DTI GROUP LTD — Interim / Quarterly Report 2023

Jul 30, 2023

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ASX Announcement | 31st July 2023

DTI Group Limited (ASX:DTI)

Quarterly Business Activity Report & Appendix 4C

DTI reports fourth consecutive quarter of positive operating cash flow

Highlights

• Fourth consecutive quarter of positive net operating cash flow

• Cash equivalent balance of $1.136M at the end of the June 2023 quarter and 2023 financial year

• Installation of the 100[th] system utilising DTI’s newest generation compact digital recorder

• Development of a customer solution for an additional customer segment

DTI Group Limited (ASX:DTI) (“DTI” or “the Company”) is pleased to provide its Appendix 4C for the quarter ended 30[th] June 2023 (Q4 FY23) along with the following operational update.

100[th ] digital compact recorder system installed

DTI’s Q4 FY23 marked the 100[th] installation of the Company’s newest generation compact digital recorder (CDR) system. The CDR system is a key product that enables DTI to meet client demands for a capable system at a favourable price point. The installation of the 100[th] system demonstrates the confidence DTI’s customers have in the Company’s technology and the support services that accompany it.

Development of a customer solution in a new segment

DTI have identified a new market segment that has adjacencies with existing customers.

Rapid prototyping has been performed and DTI has scheduled a fully functional demonstration of the vehicle hardware and fleet management software for an industry leader in Q1 FY24.

Fourth consecutive quarter of net operating cash flow

• A cash equivalent balance of $1.136M at the end of Q4 FY23 and FY23

• The largest quarter of positive net operating cash flow for the financial year

• A further $0.358M invested in the development of DTI’s intellectual property during the quarter

DTI Chief Executive Officer Matt Strack said: "Four consecutive quarters of positive net operating cash flow over our 2023 financial years gave us the ability to fund a $1.1M investment in intellectual property assets over this time. This included a near $0.4M investment in growth capex over the final quarter of the year. This continued investment in our business has enabled DTI to progress the development of new and updated products that are expected to deliver further milestones in the

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The transit technology people.

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Company’s growth strategy over coming quarters. We are particularly excited by DTI’s rapid prototyping of a new product that has opened the way for us to target another segment of the transportation market."

For further information, please contact:

DTI Group Limited (ASX:DTI) Mr. Matt Strack Chief Executive Officer +61 447 007 505

Mr. Harry Miller Company Secretary +618 9482 0500

Media & Investor Enquiries The Capital Network Julia Maguire julia@thecapitalnetwork.com.au +61 2 8999 3699

About DTI Group Limited (ASX:DTI)

DTI Group Limited (ASX:DTI) is a developer and marketer of a range of world-leading surveillance, video analytics, and passenger information systems technology and services. The Company’s growing client base includes transit agencies, vehicle operators, vehicle manufacturers and law enforcement agencies, based both in Australia and overseas.

DTI Group’s diverse suite of products and services has expanded over time, with new offerings regularly launched that are designed to meet identified client demands in target market segments. Its current range of product and services comprise four broad categories:

• A state-of-the-art surveillance system that enables operators to capture all areas in and around vehicles

• A passenger information system that keeps clients’ passengers engaged and informed

• Industry leading analytics solutions that provide actionable insights for client operators

• Support services, encompassing a team of on-call skilled DTI Group staff that help maximize the value clients derive from their DTI systems.

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To learn more, please visit: www.dti.com.au/

For more information

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Follow us on LinkedIn

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Visit our investor website: http://www.dti.com.au

This ASX announcement has been authorised by the Board of DTI Group Limited (ASX:DTI)

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Appendix 4C +Rule 4.7B

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Quarterly cash flow report for entities subject to Listing Rule 4.7B

Name of entity

Name of entity	Name of entity	Name of entity	Name of entity
DTI Group Limited
ABN		Quarter ended(“currentquarter”)
15 069 791 091		30/06/2023
Consolidated statement of cash flows		Current quarter $A’000	Year to date (12 months) $A'000
1.0 1.1 1.2 1.3 1.4 1.5 1.6 1.7 1.8 1.9 Income taxes paid Government grants and tax incentives Other Net cash from / (used in) operating activities (d) leased assets Receipt of Government Grant revenue (e) staff costs (f) administration and corporate costs Dividends received (see note 3) Interest received Interest and other costs of finance paid Cash flows from operating activities* Receipts from customers Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing		3,235 0 0 -1,411 -14 -25 -1,083 -234 0 5 -3 0 0 0	13,528 0 0 -8,361 -84 -102 -3,221 -1,048 0 26 -11 0 0 0
		470	726
Cash flows from investing activities 2.0		Current quarter $A '000	Year to date (12 months) $A'000
Payments to acquire: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets Proceeds from disposal of: (a) entities (b) businesses (c) property, plant and equipment (d) investments (e) intellectual property (f) other non-current assets Cash flows from loans to other entities Dividends received (see note 3) Other (provide details if material) Net cash from / (used in) investing activities 2.3 2.4 2.5 2.6 2.2 2.1		0 -358	-14 -1,105
		-358	-1,119

