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CPT GLOBAL LIMITED AGM Information 2022

Nov 13, 2022

64642_rns_2022-11-13_e290b6af-6a61-4d76-a584-723e9feca759.pdf

AGM Information

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ASX ANOUNCEMENT

CPT GLOBAL LIMITED (ASX: CGO)

14 November 2022

Investor Brief and 2022 Annual General Meeting Presentation

Please find enclosed a copy of the Investor Brief and 2022 Annual General Meeting Presentation for release to the ASX Market Announcements Platform.

This announcement has been authorised for release by the Chairman of CPT Global Limited.

For further information please contact:

Fred Grimwade Chairman T: +61 3 9684 7900 E: [email protected] http://www.cptglobal.com/

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+61 3 9684 7900

3/818 Bourke Street, Docklands, VIC 3008

www.cptglobal.com

1

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Investor Brief and 2022 AGM Presentation

Agenda

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About CPT Global

2022 Full-Year Results

Notable Achievements

Strategy & Outlook Appendix

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About CPT Global Limited

Company overview

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CPT Global Limited helps clients solve complex technical challenges that transform their IT environments.

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Who we are

CPT Global is a publicly listed, global technology company that has served as a trusted advisor and long-term partner to Fortune 1,000 companies for nearly 30 years.

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What we do

We’re passionate about finding undiscovered savings, risks, and opportunities in technology to help clients get more value and performance out of their investments.

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How we do it

Our team of 150+ technology experts, many with more than 20 years of experience, possess a broad range of transformation, assurance, and optimization skillsets.

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Our Delivery Capabilities

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Modernise & Transform

Legacy Modernisation Modernisation Journey

Program & Technical Leadership Digital Transformation Strategic Advisory Automation & DevOps Enterprise Architecture

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Assure & Protect
QA & Test Management
MODERNISE & ASSURE &
Environment & Data Management
TRANSFORM PROTECT
Service Assurance
Performing Testing
Cyber & Information Security
Business & Service Continuity
Capacity Forecasting
OPTIMISE
Optimise
Cloud Migration & Optimisation
Performance Tuning & Engineering
Cost Optimisation & Management
Platform Optimisation
Application Optimisation & Migration
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Our Service Offerings

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Business-Focused Tech

  • Chargeback approach for technology

  • Alignment to transformation goals and initiatives

  • Regulatory oversight and

  • transparency

Cost Reduction

  • Mainframe and distributed platforms

  • Software licensing

  • Bill reconciliation

  • Line of business accountability

  • • Delivery process automation

Capacity Management

  • Enterprise framework

  • • Implementation • Capacity pain point and hot spot analysis

Stability & Resilience

  • Architecture

  • Root cause analysis

  • Remediation

  • Issue prevention

  • Focus on production stability

Delivery Assurance

  • Governance and oversight of delivery

  • Technical assurance

  • Performance assurance

  • • Quality assurance • Performance engineering

Application Modernisation

  • Dev/Ops

  • CI/CD

  • Mainframe applications

  • • Package implementation • Payment transformation initiatives

Legacy Migration

  • Strategy

  • Architecture

  • Cost models

  • Transition approaches

  • • Benefit and planning realization

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CPT Global

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CPT has provided consulting and delivery services to clients in 35 countries around the world. We’ve helped customers improve their IT delivery, speed, and capability in industries such as finance, telecommunications, utilities, health, education, government, and logistics.

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American Offices New York Toronto Sao Paulo European Offices London Munich Paris Milan Countries CPT has worked in

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Asian Offices Singapore Australian Offices Melbourne Sydney Canberra

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Why CPT stands out

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Above all, our dedication to building trusted client relationships sets us apart and informs everything we do.

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Lasting relationships

Our clients have a long tenure with us. They trust our expert team to help them as they expand their operations.

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Strategic execution

Helping clients achieve cost and efficiency improvements through our unique results-driven approach.

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Partnership mindset

Acting as a truly independent partner committed to delivering success on our client’s terms.

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Proven performance

Leading IT and transformation initiatives for many Fortune 1,000 companies and 80% of the world’s largest banks.

