AEROMETREX LIMITED — Interim / Quarterly Report 2021

Feb 24, 2021

AEROMETREX LIMITED (ASX: AMX) 1H21 Results 25 February 2021

Mark Deuter, Managing Director Chris Mahar, Chief Financial Officer

Aerometrex Limited - Half year results to 31 December 2020

1

Company Overview

==> picture [515 x 402] intentionally omitted <==

----- Start of picture text -----

Revenue is generated from Projects and Subscription Services (DaaS) across
Aerial Photography
MetroMap 3D Modelling LiDAR
and Mapping
Imagery and LiDAR data
Growing subscription- Great data
based revenue quality
Accuracy Great reputation
Expanding geographically
3D modelling capability Great customer service
Acquisition
High standards of
Innovation
customer service
New products
People Great technology
Increase sales and
marketing Data archive Great team
STRATEGY STRENGTHS CORE FUNDAMENTALS
----- End of picture text -----

Built on the foundation of image quality and accuracy

Aerometrex Limited - Half year results to 31 December 2020

2

Industries serviced

& major use cases

Industries serviced (including but not limited to):

MetroMap

Examples of Major Use Cases:

• Accurate and frequent spatial information to assist local councils in urban planning, asset management and community engagement

• 2D and 3D spatial mapping to plan, build and maintain smarter infrastructure

• Integrate accurate base map imagery with other utility databases to aid operations, engineering design, planning and decision support

• Ensure faster, more accurate valuations based on detailed risk assessment of assets

• Showcase property developments by combining the power of visual imagery and data attributes

• Visualise, plan and optimise telecommunication networks using updated 2D & 3D datasets

• Monitor environmental change and disaster management right from planning through to response & recovery

• Architecture, Engineering & Construction

• Energy & Utilities

• Environment & Disaster Management • Events, Media & Entertainment

3D

Examples of Major Use Cases:

• Provide base 3D models for planning of digital twins and smart city projects

• Improve planning and monitoring of major transport & infrastructure projects from concept to final design using 3D data

• Provide three-dimensional context to critical engineering & construction projects

• Support urban designers, architects, real estate specialists by allowing three-dimensional assessment of new developments

• 3D digitisation to support heritage building conservation as well as larger tourism initiatives

• Virtual films and futuristic gaming with realworld environments using 3D

• Simulation of events e.g. flood in digital twin

• Security management

• Forestry & Agriculture

• Property & Real Estate

• Government • Telecommunications • Insurance & Financial Services • Transport, Logistics & Traffic Management

• Natural Resources, Mining & Exploration

==> picture [176 x 176] intentionally omitted <==

----- Start of picture text -----

LiDAR
----- End of picture text -----

Aerial Photography

Examples of Major Use Cases:

Examples of Major Use Cases:

• Large infrastructure projects where engineers and project managers require high accuracy and specific capture dates

• Agricultural irrigation analysis

• Engineering design across projects spanning road, rail, oil & gas pipelines, renewable energy (wind & solar)

• Monitoring progress of widespread events, or documenting damage; ideal for insurance sector, government emergency departments, coroners

• Environmental mapping including flood modelling, catchment analysis, bushfire fuel load mapping

• Asset management of critical development areas for use by councils, urban planners

• Canopy growth and volume analysis across forestry and urban vegetation

• Dynamic change assessment along coastlines for factors such as erosion, monitoring seagrass

• Stockpile analysis, windrow analysis across mining and exploration sites

• Volumetric calculations and site management for mining and exploration firms

• Vegetation encroachment mapping along powerlines

• Individual use cases such as mining for planning, infrastructure and asset management

• Derived products to be transitioned to MetroMap platform

Aerometrex Limited - Half year results to 31 December 2020

3

1H21 focus on continued growth investment

Automatic LiDAR derived building footprints Canberra, ACT Australia

Aerometrex Limited - Half year results to 31 December 2020

4

1H21

Highlights

==> picture [32 x 32] intentionally omitted <==

MetroMap

• Subscription platform

• 727% growth in subscription revenue to $1.5m on same time last year

• 504% growth in ARR on same time last year

3D

• World leading 2cm+ high resolution 3D capabilities

• Continuing to build US operations and looking forward to revenue contribution in 2H21

