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AI-MEDIA TECHNOLOGIES LIMITED AGM Information 2021

Nov 11, 2021

64345_rns_2021-11-11_851bf805-56bf-4112-b5f2-e1577f877c75.pdf

AGM Information

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ASX ANNOUNCEMENT (ASX:AIM)

12 November 2021

Annual General Meeting Chair and CEO Addresses and Presentation

Melbourne, Australia, 12 November 2021: Ai-Media Technologies Limited ( Ai-Media or Company ) ( ASX: AIM ), a global provider of technology-driven live and recorded captioning, transcription and translation services, is pleased to provide the Chair’s and CEO’s Addresses and Presentation to be delivered at the 2021 Annual General Meeting today.

This will be held as a virtual meeting, details of which were provided to Shareholders in the Notice of Meeting dated 6 October 2021.

Event details

Date: Friday 12 November 2021 Time: 11:00am (AEDT) URL: https://web.lumiagm.com/341228481 Meeting ID: 341-228-481

ENDS

Authorised for release by the Ai-Media Board.

Further Information:

AIM NWR Communications Sue Sanossian Simon Hinsley Company Secretary Director +61 2 8870 7711 +61 401 809 653 [email protected] [email protected]

About Ai-Media

Founded in Australia in 2003, technology company Ai-Media has become a global leader in the provision of high-quality live and recorded captioning, transcription and translation services. Its technology platform combines artificial intelligence and human expertise to deliver speech-to-text accuracy in three price points: automated (Lexi), semi-automated (Smart Lexi), and premium (Ai-Live). The company is the biggest captioning provider in the Australian market, with clients including major free-to-air and pay television networks, and has a growing international footprint, with offices in Australia, the US, UK and Canada. Globally, Ai-Media technology delivers 7 million minutes of live and recorded media content, and online events and web streams every month. Ai-Media (ASX: AIM) commenced trading on the ASX on 15 September 2020.

For more information on Ai-Media please visit https://www.ai-media.tv/

Registered Office Level 6, 277 William Street, Melbourne VIC 3000

Corporate Office Level 1, 103 Miller Street, North Sydney NSW 2060

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Ai-Media Technologies Limited 2021 Annual General Meeting (AGM)

12 November 2021

Chair’s Address – Deanne Weir

Before we move to the business of this year’s meeting, I would like to take a few minutes to reflect on some events that have shaped the year for Ai-Media.

It has been an exciting and transformational 12 months for our company as we cement our position as the leading global provider of technology-driven live and recorded captioning, transcription, and translation solutions. Since our beginnings in 2003, our primary goal has always been to make content accessible for all, particularly those with hearing loss. Our mission to deliver social inclusion for all is becoming increasingly relevant with consideration of social impacts becoming more important to investors and companies across the globe. What has also been particularly exciting about the last couple of years is that the use of live captioning and translation have become mainstream across the globe, as the use of video moves beyond entertainment and becomes an essential communications tool for business and education, often consumed on mobile devices.

With that context, it gives me great pleasure to reflect on our achievements in FY21, a year that featured several pivotal milestones for Ai-Media. While the global pandemic created certain challenges, it has also highlighted the importance of video content, and by extension captioning and translation, for an increasing range of uses, and accelerated its adoption as a business tool. With the strength and breadth of our product suite and our extensive network of customers, we are well positioned to capitalise on industry tailwinds to continue driving growth and value for our shareholders, as we deliver profit with purpose.

Our ASX listing in September 2020 followed our successful $65.5 million Initial Public Offering (IPO). The IPO was the culmination of several years of work as we saw the opportunity to scale our business to meet growing demand for video as a core communication tool for business and

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education. Completing our IPO and ASX listing was an exciting step for our company and will allow us to continue our rapid growth, particularly outside of Australia. It is also enabling Ai-Media to deliver further innovation to our technology platform and provide a broadening range of products and services to our valued customers.