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Our Specialties

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Mainframe

CPT’s expert workforce has a deep knowledge of the mainframe which allows us to solve complex technical problems to help achieve our client’s business needs.

Our Mainframe Service Offerings focus on four key areas:

  • Maintain – Keep the mainframe running efficiently, effectively and reliably

  • Leverage – Use existing mainframe assets with new projects, applications and ventures

  • Modernise – Keep the mainframe relevant with the best technology for the job]

  • Retire – Say goodbye to your trusted workhorse: outsourcing, rehosting, decommissioning

Testing

Testing is about providing potential customers with a sneak peek into the capabilities of the product before it hits the market. Testing accounts for 50% of the modernisation process.

Major benefits to testing include:

  • Launch a flawless software application

  • Prevent targeted malware attacks

  • Improves user experience

  • Lowers costs

  • Improves time-to-market

  • Enhances quality of the application

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2022 Full-Year Results

FY2022 Key Numbers

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$29.9M $1.5M 5% Revenue Net Profit Net Profit Margin Revenue was up 19% in North The USA business contributed an Hemisphere as we continued to expand increasing proportion of profit to the work with two large clients. business. the market for talent tightening.

In North Hemisphere, margins continue to hold up despite pressure from clients and the market for talent tightening. In Australia margins are down due to customers slowing down their projects.

Revenue decreased 25% in Australia as a major project nears completion.

We have made investments in resources and systems where ROI will be in future years.

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Northern Hemisphere YoY

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2018 2019
$10.1M 14% $13.4M 20%
Revenue Profit Margin Revenue Profit Margin
Expansion of Account 1 from $2.2M in
Canada grew revenue 44%
FY18 to $6m in FY19 and the cross
USA grew revenue 45% and selling of services to Account 2
operating profit 29% resulted in a $3.8M increase in
revenue over FY18
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Europe reduced operating and selling costs by $566K

Successful transition of our near time payments expertise generated $1.4M of new revenue

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2020
$11.5M 17%
Revenue Profit Margin
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Growth was slower than expected due to COVID-19 as clients were delaying new work and onboarding became a challenge

However, there were no contracts cancelled or consultants laid off

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Northern Hemisphere YoY

Northern Hemisphere Growth

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2021 2022
$13.4M 28% $15M 25%
Revenue Profit Margin Revenue Profit Margin
Revenue in the US grew 35% from 5 out of our top 10 clients were
FY2020 based in North America
Travel costs dropped 87% as a result Maintained strong growth and
from COVID-19 generated around half of CPT’s
total revenue at attractive margins
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20000
15000
10000
5000
0
2018 2019 2020 2021 2022
Revenue
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Northern Hemisphere Growth
30%
20%
10%
0%
2018 2019 2020 2021 2022
Profit Margin
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*All numbers are is AUD

Australia YoY

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2018
$20.6M 17%
Revenue Profit Margin
Australia grew revenue 28% and
operating profit 26%
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2019
$14.1M 18%
Revenue Profit Margin
Revenue from Client 1 was less than
half of FY18
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No Major new clients were won or growth in existing clients to offset the revenue decline from Client 1

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2020
$13.3M 18%
Revenue Profit Margin
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The Australian dollar is still weak against the Euro, Pound, Canadian dollar and US dollar although it has come off the lows and finished the year at US$0.688 with an average for the year of $0.67. The FY20 budget was prepared with a rate of $0.72.

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Australia YoY

Australian Revenue

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2021
$19.9M 19%
Revenue Profit Margin
Australian revenue increased 51%
from the previous year
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Largest growth was contributed from the Government sector with new and existing clients

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2022
$14.9M 13%
Revenue Profit Margin
A major project in the Southern
region concluded and work at a
Federal Government client neared
completion
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First half of the year Melbourne experienced the longest and most restrictive lockdowns

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15000
10000
5000
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2018 2019 2020 2021 2022
Revenue
Australian Profit Margin
20%
15%
10%
5%
0%
2018 2019 2020 2021 2022
Profit Margin
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*All numbers are is AUD

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FY2022 highlights

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Our core business strategy, combined with our team’s innovation and agility, are the reasons for our success.

