FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Interim / Quarterly Report 2022

Feb 8, 2022

Q2 FY22 Shareholder Update 9 February 2022

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Q2 FY22 Shareholder Update | 9 February 2022

Today’s Presenters

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J O H N GR AN T

Chair man

(Interim CEO July 2021 to Januar y 2022)

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DANNY MAHER

M a n a g i n g D i r e c t o r a n d C E O

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IAIN BARTRAM C F O and C o m p a ny Secretary

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Agenda

1. Q2 Highlights

2. Q2 Financial Performance

3. MD/CEO Update

4. Wrap up

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Q2 Highlights

• Successfully launched CyberCision platform for Service Providers

• Now focused on delivery of CyberCision mobile ‘front-end’ in Q3

• Total revenue up 2% QoQ

• Annualised revenue was in line with Q1 with domestic up and international down QoQ

• • Operating expenses down QoQ and capex for software R&D consistent with Q1

• • Opmantek acquisition and $14m capital raise successfully completed (post end Q2)

• Strong cash position of $13.34m at 31 December 2021 with cash burn down QoQ

• New appointments early in Q3

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Q2 Financial Performance Iain Bartram – CFO and Company Secretary

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Q2 Financial Performance - Revenue

• Total revenue up 2% QoQ to $1.77m

• Total annualised recurring revenue in line with Q1 at $6.95m

• Domestic up 4% to $6.26m

• International down 23% to $0.69m primarily due to return of a 5,000-seat email licence held by DWS as marketing inventory

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Q2 Financial Performance – Expense and Cash

• Expense

• Reduced headcount by 9 FTE = $125k p/m ongoing offset in the short term by $140K in one-off payments for accrued leave and redundancy

• $1.5m annualised cost out achieved in Q2 and ~$4m FY22 YTD

• Cash

• $2.19m collected from customers, (FY22 YTD $4.79m vs. $1.02m quarterly average in FY21)

• Strong management focus continues to reduce cash burn

• Cash costs capitalised of $0.75m consistent with Q1

• Cash balance at 31 December of $13.34m

• On target for $500k cash burn p/m by 30 June and tracking for cash flow breakeven with existing capital

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Opmantek acquisition completed on budget

• Acquisition complete (14-Jan) with 100% Opmantek shareholder acceptance

• Transaction costs on-budget

• Share issue and capital raise

• Tranche 1 of Placement and Rights Issue (139.4 million shares) issued at $0.07 (total proceeds = $9.76m)

• Equity consideration of 691 million shares issued to Opmantek shareholders

• Tranche 2 of Placement (60 million shares) issued at $0.07 (total proceeds = $4.2m)

• Cash balance at 31 January of $13.68m

• Appointments

• Danny Maher appointed Managing Director and CEO

• Ray Kiley appointed Non-Executive Director

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In Summary

• Revenue flat

• Costs significantly down

• Business fully funded through $14M capital raise

• Acquisition completed and integration started

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MD / CEO Update Danny Maher – Managing Director & CEO

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Opmantek Q2 Highlights

• Strong December sales and new business wins

• ARR at 31 December 2021 of A$3.75m

• Key contract extensions:

• Telmex (Mexico) – 12-month extension

• Claro (Dominican Republic and Ecuador) – 12-month extension

• Importantly for the merged business, 5 new contracts commencing in Q3 will add total ARR of >A$500k to FCT Q3 revenues

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Initial Observations

• Still early days as new CEO – 4 weeks in the job

• Many positives incl. some surprises

• Transformative nature of transaction already evident

• Diversified international revenues

• New products with 100% owned IP

• Telstra can be given increased focus as a key account

• Cost synergies are being realized with overall expenses reduced by over $300k per month

• Cross-selling has commenced

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Near-term Priorities in 3 areas

1. Spend less

• Restructuring decisions already made expected to deliver further cost savings of $2m annualised:

• Merging sales functions under one leader (San Francisco-based)

• Removing offshoring of software development for FirstWave

• Aligning product management and marketing functions

• Continue to rationalise number of platforms deployed globally

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Near-term Priorities in 3 areas

2. Grow faster

• ARR of >$500k new contracts signed in December

• Onboard Microsoft secure Internet of Things (IoT) management

• Deliver CyberCision frictionless email and mobile reporting

• Implement digital marketing for CyberCision

• Re-energise co-marketing with Partners

• Launch new services leveraging Opmantek IP

• Identify further opportunities for cross-selling

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Near-term Priorities in 3 areas

3. Progress culture and strategy

• Complete operational integration of FirstWave and Opmantek

• Transition to sales-led mindset of a high-growth global tech company

• Delivery of new strategic plan for combined company with refined budgets

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In Summary

• I personally ‘am in’ as an invested CEO

• The rationale for the acquisition is already proving true

• Integration of the two businesses as one Company is going well

• It’s full steam ahead as a new Company

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Wrap up John Grant – Chairman

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Wrap up

• Q2 will go down as a defining quarter for your Company

• You have a new Company with:

• A broader product portfolio and new channels to market

• Synergies in revenue and expense

• A stronger Board

• But most importantly you have:

• A refreshed and committed executive team

• An invested CEO

• Renewed enthusiasm for the opportunity ahead

• I believe we are in very good hands

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Q&A

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Thank you

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