Research & Development

• Research & development initiatives contributing to product development in environmental applications of

• bushfire fuel load mapping

• urban vegetation

• permeable v impermeable surfaces

==> picture [32 x 33] intentionally omitted <==

Financial Position

• $16.3m in available cash

• Undrawn debt facilities of $4.1m

• Machine learning

• Data archive being used in data training

• Workflow improvements

Aerometrex Limited - Half year results to 31 December 2020

5

Strong growth in ARR, up 99% on June 2020

==> picture [341 x 190] intentionally omitted <==

----- Start of picture text -----

Annual Recurring Revenue (ARR)
Calculation: Monthly Revenue x12
3,500
3,000 3,314
2,770
2,500
+99%
2,000
1,500 1,663
1,000
856
500
548
357
0
Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020
AUD ($'000)
----- End of picture text -----

• Strategic objective is to focus on MetroMap subscription growth which continues to build momentum. This is reflected in the revenue recognised, growth in ARR and deferred revenue (contract liabilities).

• Focus on MetroMap delivered strong growth in subscription revenue of $1.3m which represents subscription growth 727% on the same time last year which has been offset by a decline in project revenue of $2.8m or 28%.

• Investing for growth via acquisition of datasets in MetroMap, people and capture assets to take advantage of future opportunities.

• Business continued to generate strong cash flow from operations of $2.3m (2019: $1.6m) which was reinvested as part of the growth strategy.

==> picture [387 x 354] intentionally omitted <==

----- Start of picture text -----

HY 1H21 1H20 Change Change
Value $’000 $’000 $’000 %
MetroMap - Subscription 1,506 182 1,324 727.5%
3D 711 1,695 (984) -58.1%
LiDAR 3,645 4,224 (579) -13.7%
Photo Contracting 2,394 3,420 (1,026) -30.0%
MetroMap - On Demand 318 576 (258) -44.8%
Project Revenue 7,068 9,915 (2,847) -28.7%
Total operating revenue 8,574 10,097 (1,523) -15.1%
EBITDA (142) 1,481 (1,623) -109.6%
EBITDA (normalised) (142) 2,222 (2,364) -106.4%
Cashflow from operating activities 2,339 1,654 685 41.4%
Cashflow used in investing activities (8,097) (5,509) (2,588) 47.0%
Free cashflow (5,758) (3,855) (1,903) 49.4%
Financial Position
Cash on Hand 16,280 22,056 (5,776) -26.2%
Contract Liabilities
1,962 157 1,805 1149.7%
(Deferred income / Income in Advance)
----- End of picture text -----

• Strong balance sheet supports growth strategy, with $16.3m cash and undrawn debt facilities of $4.1m.

• COVID-19 created some logistical issues due to border closure and state shutdowns creating some timing issues with project completions but lack of commercial air traffic provided unprecedented access to air space over capital cities.

Aerometrex Limited - Half year results to 31 December 2020

6

Investing for growth

Research & Development

• Development of new technology able to determine in three dimensions, the exact fuel load densities in any bushfire prone area based on the company’s LiDAR mapping capabilities.

• Development of environmental applications in urban forest management, permeable v impermeable detection providing insights from data.

• Use of data archive in machine learning activities including downstream applications for customers.

• Continued development and improvement of AI and machine learning to drive efficiency gains and automation of processes without compromising on the quality or the accuracy of the data.

Staff Numbers

==> picture [240 x 33] intentionally omitted <==

----- Start of picture text -----

Dec 20 Dec 19
# #
----- End of picture text -----

Corporate/Admin	17	14
Air Operations	26	21
Production	48	39
Sales & Marketing
Business Development	15	11
Marketing	4	1
Customer Support	3	1
Total - Australia	113	87
US operations	5	0
Total	118	87

CAPEX

==> picture [266 x 35] intentionally omitted <==

----- Start of picture text -----

1H21 1H20
$'000 $'000
----- End of picture text -----

Acquisition of aircraft	1,610	1,796
Acquisition / upgrade of sensors	2,475	1,592
IT system upgrades & storage	906	282
Other fxed assets	-	87
Acquisition of datasets for MetroMap	2,163	1,008
Other intangibles	50	8
Deposits - Capital WIP	302	701
Total (GST exclusive)	7,506	5,474

Systems & Processes

• Back end process improvements to streamline corporate systems.

