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DATAWORKS GROUP LIMITED Investor Presentation 2021

May 20, 2021

64802_rns_2021-05-20_f5f68a15-e210-472b-bb4e-f5f22eaf824a.pdf

Investor Presentation

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I N V E S T O R P R E S E N T A T I O N

ACQUISITION OF DATAPOWA LTD

IXUP: the 'key' to unlocking the true value of data

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Marcus Gracey Managing Director & CEO

May 2021

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

Market Opportunity: IXUP as a data monetisation 'key'

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According to research by US-based Boston Consulting Group, the combination of data and advanced analytics could unlock more than $US1 trillion in new value this year alone

(The Business Research Company Report - May 2019)

Data related markets all in exponential growth:

  • Data Protection as a Service by 2027 $103bn ($15 bn in 2020)

  • Big Data Analytics Market by 2027 $105bn ($37bn in 2018)

  • Predictive analytics market by 2026 $ 22.1bn ($5.7bn in 2019)

  • Fan intelligence as a Service by 2022 $4bn

Big data market size revenue forecast worldwide 2011–2027 (in billion US. Dollars)

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IXUP's Secure Data Engine – facilitating secure data collaboration and analytics - a value multiplier for sensitive data previously unable to be commercialised

Uncommercialised data assets are the new 'Rembrandts in the attic' – IXUP holds the key to unlocking their value

2 Forecast revenue big data market worldwide 2011–2027

Transaction Opportunity

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  • Data is a new emerging international currency

  • IXUP's technology enables valuable business to business data collaboration

  • Tools to facilitate secure data collaboration

  • Demand for and value of sports data exponentially increasing

  • DataPOWA accelerates growth, delivers strategic market entry and an accelerated pathway to market for IXUP technology

becoming more necessary and valuable

  • IXUP is well capitalised and focussed on high growth international markets

  • Acquisition of DataPOWA structured for maximum shareholder return and minimal risk

  • World class advisory team

DataPOWA acquisition provides IXUP with a strategic landing in the international sports data market, an established client list and an express pathway to market for IXUP technology

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I N V E S T O R P R E S E N T A T I O N IXUP: BACKGROUND

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IXUP: background

IXUP Limited (ASX:IXU) (pronounced 'eyes up') was founded in 2011 and listed on the ASX in 2017.

IXUP Secure Data Engine enables:

  • Secure collaboration and analysis of sensitive data between multiple organisations and data sets - while that data remains fully encrypted

  • Compliance with data privacy, security and associated laws and protocols

Market opportunity:

  • Technology readiness aligned with exponential growth in uncommercialised data and the tightening of security and privacy protocols and laws

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Data
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5

IXUP Board and senior management

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Marcus Gracey

Julian Babarczy Non-Executive Chairman

Dean Joscelyne

Managing Director & CEO

Founder & Non-Executive Director

Julian was appointed as NonExecutive Chairman of IXUP Limited in November 2020. He has over 20 years’ finance and investment industry experience. Julian brings a unique set of skills to the IXUP board, possessing a deep and trusted network spanning the Australian financial industry, as well as a depth of experience in investing and funding high growth companies.

Marcus is an experienced executive and brings a diverse professional background in technology commercialisation, innovation, strategy, law and business to IXUP. Marcus has previously held senior roles within public and private companies across a variety of industry sectors in addition to having significant experience as a professional public company director and is also a chartered company secretary and governance professional.

Dean Joscelyne is an Australian technology entrepreneur who founded IXUP in 2011, taking it from a start-up to a listing on the Australian Stock Exchange in 2017. Dean’s vision and understanding of customer analytics and business processes led him to develop IXUP’s unique technology.

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Freya Smith Non-Executive Director

Freya is the General Counsel and Company Secretary for Claim Central Consolidated, an Australian headquartered global Insurtech. Both as a practicing lawyer and Company Secretary, Freya has counselled many of Australia’s leading and emerging companies on significant matters, including ethics, compliance, corporate governance and risk and reputation management

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Gold Plated Strategic Advisers: incentivised to deliver

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Matt Davey

  • US-based Australian-born online wagering entrepreneur

  • Non-Executive Director/major shareholder, BetMakers Technology Group Limited (ASX:BET)

  • Director & Chief Executive Officer – Tekkorp Digital Acquisition Corp (NASDAQ: TEKK)

