EPX LIMITED — Investor Presentation 2021

Aug 26, 2021

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INVESTOR PRESENTATION FY21 Results 27/08/2021

Disclaimer

This presentation (“Presentation”) has been prepared by EP&T Global Limited (“EP&T Global” or “Company”). You must read and accept the conditions in this notice before considering the information set out in or referred to in this Presentation. If you do not agree, accept or understand the terms on which this Presentation is supplied, or if you are subject to the laws of any jurisdiction in which it would be unlawful to receive this Presentation or which requires compliance with obligations that have not been complied with in respect of it, you must immediately return or destroy this Presentation and any other confidential information supplied to you by EP&T Global. By accepting this document, you acknowledge and agree to the conditions in this notice and agree that you irrevocably release EP&T Global from any claims you may have (presently or in the future) in connection with the provision or content of this Presentation.

Investment Risk

An investment in EP&T Global shares is subject to known and unknown risks, some of which are beyond the control of EP&T Global. EP&T Global does not guarantee any particular rate of return or the performance of EP&T Global nor does it guarantee any particular tax treatment. An investment in EP&T Global should be considered as Highly Speculative and High Risk due to the start up nature of the Company and its proposed business.

Financial Data

All dollar values in this Presentation are in Australian dollars (A$ or AUD) unless otherwise stated. Unaudited financial data contained within this presentation may be subject to change.

No Offer

This Presentation is not a prospectus, product disclosure statement or other offering document under Australian law (and will not be lodged with ASIC) or any other law. This Presentation is for information purposes only and is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction (and will not be lodged with the ASIC).

This Presentation does not constitute investment or financial product advice (nor tax, accounting or legal advice) or any recommendation to acquire shares of EP&T Global and does not and will not form any part of any contract for the acquisition of shares of EP&T Global.

Summary Information

This Presentation contains summary information about EP&T Global, its subsidiaries and their activities which is current as at the date of this Presentation. The information in this Presentation is of a general nature and does not purport to be complete nor does it contain all the information which a prospective investor may require in evaluating a possible investment in EP&T Global or that would be required in a prospectus or product disclosure statement prepared in accordance with the requirements of the Corporations Act. While EP&T Global has taken every effort to ensure the accuracy of the material in the presentation, neither the Company nor its advisers have verified the accuracy or completeness of the information, or any statements and opinion contained in this Presentation.

Not Investment Advice

Each recipient of this Presentation should make its own enquiries and investigations regarding all information in this Presentation including but not limited to the assumptions, uncertainties and contingencies which may affect future operations of EP&T Global and the impact that different future outcomes may have on EP&T Global.

This Presentation has been prepared without taking account of any person's individual investment objectives, financial situation or particular needs. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own investment objectives, financial situation and needs and seek legal, accounting and taxation advice appropriate to their jurisdiction. EP&T Global is not licensed to provide financial product advice in respect of EP&T Global shares.

Forward-Looking Statements

This Presentation may contain forward looking statements. The Australian words 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'could', 'may', 'target', 'plan' and other similar expressions are intended to identify forward-looking statements. Indications of, and guidance on, future earnings and financial position and performance are also forward-looking statements. Forward-looking statements are subject to risk factors associated with the Company’s business, many of which are beyond the control of the Company. It is believed that the expectations reflected in these statements are reasonable but they may be affected by a variety of variables and changes in underlying assumptions which could cause actual results or trends to differ materially from those expressed or implied in such statements. There can be no assurance that actual outcomes will not differ materially from these statements. You should not place undue reliance on forward-looking statements and neither EP&T Global nor any of its directors, employees, advisers or agents assume any obligation to update such information.

Disclaimer

None of EP&T Global’s respective advisers or any of their respective affiliates, related bodies corporate, directors, officers, partners, employees and agents, have authorised, permitted or caused the issue, submission, dispatch or provision of this Presentation and, except to the extent referred to in this Presentation, none of them makes or purports to make any statement in this Presentation and there is no statement in this Presentation which is based on any statement by any of them.

To the maximum extent permitted by law, EP&T Global and its respective advisers, affiliates, related bodies corporate, directors, officers, partners, employees and agents exclude and disclaim all liability, including without limitation for negligence or for any expenses, losses, damages or costs incurred by you as a result of your participation in an investment in EP&T Global and the information in this Presentation being inaccurate or incomplete in any way for any reason, whether by negligence or otherwise.

