JCURVE SOLUTIONS LTD — AGM Information 2016

Nov 21, 2016

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Annual General Meeting 22[nd] November 2016 ASX:JCS

Disclaimer

The information contained in this Presentation (“Presentation”) has been prepared by JCurve Solutions Limited (“the Company”) and is being delivered for informational purposes only.

The Company has prepared the Presentation Materials based on information available to it at the time of preparation. No attempt has been made to independently verify the information contained in this Presentation. The Presentation does not purport to contain all information that a prospective investor may require. While the information contained herein has been prepared in good faith, neither the Company nor its shareholders, directors, officers, agents, employees, or advisors give, has given or has the authority to give, any representations or warranties (express or implied) as to, or in relation to, the accuracy, reliability or completeness of the information in this Presentation, or any revision thereof, or of any other written or oral information made or to be made available to any interested party or its advisors (all such information being referred to as “information”) and liability therefore is expressively disclaimed. Accordingly, neither the Company nor any of its shareholders, directors, officers, agents, employees or advisors take any responsibility for, or will accept any liability whether direct or indirect, express or implied, contractual, tortuous, statutory or otherwise, in respect of the accuracy or completeness of the information or for any of the opinions contained herein or for any errors, omissions or misstatements or for any loss howsoever arising from the use of this Presentation. In furnishing this Presentation, the Company does not undertake or agree to any obligation to provide the recipient with access to any additional information or to update this Presentation or to correct any inaccuracies in, or omissions from, this Presentation which may become apparent.

This Presentation should not be considered as the giving of investment advice or recommendations by the Company or any of its shareholders, directors, officers, agents, employees or advisors. Each party to whom this Presentation is made available must make its own independent assessment of the Company after making such investigations and taking such advice as may be deemed necessary. In particular, any estimates or projections or opinions contained herein necessarily involve significant elements of subjective judgement, analysis and assumption and each recipient should satisfy itself in relation to such matters.

This Presentation may contain “forward looking statements”. Where the Company expresses or implies an extension or belief as to future events or results such expectation or belief is expressed in good faith and believed to have reasonable basis. However, “forward looking statements” are subject to risks, uncertainties and other factors, which could cause actual results to differ materially from future results expressed, projected or implied by such “forward looking statements”. The Company does not undertake any obligation to release publicly any revisions to any “forward looking statement” to reflect events or circumstances after the date of this Presentation or to reflect the occurrence of unanticipated events, except as may be required under applicable laws.

All forward looking statements contained in this Presentation is qualified by the foregoing cautionary statements. Recipients are cautioned that forward looking statements are not guarantees of future performance and accordingly recipients are cautioned not to put undue reliance on forward looking statements due to the inherent uncertainty therein.

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Board of Directors

Bruce Hatchman

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Non-Executive Chairman

David Franks

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Non-Executive Director and Company Secretary

Mark Jobling

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Non-Executive Director

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Chairman’s Address BRUCE HATCHMAN

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JCurve Solutions has a diverse and expanding Solutions Portfolio for businesses of all sizes

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BUSINESS MANAGEMENT / ERP

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TELECOM EXPENSE MANAGEMENT (TEMS)

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• § Software to help businesses grow

• § NetSuite is the #1 in cloud ERP, including the small business JCurve ERP edition

• § Over 30,000 customers globally run on NetSuite

• § Includes financials, CRM, inventory management and eCommerce capabilities

• § Partnerships with a growing list of third party integrations

• § Simplifying telecom management

• § Automates the administration of telecoms expenditure and improves visibility of usage

• § Optus TEM is a white labelled edition of JTel

• § Responding to bill shock caused by excess data and/or voice charges

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JCurve Solutions is well positioned in an evolving Business Management/ERP Market Traditional Systems

Modern Cloud Technology

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Small business

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Medium business

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Large business

Our Turnaround Strategy – The Past 2 Years

JCurve Solutions has:

• 1) A substantially new Board and management team

• 2) Delivered financial results in line or ahead of guidance for FY2015 and FY2016

