FIRSTWAVE CLOUD TECHNOLOGY LIMITED — Investor Presentation 2019

Aug 29, 2019

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Firstwave Cloud Technology Limited (FCT) FY19 Results

Disclaimer

Summary information

This Presentation contains summary information about FirstWave Cloud Technology Ltd (FirstWave) and its activities current as at 30 August 2019, unless otherwise stated. The information in this Presentation does not purport to be complete. It should be read in conjunction with FirstWave’s other periodic and continuous disclosure announcements lodged with the Australian Securities Exchange, which are available at www.asx.com.au.

Not financial product advice

This Presentation is for information purposes only and is not financial product or investment advice or a recommendation to acquire FirstWave shares and has been prepared without taking into account the objectives, financial situation or needs of individuals. Before making an investment decision, prospective investors should consider the appropriateness of the information having regard to their own objectives, financial situation and needs and seek legal and taxation advice appropriate to their jurisdiction. FirstWave is not licensed to provide financial product advice in respect of FirstWave shares. Cooling off rights do not apply to the acquisition of FirstWave shares.

Not tax advice

Tax implications for individual shareholders will depend on the circumstances of the particular shareholder. All shareholders should therefore seek their own professional advice in relation to their tax position. Neither FirstWave nor any of its officers, employees or advisers assumes any liability or responsibility for advising shareholders about the tax consequences of the return of capital and/or share consolidation. Financial data

All dollar values are in Australian dollars (A$) unless otherwise stated.

This Presentation is unaudited.

Future performance

Forward looking statements, opinions and estimates provided in this Presentation are based on assumptions and contingencies which are subject to change without notice, as are statements about market and industry trends, which are based on interpretations of current market conditions. Forward looking statements including projections, guidance on future earnings and estimates are provided as a general guide only and should not be relied upon as an indication or guarantee of future performance. An investment in FirstWave shares is subject to investment and other known and unknown risks, some of which are beyond the control of the FirstWave, including possible delays in repayment and loss of income and principal invested. FirstWave does not guarantee any particular rate of return or the performance of FirstWave nor does it guarantee the repayment of capital from FirstWave or any particular tax treatment. Persons should have regard to any risks contained in this Presentation. No representation or warranty, express or implied, is made as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this Presentation. To the maximum extent permitted by law, none of FirstWave, its directors, employees or agents, nor any other person accepts any liability, including, without limitation, any liability arising out of fault or negligence, for any loss arising from the use of the information contained in this Presentation. In particular, no representation or warranty, express or implied is given as to the accuracy, completeness or correctness, likelihood of achievement or reasonableness of any forecasts, prospects or returns contained in this Presentation nor is any obligation assumed to update such information. Such forecasts, prospects or returns are by their nature subject to significant uncertainties and contingencies. Before making an investment decision, you should consider, with or without the assistance of a financial adviser, whether an investment is appropriate in light of your particular investment needs, objectives and financial circumstances.

Past performance

Past performance information given in this Presentation is given for illustrative purposes only and should not be relied upon as (and is not) an indication of future performance. Not an offer

This Presentation is not, and should not be considered, an offer or an invitation to acquire FirstWave shares.

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Agenda

FY19 Performance

Progress on Path to Revenue

Summary

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Crystallising the Opportunity

FY19 Performance

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FY19 Chairman’s Message

“The progression of FirstWave’s Enable, Expand and Scale strategy is delivering truly exciting results. Having just completed our first fullyear of the Expand phase, we have actively established a growing international footprint with an immediate ‘line of sight’ to $45 million in annualised recurring revenue.”

Sam Saba, Chairman, 6 November 2018 to 30 June 2019

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FY19 Performance Highlights

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24% SaaS Revenue CAGR

26% Customer Order CAGR

$37m Invested Capital

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90% Recurring Revenue

Average 1.34 Services per Customer

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FY19 Key Metrics

	FY19	FY18	CHANGE
REVENUE	$8,831,731	$7,817,128	Up 13%
Licensing and Support	$8,531,088	$7,484,057	Up 14%
Professional Services	$300,643	$333,071	Down 9.7%
NPAT	($11,007,337)	($8,717,386)
Non-cash Share based expenses	($1,009,962)*	($109,244)	Up 825%
Capitalised Product and Development costs	$2,167,980	$1,531,906	Up 42%
Cash and Cash Equivalents at June 30	$8,061,168	$5,782,873	Up 39%
Capital Raised (net of expenses)	$11,275,008	$9,457,823
Shares on Issue	280,805,705	224,733,105
Shares under Option	38,951,333	19,520,000
Shares issued on exercise of Options	0	0

*In valuing stock options, the Black-Scholes valuation model has been applied with a volatility input measure of 64% based on historical share price movements. In the prior year this volatility measure was 34%'

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FY19 Capital Movement

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Operating Investing Financing
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Crystallising the Opportunity

Progress on Path to Revenue

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Go-to-Market maximises revenue

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‘Level 1’ Partner
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Global Security Vendors (GSVs)
Global System Integrators (GSIs)
FCT
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FCT signs

Level 1 Partner

Level 1 Partner or signs multiple signs direct to Level Level 2 Partners 2 partner

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‘Level 2’
Partners
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Customers

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Telco/SP
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Each Level 2 Partner

Each Level 2 Partner

signs multiple customers

upsells each customer to multiple products

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Path to revenue has clear milestones

‘Level 1’ ‘Level 1’ ‘Level 2’ ‘Level 2’ • Certification PoV for End Sale to End End Products Partner Partner Partner Partner • Offer & Sales Customer Customer & Customer X-Sell/ Upsell PoC/PoV OEM / Reseller PoV MSA / Enablement On-Boarding Bill • GTM Launch Agreement Reseller Agreement 1 2 3 4 5 6 7 8 9

