JCURVE SOLUTIONS LTD — Investor Presentation 2017

Oct 29, 2017

JCurve Solutions Investor Presentation

October 2017 ASX: JCS

w w w . j c u r v e s o l u t i o n s . c o m

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Important Information

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.

1 | Investor Presentation

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Corporate Overview Our Company History

2013

1997 2008 Stratatel (STE) Founded STE acquires Phoneware

STE acquires JCurve Solutions Pty Ltd and renames corporate entity JCurve Solutions Limited (ASX:JCS)

Telecommunications Expense Management Focus

2000

2009

2014

Listed on ASX (ASX:STE)

JCS acquires the Full Circle Group

Separate Private Company JCurve Solutions Pty Ltd signs International Reseller Agreement with NetSuite

2016

JCS signs NetSuite Solution Provider Agreement

ERP Focus

2017

JCS launches MYOB Advanced Partnership

2 | Investor Presentation

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Our Company

Purpose and Vision

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

Aspires to be the most trusted solutions partner for growing businesses throughout the Asia Pacific region.

Is a specialist solution provider. Our whole business is based around providing an exceptional customer experience by delivering the best possible solution to our clients through market leading software applications and excellence in service delivery.

3 | Investor Presentation

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Our Focus The Products We Currently Sell Enterprise Resource Telecommunications Cloud Solutions Planning (ERP) Expense Management Solutions Solutions 4 | Investor Presentation

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Enterprise Resource Planning (ERP)

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• ERP Solutions is our growth driver with 36% revenue growth in FY2017

• Single unified cloud ERP software solutions

• Our software vendors are industry leading

• ERP Software helps businesses grow

• Negates the need for expensive servers, IT equipment and trained IT staff

• Access to real time financial results any time

• We are partnering with a growing list of third party integrations

• NetSuite is the #1 in cloud ERP and has over 40,000 customers globally which run on NetSuite

5 | Investor Presentation

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Our ERP Product Vendors

We Work with Industry Leading Software Vendors

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

A proven approach to success – JCS has completed over 600 successful implementations of NetSuite’s cloud ERP software, and has built one of the largest teams of NetSuite experts in Australia and New Zealand.

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

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

JCurve Solutions became a MYOB Advanced partner in FY2017 and the investments made to date are slowly translating into results for JCS.

MYOB Advanced is a cloud native ERP and Payroll solution built for the Australian and New Zealand mid-market. MYOB Advanced has the power, flexibility and scalability to grow with your business.

By Partnering with MYOB, JCS can provide customers with a choice of their preferred cloud ERP platform to best suit their specific business requirements.

6 | Investor Presentation

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Our ERP Business Model

We Provide ERP Solutions for Small to Medium Businesses

Seamless Transition from JCurveERP to NetSuite

JCurveERP Edition for Small Businesses

NetSuite is for Medium Sized Businesses

MYOB is for Small to Medium Sized Businesses

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

• JCurve Solutions holds the exclusive reseller rights for this edition in Australia and New Zealand.

• Ability for customers to seamlessly upgrade to NetSuite ERP without the need for costly re-implementations as they grow.

• As a 5 Star Oracle + NetSuite Solution Provider, JCurve Solutions provides NetSuite cloud solutions for businesses of any size with a focus on medium sized entities.

• We have upgraded 26 JCurveERP customers to the NetSuite Limited edition or mid market edition when they outgrew JCurveERP or required additional functionality while we have made a number of direct higher value mid market edition sales.

• JCurve Solutions became an MYOB Advanced Partner in February 2017 and has been training and expanding the team with a view to exponentially increasing the number sales generated to date.

• MYOB Advanced has been one of the fastest growing cloud ERP platform’s for the ANZ mid market.

