managements

3,500 8

Who is Ausnet Financial Services We are disrupting the real-estate industry by being the first fully integrated real estate and financial services 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.

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.

An additional benefit is the creation of a highly detailed and large database of clients.

Our Goals Our Targets Referral Rates – Real Estate industry average 5% from Sales to Finance

Be the fastest growing National Real-estate brand;

Continue to deliver high year on year growth; 40% of all 20% of all Sales to To be in the top 5 national Real–estate brand in 3 years; Sales to Settlement/ Finance Conveyancer Deliver shareholders high returns via profitability and asset growth; Division Division Value creation through the growth of multiple assets such as mortgage, risk and general insurance trail books and rent rolls;

Creation of a detailed national database of clients

TOTAL FEES Capture a slice of both the large Finance Real – and highly fragmented Australian finance and real Fees estate Fees $5.72bn $7.5bn estate sectors; $1.8bn pa pa pa To expand and be regarded as the most reliable and trusted fully integrated real estate and financial services company in the Asia Pacific.

The Agency Our Locations

Revenue ‘17: $9.6m Revenue ‘17: $6.52m* Sales Reps: 56 Acquisitions Revenue ‘17: $15m Staff: 40 Sales Reps: 75 Staff: 74 * (First 5 months) * Revenue numbers unaudited Combined Group Figures for 2017

Revenue $31m* Sales Reps 131 Staff 114 Total Staff 245 Property Managements Approx. 4,000

* Part year only 12

The Agency 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 to allow greater commission (rewards) to the agents who own the clients, while the company also gets 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.

The Agency Our Real Estate Model is different

The Agency * Additional referral fees include recruitment, mortgages and property managements

Revenue Split Asset Ownership Property Management Additional Revenue Referral Fees*

Agent 75% – 85% 50% Yes

Company 15% – 25% 50% Yes

Traditional

Revenue Split Asset Ownership Property Management Additional Revenue Referral Fees

Agent 40% – 60% Nil Token

Franchisor 30% – 40% 100% Token

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

The Agency 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 don’t sell homes on there own, people do When it comes to selling 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

o Corporatised, moving away from franchise model o Only a tech provider • Removed unnecessary layers • Essentially a Tech Service only • Greater flexibility o No Distribution channels o Our Agents are our clients o Require large marketing budgets o Greater rewards for all participants o Recruit anyone o Technology provides greater efficiencies o We are recruiting the best 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 16

Share Capital Structure

Numbers $AUD ($0.02) Director Valuation of Assets

Loan & Risk Book: $4.5m Existing Shares on Issue 587,793,034 $11.5m Property Managements: $2.5m

Settlement Agency: $1.0m

The Agency: $5.0m

Option on Top Level: $?.?m

Total $13.0m

Our Board

Paul Niardone Philip Re Adam Davey John Kolenda Managing Director Chairman Non Executive Director Non Executive Director

Previously Executive Director and founder Chartered Accountant, Chartered Adam is Director, Private Clients and John is the co-founder and Managing Director of Professional Public Relations (WA), the Secretary and a Member of the Institute Institutional at Patersons Securities. His of Finsure Group, one of Australia’s fastest largest PR and communications firm in the of Company Directors. In recent years he expertise spans over 25 years and includes growing retail finance brokerages, writing State until he sold the business to WPP. has been involved as a Director and capital raising (both private and public), over $1 Billion in new mortgages every Experience in marketing and strategic Company Secretary for a number of mergers and acquisitions, ASX listings, month across 850 brokers. He formed the planning for clients in both Government public companies involving transactions asset sales and purchases, transaction due Loan Market Group with Ray White and and the private sector and over 10 years in mining exploration and production diligence and director duties. before that worked as the General Manager experience with public companies. and the renewable energy industry. of Sales & Distribution of Aussie Home Loans, where he was responsible for the sales performance of over 700 mortgage advisors.

The Agency Executive Team – East Coast

Matt Lahood Steven Chen Maria Carlino Thomas McGlynn Ben Collier Shad Hassen CEO Director of Projects Director of Property Director of Sales and Property Partner Property Partner Management Chief Auctioneer More than 25 years in real estate Over 20 years’ experience in real Has worked in real estate sales In excess of 20 years’ real estate sales; 2,000+ property sales estate sales delivering over Over 27 years of real estate Experienced and award winning since 1993, specialising in sales experience; specialises in worth over $2bn. Previously 3,000 properties worth in excess experience in key markets incl. real estate professional across Sydney’s Eastern Suburbs. Sydney’s Inner West. Recognised Director of Sales for McGrath of A$2.5bn.Ranked 16 in the top Sydney, Brisbane and the Gold sales, auctioneering and Ranked 15 in the top 100 agents as the Number 1 agent in the Real Estate, responsible for 100 agents of 2016 by REB. Coast. Previous senior roles at management. Involved in over of 2016 by REB and Number 1 Inner West – previously market entry strategies and Previously Head of Projects for RUN Property, Ray White and 5000 auctions Australia-wide. sales agent for McGrath Real McGrath’s leading Inner West management of 22 company McGrath Real Estate where he McGrath Real Estate where she Previously General Manager of Estate Agents for 2015 and agent. Consistently placed in the owned offices and more than was responsible for a team of was responsible for the Sales in QLD for McGrath Estate 2016. In the past 12 months has top 1% of agents in Australia. 250 people. eight Associate Directors and management and growth Agents. Other roles include been responsible for 72 Achieved the highest number of over 50 agents and support staff strategies of the rental portfolio Queensland Head Auctioneer for property sales worth $365m. sales in Australia for FY05, 07, 08 across Sydney, Brisbane and and team across all company McGrath Estate Agents and and 09. Gold Coast.. owned offices.. performance coach.

Head Office Ausnet MD 68 Milligan Street Paul Niardone Perth WA 6000 M: 0412 470 241 P: 08 9204 7955 P: 08 9204 7955 F: 08 9204 7956 E: paul@ausnetrealestate.com.au