• Development and implementation of processing workflow and software systems (Pixel Cruncher) for MetroCam aerial imagery leading to improved orthophoto production speeds of up to 800%.

• Building capacity ahead of the revenue curve and investing into training and development.

• Investment to create capacity for growth.

• Reducing risk by ensuring role succession and planning has been undertaken.

• Investment into capital assets skewed to H1 reflecting lead time from order to delivery and intention for assets to be available for Australian summer flying conditions.

• Acquisition of aircraft and sensors was generally committed to in FY20 reflected in Capital WIP and Accounts Payable at June 2020.

Aerometrex Limited - Half year results to 31 December 2020

7

Increase in 1H21 operating cash flows supporting growth investment

3D Model Adelaide, SA Australia

Aerometrex Limited - Half year results to 31 December 2020

8

Exceptional growth in recurring revenue from MetroMap subscriptions

Revenue Mix

==> picture [403 x 399] intentionally omitted <==

----- Start of picture text -----

100.0% 1.8% 100.0% 1.8%
5.7%
17.6% 17.6%
80.0% 80.0% 3.7%
33.9%
60.0% 60.0% 27.9%
40.0% 40.0%
41.8%
20.0% 20.0%
42.5%
98.2% 82.4% 16.8% 8.3%
0.0% 0.0%
1H20 1H21 1H20 1H21
Project Revenue MetroMap - MetroMap - Subscription Photo Contracting 3D
Subscription
MetroMap - On Demand LiDAR
Operating Revenue
FY 1H 2H
25.0
20.0
10.0
15.0
9.2
10.0
10.1
8.6
5.0 7.0
0.0
FY18 FY19 FY20 FY21
Revenue ($ millions)
----- End of picture text -----

==> picture [386 x 159] intentionally omitted <==

----- Start of picture text -----

Revenue 1H21 1H20 Change Change
Value $’000 $’000 $’000 %
MetroMap - Subscription 1,506 182 1,324 727.5%
3D 711 1,695 (984) -58.1%
LiDAR 3,645 4,224 (579) -13.7%
Photo Contracting 2,394 3,420 (1,026) -30.0%
MetroMap - On Demand 318 576 (258) -44.8%
Project Revenue 7,068 9,915 (2,847) -28.7%
Total operating revenue 8,574 10,097 (1,523) -15.1%
----- End of picture text -----

Aerometrex Limited - Half year results to 31 December 2020

9

1H EBITDA reflects growth investments

==> picture [371 x 168] intentionally omitted <==

----- Start of picture text -----

EBITDA (normalised)
FY 1H 2H
6.0
5.0
3.7
4.0 2.4
4.1
3.0
2.0
2.2
1.0 1.5 1.4 -0.1
0.0
-0.1
-1.0
FY17 FY18 FY19 FY20 FY21
$ millions
EBITDA (Normalised)
----- End of picture text -----

• Decline in EBITDA driven by investment into the business ahead of the revenue curve.

• Investment made in the recruitment of staff predominantly in revenue contributing positions across Sales & Marketing, customer support, production and air operations.

• Accounting recognition (non cash flow) of options issued to staff in FY20 with an expense of $840k recognised in the current period in accordance with vesting period. Options were issued to align staff interests with those of shareholders. Options exercisable at $1.25 once vesting conditions met (time based).

• Increased spending on branding to drive awareness of available alternatives when considering aerial imagery particularly in the MetroMap subscription space.

• Australian operations continue to deliver positive EBITDA offset by the

• investment into the US operations (still in start up phase).