  • President/Founder Tekkorp Capital LLC

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  • Founded NYX Gaming in 2011, which he successfully built and sold to Scientific Games for US$630m

  • Renowned investor and advisor in the US gaming industry

  • Sponsor of 2 wagering focused SPACs

  • Provides valuable commercialisation insights and strategic M&A opportunities to IXUP for US-focused opportunities

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Ian Penrose

  • UK-based online gaming and wagering entrepreneur, executive and director

  • Experienced CEO of London Stock Exchange (LSE) listed sports, media and wagering-related businesses

  • Previous CEO of global wagering technology business Sportech plc

  • Current Non-Executive Director of LSElisted Playtech plc the largest sports betting and gaming software company in the world

  • Chairman of DataPOWA Limited

  • Provides significant European network to assist with commercialisation and strategic acquisition opportunities

  • Strategic consultant to IXUP

  • Introduced DataPOWA opportunity to IXUP

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I N V E S T O R P R E S E N T A T I O N

IXUP: COMMERCIALISATION STRATEGY

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IXUP: updated commercialisation strategy

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“Infinite opportunities are unlocked when you can share and analyse information in a simple, safe and compliant way"

IXUP – Financial services, Initial focus on Sports Data, Complimentary The key to Health Care, developing products Sports Sponsorship, technologies and Government, Government, specifically for the Digital Sports Betting, specific vertical Health, Loyalty, turning data Technology, digital gaming and Media, Retail, market focus Data Analytics, into dollars Media and Telco wagering sector Entertainment Ongoing DD Businesses Inside Inside Inside Inside markets IXUP products other products M&A organisations Commercialisation speed Fast Fast Medium Slow Slow

IXUP: unlocking the hidden value in sports data

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Sports Data, Sports Sponsorship, Digital Sports Betting, Media, Retail, Entertainment

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  • Demand for sports information and its value is growing exponentially

  • Acquisition of DataPOWA accelerates IXUP commercialisation strategy

  • DataPOWA's 'POWA index' combined with IXUP Secure Data Engine enables sports data to be commercialised in revolutionary ways

  • DataPOWA is a specialist in the sports data and sports sponsorship market with AI driven SaaS technology and an existing international client list

IXUP inside other products (DataPOWA)

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Fast

  • Strong market interest shown for POWA index 2.0 - combining IXUP and DataPOWA technologies

  • Early adoption demonstrated by international FIFA Confederation Concacaf

  • Further near-term commercialisation contracts expected to demonstrate value of IXUP technology being deployed through DataPOWA

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I N V E S T O R P R E S E N T A T I O N IXUP’s Sports Data Epiphany

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Sports Sponsorship: ripe for disruption

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Global sports sponsorship spend continues to rise

Size of sports sponsorship market worldwide in 2020 and 2027 (in billion US dollars)

POWA index expands measurement of sponsorship spend and valuation beyond traditional metrics to include real time social media reach and audience

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100
89.6
80
60
57
40
20
2020 2027
Market size in billion US dollars
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Sports sponsorship methods are evolving in the digital age

IXUP Secure Data Engine at the sharp edge of disruption for data collaboration and commercialisation

POWA index 2.0 adds IXUP's revolutionary Secure Data Engine capabilities to the POWA index to deliver world first and market first product offering:

  • B2B PaaS IXUP platform; and

  • B2C SaaS POWA index

TV vs social sponsorship share of value among the top 8 NBA teams

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Source: Statista 2021

Sports Data Demand and Value Increasing: exponential growth profile

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  • Market forces:

  • exponential rise of data as a significant new currency and asset class

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Market opportunity and drivers
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  • increasing pressure to drive revenue from data assets

  • exploding sports betting markets driven by US deregulation

  • Application of IXUP technology:

  • sports sponsorship market is tangible and accessible (high growth industry transitioning to the digital age)

  • IXUP Secure Data Engine to generate significant value and competitive advantage and supercharge POWA index

  • Accelerates IXUP's commercilisation with an expressway to market and an existing client base

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Sports
Sponsorship
Sports
Betting and Sports
Data
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  • Strategic intersection between the sports data and sports betting markets provides additional opportunities

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I N V E S T O R P R E S E N T A T I O N

WHO IS DataPOWA?

