8COMMON LIMITED — Investor Presentation 2019

Apr 30, 2019

Investor Update May 2019

(ASX:8CO)

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This presentation has been produced by 8common Limited and may contain forward looking statements that are based on Management’s current expectations, beliefs and assumptions and are subject to a number of risks and uncertainties. Forward looking statements contained in this presentation are not guarantees of future performance and involve risks and uncertainties that are difficult to predict, and are based upon assumptions as to future events that may not prove accurate. Therefore, the actual outcomes and results may differ from those described.

In any forward-looking statement in which 8common Limited expresses an expectation or belief such expectation or belief is expressed in good faith and believed to have a reasonable basis, but there can be no assurance that the statement or expectation or belief will result or be achieved or accomplished. We are not under any duty to update forward-looking statements unless required to by law.

This investor presentation is not an offer of securities, and does not form part of any prospectus that has or may be issued. 8common Limited and its directors, employees, associates, affiliates and agents, make no:

a. Representations or warranties, expressed or implied, in relationship to this presentation or the accuracy, reliability or completeness of any information in it or the performance of 8common Limited; and

b. Accept no responsibility for the accuracy or completeness of this presentation.

Disclaimer

This presentation is intended to provide information only and does not constitute or form an offer of securities or a solicitation or invitation to buy or apply for securities, nor it or any part of it form the basis of, or be relied upon in any connection with any contracts or commitment whatsoever. The information in this presentation does not take into account the objectives, financial situation or particular needs of any person. Nothing in this presentation constitutes investment, legal, tax or other advice.

This presentation does not, nor does it purport to, contain all the information prospective investors in 8common Limited would desire or require in reaching an investment decision. To the maximum extent permitted by law, 8common Limited, their officers, directors, employees, associates, affiliates or agents, nor any other person accepts any liability for any loss, claim, damages, costs or expenses of any nature (whether foreseeable or not), including, without limitation, any liability arising from fault or negligence on the part of any of them or any other person, for any loss arising from the use of this presentation or its content or otherwise arising in connection with it or any errors or omissions in it.

The distribution of this presentation in jurisdictions outside of Australia may be restricted by law. This presentation has not been filed, lodged, registered or approved in any jurisdiction and recipients of this presentation should keep themselves informed of and comply with and observe all applicable legal and regulatory requirements. In Australia, this presentation is made only to sophisticated or professional investors under the Corporations Act, but will be released on the ASX.

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8common

8common Limited (ASX:8CO)

• 2 complementary B2B software businesses:

• Expense8: leading cloud-based platform for employee expense management

• PayHERO: payment gateway providing merchant account services

• Leading position with 117 Government Agencies (Federal, NSW and NT) and large corporate clients including Woolworths, Mitre10, Amcor and Rabobank;

8common

• Operating Cash flow positive in the March 2019 quarter (unaudited management acounts):

• +87% YoY in cash receipts to $1.066m;

• +72% YoY in revenue to $955K;

• Profitable, EBITDA and Cash-flow Positive in March 2019

• Integrating PayHERO and Expense8 creates a procurement approval, payment .

• gateway and expense reconciliation capability

• Comparable companies have been acquired at revenue multiples of 6-15x.

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8common

Leadership in Government (117 Agencies)

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69 Agencies

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13 Agencies

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Agencies (Whole of Government)

Target Client: Large and Sophisticated

Blue-Chip corporate customer base

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8common

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We help clients … manage transactions

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… via our platforms

to reconcile with payroll & financial ERP

8common

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Card Procurement Cash Taxi Approval Cash Fleet Car Expenses Payments Payments Allowance Petrol Advance

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Corporate Card PayHERO Travel Application & Payment Maintenance Gateway

Expense Management

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8common Limited (ASX:8CO)

expense8: revenue model

Recent contract wins – 2 Federal Gov contracts worth $642K

Transaction volumes to increase as organisations moves away from Purchase Orders and increase Card issuance