==> picture [386 x 136] intentionally omitted <==

----- Start of picture text -----

HY 1H21 1H20 Change Change
Value $’000 $’000 $’000 %
EBITDA (142) 1,481 (1,623) -109.6%
EBITDA (normalised) (142) 2,222 (2,364) -106.4%
Broken down as:
Australia 433 1,481
US (575) -
(142) 1,481
----- End of picture text -----

Aerometrex Limited - Half year results to 31 December 2020

10

Strong growth in MetroMap Subscriptions

==> picture [661 x 439] intentionally omitted <==

----- Start of picture text -----

Key Products: 2D aerial imagery subscription plans, 3D off-the-shelf city models and subscriptions,
H1 Highlights Near-infrared imagery (NiR), Classified LiDAR point cloud datasets, AI-derived value-added datasets
MetroMap Subscription Revenue
Revenue up $1.3m (+727%)
1H 2H
1,600
Growth in ARR to $3.3m 1,400 1,506
(+504%) 1,200 Addressable Market Size
1,000 +727% ~$80 million + per annum in Australia
800
Increased marketing for brand recognition 600400200 242 523 Actual $2.8m (Sept 2020)Dec 20, $3.3mSep 20, $2.8mJun 20, $1.6m + 99%
0 102 182 since Jun 20
FY19 FY20 FY21
Spookfish integration
Annual Recurring Revenue (ARR)
Expanded high resolution Calculation: Monthly Revenue x12
Target 50%
capture program 3,500 Target, ($40m)
$40m (50%)
3,000 2,770 3,314
2,500
Pixel Cruncher
2,000 +99%
1,500 1,663
1,000
856
500
548
357
0
Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020
AUD ($'000)
AUD ($'000)
----- End of picture text -----

==> picture [134 x 176] intentionally omitted <==

----- Start of picture text -----

FY21+ Priorities
Continuing to grow ARR
Scaling capture program
including production processing
Increased brand awareness
----- End of picture text -----

Deployment of MetroCam #2

Continued development of MetroMap platform offering

Aerometrex Limited - Half year results to 31 December 2020

11

3D

H1 Highlights

Key Products: 3D Mesh Models of built up and natural environment, 3D Semantic Level of Detail (LOD) Models, Artificial intelligence and machine learning enabled value-added products such as Classified 3D mesh and feature capture, 3D visualisation products for audio-visual, gaming, and virtual or augmented reality

FY21+ Priorities

3D Revenue

Capture of datasets in US

US staff training completed remotely

==> picture [290 x 141] intentionally omitted <==

----- Start of picture text -----

FY 1H 2H
4,000
3,500
3,000 1,666
2,500
2,000
1,088
1,500 1,695
1,505
1,000 1,325
500 654 864 711
0
2016 2017 2018 2019 2020 2021
AUD ($'000)
----- End of picture text -----

Australia

US

• Decline in revenue of $984k or 58% driven by project nature of work. Significant portion of the December 2019 revenue was derived from the Western Sydney Digital Twin project and Pau project (France) which have not been replaced in the current year.

• Bespoke product of high quality (2cm + street level imagery)

• product taken to the US market.

• Still in start up phase.

• Competitor analysis indicates limited competition for AMX

• 3D product offering while there are a number of established players in the market covering the other product lines.

• Isolating these two projects from revenue would see

• revenue decline by 5%.

• Office opened in Denver, Colorado in February 2020 and did

• not deliver any revenue to December 2020 however first sale announced to market in February 2021.

• Volume of projects down on PCP with no international

• projects due to COVID-19.

• Lower average fee reflects size of jobs in the current

• operating environment.

• City of Denver (CO) central business district (downtown),

• Centennial (CO), Orlando (FL) & Miami (FL) captured. These were done as spec captures to create US datasets as examples, refine capture process and for training & development purposes.

• COVID-19 saw a timing shift or contraction of domestic

• market demand for large 3D projects in the period.

US 3D revenue

International projects

Realising growth opportunities in the US

Launch of MetroMap 3D store

Aerometrex Limited - Half year results to 31 December 2020

12

Aerial Photography & Mapping

H1 Highlights

Completion of QLD Government $1m program of works

Completion of WA Landgate program of works

3cm GSD QLD hail damage survey

Key Products: 2D ortho-imagery with the ability to customize resolution and accuracy, Digital elevation data such as digital terrain models (DTM) and digital surface models (DSM), Stereo-derived datasets

==> picture [306 x 170] intentionally omitted <==

----- Start of picture text -----

Aerial Photography and Mapping Revenue
FY 1H 2H
9,000
8,000
7,963
7,000
6,000 6,584 6,491 2,986
2,692
5,000
4,000
3,000 3,506 3,420
2,000 2,462
1,000
0
2016 2017 2018 2019 2020 2021
AUD ($'000)
----- End of picture text -----

FY21+ Priorities

Focus towards MetroMap DaaS model (where appropriate)

Continue to meet client specific project needs

Efficient utilisation of existing assets

• Decline in revenue of $1m or 30% driven by the smaller nature of projects in the current period to December

• 2020 compared to last year.

