8COMMON LIMITED — AGM Information 2020

Nov 26, 2020

8common

ASX Release

27 November 2020

2020 Annual General Meeting Chairman’s Address

On behalf of the Board of 8common Limited it is a pleasure to address you, our shareholders, at our FY2020 Annual General Meeting.

The 2020 financial year has seen 8common grow significantly as a company as we continued to execute on our strategic plan of providing enterprise grade financial transaction processing solutions for government entities and large enterprise businesses. During the year we continued to win new clients across the government and public sector space, processed over $616 million of transactions, increased our revenues and delivered two cashflow positive quarters.

The strength and standing of our flagship Expense8 product was reflected in the Company being globally recognised as a Market Leader by International Data Corporation (IDC) in its 2019 Market Scape Enterprise Travel & Expense Management Report. The Board and Management remain positively excited about the opportunities for 8CO in FY21 and beyond.

Major Customer Wins

During FY20, the company generated over $2.5 million in contract wins as we continued to see growing demand for our solutions and services. Post year end, we secured an additional six new Federal Government entities with five via the Service Delivery Office of the Department of Finance with a total contract value of $545,000. These signings will bring the total tally of Federal and State government agencies to 153 and over 102,000 Government users. Implementation of these agencies has occurred in 1H FY21.

Product Innovation driving growth

8common continues to advance the development and commercial rollout of the CardHero branded reloadable card program. CardHero has extensive applications in the not-for-profit, education and government sectors where accurate and prompt expense distribution is the key challenge we are addressing. The CardHero and CardHero+ platforms have two distinctive use cases and clients in mind:

• CardHero is an integrated card payment and expense management solution targeted at government and large enterprise clients

• CardHero+ is an integrated fund disbursement and spend management solution which can be used by not for profits and educational institutions to disburse funding and reconcile transactions.

Post the end of the financial year the Company announced it entered in to a 3-year agreement with card solutions provider EML Payments Limited (ASX:EML) to create a CardHero branded reloadable card program. Under the agreement, 8common will be able to issue CardHero branded pre-paid Mastercard’s in partnership with EML.

The CardHero products will deliver robust and integrated solutions to support enterprise operating requirements and large transaction volumes. Our success in delivering travel and expense management solutions to government and large enterprises with Expense8 ensures we have the underlying platform and support for the launch of the CardHero platform. Demand for corporate virtual and physical card payments are expected to continue to rise in tandem with consumer payments. Our experience and position as a preferred supplier within the government and large corporate space has ensured we are well placed to deliver the CardHero platform and capture the growth opportunity

8common

Our People

Our management team have navigated the challenges that FY20 presented whilst providing the same level of service to our clients. We are incredibly proud of all staff members in how they have stepped up and innovated over this period to continue to provide the high level of service for our clients.

Strong financial position

Subsequent to the end of the financial year the Company completed a placement of 17,307,692 shares at an issue price of A$0.13 per share to raise $2.25m before costs. The cash investment via the placement complements the $1.9m in net cash the company had at 30 September 2020. The company is well funded to fast track the roll out of both our expense8 and CardHero solutions of FY21.

Outlook

The Company continues to build on the established contracts within the State and Federal Government, delivering predictable and secure revenue. 8CO has a significant pipeline of potential revenue growth via the implementation of our technology across further Federal Government entities via the shared service agencies agreement. Corporate engagement continues with good responses received for both CardHero and expense8 platforms. The strong implementation revenue generated in 1QFY21 will contribute to recurring SaaS revenue over the course of FY21.

The company remains well positioned to leverage the demand for corporate virtual and physical card payments via the CardHero and CardHero+ products. The Company continues to work with an existing client on the implementation and roll out of CardHero+ and we anticipate making further announcements during the year.

Our positive cash flow generation, robust balance sheet and strong pipeline of Expense8 and CardHero growth opportunities heralds an exciting year of growth for 8common in FY21.

I will now hand over to our CEO, Andrew Bond to provide a more detailed overview of our platform, the growing market opportunity, and our financial performance of the year.

Thank you.

This release has been approved for release by the Board of 8common Limited

Further information

CorporateNic Limnic@8common.comExecutive Chairman	InvestorsCraig Sainsburycraig.sainsbury@marketeye.com.au

About 8common Limited

8common (ASX:8CO) solutions deliver enterprise grade financial transaction processing for government entities and large enterprise businesses. Its flagship Expense8 platform is a leading pureplay provider of end to end travel expense management software, card application and management. The innovative software solutions improve organisation, productivity, incorporate company organisational policies and expense auditing to reduce fraud. Expense8 by 8common was named a Major Player in the IDC MarketScape: Worldwide SaaS and Cloud-Enabled Travel and Expense Management Applications 2019 Vendor Assessment.

8common

Its new products being PayHero (procurement payment gateway) and CardHero (pre-paid card fund distribution) deliver closed loop solutions to support regulated, large network and high-volume requirements. 8common’s specialises in large enterprise and government segments.

Its growing client base of more than 140,000 platform users include enterprise customers Woolworths, Broadcast Australia, Amcor, and over 150 state and federal government entities. For more information, visit https://www.8common.com/