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LAUNCHED A NEW CHAPTER

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CONNECTING WITH CLIENTS

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EXPANDING PARTNERSHIPS

Luke Tuddenham spent his first year as CEO bringing his experience, drive, and new ideas to CPT.

With lighter travel restrictions, we were able to connect face to face with clients for the first time in a few years.

We partnered with Google Cloud to help increase our efforts in assisting clients transitioning from their legacy footprint to the cloud.

He has created a strategy that positions CPT for growth while ensuring that we are able to adapt to operating and business risks.

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These in-person interactions allow us to continue fostering these relationships and learn more about how we can help meet their business needs.

In response to our customer’s request, we continue to prioritize developing these partnerships which helps combine our consulting services and skills with industry-leading partner solutions that help CPT deliver success.

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Case Studies

Notable Case Study

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Fortune 500 Health Insurance Company

Challenges

  • Month end process took 16 hours to process 55K payments with manual intervention required to reboot various servers

  • Platform was experiencing latency in certain geographic locations

Cost of Services Length of Engagement $18M 11 years

  • ODH approach was expense match/merge of the daily activity (500K records) vs. 1 billion row table in Informatica taking 130 hours of processing each week

Solutions

  • Implemented recommendation to improve JVM garbage collection process

  • Identified opportunities to resolve application freezes

  • Provided an inventory of indexes that were unused for potential removal, impacting both the cost of storage and overall performance

Areas of Focus

  • eBill Oracle Tuning

  • Customer Support Desktop (CSD)

  • Modified SQL statements to optimize Join logic to avoid table space scans and adding missing criteria

Results

  • ODH

  • Oracle SQL Review

Saved 14 hours by Saved improving eBill Oracle >2hrs Tuning process to run in 130 less than 2 hours without hrs any server disruptions.

Improved approach to Improved response update ODH resulting >1sec time for long queries to process in minutes from over 1min to less vs. 130 hours/week than 1 second.

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Notable Case Study

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Priorities

Market Research Company

CPT was selected as the Test partner for the program which includes standing up teams across:

  • The leadership level

  • Salesforce stream

Cost of Services Length of Engagement $6M 18 months

  • Workday stream

  • Automation

Scope of Work

The scope of this engagement encompassed all aspects of the testing lifecycle, covering:

Overview:

The client is undergoing a large Corporate Transformation program to unify the organisation that has grown rapidly through acquisition. They are consolidating entities across almost 20 countries and introducing new platforms to drive the company.

  • Test Management

  • Test Automation

  • Overall Test Strategy

  • Reporting & Metrics

  • Organisation Structure

  • Environments & Data Co-ordination

  • Test Processes

  • Non-functional testing (Performance)

  • Test Management Tooling Testing as a Service

Goal

Assure a successful delivery of a large corporate transformation program

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Notable Case Study

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2018

Fortune 500 Financial Services Company

  • Started two major projects – both which ran for two years

  • Project 1 – Provided Technical Leadership & Guidance through webinar-passed trainings, reports, and sample programs

  • Project 2 – Provided MPS Support by standardizing production environments, running performance analysis on volume test, and provided automation support for migration

Cost of Services Length of Engagement $25M 8 years & counting

2020

• Started four major projects

  • Project 1 – Conducted a Mainframe Infrastructure Vendor Software Review/Cleanup

  • Project 2 – Reviewed plan to identify areas of potential risk and recommend mitigation

  • Project 3 – Developed approach to migration to COBL v6, compiled options and performed testing

A large majority of CPT clients have a long tenure with us. They trust our experts to guide them for multiple years after initially starting business with us.

  • Project 4 – Reviewed applications and improved resilience

2021

• Started three major projects

  • Project 1 – Assisted in GSP Modernisation by accelerating the conversion of data from legacy VSAM to DB2

  • Project 2 – Assisted in TSG Mainframe Engineering by providing knowledge training/transfer

  • Project 3 – Provided MQ/Messaging Services expertise to the engineering staff

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Strategy & Outlook

FY2023 Strategy & Outlook

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We have identified growth opportunities and strategies to invest in our people, software, solutions, and clients to deliver long-term success.