• Number of jobs that were completed or achieved invoicing milestones in accordance with contract terms largely

• unchanged during the reporting periods. December 2020 down 2 jobs.

• Some larger projects currently delayed (not cancelled) due to COVID-19 uncertainty. Evidenced by some tenders

• being put on hold prior to being awarded.

*FY20 revenue unless otherwise stated

Aerometrex Limited - Half year results to 31 December 2020

13

LiDAR

H1 Highlights

Major upgrades to all 4 new sensors

Bushfire fuel load modelling

Key Products: LiDAR 3D Point Clouds, Ground Surface Products, Vegetation Surface Products, Vector Line Products, LiDAR-derived 2D datasets

==> picture [505 x 213] intentionally omitted <==

----- Start of picture text -----

Addressable Market Size
LiDAR Revenue ~$50 million + per annum in Australia
FY 1H 2H
10,000
9,000
Actual
8,000 4,699
$8.9m
7,000
6,000 4,294
5,000
4,000
4,224
3,000 3,135 3,645 Target 50%
2,000 2,174 ($25m)
1,000 1,495 1,679
0
2016 2017 2018 2019 2020 2021
AUD ($'000)
----- End of picture text -----

FY21+ Priorities

Potential opportunity to convert to subscription model (MetroMap)

AI and R&D opportunities

Expanding use cases and market awareness around LiDAR applications

• LiDAR contributed 42% of operating revenue

• Decline in revenue of 14% on prior year driven by smaller projects resulting in lower average revenue per job rather than a reduction in volume of work with completed projects up 32%

• Investing for growth through acquisition of fourth sensor plus upgrade of existing sensors to latest technology occurred during the reporting period

• Re-occurring revenue through longer term contracts for monthly captures e.g. mine sites

*FY20 revenue unless otherwise stated

Aerometrex Limited - Half year results to 31 December 2020

14

Growth foundations in place

National Arboretum Canberra, ACT Australia

Aerometrex Limited - Half year results to 31 December 2020

15

Growth initiatives

==> picture [32 x 33] intentionally omitted <==

MetroMap

• Continuing to build momentum in subscription revenue

• Creation of 3D store

==> picture [185 x 98] intentionally omitted <==

----- Start of picture text -----

3D
----- End of picture text -----

• Continue discussions with number of large global companies in the US in respect of their 3D opportunities

Research & Development

• Leverage opportunities in AI and machine learning

• Enhance customer offering through LiDAR derived products hosted via the MetroMap platform

Aerometrex Limited - Half year results to 31 December 2020

16

Priorities to drive growth in FY21

==> picture [549 x 401] intentionally omitted <==

----- Start of picture text -----

Navigating
Ongoing
Development current & social
Consolidation
analysis of M&A
of overseas environment of
opportunities of Spookfish
revenue streams COVID-19
acquisition into
in 3D - US and
MetroMap
Europe
GROWTH
Continued
development Investment into
and expansion R&D focusing
of MetroMap to on analytics, AI,
Continue to
increase value Increasing brand machine learning,
invest prudently
proposition for awareness derived data
to drive
customers through to leverage products, camera
scalability for
3D, near-infrared opportunities technology
future growth
LiDAR
----- End of picture text -----

Aerometrex Limited - Half year results to 31 December 2020

17

Investment highlights

Underlying cash Market DaaS subscription engine opportunities model

from aerial imagery and LiDAR project work

Total Addressable Market (TAM)

==> picture [43 x 43] intentionally omitted <==

Focus on development and growth of MetroMap

==> picture [38 x 38] intentionally omitted <==

World leaders in Progressive, 3D modelling innovative, using massive multi- experienced ray photogrammetry management and staff technology

