JCURVE SOLUTIONS LTD — Interim / Quarterly Report 2019

Feb 14, 2019

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www.jcurvesolutions.com

JCurve Solutions Half Year Results Presentation 31 December 2018

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ASX: JCS

Important Information

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.

2

Our Focus

To be a diversified international technology solutions Company

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Mission Statement
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Vision

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Competitive Advantage
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NetSuite’s #1 Solution Partner Providing solutions that will Striving to become the most enable our customers to globally with over 600 trusted solutions partner for customers on the NS platform make lasting, substantial growing businesses improvements to their throughout the A team with unrivalled performance and to grow into Asia Pacific region expertise which delivers great great businesses service and has a great culture

3

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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4

Our 1HY2019 Update

Positioning our business for long term sustainable growth Summary 3% increase in consolidated revenue $0.1m EBITDA loss for Strengthening financial Consolidated unearned (1HY2019 v 1HY2018) and 1HY2019 v $0.1m position with $3.3m cash income increased from 4% increase in EBITDA loss for balance as at 31/12/2018 $2.2m as at 31/12/2017 to consolidated sales 1HY2018 () () (up from $2.7m $2.8m as at 31/12/2018 () (1HY2019 v 1HY2018) () 31/12/2017) () 34 new Australian ERP Oracle NetSuite New $0.2m investment in Spectrum Partner Group customers Business Partner of the research and development acquisition to kick-start our Year award expensed in 1HY2019 to growth in Asia further enhance the Riyo Platform

(*) Comparative financial figures provided are from 31 December 2017 given the seasonality of our ERP business

(**) The research and development incentive was classified as a credit to the tax expense and a receivable was not booked for the half-year ended 31 December 2017. The Company assessed as at 31 December 2017 that a likely R&D tax refund did not reach the threshold of virtual certainty.

5

Our

Strategic Priorities

The strategies which will deliver increasing overall profitability and strengthening financial stability

Investing to Grow the ERP business

$3.9m

in ERP revenue

(11% increase on 1HY2018 performance)

$0.5m

in ERP Profit Before Tax

(89% increase on 1HY2018 performance)

34 new

NetSuite/JCurve

ERP customers in 1HY2019

Maximising Value Diversification from the By Leveraging TEMS Business Our Core Strengths and Capabilities

$1.2m

$0.3m

in TEMS revenue

paid on completion to acquire the Spectrum Partner Group to kickstart our growth in Asia (a further deferred payment due August 2019)

(21% decline on 1HY2018

performance)

$0.6m

$0.2m

in TEMS Profit Before Tax

spent in 1HY2019 to further develop the Riyo Platform

(30% decline on 1HY2018

performance)

(all of which has been expensed)

106 customers

$0.1m

using our TEMS solutions as at 14 February 2019

spent in 1HY2019 to further develop our System Integration Services offering (all of which has been expensed) as well as entering into an outsourcing partnership to assist with scaling growth

6

Our Financial Results

Reflect the seasonality of our business and an acceleration in the planned shift of our sales mix for the ERP Division towards the larger more complex NetSuite solutions

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P&L Extract 1HY2019 ($m) 1HY2018 ($m) % Change Balance Sheet Extract Dec 2018 ($m) June 2018 ($m) % Change
Revenue 5.2 5.0 +3% () Cash at Bank 3.3 4.5 -27%
Other income () 0.1 0.0 +977% () Deferred Expenditure 0.1 0.2 -50%
Operating expenses (5.4) (5.2) +7% Intangible Assets 3.4 2.9 +17%
Depreciation and Amortisation expense (0.1) 0.0 +127% Total Assets 10.6 11.3 -6%
Loss before tax (0.2) (0.2) +36% Unearned Income 2.8 2.7 +4%
Income tax benefit 0.0 0.6 -98% Total Liabilities 5.9 6.4 -8%
(Loss)/Profit after tax (0.2) 0.4 -153% Net Assets 4.7 4.9 -4%
EBITDA Loss (0.1) (0.1) -6% () Net Tangible Assets 1.3 2.0 -35%
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(*) improvement on comparative period

(**) The research and development incentive was classified as a credit to the tax expense and a receivable was not booked for the half-year ended 31 December 2017. The Company assessed as at 31 December 2017 that a likely R&D tax refund did not reach the threshold of virtual certainty.