To the maximum extent permitted by law, EP&T Global and its respective advisers, affiliates, related bodies corporate, directors, officers, partners, employees and agents make no representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of information in this Presentation. Statements made in this Presentation are made only as the date of this Presentation. The information in this Presentation remains subject to change without notice.

Cooling off rights do not apply to the acquisition of EP&T Global shares.

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2

Agenda

1 FY2021 –RESULTS OVERVIEW

2 FY2021 –FINANCIAL OVERVIEW 3 GROWTH PLAN AND OUTLOOK

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FY2021 – RESULTS OVERVIEW

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Highlights

• Successful IPO completed in May 2021, raising $9.5 million for EP&T.

• Annualised contract value (ACV) increased by $3.3 million (43%) to $10.9 million during the year ended 30 June 2021.

• Unbilled Contract Value (UCV) has increased 57% from A$27.1m to A$36.6m over the same timeframe.

• The number of buildings contracted with EP&T increased by 49%, up from 259 at June 2020 to 387 at June 2021.

• EP&T’s global client footprint expands from 18 to 22 countries during FY21.

• Significant contract won with three subsidiaries of DWS Group GmbH & Co. KGaA (“DWS”) with combined ACV of $2.0 million and TCV of $6.0 million over the three year contract term.

• EP&T successfully entered the education vertical following the signing of five contracts in both Dubai and Australia with a combined ACV of A$335k and TCV of A$1.6m.

• Revenue of $6.1 million, a 9.7% decrease from prior year. Ability to convert new contracts into revenue significantly impacted by COVID-19 restrictions globally.

• Cash receipts of $7.6 million for the 12-month period down from $9.1 million in FY20 – impacted by the transition to a subscription-based model completed in FY21.

• Total cash on hand of $5.3 million as at 30 June 2021.

5

EP&T’s Key Operating Metrics

Positive trends in EP&T Global’s key operating metrics

$'000		FY18	FY19	FY20	**FY21 ***
Annualised Contract Value (ACV)	($'000)	5,011	6,217	7,649	10,872
ACV annual growth rate	(%)	9	24	23	43
CAGR (June 18-June 21)	(%)				28
Unbilled Contract Value (UCV)	($'000)	14,438	18,772	23,390	36,648
Total UCV annual growth rate	(%)	9	30	25	57
CAGR (June 18-June 21)	(%)				35
Lifetime Value (LTV)	($'000)	49,589	61,524	75,697	108,198
Total LTV annual growth rate	(%)		24	23	43
CAGR (June 18-June 21)	(%)				29
Average Term Remaining	(yrs)	2.7	3.0	3.1	3.4
Recurring revenue % total revenue	(%)	49	45	82	82

• In the process of being audited

Notes:

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• 1.ACV is defined as the annualised monthly contract value of contracts on hand at each period end.

• 2.UCV represents the total unbilled contract value remaining at each period end of contracts on hand.

• 3.LTV is the estimated gross margin contribution from contracts on hand over the projected life of the customer, including initial contract term and projected renewal rates

• 4.LTV has been calculated assuming a GP% of 73.4% (COGS of 4.8% and ongoing support costs as a % of ACV (21.8%) and a 3 year average ACV churn rate of 7.4% 5.ACV churn is calculated as total ACV losses as a percentage of opening ACV for a period

• 6.Recurring revenue is defined as contracted service and software revenue

6

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FY2021 – FINANCIAL OVERVIEW

Financial Results Profit and Loss Summary

• Revenue of $6.1 million, a 9.7% decrease from FY20

• The ability to convert new contracts into revenue was significantly impacted by COVID-19. Global restrictions to building access and travel combined to delay the commencement of the provision of ongoing services by EP&T to new customers. These delays do not reduce the total contract value to be derived by EP&T as the contract term only commences when ongoing services are first delivered.

• The Company granted temporary pauses to services and billing to a number of customers whose building occupancy was significantly impacted by COVID.

• Underlying EBITDA excludes:

• fair value adjustment of $4.0 million on the conversion to equity of all convertible notes at the time of EP&T’s IPO in May 2021.