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DataPOWA: background

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  • § DataPOWA is a UK based business offering specialist data and marketing services to the sports market

  • § Founded in 2017 by Michael Flynn who has more than 30 years of sports sponsorship and digital marketing experience

  • § DataPOWA are currently 5 staff in London and an 8 person off-shore development team

Michael Flynn

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  • § The business also has broader applications, including sponsors and brands, advertising agencies and media outlets

  • § Future target markets include the entertainment, music, fashion and automotive industries, including many others

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Flynn identified the problem with TV driven metrics in the sports sponsorship sector and created a solution using data science and artificial intelligence.

POWA index provides for realtime effective decision making for rights holders, agencies and brands alike, measuring auditable datapoints relevant to the digital age.

POWA index ‘Signals

  • § Launched version 1 of the POWA index in 2019, a SaaS deployed measurement of power, AI valuation, predictive analysis & ranking system

  • § Over 2,500 teams, leagues and events from 46 different sports tracked in real time

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DataPOWA: commercialisation / business model

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Triallists
(+25 more)
Live Paying
Customers
POWA index 2.0 POWA index 2.0 Other major
customers
in advanced
discussions
Franchise Owners
Rights Holders
Brands / Sponsors Agencies Media
1) Target Market Measures franchises in the
Benchmarks against
Identifies ’best bang for their
Provides ‘always on’
Tracks all
wider sports marketplace
competitors and identify how

buck’ sponsorships and
research, saving events/leagues/teams
and identifies up and coming
to increase value from
enables better deal considerable time and covered and identifies
sports or franchises
sponsorship assets
negotiation resource costs trends in sports
2) Revenue Sources A) Subscription Based SaaS Model#
circa 80% of total revenue
Year 1 > 30 new customers
AI
B) Bespoke Projects / Reports
driven sponsorship property valuations
C) Sponsorship Sales Commission
(future 2023+)
Predictive analysis
Year 2 > 100 new customers
3) Future Markets & A) Future Target Markets: B) Influencer Marketing C) Transfer Valuations:
Technology Applications Entertainment, Music, Fashion, Automotive ‘AthletePOWA’ marketplace Football player transfer valuation modelling

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This is an internal DataPOWA target only and should not be construed as an IXUP forecast or projection. IXUP anticipates providing financial guidance for the DataPOWA business after a period of full financial control

I N V E S T O R P R E S E N T A T I O N DataPOWA ACQUISITION DETAILS

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Acquisition Rationale

  • Strategic entry into international sports data market

  • Significant growth opportunity given exponential demand from digital sports betting market

  • Complimentary strategic opportunities

  • Combination of technology platforms (POWA index 2.0)

  • IXUP unlocks value for DataPOWA

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  • Express pathway to market for IXUP technology and early revenues

  • Maximises upside for IXUP

  • Leverages current DataPOWA customers, markets and domain expertise

  • Global representation

  • Acquisition structure minimises risk

  • Synergistic client list (advanced discussions ongoing)

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Transaction details

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Key terms

  • Binding sale purchase agreement signed

  • Deal subject to IXUP shareholder approval with meeting to be convened as soon as possible

  • Consideration payable - $12 million (max):

  • $3.25 million cash on completion (funded from IXUP cash reserves)

  • $8.75 million share-based consideration

    • $4.5 million in shares issued on completion (escrowed for 12 months)

    • $4.25 million in shares deferred and subject to attainment of specific revenue milestones

Milestones for deferred consideration

Two tranches - each qualifying for a total of $1.875 million in shares:

  • Tranche 1: £549,000 (approx. AUD$1,000,000) revenue in 12 months to 28 February 2022

  • Tranche 2: £2,000,000 (approx. AUD$3,650,000) revenue in 12 months to 28 February 2023

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Revenue Earnout Targets
4,000 $3,650,000
3,000
2,000
$1,000,000
1,000
2022 2023
1,000,000
Australian dollar
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  • Payments for each tranche pro-rated in event revenue does not meet milestone

  • Additional AUD$500,000 bonus share payment should the tranche 2 milestone be met

  • Structure ensures strong alignment between IXUP and DataPOWA and mitigates risks