==> picture [38 x 32] intentionally omitted <==

==> picture [34 x 34] intentionally omitted <==

Gilt-edged reputation for data quality, accuracy and reliability

==> picture [43 x 44] intentionally omitted <==

Aerometrex Limited - Half year results to 31 December 2020

18

Appendix 1 Financial Information

Poitrel Mine Site Coppabella, QLD Australia

Aerometrex Limited - Half year results to 31 December 2020

19

Income Statement

==> picture [394 x 284] intentionally omitted <==

----- Start of picture text -----

Year Dec 2020 Dec 2019 Change Change
Value Notes $’000 $’000 $’000 %
Revenue from ordinary activities 8,574 10,097 (1,523) -15.1%
Other income 179 108 71 65.7%
Total operating revenue 8,753 10,205 (1,452) -14.2%
Aircraft and project - project and processing
(1,814) (3,682) 1,868 -50.7%
costs
Employee benefits expense (4,377) (2,800) (1,577) 56.3%
Share based payments (840) (69) (771) 1117.4%
Other expenses (1,864) (2,173) 309 -14.2%
EBITDA (142) 1,481 (1,623) -109.6%
Depreciation of property, plant and equipment (1,290) (947) (343) 36.2%
Amortisation of intangible assets (2,013) (513) (1,500) 292.4%
Finance costs (43) (313) 270 -86.3%
Finance income 56 47 9 19.1%
Loss before income tax (3,432) (245) (3,187) 1300.8%
Income tax expense 544 8 536 6700.0%
Loss for the year after income tax (2,888) (237) (2,651) 1118.6%
----- End of picture text -----

==> picture [393 x 110] intentionally omitted <==

----- Start of picture text -----

Year Dec 2020 Dec 2019 Change Change
Value Notes $’000 $’000 $’000 %
EBITDA (142) 1,481 (1,623) -109.6%
Items not in the ordinary course of operations
IPO and Capital Raising Costs expensed - 543 (543) -100.0%
Refinance costs - 198 (198) -100.0%
Normalised EBITDA (142) 2,222 (741) -106.4%
----- End of picture text -----

Aerometrex Limited - Half year results to 31 December 2020

20

Balance Sheet

Year Value Assets Current	Dec 2020 Jun 2020 Notes $’000 $’000	Dec 2020 Jun 2020 Notes $’000 $’000
Cash and cash equivalents	7 16,280 22,239
Trade and other receivables	2,738 2,512
Contract Assets	925	563
Other Assets	484	459
Total current assets Non-current	20,427	25,773
Property, plant and equipment	8 16,889 16,364
Intangibles	9 6,806	6,572
Deferred tax assets	2,733	1,418
Total non-current assets Total assets	26,428 46,855	24,354 50,127
Liabilities
Current
Trade and other payables	1,714	4,267
Contract liabilities	1,962	1,334
Current tax liabilities	-	-
Other Financial liabilities	335	400
Employee benefts	1,524	1,295
Other Liabilities	750	750
Total current liabilities	6,285	8,046

==> picture [390 x 270] intentionally omitted <==

----- Start of picture text -----

Year Dec 2020 Jun 2020
Value Notes $’000 $’000
Non-current
Other Financial liabilities 2,547 2,731
Employee benefits 204 157
Deferred tax liabilities 2,337 1,588
Total non-current liabilities 5,088 4,476
Total liabilities 11,373 12,522
Net assets 35,482 37,605
Equity
Equity attributable to owners of the parent:
Share capital 10 32,892 32,892
Share based payment reserve 1,327 487
Other reserves (73) -
Retained earnings 919 3,829
Non-controlling interest 417 397
Total equity 35,482 37,605
----- End of picture text -----

