MOTIO LTD — Call Transcript 2022

Jun 21, 2022

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June 22, 2022

Market Announcements Platform ASX Limited

Q&A Webinar Transcript

Date: 22 June 2022

Time: 5:00pm EST

Introduction

The purpose of the webinar is to provide insight on the performance of the last 12 months, how we are going as a business and continue our ‘open door policy’ for investors.

Today we are covering off a number of areas that we think are important to communicate.

1. A refresh on what Motio does, our vision, mission purpose and our networks

2. What is Place Based Media?

3. How we generate revenue across our media, software and payments platforms

4. Update our goals from last year (pre covid lockdown) + A sense of progress since our media business commenced

5. How we will continue to grow & Motio’s focus areas

6. Any questions from Investors

Our vision

Our vision: To be the global leaders in Digital Place Based Media and audience experience.

We will do this by focusing on key audience channels that we have built and can lead – Motio is continuing to enhance its media ecosystem of data, utility, content, software and payment products that really drive our customer experience platforms (or audience experience as we call it) within our locations to drive our core business of media sales.

What does Motio do?

We are passionate about being a next generation media company which uses real and meaningful data to help brands engage audiences in key place-based locations including Ultra, Large and Community medical centres, Large scale Indoor Sports and Leisure Centres and Displays across almost every Ampol location nationally.

We are next generation because unlike traditional media companies, we bring the best that online and traditional advertising has together to create high quality digital marketing environments through data, media, content and also enable our GP and Indoor Sports centres to directly access our displays for their own marketing purposes.

As already mentioned, we have a growing Software and Payments business through the recent acquisition of the Spawtz software and payments company. This has enabled us to deepen our customer base with growing SaaS revenue with 900+ venues using the software and payments across Australia, New Zealand and the UK.

MOTIO LIMITED | LEVEL 15, 189 KENT STREET SYDNEY NSW 2000 | P +61 2 7227 2277 | ACN 147 799 951

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What is Place Based Media?

‘Place Based’ is part of the Out-Of-Home or outdoor advertising media sector. Motio are a member of the Outdoor Media Association (or OMA as they are called) the sector is well on track to recovery pre-pandemic in 2023.

Unlike other Out-Of-Home media, our networks live in environments where people are waiting or congregating for extended periods of time right in front of the displays.

Consider times when you are waiting to see your Doctor, (which our location data tells us is around 29 minutes) versus a billboard which can be measured in seconds. Our networks deliver niche audiences at scale, effectively and efficiently.

In Motio’s case, we take a number of further steps adding first party data sets to deeply understand the audience in the environments. Motio also has technology to enable our property partners access to the displays enhancing the customer or audience experience through professional communication.

How we generate revenue across our streams

Motio has a number of revenue streams. Our main source is media.

Our National advertisers such as Uniting Care, GSK, Federal and State Governments, Bunnings, Kayo, just to name a few - engage our audiences on a campaign basis, often utilizing most or all of our network for shorter campaign periods, usually around 4 weeks.

Our local advertisers such as schools, daycare, real estate, car dealers. Mechanics, local solicitors usually buy 1, 2 or 3 locations but are advertising for a year or more.

Programmatic advertisers are booking our locations based on the audience profile. This could be as short as a day or as long as 3 months. Programmatic offers advertisers the opportunity to buy through trading platforms, similar to how you might trade shares, or book a hotel. It uses audience criteria which might include geography, demography and even triggers such as weather. Programmatic is slowly replacing and automating the back and forth of the trading side of our business leaving us more time to sell our media and its audience to brands and businesses.

Motio is genuinely excited about the developing programmatic sector, and continues to generate revenue, ‘machine to machine’.

Our software revenue is SaaS based revenue through the recently acquired Spawtz platform - Indoor sports, leisure and organized amateur sports provide monthly, ongoing SaaS revenue and utilize the platform to organize games and provide fixtures including court or field management.

The Spawtz acquisition has enabled Motio accelerate its Payments Platform as a growing revenue stream . Many of our players have been paying cash, collecting from their team mates and centres have been missing payments and spend quite a bit of time collecting money. Spawtz has transformed this by providing the time to operators to provide great game experience.

Spawtz has allowed Motio to develop our payments platform to streamline this for associations, centres and importantly players. Teams can get on with their game and sports organizers can leave the collection of money to our platform.

Motio has been developing Software & Payments in Australia for the past 18 months using the Spawtz platform which we previously represented. Motio sees the UK and New Zealand as great opportunities for further development with amateur sports organizers enthusiastic to change and enhance the player experience by using all aspects of our software and payments platform through our existing team.

MOTIO LIMITED | LEVEL 15, 189 KENT STREET SYDNEY NSW 2000 | P +61 2 7227 2277 | ACN 147 799 951

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Lastly, we work closely with Asahi/Schweppes and have exclusivity around “netted courts” across our indoor sports locations nationally with volume discounts and rebates generating cash for the business and also generating group discounts for our partners and empowering our existing network in each region.

