INTEGRATED RESEARCH LIMITED — AGM Information 2021

Nov 23, 2021

Integrated Research Limited Annual General Meeting

24 November 2021 Peter Lloyd Chairman

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Peter Lloyd Chairman

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Peter Adams CHIEF FINANCIAL OFFICER

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FY21 Annual results review (A$M)

New product launches and sales execution drive 2H recovery following weak 1H

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110.9
78.5
29%
REVENUE
Jun-20 Jun-21
24.1
7.9 67%
NPAT
Jun-20 Jun-21
24.1
NPAT IN
CONSTANT 11.9
51%
CURRENCY
Jun-20 Jun-21
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96.4
CASH RECEIPTS 78.8
FROM
18%
CUSTOMERS
Jun-20 Jun-21
24.2
21.1
OPERATING
13%
CASH FLOW
Jun-20 Jun-21
5.5
4.7
16%
NET CASH
Jun-20 Jun-21
7
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2H FY21 Results (A$M)

Improved 2H performance - revenue and profit recovery

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57.7
53.2
44.4
34.1
30%
1H FY20 2H FY20 1H FY21 2H FY21
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REVENUE

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12.3
11.8
9.0
NPAT IN
210%
CONSTANT
CURRENCY 2.9
1H FY20 2H FY20 1H FY21 2H FY21
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13.2
11.0 11.3
9.8
OPERATING 14%
CASH FLOW
1H FY20 2H FY20 1H FY21 2H FY21
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38.9% 38.5% 39.4%
26.4 PT
EBITDA MARGIN 13.0%
1H FY20 2H FY20 1H FY21 2H FY21
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Note: growth metrics represent FY21 2H vs FY21 1H

8

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.

9

Geographic and Product revenue analysis Group proforma subscription revenue was US$52.1 million (down 3% on prior year)

Geographic

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Americas - US$M
60
50
40
30
20
10
0
2015 2016 2017 2018 2019 2020 2021
Proforma subscription Statutory
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Asia Pacific - A$M

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20
18
16
14
12
10
8
6
4
2
0
2015 2016 2017 2018 2019 2020 2021
Proforma subscription Statutory
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Europe - £M
10
8
6
4
2
0
2015 2016 2017 2018 2019 2020 2021
Proforma subscription Statutory
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Product

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Collaborate $M Infrastructure $M
Transact $M
35
70 20
30
60
50 25 15
20
40
15 10
30
10
20
5
5
10
0
0 0
2015 2016 2017 2018 2019 2020 2021
2015 2016 2017 2018 2019 2020 2021 2015 2016 2017 2018 2019 2020 2021
Proforma subscription AUD Proforma subscription USD Proforma subscription AUD Proforma subscription USD Proforma subscription AUD Proforma subscription USD
Statutory AUD Statutory AUD Statutory AUD
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10

Note: Proforma subscription revenue is a non-statutory alternate view of term licence and maintenance revenue (unaudited); refer appendix for calculations

TCV and Cash Operating Expenses (A$M)

Key measures of underlying performance going forward

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99.9
75.1
53.2
46.7 45.8
29.2
TCV
1H FY20 2H FY20 FY20 1H FY21 2H FY21 FY21
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66.0
55.1
CASH
36.0
OPERATING 30.0 28.3 26.8
EXPENSES
1H FY20 2H FY20 FY20 1H FY21 2H FY21 FY21
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Total Contract Value (TCV)

• a key driver of underlying momentum

• is not an accounting measure

• represents “in year” contract signings for new

• and renewal business (excluding residual values) - will be reported semi annually with results

• release

• 2H is strongest half for both FY21 and FY20

Cash operating expenses

• a key operating metric

• represents total expenditure (excluding D&A)

• monitored relative to TCV performance

• Ratio of TCV to cash operating expenses for 2H

• FY21 was 1.7 (FY20 2H ratio was 1.5)

11

Investment in innovation

…the key to future growth

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Innovation
94%
Cloud Platform
36%
On-prem
R&D 37%
Investment
Cloud Transact
2%
Cloud Collaborate
Maintenance & Currency
25%
6%
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Key takeaways:

• IR remains firm to innovation agenda

• FY21 development spend was $12 million

• High investment initiative to cloud (~63%)

• Four new products released during the year

• Cloud platform supports multiple markets

• Cloud platform to facilitate new market segments

• Continued investment is key to growth

12

Net cash flow analysis

Positive operating cash flow funds growth investments

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Strong balance
Free cashflowsheet – net [1] (ex
30
growth investments)cash $4.7M
21.1 12.0 $18.5 million
20
100% cash
6.5 collection
conversion rate
10
1.9
5.5
4.7
Development
spend includes
0
Opening net cash Cash from operations Development spend FY20 Final dividend FX, Interest & other Closing net cash SaaS platform
Strong balance
sheet – no debt
A$M
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13