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1 Off
Implementation
1 Off Monthly Ad-hoc
Margin
Implementation Per Transaction Change Monthly
(1-off) (Monthly) Requests Recurring
$50,000 – $0.25 – (annual spend) Subscription
$500,000 $12.00 $5,000 - and Transaction
$50,000 Fees
Subscription
(Monthly)
$500 – Ad-Hoc
$2,500 Services Fee
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8common

expense8: ARPU has grown 35% YoY

FY2018 $1.6m revenue from 120,000 users in SaaS revenue. ARPU of $13.33 FY2019 ARPU runrate of $18 with 111,000 users (slight consolidation of cards with some clients) Upselling 111,000 users across all platforms at ARPU of $42 could deliver $4.6m

, Expense8 on track to 100-200% uplift in Existing Customer ARPU

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Expense8
Platforms
@
Expense Credit Card Corporate 100% Wallet
Management Application and Travel Capture Rate
Maintenance
111,000 Users 111,000 Users 111,000 Users 111,000 Users
$18 ARPU [1 ] $12 ARPU [2 ] $12 ARPU [3 ] $42 ARPU
$2m Revenue $1.3m Revenue $1.3m Revenue $4.6m Revenue
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1 Actual based on unaudited Q3 FY19 Expense8 June 2018 SaaS Revenue and Actual User Count

2 Company estimates based on client transaction patters

3 Actual based on FY18 Corporate Travel revenue from existing customer base

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8common

expense8: usage growth

4x growth between 2016 2016 to 2019 in $ in $ value of expenses managed $2.5B in in

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$700,000,000
between 2016 2016
$600,000,000
$2.5Bn
to 2019 in $ in $
transaction value
value of
$500,000,000
managed through
the platform since
expenses
2003
$400,000,000
managed
$300,000,000
$2.5B in in
$200,000,000
expenses
managed since
$100,000,000
2003, $607m in
the last 12 $- -
2013 2014 2015 2016 2017 2018 2019
months $ Expenses $126,064,155 $139,547,741 $125,942,623 $150,531,071 $251,659,878 $466,236,095 $607,019,464
# Expenses 724,762 771,051 718,350 788,472 1,142,959 2,028,257 2,585,559
$ Expenses # Expenses
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3,000,000
2,500,000
2,000,000
1,500,000
1,000,000
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500,000

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*Numbers are based on on Trailing Twelve Months (i.e. 2019 numbers are from April 2018 to March 2019)

8common Limited (ASX:8CO)

8common

expense8: cash flow positive

Quarterly Cash Receipts Q3 FY2019 vs. FY2018 +87%

Q3 FY2019 cash receipts +87% to $1.066m YoY

$1,200,000.00

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$1,000,000.00
$800,000.00
FY2018
$600,000.00
FY2019
$400,000.00
$200,000.00
$0.00
Q1 Q2 Q3 Q4
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$1,000,000.00

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8common

8common Limited (ASX:8CO)

expense8: strong recurring and transactional revenue

Q3 SaaS Revenue +8.4% YoY

• § Seasonally lower quarter (billing for transactions from Dec – Feb)

• § Q4 is expected to be stronger

§ Growth fuelled by new client onboarding

Quarterly SaaS Revenue Q3 FY2018 vs. Q13FY2019 +8.4%

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$600,000
$500,000
$400,000
$300,000
$200,000
$100,000
$0
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8common

8common Limited (ASX:8CO)

expense8: in high growth mode

Q3 Revenue +72%

2 Federal Government agency contracts valued at $642K expected to contribute to Q4 FY2019 revenue

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Quarterly Revenue
Q3 FY2019 vs. Q3 FY2018 +72%
$1,200,000
$1,000,000
$800,000
$600,000 FY2018
FY2019
$400,000
$200,000
$0
Q1 Q2 Q3 Q4
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8common Limited (ASX:8CO)

