DXN LIMITED — Investor Presentation 2021

Mar 9, 2021

Investor Presentation & Strate ic U date g p

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March 2021

Disclaimer

This presentation has been prepared by DXN Limited (ACN 620 888 548) ( DXN or Company ).

NOT AN OFFER

This presentation is for information purposes only. This presentation does not comprise a prospectus, product disclosure statement or other offering document under Australian law (and will not be lodged with the Australian Securities and Investments Commission) or any other law.

This presentation also does not constitute or form part of any invitation, offer for sale or subscription or any solicitation for any offer to buy or subscribe for any securities nor shall they or any part of them form the basis of or be relied upon in connection therewith or act as any inducement to enter into any contract or commitment with respect to securities. In particular, this presentation does not constitute an offer to sell or a solicitation to buy, securities in the United States of America.

NOT INVESTMENT ADVICE

This presentation is not investment or financial product advice (nor tax, accounting or legal advice) and are not intended to be used for the basis of making an investment decision. Recipients should obtain their own advice before making any investment decision.

SUMMARY INFORMATION

This presentation does not purport to be all inclusive or to contain all information about the Company or any of the assets, current or future, of the Company.

This presentation contains summary information about the Company and its activities which is current as at the date of the presentation. The information in this presentation is of a general nature and does not purport to contain all the information which a prospective investor may require in evaluating a possible investment in the Company or that would be required in a prospectus or product disclosure statement or other offering document prepared in accordance with the requirements of Australian law or the laws of any other jurisdiction, including the United States of America.

The Company does not undertake to provide any additional or updated information whether as a result of new information, future events or results or otherwise.

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FORWARD LOOKING STATEMENTS

Certain statements contained in this presentation, including information as to the future financial or operating performance of the Company and its assets, are forward looking statements. Such forward looking statements:

• (a) are necessarily based upon a number of estimates and assumptions that, while considered reasonable by the Company, are inherently subject to significant technical, business, economic, competitive, political and social uncertainties and contingencies;

• (b) involve known and unknown risks and uncertainties that could cause actual events or results to differ materially from estimated or anticipated events or results reflected in such forward looking statements; and

• (c) may include, among other things, statements regarding estimates and assumptions in respect of prices, costs, results and capital expenditure, and are or may be based on assumptions and estimates related to future technical, economic, market, political, social and other conditions.

The Company disclaims any intent or obligation to publicly update any forward looking statements, whether as a result of new information, future events or results or otherwise.

The words “believe”, “expect”, “anticipate”, “indicate”, “contemplate”, “target”, “plan”, “intends”, “continue”, “budget”, “estimate”, “may”, “will”, “schedule” and similar expressions identify forward looking statements.

All forward looking statements contained in this presentation are qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and accordingly recipients are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein.

NO LIABILITY

The Company has prepared this presentation based on information available to it at the time of preparation. No representation or warranty, express or implied, is made as to the fairness, accuracy or completeness of the information, opinions and conclusions contained in this presentation. To the maximum extent permitted by law, the Company, its related bodies corporate (as that term is defined in the Corporations Act 2001 (Cth) ( Corporations Act )) and the officers, directors, employees, advisers and agents of those entities do not accept any responsibility or liability including, without limitation, any liability arising from fault or negligence on the part of any person, for any loss arising from the use of this presentation or its contents or otherwise arising in connection with it.

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Contents

1. Overview

2. Edge Data Centre Strategy

3. Modular Manufacturing

4. Data Centre Operations

5. Appendix

6. Management & Board

7. Factsheet

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DXN designs, manufactures, operates and owns data centres that bring critical communication infrastructure closer to where users need it

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Overview

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Design Manufacture and Operate

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Modular Manufacturin g

Data Centre O erations p

• Scalable, purpose-built data centre solutions

• Turnkey prefabricated modular data centres 2–500 racks client flexibility

• Rapidly deployable globally

• Monitor, manage and operate

• Designed and constructed to meet a client’s specific technical, security and operational requirements

• Access to a comprehensive range of telecommunications carriers and network services

• Up-sell to customers within data centres

• Monitor, manage and operate

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Timeline

Business Development Milestones

Nov 2018

Modular manufacturing commenced focused on Internal needs

April 2019

First undersea cable landing station order signed

Aug 2019

New management, with Matthew Madden joining

Sept 2019

New focus on pre-fabricated modular solutions for Subsea Cable Landing Stations, Mining and EDGE Data Centres

2021

New modular fit for purpose manufacturing facility (WA)

Corporate Milestones

Jan 2018

Leasing of Sydney and Melbourne data centre sites

April 2018 IPO

Feb 2020

Launched its regional data centre colocation strategy with an acquisition in Hobart, Tasmania

April 2020

Entitlement issue to fund Tasmanian DC

Dec 2020

Business restructure largely completed, cutting operating expenses significantly

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Sample Deployment Locations Global Locations

