INTEGRATED RESEARCH LIMITED — AGM Information 2020

Nov 24, 2020

Integrated Research Limited Annual General Meeting

25 November 2020

Paul Brandling Chairman

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ONLINE ATTENDEES – QUESTION PROCESS

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When the Question function is available, the Q&A icon will appear at the top of the app

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To send in a question, click in the ‘Ask a question’ box, type your question and press the send arrow

Your question will be sent immediately for review Received

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ONLINE ATTENDEES – VOTING PROCESS

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When the poll is open, the vote will be accessible by selecting the voting icon at the top of the screen

To vote simply select the direction in which you would like to cast your vote. The selected option will change colour For Against Abstain

There is no submit or send button, your selection is automatically recorded. You can change your mind or cancel your vote any time before the poll is closed

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Paul Brandling Chairman

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Peter Adams CFO

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Performance Review (A$M)

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Delivering record results

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110.9
100.8 24.2
21.2
UP
UP
10% OPERATING
14%
REVENUE CASH FLOW [1]
2019 2020 2019 2020
24.1
21.9 22% 22%
UP NET PROFIT
Consistent
NET PROFIT 10% AFTER TAX
AFTER TAX MARGIN
2019 2020 2019 2020
31% 29% 7.25c 7.25c
DOWN
Maintained
RETURN ON 2ppt DIVIDENDS
EQUITY PER SHARE
2019 2020 2019 2020
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Note1: Operating cashflow was up 5% on a “like for like” adjusting for new AASB leasing standard

6

Revenue Analysis - Geographic

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APAC consistent growth with solid ROW performance

Asia Pacific RevenueA$M

Europe Revenue£M

Americas RevenueUS$M

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10
20
9
18
8
16
7
14
6
12
5
10
4
8
3
6
2
4
1
2
0
0
2013 2014 2015 2016 2017 2018 2019 2020
2013 2014 2015 2016 2017 2018 2019 2020
APAC achieved revenue Europe revenue declined
growth of 17% with strong by 1%; UC licence growth
UC licence growth. Seven offset by lower Payments
years of consecutive and Infrastructure
growth
(cyclical)
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60
50
40
30
20
10
0
2013 2014 2015 2016 2017 2018 2019 2020
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Americas momentum improved in 2H after slow 1H; 2H licence fees grew in all product lines; region breaks US$50 million in revenue

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7

Revenue Analysis - Product

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Step change: remote working and cashless transactions

Unified Communications $M

Payments $M

Infrastructure $M

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70 20 35
60 30
50 15 25
40 20
10
30 15
20 10
5
10 5
0 0 0
2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020 2013 2014 2015 2016 2017 2018 2019 2020
AUD USD AUD USD AUD USD
Unified Communications Payments declined by 14% Infrastructure achieved
achieved growth of 17% : (underlying base growing – growth of 9%: High margin
strong renewal and capacity see subscription slide). Nine product line with sticky
sales. 29 new customers; new customers; future driver: customer base
future driver: remote working increased cashless
transactions
8
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Proforma Subscription Revenue*

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Unified Communication A$M Payments A$M Infrastructure A$M
60.0 12.0 25.0
50.0 10.0 20.0
40.0 8.0
15.0
30.0 6.0
10.0
20.0 4.0
5.0
10.0 2.0
- - -
FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20 FY17 FY18 FY19 FY20
Unified Communications Payments up 27%; strong Infrastructure up 8%:
up 11%; three platforms bookings fueling High margin product line
served (Microsoft, Avaya subscription growth with sticky customer
and Cisco) base
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9
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• • proforma subscription revenue is a non-statutory alternate view of revenue (unaudited)

Business model evolution

Summary:

• No changes to accounting policies

• – Compliance with International Financial Reporting Standards (IFRS)

• New cloud solutions recently released

• – Cloud revenues expect to grow faster than on-prem revenue

• – Introduce new SaaS metrics as business becomes more material

Established model (refer bars on charts):

• Licence revenue recognised upfront

• – Maintenance revenue over time

• Emerging model (refer lines on charts):

• SaaS revenue recognised over time

• Timing of cashflows expected to be similar to established model

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Charts are based on a hypothetical example assuming Total Contract Value of $360k for a three year period that is renewed for the same value for a further three years. The on-premise licence example assumes cash paid in three equal instalments. The hypothetical example is to illustrate revenue and cashflow differences between the models. It does not represent actual or intended pricing or other commercial realities. It ignores the time value of money. The charts are not forecasts.

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Trading update

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rading update	rading update
Macro environment		YTD Performance		1H	considerations	Key Success Drivers
–	Economic	–	Year to date	–	A significant	–	Market growth
	uncertainty		revenue behind		proportion of	–	Expand
–	Pandemic		prior year		licence sales		addressable
	conditions	–	Sales cycles		occur in last few		market
–	US election		lengthened due		weeks of the	–	Move to cloud
–	Exchange rate		to current		reporting period	–	New products
	volatility		environment	–	Continuing	–	New customers
		–	FX headwind		currency volatility	–	Increasing sales
				–	Risks: temporary		capacity
					sales deferrals
					and currency	(refer CEO address
					swings may mean	following this
					1H revenue and	presentation)
					NPAT less than
					prior
					corresponding
					period

11

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John Ruthven CEO & Managing Director

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Building the IR of the future

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Through innovation acceleration

Strategy - continue to build long-term recurring revenues;

• ־ Leverage structural shift in the market – remote working & cashless payments; with an increased focus on collaboration and payments

