ARCHTIS LIMITED — Investor Presentation 2021

Mar 16, 2021

TRUSTED TO SAFEGUARD THE WORLD’S MOST SENSITIVE INFORMATION

archTIS│ASX:AR9 INVESTOR PRESENTATION

www.archTIS.com

Disclaimer

No Warranties

Disclaimer

The material in this presentation has been prepared by archTIS Limited (“ Company ”) and has been authorised for issue by the Board of the 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 forwardlooking 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.

==> picture [73 x 15] intentionally omitted <==

2

www.archTIS.com

Company Introduction Data-centric cyber security technology that prevents malicious and accidental loss of information

==> picture [66 x 60] intentionally omitted <==

Established Technology

==> picture [45 x 46] intentionally omitted <==

Recurring Licensing Model

Daniel Lai Managing Director & CEO

==> picture [53 x 54] intentionally omitted <==

==> picture [63 x 53] intentionally omitted <==

Global Presence

Marquee Customers

==> picture [54 x 54] intentionally omitted <==

Recent Merger of Nucleus Cyber Accelerating Financials

Kurt Mueffelmann Global COO & US President

==> picture [73 x 15] intentionally omitted <==

3

www.archTIS.com

==> picture [829 x 410] intentionally omitted <==

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

Strong and Growing: 1h-2021 Results
(31 Dec 20)
Recurring
Revenue Revenue
+ 457% (Licensing)
+ 303%
$1,111,763 vs.
$242,877 Gross
Cash $459,235 vs.
Margin $151,420
+ 498%
+ 686%
$12,104,53 vs.
$809,946 vs
$2,428,648
EBIDTA 118,041
OpEx + 53%
+ 53%
- $983,432. vs.
$(983,433) vs.
- $1,843,486
$(1,843,486)
----- End of picture text -----

PCP - Previous Corresponding Period 31 Dec 19

==> picture [73 x 15] intentionally omitted <==

4

www.archTIS.com

Corporate Overview Investor Profile*

==> picture [394 x 275] intentionally omitted <==

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

0.80%
1%
11.50%
Retail
Director & Assoc
14.70%
Institutional
Broker
Stock Lending
72.50%
Jan 2021
----- End of picture text -----*

Board of Directors

Dr. Miles Jakeman AM, Independent Chairman Daniel Lai , Managing Director & CEO Leanne Graham, Independent Non-Executive Director

AR9 Share Price Performance

==> picture [361 x 207] intentionally omitted <==

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

60
50
40
30
20
10
0
AR9 Share price performance
----- End of picture text -----

Financial Information

	ASX Code	AR9
	Share Price(15 Mar 2021):	$0.28
	Issued Capital:	226.65m ordinary shares
		5.875m options
		(various exercise price & expiry
		dates)
	Market Cap(15 Mar 2021):	$61.24M
	Cash at Bank(31 Dec 2021):	$12.1M

==> picture [73 x 15] intentionally omitted <==

5

www.archTIS.com

High Stakes National Security and Trade Secrets

==> picture [210 x 229] intentionally omitted <==

==> picture [218 x 124] intentionally omitted <==

==> picture [193 x 192] intentionally omitted <==

==> picture [252 x 186] intentionally omitted <==

==> picture [366 x 58] intentionally omitted <==

Recent Breaches

• Solar Winds

• ▪ Tesla

• Australian Securities and Investments Commission (ASIC)

• Bombardier

• Reserve Bank of New Zealand

• ▪ Volvo

• US Govt – Snowden

• ▪ AMSC Wind Turbine

• ▪ Oreo Cookies – Dupont

==> picture [73 x 15] intentionally omitted <==

6

www.archTIS.com

Digital Transformation is Problematic How we access and share The way we work data has changed has changed for Data Security Traditional defences and protection do not work US$1 trillion loss in value Malicious theft Nation-state espionage Unstructured data Many collaboration Accidental loss is vulnerable channels

