DXN LIMITED — Management Reports 2019

Oct 30, 2019

31 October 2019

==> picture [112 x 58] intentionally omitted <==

ASX Announcement

CEO Quarterly update

Since commencing at DXN on 19 August, I have worked with the team to make sure that our focus is on capital management and winning new customers. DXN has a unique position in the Modular DC Market, providing a complete end to end solution for the manufacture and deployment of containerised modular data centre solutions from design, build, commission, operation and ongoing maintenance over its life. We do this for both ourselves and external customers efficiently and at a competitive price point. With the strong demand for modular data centres, DXN is very well positioned for sustained growth. We have launched a dedicated Investor Portal to assist us in more timely and regular communications to the market.

Over the last 10 weeks we have managed to achieve a large number of key milestones;

• SYD01 Data Centre Ready for Service

  • SYD01 Data Centre accredited as Tier III from the Uptime Institute;

  • SYD01 The first Tier III containerised Modular Data Centre in the world;

  • Officially launched by the Minister for Communication Cyber Safety and the Arts, Paul Fletcher

  • First customer secured

• Successful completion of factory acceptance testing (FAT) of Niue Prefabricated Cable Landing Station and shipped to site currently being commissioned.

• Successful completion of factory acceptance testing (FAT) of two Cook Islands Cable Landing stations shipped to site.

• Contract award SES modular satellite earth station for PNG.

• Production commenced on Radlink radio container modules;

• Fully underwritten Rights Entitlement Offer of $5 million, due to close on 4 November.

• Appointment of Greg Blenkiron as CFO.

• Investor Portal Launched https://dxnlimited.investorportal.com.au/

There has also been a strong focus and review on cost management and improvements in working capital through better purchasing policies, stock management practices and quoting process.

Sales

Colocation Division

With the Data Centre in Sydney now open for business, the team has been heavily focussed on finalising contract negotiations with a number of customers and site tours.

DXN Limited ABN: 46 620 888 548

9 Mumford Place, Balcatta, Perth, Western Australia, 6021 W : dxn.solutions | T: 1300 328 239 | E: info@dxn.solutions

The additional security overlay for the data centre is currently in progress and is due for completion before December 2019, which will greatly assist in contract finalisation. The data centre team have increased the number of reseller partner agreements with new partners signed up in the quarter, including a multi-national commercial real estate company. The Company aims to provide quarterly sales update commencing January 2020.

Modular Division

The team has experienced a strong increase in customer demand with a number of new opportunities taking the pipeline from circa $200m to well over $300m in the last 10 weeks. With the official departure of Flex Enclosure from the market creating an increase in demand for prefabricated data centres, DXN has had positive impact with international customer interests as DXN is able to step in and fill the void left behind. Customers are also requesting long term maintenance contracts alongside the Modular DC’s, which is increasing our market opportunity, providing long term annuity contracts attached to our modular sales.

DXN is in the process of finalising a number of material agreements which we are expecting to close before the end of November and will make further announcements as contracts are executed.

-ends-

About DXN Limited

DXN Limited designs, builds, owns and operates data centres. Offering integrated, customised and tailored solutions to clients, DXN provides businesses with the option of delivering solutions to site through containerised modules, or space in DXN’s modular colocation facilities to suit technical specifications and operational requirements. From a single rack in the colocation facilities through to fully customised Edge Infrastructure, DXN can deliver a range of solutions to meet modern data centre requirements. DXN has achieved an industry first and become the first modular data centre developer in the world to receive both Uptime Institute Tier-Ready III and Tier-Ready IV design review awards. For more https://dxn.solutions

For more information please contact:

Matthew Madden, CEO T +61 1300 328 239 E: Matthew.Madden@dxn.solutions

Katrina Walker, PR T: +61 416 333 200 E: katwalk@me.com

DXN Limited ABN: 46 620 888 548

9 Mumford Place, Balcatta, Perth, Western Australia, 6021 W : dxn.solutions | T: 1300 328 239 | E: info@dxn.solutions