• Initial Public Offering ('IPO') costs of $1.0 million

• impairment of assets of $2.0 million from revenues accrued and recognized in FY2018 and FY2019 under a discontinued revenue model

• finance costs related to convertible notes of $0.8 million

• share-based payments expense of $0.9 million relating to options issued prior to IPO.

	Consolidated	Aggregated
	30-Jun-21	30-Jun-20
	$	$
Revenue	6,077,746	6,733,134
Other income	1,219,357	850,652
Expenses	(10,554,122)	(10,055,627)
Underlying EBITDA	(3,257,019)	(2,471,841)
Impairment, restructure, IPO costs	(8,629,045)	(1,302,573)
Interest, taxation and depreciation	(270,797)	(332,574)
Net Loss After Tax	(12,156,861)	(4,106,988)

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8

Financial Results Balance Sheet Summary

• Cash on hand at 30 June 21 = $5.3m

• All debt, except for a long term bank loan of $560k repaid at IPO – including convertible notes, overdraft and shareholder loans

• No intangibles – R&D costs expensed as incurred

	Consolidated	Aggregated
	30-Jun-21	30-Jun-20
	$	$
Cash and cash equivalents	5,300,099	835,085
Other Current Assets	3,908,231	5,459,824
Total Current Assets	9,208,330	6,294,909
Non-Current Assets	5,059,224	3,807,101
Total Assets	14,267,554	10,102,010
Current Liabilities	5,370,171	9,985,175
Non-Current Liabilities	786,147	3,930,861
Total Liabilities	6,156,318	13,916,036
Net Assets	8,111,236	(3,814,026)

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9

Financial Results Cashflow Summary

• Cash receipts of $7.6 million for the 12month period down from $9.1 million in FY20 – impacted by transition to subscription-based model completed in FY21

• Other operating cashflows include R&D incentive and COVID stimulus payments

• $1.6m of investing cashflows relate to project implementation costs for projects installed or partially installed in FY21. This investment supports future revenues from ongoing fees for new projects when complete.

• Financing cashflows from IPO funds and issue of convertible notes prior to IPO.

	Consolidated	Aggregated
	30-Jun-21	30-Jun-20
	$	$
Cash flows from operating activities
Receipts from customers (inclusive of GST)	7,610,818	9,052,152
Payments to suppliers and employees (inclusive of GST)	(12,308,052)	(11,542,076)
Other operatingcashflows	1,267,255	759,585
Net cash used in operating activities	(3,429,979)	(1,730,339)
Net cash flows from investing activities	(1,757,833)	(31,110)
Net cash flows from financing activities	10,221,915	1,779,704
Cash and cash equivalents at the end of the financial year	5,300,099	265,997

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10

Annualised Contract Value (ACV)

Total ACV (Global, $m)

• ACV is generated from ongoing fees for the provision of access to EP&T’s edge software platform and associated contracted ongoing services, including data collection and aggregation equipment where required

• Contracts range from 3 years to 7 years in duration and fees are typically invoiced monthly or quarterly in advance

• Global ACV CAGR of 28% from June 2018 to June 2021

• At June 2021 YTD actual ACV is $10.9 million up from $7.6m at June 2020 – an annual increase of 43%

• $2.8m of new ACV added since EP&T lodged its prospectus on 19 March 2021

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FY21
annual
growth 43%
12.0
10.9
ACV added since
10.0 FY18 – FY21 March 21 = $2.8m
CAGR +28% 2.8 (34% increase)
8.0 7.6
6.2
6.0
5.0
8.1
4.0
2.0
0.0
Jun-18 Jun-19 Jun-20 Jun-21
A$m
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Notes:

• 1.ACV is defined as the annualised monthly fees charged under contracts on hand at each period end.

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ACV Breakdown at June 21 $000

ARR and ACV Backlog

• Total ACV contains three components:

• ARR: the annualised amounts being invoiced and recognized as revenue under long term contracts

• Backlog: ACV which is contracted, but not yet fully deployed so not being invoiced

• Funded projects: amounts invoiced under a discontinued customer engagement model where EP&T financed customer project costs.