• ־ Transition the business to cloud; leveraging the strong competitive position to take customers from on-premises, to hybrid, to cloud

• ־ Expand into adjacent areas in collaboration and payments; as well as higher-value segments

Products - IR is the leading global provider of user experience and performance management solutions for Unified

Communications, Payments and IT Infrastructure

Customers - global People - deep domain enterprise customer base expertise; product spanning diverse industries champions; solution & and including more than customer focused; 25% of Fortune 500 experienced global companies leadership

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Three Market Dynamics

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Short-term volatility, long-term growth

	Collaboration	Transactions	Cloud
Structural	Shift to remote working;	Accelerated shift to	Public cloud spending
change	500m global workers	digital payments;[Visa	to accelerateto 18.8%
	estimated to be remote	reported that their	CAGR over 2021-20243
	in CY2021 (40% of	annual US transaction	[after 6.1% growth in
	knowledge workers)1	volumes are up 30% for	20203]
		online transactions
What it means	- 48% YoY growth of conferencing users in CY20202	excluding travel, whilst in-store is down 5%]4	- Cloud UC migration to accelerate to 11.6% CAGR for CY19-243
	- Accelerated move to cloud - Increase in multi-vendor environments - Work practices changed forever (remote workers grow to 600m by 2024)1	- One off -1.7% reduction in global noncash annual volume CY20 v CY19, against forecast growth of 14%5 - Revised outlook of 11.5%	- 84% of banks globally planning to move mission- critical systems into the cloud6
		CAGR for CY19-235

• 1: Gartner remote workers forecast, Aug 2020

• 2: Gartner UC Global Forecast, Sep 2020

• 5: Capgemini world payments report 2019, 2020

• 6: ACI/Ovum Survey: Payments Modernization in the Cloud: An Inflection Point in the History of Payments, Aug 2020

• 3: Gartner Public Cloud Services, Worldwide, 2018-2024, 3Q20 Update

• 4: Visa Q42020 Earnings Results, Oct 2020

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Product Strategy Accelerate innovation and reduce time to market

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IR invests 20% of revenue on R&D to drive sustainable growth

	goal	financial outcome	scorecard	key deliverables
Value	prioritise investment	revenue growth	accelerating	new SaaS & hybrid
	to bring new			products
	products to market
Velocity	efficient	margin improvement	accelerating	extend SaaS
	development shop			platform, reduce
	(Agile)			time to market; more
Quality	robust and reliable	lower cost of support	high	frequent releases >95% satisfaction,
	products			reduce support queues
	IRIS (IR Innovation Success) end-to-end process

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Product Futures

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Focus on Collaboration & Payments – leverage adjacencies

Product line	Collaborate	Transact	Hybrid Platform
FY21 H11 FY21 H22 2022+2	Microsoft Teams (hybrid & cloud) Zoom Cisco WebEx Advanced cross- vendor/ platform troubleshooting Advanced Analytics Additional UCaaS vendors	Payments Analytics Simple Switch Integration Real-Time Payments Payments Analytics Data Sources Payments Insights Payments Analytics Adjacencies	Agent Technology Hybrid Data in Cloud Data Insights Machine Learning Cloud Marketplace

1: Released 2: Planned release

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Customer Mix

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Mission critical software – sold to Tier 1 customers

	Product line	Collaborate	Transact	Infrastructure
	Customers
	Partners & Service Providers
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Customer Demographic

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Mission critical software – sold to Tier 1 customers

Product line Collaborate Transact Market size 450m+ UC endpoints1 (F)766.1bn CY (noncash transactions) Value proposition Ensuring excellent user experience and enhanced adoption of mission critical communication tools Simplifying th complexity of managing pa Target customer Enterprise, Telco, Managed Service Providers Banks, Acquir Processers, M / Retailers	Infrastructure 202 NonStop servers e yments Optimizing the infrastructure that supports the world's most mission-critical applications ers / erchants Finance, Health, Telco, Distribution, Manufacturing
: Gartner UC Global Forecast, Sep 2020 : World Payments Report 2020, Capgemini

1: Gartner UC Global Forecast, Sep 2020

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2: World Payments Report 2020, Capgemini

Customer Case Studies

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Mission critical software – sold to Tier 1 customers

	Collaborate Transact Infrastructure Customer Problem Video conferencing platform failure or poor quality Customer experience; payment failures & declines; 45,000 lanes Thousands of transactions a second; ATMs, merchant services, cards, retail Solution Proactively manage user experience with real time metrics Real time performance metrics visibility and tracking Manage hardware and payment applications; thresholds for ‘standard operating’ Outcome Land & expand; ‘single pane of glass’; video transformation project; expansion Contract extension; customer for 10+ years; new 5 year agreement; monitoring payment network Contract expansion; customer for 25 years; contract consolidation; extended term; new capability

19

We are a tribe

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Behaviours are values in action

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Key Success Drivers

Maintain the base, grow the base, add new customers

Move to Cloud -

Market growth -

leverage growth in UC conferencing (complexity) and digital payments, hold Infrastructure flat

leverage acceleration in workloads moving to Cloud; benefit of hybrid competitive advantage

Expand addressable

New Products - retain customers and increase share-of-wallet with cloud & hybrid products; increase revenue mix from new products

market - extend reach in addressable market with ‘agent’ technology; simple switch integration

New customers -

accelerate new customer acquisition; leverage structural market changes of remote working and cashless payments; new products

Increasing sales

- capacity flex coverage model to new business; invest in digital channels; extend MSP channel – products & commercials

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Integrated Research Limited Annual General Meeting

25 November 2020

www.ir.com

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