DATAWORKS GROUP LIMITED — Capital/Financing Update 2021

Apr 20, 2021

21 April 2021

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IXUP and DataPOWA launch ‘POWA index 2.0’ and secure first commercial customer

HIGHLIGHTS:

• IXUP’s collaboration partner DataPOWA Limited (DataPOWA) signs commercial agreement with Concacaf for deployment of jointly developed POWA index 2.0 technology product offering, which includes IXUP’s secure data collaboration platform (DataPOWA Agreement)

• Concacaf is the prestigious US-based international FIFA football confederation, one of the six continental FIFA football confederations which has 41 member associations from Canada, USA and Mexico in the north to the Caribbean and French Guiana in the south

• DataPOWA Agreement represents the first commercial success under the previously announced collaboration agreement between DataPOWA and IXUP

• Highlights the significant strategic partnering opportunity with DataPOWA as a fast and effective pathway to market for IXUP’s technology

• DataPOWA Agreement reflects modest commercial returns to IXUP, however has significant strategic value

• Successful product launch of POWA index 2.0 confirms market demand for new product offering

• DataPOWA Agreement opens up potential to expand product and client offerings in the Americas and provides a valuable reference site for FIFA member associations and other significant sporting organisations looking for similar technology-driven competitive advantage

• Recent SOC 2 compliance for IXUP technology platform proves timely for US market opportunities

• Positions IXUP as a technology supplier to the fast-growing sports markets of the Americas, aligning with the stated intention to position IXUP for exposure to the growing digital sports gaming and wagering sector in the USA

IXUP Limited (ASX: IXU) (‘IXUP’ or the ‘Company’), is pleased to announce that its collaboration partner DataPOWA, has signed a 3 year commercial contract with globally renowned international sporting body Concacaf (‘the DataPOWA Agreement’). The DataPOWA Agreement is strategically significant to the commercialisation of IXUP’s secure data collaboration platform (‘the IXUP Platform’) and represents the first commercial deployment of IXUP’s technology.

Concacaf is one of FIFA’s six continental football confederations, servicing 41 member associations across North America, Central America and the Caribbean and providing an initial strategic commercial deployment point in the USA, for IXUP and DataPOWA’s new joint product offering called the POWA index 2.0. The POWA index 2.0 includes DataPOWA's unique Artificial Intelligence (AI) sponsorship valuation and digital benchmarking technology, as well as IXUP’s secure database collaboration technology. Together these technology platforms create a unique set of valuation and benchmarking tools which provide users with the unique ability to collaborate and analyse multiple data sets while they remain securely encrypted, including first-party and third-party enrichment data (‘the POWA index 2.0’).

While the precise commercial terms of the DataPOWA Agreement are commercially sensitive between DataPOWA and Concacaf, IXUP will, pursuant to its back-to-back arrangement with DataPOWA, receive a minimum of USD$ 9,000 from DataPOWA in relation to this agreement. DataPOWA will also pay IXUP additional revenue in relation to this agreement if the IXUP Platform is used beyond the base number of use cases included in that agreement, calculated at USD$1,500 per additional use.

While this represents a relatively insignificant direct revenue monetisation return for IXUP, (and reflects discounted pricing to assist with market entry), it importantly delivers significant strategic value and the potential opportunity to expand in scale and scope in the Americas. It is also expected that the pricing associated with the use of the IXUP’s Platform will be adjusted in due course to reflect the significant value of the insights to end-customers which are able to be delivered through its utilisation.

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The sports data and sports sponsorship markets are also adjacent to, and strategically intersect with, the booming digital sports betting market which is rapidly growing in the USA. This first deployment, whilst modest in flow through revenue for IXUP, is viewed as a beachhead for IXUP in this deep, growing and potentially lucrative sports market in the Americas.