▪ Malicious theft

▪ Nation-state espionage ▪ Accidental loss

==> picture [73 x 15] intentionally omitted <==

7

www.archTIS.com

==> picture [895 x 444] intentionally omitted <==

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

Key Drivers
$15M
$6.5BN
74%
COVID-
30% 19 Average cost of
71% Data-centric an insider-
related
security market
incident
$500M
Of companies by 2022,
Data loss has
plan to 23.1% CAGR
increased with
permanently
Of all breaches are remote work:
shift to more
Of enterprises a result of insiders 123% increase in data remote work
struggle to manage being copied to USBs;
Issued in GDPR and protect • 62% of incidents 74% of that data marked post COVID-19
fines already "classified”
unstructured data relating to
72% increase in file
negligence
• 23% of incidents uploads to cloud storage
services
relating to criminal 49% increase in email
insiders attachments
24% increase of saving
to home office network
attached storage
2020 Data Breach Investigations Report Markets and Markets Data-centric Security
https://www.enforcementtracker.com/ SailPoint 2018 Market Pulse Survey 2020 Global Cost of Insider Threats Report 2020 Digital Guardian Data Trends Report Gartner Survey March Market Forecast 2020 Global Cost of Insider Threats Report
2020
----- End of picture text -----

==> picture [73 x 15] intentionally omitted <==

8

www.archTIS.com

Large and Addressable Market Exponential Expansion of Data

Digital Transformation US$1,392B 22.5% CAGR to 2027 Content & Collaboration US$7B

Data-centric Protection US$5.8 billion 23.1% CAGR to 2022

==> picture [439 x 328] intentionally omitted <==

==> picture [73 x 15] intentionally omitted <==

9

www.archTIS.com

Tailwinds Promoting Growth Cyber Security Commitment & Australian Industry Capability

▪ Department of Defence “2020 Force Structure Plan”

• The Australian Government committed approximately $15bn over the next decade to cyber and information warfare capabilities

▪ Australia’s Cyber Security Strategy 2020

• The Australian Government committed investment of A$1.67b over 10 years

▪ Australian Industry Capability

• Provides opportunities for Australian companies to compete on merit for defence work within Australia and overseas.

CUSTOMERS Attorney-General’s Department Department of Defence Department of Home Affairs Office of the Information Commissioner Department of Health

==> picture [73 x 15] intentionally omitted <==

10

Prime Minister of Australia, 2020 https://www.pm.gov.au/media/nations-largest-ever-investment-cyber-security

www.archTIS.com

The Product Offerings Data-centric approach to security

==> picture [73 x 15] intentionally omitted <==

www.archTIS.com

The archTIS Advantage

Superior Technology

• Data-centric protection dynamically secures data from the inside out

• Zero Trust / ABAC methodology

==> picture [97 x 84] intentionally omitted <==

==> picture [53 x 73] intentionally omitted <==

• Proven & established across marquee customers

==> picture [91 x 46] intentionally omitted <==

• Industry recognized solutions

Validated Integration with Key Collaboration Platforms

• Microsoft

==> picture [70 x 70] intentionally omitted <==

• Nutanix

==> picture [93 x 54] intentionally omitted <==

==> picture [82 x 54] intentionally omitted <==

• Oracle

• AWS

• Splunk

Secure collaboration is always top priority for our customers, and NC Protect can help customers with highly sensitive data to ensure it remains protected as it is shared through the collaboration lifecycle.

Ryan McGee Security Product Marketing, Microsoft Corp

Accredited “PROTECTED” with Australian Government

==> picture [73 x 15] intentionally omitted <==

12

www.archTIS.com

Kojensi Accredited Classified Information Collaboration Platform

• Multi-level collaboration platform allowing government and industry to create and share highly classified information

• Uses Attributed Based Access Control (ABAC) to define the policies around who can access information and under what conditions

• Enforces Zero Trust at the perimeter and the data layer

• Patented security model

==> picture [283 x 212] intentionally omitted <==

==> picture [66 x 66] intentionally omitted <==

KEEP SENSITIVE DOCUMENTS SECURE

==> picture [73 x 15] intentionally omitted <==

www.archTIS.com

==> picture [59 x 54] intentionally omitted <==

TOP SECRET COMPLIANCE

==> picture [66 x 66] intentionally omitted <==

INCREASE PRODUCTIVITY

==> picture [64 x 64] intentionally omitted <==

COLLABORATE SECURELY

10 13

NC Protect In-transit Protection Across Microsoft Apps Simpler. Faster. Cheaper.