7 | Investor Presentation

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Our ERP Customers & Partners

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Customers Partners >550 Customers JCu rve 8 | Investor Presentation

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ERP Marketing Award Winning and Growing Market Profile

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Source: SkyNews – 5 August 2016 - Using performance based measurement

Source: AFR Article, 9 August 2017

9 | Investor Presentation

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Expense Management Solutions

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• Our Expense management focus has been on simplifying telecom management through TEMS

• TEMS has been a successful suite of solutions for a number of years for JCS

• Expense management solutions delivered using our own portfolio of solutions

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

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

• Optus TEM is a white labelled edition of JTel

• Market opportunity to deliver more general expense management solutions

• R&D investment in Expense Management Solutions forecast at $1m in FY2018

10 | Investor Presentation

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Our TEMS Customers & Partners

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Customers Partners >100 Customers JCu rve

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11 | Investor Presentation

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Strategic Direction

Purpose and Vision

Since FY2016, JCurve Solutions has embarked on a sustained period of ambitious business growth aiming to increase revenues, diversifying market offerings, expanding geographical territories and investing in our people to increase the value provided to customers and achieve an order of magnitude lift in long term shareholder value.

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Source:

http://www.asx.com.au/prices/charting/?code=JCS&compareCode=&chartType=&priceMoving Average1=&priceMovingAverage2=&volumeIndicator=&volumeMovingAverage=&timeframe=

12 | Investor Presentation

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Strategic Business Priorities

JCS Strategy

1: Maximizing Value from the TEMS Business

$3.1m in TEMS revenue generated in FY2017 (28% decline) $1.8m profit generated by the TEMS business before the inclusion of any R&D expenditure Success in locking in a portion of our TEMS customers to multi year contracts

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2: Investing to Grow the ERP business including NetSuite, JCurve ERP and MYOB Advanced

$7.3m in ERP revenue generated in FY2017 (36% increase)

Upgraded 26 JCurveERP customers to NetSuite editions

Signed Solution Provider Agreement and became an MYOB Advanced Partner

Significant investment in the sales, marketing and service delivery capability

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3: Diversification by Leveraging our Core Strengths and Capabilities

New partnership agreements signed to expand cloud ERP offering

Investigated multiple acquisition targets both locally and in Asia

Incorporated Singapore subsidiary

MYOB Advanced partnership

$0.7m investment in R&D for TEMS and expense management

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13 | Investor Presentation

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Our Competitive Advantage

The JCS Advantage

Leading Products

Great Service and Culture

World Class Partners

• NetSuite including the JCurveERP edition

• MYOB Advanced

• World class technology platforms

• A growing number of integrated third party partnerships

• A range of Telecommunication Expense Management solutions

• High performance culture

• • On-going knowledgeable engagement

• Value add services including system optimisation and consulting

• Improving customer satisfaction results

• NetSuite Inc. is the provider of the world’s #1 cloud ERP solution with more than 40k customers

• MYOB Advanced is one of the fastest growing cloud ERP platform’s for the ANZ mid market

• Leading technology platforms

14 | Investor Presentation

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Our Team

Board of Directors

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Bruce Hatchman David Franks Non-Executive Chairman Non-Executive Director & Secretary Appointed November 2014 Appointed September 2014 Experienced and successful Experienced and successful finance professional finance professional

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Mark Jobling Non-Executive Director Appointed April 2015 Substantial shareholder with a legal and investment background

15 | Investor Presentation

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Our Team Continued

The Executive Management Team

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Stephen Canning Chief Executive Officer Appointed EMT January 2015 Proven experience in strategic, business, and operational planning

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James Aulsebrook Chief Financial Officer Appointed EMT April 2016

Chartered accountant, experienced Statutory Accounting and Tax Manager

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Katrina Doring Chief Operating Officer Appointed EMT July 2016

IT professional with experience locally and internationally

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Kate Massey

Chief Marketing Officer

Started at JCS September 2009 and appointed EMT July 2016

IT B2B marketer for over a decade

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Peter Choo

Bill Beedie

Sales Director Product Strategy Director Appointed EMT October 2017 Started at JCS October 2015 and appointed EMT October 2017 Sales leadership positions in Responsible for the delivery the Australian IT Industry for of new products to over 30 years assist with diversification