7

Update on our Key Metrics

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

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Initial Income per new ERP customer - July
Number of ERP Customers - July to ERP Churn by Contract Value - July Average upsell revenue per existing ERP
December (1HY) to December (1HY) to December (1HY) () customer
640 $45,000 16% July to December (1HY)
620 $40,000 14% $1,000
600 $35,000 $900
12% $800
580 $30,000
10% $700
560 $25,000 $600
8%
540 $20,000 $500
520 $15,000 6% $400
4% $300
500 $10,000
$200
480 $5,000 2% $100
460 $- 0% $-
2014 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018 2015 2016 2017 2018
Revenue by Product Division - July to Normalised EBITDA excluding Net operating cash flow - July to Countries with JCurve Solutions
December (1HY) impairment charge December (1HY) customers – 31 December
7,000,000 July to December (1HY) 8
6,000,000 $0 $500,000 7
2014 () 2015 () 2016 () 2017 () 2018
5,000,000
($100,000) 6
$0
4,000,000
2014 2015 2016 2017 2018 5
($200,000)
3,000,000
($500,000) 4
2,000,000 ($300,000)
3
1,000,000 ($1,000,000)
($400,000) 2
0
2014 2015 2016 2017 2018 ($1,500,000) 1
($500,000)
NetSuite ERP TEMS Other 0
(*) R&D incentive not recognised. 2015 normalised EBITDA ($2,000,000) 2014 2015 2016 2017 2018
included cumulative favourable AASB 15 adjustments from 8
FY2015 and earlier years. () Outlined as a percentage of expiring customer contracts for the period
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ERP Division Recurring Contract Business Model
(licenses and support)
Gross Annual contract value
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Reflects the annualised contract basis of recurring income products (licenses and support) for all ERP customers. NetSuite customers are shown at the amount of annualised commissions received from each customer (between 30% and 50%), JCurve ERP customers are shown as the annualised recurring contract value.

9

FY2019 Market Guidance and Progress

Following a review of our regional sales strategy, the company concluded that we will continue with our focus towards larger deal sizes in Australia. This continues the ongoing shift in the mix of deals we have seen over the previous 2 years towards larger, more complex NetSuite solutions where there is increasing levels of ongoing revenue. This does mean longer sales and delivery cycles and delays in recognition of revenue and profit. The slippage of a number of larger deals forecast in 1HY2019 saw us achieve lower than forecast sales results in 1HY2019. The Company sees this as a normal part of sales operations when moving towards larger more complex deals and we still expect a strong 2HY2019 ERP sales result in line with the seasonality of our ERP business as has been seen in previous financial years.

Our focus on ERP Sales in Asia is in addition to our continued focus on our Australia operations, where we continue to forecast overall growth from the ERP and Riyo divisions and reduced levels of TEMS churn. To further accelerate growth we see expansion into the relatively untapped Asian market as a significant immediate and long term growth opportunity. JCS acquired a Singapore based NetSuite Solution Partner, Spectrum Partner Group, in order to kick-start our growth in Asia. Since acquiring Spectrum in December 2018, JCS Asia has set up an office in Singapore, is building a team of qualified NetSuite resources, closed its first NetSuite deal and has a healthy sales pipeline of new business opportunities. We are actively growing our presence in Asia and will continue to actively look for acquisition opportunities to further accelerate our growth in Asia.

With this in mind the following is an extract of the Company Update released on the 30[th] of January 2019:

Measure FY2018 Actual FY2019 Original Guidance FY2019 Updated Guidance	Measure FY2018 Actual FY2019 Original Guidance FY2019 Updated Guidance	Measure FY2018 Actual FY2019 Original Guidance FY2019 Updated Guidance	Measure FY2018 Actual FY2019 Original Guidance FY2019 Updated Guidance
Sales Income (*)	$12.6 M	Range: $14.0 M to $15.5 M	Range: $13.0 M to $14.0 M
Revenue	$11.9 M	Range: $13.0 M to $14.5 M	Range: $12.0 M to $13.0 M
EBITDA	$1.0 M	Range: $1.2 M to $1.4 M	Range: $0.7 M to $0.9 M
NPBT	$0.9 M	Range: $1.0 M to $1.2 M	Range: $0.5 M to $0.7 M
(*) Not revenue as per the accounting standards and not reported in the statutory financial results

10

Our assessment of the market and 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

• Increased upsell opportunities as our customers grow/are larger

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ERP Expansion

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

• Product partnerships and integrations

• Product diversification

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New Business

• Shift towards larger more complex NetSuite solutions

• Selling the Riyo solution to new and existing JCS customers

• Reduce ERP and TEMS churn

• Multi year customer renewals

11

Overall Summary

Capital Structure & Shareholders

Key Statistics (ASX: JCS) As at 14/2/2019 (ii) Ordinary Fully Paid Shares as at 14/2/2019 Units % of Units	Key Statistics (ASX: JCS) As at 14/2/2019 (ii) Ordinary Fully Paid Shares as at 14/2/2019 Units % of Units	Key Statistics (ASX: JCS) As at 14/2/2019 (ii) Ordinary Fully Paid Shares as at 14/2/2019 Units % of Units	Key Statistics (ASX: JCS) As at 14/2/2019 (ii) Ordinary Fully Paid Shares as at 14/2/2019 Units % of Units
Share Price	$0.030 Directors and Executive Interests	65,239,427	19.90%
Shares on Issue (i)	327,856,900 Other Top 20 Holders	170,668,340	52.05%
Market Capitalisation	$9.8m Remaining Holders	91,949,133	28.05%
Cash (31 December 2018)
Debt (31 December 2018)
Enterprise Value (iii)
52 week high / low share price

(i) Excludes 10m performance rights and 8.9m options (ii) Unless otherwise stated

(iii) Based off reported December 2018 cash balance

12

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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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