IODM LIMITED — AGM Information 2020

Oct 20, 2020

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21 October 2020

Company Announcements Office Australian Securities Exchange Rialto Tower, 525 Collins Street, Melbourne, Vic, 3000

By Email

Dear Sir

RE: FY 20 – AGM PRESENTATION

Pursuant to the requirements of Listing Rules, please find attached FY 20 – AGM Presentation for immediate release to the market.

The announcement has been authorised for release by the Board of Directors.

Yours sincerely,

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Petrina Halsall

Company Secretary

IODM Limited

For further information please contact

Tony Smith

Anthony.smith@iodm.com.au

IODM Limited

ABN : 28 102 747 133 ASX Code : IOD Registered Address: Level 5, 22 Albert Road, South Melbourne, Vic, 3205 Contact Details: 03 8396 5890 Email: info@iodm.com.au Website: www.iodm.com.au

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AGM Presentation

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October 2020

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Key highlights
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Scalable adaptable technology: Customised automated software solution that revolutionises business cash flow management

Unique positioning: Unique offering capitalising on macro tailwinds, such as increased compliance regulations and flexible work arrangements

Robust business model: Growing annuity-style subscription revenue underpins significant operating leverage potential, coupled with recent diversified revenue streams

Validated strategy: Strong traction achieved with unique solutions delivered to a growing high-quality customer base

Exciting growth outlook: Well positioned to execute on high-value opportunities with a strong pipeline of global opportunities

2

IODM snapshot

A new paradigm for managing Accounts Receivable (AR), with incredible automation that saves time, saves money and releases working capital back to businesses

An intelligent accounts receivable solution

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that utilises digital technology to optimise automation

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5 years $2.5bn 4
delivering AR invoices continents
solutions powered by currently being
IODM served
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+65% +76% 3
in cash flow in cash simple modules
after IODM receipts after providing best in
implementation implementation class reporting
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IODM Connect a digital solution

Provides a customisable end-to-end solution that seamlessly streamlines the AR process

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Accounts
Receivable Team
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ERP Fully automated intelligent AR
management system creating
access to real-time data and
analytics
Connect
Customers
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Reduces costs, time, human error and
increases timely payments
Direct Integration with existing ERP system
Bulk invoice delivery
Task Manager with customised workflows
Query Management Function
Credit Application Management Module
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Reconciliation/Receipting Module
Credits Module and Audit Tracking
Client note history and risk profiling
Comprehensive reporting analytics
Automatic escalation to collectors
Cash-flow reporting
Behavioural AI
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4

IODM achieving record revenue growth in FY2020

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Annualised revenue [1]
1,080
FY18-FY20
90
Implementation 90
Annualised License
Annualised Subscription
IODM has continued strong growth despite the
650 COVID-19 environment
60
90
480 Annualised revenue has grown 50% annually from
FY18 to FY20
60 40 900
60
Subscription revenue constitutes the majority of
550 total revenue, growing 58% annually from FY18 to
FY20
360
Implementation also demonstrated strong growth,
with revenues increasing 50% from last year
FY18 FY19 FY20
1. Annualised revenue is based on the monthly contracted revenue at time of disclosure multiplied by 12 5
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IODM can service higher revenues on the same cost base Investment in its product has provided IODM with significant operating leverage

IODM system utilisation[1] September 2020

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97.26%
2.74%
Sep-20
1. Company analysis
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Capacity Utilisation

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By planning ahead during the development phase,
IODM has been able to build in latent capacity to
foster growth
IODM currently has a system utilisation of only
2.74%, meaning there is substantial scope to serve
a growing customer base
The marginal cost of an new customer is negligible,
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base expands
Given significant operating leverage , revenue
growth will directly translate to an increased
operating margin
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Operating metrics

IODM has world class customer retention, while substantially increasing its customer base