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I N V E S T O R P R E S E N T A T I O N CORPORATE OVERVIEW

Impact on IXUP Capital Structure

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Capital Structure Prior to Acquisition
ExistingIXUP FullyPaid Shares On Issue 701m
Unlisted Options(various strikeprices) 235m
Performance Rights 24m
Acquisition Shares Proposed to be Issued
Acquisition Shares Issued to DataPOWA Shareholders
– at completion
47m
Acquisition Shares Issued to DataPOWA Shareholders
– subject to Revenue Milestones
45m*
Total Potential Acquisition Shares Issued to DataPOWA Shareholders 92m
**Percentage Ownership Post Acquisition ***
Undiluted IXUP Shares on Issuepost Acquisition 793m*
ExistingIXUP Shareholders(undiluted) 88%
DataPOWA Shareholders - Shares issued at completion 6%
DataPOWA Shareholders - Shares subject to revenue milestones 6%

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Potential post acquisition shareholders
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6% [6%]
88%
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Existing IXUP Shareholders (undiluted)

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DataPOWA Shareholders -
Shares issued at
completion
DataPOWA Shareholders -
Shares subject to revenue
milestones
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Note : Assumes attainment of revenue milestones are met in full and issue of related shares to DataPOWA shareholders

  • Assumes 9.4c share price (maximum possible share issuance under SPA is 59.95m shares)

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I N V E S T O R P R E S E N T A T I O N APPENDICIES

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Appendix A

I N V E S T O R P R E S E N T A T I O N

Further Details on Strategic Advisors

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Tekkorp Capital: US gaming and wagering specialist

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“The IXUP and DataPOWA technology solution represents a revolutionary step in the sports sponsorship and database collaboration markets globally. The combined group is now ideally positioned to expand further into the global sports data market, both organically and via acquisition. I look forward to working closely with the combined team to drive additional shareholder value creation”

Matt Davey Founder – Tekkorp Capital

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Strategic Advisor – Ian Penrose

  • Ian Penrose is a highly experienced online wagering and gaming executive with unparalleled UK & European network

  • Ian is currently a Non-Executive Director of LSE-listed Playtech plc (US$2 billion market capitalisation), which is a global gaming technology business

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  • Other current board/advisory positions;

  • Chairman of DataPOWA Limited

  • Chairman of National Football Museum in England

  • Non-Executive Director and Advisor to Weatherby’s (provides administration and equine services to the British Horseracing Authority)

  • Adviser to Low 6 (a provider of custom branded free to play apps to companies wishing to activate their fan bases)

  • Ian was also the CEO of two London Stock Exchange listed companies for a combined 20 years;

  • Sportech plc: Ian transformed Sportech from a heavily indebted declining business into a successful global wagering technology business

  • Arena Leisure plc: Ian developed Arena from a shell public company into the largest independent racecourse and media group in the UK

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Appendix B

I N V E S T O R P R E S E N T A T I O N TECHNOLOGY OVERVIEW: IXUP AND DataPOWA

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Insights
Data
Data custodian 1 Data custodian N
Encryption gateway Encryption gateway
First-party data Third-party data
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The IXUP Technology Platform Explained

IXUP's Secure Data Engine is a software platform that facilitates secure data collaboration and analytics and delivers insights across multiple encrypted data sets:

  • Securely combines discrete data sets

  • Data owner retains full control

  • Zero data loss or misuse – Totally Secure

  • Leading governance and compliance frameworks embedded

  • Secure Microsoft cloud environment

  • Allows application of global 3rd party data sets to radically enhance the commercial value of customers 1st party data

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IXUP: unique, patented and scalable

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  • Minimal known competitors or substitutes

  • Overcomes a huge global pain-point: lack of trust in data sharing. Organisations continue to balance rapidly evolving requirements to improve data security, privacy controls and govern data access

  • Platform is scalable and data agnostic

  • Strong intellectual property protection including granted patents and a gold-plated compliance framework (ISO and SOC 2)

  • Transparent, independent and auditable governance

  • Zero data loss or misuse – '5 Safes' data governance/decision framework

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DataPOWA: introducing the “POWA index”

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  • The “POWA index” is a fit for purpose sponsorship ‘currency’

  • Replaces previously inefficient, time consuming and imprecise sponsorship valuation techniques

  • Allows a measurement of sponsorship asset power, using a proprietary “AI” valuation tool to predict and rank

  • POWA index ingests 2.4 trillion data points/day from 60 global data sets to arrive at one simple summary “POWA Score”, utilising:

  • Social Media

  • Search Engines

  • Team Performance

  • Media and News References

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  • Resultant POWA scores are directly comparable and offer full transparency to end customers

  • DataPOWA is the global first mover in a highly attractive, growing and previously inefficient industry

  • Website and App Data

  • Demographics

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DataPOWA: the POWA index 2.0