==> picture [860 x 182] intentionally omitted <==

IDENTIFY, CLASSIFY & SECURE SENSITIVE DATA

==> picture [73 x 15] intentionally omitted <==

www.archTIS.com

PROACTIVELY BLOCK & PROTECT INFORMATION

AUDIT & REPORT FOR COMPLIANCE

14

archTIS - Advanced Information Protection

Top SecretTop Secret Secret Secret Protected Sensitive Protected Kojensi Enterprise Unclassified Kojensi Enterprise Official Kojensi Cloud Use Case: Government Use Case: Government & SaaS Defence Industry Accredited NC Protect Private Cloud Use Case: Industry, Can be Accredited Use Case: Industry & Government Private Cloud Government Accredited Microsoft 365 Australian Sovereign Kojensi Deployed SharePoint Online/On-premises Microsoft Teams Use Case: Government & OneDrive, Exchange Defence Industry Yammer, Dropbox Nutanix Files, Netapp Files Accredited Windows File Shares Software Deployed on a Server

Built on Attribute-based Access Control (ABAC)

==> picture [73 x 15] intentionally omitted <==

15

www.archTIS.com

Our Business Model Develop scalable annual recurring revenue via license sales

==> picture [73 x 15] intentionally omitted <==

www.archTIS.com

Annual Recurring Revenue Model Driving long term, predictable annual recurring revenue

Core Offering Kojensi Platform NC Protect Indicative Annual Recurring

Revenue Implementation Annual Recurring License Licence Streams Revenue Recurring One Time Recurring Type

Diversified Customer Base

High Margin Growth

Low Churn Rate (stickiness)

Eliminates the issue of account concentration by having multiple accounts renewing year over year while adding scale.

Subsequent years provide 95%+ gross margins leading to increased gross profits and subsequent EBIDTA.

High retention rate of 95%+ creates extended lifetime value of customer in excess of 5x ARR.

==> picture [73 x 15] intentionally omitted <==

17

www.archTIS.com

Go To Market Offerings

Kojensi Enterprise On-premises

• Securing “Top Secret” information |C-SCRM

==> picture [937 x 340] intentionally omitted <==

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

▪
Gov Government Agencies | Defense Industrial Base
▪
Enterprise Direct | Large System integrators | MSFT Co-sell
▪
Defense ASP: $3–6M per annum | Users licenses: Over 10,000
Kojensi Enterprise On-premises & NC Protect
▪
Government Agencies | Corporate Enterprises over 5,000 staff
▪
Secure Collaboration
Enterprise ▪
Regional Direct | System Integrators | MSFT Partners | MSFT Co-sell
▪
ASP: $100–500k per annum | Users licenses: 2,000–10,000
Kojensi SaaS & NC Protect
▪
Secure Collaboration
▪
Corporate SME & SME under 5,000 | State, Local and EDU
▪
SLGE Inside direct | MSFT & Security Resellers
▪
ASP: $10–100k per annum | User licenses: 1-2,000
----- End of picture text -----

==> picture [73 x 15] intentionally omitted <==

18

www.archTIS.com

3 Tier Global Distribution Strategy

Direct Regional Sales

• APAC:

  • Canberra

  • Singapore

• Americas:

