COSOL LIMITED — Investor Presentation 2021

Aug 25, 2021

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FY’21 Annual Results Investor Presentation

August 2021

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Important Notices & Disclaimer

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USE OF THIS DOCUMENT

You must read the following notices before reading or making any use of this document or any information contained in this document. By continuing to read, use or otherwise act on this document, you agree to be bound by the following terms and conditions, including any modifications to them, and make or give the acknowledgements, representations or warranties (as applicable).

This presentation is provided for information purposes only. The information in this presentation is in a summary form, does not purport to be complete and is not intended to be relied upon as advice to investors or other persons. The information contained in this presentation was prepared by COSOL Limited (COSOL) as of its date, and remains subject to change without notice. This presentation has been provided to you solely for the purpose of giving you background information about COSOL.

This presentation should be read in conjunction with COSOL's other periodic and continuous disclosure announcements lodged with ASX, including COSOL’s Annual Report for the financial year ended 30 June 2021.

NOT FOR DISTRIBUTION OR RELEASE IN THE UNITED STATES

This document is not to be distributed or released in the United States.

FORWARD-LOOKING STATEMENTS

This presentation may include forward-looking statements. Such statements can generally be identified by the use of words such as 'may', 'will', 'expect', 'intend', 'plan', 'estimate', 'anticipate', 'believe', 'continue', 'objectives', 'outlook', 'guidance‘, ‘forecast’ and similar expressions. Indications of plans, strategies, management objectives, sales and financial performance are also forward-looking statements.

Such statements are not guarantees of future performance, and involve known and unknown risks, uncertainties, assumptions, contingencies and other factors, many of which are outside the control of COSOL. No representation is made or will be made that any forward-looking statements will be achieved or will prove to be correct. Actual results, performance, operations or achievements may vary materially from any forward-looking statements. Circumstances may change and the contents of this presentation may become outdated as a result. Readers are cautioned not to place undue reliance on forward-looking statements and COSOL assumes no obligation to update such statements.

No representation or warranty, expressed or implied, is made as to the accuracy, reliability, adequacy or completeness of the information contained in this presentation.

PAST PERFORMANCE

Past performance information given in this presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance.

NOT FINANCIAL PRODUCT ADVICE OR OFFER OF SECURITIES

This presentation is not, and is not intended to constitute, financial advice, or an offer or an invitation, solicitation or recommendation to acquire or sell COSOL shares or any other financial products in any jurisdiction and is not a prospectus, product disclosure statement, disclosure document or other offering document under Australian law or any other law. This presentation also does not form the basis of any contract or commitment to sell or apply for securities in COSOL or any of its subsidiaries. It is for information purposes only.

COSOL does not warrant or represent that the information in this presentation is free from errors, omissions or misrepresentations or is suitable for your intended use. The information contained in this presentation has been prepared without taking account of any person’s investment objectives, financial situation or particular needs and nothing contained in this presentation constitutes investment, legal, tax or other advice. The information provided in this presentation may not be suitable for your specific needs and should not be relied up on by you in substitution of you obtaining independent advice. Subject to any terms implied by law and which cannot be excluded, COSOL accepts no responsibility for any loss, damage, cost or expense (whether direct, or indirect, consequential, exceptional or special damages including but not limited to loss of revenue, profits, time, goodwill, data, anticipated savings, opportunity, business reputation, future reputation, production or profit, any delay costs, economic loss or damage) incurred by you as a result of any error, omission or misrepresentation in this presentation.

PRESENTATION OF INFORMATION

All currency amounts in this presentation are in Australian dollars unless otherwise stated. "FY" refers to the full year to 30 June 2021. Amounts in this document have been rounded and any differences between this document and COSOL's financial statements are due to rounding.

AUTHORISATION

This presentation is dated 26 August 2021, and was authorised for release by the Board of COSOL.

For more information, please contact: Mr Ben Buckley, T +61 409 405 550, E ben.buckley@cosol.com.au

COSOL Limited ABN 66 635 371 363 Level 3, 201 Leichhardt Street, Spring Hill QLD 4000

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COSOL | FULL YEAR RESULTS FY'21 | INVESTOR PRESENTATION | AUGUST 2021 2
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DATA
MAINTENANCE
DATA
MONITORING
DATA
ANALYTICS
DATA
MANAGEMENT
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DATA
INSIGHTS
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Company Overview

COSOL is a global provider of proprietary digital solutions to asset intensive industries. We drive quantifiable business improvements through the enhanced use of data and data analytics.