• 3) Conducted a strategic review and implemented significant changes to improve its financial stability and profitability

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JCurve Solutions Strategic Priorities

Strategic Priority #1 Maximising value from the TEMS business

Strategic Priority #2 Leveraging our core strengths and capabilities

Strategic Priority #3 Investing to grow the NetSuite business, including the small business JCurve ERP edition

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Achievement of Strategic Priority #1

Strategic opportunities

Objectives

Progress

• $4.3m of TEMS revenue generated in FY2016

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Maximising value from the TEMS business

• Drive productivity

• • Harvest cash to fund growth in NetSuite /New Opportunities and Development

• Restructured operations have increased profitability and cash generation which is being used to grow JCurve Solutions ERP opportunities

• Maintaining key customer relationships and expanding channel partner arrangements

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Achievement of Strategic Priority #2

Strategic Objectives opportunities

Progress

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• Investing to grow • Customer growth

• the NetSuite • Build a large, sustainable and

• business, including growing base of monthly

• the small business recurring revenue

• JCurve ERP edition

• While overall customer numbers declined from 560 to 550 during the year, JCurve was able to achieve 13% growth in the number of recurring customer licenses and 19% growth in the average size of each new business deal in FY2016

• $4.5 million recurring revenue as at 30 June 2016

• Signed a Solution Provider Partner agreement with NetSuite allowing JCurve to target businesses of all sizes across Australia and New Zealand creating a larger addressable market

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Achievement of Strategic Priority #3

Strategic opportunities

Objectives

Progress

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Leveraging our core strengths and capabilities

• Diversify our product range

• • Expand our geographical footprint into Asia

• Reinvest for further growth

• Six new partnership agreements signed in September 2016 to expand our cloud ERP offering with new integrated functionality and capability

• Preliminary investigation of multiple acquisition targets in Asia remains ongoing

• Continued investment in research and development

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FY2016 Financial Summary

P&L	Extract
	FY2016 ($m)	FY2015 ($m)
Revenue	9.5	11.3
EBITDA loss	(3.1)	(6.1)
Add back: Impairment	3.0	5.2
Add back: Income tax credit	0.3	0.6
Net profit/(loss) (*)	0.2	(0.3)

Balance Sheet Extract	Balance Sheet Extract
	June 2016 ($m)	June 2015 ($m)
Cash at Bank	2.4	2.0
Total Assets	7.4	10.2
Unearned Income	3.0	2.8
Total Liabilities	4.6	4.6
Net Assets	2.8	5.5
Net Tangible Assets	0.5	0.2

• Excluding impairment and after income tax credit

Highlights

• Ø 24% growth in JCurve ERP product division revenue

• Ø 23% decline in revenue recognised from the TEMS product division

• Ø $1.5m of discontinued operations revenue recognised in FY2015

• Ø $3m goodwill from the acquisition of Full Circle and Phoneware was written off

Highlights

• Ø $2.4m of cash held and debt free

• Ø Net cash flow positive for FY2016

• Ø Strong growth in the JCurve ERP product division recurring subscription revenue

• Ø $3m write down in the goodwill balance partially offset by improved operational and cash flow performance

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FY2017 Market Guidance

	Financials – Year ended 30 June	Financials – Year ended 30 June
	FY2016 Actual	FY2017 Market Guidance	Expected Growth
Revenue	$9.5m	Range: $10m to $11m	5% to 12%
EBITDA	($0.1m) loss	Range: $0.0m to $0.2m profit	Not applicable
NPAT	$0.2m profit	Range: $0.3m to $0.5m profit	50% to 150%

We are making solid progress towards the achievement of our market guidance for FY2017

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CEO Address STEPHEN CANNING

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JCurve Solutions - Purpose and Vision

• We enable our customers to make lasting, substantial improvements to their performance and to grow into great businesses

• We aspire for JCurve Solutions to be the most trusted solutions partner for growing businesses throughout the Asia Pacific region

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Leading Provider of NetSuite in AU & NZ

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JCurve Solutions (JCS) is one of the largest Australian and New Zealand solution providers of NetSuite.

