ARCHTIS LIMITED — Interim / Quarterly Report 2021

Jul 26, 2021

Q4 – June 2021

TRUSTED TO SAFEGUARD THE WORLD’S MOST SENSITIVE INFORMATION

27 JULY / 11AM QUARTERLY UPDATE

Authorised for release by the Managing Director of archTIS Limited

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Disclaimer

No Warranties

Disclaimer

The material in this presentation has been prepared by archTIS Limited (“Company”).

This presentation may not be reproduced, redistributed or passed on, directly or indirectly, to any other person, or published, in whole or in part, for any purpose without prior written approval of the Company. The material contained in this presentation is for information purposes only. This presentation is not an offer or invitation for subscription or purchase of, or a recommendation in relation to, securities in the Company and neither this presentation nor anything contained in it shall form the basis of any contract or commitment. Any offering of any of the Company's securities to Australian persons will be subject to Australian securities laws. The distribution of this document in jurisdictions outside of Australia may be restricted by law, and persons in to whose possession this document comes should inform themselves about, and observe, all such restrictions.

This presentation is not financial product or investment advice. It does not take into account the investment objectives, financial situation and particular needs of any investor. Before making an investment in the Company, an investor or prospective investor should consider whether such an investment is appropriate to their particular investment needs, objectives and financial circumstances, seek legal and taxation advice as appropriate and consult a financial adviser if necessary.

This presentation may contain forward-looking statements that are subject to risk factors associated with a waste management business. Forward looking statements include those containing such words as "anticipate", "estimates", "forecasts", "should", "could", "may", "intends", "will", "expects", "plans" or similar expressions. Such forward-looking statements are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other important factors, many of which are beyond the control of the Company. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a range of variables and changes in underlying assumptions which could cause actual results or trends to differ materially. The Company does not make any representation or warranty as to the accuracy of such statements or assumptions.

This presentation has been prepared by the Company based on information currently available to it. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, none of the Company or its subsidiaries or affiliates or the directors, employees, agents, representatives or advisers of any such party, nor any other person accepts any liability for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it, including without limitation, any liability arising from fault or negligence on the part of the Company or its subsidiaries or affiliates or the directors, employees, agents, representatives or advisers of any such party.

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Quarterly Highlights

Data-centric security technology to prevent malicious and accidental loss of information​

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Record Financial Performance

Finalised Successful Nucleus Cyber Merger Continued Global Customer Wins

Strong Positive Cash Position

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Delivered on tactical execution Feb 22 – 1h

• Expand global sales distribution capabilities

• Establish a multi-geography, global presence in APAC, the Americas and EMEA

• Create a US-based Federal and Defense focused business unit to leverage existing Australian successes and relationships

• Continue to drive the key strategic alliances across Microsoft field sales and channel partners through IP Co-sell arrangement

• Create market awareness, lead generation and demand for attribute-based access controls (ABAC)

• Pursue high-margin licenses to drive annual recurring revenue (ARR)

• Explore global product and market expansion opportunities

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Strong Quarterly Performance Accelerated revenue growth with building investments

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$12.7M Cash Position Supporting Growth

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ARR
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0
QIV QI QII QIII QIV
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OpEx
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Market Validation

Higher Margins

Key Investment

Strong revenue growth validating Increased annual recurring product innovation and go to revenue licenses creating market strategy greater margins and predictability

Operational investments of sales, market awareness and innovation

*FY’21 Unaudited / Values in $000’s

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Nucleus Cyber – Merger Completion

• NC Protect total sales of $2.35M , up 470% in 6-month period versus entire CY’2020.

• Additional consideration threshold achieved resulting in issuance of 6,087,272 shares.

• Combined operations and procedures

• Created underlying cost savings

• Go-to-market synergies.

• New product initiative around “KojNC”; the development of equivalent feature sets in both Kojensi and NC Protect.

