JCURVE SOLUTIONS LTD — AGM Information 2018

Nov 19, 2018

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www.jcurvesolutions.com

JCurve Solutions Annual General Meeting Presentation 20 November 2018 9:30am AEDT

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ASX: JCS

Our History

JCurve Solutions has evolved into a listed diversified solutions provider

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1997 Stratatel (STE) 2008 STE acquires 2013 STE acquires JCurve 2016 JCS signs NetSuite 2018 Acquires Riyo
Founded Phoneware Solutions Pty Ltd and Solution Provider software
renames corporate Agreement Platform
entity JCurve Solutions
Limited (ASX:JCS)
Telecommunications Expense Management Focus ERP Focus
2000 Listed on ASX 2009 Separate Private 2014 JCS acquires the Full 2017 JCS launches
(ASX:STE) Company JCurve Circle Group MYOB
Solutions Pty Ltd Advanced
signs International Partnership
Reseller Agreement
with NetSuite
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Our Team

JCurve Solutions is led by experienced Directors and Senior Executives

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Board of Directors
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Bruce Hatchman David Franks Mark Jobling Non-Executive Chairman Non-Executive Director Non-Executive Director Appointed November 2014 & Secretary Appointed April 2015 Appointed September 2014

Executive Management Team

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Stephen Canning James Aulsebrook Chief Executive Officer Chief Financial Officer Appointed EMT January 2015 Appointed EMT April 2016

Katrina Doring Chief Operating Officer Appointed EMT July 2016

Kate Massey Bill Beedie Peter Choo Chief Marketing Officer Sales Director Product Strategy Director Started at JCS September 2009 Appointed EMT October 2017 Started at JCS October 2015 & & appointed EMT July 2016 appointed EMT October 2017

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Our Focus

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Enable our customers to make lasting, substantial improvements to their performance and to grow into great businesses

Become the most trusted solutions partner for growing businesses throughout the Asia Pacific region

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Our Solution Portfolio

A diversified portfolio of cloud solutions that helps to improve a businesses performance

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ERP RIYO TEMS
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Our Enterprise Resource Planning (ERP) Solutions

Integrated software to manage all parts of your business

Single Unified Cloud ERP Software Solution

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Our Products and Offering

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JCS is NetSuite’s largest worldwide partner
by customer count
JCS has exclusivity to sell a small business edition
of NetSuite branded as JCurve ERP
SuiteSuccess
Mid market and enterprise editions. Seamless path
of upgrading as business grow
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Some of Our Customers and Partners 600+ Customers

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Multiple Partnerships
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Our Telecommunication Expense Management Solutions

Our TEM Solutions simplify telecom management

• Solutions Available Our Products and Offering Some of Our Customers and Partners 100+ Customers

• • Proprietary owned portfolio of solutions • Automates the administration of telecoms expenditure and improves Partners

• visibility of usage

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

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Our Service Management Software Solution

Helping businesses deliver an exceptional customer experience

Solutions Available

Our Products and Offering

Prospective Customers and Partners

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• End-to-end service dispatch solution that manages bookings, dispatching, and payments

• Riyo helps service businesses manage their resources, improve visibility, exceed customer expectations, and regain control of the customer experience

• Installation & repair providers

• IT & computer service providers

• At-Home healthcare and aged care

• Retailers

• Telcos and service providers

• Automobile service providers

• Beauty & wellness providers

• Gardening & landscaping companies

• Home removal companies

• Other

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Our

Strategic Priorities

Strategies which delivered increasing profitability and strengthening financial stability in FY2018

Diversification By Leveraging Our Core Strengths and Capabilities

Maximising Value Investing from the to Grow the TEMS Business ERP business

$2.7m

$9.2m

in TEMS revenue

in ERP revenue

• Riyo Platform acquired

• (13% decline v 28% decline in FY2017)

• (26% increase)

• Establishment of System

• $1.8m Integration Services Team

$1.6m

in NetSuite

in TEMS PBT before R&D investment/ incentive

ERP PBT

• New partnerships

97 new

$0.6m

• New Territories

• NetSuite/JCurve

R&D investment expensed (before $0.3m R&D incentive)