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Key growth metrics
98% customer retention since 2016
3.0x increase in customers since 2018
40x increase in invoices since FY18 [1]
1. Annualised for July 2020
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IOMD invoice value (A$m)
Growth in invoicing
1,900
value underpinned by
organic growth in new
customer acquisitions
1,170
753
174
FY18 FY19 FY20 Jul-201
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Australian snapshot

IODM is targeting a significant addressable global market driven by macroeconomic factors

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Growth driven by strong macroeconomic factors

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Increased compliance

Growth in Cross-border flexible working transaction

• Increasing focus on

• Australia compliance with higher standards for legal and

• Targeting accounting procedures IODM solution provides backed up digital audit trail

• ~36,000

• Accelerated trend of remote working creates oversight complication

• Increasing global trade is causing delays in payments

• -time data and

• reporting tools enable confident decision making

• easy payment terms in local currency, while connecting buyers and sellers throughout the world

• IODM solution provides backed up digital audit trail

• Platform can be accessed from anywhere, with tools to ensure oversight

• De-risks increasing complications around payment and trust style accounts

businesses in Australia[1]

• IODM can lower debtor days and improve cash flow certainty

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1. ~36,000 businesses in Australia have turnover >A$10m (ABS 2019)

Partnership: Western Union Business Solution study

Strategic partnership with Western Union accelerates growth

Overview

Dec 2018

Collaboration and strategic partnership signed with Western Union[1] to focus on Australia only

Sep 2019

Entered into a reciprocal referral arrangement with Western Union that initially focused on APAC and UK , with potential for expansion into other global regions

Feb 2020

IODM entered into an umbrella agreement with Western Union Business Solutions in key European markets[2]

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Mutually beneficial arrangement

solution

Enabled IODM to identify short-term target areas Has provided a foothold in the UK, APAC and Europe global plans

Offers Western Union Business Solution a point of difference in the competitive FX market

Strong long-term and trusted relationship established with Western Union, a global leader in cross-border, cross-currency money movements and payments

Together provides an end-to-end, accounts receivable, payable and FX risk management solution

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1. Undisclosed at the time 2. Immediate expansion into Italy, with further potential to cooperate in France, Ireland, Germany, Austria, Belgium, Netherlands, Spain, UK, Czech republic, Poland and Slovakia

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Customers: top-tier portfolio

Geographic and sector diversified customer base with headroom for significant growth

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Domestic Multinationals
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10

Product development: invoice funding capability

IODM is leveraging existing data to unlock significant value for customers

Partnership and flexible funding solutions...

IODM recently launched new invoice funding capability on its platform through a partnership with Grow Finance

IODM is leveraging existing data to unlock further value for customers, who now have seamless access to invoice financing

Funders also have in-depth transparency on outstanding customers, and more surety on lending for funders

The data collected facilitates compliance and governance oversight

This strategic partnership creates another valuable source of referrals for IODM

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...benefitting all participants

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Client
IODM
IODM
Connect
Accounts
New
receivable
referrals Leveraging data driven optimisation
insights to tangible
customer benefits
Non-client
and finance Decreased
funding risk
interest
Increased Invoice
cash funding
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Revenue streams

IODM is diversifying its revenue mix through additional streams of income

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Significant upside Watch this
growth potential from
transaction-related
Merchant Fee
Financing Financing
Core business on track to FX FX
deliver operational profitability
Dynamics Dynamics
Licensing Licensing Licensing Licensing Licensing
Implementation Implementation Implementation Implementation Implementation Implementation
Subscription Subscription Subscription Subscription Subscription Subscription Subscription
FY16 FY17 FY18 FY19 FY20 FY21 FY22
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12

Strategic geographical expansion

IODM is executing an international expansion strategy leveraging key partnerships

EMEA (near to medium term)

• UK: benefiting from Western Union partnership to build pipeline across healthcare, manufacturing and professional services sectors

• First UK customer signed and implemented, further de-risking business opportunity

• Also targeting Italy, France, Ireland, Germany, Austria, Belgium, Netherlands, Spain, Czech Republic, Poland and Slovakia

