Announcement PDF 1 February 2024 Q2 FY24 Business Update Raiz Invest – Growing your Wealth Level 11, 2 Bulletin Place, Sydney NSW 2000 Announcement authorised by the Board of Directors Important notice and disclaimer This presentation has been prepared by Raiz Invest Limited (ACN 615 510 177) (RAIZ). References in this presentation to RAIZ include its group of companies and trusts. This presentation is subject to the conditions outlined below. Your receipt or viewing of the Presentation evidences your acceptance of those conditions and that you agree to be bound by them. This presentation is provided to recipients for information purposes and should be read in that context. The information in this presentation is in a summary form, does not purport to be complete, is not investment or financial product advice and is not intended to be relied upon as advice to investors or other persons or to be used as the basis for making an investment decision. 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As such, undue reliance should not be placed on any forward-looking statement and RAIZ assumes no obligation to update such information. Past performance is not necessarily a guide to or a reliable indicator of future performance. Nothing contained in this presentation nor any information made available to you is, or can be relied upon as, a promise, representation, warranty or guarantee, whether as to the past, present or future. This presentation is not a prospectus, product disclosure statement or any other disclosure document under Australian law or any other law. It does not constitute financial product advice or an offer or invitation to subscribe for or purchase any Shares or an offer for subscription or purchase of any Shares nor is it a solicitation to engage in or refrain from engaging in any acquisition of Shares or other associated derivatives transaction nor will anything contained in it form the basis of any offer, contract or commitment. 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Such financial information has not been prepared in accordance with disclosure requirements of applicable accounting standards and other mandatory reporting requirements in Australia. All references to dollars, cents or $ in this presentation are to AUD currency, unless otherwise stated. 2 Australia's market-leading WealthTech Raiz at a glance: n Raiz allows customers to invest from as little as $5, into a diversified portfolios of assets including: o ETFs o Bitcoin o Australian residential property o Selected ASX listed stocks o Provides personal financial management tools including “round-ups” n Raiz offers nine portfolios ranging from conservative to aggressive, as well as: o Emerald portfolio (socially responsible investment theme) o Sapphire portfolio (Bitcoin) o Property portfolio (Australian residential property) o Raiz Plus portfolio (customised, allowing selected ASX listed) n Formerly a joint venture with Acorns US, launched in Australia in 2016 and listed on the ASX in June 2018 (ASX:RZI) n Focus on core Australian operations, with record Australian Active Customers and FUM as at 30th Jan 2024: o 3 299,620 Active Customers (up by 6,519 since 31 Dec 2023) and over $1.24b in FUM (up $27m since 31 Dec 2023). Our digital investment products unlock financial freedom Comprehensive investment product suite continues to evolve to suit the needs and requests of our customers Raiz Invest n Raiz Invest users choose to invest in a range of portfolios at varying risk levels n Ability to invest spare change automatically through roundups, recurring investments, and lump sums 4 Raiz Plus n Raiz Plus (launched August 2023) provides customers with the ability to customise their portfolios n Customers have a choice from our standard portfolios, selected ASX listed stocks, ETFs, the Raiz Residential Property Fund, and Bitcoin Raiz Invest Super n n n Raiz Invest Super includes employer super guarantee contributions and automated recurring voluntary contributions Ability to onboard customers’ SMSFs Supports property investment – the only super fund to offer exposure to Australian residential property investment Raiz Rewards n Raiz Rewards is a loyalty program which allows users to accelerate their Raiz accounts & Super balances through purchases made with partnership brands Raiz Kids n Raiz Kids is a simple way to save and invest small amounts regularly for children and dependents who are under the age of 18 n Dependents can have direct access to their own investment portfolio with their parent or guardian’s permission Refined strategy driving revenue growth and positive operating cash flow Q2 FY24 Highlights • Group revenue in Q2 FY24 up 6.0% QOQ to $5.47m • Australian (AU) revenue in Q2 FY24 up 6.7% QOQ to $5.24m • Annualised ARPU up 21% to $69 in 1H FY24 compared to FY23 • Minimal churn: AU Active Customers down 1% QOQ • Product innovation, increased FUM: 327k portfolios, 5.8% increase in AU FUM QOQ to over $1.24b • The ‘Raiz Your Game’ campaign launched Dec 23 with Seven West Media • Positive operating