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Existing DXN Data Centre Facilities
1 Sydney
2 Melbourne Site
3 Tasmania
DXN Modules
4 AGIG
5 Teletok
6 SpeedCast Design Phase 1
7 Telcom Niue
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8 Avaroa Cable Limited
9 Southern Cross Cable Network
10 SES | Networks 14
11 10
11 SpeedCast Project 2 6 5
17 9 7
12 Synergy 8
12
13 Resolute 18
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14 SES | Networks Project 2 4 1
16
2
15 Venues West
3
16 AHG
17 SubCo
17 Radlnk
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Edge Data Centre Strategy

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[What is Edge Computing?] Edge Data Centres

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Current Model: The Cloud New Model: Edge Computing
“The Cloud”
Centralised Data
“The Cloud”
Centres
Centralised Data
Centres
Local EDGE Local EDGE
Local EDGE
Data Centre Data Centre
Data Centre
Factories, Factories,
Households & Households &
Offices hospitals, Offices hospitals,
smart devices smart devices
mines etc. mines etc.
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Edge Market Drivers

User expectations for improvements in speed & latency

Requirement to have closer access to data and customers

Expectation for access to data at a lower cost Exponential growth in data & capacity requirements

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The Regional EDGE Data Centre

“Our edge data strategy involves building out a number of smaller facilities in regional centres and capital city location outside of Sydney and Melbourne. Hobart Tasmania was our first step towards this goal”

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DXN’s Addressable Markets Global and local market trends

Global Edge Capex Spend (US$b)

• The global market for PFM DC* is accelerating at a 160 compound annual growth rate of 14.4%[1]

• Modular • The global addressable market size is currently US$1.6bn 140

• Manufacturing • The prefabricated use case is strengthening, as the skills shortage increases globally, and the accelerated 120 requirements for increased capacity continues 100

• • Over US$700b in cumulative capex is expected to be spent within the next decade on edge IT infrastructure and data 80

• centre facilities

• • The global annual capex for edge IT and data centre facilities is forecast to reach US$146b in 2028 with 60

• Edge Data a 35% CAGR Centres[2] • In Asia Pacific, the footprint is currently underpinned by 40 developed markets including Australia, Japan, Korea and China and is forecast to increase to 25K MW by 2028 20 representing 36.7% of the global edge footprint

• • US$4b is spent annually on undersea cable infrastructure, 0

• 6% (US$240m) is spent on cable landing stations 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028

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1. 451 Research. 2. Tolaga Research / State of the Edge *Prefabricated Modular Data Centres

Market Segments

Broad and growing market opportunities

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• Telco and

• Micro DC EDGE DC Government

• Plug and play, fully • 1-3 MW deployment • Edge deployment • 100-400 racks • 20kW to 1MW

• Cable Landing Telco and Stations Mining Micro DC EDGE DC Government

• • Pre-fabricate specific • Purpose built • Plug and play, fully • 1-3 MW deployment • Edge deployment for submarine cable • High quality integrated solution • 100-400 racks • 20kW to 1MW industry Australian design • Combining UPS, • Modular solution that • 5-200 rack

• • Rapid deployment and build cooling, security, allows scale • 16 week build 90 days • Dark site monitoring and HMI. • 6 month build to any • Satellite earth

• • Highest quality management • Ideal for enterprise tier rating stations factory built surface • Rugged and resilient • 5G telco sites where • Own and operate Protection C4 • Custom designed there is a need for options

• • Seismic rating solutions closer to • Cyclone rating the end user Current opportunity Emerging Opportunity

  • Edge deployment

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Market Opportunity

DXN is ideally placed to address the market opportunity

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Demand for data centres Undersea landing sites in regional and remote across Australia and Asiaareas of Australia - Pac generates demand for brownfield and greenfield adjacent data centre opportunities to build data capabilities centres Bespoke - Design, Manufacture and Operate EDGE Data Centres

Undersea landing sites across Australia and AsiaPac generates demand for adjacent data centre capabilities

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Complimentary offering

DXN designs, manufactures, operates and owns data centres

Modular Manufacturing

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• Pre-fabricated modular (PFM) design allows for scale to be capital efficient

• Annual build capacity of up to 100 modules

• Growing reputation as a subsea cable landing station (CLS) provider

• Turnkey deployment allows for customisation of Data Centre (DC) requirements

• Attached ongoing support and maintenance

• Perfectly positioned in Perth to support SE ASIA and Africa

Data Centre Operations

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• Capital Efficient – scalable capex closely matching sales

• Predictable - per MW build cost

• Rapid Deployment – three months for additional capacity

• EDGE DC - expansion into major regional and capital cities outside Sydney and Melbourne

• TAS 01 – our regional Edge data centre in Tasmania

• SYD 01 – a centrally located Uptime Institute Tier III constructed facility

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Competitive Advantages – More towards the customer

Rapid Deployment	Australia’s only vertically integrated manufacturer and operator of modular data centres
Vendor Agnostic	DXN Provides a complete solution for Data Centre Infrastructure but is completely vendor agnostic.
Modular and Scalable	Our pre-fabricated modular design allows for personalisation of your data centre requirements in a scalable, modular and cost-effective way.
Quality	We design and deploy customised data centre solutions to meet the highest technical specifications for colocation facilities or edge deployments to any site globally.