APAC (near term)

ANZ: strong domestic foothold with opportunity for growth

• Leveraging Western Union and Grow Finance partnerships to build pipeline of leads Established core sales team and network of referrals

Singapore: achieved sales with de-risked implementation process

Americas (medium to long term)

North America: represents a lucrative opportunity to target IODM will continue to assess opportunities and seek to strategically enter at the appropriate time

• Government stimulus to support technology automation driving demand and favourable payment terms

Hong Kong: well positioned to execute on key opportunities

Established marketing initiatives while leveraging existing relationships to deliver growth

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Upcoming catalysts

IODM is well positioned for growth

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Domestic revenue uplift: Investing in sales and marketing to accelerate pipeline growth in Australia

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International expansion: Grow sales team in target geographies (e.g. UK, Singapore, Hong Kong)

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Operating leverage recognition: Capitalise on increasing scale and margin

Product expansion: Leverage data and relationships to create new revenue streams

Leverage client scale: Facilitate further use of IODM for existing clients in new geographies

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Corporate overview

IODM uses technology to automate your accounts receivable process and communications

Share price performance (six months)

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Share price (A$)
0.25 1,000
0.20 800
0.15 600
0.10 400
0.05 200
- -
Apr-20 Jun-20 Aug-20 Oct-20
Volume Share Price
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ts receivable process and communications	ts receivable process and communications
Trading Information
Share price (16-Oct-20) A$0.165
Shares on issue 559.5m
Market capitalisation A$92.3m
Cash (as at 30-Sep-20) A$0.7m
Debt (as at 30-Sep-20) -
Enterprise value A$91.7m
Top shareholders (as at 30 June 2020)
Rogers IODM Portfolio Trust	10.77%
Arena IODM Portfolio Trust	9.29%
Anthony Smith	6.44%
Yongala Investments (Dr Paul Kasian)	5.15%
Mark Reilly	4.99%

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Board of Directors

	Dr Paul Kasian	Significant experience leading strategy, investment and risk roles in domestic and international companies
	Non-Executive	Former Chief Investment Officer atHSBC Asset Managementand Head ofHSBC GlobalFinancial Team
	Chairman	Founding Director ofAccordiusandWallara Asset Management Current directorships atAtomo Diagnostics(ASX:AT1)
		Former Chairman and CEO ofGenetic Technologies Limited
	David Ireland	30+ years experience in the ICT industry and in the sale of enterprise solutions to large companies and
	Non-Executive	Government
	Director	28 years experience atUnisys, holding senior roles including Director of Sales for Asia Pacific Japan
	Anthony Smith Non-Executive	30+ years experience in finance with expertise in corporate finance, institutional research sales and private wealth advisory
	Director	Former Head of Securities and Country Director ofAustock GroupandPhillip Capital Current Senior Investment Advisor atCashel Family Office
	Brian Jamieson	30+ years experience providing advisory and audit services to a diverse range of public and private companies
	Non-Executive	Former Chief Executive ofMinter Ellison Melbourneand Chief Executive Officer atKPMG Australia
	Director	Currently a Non-Executive Director of Highfield Resources Limited Former directorships atSigma Healthcare(ASX:SIG),Mesoblast Limited(ASX:MSB),OZ Minerals(ASX:OZL),
		Tatts Group Limited(ASX:TTS)and Tigers Realm Coal(ASX:TIG)