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3.0	Cash flows from financing activities	Current quarter $A '000	Year to date (12 months) $A'000
3.7 3.8 3.9 3.10 3.1 3.2 3.3 3.4 3.5 3.6	Proceeds from issues of equity securities (excluding convertible debt securities) Proceeds from issue of convertible debt securities Proceeds from exercise of options Transaction costs related to issues of equity securities or convertible debt securities Proceeds from borrowings Repayment of borrowings Transaction costs related to loans and borrowings Dividends paid Other (provide details if material) Net cash from / (used in) financing activities	564 -565	1,873 -1,910
		-0	-37
4.0	Net increase / (decrease) in cash and cash equivalents for the period	Current quarter $A '000	Year to date (12 months) $A'000
4.1 4.2 4.3 4.4 4.5	Cash and cash equivalents at beginning of quarter/year to date Net cash from / (used in) operating activities (item 1.9 above) Net cash from / (used in) investing activities (item 2.6 above) Net cash from / (used in) financing activities (item 3.10 above) Effect of movement in exchange rates on cash held	1,016 470 -358 -0 7	1,558 726 -1,119 -37 7
4.6	Cash and cash equivalents at end of quarter	1,136	1,136
5.0	Reconciliation of cash and cash equivalents	Current quarter $A’000	Previous quarter $A’000
	at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts
5.1 5.2 5.3 5.4 5.5	Bank balances Call deposits Bank overdrafts Other (provide details) Cash and cash equivalents at end of quarter(should equal item 4.6 above)	1,113	1,016
		1,113	1,016
6.0	Payments to related entities of the entity and their associates		Current quarter $A'000
6.1 6.2	Aggregate amount of payments to related parties and their associates included in item 1 - Director/Secretary payments Aggregate amount of payments to related parties and their associates included in item 2		-55
			0

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7.0	Financing facilities available	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
7.1 7.2 7.4 7.3	Loan facilities Credit standby arrangements Other - Credit card facility Total financing facilities
		290	288
		290	288
7.6 7.5	Credit card-unsecured Unused financing facilities available at quarter end		2
8.0	Estimated cash available for future operating activities		$A’000
8.3 8.4 8.5 8.1 8.2	Unused finance facilities available at quarter end (item 7.5) Total available funding (Item 8.2 + Item 8.3) Estimated quarters of funding available (Item 8.4 divided by Item 8.1) Net cash from / (used in) operating activities (item 1.9) Cash and cash equivalents at quarter end (item 4.6)		470 1,136 2
			1,138
			N/A
1 2 8.6	If Item 8.5 is less than 2 quarters, please provide answers to the following questions: Does the entity expect that it will continue to have the current level of net operating cash flows for the time being and, if not, why not?
	Answer: Not applicable
	Has the entity taken any steps, or does it propose to take any steps, to raise further cash to fund its operations and, if so, what are those steps and how likely does it believe that they will be successful?
3	Answer: Not applicable
	Does the entity expect to be able to continue its operations and to meet its business objectives and, if so, on what basis?
	Answer: Not applicable

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Compliance statement

• This statement has been prepared in accordance with accounting standards and policies which comply with

• 1 Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Date: 31/07/2023 Authorised by: by the Board of Directors (Name of body or officer authorising release - see note 4)

Notes

1 The quarterly report and the accompanying activity report provides a basis for informing the market how the entity’s activities for the past quarter, how they have been financed and the effect this has had on its cash position. An entity that wishes to disclose additional information over and above the minimum required under the Listing Rules is encouraged to do so.

2 If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3 Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

• 4 If this report has been authorised for release to the market by your board of directors, you can insert here: "By the board. If it has been authorised for release to the market by a committee of your board of directors, you can insert her: "By the [name of board committee - eg Audit and Risk Committee]". If it has been authorised for release to the market by a disclosure committee, you can insert here: "By the Disclosure Committee".

• 5 If this report has been authorised for release to the market by your board of directors and you wish to hold yourself out as complying with recommendation 4.2 of the ASX Corporate Governance Councils Corporate governance Principles and Recommendations, the board should have received a declaration from its CEO and CFO that, in their opinion, the financial records of the entity have been properly maintained, that this report complies with the appropriate accounting standards and gives a true and fair view of the cash flows of the entity, and that their opinion has been formed on the basis of a sound system of risk management and internal control which is operating effectively.

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