The captioning, transcription and translation industry is a highly fragmented sector experiencing rapid growth and technology-driven consolidation which presents exciting opportunities in the US$20 billion+ market. The industry is consolidating rapidly, as seen by our own acquisitions, and other examples such as the acquisition of closed-captioning provider VITAC by US based live captioning and transcription technology company Verbit, the RWS acquisition of FTSE-listed SDL, and Iyuno’s purchase of BTI and SDI. Ai-Media is well positioned with a strong balance sheet and the required capabilities to eagerly compete within this rapid sector growth. We will take advantage of industry tailwinds and pursue sensible acquisition opportunities if and when they arise.

Last year we acquired US captioning companies Alternative Communications Services, along with captioning, transcription and translation providers Caption IT and CaptionAccess. In April, we launched our Smart ASR product, a breakthrough innovation in automatic captioning. ASR - or automatic speech recognition - addresses a significant market gap, targeting customers who want a more affordable captioning service, but for whom standard ‘out-of-the-box’ ASR services do not provide sufficiently high accuracy and confidence.

Smart ASR is our first high quality live product that does not require real-time human curation and its launch followed several years of in-house product development. By layering our proprietary technology on existing ASR engines, Smart ASR delivers a significant improvement over the performance of competing products in market. It combines the best of our automation technologies, the knowledge and skill of our expert captioning team and the benefits of our 18 years of industry experience and proprietary dataset to deliver the first ASR solution deployed in the Australian broadcast market.

Continuing on our growth trajectory, in May this year we acquired US-based technology company EEG Enterprises. This transformational deal was well supported by our shareholders who backed our $40 million capital raise to fund the acquisition, including my own contribution of $2 million: so as you

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can see, I am a believer! This strategic purchase provides us with a ready-made customer base of US broadcasters and a valuable engineering capability that has already allowed us to deliver strategic customer wins in the first quarter post-acquisition.

With the addition of EEG’s flagship Lexi product to our technology suite, we combined the best of Lexi with Smart ASR and created Smart Lexi, tested successfully on the most watched television event in history, NBC’s broadcast of the Tokyo Olympics and Paralympics. We now have three clear price tiers for captions, transcription and translation. Lexi, which is fully automated, Smart Lexi, which is semiautomated and our premium Ai-Live service.

The acquisition of EEG as a profitable business at a time when the underlying Ai-Media business had achieved first profits set strong foundations for our future growth. Most of the EEG revenue is derived via high margin Software-as-a-Service, and Infrastructure-as-a-Service business models. These revenue streams are ongoing and repeatable, derived from customer subscriptions. Add to this our booming hardware sales and rentals, and we have a strong business model on which we can deliver further growth – especially in markets outside the US.

Our company has been at the forefront of the highest-quality live captioning for nearly 20 years. We have more than 2,200 customers globally, including Disney, Fox Corporation, HBO, the 9Network, Seven Network, Sky News Australia, Al Jazeera and the World Economic Forum. In addition, our captioning services are offered under Australia’s National Disability Insurance Scheme, and we also work with universities and colleges around the globe to provide captioning for all students in multiple languages.

During the September quarter we won several strategic customer accounts and we added further global technology companies to our customer mix, providing clear proof points of the strategic transformation of the Company, and tangible examples of what our future looks like. We also announced an on-market buy-back for up to 2 million AIM shares over the next 12 months. The Company will buy back shares whenever they are available at a meaningful discount from their intrinsic value and when there is surplus cash available until November 2022. Through this, we aim to deliver further value to our shareholders.

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It has been a very busy year for Ai-Media and I am tremendously pleased with all we have been able to achieve. Tony and the entire Ai-Media team have done an incredible job, and I thank them all for their passion, commitment and innovation. I would also like to thank my fellow board members, John and Alison, and acknowledge our former board member Jonathan Pearce who retired after our full year results, having played a major role in supporting us through the IPO and delivery against our IPO forecasts. With our continued growth we are seeking to add two new independent directors over coming months.

I also thank our customers, from our longstanding broadcast and education clients who have been with us for many years through to our increasing number of new clients who have signed on for our services in the past year. We hope to continue to deliver to meet and exceed your expectations over the years to come.

We have set Ai-Media on solid foundations for the future and I am delighted to be leading our Board into this exciting period of growth.