Aerometrex Limited - Half year results to 31 December 2020

21

Cash Flows

==> picture [386 x 32] intentionally omitted <==

----- Start of picture text -----

Year Dec 2020 Dec 2019
Value Notes $’000 $’000
----- End of picture text -----

Operating activities
Receipts from customers		10,012	9,924
Payments to suppliers and employees		(7,566)	(8,044)
Income taxes paid		(121)	(136)
Interest received		56	47
Interest paid		(43)	(137)
Net cash generated from operating activities		2,339	1,654
Investing activities
Purchase of property, plant and equipment		(5,490)	(3,792)
Deposits paid for property, plant and equipment		(302)	(701)
Purchase of other intangible assets		(2,305)	(1,016)
Net cash generated used in investing activities		(8,097)	(5,509)
Financing activities
Proceeds from borrowings		-	7,633
Proceeds from issue of shares - IPO		-	25,000
Proceeds from issue of convertible notes		-	1,500
IPO costs incurred		-	(2,204)
Repayment of borrowings		(201)	(11,128)
Net cash generated from fnancing activities		(201)	20,801
Net increase/(decrease) in cash and cash equivalents		(5,959)	16,946
Cash and cash equivalents at the beginning of the period		22,239	5,110
Cash and cash equivalents at the end of the period	7	16,280	22,056

Aerometrex Limited - Half year results to 31 December 2020

22

Segment Information

==> picture [498 x 433] intentionally omitted <==

----- Start of picture text -----

Region Australia US Total Australia US Total
Year Dec 2020 Dec 2020 Dec 2020 Dec 2019 Dec 2019 Dec 2019
Value Notes $’000 $’000 $’000 $’000 $’000 $’000
- -
Revenue from ordinary activities 8,574 8,574 10,097 10,097
Other income 171 8 179 108 - 108
Total operating revenue 8,745 8 8,753 10,205 - 10,205
-
Aircraft and project - project and processing costs (1,809) (5) (1,814) (3,682) (3,682)
-
Employee benefits expense (4,052) (325) (4,377) (2,800) (2,800)
- -
Share based payments (840) (840) (69) (69)
-
Other expenses (1,611) (253) (1,864) (2,173) (2,173)
EBITDA 433 (575) (142) 1,481 - 1,481
-
Depreciation of property, plant and equipment (1,283) (7) (1,290) (947) (947)
- -
Amortisation of intangible assets (2,013) (2,013) (513) (513)
Finance costs (43) - (43) (313) - (313)
Finance income 56 - 56 47 - 47
Loss before income tax (2,850) (582) (3,432) (245) - (245)
Income tax expense 399 145 544 8 - 8
-
Loss for the year after income tax (2,451) (437) (2,888) (237) (237)
Region Australia US Total Australia US Total
Dec 2020 Dec 2020 Dec 2020 Dec 2019 Dec 2019 Dec 2019
Value Notes $’000 $’000 $’000 $’000 $’000 $’000
EBITDA 433 (575) 1,008 1,481 - 1,481
Items not in the ordinary course of operations
IPO and Capital Raising Costs expensed - - - 543 - 543
Refinance costs - - - 198 - 198
Normalised EBITDA 433 (575) 1,008 2,222 - 2,222
----- End of picture text -----

Geographical Segments:

• Australian operations contributed an EBITDA profit of $439k in December 2020 compared to $2,222k in December 2019, on a normalised basis after accounting for expenses that were one off in nature relating to the IPO & finance restructure.

• Decline in EBITDA driven by timing in investing in the business for growth. Major driver for decline driven by increase in employment costs reflecting investment into people with headcount increasing from 87 in December 2019 to 113 in December 2020. In the prior reporting period (December 2019) staff headcount increased from 73 to 87 in preparation for the ASX listing however many of the senior appointments were not made until later in the half (October onwards) meaning the full wage impact was not seen in the December 2019 results.

• Share based payments of $840k (December 2019: $69k) reflects the accounting recognition of the options granted to staff in May 2020 and the options to 3 of the 5 directors approved at the AGM in November 2020. The cost of the options is recognised over the vesting period, is a non cash item and allocated against a share based payment reserve (equity).