JCurve Solutions works closely with clients to maximise their investment in NetSuite.

A proven approach to success – JCS has completed over 550 successful implementations of NetSuite’s cloud ERP software, and has built one of the largest teams of NetSuite experts in Australia & New Zealand.

A rapid implementation methodology has been developed to minimise business disruption and help realise the benefits of NetSuite cloud ERP quickly.

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ERP Solutions for all businesses

JCurve ERP Edition for Small Business

Powered by NetSuite, this edition is designed for smaller businesses with up to 20 users.

JCurve Solutions holds the exclusive reseller rights for this edition.

NetSuite ERP for Medium/Large Business As a 5 Star NetSuite Solution Provider, JCurve Solutions provides NetSuite cloud solutions for businesses of any size.

Ability for customers to seamlessly upgrade to NetSuite ERP as they grow.

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We have a proven approach to success

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We offer a Complete Solution

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Our Competitive Advantage

LEADING PRODUCTSLEADING PRODUCTS

• § NetSuite including the JCurve ERP edition

• § World class technology platforms

• § A growing number of integrated third party partnerships

GREAT SERVICE GREAT SERVICE AND CULTURE AND CULURE

• § High performance culture

• § On-going knowledgeable engagement

• § Value add services incl. business consulting

• § Improving customer satisfaction results

WORLD CLASS PARTNERS

§ NetSuite Inc. - Provider of the world’s #1 cloud ERP solution with more than 30k customers

• § Leading technology platforms

• § A range of Telecom Expense management solutions

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The Year in Review

NetSuite Solution Provider

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Multiple Awards
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New partnerships
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Growing Market
Profile
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Improving financial
stability
Diversification
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Continued Growth in ERP Recurring Revenue

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$7,000,000
$6,000,000 26% average annual growth rate in recurring revenue – 2012 to 2016
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
2009 2010 2011 2012 2013 2014 2015 2016 2017 (forecast)
2009 2010 2011 2012 2013 2014 2015 2016 2017 (Forecast)
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Business Performance – ERP Division

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Number of Customers
600
550
500
450
400
2014 2015 2016 2017 (forecast)
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Churn by Contract Value

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20%
15%
10%
5%
0%
2014 2015 2016 2017 (forecast)
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Number of Average Users Per Customer

New Business Revenue Per Customer

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5 $20,000
4
$15,000
3
2 $10,000
2014 2015 2016 2017 (forecast) 2014 2015 2016 2017 (forecast)
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Financial Performance – JCurve Solutions

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Revenue by Type Consolidated Normalised EBITDA Result ()
$10,000,000
$200,000
$7,500,000
2014 2015 2016 2017 (forecast)
-$200,000
$5,000,000
$2,500,000
-$600,000 () Excluding impairment
$-
2014 2015 2016 2017 (forecast)
JCurveERP Revenue TEMS Revenue Other Revenue -$1,000,000
Consolidated Net Cash Flow
$200,000
2014 2015 2016 2017 (forecast)
-$200,000
-$600,000
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-$1,000,000

Overall Summary

SOLID FINANCIAL FOUNDATIONS

• Debt free

• $2.4m cash at bank as at 30 June 2016

• Recurring revenue base of $4.5m as at 30 June 2016 and growing

• Cash flow positive business

• Positive outlook

EXPOSURE TO GROWING MARKETS

• Cloud adoption

• SME sector

• Organic growth

• Diversification of revenue streams

• Targeted acquisitions

STRONG OPERATING FUNDAMENTALS

• ‘All in one’ unique product capability

• Growing customer base

• • Strategic relationship with #1 vendor of cloud ERP software

• Expanding list of additional solutions

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Key Contacts

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Stephen Canning Chief Executive Officer stephen.canning@jcurve.com.au

James Aulsebrook Chief Financial Officer james.aulsebrook@jcurve.com.au

(02) 9467 9200

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