JCURVE SOLUTIONS LTD — Investor Presentation 2018

Aug 21, 2018

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JCurve Solutions Full Year Results Presentation 30 June 2018

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 | Results Presentation – 30 June 2018

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Year in review

15% increase in consolidated $0.8m after tax revenue and 14% profit FY2018 (87% increase in increase) consolidated sales Significant investment in Achieved Oracle + the ERP business NetSuite 5 Star (10 net new Status for 2018 employees over the past 12 months)

$1m cash flow $0.6m investment positive and $1.7m in research and in positive operating development in FY2018 before R&D cash flows incentive

Continuing to Acquisition of assess acquisition the Riyo opportunities that Platform will deliver shareholder value

2 | Results Presentation – 30 June 2018

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Strategic Direction

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

This strategic direction has seen a strong improvement in the financial profitability and financial stability over the past 24 months with the Company achieving significant growth in revenue (27%) and operating cash flows (234%) while our market capitalisation has increased by 700% (*).

The Company’s three core stated strategic priorities (investing to grow the ERP Business, maximising value from the TEMS business and diversification) remained at the forefront of our operational and strategic initiatives in FY2018 and solid progress was made for each.

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Consolidated Revenue Operating cash flows
$12,000,000
$1,600,000
$11,000,000
$1,400,000
$10,000,000
$1,200,000
$9,000,000 $1,000,000
$800,000
$8,000,000
$600,000
$7,000,000
$400,000
$6,000,000
$200,000
$5,000,000 $0
2016 2017 2018 2016 2017 2018
Source:https://www.asx.com.au/prices/charting/?code=JCS&compareCode=&chartType=&priceMovin
gAverage1=&priceMovingAverage2=&volumeIndicator=&volumeMovingAverage=&timeframe=
Movement in market capitalisation from 30 June 2016 (share price of 0.6 cents) to 21 August 2018 (share price of 4.2 cents) 3 | Results Presentation – 30 June 2018
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Strategic Business Priorities
FY2018 Achievements
$1.8m in
NetSuite ERP
PBT
Riyo
Platform
$2.7m in
TEMS acquired
revenue
(13%
decline)
97 new $9.2m in
GROWING ERP
NetSuite/JCurve ERP revenue
ERP customers BUSINESS (26% increase)
DIVERSIFICATION
TEMS BUSINESS
$0.6m R&D
$1.6m in TEMS Establishment
investment
PBT before
investment/ R&D (before $0.3m expensed 600+ Integration of System partnershipsNew
R&D incentive) Services Team
incentive
customers
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4 | Results Presentation – 30 June 2018

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Financial Result FY2018

Strong financial performance achieved through ERP organic revenue growth and stabilised TEMS customer churn

P&L Extract FY2018 ($m) FY2017 ($m) Revenue 11.9 10.4 Other income 0.3 0.2 Operating expenses (11.2) (9.8) Impairment and depreciation expense (0.1) (0.1) Profit before tax 0.9 0.7 Income tax expense (0.1) (0.2) Profit after tax 0.8 0.5 EBITDA 1.0 0.8 Summary • 15% increase in consolidated revenue and 14% increase in sales achieved through organic growth • Net Profit Before Tax Financial result impacted by project losses incurred from MYOB Advanced projects and recognition of R&D incentive (previously recognised in income tax expense) • 26% increase in the revenue recognised from the ERP division and a 13% decline in revenue recognised from the TEMS product division • TEMS R&D investment ($0.6m) expensed (FY2017 - $0.5m). R&D incentive of $0.3m recognised in other income (FY2017 - $0.2m) • Recognition of $1.1m of carried forward tax losses ($0.3m tax effect) to offset FY2018 taxable income
Revenue	11.9	10.4
Other income	0.3	0.2
Operating expenses	(11.2)	(9.8)
Impairment and depreciation expense	(0.1)	(0.1)
Profit before tax	0.9	0.7
Income tax expense	(0.1)	(0.2)
Profit after tax	0.8	0.5
EBITDA	1.0	0.8

5 | Results Presentation – 30 June 2018

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June 2018 Financial Position

Strengthening financial stability and well positioned for future business growth

Balance Sheet Extract June 2018 ($m) June 2017 ($m) Cash at Bank 4.5 3.5 Deferred Expenditure 0.2 0.3 Intangible Assets 2.9 2.3 Total Assets 11.3 8.9 Unearned Income 2.7 2.2 Total Liabilities 6.4 4.9 Net Assets 4.9 4.0 Net Tangible Assets 2.0 1.7 Summary • $4.5m of cash held as at 30 June 2018 • Continue to remain Debt free • Net $1.7m operating cash flow positive during FY2018 as a result of business growth and improved working capital management • Increasing net asset basis and net tangible asset balances • Purchase of Riyo Platform ($600k intangible asset recognised) • Despite strong Q4 project delivery results the Group still increased the deferred revenue balance which sets the Group up for a strong FY2019	Balance Sheet Extract June 2018 ($m) June 2017 ($m) Cash at Bank 4.5 3.5 Deferred Expenditure 0.2 0.3 Intangible Assets 2.9 2.3 Total Assets 11.3 8.9 Unearned Income 2.7 2.2 Total Liabilities 6.4 4.9 Net Assets 4.9 4.0 Net Tangible Assets 2.0 1.7 Summary • $4.5m of cash held as at 30 June 2018 • Continue to remain Debt free • Net $1.7m operating cash flow positive during FY2018 as a result of business growth and improved working capital management • Increasing net asset basis and net tangible asset balances • Purchase of Riyo Platform ($600k intangible asset recognised) • Despite strong Q4 project delivery results the Group still increased the deferred revenue balance which sets the Group up for a strong FY2019
Cash at Bank	4.5
Deferred Expenditure	0.2
Intangible Assets	2.9
Total Assets	11.3
Unearned Income	2.7
Total Liabilities	6.4
Net Assets	4.9
Net Tangible Assets	2.0

6 | Results Presentation – 30 June 2018

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Key financial trends

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

7 | Results Presentation – 30 June 2018

	ERP	Division	Division	Division	Recurring	Recurring	Recurring	Recurring	Contract	Contract	Contract	Business	Business	Model
$6,000,000
$5,000,000
$4,000,000
$3,000,000
$2,000,000
$1,000,000
$-
	2009	2010		2011		2012	2013		2014		2015	2016	2017	2018
		2009	2010	2011	2012	2013	2014	2015	2016	2017	2018

Reflects the annualised contract basis of recurring income products (licenses and support) for all ERP customers. NetSuite customers are shown at the amount of 8 | Results Presentation – 30 June 2018 annualised commissions received from each customer (between 30% and 50%), JCurve ERP customers are shown as the annualised recurring contract value.

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Overall Summary

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• Strong Financial Growth

• Foundations

• § $0.9m profit before tax § Continued organic revenue and profit growth

• § $4.5m cash at bank as at 30 § Market trend towards cloud

• June 2018 adoption

• § $1.7m operating cash flow § Industry leading products

• positive § Through acquisitions (Riyo

• § Debt free Platform) and other M&A opportunities continue to be

• § Growing recurring annual evaluated ERP commissionable contract § Product diversification

• base

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• Strong Operational Fundamentals

• § Growing customer base § ‘All in one’ unique product capability

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

• § Expanding list of additional solutions

• § We have a proven track record

9 | Results Presentation – 30 June 2018

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Contact Information

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

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

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(02) 9467 9200 | www.jcurvesolutions.com

10 | Results Presentation – 30 June 2018