I would now like to welcome Tony Abrahams, Ai-Media's Co-Founder and Chief Executive Officer, to address you.

CEO’s Address – Tony Abrahams

Thank you, Deanne. I would like to join with our Chair, in welcoming each of you to our 2021 AGM - our first as Ai-Media Technologies Limited.

This name change, 18 years since I co-founded Ai-Media, speaks to our scalable technology-driven future – significantly enhancing our ability to deliver on our unwavering mission of improving social inclusion by making the world’s increasing amount of content accessible for all.

Following the transformational year that was FY21, the first quarter of FY22 demonstrates in a powerful way the step change in our now vertically integrated business, with improvements in scalability, better quality revenue, new tiers of service, the introduction of new SaaS products, and enhanced global growth prospects in a growing US$20 billion industry.

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Our technology led growth strategy has super charged our social inclusion impact with a 7-fold increase in the number of minutes to 100 million minutes of content made accessible annually.

Central to this transformation to be technology led is the more than $50m of technology and product investments made over the last ten years at Ai-Media in our platform and then we combined our platform with EEG, which we acquired in May 2021 for $45m.

Today, Ai-Media proudly owns and operates the world’s leading live captioning, transcription and translation distribution platform (known as iCap), forming the core of an ever-expanding global ecosystem that already dominates the US broadcast industry.

Our iCap ecosystem enables seamless delivery and failover of our three tiers of live service – automated, semi-automated and premium, being Lexi, Smart Lexi and Ai-Live respectively.

FY21 was our first financial year as a listed company and we beat our Prospectus forecasts. Revenue of $49.2m was $5.4m ahead of forecast, with Gross Profit of $20.4m being $2.3m ahead of forecast. Our FY21 Gross Profit Margin rose from 39% to 42%. Importantly the core Ai-Media business (exEEG) achieved profitability three months ahead of forecast in March 2021, providing a great platform for growth into FY22.

Q1 FY22 saw us launch a brand-new product suite named SubSilo™ designed as a feature set to allow our customers to get more benefit more quickly and more easily from their live streams in downstream applications. A good example of these downstream applications includes for our parliamentary customers, to improve the efficiency of statutory Hansard transcription, and our media customers to save valuable time in locating video material with simple text search.

We are proud that whilst we continue to invest in our platform, we were still able to deliver Q1 FY22 revenue growth of 35% on the PCP, with significant increase in gross margin from 39% to over 50%.

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This increase is driven by greater sales of our new higher margin products, and automation benefits gained through our traditional Services business.

Our flagship Lexi and Smart Lexi minutes grew by 75% year on year as we delivered 22.7 million minutes of captioning in the first quarter across the world – more than we delivered in the entire year of FY21.

Our balance sheet remains strong with a cash balance of $15.5 million and as we continue to be very optimistic of or future, we launched a share buyback for up to 2 million shares as part of our capital management program.

Ai-Media’s global sales pipeline is strong. Recent wins include the Microsoft Teams platform integration, successful Smart Lexi delivery of NBC’s Olympics and Paralympics broadcasts on Peacock, and the signing of contracts with TVSN Australia Shopping Network and the NSW Parliament, among others.

Our 3-year growth plan focuses squarely on extending the leadership of the iCap live ecosystem beyond US broadcast to take it truly global, while continuing to increase the quality of revenue with an ever-higher share of SaaS products and growing recurring revenue.

This first full year of EEG being part of our group is necessarily a transitional year for our business, with our focus on success being higher margin revenue streams and the winning of multi-year contracts with new customers in existing and new territories.

Our strong cash position and profitability means we are well positioned to invest in our global growth initiatives as we take advantage of global regulatory and ESG tailwinds, driven significantly by the global adoption of the UN Convention on the Rights of Persons with Disabilities, now ratified by 163 countries.

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In a process similar to the global commitments to achieve “Net Zero by 2050” arising from the Glasgow Climate Summit, around the world, countries with no prior history or experience of live captioning (including India) have passed laws for the introduction of the service to meet their obligations under the international disability treaty.