Pitch & Demo First Contact

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Revenue
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Critical Path Milestones

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FY19 commenced with many milestones to be achieved

‘Level 1’ ‘Level 1’ ‘Level 2’ ‘Level 2’ • Certification PoV for End Sale to End End Products Partner Partner Partner Partner • Sales/Support Customer Customer & Customer X-Sell/ Upsell PoC/PoV Agreement PoV Agreement Enablement On-Boarding Bill • GTM Launch STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9

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SHELT Group Update – as at 1 August

‘Level 1’ ‘Level 1’ ‘Level 2’ ‘Level 2’ • Certification PoV for End Sale to End End Products Partner Partner Partner Partner • Sales/Support Customer Customer & Customer X-Sell/ Upsell PoC/PoV Agreement PoV Agreement Enablement On-Boarding Bill • GTM Launch Level 1 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9

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Telecel - RCA Level 2 Partner

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Indicates status at 1 August Investor Update

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SHELT Group Update – as at 30 August

‘Level 1’ ‘Level 1’ ‘Level 2’ ‘Level 2’ • Certification PoV for End Sale to End End Products Partner Partner Partner Partner • Sales/Support Customer Customer & Customer X-Sell/ Upsell PoC/PoV Agreement PoV Agreement Enablement On-Boarding Bill • GTM Launch Level 1 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9

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Telecel - RCA Level 2 Partner New Level 2 Prospect New Level 2 Prospect

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Indicates status at 1 August Investor Update

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GSI Update – as at 1 August

‘Level 1’ ‘Level 1’ ‘Level 2’ ‘Level 2’ • Certification PoV for End Sale to End End Products Partner Partner Partner Partner • Sales/Support Customer Customer & Customer X-Sell/ Upsell PoC/PoV Agreement PoV Agreement Enablement On-Boarding Bill • GTM Launch Level 1 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9

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GSI Update – as at 30 August

‘Level 1’ ‘Level 1’ ‘Level 2’ ‘Level 2’ • Certification PoV for End Sale to End End Products Partner Partner Partner Partner • Sales/Support Customer Customer & Customer X-Sell/ Upsell PoC/PoV Agreement PoV Agreement Enablement On-Boarding Bill • GTM Launch Level 1 STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9

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New Level 1 Prospect

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New Level 2 Prospect

New Level 1 Prospect

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Telco Update – as at 1 August

‘Level 1’ ‘Level 1’ ‘Level 2’ ‘Level 2’ • Certification PoV for End Sale to End End Products Partner Partner Partner Partner • Sales/Support Customer Customer & Customer X-Sell/ Upsell PoC/PoV Agreement PoV Agreement Enablement On-Boarding Bill • GTM Launch STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9

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Telco Update – as at 30 August

‘Level 1’ ‘Level 1’ ‘Level 2’ ‘Level 2’ • Certification PoV for End Sale to End End Products Partner Partner Partner Partner • Sales/Support Customer Customer & Customer X-Sell/ Upsell PoC/PoV Agreement PoV Agreement Enablement On-Boarding Bill • GTM Launch STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9

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New Partner 1 New Partner 2 New Partner 3 New Prospect 1

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Cisco Update – as at 1 August

‘Level 1’ ‘Level 1’ ‘Level 2’ ‘Level 2’ • Certification PoV for End Sale to End End Products Partner Partner Partner Partner • Sales/Support Customer Customer & Customer X-Sell/ Upsell PoC/PoV Agreement PoV Agreement Enablement On-Boarding Bill • GTM Launch STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9 Level 1 Level 2 Partner 1 Prospect 2 Prospect 3 Prospect 4

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Cisco Update – as at 30 August

‘Level 1’ ‘Level 1’ ‘Level 2’ ‘Level 2’ • Certification PoV for End Sale to End End Products Partner Partner Partner Partner • Sales/Support Customer Customer & Customer X-Sell/ Upsell PoC/PoV Agreement PoV Agreement Enablement On-Boarding Bill • GTM Launch STEP 1 STEP 2 STEP 3 STEP 4 STEP 5 STEP 6 STEP 7 STEP 8 STEP 9

Level 1

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Level 2 Partner 1 New Partner 2 New Partner 3 New Prospect 1 New Prospect 2

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Partners by region

Current Level 1	3
Current Level 2	5
New Level 1	0
New Level 2	5
Prospect Level 1	2
Prospect Level 2	6

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Partner Update

1 August 2019 3 Level 1 Partners 5 Level 2 Partners 4 Level 2 Prospects

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30 August 2019

3 Level 1 Partners 10 Level 2 Partners 2 Level 1 Prospects 6 Level 2 Prospects

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Key Partner Commentary

• Cisco OEM and (Software Licencing Development Agreement)

• Velocity increasing on the path to revenue

• Cybersecurity Laboratory operational enabling progress on the product roadmap

• Technical workshops scheduled on product roadmap for the first week of September

• Two level 2 partners and two level 2 prospects

• SHELT.com

• 2 new level 2 prospects added

• FCT and SHELT.com to attend Telecoms World Middle East in September and jointly presenting a session on Driving Telco revenue through secure SME’s

• Telco Update

• Three new level 2 partners and one prospect added

• Global Systems Integrator (GSI)Update

• Two new level one prospects and one new level 2 prospect added

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In Summary

• FY19 saw significant improvement in FirstWave’s strategic positioning internationally

• With $11m in capital raised in FY19

• The path to revenue has been significantly progressed since 1 August • 2 new level 1 prospects

• • 5 new Level 2 Partners

• • 2 new Level 1 Prospects

• • 2 new Level 2 Prospects

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THANK YOU

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