Note 1: Free cashflow (ex growth investments) means cashflow from operations, less tax, interest and maintenance capex

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John Ruthven CHIEF EXECUTIVE OFFICER

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Self-funding a new SaaS product suite to complement established on-prem business

What is driving the change in business model;

1. Enhance our leverage to structural market changes – hybrid working and cashless payments

2. Expand our market opportunity

3. Enhance competitive strengths and increase customer relevancy

4. Deliver new products to market faster

5. Build for scale to accelerate growth and profitability

15

Transition underway

Executing clear plan to transition to higher quality growing SaaS based subscription revenues

New SaaS Extend and Product Expand into new segments products Enhance Growing share of Higher level Revenue Upfront revenue recognition subscription revenues of ARR Proforma subscription TCV & free SaaS Key metric revenue cash flow metrics

16

Increasing leverage to structural market changes - hybrid working

What we do

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On-premise Hybrid Cloud Predictive Digital
monitoring & monitoring monitoring analytics employee
trouble-shooting & trouble- & trouble- & AI experience
shooting shooting
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Trends driving a) Flexible work is here to stay the b) Majority of employers are re-designing workspaces for hybrid work market c) Hybrid work has extended the workplace boundary change

Use cases

Monitor & troubleshoot Proactively identify & Predict & resolve Optimize employee the quality of user resolve experience potential issues before productivity through experience impacting issues they occur intelligent insights Products >2 years old Products <2 years old Future roadmap

17

Enabling enterprises to deliver hybrid working

Phased take-up

Chaos Order Innovation do whatever it takes – use management tools – new and emerging existing tools, work-arounds start with evaluating use cases, vendor tools convergence

‘Although these [vendor] tools are helpful, they offer less breadth and detail than specialised UC monitoring tools, such as those offered by IR (Prognosis) …’

Source : Guidance for Migrating to UCaaS Solutions – Gartner, 5-JAN-21

Proof points

employees now use ear-to-ear – there are at increase in office collaboration tools from least 11 points of failure collaboration space devices multiple vendors between receiver & sender to accommodate hybrid working

18

Collaborate market and opportunity IR well placed to leverage move to ’hybrid work’

opportunity

1. Long-tail with existing on-premise customers as well as new prospects

2. MS Teams, Zoom and Webex up-sell and cross-sell to existing, as well as new prospects

3. Expand our TAM – collaboration spaces, emerging new and sophisticated use cases

Source: Gartner UC Market Forecast 4Q20 – Jan 2021

19

Increasing leverage to structural market changes – cashless payments

What we do

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Infrastructure Payments Card Real-Time Predictive
monitoring monitoring payments & High- analytics
& trouble- analytics Value and AI
shooting payments
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Trends driving a) Massive shift in consumer buying behaviour the b) Major advances in technology and connected devices market c) Government policies and regulations change

Use

cases

Monitor the availability Provide insights into Ensure rapid detection Actionable and throughput of payment flows to of blockages in high dashboards for next payment channels maximise business value payment generation real-time and partners value processing payment types

Products >2 years old

Products <2 years old

Future roadmap

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Transact market and opportunity IR is well placed to benefit from cards growth and new payment types

opportunity

1. Grow with our customers – payment volumes are increasing

2. Expand our base – new payment types (RTP & High-Value)

3. Increase our value – Insight and Data use cases

Note: Data is for 2020, source “World Payments Report 2021”, Capgemini and “Prime Time for Real-Time Report 2021”, ACI Worldwide

21

Product strategy

New product launches expand addressable market and leverage to long term growth trends

predictive analytics smart intelligence A$1.2B TAM cloud edge deep legacy

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marketplace
wide open API’s
new vendors
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22

Quality customer base

Long-term, high value relationships based on mission critical solutions

Customer Tenure 15+ years Contract Length 3+ years Service Providers New Logos

23

FY22 customer wins validate enhanced value proposition

Supporting large enterprise on their journey – on-prem, hybrid & cloud

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new customer through new to existing new customer expansion service provider >$1.0M <$500K >$500K <$500K hybrid hybrid on-premise on-premise Collaborate Collaborate Collaborate Transact & Infrastructure Collaborate Premium + added MS Teams PCA replacement; expansion of existing MS Teams Collector to mission-critical foot-print existing contract environment 145,000 users on-premise Avaya 20,000 Cisco endpoints Non-stop & Base24 environment

Confidential Internal Only – Do not share externally to partners, vendors or customers

