The deck used by UK fintech, Freetrade, in 2016

1. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
zero commission investing • professional advice
Crowdcube Summer 2016
INVESTMENT OVERVIEW
C o n t a c t :
A d a m D o d d s
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2. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
EXECUTIVE SUMMARY
• Freetrade is a mobile app for investing in the
stock market
• First zero commission online broker in Europe
– model validated in the USA
• Platform for chat-based investment advice
from professional advisors and bots
• £122bn AUM execution-only share dealing
market in the UK
• Breakeven within 3 years with 1% market
share; £15 million profit with 3% market share
• Massive potential upside from international
expansion (not included in projections)
• Seeking SEIS eligible pre-seed investment on
Crowdcube
• Team of fintech experts
I N V E S T M E N T O P P O R T U N I T Y M O B I L E - F I R S T P R O D U C T
F I N A N C I A L S N A P S H O T
£0.0m
£1.8m
£5.5m
£11.4m
£22.3m
£30.1m
(£1.1m)
(£2.7m)
(£0.6m)
£3.0m
£9.6m
£15.3m
22k
53k
109k
202k
264k
-
50
100
150
200
250
300
(£5.0)
-
£5.0
£10.0
£15.0
£20.0
£25.0
£30.0
£35.0
Total revenue Net Profit (Pre-tax) Client accounts
Pre-launch Y1 Y2 Y3 Y4 Y5
WWW.FREETRADE.IO

3. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
PROBLEM
Millennials can’t access the stock market directly due to high retail commissions
Millennials don’t have sufficient assets to get professional financial advice
Traditional advisor fee structures are opaque and expensive
Traditional channels for getting professional financial advice don’t work for millennials

4. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
SOLUTION
ü Zero commission investing in shares and ETFs
ü A network of independent advisors and bots that provide services through the app
ü A transparent menu of advisor fees with social reviews of advisors
A mobile-first investment platform providing:

5. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
MARKET
• 92% of people with
investable assets have no
brokerage account
• 16 million people in the
‘advice gap’
• c. 22k IFAs
• FCA authorisation is a
passport to the 500
million EU market
• Lower market penetration
than the UK or USA but
similar levels of wealth
• Globally scalable
• Less than 1% of the world
owns shares directly
• Less competitive markets
have not yet been
disrupted
Source: ComPeer/Mintel, FCA, Euromonitor

6. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
PRODUCT
Invest for free… …and get advice

7. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
REVENUE MODEL
1 • Zero cost for self directed investors
• Monthly membership fee for premium
services
Retail Investors
2 • Monthly membership fee
• Additional fees for premium services
• Share of advisor fees earned though platform
3 • Interest earned on client cash balances
• FX margin on foreign currency transactions
• Additional standard industry revenue streams
Professional
Advisors
Treasury
We want clients to grow their portfolio, not churn their portfolio
We want advisors to connect with clients better
We can cover most of our costs with treasury income only

8. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
COMPETITION
Expensive
Free
Full service
Robo service
No service
freetrade
Source: Freetradeanalysis

9. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
NOW IS THE RIGHT TIME
ü No mobile-first or zero commission stock broker in Europe yet
ü No social platform for professional financial advice yet
ü Trading costs for executing brokers are low and declining e.g. Blockchain
ü Strong regulatory tailwinds e.g. FCA set to change how advice is regulated

10. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
TEAM
- Lab49, Engineering
Practice Head
- - ICLP Digital Marketing
- Two previous startups
- UCL, Computer Science
- KPMG Corporate Finance
- KPMG Italy, M&A
- LUISS University, Finance
- Fudan University,
International Business
- KPMG Corporate Finance
- KPMG Audit
- McGill University, Finance
- Chartered Accountant
- CFA Charterholder
A D A M D O D D S A N D R E M O H A M E D D A V I D E F I O R A N E LL I
P r o d u c t T e c h G r o w t h

11. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
APPENDICES
A Financial Highlights
B Market Landscape
C Product Details

12. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
A FINANCIAL HIGHLIGHTS

13. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
FINANCIAL PROJECTIONS (UK ONLY)
A P P E N D I X A
Source: Freetradeanalysis
Pre-launch Y1 Y2 Y3 Y4 Y5
Client accounts (’000) 22 53 109 202 264
AUM £219 £574 £1,284 £2,578 £3,611
Account and services revenue - £1.2 £3.5 £7.3 £13.5 £17.8
Treasury revenue - £0.4 £1.1 £2.3 £4.5 £5.5
Advisor fee split revenue £0.2 £0.9 £1.8 £4.2 £6.8
Total revenue - £1.8 £5.5 £11.4 £22.3 £30.1
Platform overheads (£1.5) (£2.8) (£4.6) (£7.8) (£10.1)
Marketing (£0.1) (£1.0) (£1.1) (£1.4) (£2.2) (£1.8)
Staff costs (£0.7) (£1.6) (£1.9) (£2.0) (£2.1) (£2.1)
Other costs (£0.3) (£0.4) (£0.4) (£0.5) (£0.7) (£0.8)
Operating costs (£1.1) (£4.5) (£6.1) (£8.4) (£12.7) (£14.8)
Net Profit (Pre-tax) (£1.1) (£2.7) (£0.6) £3.0 £9.6 £15.3
£ millions

14. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
Y1 Y2 Y3 Y4 Y5
Margins
Net Profit (Pre-tax) margin% neg neg 26% 43% 51% 50%
ROE neg neg n.m. 42% 40% 40%
FTE 26 31 33 34 35
Ratio
Totalrevenue per account £84 £104 £105 £111 £114 £386
AUM per account £10,000 £10,835 £11,797 £12,785 £13,700 £75,000
Cost to AUM ratio 1.86% 0.92% 0.59% 0.47% 0.39% 0.35%
Marketing cost peraccount £46 £21 £12 £11 £7 £12
KEY PERFORMANCE INDICATORS
A P P E N D I X A
Source: Freetradeanalysis
(*) Hargreaves Lansdown 2015
Benchmark*

15. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
Number of
accounts
(’000)
Key drivers Financials
Guidelines Benchmark
Revenue
(£m)
AUM
(£m)
Hargreaves
Lansdown 2015
Hargreaves
Lansdown 2015
£368
£75,000
Revenue per account
AUM per account
Market share
ASSUMPTIONS
A P P E N D I X A
Source: Freetrade analysis
- 0.18% 0.47% 1.05% 2.11% 2.96%
- 22
53
109
202
264
Pre-launch Y1 Y2 Y3 Y4 Y5
Hargreaves
Lansdown 2015
55%
• Projected to gain 3% of the
£122bn AUM of execution-
only share dealing market
by year 5
• Does not include wealth
management sector,
organic growth of market
or international expansion
• Freemium revenue model
which generates an
average of £114 per
account within 5 years
• Assumes 0.5% treasury
return, large upside if
interest rates move
upwards
- £84 £104 £105 £111 £114
- £1.8
£5.5
£11.4
£22.3
£30.1
Pre-launch Y1 Y2 Y3 Y4 Y5
- £10,000 £10,835 £11,797 £12,785 £13,700
- £219 £574
£1,284
£2,578
£3,611
Pre-launch Y1 Y2 Y3 Y4 Y5
• Average AUM per account
£13,700 per account within
five years due to a younger
client base for Freetrade
• Average account size to
increase towards industry
average over time

16. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
Crowdcube SEIS round (£150k)
EIS-eligible seed round (£1.5m)
Series A round (£3.5m) +
N O W M O N E T I SE
M V P S C A L E
USERS
LAUNCH
Private Beta
Waitlist Early 2017
CAPITAL REQUIREMENTS
A P P E N D I X A

17. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
MARKET LANDSCAPE
B

18. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
UK STOCKBROKING INDUSTRY
E X E C U T I O N - O N L Y
S T O C K B R O K E R S
F U L L S E R V I C E
W E A L T H M A N A G E R S
T O T A L
S T O C K B R O K E R S
Revenues £532m £1,201m £1,733m
Annual change -2% +5% +3%
Pre-tax profit margin 40% 17% 24%
Assets £122bn £167bn £288bn
Annual change +7% +8% +7%
Number of client accounts 3,749,000 848,000 4,598,000
Annual change -1% +3% -
Source: ComPeer/Mintel, 2014 data
A P P E N D I X B

19. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
ONLINE BROKER COMPARISON
Investment types Shares, ETFs Shares, ETFs, OEICs,
CFDs, Spread Betting
Shares, ETFs, OEICs,
CFDs, Spread Betting
Charge per trade £0 £11.95 £11.95
Frequent trader £0 £5.95 £5.95
Platform fee (shares, ETF) £0 Transfer out fee Transfer out fee
Platform fee (funds) n.a. 0.45% per year 0.35% per year
Number of client accounts Waitlist 736,000 n.a.
Asset under management Coming soon £55.2bn n.a.
Market share by revenue Coming soon 1st – 55% 2nd – 10%
Source: ComPeer/Mintel, 2014 data; Money.co.uksharedealing accounts comparison
A P P E N D I X B

20. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
23%
30%
48%
52%
6%
7%
23%
12%
All investors Any with a share dealing or
spread betting account
Don’t know
Decrease (by selling)
Maintain at current level
Increase (by buying)
CURRENT INVESTORS WANT TO INVEST MORE…
A P P E N D I X B
Base: 787 internet usersaged 18+ who own a share dealing/spread betting accountor investmentproduct, July 2015
Source: Lightspeed GMI/Mintel
”Over the next 12 months, are you likely to increase, decrease or maintain
your current investment holdings??"

21. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
Yes, definitely
interested
4%
Yes, might be
interested
13%
Not sure if I’m
interested or not
18%
No, unlikely to be
interested
16%
No, definitely not
interested
48%
"Are you likely to open a (new) share dealing or spread betting account in
the next 12 months or so?"
…AND THERE’S INTEREST FOR NEW ACCOUNTS
A P P E N D I X B
Base: 1,940 internet usersaged 18+, July 2015
Source: Lightspeed GMI/Mintel

22. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
Freetrade solution
0% 5% 10% 15% 20% 25% 30% 35% 40%
None of the above
I expect to open an account in the next 12 months
Low interest rates makesme interested in share dealing
I like the idea of having my own share dealing account
I prefer other typesof investments
I don't have time to manage a sharedealing account
I don't know how to open an account
Investing in shares istoo complicated
Investing in shares istoo risky
I can't afford to invest in shares
”You have indicated you don’t currently have a share dealing and/or
spread betting account. Which statements about share dealing do you
agree with?"
WHY PEOPLE DON’T OWN SHARE DEALING ACCOUNTS
A P P E N D I X B
Base: 1,457 internet usersaged 18+ with investible assets, June 2014
Source: Lightspeed GMI/Mintel

23. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
£ 1 0 0
Investment End return
Buy
commission Sell
commission
1 Y E A R
+ 1 0 %
1 0 Y E A R S
End return
Investment
£ 8 4
Investment
return
£100
£216
£258
42% return lost to
compounded commissions
+ 1 0 %
CAGR
COMMISSIONS STOP MILLENNIALS FROM INVESTING
A P P E N D I X B
Source: Freetradeanalysis, assumes£11.95 dealing commissions

24. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
“Millennials tend to be underinvested… Half said they
didn’t have enough money to invest, another quarter
said they didn’t know how to. And more than half of the
millennials Facebook surveyed said they felt they had
no one to turn to for financial guidance.”
Why millennials go on holiday instead of
saving for a pension
“Advice is expensive… the costs of supplying face-to-
face advice are signifcant, meaning most firms are
unable to provide advice at a price many consumers
would consider reasonable. 69% of advisers said they
had turned away potential clients over the last 12
months.”
Financial Advice Market Review: final
report March 14, 2016
“Advice is now just for the wealthy as independent
financial advisers snub savers with less that £50,000 in
their pot. With the average pension at retirement worth
around £36,000, this means that most people are now
locked out of financial advice.”
Millions of Britons are priced out of
advice
“Tens of millions of people are unable or unwilling to
pay for full-price advice… And only 14 per cent of peope
said they would be confident planning their retirement
goals without financial advice... The biggest problem is
that nobody is making financial planning fun, simple or
engaging.”
Automation alone can’t bridge the ‘advice
gap’
By Claer Barrett, 15 March 2016
By Harvey Jones, 15 November 2015
By Aime Williams, 12 February 2016 Joint FCA and HM Treasury report, 14 March 2016
MILLENNIALS CAN’T GET PROFESSIONAL ADVICE…
A P P E N D I X B

25. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
£ 5 0 k
Investment End return
Initial fees
Ongoing
fees
1 Y E A R
+ 1 0 %
1 0 Y E A R S
End return
Investment
£ 5 2 k
Investment
return
£50K
£93k
£130k
74% return lost to
compounded fees
+ 1 0 %
CAGR
…BUT IF THEY DO THE COST IS TOO HIGH
A P P E N D I X B
Source: Freetradeanalysis, assumes2% initialcharge and ongoing combined platform, advisor and fund feesof 1.5% peryear

26. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
C PRODUCT DETAILS

27. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
ADVICE IN YOUR HANDS
üAccess professional investment
advice whenever you need it
INVESTMENT NETWORK
üBrowse profiles and see who your
friends use to find the best advisor
PERSONAL ADVISOR
üSet goals with your advisor, delegate
and then monitor performance
SIMPLE PRICING
üNo hidden fees, you only pay for the
advice you need
THE NEXT GENERATION OF INVESTING
A P P E N D I X C
FREE SHARE DEALING
üInvest in stocks and funds with zero
commissions or fees
EASY TO USE
üAn investment platform as smart as
an iPhone

28. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
BUILT ON THE LATEST TECHNOLOGY
A P P E N D I X C
P A R T N E R S
F R E E T R A D E P L A T F O R M A P I
F R E E T R A D E P L A T F O R M F R A M E W O R K
I N F R A S T R U C T U R E
A N A L Y T I C S
E X E C U T I O N
P O R T F O L I O A D V I S O R S
R E P O R T I N G
O R D E R M G M T
U S E R A C C O U N T
R E C O R D S
B A C K O F F I C E
E X E C U T I O N
G A T E W A Y
C L E A R I N G &
S E T T L E M E N T
C U S T O D Y
S E R V I C E S

29. P R I V A T E & C O N F I D E N T I A L – D O N O T D I S T R I B U T E freetrade
NOW
#EVERYONECANINVEST
WWW.FREETRADE.IO
C o n t a c t :
A d a m D o d d s
+ 4 4 7 4 9 3 0 5 0 4 1 5
a d a m @ f r e e t r a d e . i o