Increase our Sales Force

Given the higher margins and geographical footprint in the Northern Hemisphere, we plan to invest in growing our current sales team. This will help increase revenue and profits while allowing us to grow our client base.

Promote Modernisation

Utilizing our deep knowledge of the mainframe, we aim to inspire our Fortune 1,000 clients to trust CPT in assessing the most optimal solutions for them, which includes moving away from their legacy footprint and adapting to cloud-based technologies.

Invest in Tools, Processes & Software

We aim to fully document the IP and knowledge from our consultant base to ensure that we can retain and build upon it. We are taking this knowledge and putting it into repeatable processes and solutions so we can utilize it for years to come.

Strengthen our Mentoring Program

We will invest in our mentoring program, which enables new hires to learn first-hand from our experts. This program will continue to be a key strategic initiative as we hire to meet the evergrowing needs of our current and prospective clients.

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19

Promote Modernisation

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Why choose CPT as a modernisation partner?

CPT’s unique differentiator is its consultants.

Our team of expert consultants specialize in the mainframe and testing. They have the knowledge and skillsets to help our clients through their modernisation journey.

They are constantly working on projects in many different industries and across the globe.

Senior-level knowledge Passionate about solving CPT’s Consultants in legacy platforms as complex technical average 30+ years in well as challenges and their field with deep modern/emerging transferring knowledge & wide technical skills technologies to the client

Distinguished in their field, many CPT consultants are:

  • ITIL certified professionals

  • IBM GOLD-level certified

  • Speakers/presenters at major IT industry conferences

  • Authors of books/articles in respected technology publications

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Building Strong Partnerships

The CPT strategy is to be a trusted partner to our clients, capable of providing clear, independent advice on all aspects of mainframe computing.

We have invested time into building partnerships with key cloud providers and other software solution providers to help our clients modernise to the cloud with the assistance of a trusted mainframe partner.

Our Modernisation Partners

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Promote Modernisation

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Whether a customer needs to modernise their mainframe applications in place or migrate them to the cloud, CPT has the mainframe knowledge to help the clients and their service providers be successful.

CPT Helps Clients by:

  • Deal with the “Stranded MIPS” that can’t be easily migrated to the cloud

  • Embrace modern development and implementation techniques (DevOps, Automation)

  • Open and integrate mainframe applications with modern digital systems via the use of APIs, Microservices and Webservices

  • Improve resiliency and availability of applications via the exploitation of Parallel Sysplex/CICSPlex technology

  • Replace legacy technologies and implement direct interfaces, simplifying connectivity between mainframe and mobile and cloud applications

  • Optimise mainframe and cloud hosted applications to ensure efficiency and cost-effective post migration

  • Work together with large service providers to assure the successful delivery of mainframe modernisation and migration projects

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CPT’s Legacy and
Modernisation Services
Concept Design Build & Test Go Live
Solution
Expert Advice Assurance Optimisation
Assessment
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Clients come to CPT for expertise and skills to solve the problems and challenges they can’t solve themselves, or with their partners. We pride ourselves that we have successful implantations and deliveries that allows us a competitive edge over larger service providers.

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Promote Modernisation

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Mainframe Evolution CPT at the Forefront and Beyond

We see the demand for our services increasing over the coming years as the volume of transactions being processed by mainframes increases in the digital age. The Covid-19 lockdowns have accelerated this growth in transactions as people moved to online shopping and cashless transactions. This trend will see companies looking to optimise their mainframe environments while keeping control of the costs.

CPT’s Approach to Modernisation

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Roadmap
Business IT Strategy
Strategy
• Focused
• Priorities • Existing modernisation
• Objectives Capabilities initiatives
• Growth Plans • Skills • Treatment
• Application Value • Automation Plans
• Costs • Partners • Transition plan
• Compliance •• IntegrationSupportability from legacy to
concerns cloud

• Security Risks End of Life (EOL)
• End of Support
(EOS
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Increase our Sales Force

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Increasing Sales Force 25% in 2023

Benefits of Increasing Our Sales Force

  • Increase reach within our target industries

  • Continue boosting revenue and profits

  • Further establish CPT as industry leader

  • Grow our client base

  • Enable us to showcase our full skillset

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Invest in Tools, Processes & Software

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CPT is a team of 150+ experts with decades of experience. We pride ourselves on having world-class technical talent, many of which have been with us for at least 10 years.