24

FY22 key performance indicators update

Customer growth	KPI	New customer	KPI	Product	KPI	Business Model	KPI
& retention		acquisition		innovation		Transition
TCV from new				Percent of TCV from		Growth in cloud
products & capacity	20%	New customers	75	products released in	15%	deferred revenue	100%
to existing customers				the last 5 years		backlog
A little behind plan		Tracking to plan		Behind plan		A little behind plan
Proforma subscription Revenue retention	92%	TCV from new customers	30%	Extend 3rd party strategic relationships		Systems & process readiness to report SaaS metrics
Ahead of plan		Ahead of plan		Good progress		Good progress
Customer retention	95%			Development spend to TCV	14%
Right on plan				Ahead of plan

25

Trading update & summary

1. FY22 YTD TCV up on pcp - new products, 'hybrid' traction

2. Reported revenue and NPAT broadly in line with pcp – impact of change in revenue mix as SaaS contracts are recognised over time

3. Positive FCF, solid balance sheet supports on-going product roadmap

4. Strategy to enhance leverage to structural market changes – hybrid working and cashless payments

5. Transition underway: self-funding a new, SaaS offering to complement established on-prem solutions

6. ⎼ increases relevancy

7. ⎼ expands addressable market

8. ⎼ increases speed to market

9. ⎼ accelerates revenue growth and profitability

26

Disclaimer

SUMMARY INFORMATION

This document and the associated transcript (together “the presentation”) has been prepared by Integrated Research Limited (ABN 76 003 588 449) (IRI). The presentation provides general background Information about IRI's activities current at the date of preparation. IRI is not responsible for updating, and does not undertake to update, the presentation. It contains information in a summary form and does not purport to be complete. It should be read in conjunction with IRI's other announcements released to ASX (available at www.asx.com au).

NOT INVESTMENT ADVICE

The information contained in the presentation does not constitute investment or financial product advice or a recommendation to acquire shares or other financial products. It does not take into account the investment objectives, financial situation or needs of any particular investor. Investors should consider these factors, with professional advice if appropriate, before making an investment decision.

FINANCIAL INFORMATION

All dollar values are in Australian Dollars (A$) unless stated otherwise. All financial information is presented in respect of the year ended 30 June 2021 unless stated otherwise. The presentation contains certain non-IFRS financial measures that IRI believes is relevant and appropriate to understanding its business. The presentation uses proforma subscription revenue, which is used consistently without bias year on year for comparability and to present a clear view of underlying results. A number of figures, amounts and percentages in the presentation are subject to the effect of rounding.

FORWARD LOOKING STATEMENTS

The presentation contains certain "forward-looking statements”. The 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. While due care and attention has been used in the preparation of forward-looking statements, they are not guarantees of future performance and involve known and unknown risks, uncertainties, assumptions and other factors, some of which are beyond the control of IRI, that may cause actual results, conduct, performance or achievements to differ materially from those expressed or implied in such statements. There can be no assurance that the actual outcomes will not differ materially from these statements. You are cautioned not to place undue reliance on forward-looking statements, particularly in light of the current economic climate and the significant volatility, uncertainty and disruption caused by the outbreak of COVID-19. Neither IRI nor any other person gives any representation, warranty, assurance or guarantee that the occurrence of the events expressed or implied in any forward-looking statements in the presentation will actually occur. All forward looking statements in the presentation reflect views only as at the date of this presentation. Except as required by applicable law or the ASX Listing Rules, IRI disclaims any obligation or undertaking to publicly update any forward-looking statements, whether as a result of new information or future events or otherwise.

PAST PERFORMANCE

Statements about past performance are not necessarily indicative of and should not be relied upon as an indication of, future performance.

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NOT AN OFFER

The presentation is for information purposes only and is not a prospectus, product disclosure statement or other disclosure or offering document under any law. The presentation does not constitute or contain an offer, invitation, solicitation, recommendation, advice or recommendation with respect to issue, purchase, or sale of any shares or financial products in any jurisdiction. The presentation does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States or to any 'US person’ (as defined in Regulation S under the US Securities Act of 1933, as amended (Securities Act) (US Person)). Securities may not be offered or sold in the United States or to US Persons absent registration or an exemption from registration. IRI shares have not been, and will not be, registered under the Securities Act or the securities laws of any state or jurisdiction of the United States.

GENERAL

Each of IRI, its related bodies corporate and their respective affiliates, officers, employees, agents and advisers, to the maximum extent permitted by law, expressly disclaim any and all liability in respect of any expenses, losses, damages or costs (including indirect or consequential loss) arising from or in connection with this presentation or the information contained in or omitted from it, including, without limitation, any liability arising from fault, negligence or otherwise. No representation or warranty, express or implied, is made as to the fairness, currency, accuracy, reliability or completeness of information contained in the presentation. The information in the presentation remains subject to change without notice.

27

Integrated Research Limited Annual General Meeting

24 November 2021

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