CONSTELLATION TECHNOLOGIES LIMITED — Interim / Quarterly Report 2020

Jan 30, 2020

(ASX:CT1)

ASX ANNOUNCEMENT Quarterly update and cashflow

Highlights:

• Cash receipts increased 53% on previous quarter

• $5.165m raised from the rights issue and two tranche strategic placement

• Strategic Partnership agreements signed targeting $15m in new revenues to 31 December 2021

• Established Beijing office and business development team

• No material business impact from Coronavirus

• Growing sales pipeline from existing business and strategic partners

31 January 2020 – IoT solutions company, CCP Technologies Limited (ASX: CT1) (“the Company”) is pleased to provide a summary update on its activities in the December quarter to complement the Appendix 4C attached.

During the quarter the Company focused on:

• New and existing development services projects

• New product sales to new and existing customers

• The rights issue launched and completed across Oct – Nov 2019

• The strategic placements and partnership agreements announced in Dec 2019

• Preparing the business to service the anticipated growth in the 2020 CY

Notable points to assist in reading the Appendix 4C

Cash receipts for the quarter were up 53% on the previous quarter, that as flagged in the September quarterly report primarily reflected the balancing of timing differences of payments received from project services contracts.

Aged payables accrued in previous quarters totalling $154k were cleared and subtracting that figure from the gross payments produces an underlying operational spend for the quarter of $417k and net of cash receipted during the quarter is $250k.

The Company raised $3.459m from the rights issue completed in November 2019 as reported in the Appendix 4C. Further and pursuant to the strategic placement announced on 11 December 2019 the Company has received an amount of $840k (Tranche 1) and is contracted to receive a further $866k (Tranche 2) that the Company anticipates to receive in early March 2020 subject to shareholder approval.

Business Operations

New development contracts commenced during the December quarter for client businesses involved in smart cities and education whereby the Company is enabling those businesses with development services completed in Bangalore by the

www.ccp-technologies.com

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Company’s wholly-owned IoT development team and managed by the Melbourne based management. The pipeline of development projects continues to increase.

Similarly, the Company continues to increase sales of the temperature monitoring both from staged rollouts with existing customers as well as new customers in the medical sector.

The Company is looking to hire and invest in its operational capabilities on a ‘just-intime’ basis in regard to preparing for the anticipated growth contemplated by the revenue targets set out in the partnership agreements announced 11 December 2019 as well as new contract wins as the existing pipeline prospects move through the sales process.

The Company has established an entity, office and team in Beijing, added a small number of key hires in Australia and additional skill-sets in Bangalore. The Company has a strong sales pipeline including a number of opportunities at project scope and quote stage for major development projects arising from the strategic partnership agreements.

Coronavirus

Several members of the board and management have recently returned from Beijing working with the initial founding members of the Company’s local team. The Company advises that aside from the extension of the Chinese New Year holiday and the associated business closures, that none of the Company’s staff have been adversely affected by the Coronavirus and that all necessary precautions and relevant public health recommendations and directives are being followed.

Extraordinary General Meeting

In the coming days the Company hopes to be able to release the Notice of Meeting for the Extraordinary General Meeting that was flagged in the ASX announcement released 11 December 2019. Following this the Company will be in a position to provide further details on its strategy for 2020.

The CCP board thanks all shareholders for their continued support and interest in the Company.

• For further information please contact: enquiries@ccp technologies.com

About CCP Technologies

CCP Technologies designs and supports innovative IoT solutions for industry and government.

The Company strives to create and monetise sensory and cloud platform technologies that contribute to the improvement of humanity including in the areas of health, industrial productivity, environmental preservation, education, safety and general efficiency.

The Company is Australian based with wholly-owned subsidiaries in India and China.

www.ccp-technologies.com