• Included in ACV at 30 June 21 is ACV backlog yet to be deployed of $4.9 million

• $2.0 million of this is from the DWS contract awarded in June 2021 to be rolled out progressively over FY22

• Backlog of ACV starts to generate revenue when fully deployed so current backlog will contribute significantly to revenue when installed

• The deployment of new ACV has been impacted by COVID restrictions, however, as key growth markets in Europe and UAE emerge from restrictions the backlog can be implemented

• Some sites have been in backlog since FY20 as a result of COVID restrictions

• Delays to installation do not impact on the overall contract value for EP&T. The contract term commences from when the ongoing services commence.

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700
$10,876 5,307
4,869
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ACV Breakdown At June 20
$000
700
1,873
$7,648
5,075
Backlog Funded projects
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ARR
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Remaining Unbilled Contract Value (UCV)

Contract terms with EP&T Global’s clients are typically between 3 and 7 years. The current contracts on hand at 30 June 2021 have $36.6m of future ongoing fees yet to be invoiced.

Commentary

The graph shows the growth in unbilled contract value. This figure represents future amounts to be billed under the contracts on hand at that time.

The unbilled contract value at June 2021 is $36.6 million and the average remaining unexpired term on current contracts is 3 years and 5 months

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Unbilled contract revenue ($m)
FY21 annual
growth 57%
40.0 36.6
FY18 – FY21
35.0 CAGR +35%
30.0
23.4
25.0
18.8
20.0
14.4
15.0
10.0
5.0
-
Jun-18 Jun-19 Jun-20 Jun-21
A$m
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13

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GROWTH PLAN AND OUTLOOK

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Our Vision
To be the world’s most trusted brand in building energy efficiency
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Our Mission
To enhance building operational efficiency and create a sustainable future
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Our Purpose
To support every client’s Net-Zero journey
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Company
Highlights
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Globally proven technology – proprietary technology combining both hardware and software that is delivering energy savings results in all forms of non-residential real estate.

Proven energy savings – portfolio average of 22% pa energy savings, and annually over 100,000 tonnes of CO2 emissions avoided (equivalent to removing 22,000 cars off the road for a year)

Global blue chip client base – EP&T’s solution is currently installed in ~387 sites with leading global real estate brands across 22 countries

Large addressable market – EP&T has been successfully installed in commercial buildings, shopping centres, clubs, hotels, hospitals all over the world – the platform is applicable to all forms of non-residential real estate

Improving Operating Metrics and multiple positive initiatives underway

• Full transition to an Opex subscription-based contract model

• Expecting further growth in annualised contract value

• Strong increase in recurring revenues

• Further investment underway in sales and marketing

• Marketing initiatives leading to improved brand awareness

• Inbound client interest and growth in sales pipeline

16

What problem is EP&T solving?

EP&T products and solutions assist building operators to manage a number of challenges, including:

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Complexity in building operations

As there is a shift towards Smart Buildings the number of connected devices increases and building operators now require a holistic view of these devices in individual buildings and across a portfolio of buildings.

The rise of big data

The amount of data produced by buildings is growing. It is therefore increasingly difficult to channel the information into actionable insights that will help save energy consumption, improve financial performance and reduce emissions.

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Increasing price of energy

Energy costs are approximately

one-third of the operating expenses of commercial buildings*. With the rise of energy prices globally there is a need for building operators and owners to reduce the operating inefficiencies in buildings to control the rise in their energy costs.

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An increased focus on sustainability of building operations

Obtaining and retaining rating measures such as GRESB and NABERS have a meaningful impact on the occupancy levels and the value of the real estate.

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• Global Home Energy Management Systems (HEMS) and Building Energy Management Systems (BEMS) Market, Forecast to 2025, Frost & Sullivan, Aug 2019.

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Big data analytics is the foundation of our end-to-end, modular solution

CAPTURE

AGGREGATE & ANALYSE

SOLVE

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DATA SOURCES

INTELLIGENT SYSTEM

PERFORMANCE OPTIMISATION

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BMS DATA WEATHER MANAGEMENT ALERTS/FAULTS
REPORTING TRIAGE
ENERGY + WATER SUSTAINABILITY HEALTH +
ANALYTICS REPORTING WELLBEING
SENSORS METERS CURATED ACTION ITEMS
BUILDING TENANTS DEMAND
OCCUPANCY CONSUMPTION PERFORMANCE ENGINEERING
INTELLIGENCE MANAGEMENT
HISTORY REVIEWS EXPERTISE
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EP&T’s proprietary technology solution combines multiple information sources with cloud-based data analytics to detect real-time energy inefficiencies in buildings. This highly accurate identification of faults and inefficiencies enables EP&T to collaborate with building managers to improve and optimise building plant operating systems.