16 | Investor Presentation

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Our FY2017 Highlights

#1

Strong Financial Performance

• 7% growth in revenue

• $0.6m EBITDA

• • $1.1m cash flow positive • $3.5m cash balance and debt free

#5

Achieved NetSuite 5 Star Status for 2017

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#2

Early Adoption of AASB 15

• JCS was one of the first ASX listed entities to adopt the new revenue accounting standard

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#6

Geographical Diversification

Establishment of a Singapore subsidiary

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Progressing geographical diversification

#3 Enhanced Capabilities

Recruitment and training to expand the capabilities of the ERP Sales, Marketing and Professional Service Teams

#7

Product Expansion: Became a MYOB Advanced Partner

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#4

Signed New NetSuite Solution Provider Agreement

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#8

We were Award Winning!

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17 | Investor Presentation

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Financial Result 2017

Solid financial performance from organic recurring revenue growth from the ERP division and reduced TEMS customer churn

P&L Extract 2017 ($m) 2016 ($m)	P&L Extract 2017 ($m) 2016 ($m)	P&L Extract 2017 ($m) 2016 ($m)
Revenue	10.4	9.7
Operating Expenses	(9.7)	(9.6)
Impairment and Depreciation Expense	(0.1)	(3.0)
EBITDA	0.6	(2.9)
Add back Impairment Expense	-	3.0
Normalised EBITDA	0.6	0.1
Add back Research and Development Expense	0.7	0.2
Normalised EBITDA Excluding R&D	1.3	0.3

Summary

• 7% increase in consolidated revenue achieved through organic growth

• 36% increase in the revenue recognised from the ERP division through larger and longer term new business sales and emphasis on customer retention

• 28% decline in revenue recognised from the TEMS product division

• 365% increase in normalised EBITDA in FY2017

18 | Investor Presentation

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June 2017 Financial Position

Improving financial stability achieved through process improvements and improving financial performance

June 2017 Financial Position Improving financial stability achieved through process improvements and improving financial performance	June 2017 Financial Position Improving financial stability achieved through process improvements and improving financial performance
Balance Sheet Extract June 2017 ($m) June 2016 ($m) Cash at Bank 3.5 2.4 Deferred Expenditure 0.3 0.4 Total Assets 8.9 7.0 Unearned Income 2.2 1.4 Total Liabilities 4.9 3.5 Net Assets 4.0 3.5 Net Tangible Assets 1.7 1.2 Summary • $3.5m of cash held as at 30 June 2017 • Debt free • $1.1m cash flow positive for FY2017 • Increasing net asset basis • Increasing net tangible asset balances • Strong growth in the ERP division defe balance ($1.4m to $2.2m) which will be as projects “Go Live” over the next 3-6
Cash at Bank	3.5
Deferred Expenditure	0.3
Total Assets	8.9
Unearned Income	2.2
Total Liabilities	4.9
Net Assets	4.0
Net Tangible Assets	1.7

• Strong growth in the ERP division deferred revenue balance ($1.4m to $2.2m) which will be recognised as projects “Go Live” over the next 3-6 months

19 | Investor Presentation

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Financials – Detailed Analysis

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----- Start of picture text -----

JCurveERP New Business Revenue JCurveERP License Subscriptions Revenue by Product Division
Per Customer 3,000 $12,000,000 ERP TEMS
2,500 $10,000,000
$25,000
$8,000,000
2,000
$20,000
$6,000,000
1,500
$15,000
$4,000,000
$10,000 1,000
$2,000,000
$5,000 500
$0
2016 2017
$- -
2014 2015 2016 2017 2015 2016 2017 As reported under AASB 15 so only a single year comparative
has been shown
600 Number of ERP Customers 16% JCurveERP Churn by Contract Value Net Cash Flow
$1,000,000
14%
550 12%
$500,000
10%
500 8%
$-
6% 2014 2015 2016 2017
450 4%
-$500,000
2%
400 0%
2014 2015 2016 2017 2014 2015 2016 2017 -$1,000,000
----- End of picture text -----

