JCURVE SOLUTIONS LTD — Capital/Financing Update 2017

Sep 3, 2017

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4 September 2017

Manager of Company Announcements ASX Limited Level 6, 20 Bridge Street SYDNEY NSW 2000

By E-Lodgement

MEDIA RELEASE – FY2018 GUIDANCE

• Substantial growth forecast for FY2018

• EBITDA forecast to be in excess of $1m in FY2018

• Increased investment in R&D in FY2018

JCurve Solutions Limited (ASX : JCS) is pleased to provide its sales, revenue, EBITDA and NPBT guidance for the year ending 30 June 2018.

MEASURE	FY2017 ACTUAL	FY2018 GUIDANCE	% INCREASE FROMFY2017 ACTUAL
SalesIncome	$11.1m	Range:$13.5m -$15m	22%-35%
Revenue (*)	$10.4m	Range: $12.5m to $14.0m	20%-35%
EBITDA (*)	$0.6m	Range: $1.0m-$1.2m	67%-100%
NPBT(*)	$0.6m	Range:$0.9m -$1.1m	50%-83%

(*) Calculated in accordance with the Company’s new revenue recognition accounting policy. Refer to the 30 June 2017 Annual Report for further details

This guidance for FY2018 reflects a business as usual growth financial year for the Company with a sustained increase in the annuity revenue streams from solutions sold by JCS’s ERP Division and stability in the Telecommunications Expense Management (TEMS) division.

Stability in the TEMS division is anticipated following extensive research and development (R&D) activities which are intended to not only minimise TEMS churn but capitalise on related expense management opportunities. The Company has budgeted to spend $1m on R&D in FY2018, a substantial increase on the $0.7m which was spent in FY2017. R&D is expensed as incurred under the Company’s accounting policies.

This guidance is based on the continued operations of the current ERP and TEMS business divisions without further expansion. However, The Board and Executive Management team continue to evaluate diversification opportunities throughout both the Asian and Australian markets.

It is expected that JCurve Solutions will continue to be supported by solid financial foundations throughout FY2018. JCS in FY2017 was $1.1 million cash flow positive, remained debt free and held $3.5 million in cash reserves as at 30 June 2017. Combined this places JCurve Solutions in a very strong financial position to evaluate diversification opportunities.

For and on behalf of the Board

Bruce Hatchman Chairman