cash flow of $856k in Q2 FY24, a 198% improvement QOQ • On the path to positive EBITDA Q2 FY24 Net cash from/(used in) operating activities $000 856 287 (229) (84) (372) (799) Mar 22 5 (2,238) Jun 22 (2,315) Sep 22 Dec 22 Mar 23 Jun 23 Sep 23 Dec 23 Focus on core Australian business with improved metrics Key financial metrics show solid platform for growth FUM (A$m) Active Customers (#) 299,620 1,214 Australia 1,034 Annualised Average Revenue Per User (A$) 1,241 69 1,036 293,101 59 57 FY22 FY23 45 291,205 287,167 Dec 21 6 * As at 30 January 2024 Dec 22 Dec 23 Jan 24* Dec 21 Dec 22 Dec 23 Jan 24* FY21 HY24 Our revenue is independent of market performance ~80% of revenue not impacted by market performance Sources of Revenue Maintenance Fee 63% Netting 3% Bid/Offer spread captured where an acquisition or disposal of ETF units does not require an on-market transaction Advertising 13% Over 1,300 rewards partners pay to advertise on the Raiz platform, emails and mobile push messaging in Australia 7 * Unaudited Group Revenue for H1 FY24 was $10.6m Global A$17.5m* FY23 Raiz Micro Investing Platform Revenue A monthly subscription fee of A$4.50 per month for Standard Portfolios and A$5.50 for Raiz Plus Account Fee 21% A percentage fee per annum is charged on account balances Our product innovation continues to unlock financial freedom Continuous product development and innovation from customer feedback Product Launch: Plus n In August 2023 Raiz announced the new product release of Plus o Standard portfolios: $4.50 (was $3.50) per month for account balances less than $20,000 and 0.275% p.a. for account balances over $20,000 n Plus provides customers with the ability to add selected ASX stocks to portfolios for a bespoke investing experience o Sapphire portfolio: $4.50 (was $3.50) per month and 0.275% p.a. o Plus portfolios: $5.50 (Custom was $4.50) per month for account balances less than $25,000 and 0.275% p.a. for account balances over $25,000 o Property portfolios: remained unchanged ($4.50 per month and 0.275% p.a) n 8 Pricing Structure This enhanced functionality empowers Raiz users to build fully personalised portfolios including ASX listed stocks alongside existing ETFs, bitcoin and Aussie residential property Marketing Strategy – Seven West Media partnership Building awareness and our reputation as a leading wealth management platform High Quality Creative combined with High Impact, High Reach Schedule • • • 9 Alignment with credible talent and Australia’s most trusted news brands Commercial Segments and Innovation Data, ad tech and personalisation at scale, The ‘Raiz Your Game’ campaign is live, running from December 2023 in the Cricket and moving to AFL/AFLW until September 2024. Early signs the integrated brand awareness campaign is performing well with record new Active Customers in Jan 2024 and success in re-engaging lapsed customers. Seven West Media contra spend is a non-cash expense to be utilised during calendar year 2024. Drive Awareness, Trust and Credibility Engage all first-time investors, inactive & lapsed customers with the power of Seven #1 MORNING SHOW 851K DAILY REACH #1 NATIONAL NEWS PROGRAM #1 WINTER SPORT #1 SUMMER SPORT 4.13M 12m WEEKLY REACH SEASON REACH 14M SEAON REACH 5M SEASON REACH A large and growing addressable market Favourable market dynamics support long term growth in retail investing and superannuation in Australia Investing Superannuation 26.3m § Raiz has a reinvigorated super offering, following Superestate merger with one super product § The Superannuation industry in Australia currently holds ~A$3.4tn in AUM § Growth is supported by Australia’s Superannuation Guarantee, requiring compulsory contributions of 11.0% (FY24), rising to 12% by FY26 § Raiz capabilities creates opportunities to unlock early millennials as well as Gen Z and older in accumulation mode 20.2m A$6.1tn (Total Super in ~10 years) Raiz is a market leader with first-time investors. A recent ASX study found a subset of non-investors who intend to invest in next 12 months of 1.33 million1 Australian population Adult population 10.2m A$3.4tn (Total Super today) 7.7m Australian investors Investors holding listed investments Raiz Super FUM 1.3m Online investors 0.3m Raiz Australia Active Customers A$0.23bn (today) Raiz currently has <1bp of the A$15tn Australian Wealth Market2 11 Source: ABS, ASX (ASX Australian Investor Study 2023), Investment Trends (2023 1H Online Investing Report), IBISworld, Apple App Store (Accessed August 2022). (1) ASX Australian Investor Study 2023. (2) Credit Suisse Global Wealth Databook 2022. Strategy to maximise Lifetime Customer Value Raiz’s product suite maintains engagement as its customers travel through the wealth journey 1 Distribution of Customers Balances 12,000 Kids Gen Z Millennial Gen X Boomers + 10% 14% 51% 20% 5% 11,000 Build the pipeline through Raiz Kids – attract early, engage parents and brand awareness 10,000 2 9,000 8,000 Market leading product for first time investors 7,000 6,000 5,000 4,000 3 3,000 High lifetime value with brand loyalty and trust 