ERP customers

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Our Key Metrics

Customer counts (new logos and churn), deal sizes, revenue, profitability and net cash flow

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Number of ERP Customers
Revenue per new ERP customer JCurve ERP Churn by Contract Value
600 $35,000 16%
14%
$30,000
12%
$25,000
550 10%
$20,000
8%
$15,000 6%
500
$10,000 4%
$5,000 2%
450 $- 0%
2014 2015 2016 2017 2018 2014 2015 2016 2017 2018 2014 2015 2016 2017 2018
Revenue by Product Division Normalised EBITDA Net Cash Flow
$1,000,000
$12,000,000
$1,150,000
$10,000,000 $800,000 $950,000
$8,000,000 $750,000
$600,000 $550,000
$6,000,000
$350,000
$4,000,000
$400,000 $150,000
$2,000,000 -$50,000
$0 $200,000 -$250,000 2014 2015 2016 2017 2018 ()
2014 2015 2016 2017 2018 -$450,000
$0
-$650,000
TEMS NetSuite ERP Other 2015 () 2016 () 2017 2018
-$850,000
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() R&D incentive not recognised. 2015 normalised EBITDA included cumulative favourable AASB 15 adjustments from FY2015 and earlier years. (*) Group purchased the Riyo Platform for $600,000. Operating cash flows for the year were $1.7m.

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Our Financial Results

ERP organic revenue growth and stabilised TEMS customer churn delivered a stronger financial position

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P&L Extract FY2018 ($m) FY2017 ($m) % Change Balance Sheet Extract June 2018 ($m) June 2017 ($m) % Change
Revenue 11.9 10.4 +14% Cash at Bank 4.5 3.5 +29%
Other income 0.3 0.2 +50% Deferred Expenditure 0.2 0.3 -33%
Operating expenses (11.2) (9.8) +14% Intangible Assets 2.9 2.3 +26%
Impairment & depreciation expense (0.1) (0.1) - Total Assets 11.3 8.9 +27%
Profit before tax 0.9 0.7 +29% Unearned Income 2.7 2.2 +23%
Income tax expense (0.1) (0.2) -50% Total Liabilities 6.4 4.9 +31%
Profit after tax 0.8 0.5 +60% Net Assets 4.9 4.0 +23%
EBITDA 1.0 0.8 +25% Net Tangible Assets 2.0 1.7 +18%
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Our

Assessment of Opportunities

We intend to capitalise on a number of market trends and opportunities

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The Growth in Cloud ERP

• Real time access to data

• Improved security and disaster recovery

• Remote access and flexibility

• Cost reduction

• Faster implementations

• Collaboration and document control

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Account Management

• Upsell licenses, support and services to our existing 600+ ERP customers

• Reduce ERP and TEMS churn

• Multi year customer renewals

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ERP Expansion

• International expansion to the rapidly expanding Asian market to increase revenues and improve gross margins

• Product partnerships and integrations

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New Business

• Larger ERP customer contracts

• Increasing ERP logo count

• Selling the Riyo solution to new and existing JCS customers

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• Strong Financial Growth Strong Operational Foundations Fundamentals

• Overall • Continued organic $0.9m revenue and • Growing customer base

• profit before tax profit growth

• Summary • ‘All in one’ unique

• $4.5m • Market trend towards product capability

• cash at bank cloud adoption

• In comparison to current as at 30 June 2018 multiples (FY2018 Actuals • Strategic relationship • Industry leading with #1 vendor of cloud

• and $14.7m market cap): $1.7m products ERP software 1.2x revenue, 1.8x on operating cash flow positive

• consolidated recurring • • Through acquisitions Expanding list of

• revenue base, 14.7x • Debt free such as Riyo. Other M&A additional solutions opportunities continue to

• Normalised EBITDA • Growing recurring annual be evaluated ERP commissionable • We have a proven contract base • Product diversification track record

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Important Information

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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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www.jcurvesolutions.com

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Stephen Canning James Aulsebrook
Chief Executive Officer Chief Financial Officer
stephen.canning@jcurve.com.au james.aulsebrook@jcurve.com.au
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