People 160 Clients 68 Share Price $0.64 Market Cap $84.3m

Locations:

HQ & Asia Pacific Brisbane North America Denver

As at August 25, 2021

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COSOL | FULL YEAR RESULTS FY'21 | INVESTOR PRESENTATION | AUGUST 2021 3
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COSOL Limited – FY’21 Financial Highlights

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Group revenue of $33.58m – up 51% year on year
Group Group EBIT of $5.52m – up 41% year on year
Results Group EBIT margin - 16.45%
Revenue = $33.58m NPAT of $3.99m - up 39% year on year
EBIT = $5.52m
NPAT = $3.99m Strong Balance Sheet - cash balance of $4.18m and net debt of $2.3m
Full year final dividend = 1.0 cents
Total Annual Dividend = 1.5 cents
Basic EPS = 3.06 cents per share
(Fully Franked)
Fully franked final dividend of 1.0 cents per share
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NB : Financial highlights and metrics are presented on a proforma basis which includes the full year results of COSL Australia Pty Ltd which was acquired in January 2020

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COSOL | FULL YEAR RESULTS FY'21 | INVESTOR PRESENTATION | AUGUST 2021 4
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Full Year FY’21- Operating Highlights

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During FY’21, COSOL Limited was able to grow despite the challenges presented by COVID 19 and through organic growth, acquisition and the expansion of our capabilities and proprietary digital solutions deliver another strong year of operating highlights.

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1
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• 2 3

• • • • Revenue growth Acquisition Department of of 21% completed in Defence extension September 2020 on SAP to S4 data

• • EBIT growth of migration

• EBIT growth of migration 25% • Largest provider of Ellipse Managed • Urban Utilities

• • Strong Services in North application and performance of America system support

• Strong Services in North application and performance of America system support underlying • •

• operating Strong IP acquired Transgrid ERP and business units in Evergreen, EAM replacement Australia and Copernicus and North America other productivity • Anglo Nickel data tools migration from SAP ECC6 to SAP S/4

• • Blue Chip Client Hana base

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4 5 6
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• New partnership • CleanCo data • COSOL RP agreement to migration project Connect LDV provide Professional • Anglo Nickel • COSOL RP services to Client Connect DQA base • Department of Defence • COSOL RP

• • Department of Connect ECC2S4 Defence - Ellipse • OK Tedi EAM system • COSOL support Evergreen • COSOL Copernicus

• COSOL Add Ons

• Ioneer - Copernicus

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COSOL | FULL YEAR RESULTS FY'21 | INVESTOR PRESENTATION | AUGUST 2021 5
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FY’21 Group Financial Performance vs previous periods*

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Group Revenue Growth Earnings Before Interest & Net Profit After Tax
of 51% Tax up 41% up 39%
$5,525,060
$33,583,739 $3,997,793
$3,931,631
$2,880,046
$22,168,014
$2,759,978
$1,984,001
$13,507,233
FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021 FY 2019 FY 2020 FY 2021
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Earnings Per Share (cps)

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3.06
2.09
FY 2020 FY 2021
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* Financial highlights and metrics are presented on a proforma basis which includes the full year results of COSL Australia Pty Ltd which was acquired in January 2020

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COSOL | FULL YEAR RESULTS FY'21 | INVESTOR PRESENTATION | AUGUST 2021 6
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Full Year FY’21 Financials – Profit and Loss

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COSOL Group Profit & Loss	% vs Fy'20	$000's
Total Revenue	51%	33,584
Gross Profit		12,306
Gross Profit Margin		36.6%
EBITDA		6,153
EBITDA Margin		18.3%
Depreciation & Amortisation		(628)
EBIT	41%	5,525
EBIT Margin		16.45%
Finance Costs		(132)
NPBT	59%	5,393
Tax		(1,395)
NPAT	39%	3,998
EPS (cents)		3.06
Dividends (cents)		1.00

Notes:

• COSOL North America consolidated from 1 September 2020

• COSOL North America Contributed $A 6.8m revenue and EBIT of $A 1.1m

• COSOL APAC revenue increased 21% on a full year normalised proforma basis

• COSOL APAC EBIT increase 25% on a full year proforma normalised basis, (excluding share-based payments of $300K and DD costs of $160K)

• EBIT Margin of 16.5% consistent with half year

• Depreciation on plant and equipment was $186K in FY21 and Right of Use Assets $436K.