  • Boston

  • US FED: Washington, DC

• EMEA: London

• Global Channel • System / Defence Integrators

• • Value Added Resellers

  • Microsoft Certified

  • Security / Vertical

  • Trusted Advisor Relationship

Strategic Alliances

• MSFT Co-sell

• • ASX related partnerships

• • LiveTiles / DropSuite / Tesserent / CipherPoint

==> picture [73 x 15] intentionally omitted <==

19

www.archTIS.com

Supply Chain Network Effect Customer Expansion via Collaboration

==> picture [422 x 384] intentionally omitted <==

• 1 Sale to primary organization

• 2 Deploy across collaboration network

• Secondary sales into supply chain

3

==> picture [73 x 15] intentionally omitted <==

20

www.archTIS.com

Our Customers & Partners

==> picture [141 x 47] intentionally omitted <==

==> picture [129 x 40] intentionally omitted <==

==> picture [120 x 24] intentionally omitted <==

==> picture [129 x 22] intentionally omitted <==

==> picture [86 x 71] intentionally omitted <==

==> picture [69 x 51] intentionally omitted <==

==> picture [96 x 53] intentionally omitted <==

==> picture [153 x 48] intentionally omitted <==

==> picture [83 x 84] intentionally omitted <==

==> picture [108 x 61] intentionally omitted <==

==> picture [152 x 53] intentionally omitted <==

==> picture [172 x 34] intentionally omitted <==

==> picture [62 x 62] intentionally omitted <==

==> picture [67 x 49] intentionally omitted <==

==> picture [131 x 25] intentionally omitted <==

==> picture [97 x 73] intentionally omitted <==

==> picture [115 x 73] intentionally omitted <==

==> picture [127 x 73] intentionally omitted <==

==> picture [100 x 73] intentionally omitted <==

==> picture [106 x 73] intentionally omitted <==

==> picture [152 x 52] intentionally omitted <==

==> picture [133 x 98] intentionally omitted <==

==> picture [77 x 51] intentionally omitted <==

==> picture [112 x 28] intentionally omitted <==

==> picture [177 x 119] intentionally omitted <==

==> picture [73 x 15] intentionally omitted <==

21

www.archTIS.com

Capital Investment Strategy

==> picture [393 x 271] intentionally omitted <==

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

Strong Revenue Growth
Q1'20 to QII'21
800,000.00
700,000.00
600,000.00
500,000.00
400,000.00
300,000.00
200,000.00
100,000.00
0.00
QI'20 QII'20 QIII'20 QIV'20 QI'21 QII'21
----- End of picture text -----

▪ Ongoing expansion of global sales distribution strategies:

• Establish a multi-geography, global presence

• Create a US-based Federal and Defence business unit

• Expand market awareness and demand

• Drive technology innovation

• Create operational efficiency through tight system integrations

▪ Explore acquisitions for global product and market expansion

$12M cash balance to fuel growth

==> picture [73 x 15] intentionally omitted <==

22

www.archTIS.com

Experienced Leadership Team

==> picture [140 x 140] intentionally omitted <==

==> picture [140 x 140] intentionally omitted <==

==> picture [140 x 139] intentionally omitted <==

Daniel Lai

Managing Director & CEO

Daniel is a Founder and Managing Director of archTIS, with extensive industry experience leading large and complex deliverables for government and commercial organisations.

Kurt Mueffelmann

Global COO & US President

As Global COO and US President of archTIS and Nucleus Cyber, Kurt Mueffelmann brings over 25 years of technology leadership to the company in running 5 previous successful entities including US$1B NASDAQ. He is a two-time Deloitte Fast 500 CEO.

James Palmer

Chief Financial Officer

James Palmer is the Chief Financial Officer of archTIS. James has over 24 years of professional experience in London, Sydney and the USA, 20 of those years with a major accounting firm.

==> picture [125 x 128] intentionally omitted <==

==> picture [125 x 125] intentionally omitted <==

Nick Main

Chief Architect

Nick Main leverages experience in Australian Government, Defence and law enforcement technology strategy, security, architecture, technical consultancy, and high tempo technical project delivery within complex and high security environments.

Leigh Rowland

Chief Engineer

As Chief Engineer, Leigh Rowland is responsible for driving the evolution of the company’s technology to provide secure collaboration and seamless integration into supported platforms.

Irena Mroz

Chief Marketing Officer

Irena Mroz is CMO of archTIS and Nucleus Cyber. She is responsible for defining the company’s branding, demand generation and public relations leveraging over 20 years B2B software marketing experience.

Marcelle Newbound

Customer and Employee Culture Manager

Marcelle Newbound is focused on optimizing the employee and customer experience to drive satisfaction and product renewal.

==> picture [73 x 15] intentionally omitted <==

23

www.archTIS.com

Why Invest Now

$

Commercialised and proven technology platforms with established customer base

$

Deep global networks and relationships in Government/Defence and Industry

$

Significant market opportunity and strong tailwinds addressing insider threats

$

Key strategic partnerships with global leaders such as Microsoft, Oracle and AWS

$ Strong cash position for investment combined with accelerating revenue metrics

==> picture [73 x 15] intentionally omitted <==

24

www.archTIS.com

Contact

Company Enquiries Daniel Lai Managing Director, archTIS E: investors@archtis.com

Investor Relations Media & Capital Partners E: Archtis@mojomedia.com.au

==> picture [226 x 45] intentionally omitted <==

Level 3 , 10 National Circuit Barton ACT 2600 Australia

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

www.archtis.com @AR9_investor @arch_tis