KNOSYS LIMITED — AGM Information 2020

Nov 24, 2020

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Annual General Meeting 2020 November 2020 ASX:KNO

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Commercial In Confidence © Knosys Limited 2020

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AGM Presentation November 2020 ASX:KNO

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Commercial In Confidence © Knosys Limited 2020

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Disclaimer

• The information contained in this presentation has been prepared by Knosys Limited

• The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions in connection with any acquisition of securities, investors should rely on their own examination and consult their own legal, business and/or financial advisers.

• This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any securities in the Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile statement or offer information statement. This presentation is not subject to the disclosure requirements affecting disclosure documents under Chapter 6D of the Corporations Act 2001 (Cth). The information in this presentation may not be complete and may be changed, modified or amended at any time by the Company, and is not intended to, and does not, constitute representations and warranties of the Company.

• The Company does not have a significant operating history on which to base an evaluation of its business and prospects.

Therefore, the information contained in this presentation is inherently speculative.

• The information contained in this presentation is strictly confidential and you must not disclose it to any other person. While the information contained in this presentation has been prepared in good faith, neither the Company or any of its directors, officers, agents, employees or advisors give any representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. Accordingly, to the maximum extent permitted by law, none of the Company, its directors, employees or agents, advisers, nor any other person accepts any liability whether direct or indirect, express or limited, contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the information or for any of the opinions contained in this presentation or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this presentation.

• This presentation may contain statements that may be deemed “forward looking statements”. Forward risks, uncertainties and other factors, many of which are outside the control of the Company can cause actual results to differ materially from such statements. Such risks and uncertainties include, but are not limited

to, commercialisation, technology, third party service provider reliance, competition and development timeframes; limited operating history and acquisition and retention of customers; reliance on key personnel; maintenance of key business partner relationships; brand establishment and maintenance; the Company’s products may contain programming errors, which could harm its brand and operating results; competition; changes in technology; data loss, theft or corruption; security breaches; liquidity and realisation; and additional requirements for capital.

• The Company makes no undertaking to update or revise such statements, but has made every endeavour to ensure that they are fair and reasonable at the time of making the presentation.

• Investors are cautioned that any forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in any forwardlooking statements made.

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Commercial In Confidence © Knosys Limited 2020

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Who we are …

Knosys is a technology company that provides software as a service (SaaS) information management solutions aimed at delivering the right information at the right time.

We are a leading provider of knowledge management solutions for customer-facing websites, contact centres and customer success teams. We change the way information is shared between employees and customers to transform the quality and efficiency of customer service and operational compliance.

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Commercial In Confidence © Knosys Limited 2020

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Knosys is an Australian SaaS software company that is simplifying knowledge management to improve the productivity of employees and drive improved customer experiences.

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Commercial In Confidence © Knosys Limited 2020

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Share Price Movement
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Commercial In Confidence © Knosys Limited 2020

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FY 2020: Financial Results
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Total Increased Increased NPAT Loss Increased
Cash
Income Sales ARR Increase Licensed
Balance as
Revenue users
at 30 Sept
2020
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Knosys Licensed Users
45000
Total Operating Revenue Annual Recurring Revenue 40000
$3,500,000 $3,500,000
35000
$3,000,000 $3,000,000
30000
$2,500,000 $2,500,000 25000
$2,000,000 $2,000,000 20000
$1,500,000 $1,500,000 15000
$1,000,000 $1,000,000 10000
$500,000 $500,000 5000
$0 $0 0
FY16 FY17 FY18 FY19 FY20 FY16 FY17 FY18 FY19 FY20 Jun'16 Jun'17 Jun'18 Jun'19 Jun'20
No. of Licences
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Managing the Impact of COVID
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• Safety First – implemented measures to support the safety and wellbeing of the Knosys team since March 2020

• Organic Revenue Growth – primarily from existing customers which have shielded the business from the full impact of COVID

• New mid‐ market Sales – despite good progress in building pipeline opportunities in H1, many customers deferred buying decisions due to COVID

• New Enterprise Sales – during the course of FY20 Knosys was short listed (last two) in 3 major RFTs. While commercially we were ranked number 1 in two, the customers selected an incumbent vendor already selling software into the business

• Opportunities Pipeline – significant number of sales opportunities moved into hibernation (customers postponed projects indefinitely) during the year

• Cost Management – during H2 we managed our internal and resource expenses to navigate the unpredictable COVID environment. The company has not been required to utilise Jobseeker or other forms of subsides due to its solid revenue position

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Investment in Product Innovation in FY20

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Knosys completed a product review in H1 with a focus on competitive benchmarking based on customer debriefs in the enterprise space and invested significantly to develop the following capabilities and features to ensure the solution remains at the forefront of existing and potential users

• Integration Capability (Restful API) – expanded basic API to expose more KnowledgeIQ features to 3[rd] party applications

• Salesforce CRM App – released Beta version to enable CRM users to access KnowledgeIQ from within the Salesforce App

• Next generation “mobile first” Knowledge Portal – user experience and simplicity at the forefront of this redesigned User Interface

• Smart Search Enhancement – improved search capability to achieve reduced search 100 fold improvement for end customers

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Knosys Growth Update
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• An improving pipeline of Enterprise opportunities H1 FY21 though conversion will take time

• Knosys is looking to invest in “core solution‐related” development activities that enable and enhance solution positioning and market attractiveness

• Short term focus on core operating fundamentals during the COVID‐19 pandemic, but we are now looking to drive growth

• Actively seeking “tuck‐in” acquisition opportunities to expand our SaaS solutions which demonstrate either higher ARR growth potential and/or earning accretive. Focus is on those that have relatively low execution risk

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Managing Director John Thompson Email: JThompson@knosys.it

Head Office Level 8 31 Queen St, Melbourne Victoria, Australia 3000

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Commercial In Confidence © Knosys Limited 2019

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