• COSOL has not received any JobKeeper payments in either FY20 or FY21

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COSOL | FULL YEAR RESULTS FY'21 | INVESTOR PRESENTATION | AUGUST 2021 7
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Full Year FY ‘21 Financials – Cash Flows

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Group cash flow:

Notes:

Cash Flow from Operations Receipts from customers Payment to suppliers Other operating cash flows Income taxes paid Net cash flow from operating Cash flow from Investing Payment for purchase of business Deferred consideration Other investing Net cash flow from investing Cash flow from Financing Proceeds from Issue of shares Proceeds from net bank borrowings Repayment of lease liabilities Dividends paid Net cash flow from financing Net increase / (decrease) in cash Cash at beginning of year Exchange rate movements on cash CASH AT END OF YEAR	(,000) 32,612 (29,246)
	3,366 183 (1,685)
	1,864 (1,607) (3,704) (179)
	(5,490) 2250 (522) (659)
	1,069 (2,557) 6,774 (33)
	4,184

• Cash from operations impacted by

• Accrued revenue of $2M on milestone-based project work. This includes $800K for the Department of Defence project in partnership with IBM – payment due in July 2021

• Debtor days increased on the prior year primarily due to slower collections from some international clients serviced from Australia

• Income taxes paid of $1.68M exceeded our income tax expense of $1.4M. We expect lower net income tax payments in early FY22.

• Cash from investing included $3.7M for deferred consideration for Australian business and $1.6M for the acquisition of the U.S. business.

• Australian business vendors received earnout payment due to business exceeded earnout EBIT targets

• Payment of inaugural dividend of $660K

• Cash from financing included a net borrowing of $2.25M

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COSOL | FULL YEAR RESULTS FY'21 | INVESTOR PRESENTATION | AUGUST 2021 8
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COSOL – Net Debt*

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Net Debt (including deferred consideration)

Notes:

Cash & Bank	$4,184
Less Current
Bank Loan	$1,000
Deferred Consideration	$3,061
Lease liabilities	$264
Less Non Current
Bank Loan	$1,250
Deferred Consideration	$898
Lease Liabilities	$18
Total Borrowings & Leases	$6,491
Net Debt	$2,307

• Net working capital is $3.1m at 30/6/21

• Net Debt of $2.3m

• Bank borrowings of $2.25m

• Total Deferred consideration includes

• COSOL Australia vendors of $2.8m

• COSOL North America vendor of $2.3m

• Deferred Consideration for the COSOL North America Earnout is 50% of total earnout potential as half will be paid in COSOL shares

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COSOL | FULL YEAR RESULTS FY'21 | INVESTOR PRESENTATION | AUGUST 2021 9
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Full Year FY’21 Financials Revenue Segments

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Revenue by Service Revenue by Sector
Public
Infrastructure
Support & 13% Utilities
Managed 24%
Services Product &
30% Product Services
35%
Defence
23%
Professional
Services
Mining
35%
40%
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Revenue by Geography

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COSOL North
America
20%
COSOL APAC
80%
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NB: Includes COSOL North America for 10 months

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Our Services and Solutions

COSOL is the largest Ellipse ABB enterprise software managed service provider in Asia Pacific and North America. In addition, we maintain networks, relationships and capabilities with industry-recognised solution providers such as SAP, IFS, Microsoft and major System Integrators such as IBM, Accenture, DXC, Delloitte and EY.

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Market Digital Products Delivery Specific Services
Segments & Solutions Suite Practices and Solutions
Enterprise Asset Management
Enterprise Asset Solutions and Services
Advisory, Implementations, Upgrades, Support
Management Services
RP Connect
Advisory, Quality Assessments, Migrations, Legacy Data Management
Evergreen
Copernicus Data and Digital Solutions
Enterprise Data Asset Add Ons - data Management
Process Improvement, Change Management, Training, ICT Benchmarking
Management Services - business improvement
- data driven digitalisation
Advanced Analytics, Automation, Artificial Intelligence
EAM and non-EAM Application Management Services
Service Management
Managed Services - applications
- infrastructure
Desktop, Datacentre, Telecommunication and Cloud Management Services
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COSOL | FULL YEAR RESULTS FY'21 | INVESTOR PRESENTATION | AUGUST 2021 11
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Our Major Clients

Our major clients represent some of their industry sectors most prominent blue-chip organisations and provide strong referability for the attraction of new clients and are critical to their nations infrastructure.

Asia Pacific

North America

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COSOL | FULL YEAR RESULTS FY'21 | INVESTOR PRESENTATION | AUGUST 2021 12
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Client Showcase

Our work with the Australian Government – Department of Defence and CleanCo demonstrate our unique and proprietary capabilities in multiple market segments

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COSOL trusted as the sole provider to ensure the ongoing resilience and reliability of their EAM platform as well as to deliver the End-to-End Data Migration for Australia’s largest SAP S4 transformation project.

COSOL, jointly with Hitachi ABB Power Grids, secured a significant contract with the Department of Defence to ensure the on-going resilience and reliability of the mission critical Ellipse EAM system in supporting Defence’s immediate and mediumterm operational requirements. COOSL upgraded a number of peripheral applications/system components enabling Defence to maintain currency, supportability and interoperability across their platforms.

In addition to ensuring the on-going support of their EAM platform, COSOL secured a multi-year deal with Defence through our partnership with IBM, to provide all data migration services to the largest SAP S4 transformation program in Australia.