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Quarterly Wins

Americas

• US – FED: National Institute for Health

• Northrop Grumman

• Commercial real estate management firm

• Private detention center

• Large manufacturer protecting mobile device intellectual property

EMEA

• German social accident insurance company Berufsgenossenschaft für Gesundheitsdienst und Wohlfahrtspflege (BGW)

APAC

• Aus Dept of Defence

• • Unspecified “Intelligence” agency

• • Australian National security agency

• • Large Australian defence corporation

• • Public research institute

• • International Law firm focused on Intellectual Property

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Australian Department of Defence

Defence Use Case

Protecting:

• Sensitive Data

Challenge:

Three deals in the quarter totaling $1.6m in ARR:

1. Kojensi Enterprise - Sale $578,000 ($264,000 ARR and $314,000 in hardware and services)

2. NC Protect - Sale $868,000 over 4 years at $217,000 ARR

3. NC Protect – Sale $535,000 over 5 years at $107,000 ARR

4. Secure and restrict access to highly sensitive files across multiple deployed SharePoint farms.

Result:

• Controls Releasability of files within SharePoint based on Nationality, Clearance Level, Location and Need to Know.

• Prevents privileged users / admins from accessing sensitive information.

• Applies conditional and contextual security rules based on files classifications to limit access, enable sharing and provide auditability.

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Key Wins

Multinational Technology Company

Protecting:

• IP and trade secrets

Challenge:

• Concerned about IP theft by malicious employees for economic gain or nation-state espionage, and privilege abuse in SharePoint.

Solution:

• NC Protect conditional access eliminates elevated admin privileges in Active Directory and SharePoint.

• Prevents IP and other sensitive files from being downloaded, copied, printed or emailed.

• Provides an audit trail of access and actions taken with restricted file.

• Apply dynamic watermarks to secure viewer hindering the ability to photograph the screen with a mobile device.

Result:

• Ensures IP can only be access by authorized users, prevents data theft by limiting what users can do with files and eliminates privileged user access to files greatly reducing the risk of IP theft.

Healthcare Insurer

Protecting:

• Discovery of PHI and HIPAA protected information in SharePoint.

Challenge:

• Need to identify and classify all PHI and HIPAA related information across the enterprise.

Solution:

• NC Protect scans the company’s documents to detect files with PHI/HIPAA content and classify content based on its contents and level of sensitivity.

• Dynamically restricts file access and sharing based on the classification and user context.

• Tracks user access to PHI and actions taken with it to provide an audit trail for compliance auditing and breach investigation.

Result:

• Able to comply with HIPAA and privacy regulations, and control access to the data.

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The Backdrop

• This biopharmaceutical client needed to protect highly valuable intellectual property (IP), US FDA regulated clinical trials of medicines in development, and sensitive company information collaboration for internal and guest users in Teams and SharePoint Online.

Solution

• Provides cross-platform data protection.

• Controls how sensitive content is shared and who it can be shared with - internally and externally.

• Prevents guest users from accessing unauthorized content.

• Alerts administrators to unauthorized sharing attempts.

Repeatable Expertise

NC Protect is tightly integrated with Microsoft apps to prevent accidental sharing, misuse and data loss with a simpler and faster way to:

• Dynamically secure data across M365 apps in transit

• Enforce zero trust access and sharing policies at the file, chat and message level

• Provision secure guest access

© 2021 Microsoft Corporation. All rights reserved. This case study is for informational purposes only. MICROSOFT MAKES NO WARRANTIES, EXPRESS OR IMPLIED, IN THIS SUMMARY. Microsoft and Microsoft Azure are either registered trademarks or trademarks of Microsoft Corporation in the United States and/or other countries. All other trademarks are property of their respective owners. www.archTIS.com

Key Alliances & New Reseller Partnerships

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Product Innovation

File Integrity

Redaction

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Microsoft Sentinel Integration
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Key Focus
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Close US Fed & Defence Opportunities

Leverage Key Partnerships

Continuous Product Innovation

Leverage Australian prior successes in key government agencies and Defence industrial entities

Continue to drive key pipeline opportunities with Microsoft, Thales, Raytheon and global reseller channel

Embrace Zero-trust security architecture across ABAC technologies for data-centric offerings

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Q&A

Level 3 , 10 National Circuit Barton ACT 2600 Australia

1300 ARCHTIS +61 2 6162 2792 +61 419 528 061

www.archtis.com @arch_tis

Company Enquiries Daniel Lai Managing Director, archTIS E: investors@archtis.com Investor Relations Media & Capital Partners E: Archtis@mojomedia.com.au

www.archTIS.com