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POWA
index
Interactive and
Data is loaded accurate reports
and encrypted showing:
at cell level

Enrichment data Encrypted database Media/asset rights
valuation
Data is then

layered, indexed Sponsorship DD
and matched in •
Privacy/GDPR compliant
an encrypted walled-garden
Enrichment data Encrypted database
repository • Audience creation
and implementation
• Media sales and
Ad Exchanges/
Enrichment data Encrypted database Each DSP/CRM
organization
• Media strategy
retains complete
control of their • Ticketing and
data and access in-venue activation
Enrichment data Encrypted database control rules (post-vaccine)
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Appendix C

I N V E S T O R P R E S E N T A T I O N

IXUP AND DataPOWA TECHNOLOGIES COMBINED

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IXUP and DataPOWA: the journey so far

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March/April

March

February

POWA index 2.0 development continues

Tekkorp introduces IXUP forms technology DataPOWA to IXUP collaboration with DataPOWA 2020 2021

April/May

Ongoing positive discussions continue with additional POWA index 2.0 customers

November

Strategic Collaboration with Tekkorp Capital (Tekkorp)

December/January

Technical discussions between IXUP & DataPOWA

March

Customer engagement on potential POWA index 2.0 commences

April

May

First POWA index Acquisition of 2.0 deal with DataPOWA Concacaf signed announced by IXUP

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IXUP and DataPOWA products combine: POWA index 2.0

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POWA Index 2.0
has DataPOWA’s AI
sponsorship valuation
and digital benchmarking
technology plus…
IXUP’s secure 1st party database
collaboration technology and
access to valuable 3rd party
global data sets
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  • POWA index 2.0 represents a new and unique solution for sports rights and sports data owners

  • Enrichment of 1st party data sources

  • Co-marketing and intelligence outcomes possible

  • POWA index 2.0 expected to:

  • Be attractive to DataPOWA’s existing and growing client base

  • Have broad market applications across other sports-related market verticals (including gaming and wagering)

  • POWA index 2.0 creates a unique pathway for entry into large international markets for IXUP’s technology, particularly Europe and North America

  • Potential acceleration of IXUP’s revenue profile

*Via IXUP introduced unique collaboration with global data providers

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The POWA index 2.0: video teaser

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Legal Disclaimer

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This presentation has been prepared by IXUP Limited (“IXUP” or the “Company”) based on information available to it as at the date of this presentation. The information in this presentation is provided in summary form and does not contain all information necessary to make an investment decision.

This presentation is not a prospectus and does not constitute an offer, invitation, solicitation or recommendation with respect to the purchase or sale of any security in IXUP, nor does it constitute financial product advice or take into account any individual’s investment objectives, taxation situation, financial situation or needs. An investor must not act on the basis of any matter contained in this presentation but must make its own assessment of IXUP and conduct its own investigations. Before making an investment decision, investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, and seek legal, taxation and financial advice appropriate to their jurisdiction and circumstances.

Although reasonable care has been taken to ensure that the information included in this presentation is accurate and that the opinions expressed are fair and reasonable, 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 IXUP, its officers, directors, employees and agents, nor any other person, accepts any responsibility and liability for the content of this presentation including, without limitation, any liability arising from fault or negligence, for any loss arising from the use of or reliance on any of the information contained in this presentation or otherwise arising in connection with it.

Forward looking statements

This presentation contains certain forward-looking statements that are based on the IXUP management’s beliefs, assumptions and expectations and on information currently available to management. Such forward looking statements involve known and unknown risks, uncertainties, and other factors which may cause the actual results or performance of IXUP to be materially different from the results or performance expressed or implied by such forward looking statements. Such forward looking statements are based on numerous assumptions regarding the Company’s present and future business strategies and the political and economic environment in which IXUP will operate in the future, which are subject to change without notice. Past performance is not necessarily a guide to future performance and no representation or warranty is made as to the likelihood of achievement or reasonableness of any forward-looking statements or other forecast. To the full extent permitted by law, IXUP and its directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this presentation (including, but not limited to, any assumptions or expectations set out in the presentation). This document has not been subject to external auditor review.

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Marcus Gracey Managing Director & CEO Phone +61 2 8206 8888 Mobile +61 407 069 011 [email protected] www.ixup.com

Media Enquiries The Capital Network Julia Maguire +61 2 8999 3699 [email protected]

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