Problem:

Solution:

We’re taking the deep knowledge from our experts and building them into tools. This allows us to pull information out of the mainframe and allows us to work with cloud partners to show them what the data means in terms of sizing and capacity in the cloud.

Working with Cloud providers, the common theme we notice is there is a significant gap in knowledge around how to measure capacity and forecast capacity requirements as they move from point A to point B.

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Tap into our expert Extract the IP and Put knowledge & the IP
consultant base who has knowledge from the into repeatable processes
been with us for decades consultant base & solutions
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Will play critical role as we
continue to recruit
younger talent
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23

Strengthen our Mentoring Program

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Strategically focusing on our mentoring and talent programs, we are helping to ensure that our future will possess the same unique “value proposition” that we currently offer to our clients.

Who are we recruiting? Why is this beneficial? CPT specializes in testing and the We have found that a barrier young mainframe. talent faces in many other Since we have experts in these areas, companies is that they are siloed in we are looking to bring in young one area of their institution. talent with experience in other areas Our mentoring program allows us to such as:

We have found that a barrier young talent faces in many other companies is that they are siloed in one area of their institution.

Our mentoring program allows us to strengthen the areas they are not as experienced in to help create a workforce with broad capabilities.

  • Networking

  • • Architecture

  • Infrastructure

What is the goal?

Expanding the capabilities of our workforce allows us to continue to uplift and support our clients and partners.

For our clients, we will be able to find solutions to complex problems to meet their business objectives.

For our partners, we can have a deep understanding of their software so we can use efficiently.

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Members in FY2022

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30%
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Members in FY2023

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Appendix

Our partner network

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We have developed a world-class partner network which combines our consulting services and skills with industry leading partner solutions to help CPT to deliver success to our clients. This group of partners allows us to hit each touch point of the modernisation process.

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v
Clients
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Disclosure

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This presentation contains general information about the activities of CPT Global (CPT) which is current as of October 2022. It is in summary form and does not purport to be complete. It presents financial information on both a statutory basis as well as information provided on a non-statutory basis.

This presentation is not a recommendation or advice in relation to CPT or any service offered by CPT and its subsidiaries. It is not intended to be relied upon as advice to investors or potential investors and does not contain all information relevant or necessary for an investment decision. It should be read in conjunction with CPT’s other periodic and continuous disclosure announcements filed with the Australian Securities Exchange, and in particular the results for the year ended 30 June 2022. These are also available at cptglobal.com.

No representation or warranty, express, or implied is made as to the accuracy, adequacy or reliability of any statements, estimates or opinions or other information contained in this presentation. To the maximum extend permitted by law, CPT is subsidiaries, and their respective directors, officers, employees and agents disclaim all liability and responsibility for any direct or indirect loss or damage which may be suffered by a recipient through use of or reliance on anything contained n or omitted with this presentation.

No recommendation is made as to how investors should make an investment decision. Investors must rely on their own examination of CPT, including the merits and risks involved. Investors should consult with their own professional advisors in connection with any acquisition of securities.

The information in this presentation is for general information only. To the extent that certain statements contained in this presentation may constitute “forward-looking statements” or states about “future matters,” the information reflects CPT’s intent, belief, or expectations as at the date of this presentation. Subject to any continuing obligations under applicable law or any relevant listing rules of the Australian Securities Exchange, CPT disclaims any obligation or undertakings to disseminate any updates or revisions to this information over time,

Any forward-looking statements, including projections, guidance on future revenues, earnings and estimates, are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. Forward-looking statements involve known and unknown risks, uncertainties and other factors that may cause CPT’s actual results, performances or achievements to differ materially from any future results, performance or achievements expressed or implied by these forward-looking statements.

Neither CPT, nor any other person gives any representation, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in this presentation will actually occur. In addition, please not that past performance is no guarantee or indication of future performance.

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Contact

[email protected] cptglobal.com cpt-global

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