20 | Investor Presentation

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Financials – Detailed Analysis Continued

Growth in recurring revenue FY2013 to FY2017 ERP recurring revenue CAGR of +14%

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21 | Investor Presentation

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FY2018 Market Guidance

Forecasting a sustained increase in the annuity revenue streams from solutions sold by the ERP Division combined with reduced customer churn from the TEMS division following increased levels of research and development

Measure FY2017 Actual FY2018 Guidance % Increase from FY2017 Actual	Measure FY2017 Actual FY2018 Guidance % Increase from FY2017 Actual	Measure FY2017 Actual FY2018 Guidance % Increase from FY2017 Actual	Measure FY2017 Actual FY2018 Guidance % Increase from FY2017 Actual
Sales Income	$11.1 M	Range: $13.5 M to $15 M	22 – 35 %
Revenue	$10.4 M	Range: $12.5 M to $14 M	20 – 35 %
EBITDA (*)	$0.6 M	Range: $1.0 M to $1.2 M	67 – 100 %
NPBT (*)	$0.6 M	Range: $0.9 M to $1.1 M	50 – 83 %

(*) R&D is expensed as incurred under the Company’s accounting policies. The above FY2018 guidance includes $1m of expensed R&D ($0.7m in FY2017).

The Growing ERP division’s revenue profile is heavily weighted towards the second half of the year particularly Q4.

22 | Investor Presentation

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Capital Structure & Shareholders

Key Statistics (ASX: JCS) As at 26/10/2017 (ii) Ordinary Fully Paid Shares as at 26/10/2017 Units % of Units	Key Statistics (ASX: JCS) As at 26/10/2017 (ii) Ordinary Fully Paid Shares as at 26/10/2017 Units % of Units	Key Statistics (ASX: JCS) As at 26/10/2017 (ii) Ordinary Fully Paid Shares as at 26/10/2017 Units % of Units	Key Statistics (ASX: JCS) As at 26/10/2017 (ii) Ordinary Fully Paid Shares as at 26/10/2017 Units % of Units
Share Price	$0.037 Directors and Executive Interests	68,834,427	20.87 %
Shares on Issue (i)	329,856,900 Other Top 20 Holders	148,457,187	45.01 %
Market Capitalisation	$12.2m Remaining Holders	112,565,286	34.12 %
Cash (30 June 2017)
Debt (30 June 2017)
Enterprise Value
52 week high / low share price

(i) Excludes 11.5m performance rights and 17.9m options (ii) Unless otherwise stated

23 | Investor Presentation

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Our Investor Proposition – Why Invest in JCS Value and growth opportunity on current multiples (FY2017 Actuals and $12.2m market cap): 1.1x revenue, 1.5x on consolidated recurring revenue base, 20x Normalised EBITDA

• Strong Financial Foundations

• • $3.5m cash at bank as at 30 June 2017

• • Debt free • Recurring revenue base of $5.6m as at 30 June 2017 and growing

• • Cash flow positive business

• Growth Strong Operational Fundamentals

• • Continued organic revenue and • Growing customer base profit growth • ‘All in one’ unique product

• • Market trend towards cloud capability adoption • Strategic relationship with #1

• • Primarily competing in the large vendor of cloud ERP software SME sector • Expanding list of additional

• • Industry leading products solutions • Product diversification • We have a proven track record • M&A opportunities continue to • Strong performance by be evaluated management

24 | Investor Presentation

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Contact Information

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

(02) 9467 9200 | www.jcurvesolutions.com

25 | Investor Presentation