2,000 1,000 0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54 56 58 60 62 64 66 68 70 72 74 76 78 80 82 84 86 88 90 Adults (Female) 12 Source: Company Information Adults (Male) Kids (Male and F emale) Raiz has a comprehensive product offering for retail investors Products are designed to follow retail investors through their life cycle Outside of Commsec Pocket which is a universally recognised in Australia, Raiz has the highest Awareness and App store rating out of key competitors 50.0% Awareness 40.0% 30.0% Round Up Investments a a Recurring Investments a a a a Lump sum investments a 17% a a a Superannuation a a First Home Super Saver a Stock Trading Property Fund a 39% a Kids Account a App Store Ranking(1) 27 a a a a a a a a a a Raiz is ranked 27th on the iOS app store’s Finance chart a a 44% a 129 a a a a a a a a a a a a 131 114 >200 a 51 107 65 71 >200 20.0% 10.0% 1 2 3 App Store Rating 7 ____________________ Source: Latest company disclosure. Apple App Store as at 31 January 2024. YouGov research for awareness data. Investment Trends. (1) ‘Finance’ Category App Store Rankings >200 are not specified in App Store rankings. 4 5 Bubble size based on App Store ‘Finance’ Ranking Raiz Company History From US JV in 2015 to nearly 300k Active Customers in early 2024 Jun 18: ASX listing raising A$15m Jun 20: Launch in Malaysia Apr 21: A$10m raise & Superestate acquisition Feb 23: Announce SEA restructure Dec 18: Indonesia license Nov 19: A$6m capital raise Jun 20: AU business net cash flow positive Nov 21: SWM investment Apr 22: Launch Raiz Kids Australia Aug 23: Launch Raiz Plus 2017 2018 2019 2020 2021 2022 2023 $43m $148m $254m $445m $606m $1,034m $1,036m 65,278 133,896 175,345 211,657 237,229 291,205 287,167 Mar 15: JV Acorns Grow Inc. Feb 16: Launch in Australia 2015 2016 Australian FUM (A$) Australian Active Customers 14 Apr 19: Launch in Indonesia $1,213m (Dec 2023) 293,101 (Dec 2023) Consistent and disciplined delivery of our strategy Focusing on continued growth, customer experience leading to a strong path to profitability New products and services to improve engagement Grow revenue per customer Grow active customers Great customer service & UX Maintain best-in-class infrastructure 15 Focus on core Australian business Continue low cost of customer acquisition Increase ‘Lifetime Value of Customers’ Maintain disciplined focus on costs Executing on the strategy Detailed planning supported by KPIs Customer Growth & Experience § Grow core Australian business to over 500k Active Customers in the next three years § Brand awareness with Seven West partnership, to drive attraction, conversion and retention § Deepen trust and brand loyalty with exceptional customer service § Strong and robust systems and infrastructure for the financial security of our customers § Maintain a strong customer retention with new products and new channels § Defined product roadmap based on customer feedback Operating leverage § Australian unit generating positive operating cashflow to support ongoing investment § Cross-sell, increase re-engagement rate and develop partnerships to grow Super product Sustainable Organisation § Maintain efficient use of capital and prudent cost control strategy, focus on TSR and EPS § Focus on talent retention and developing capabilities of our high performing team Maintain our brand & reputation Exceptional products & service 16 Raiz Investment Highlights Award-winning investment platform, delivering on growth and innovation 1 #1 Leading Platform Highly engaging digital investment platform unlocking financial freedom and driving customer growth, with scalable business model 2 Focus on Lifetime Value Experienced marketing team, new channel opportunities and strong customer retention delivering revenue growth 3 Exceptional Customer Experience Strong and well credentialed management team with extensive financial markets and technology experience Continued focus on Innovation 4 5 6 17 Robust product pipeline with significant cross sell opportunity to capitalise on data rich product suite Best-in-class Technology Proprietary full-stack technology platform enabling growth and providing customer data analytics On the path to positive EBITDA Operating cash flow positive with strong discipline on cost management information Share price, capital structure, and substantial shareholders Share Price & Volume A$0.8 A$0.7 0.7m 0.6m Capital structure (30-Jan-24) Shares on issue 93.4m Share price A$0.375 12-month range A$0.6 0.5m A$0.30 - A$0.55 Market capitalisation A$35m Net cash & term deposits 31 December 2023 A$8.6m A$0.5 0.4m A$0.4 0.3m A$0.3 0.2m A$0.2 A$0.1 - 18 Source: FactSet 0.1m 0.0m Substantial shareholders (30-Jan-24) Shares (%) 1 UBS NOMINEES PTY LTD 7.4m 8.0% 2 HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED 6.6m 7.0% 3 SEVEN WEST MEDIA INVESTMENTS PTY LTD 6.2m 6.6% 4 ACORNS GROW INCORPORATED 5.2m 5.6% Top 20 shareholders 54.6m 58.4% Other investors 38.8m 41.6% Total 93.4m 100.0% Investor and media enquiries: Brendan Malone / Katie Mackenzie ir@raizinvest.com.au 19 ASX:RZI