8common

expense8: scaling with revenue growth

$3,000,000

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H1 Revenue $2,500,000
grew
25% YoY to $1.5m
$2,000,000
FY2018 full year
$2.6m $1,500,000
$1,000,000
FY2019 YTD till
Mar 2019 was
$2.4m (unaudited) $500,000
$0
FY16 FY17 FY18 YTD FY19 (March)
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8common

8common Limited (ASX:8CO)

• : ready to Scale

• expense8

• 1. Develop industry leading platform

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1. Implement and operate to target market

2. Scale distribution via partners and cross sell PayHERO

3. § Grow Expense8 government coverage

   • § Increase ARPU, recurring and transaction fees

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• § Leverage BlueChip Corporate Client Base of Expense8 to cross-sell PAYHERO payment gateway solution (% clip of transaction volume)

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8common

8common Limited (ASX:8CO)

PayHERO Payments Opportunity

• Processing Federal, NSW and Northern Territory Government procurement payments is a $80b total addressable market based on the FY2017 reported annual procurement spend.

• .

• Industry GDV to revenue average of between 30-100bps

• Annual Transaction Revenue opportunity of between

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$80b
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30-100b s p

• $24-80m .

Federal, NSW & NT Government Annual Procurement Budget and RBA Benchmark Transaction Fee

Source:

• • • • • • • • • • • • https://www.afr.com/technology/nsw government looks to microsoft artificial intelligence to cut 10m costs 20180607 h112nu - - - - https://www.finance.gov.au/procurement/statistics on commonwealth purchasing contracts/ - - - - - - - - https://nt.gov.au/industry/government/sell my goods and services to government/buy local plan 8com ~~mon~~

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8common Limited (ASX:8CO)

Precedent Competitor Transactions

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Revenue at Time of Reported
Revenue
Company Acquisition Acquisition Amount
multiple
(Estimated A$m) (Reported A$m)
700 8,300 11.9x
32 262 8.2x
7 100 14.8x
8common 3.3 13.6 4.1x
Trailing Twelve Months revenue for 8CO
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8common

Corporate Information

Capital Structure

Shareholdings

Share price (30-Apr-19)	A$0.099	Directors	26.9%
Shares on issue	136,130,136	Top 20	77.2%
Undiluted Market Capitalisation Cash (31-Mar-19)	A$13.5m A$0.4m	Q3 FY2019 Highlights Cash Receipts	(4C) $1.1m
Shares in Cloudaron Bhd Bloomberg (CLOUD:MK)	A$3.1m	Net Operating Cash In-Flow	$0.06m
Listed Options at $0.035 (expiry 20 Feb 2020)	38,262,763	Net Cash In-Flow	$0.05m

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8common

8common Limited (ASX:8CO)

FY2019 4C performance

FY2019 4C Performance	FY2019 4C Performance
	Q1	Q2	Q3
	FY2019	FY2019	FY2019
	($)	($)	($)
Cash Receipts	751,000	808,000	1,066,000
Cash Expenses	1,263,000	1,016,000	1,006,000
Operating cash inflow
(outflow)	(287,000)	(209,000)	60,000
Cash inflow (outflow) from
investing activities	45,000	-	(15,000)
Cash inflow (outflow) from
financing activities	(87,000)	333,000	-
Cash inflow (outflow)	(329,000)	124,000	45,000
Cash at end of period	205,000	329,000	374,000
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8common

1H FY19 Performance

H1 FY2019 Financials	H1 FY 2019	H1 FY 2018
	($)	($)*
Total Income	1,712,505	1,850,988
Continuing operating Income	1,487,505	1,194,036
EBITDA (excl significant items)	(212,901)	31,752
EBITDA (includes Realtors8)	(487,461)	154,269
Loss for the period	(798,045)	(234,367)
Operating cashflow	(583,390)	(290,186)
Cash and cash equivalents	329,032	255,639

*FY 2018 Financials include Realtors8 which has since been fully divested

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8common

Nic Lim Executive Chairman 8common Limited e: nic@8common.com

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8common

8common Limited (ASX:8CO)