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Executive team

	Mark Reilly	Chartered Accountant with25+ years of experiencein thebanking and financeindustries in an advisory
	Chief Executive	capacity, across Australia, UK and Asia
	Officer	Formerly atCoopers & Lybrand (now PwC) in Insolvencybefore establishing his own accounting practice
		Previously heldDirector positionsat Black Star Petroleum, Harvest Minerals and Forte Energy
	Petrina Halsall	Experience in advising small to medium enterprises (SME) on growth strategies, valuations and corporate
	General Manager	restructuring Formerly held managerial roles atHorwathandBDO Wealth Management
		Associate of the Institute of Chartered Accountants Australia and New Zealand
	Chris Ward	20+ years of experiencein managerial roles in software development at RAC WA, Netfira and Quickflix
	Chief Technology Officer	Experience in managingbusiness critical websitesandbuilding cloud-based infrastructuresfor growing businesses
		Holds a Bachelor of Engineering, with honours, from University of Western Australia
	Peter Claydon Head of Business Development	Extensive work in small to medium sized companiescreating Sales and Marketing plans Grew theShaver Shop from 16 stores to 100,which culminated with alisting on the ASXfor more than $100m value
	Isaac Smith	20+ years of experience inmarketing and digital sales
	Sales Consultant	Broad sector experience, formerly held executive roles in marketing and sales acrossREA Group, GSK
		Singapore and Optus

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18

Disclaimer

Summary Information - ary information about IODM. IODM is an Australian public company listed on the Australian Securities Exchange (ASX). Statements in this presentation are made only as at the date of this presentation and the information in this presentation remains subject to change without notice. Distribution of this document in certain jurisdictions may be restricted by law and therefore persons should inform themselves about these restrictions.

This is not financial product advice - The information in this presentation is of a general nature and does not purport to be complete. 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. This presentation does not purport to summarise all information that an investor should consider when making an investment decision. IODM recommends that you do not act on any information contained in this Presentation without first consulting your investment adviser to determine whether an investment in the company is appropriate for your investment objectives, financial situation and particular needs. You should make your own assessment of an investment in IODM based on further information ased to the Australian Securities Exchange which are available at www.asx.com.au and should not rely solely on this presentation. In all cases, you should conduct you own research and due diligence of IODM and analysis of the financial condition, assets and liabilities, financial position and performance, profits and losses, prospects and business affairs of IODM and its businesses, and the contents of this presentation. You should seek legal, financial, tax and other advice appropriate for your jurisdiction.

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.

Future performance - This presentation contains certain forward-looking statements with respect to the financial condition, operations, annualised revenue and business of IODM and certain plans and objectives of the management of IODM. Forward-looking statements can be identified by the use of forward-looking terminology, including, wi These forward-looking statements include all matters that are not historical facts. Such forward-looking statements involve known and unknown risks, uncertainties and other factors which because of their nature may cause the actual results or performance of IODM to be materially different from the results or performance expressed or implied by such forward looking statements. Such forward looking statements ronment in which IODM will operate in the future, which may or may not be reasonable, and are not guarantees or predictions of future performance. No representation is made that any of these statements or forecasts will come to pass or that any forecast result will be achieved. Forward-looking statements speak only as at the date of this presentation and to the full extent permitted by law, IODM and its affiliates and related bodies corporate and each of their respective directors, officers, employees, advisers, agents and intermediaries disclaim any obligation or undertaking to release any updates or revisions to information to reflect any change in any of the information contained in this presentation (including, but not limited to, any assumptions or expectations set out in this presentation).

Financial data - All figures in the presentation are A$ millions unless stated otherwise and all market shares are estimates only.

Financial information - All pro forma and forecast financial information provided in this presentation is for illustrative purposes only and does not future financial condition and / or performance.

Disclaimer - No representation or warranty, express or implied, is made by the Company that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of the Company, its directors, officers, employees, advisers and agents expressly disclaims any responsibility for the accuracy, fairness, sufficiency or completeness of the material contained in this presentation, or any opinions or beliefs contained in this document, and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission there from. The Company is under no obligation to update or keep current the information contained in this presentation or to correct any inaccuracy or omission which may become apparent, or to furnish any person with any further information. Any opinions expressed in the presentation are subject to change without notice.

Unverified information - This presentation may contain information (including information derived from publicly available sources) that has not been independently verified by the Company .

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Contact us

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Mark Reilly IODM Limited Chief Executive Officer P: +61 (0)3 8396 5890 E: info@iodm.com.au

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