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Revenue Streams

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Modular Manufacturing

• Engineering Design

• • Modular Construction

• • Site Commissioning

Cross Over Services Maintenance Operations support

Data Centre Operations

• Rack and Power Charges

• • Cross Connect Charges

• • Network Services • Internet

• • Connectivity services

Once Off Revenue

Annuity Revenue

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Modular Manufacturing

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Modular Data Centres What is a prefabricated modular data centre?

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Prefabricated data centre modules are built at DXN’s in-house manufacturing facility in Perth, WA

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DXN’s modular design means the data centres can be deployed in any location and easily customised

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The prefabricated data centre is deployed to site

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Modular Data Centres for the Edge

DXN’s prefabricated modular centres are delivered from a controlled manufacturing facility in Perth and offer customers:

 Bespoke - specific technical, security and operational requirements

• Vendor Agnostic

• Cost control

• Self contained and transportable

• Rapid deployment (3 months vs 24 months delivery time)

• Highest international quality and standards

• Plug and play customer installation

• Decentralisation (closer to source)

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Capacity & Pipeline

Strong pipeline and capacity to grow

• Maximum manufacturing capacity of 100 modules a year with an extra shift and have further capacity growth

• Pivoted sales pipeline targeting from large projects into smaller, modular opportunities

• Strong pipeline growth in primary targeted sectors – subsea cable operators, resources and regional telco

• Sales capacity to be increased to meet growing opportunity

• EDGE strategy for regional data centres will provide further demand for modular manufacturing

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Edge Data Centre Operations

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Edge Data Centres

Operational advantages

Modular construction allows for capital to match capacity requirements Focus on under-served regional markets with latency issues For Data sovereignty and security Customers Centralised cloud data centres are located too far from data source (increases latency) for effective IoT and machine-to-machine communication Applications that are not suited for public cloud Caching of frequently used content such as video Time-to-build on traditional data centre deployment is long (~24 months) and capital intensive Build data centres in key regional locations that have latency and underserviced For telecommunication DXN Targeting subsea cable landing stations across Asia Pacific Multinational content providers looking to by-pass major centres and get closer to their targeted audience Maintenance and support services

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Greenfield & Brownfield Opportunities Annuity and value-add strategies

Greenfield

Brownfield

• Opportunities to develop data centres in major regional areas

• Utilising DXN’s modular infrastructure

• Contracted quality existing customer base

• Potential to expand sites with a high return on investment

• Known cost to deploy and operate

• Renovate and value-add to existing sites

• Accumulating customer agreements ahead of build

• Additional opportunities identified and being reviewed

• Strong return on investment with growing profitability through additional network connectivity contributions

Value Added Services

• Aggregation hub for customers, capacity wholesaler

• Target customers to facilitate cross-sell connect, internet and point-to-point connections to customers in data centres

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Opportunities for Improvement

Specialist advisors appointed to assist in resolving exposure to loss-making, large-scale data centres

Melbourne

• Melbourne currently running at a loss and a solution would dramatically improve working capital strain

Sydney

• Have turned Sydney into a network hub with large capacity dark fibre

• Vocus, TPG and 5GN, with more to come. Partnerships to resell fibre services to tier three telcos

• 116 racks fitted out and available for sale with a total site capacity at completion of 725 racks

• 84 racks would be break even including network revenue

• Also looking to sub-lease space in Sydney

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DXN designs, manufactures, operates and owns data centres that bring critical communication infrastructure closer to where users need it – the EDGE

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Thank you.

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Appendix

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Management

A structure that will support the growth

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Matthew Madden
CEO and MD
Alan Henry Blair Taylor Sri Murugan
Greg Blenkiron Shalini Lagrutta
Head of DC Head of Head of
CFO Head of Sales and
Facilities Manufacturing Engineering
Marketing
Finance DC Management Fabrication Presales Colocation
Legal Maintenance Electrical CAD Modular
Investor Relations Monitoring Mechanical Structural
PR Security HVAC
Electrical
A flattened structure based on key functions provides for a more customer focussed outcome.
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Engineering provides key input to both pre sales activities and manufacturing

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Board

A board with proven experience

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Matthew Madden John Baillie Richard Carden John Dimitropoulos George Lazarou
CEO and MD Non-Exec Chairman Non-Exec Director Non-Exec Director Company Secretary
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Factsheet / Financials as at Dec 31 2020

December 2020 Half Year Highlights:

• Sales $4.1m – an improvement of 65% on H1FY20

• Gross margin 35% - a gain of 158% on H1FY20

• EBITDA loss $225,854 – a 92% improvement on H1FY20

• New contracts secured – $3.6m

To be

Income Statement

Key financials (A$m)

Market Cap	20.2
Unrestricted Cash	2.2
Net Debt / (Cash)	(0.7)
Enterprise Value	19.5
Shares Outstanding (m)	1,061
Share Price (A$)	0.017

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