POWA index 2.0 – first commercial deployment

As detailed to the market on 8 February 2021, with the assistance of IXUP's strategic advisor Tekkorp Capital, IXUP entered into a data analytics and insights collaboration agreement with UKheadquartered DataPOWA, to pursue data analytics and marketing opportunities within the international sports marketing and sports sponsorship sector. Collaboration efforts between IXUP and DataPOWA have since identified the potential to develop a greatly enriched joint technology offering, through the application of IXUP's secure data collaboration technology to DataPOWA’s existing digital valuation and benchmarking product, the POWA index. The initial outcome of this joint development effort between IXUP and DataPOWA has been the development of what is now known as the POWA index 2.0, which sees current and potential DataPOWA customers offered access to a new and unique suite of co-marketing and intelligence outcomes that allow them to leverage their respective first-party data and third-party enrichment data sources amongst trusted, but previously discrete, data sets. These data sources previously remained separate due to the obvious risks related to potential unauthorised exposure while the data was in use, a risk which is virtually eliminated through the use of the unique IXUP homomorphic encryption technology.

Overview of POWA index 2.0 (Joint Technology Product Offering between IXUP and DataPOWA)

The combination of IXUP and DataPOWA technologies to create the POWA index 2.0, sees the IXUP platform being offered to customers along with DataPOWA’s POWA index product, as a joint offering. This new offering can now deliver insights across datasets not previously capable of being shared and analysed, in addition to the cross-referencing opportunities with other enrichment data and first-party data sets which can provide customers with a more comprehensive set of co-marketing opportunities. The IXUP homomorphic encryption technology represents an enabler of data set sharing opportunities, which were previously considered too risky due to the potential for inadvertent or malicious data exposures while the enrichment and first-party data was being analysed.

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By combining IXUP and DataPOWA’s technology platforms, customers will enjoy the ability to identify database matching opportunities, which can then inform significantly as to the socio/demographic attributes of the jointly identified parties, allowing for much richer co-marketing opportunities and richer insights.

To see a video providing a further explanation as to the capabilities of the breakthrough POWA index 2.0 product offering, please click here.

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Update on Other Commercialisation Efforts of DataPOWA 2.0

IXUP and DataPOWA are excited by this first contract win and remain optimistic as to the potential to engage with other significant global sporting organisations regarding the deployment of POWA index 2.0 with a particular interest in the American markets. Updates on these efforts are expected to be announced in due course.

IXUP’s Managing Director Marcus Gracey said : “After completing a recent strategic review at IXUP, it became clear that there was an immediate opportunity to pursue an accelerated pathway to market, through a partnering strategy with DataPOWA. The DataPOWA relationship is a true win-win arrangement that provides DataPOWA with a new and unique technology-driven competitive advantage, along with a valuable additional product offering for its customers. At the same time, it provides IXUP with a fast, effective and scalable pathway to market for its core technology in the very large and lucrative sports market vertical. The DataPOWA Agreement, while relatively insignificant in revenues for IXUP, is a strategically important agreement providing a landing in the US market for IXUP’s technology, via the POWA index 2.0 joint product offering from DataPOWA which includes the IXUP Platform. Given that COVID 19 has adversely impacted the revenues of sporting clubs and organisations around the world, the POWA index 2.0 product offering is a timely and unique solution to assist these parties with creating new revenue streams via the commercialisation of their data assets”.

This announcement has been approved for release by the Board of IXUP.

-ENDS-

For enquiries regarding this release please contact:

IXUP	Investor relations
Marcus Gracey	Julia Maguire
CEO – IXUP Limited	Executive Director – The Capital Network
contact@ixup.com	julia@thecapitalnetwork.com.au
	+61 02 8999 3699

About IXUP

IXUP Limited (ASX:IXU) (pronounced ‘eyes up’) is a pioneering technology company that specialises in analytics over data that remains encrypted. IXUP’s privacy preserving analytics platform can help solve important research, business and policy problems by allowing data sets from different parties to be combined and analysed in a secure environment with full control. While conventional encryption techniques protect data when it is stored or in transit, they fail to protect data when it is in use. The IXUP platform uses advanced encryption and compute techniques including homomorphic encryption, that enables analytics over data without ever needing to decrypt it, preventing data from being vulnerable to loss and misuse.