COSOL’s proven expertise in professional data migration and proven proprietary platform, RPConnect®, will be utilised for its ability to integrate data from multiple systems.

COSOL’s RPConnect ® delivers award winning SAP to S4 Transformation for newly established Clean Energy Provider CleanCo.

CleanCo Queensland (CleanCo), newly formed in 2019, is a Queensland government-owned low-emissions energy generator and retailer partnering exclusively with large commercial and industrial (C&I) energy customers in Queensland.

As part of the formation of CleanCo, assets were acquired from Stanwell Corporation and CS Energy. As with many divestitures, systems were provided to CleanCo under transitional service agreements until new processes and systems could be established for CleanCo to manage these assets and deliver their services.

COSOL was engaged by CleanCo to deliver a complex data migration which required the extraction of individual generation assets from existing operators, Stanwell and CS Energy, into the new CleanCo SAP S/4HANA platform

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Client Showcase

OK TEDI Mining and Ioneer demonstrate our capability to work across multiple geographies and deploy our skills to work with mature mining companies and those who are in their embryonic stages

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COSOL-acquired proprietary digital solution, Copernicus, selected to support the growth of pioneering lithium miner Ioneer.

Ioneer Ltd was founded in 2001 and is headquartered in Sydney, Australia. The name Ioneer reflects the organisation’s aim to be pioneers in producing materials for a sustainable future. The company is developing a Nevada, USA mine site to be a future producer of lithium-boron.

The COSOL Copernicus solution has been specifically designed to support greenfield mining organisations out of the box and delivers incremental capability as the organisation matures through the different phases from pre-feasibility to operation ensuring that expenditure on enterprise systems is aligned with the realisation of the operating cash flows.

Utilising COSOL’s proven proprietary digital solution, Copernicus, has provided Ioneer with a rapid deployment model based on best practices and enhanced services for their Hitachi Ellipse Enterprise Asset Management (EAM) and Ellipse Analytics for business intelligence and reporting.

COSOL partners with Ok Tedi Mining Limited to develop and manage processes to manage COVID-19 testing and tracking, management of sensitive personnel data and enablement of remote working.

Ok Tedi Mining Limited (OTML) is a State-owned company operating an open-pit copper, gold and silver mine in the Star Mountains, Western Province, Papua New Guinea (PNG). In addition to the mine and mill, OTML operates the township of Tabubil, a power station, and a range of other assets.

COSOL and OTML have a long partnership having worked together since 2001. COSOL has provided a broad range of business improvement advisory services during this period including managed services, an EAM – Environment, Health, Safety and Management (EHSM) project, and advisory services supporting the OTML Operational Transformation project.

Completely new challenges emerged in 2020 and COSOL was able to rapidly pivot to focus on supporting the COVID-19 response. The COSOL team worked seamlessly and quickly with OTML to develop and manage entirely new processes such as COVID-19 testing and tracking, management of sensitive personnel data and enablement of remote working.

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COSOL | FULL YEAR RESULTS FY'21 | INVESTOR PRESENTATION | AUGUST 2021 14
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The Year Ahead – FY’22

We continue to see significant growth potential in FY’22 . Our growth is built around 5 strategic pillars executed across multiple territories with a focus on North America and Asia Pacific and our pipeline is strong.

• Leverage dominant Acquisition strategy Drive RP Connect

• Expand and Grow position in Ellipse will expand digital license sales and

• our presence in EAM market solutions and other proprietary

• North America segment services digital solutions

• • North America is the • Agreement for “first right • Current pipeline of • Build on success of RP Connect suite of tools

• largest digital of refusal” for HAPG acquisition opportunities transformation market clients for Professional is strong • RP Connect Data globally services presents • Will aim to acquire on • Quality assessmentRP Connect

• • significant growth Acquisition of AddOns the following criteria Legacy Data vault opportunity – in APAC

• Inc provides a solid • Geography • RP Connect data and other regions

• platform for growth • migration

• • Strong Focus on driving • Access to HAPG client Next generation solutions • Grow Evergreen sales RP Connect sales channel presents • EAM Platforms into Asia Pacific opportunity for sales of

• through existing and other COSOL IP and • Managed • Leverage Copernicus new clients services applications EAM/ERP system into

• • Launch our SAP • Core IT services Asia Pacific capability in North • We will continue to be • Drive growth of COSOL America fiscally disciplined in our AddOns – suite of bulk selection data productivity tools

Grow our footprint within our Major Client Base

• Strong growth opportunities coming from within existing client base

• • Significant cross sell/upsell opportunities within existing client base have been identified through the Addons acquisition

• • National Critical Infrastructure nature of client based proving resilient to COVID

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COSOL | FULL YEAR RESULTS FY'21 | INVESTOR PRESENTATION | AUGUST 2021 15
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Thank you