Aerometrex Limited - Half year results to 31 December 2020

23

Appendix 2 Addressable Market

Near-infra-red image Canberra, ACT Australia

Aerometrex Limited - Half year results to 31 December 2020

24

Total Addressable Market

==> picture [253 x 204] intentionally omitted <==

----- Start of picture text -----

Total Addressable Market in Australia is estimated at ~$150m
Aerometrex
$17.8m
18%
Target 50%
($70-75m)
----- End of picture text -----

3D

Global application with unlimited potential with market in its infancy Open-ended, international scope Growing awareness of value

==> picture [229 x 237] intentionally omitted <==

Our current share and growth target by division:

==> picture [471 x 181] intentionally omitted <==

----- Start of picture text -----

MetroMap LiDAR Aerial Photography & Mapping
Addressable Market Size Addressable Market Size Addressable Market Size
Subscriptions (ARR) ~$50m ~$15-20m
~$80m
Actual
$3.3m (Dec 2020)
Actual
$8.9m Actual
$6.1m
Target 50%
($40m) Target 50%
($25m)
Target
expect to hold
stable revenue
----- End of picture text -----

Aerometrex Limited - Half year results to 31 December 2020

*FY20 revenue unless otherwise stated

25

Disclaimer

This presentation is provided for information purposes only and is not a disclosure document as defined under the Corporations Act 2001 (Cth) This presentation does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase, sale or issue of any securities or any financial product nor does it constitute financial product or investment advice. The presentation does not contain all the information that may be required for evaluating the Company's assets, prospects or potential opportunities and is not intended to be used as the basis for making an investment decision. The presentation has been prepared without taking into account the investment objectives, financial situation or particular needs of any particular person.

No representation or warranty, express or implied, is made as to the accuracy, reliability, completeness or fairness of the information, opinions and conclusions contained in this presentation. Neither the Company, its related bodies corporate, shareholders or affiliates, nor any of their respective officers, directors, employees, related bodies corporate, affiliates, agents or advisers makes any representations or warranties that this presentation is complete or that it contains all material information about the Company or which a prospective investor may require in evaluating a possible investment in the Company or acquisition of securities. To the maximum extent permitted by law, none of those persons accept any liability, including, without limitation, any liability arising out of fault or negligence for any loss arising from the use of information contained in this presentation or in relation to the accuracy or completeness of the information, statements, opinions or matters, express or implied, contained in, arising out of or derived from, or for omissions from, this presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns (if any) contained in this presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Neither the Company nor its related bodies corporate, shareholders or affiliates, nor any of their respective officers, directors, employees, related bodies corporate, affiliates, agents or advisers guarantees any return or generally the performance of the Company or the price at which its securities may trade. Any investment in the Company is subject to investment risks including the possibility of loss of capital invested and no return of income or payment of dividends.

Before making an investment decision, you should assess whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances and consider seeking your own independent legal, financial and commercial advice. Past performance is no guarantee of future performance.

The distribution of this document in jurisdictions outside Australia may be restricted by law. Any recipient of this document outside Australia must seek advice on and observe any such restrictions.

This presentation may contain certain “forward‐looking statements” with respect to the financial condition, results of operations and business of the Company and certain plans and objectives of the management of the Company. Forward looking statements can generally be identified by words such as ‘may’, ‘could’, ‘believes’, 'plan', 'will', 'likely', ‘estimates’, ‘targets’, ‘expects’, or ‘intends’ and other similar words that involve risks and uncertainties, which may include, but are not limited to, the outcome and effects of the subject matter of this presentation. Indications of, and guidance on, future exchange rates, capital expenditure, earnings and financial position and performance are also forward‐looking statements.

You are cautioned not to place undue reliance on forward looking statements as actual outcomes may differ materially from forward looking statements. Any forward‐looking statements, opinions and estimates provided in this presentation necessarily involve uncertainties, assumptions, contingencies and other factors, and unknown risks may arise, many of which are outside the control of the Company. Such statements may cause the actual results or performance of the Company to be materially different from any future results or performance expressed or implied by such forward looking statements. Forward‐looking statements including, without limitation, guidance on future plans, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Such forward looking statements speak only as of the date of this presentation.

The information in this presentation is current as at the date on the cover of the presentation and remains subject to change without notice, in particular the Company disclaims any intent or obligation to update publicly any forward‐looking statements, whether as a result of new information, future events or results or otherwise.

Aerometrex Limited - Half year results to 31 December 2020

26

27

Aerometrex Limited - Half year results to 31 December 2020