To learn more, please visit: www.ixup.com. IXUP’s registered address is Level 3, 5-7 Ross Street, Parramatta NSW 2150.

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ANNEXURE

The following section has been prepared to assist readers to understand the process and logic in the bringing together of the IXUP secure data collaboration platform and DataPOWA’s POWA index, to form the POWA index 2.0 joint product offering. It is provided for informational purposes only and should not be relied upon for any reason, nor taken to constitute either a comprehensive description as to the nature, functionality or performance of the POWA index 2.0 or any guarantee by IXUP or DataPOWA as to any of those matters.

Overview of DataPOWA’s Core Product Offering – the POWA index

The core DataPOWA product offering is known as ‘the POWA index’, which forms the basis of ‘the POWA index 2.0’ product offering. It is a platform built on robust and highly scalable cloud infrastructure with deep learning algorithms that are continuously analysing over 2.4 trillion data points a day, across 60 unique datasets, incorporating a wide range of digital and media signals, social networks, search engines, OTT, news media and official websites. The data points are indicators of the impact and success of a sponsorship platform, creating POWA index scores, rankings, comparisons (globally, territorially or within a league) and enabling predictive analysis. The updated POWA index (POWA index 2.0) importantly also includes access to IXUP’s secure data collaboration platform.

• POWA index 2.0 is a new, fit for purpose sponsorship ‘currency’

• ▪ A measurement of power, AI valuation, prediction and ranking system

• ▪ 2.4 Trillion data points/day from 60 data sets make up the POWA index ▪ Social Media ▪ Search Engines ▪ Team Performance ▪ Media & News References ▪ Website & App Data ▪ Demographics

• ▪ 1 summary POWA score

The POWA index provides the ability to Rank, Compare and Value any sports rights and sponsorship assets, using an algorithm, that were previously analysed, valued and traded by humans in a highly inefficient process that often led to variable outcomes with limited financial accountability.

Rank

The POWA index allows for global/country/sport ranking of all sport sponsorship platforms, a function that was previously only undertaken on the asset being valued, proving only limited relative valuation information and insights.

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Compare

The POWA index is delivered via a digital benchmarking comparison dashboard, which provides for intuitive comparison data delivered direct to the end customer in real time. The functionality and ease of use of the POWA index dashboard provides for significant customer engagement and a richness of intelligence well beyond the initial asset valuation effort, which is expected to assist with market acceptance and take up of the product.

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Value

The POWA index delivers a maximum 5-day turnaround sponsorship valuation report, which compares with traditional industry techniques that take numerous weeks or even months, with limited ability for customer audit and almost no scope for customisation. The excessive cost of traditional techniques also means that regular valuation efforts are not considered economic. The POWA index however, can unlock the ability for much more frequent valuations and hence greater knowledge of changes in value over shorter time periods which allow increased frequency of asset based transactions.

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Overview of the IXUP Core Product Offering – IXUP’s secure data collaboration platform

The IXUP Platform, now incorporated into ‘the POWA index 2.0’, is a cloud deployed enterprise solution for privacy preserving inter and intra organization data collaboration. The IXUP Platform provides a secure working environment enabling matching and other computations across encrypted datasets from multiple organisations to gain previously unattained insights.

Utilising next-generation homomorphic encryption, the IXUP Platform encrypts and connects data from multiple sources, solving the problems of data loss and misuse by enabling data owners to remain in complete control of their data.

The IXUP Platform can also accommodate unlimited sources of enrichment data in addition to customers’ first-party data. For example, IXUP can if requested, access detailed demographic information on individuals and households across 64 countries around the world via third party arrangements. When added to customers’ first-party data and the outputs of the POWA index, this greatly enriches insights for customers. Through the application of these additional data sets, it is expected that the potential up-take of the IXUP Platform, via the POWA index 2.0 product offering, will be greatly enhanced.

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