With these emerging legislative frameworks in place, Ai-Media offers markets new to live captioning a tried and trusted plug-and-play technology platform (powered by iCap), as proven in the United States. The iCap network seamlessly inserts captions into any live broadcast stream and, once enabled, becomes an integral component in our customers’ video distribution platforms. Our aim and our investment thesis is that by 2025 the iCap standard is as ubiquitous around the world as it is today in the United States.

As a company, we firmly believe that as we continue to execute and grow, not only will we deliver strong shareholder returns, but our social inclusion impact in 2025 will be orders of magnitude greater than it is even today. We are extending our scalable product suite and technology to meet the needs of an ever larger and more diverse customer base, at higher margins. This will see us truly deliver our goal of profit with purpose – a mission that animates our entire team at Ai-Media.

Thank you to my Chair, Deanne Weir, and independent directors, John Martin and Alison Loat for your leadership and guidance.

I would like to conclude by thanking our diverse team of over 200 employees around the world, working across time-zones and cultures, to deliver this global mission of accessibility that unites us all.

I’ll now hand back to our Chair. Thank you.

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Annual General Meeting

12 November 2021 Ai-Media Technologies Limited

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Important notice and disclaimer

This presentation ( Presentation ) contains summary information about Ai-Media Technologies Limited and its subsidiaries (the Company or Ai-Media ) which is current as at 12 November 2021. By attending an investor presentation or briefing, or accepting, accessing or reviewing this Presentation, you acknowledge and agree to the terms set out below.

Summary information: This Presentation has been prepared for information purposes only and is a summary only. It should be read in conjunction with Ai-Media’s most recent financial report and other periodic and continuous disclosure information lodged with the Australian Securities Exchange ( ASX ), which is available at www.asx.com.au. Reliance should not be placed on information or opinions contained in this Presentation and, subject only to any legal obligation to do so, the Company does not have any obligation to correct or update the content of this Presentation.

Not financial product advice: This Presentation does not, and does not purport to, contain all information necessary to make an investment decision, is not intended as investment or financial advice (nor tax, accounting or legal advice) and must not be relied upon as such. This Presentation does not take into account the investment objectives, financial situation or needs of any particular investor. Investors are encouraged to seek independent professional advice when deciding if an investment in the Company is appropriate. The Company is not licensed to provide financial product advice in respect of its own securities. This Presentation is not a prospectus, product disclosure statement or other offering document under Australian law (or any other law). It is not, and does not constitute, an invitation or offer of securities for subscription, purchase or sale in any jurisdiction.

Investment risk and past performance: An investment in Ai-Media shares is subject to known and unknown risks, some of which are beyond the control of the Company and its directors. The Company does not guarantee any particular rate of return or the performance of Ai-Media. Past performance is not, and should not be relied on as being, indicative of future performance.

Future performance and forward-looking statements: This Presentation includes forward looking statements, which can generally be identified by the use of words such as “may”, “will”, “expect”, “intend”, “plan”, “estimate”, “anticipate”, “outlook”, “forecast” and “guidance”, or other similar words. They may include, without limitation, statements regarding plans, strategies and objectives and anticipated business developments. Forward-looking statements inherently involve known and unknown risks, uncertainties and other factors that may cause Ai-Media’s actual results, performance and achievements to differ materially from statements in this Presentation. Forward- looking statements are based on the Company’s

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good faith assumptions as to the financial, market, regulatory and other relevant environments that will exist and affect Ai-Media’s business and operations in the future. The Company does not give any assurance that the assumptions will prove to be correct. There may be other factors that could cause actual results or events not to be as anticipated, and may events are beyond the reasonable control of the Company. Readers are cautioned not to place undue reliance on forward-looking statements, particularly in the current economic climate and given the significant volatility, uncertainty and disruption caused by the COVID-19 pandemic. Forward-looking statements in this Presentation are only made as at the date of this Presentation and the Company does not undertake any obligation to publicly update or revise any of the forward-looking statements or to advise of any change in assumptions on which any such statement is based. Industry data and third party information: Industry data and third party information used in this Presentation may have been obtained from research, surveys, reports or studies conducted by third parties, including industry or general publications. Neither Ai-Media nor its representatives have independently verified any such market or industry data.

