Enprise Group Limited — AGM Information 2021

Nov 25, 2021

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Investor AGM Update

26 November 2021

Overview

2021 has been a challenging year where covid-19 continued to create market uncertainty and volatility. It has however provided opportunities to grow and improve. Enprise is confident it has measures to mitigate further covid-19 impacts and to support an ambitious growth strategy over the coming years.

Significant cost pressures have arisen, particularly in relation to retaining and recruiting staff (The Great Resignation). This has resulted in us needing to increase salaries across the board. We have however, only been able to increase prices and adjust contracts several months after these salary increases were implemented. The fact that we were unable to match the revenue increases simultaneously with the salary increases will negatively impact the profitability in the half year results, however we expect this to be corrected in the 2[nd] half of the financial year.

The revenue, including annual renewable revenues in all our investee companies has continued to grow well.

At 31 October 2021, Enprise had no debt, cash reserves of $1.11 million and $2.72 million in undraw bank facilities .

Unaudited Management Information for the 4 months ended 31 October 2021

Group Results

Group Results
	Unaudited Management Information
	4 months to 31 October
	2021	2020	**Change **
Revenue	5,755,188	5,234,410	10% Increase

Enterprise Division

	Unaudited Management Information	Unaudited Management Information	Unaudited Management Information
	4 months to 31 October
	2021	2020	**Change **
Revenue
- Recurringand contracted revenue	2,153,469	1,794,641	20% Increase
- Non-recurringrevenue	3,261,194	3,149,666	4% Increase
Total	5,414,663	4,944,307	10% Increase

Enprise Division Highlights

• Implementation of “One Company, One Team, One Brand” as Kilimanjaro Consulting is complete to generating cost savings and efficiency improvements.

• A review of our internal systems has been completed. The productivity improvements identified are now being implemented.

• Geographic diversification, reduces the impact of recession in one location and enables better utilisation of the teams.

iSell

iSell
	Unaudited Management Information
	As at 31 October
	2021	2020	**Change **
Cloud customer count
- Australia	181	173	5% Increase
- New Zealand	31	29	7% Increase
- Europe	55	28	96% Increase
- North America	3	2	50% Increase
- Rest of the world	11	8	37% Increase
Total	281	240	17% Increase
Revenue(4 months ended 31 October)
- Recurringrevenue	331,725	290,103	14% Increase

iSell Highlights of the last 12 months

• iSell is developing the features required for a successful expansion into North America. It is expected these developments will be completed for deployment in our existing customers in February 2022. This being successful iSell will launch a marketing campaign.

• Further investment will be required in iSell with breakeven not anticipated until June 2022.

Datagate

	Unaudited Management Information	Unaudited Management Information	Unaudited Management Information
At 31 October 2021	2021	2020	**Change **
Annual RecurringRevenue	$1,889,100	$1,230,408	54% Increase
Customer count
- New Zealand	29	30	3% Decrease
- North America	170	95	79% Increase
- Australia	35	20	75% Increase
- Rest of the world	24	2	1100% Increase
Total	258	147	76% Increase

Datagate Highlights of the last 12 months

• Completed the Autotask and Quickbooks integrations.

• Sales teams now based in new branches in Florida and London.

• The reseller channel at 31 October contributed 34% of the customer volume and continues to grown strongly.

Vadacom

Vadacom is continuing to performing to plan and the board is pleased with the year to date progress. The new cloud software is now in use and has 466 live extensions as at 31 October 2021. The Enterprise Division is using the new software (Next Voice) in conjunction with the older Vadaexchange.