Market Update

Since the issuance of the Company's guidance on February 3, 2023, notable shifts in macro-economic conditions have introduced considerable headwinds and heightened uncertainty. The Company issues the following update:

• Rights Issue Completion: The Company has achieved a significant milestone with the successful conclusion of the rights issue, generating $4.6 million. This achievement stands as a vote of confidence in our accomplishments to date and the strategic path forward.
• Revised FY23 Earnings: Management has adjusted the FY23 after-tax earnings forecast to a range of A$2.90M - $3.05M, a revision from the previous estimate of $4.3M. This revised outlook should be perceived as a temporary delay in revenue recognition, rather than a permanent erosion of our financial standing.
• Cash Profit: As of March 31, 2023, the Company reports a Cash Profit of A$2.90M.
• Private Credit Loan Book: Finexia's management of the Private Credit loan book has seen substantial growth, reaching $123M as of April 30, 2023, marking a 77% increase since the commencement of FY23.
• Loan Book Projection: The loan book is anticipated to reach $185M by September 30, 2023, subject to the implementation of a wholesale funding facility and the finalization of loans in the Childcare Income Fund, which have received approval and acceptance from borrowers.
• Dividend Commitment: The Directors affirm their commitment to distributing 30-35% of retained earnings to shareholders at the conclusion of this financial period.

Strategic Priorities:

• Wholesale Funding Solution: Prioritizing the establishment of a competitive and flexible wholesale funding solution.
• Private Credit Book and Childcare Income Fund Growth: Focusing on accelerating the growth of the Private Credit book and the Childcare Income Fund.
• Investment in People, Technology, and Systems: Continued investment in human resources, technology, and systems to support a sustainable profit trajectory.
• Sales and Distribution Capability Expansion: A significant investment to expand the Company's Sales and Distribution capability.