Financial information : This Presentation contains historical financial information based on the Company’s results for the 12 month period ending 30 June 2021 and prior comparative periods. All financial information disclosed in this Presentation is presented in Australian dollars unless otherwise noted. Any discrepancies between totals and sums of components in tables and figures contained in this Presentation are due to rounding. Disclaimer: To the maximum extent permitted by law, Ai-Media and its officers, directors, employees, agents and advisers: (1) disclaim all responsibility and liability (including, without limitation, any liability arising from fault, negligence or negligent misstatement) for any loss arising from this Presentation or reliance on anything contained in or omitted from it or otherwise arising in connection with this Presentation; (2) disclaim any obligation or undertaking to release any update or revision to the information in this Presentation to reflect any change in expectations or assumptions; and (3) do not make any representation or warranty, express or implied, as to the accuracy, reliability, completeness of the information in this Presentation or that this Presentation contains all material information about AiMedia or that a prospectus investor or purchaser may require in evaluating a possible investment in AiMedia or acquisition of shares, or the likelihood of fulfilment of any forward-looking statement.

2

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Welcome 01 Chair’s Address 02

CEO’s Address 03 Items of Business 04

3

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Chair’s Address

4

Your Board

Making the world's content accessible for everyone

Deanne Weir Chair

Tony Abrahams Co-founder & CEO

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Ai-Media is a one-stop shop for live and recorded captioning, transcription and translation solutions – globally

John Martin Non-Executive Director

Alison Loat Non-Executive Director

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CEO’s Address

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6
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FY21 highlights

Exceeded prospectus forecasts, with three US-based acquisitions contributing further part-year upside. Increased gross margin throughout FY21 and achieved positive operating cash flow and profitability in Q4 FY21

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Launched breakthrough fully automated (Lexi™) and semi-automated (Smart Lexi™) SaaS products to complement premium Ai-Live; acquired EEG's scalable SaaS live streaming product range, Alta / Falcon, and iCap cloud platform and network

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Successfully delivered captions for the Tokyo Olympics on NBC's Peacock platform using Smart Lexi™and premium live captions on Channel 7 in Australia

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Secured a three-year contract with Sky News Australia for 24/7 captioning of news programming using Ai-Media’s new Smart Lexi™product

In September 2020, Ai-Media completed an IPO raising $65.5m (including a $35.5m sell-down), and in April 2021 raised $40.0m to fund the transformative acquisition of EEG Enterprises (EEG)

Broadened the strategic customer base with significant new contracts secured during the year including Al Jazeera Media Network, UK Parliament and others

7

FY21 highlights

$49.2m

Revenue[1] ($5.4m ahead of Prospectus forecast of $43.8m[2] ) Up 87% on PCP

$20.4m

Gross Profit

  • $2.3m ahead of Prospectus forecast of 18.1m[2]

2 16.8m

Captions Minutes

175% increase on PCP

42% 2 Gross Profit Margin up from 39% on FY20 pro forma

Further gross margin improvements as AIM continues to scale

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3

Successful Acquisitions in FY21

CaptionAccess & Caption IT (Jan 2021), EEG (May 2021)

$17.9m 3 Cash Balance

Strong balance sheet capacity to pursue further growth opportunities

  1. Revenue – includes other revenue per the financial report

  2. Includes 6 months of 2x acquisitions and 2 months of EEG

  3. $17.9m cash includes $5.3m earnout to EEG vendors held on Ai-Media accounts

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A one-stop shop in a growing US$20B market 1
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Industry leading platform well positioned for growth in new segments and territories

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Captions Tiers
Premium
Live human curation
= Ai-Live Premium + bundles,
including recorded
From any language, Streamed in any
to any language format to any device
Smart Lexi
Semi-automated
= Smart Lexi
Lexi
Automated
= Lexi
Live Recorded
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7x

Growth in minutes captioned YoY

$50m R&D investment in Ai-Media’s technology platform[1]