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Why do Clients trust EP&T Global?

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Global Reach

Portfolio support across different countries and continents

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Opex Model

Subscription-based contract with immediate ROI

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24/7 Curated Actions and Alerts

Data-driven building intelligence optimising around the clock

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Proven Energy Savings

& Emissions reduction

Average 22% energy reduction. >100,000 tonnes less CO2 every year

Cloud-based Technology

Customisable to the needs of client business objectives across all utilities, and always accessible

Passionate and

Knowledgeable Team

Deep industry experience supporting clients and delivering the results

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Customer-centric Solutions

We are always collaborative and consultative

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Sustainability Champions

Supporting clients on their Net Zero journey.

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Addressable Market Size Frost and Sullivan

BEMS Market: Revenue Forecast, Global, 2015–2019 and 2025

BEMS* Market opportunity

In 2019, total energy efficiency investments in buildings were over $205 billion. This includes all incremental spending on new energy-efficient equipment in buildings, as well as the full cost of refurbishments that reduce energy use.

Actual BEMS Market Revenues, Growth and Segmentation

The global BEMS market was estimated at $5.93 billion in 2019 and is expected to reach $9.54 billion by 2025 (equating to 61% growth over that period).

Whilst the COVID-19 pandemic is expected to negatively impact new building construction activity, as well as occupancy in existing building stock in several markets over the near-term, the long-term fundamentals remain strong for uptake of BEMS.

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10000 9,544
9000
8000
7000
5,926
6000
5,412
4,961
5000 4,544
4,162
4000
3000
2000
1000
0
2015 2016 2017 2018 2019 2025
BEMS Market Revenue ($ million)
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Source: Frost & Sullivan analysis Forecast assumes economic recovery in 2021 *Building Energy Management Systems (BEMS).

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Global Footprint: 22 countries, 4 continents

Blue chip clients

Domestic and international client base currently installed in ~ 387 commercial buildings. Average contract tenure over 5.4 years across total client base and 8.5 years for top 10 clients.

ACV split by building use

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7%
16%
54%
23%
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Commercial
Hotel & Leisure
Retail
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EUROPE
• Office in London
• 57 sites United Kingdom
• 57 sites across greater Europe
ASIA
including Holland, Portugal, Belgium, • Office in Hong Kong
Poland, Turkey, Malta, Spain, Germany • 14 sites
and Russia
AUSTRALIA
• Head office in Sydney
• 178 sites in major cities
and regional areas
NORTH AMERICA
UNITED ARAB EMIRATES
• 2 Sites in NY
• Office in Dubai
• 79 sites across Dubai
and Abu Dhabi June 2020, 259 sites
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June 2020, 259 sites June 2021, 387 sites = 49% growth

Priorities and Outlook for FY 22

Accelerate growth of EP&T

• Provide EP&T with the benefits of an increased profile that comes with the Company being a publicly listed company (EPX)

• Continue to target ACV growth and focus on customer retention

• Uncertainty exists relating to potential ongoing impacts of Covid 19.

Product and Communications

• Continued product innovation to meet the evolving requirements of our clients and to anticipate their future expectations. The expansion of the product suite is constantly being considered where it will result in cross/up-sell opportunities and increase EP&T’s addressable market

Sales Pipeline and Development

• Investment in Marketing - Targeted marketing activity to increase EP&T’s brand recognition, incoming enquiry and in turn sales opportunities to gain deeper levels of market penetration. This will include but not limited to the creation of new sales collateral, strategic digital communications, sponsorship of industry events etc.

• Invest in Sales – Investment in Sales resources to take advantage of EP&T marketing activities whilst developing independent pipeline opportunities.

Drive ARR Growth

• Expedite completion of $4.9m of projects under implementation

• Convert this backlog into ARR and operating cashflows

Future Focused - International Expansion, M&A

• EP&T has a pipeline of global sales opportunities and a proven track record of successfully entering new markets, from individual sites through to large multi-region portfolio owners. We intend to continue this strategy going forward.

• International expansion will be targeted in those regions where EP&T assess the addressable market opportunities lie for accretive expansion.

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22

The greenest and most cost effective energy is the energy you don’t use.

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