$48m

invested in three acquisitions since Sept 2020

2,200

global customers, diversified revenue by customer and region

3,000+

skilled contractors 9

  1. Source: Frost & Sullivan, EEG

Q1 FY22 highlights

+ 35%

Revenue Growth on PCP (Q1 FY21)

$14.9m Revenue in Q1 FY22

>50%

Gross Margin

Up from 39% on PCP

+75%

Growth in Lexi / Smart Lexi SaaS minutes on PCP

22.7 million minutes delivered in Q1 FY22 across all products

Growing SaaS product suite Launched SubSilo™

Further gross margin improvements as SaaS revenue increases

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$15.5m

Cash balance at 30 September 2021

Strong cash position to execute on growth strategy

Buy-back Program of up to 2 million shares

Program to commence from 15 November 2021

10

Key customer wins

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Ai-Media won several strategic customer accounts during the past quarter which reflects the quality and breadth of its product offerings

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MICROSOFT TVSN AUSTRALIA NSW NBC’S OLYMPICS AND
TEAMS SHOPPING NETWORK PARLIAMENT PARALYMPICS
✓ Ai-Media provided direct ✓ Added to Ai-Media’s ✓ NSW Parliament will use ✓ Ai-Media partnered with
NBC to deliver the most
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support and successully
built an interface into
the Microsoft Teams
platform
✓Users can now integrate
Ai-Media’s high-accuracy
Ai-Live caption solutions
✓Underlines the strength
and value of Ai-Media’s
solutions

broadcast customers
✓TVSN will leverage the
power of Ai-Media’s
semi-automated Smart
Lexi™SaaS product
✓3-year agreement with
a minimum of 7 hours
live captioning per day

Live captions and new
SaaS product SubSilo™
to help its Hansard
team create faster and
more accurate verbatim
transcripts
✓Ai-Media will provide up
to 1800 hours per year
for events held in the
Legislative Assembly,
the Legislative Council,
and 3 committee rooms
accessible Olympics and
Paralympics broadcast in
history
✓NBC used Ai-Media’s
semi-automated Smart
Lexi™SaaS product
✓Lexi minutes were up 75%
compared to Q1 FY21

Customer wins occurred in APAC, EMEA and North America and included SaaS sales of Lexi, Smart Lexi, Alta, Falcon and iCap, with three clear price tiers for captions, transcription and translation – automated (Lexi), semi-automated (Smart Lexi), and premium (Ai-Live).

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Taking Ai-Media’s EEG product suite global

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  • EEG is a dominant player in US live captioning market working with blue chip clients in broadcast, enterprise and government space

  • Market Leader In US • Significant opportunity to grow SaaS products in new markets

  • • State-of-the-art technology and extensive Ai-Media network of customers will drive growth in coming

  • Existing EEG market years New sales opportunities

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Ai-Media is aiming to increase SaaS revenue

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Services SaaS Hardware Other
3%
16%
9%
Q1 FY21 Q1 FY22
72%
100%
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  • Services revenue share is projected <50% by the end of FY23

  • Increasing share of SaaS revenue in sales mix driven by commercial rollout globally of new product lines

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  • Services revenue FY21 Margin >40%

  • SaaS revenue FY21 Margin >75%Hardware revenue FY21 Margin >70 %

13

A future driven by iCap and SubSilo

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iCap is the ubiquitous global live distribution platform for captioning, transcription and translation

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SubSilo™ is the family of features that allow AiMedia’s customers to gain more benefit more quickly and more easily from the live product in downstream applications

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Ai-Media’s roadmap to 2025

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Establish iCap network as global standard

Become the go-to live captioning provider across the industry and around the globe

Grow and diversify customer base

Capitalise on increasing demand for live captioning across new segments and territories

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Drive growth at higher margins

Increase revenue share of our transformative SaaS product suite and hardware

Enhance product suite and technology

Continued investment in platform to further improve the quality of our product offerings

15

Thank you

For further information

Investors

Sue Sanossian

Company Secretary +61 2 8870 7711 October 2021 [email protected]

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