Update on our goals and performance of our media business over the past 2 years

In July 2020, we launched Motio Media. There’s no doubt that the past 2 years have been extremely challenging for all business and Motio is no exception. We set out a number of lofty goals last year and whilst we feel really proud of what we’ve achieved including, what looks like a 40%-50% growth in our revenue, we didn’t quite get there on everything, but let me take you through it.

The first was that Motio would attempt to double its media revenue and whilst this hasn’t been achieved with the Covid lockdown being the central cause significantly pausing revenue generation. That said, the last 4 to 5 months have delivered consistency and a level of predictability that has provided the type of optimism required and confidence for the future.

During lockdown, we were unable to roll out the IPN network as expected. This caused some revenue delays and local ad sales also slowed during this period.

GPs are seeing more people indoor Sports Centres are open for business and through our Spawtz platform we can see the increases in games, and our Petro network continues to see audiences en masse.

The aim this time last year was to target acquisitive growth. This was definitely achieved and whilst we acquired Spawtz, we which have been very pleased with and the opportunities that it is presenting we also were painfully close to 2 other targets.

Motio has been and will continue to be disciplined in our M&A activity and it must tick all the boxes. Unfortunately, in the end these 2 targets did not – We continue to investigate great opportunities that present accretive value for Motio and its shareholders – This will continue to be a priority in FY23.

Programmatic has increased significantly this year. Motio has achieved the 5% of media revenue through this sales channel that was predicted. As I mentioned earlier, we firmly believe in this as a positive change in the out-of-home media sector which will be greatly enhanced with industry measurement in the medium term which Motio is perfectly positioned to take advantage of.

Motio had a goal to be recognized by our key commercial partners and we have delivered this in spades. Since acquiring Medical Media just over a year ago, we have invested in new digital displays and industry leading technology and have changed the face of our commercial offering by enhancing reliability, content and services. This has been repaid by our commercial partners who have been highly supportive of the initiatives that we have developed. Motio has a key project still in beta testing and we hope to talk more about later in the year as we pass our testing goals.

Finally the payments platform has developed exceptionally well. Unfortunately, the extended lockdown period prevented us from achieving this goal. With lockdowns now over our roll out plans that were detailed a few moments ago mean we’re now in a position to scale this across our existing and potential customers groups.

Motio’s media business over the past 2 years

Since launching media in July 2020, we have had a quarter on quarter CAGR of 23% and delivered a c. 50% uplift year on year.

Our sales cycle is circa 100 days making the lockdown period last year clearly visible in our chart and of course the addition of the Medical Media revenue through the last quarter of 2020/21.

MOTIO LIMITED | LEVEL 15, 189 KENT STREET SYDNEY NSW 2000 | P +61 2 7227 2277 | ACN 147 799 951

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We have seen an increase in our utilization and contracts written and the consistency of revenue of the last 6 months has been strong. That and the return of sports and GP visitation is very encouraging for team Motio as well as our partners.

5 How we will continue to grow & Motio’s focus areas

Our growth is split into X areas all continuing to develop.

In FY22 we managed to build out a large base of inventory and the next year will be about enhancing yield on that inventory. Like a hotel, the incremental cost of selling an additional unit of inventory is minimal, meaning it will drive higher margins and operating leverage as we do, no different to billboards.

The opportunity to more deeply develop our key categories around Government, Aged Care, Pharmaceutical and of course our local advertisers remains our greatest growth option.

Programmatic is bringing the best of Online media and Out Of Home together making data and measurement a more important part of the sales process. Motio’s strengths against traditional media assets is our data and we expect this to benefit in our years to come. We are in an increasingly strengthening position as we target large audience sectors and offer strong value against critical demographics.

Motio’s acquisition of the Spawtz platform has enabled

• a. The full benefit of the margin in the Australian Business which we have seen continuing growth

• b. The opportunity to grow the UK market which has some very key clients but a large addressable market to develop with motio’s strength in sales across both software and payment clients

• c. New Zealand is a great market for software but offers a continued option for Payments growth

• d. The potential to work with likeminded businesses in other markets

There are strong organic and acquisitive opportunities in the Australian Digital Place Based market that we will continue to develop and as I said before, we will only do deals that accretive to shareholders.

Before we go to the Q&A I’d like to acknowledge the Motio team - we’ve delivered 40-50% revenue growth in a highly disruptive year, executed on our M&A plan, we have an aligned board and management team that own a large portion of the company between them and are committed to the success of motio. We have a growing and dedicated team of professionals that care about the business and work as owners every day.

Thank you.

This announcement has been authorised for release by:

Adam Cadwallader

Managing Director

ABOUT MOTIO LIMITED

Motio is a leading Audience Experience & Digital Place-Based media company. It is focussed on creating engaging content & utility communication for brands, customers and its commercial partners across its expansive digital marketing environments. Its networks leverage long dwell time, delivering powerful, contextual connections to audiences, underpinned with first party data and location intelligence technology.

MOTIO LIMITED | LEVEL 15, 189 KENT STREET SYDNEY NSW 2000 | P +61 2 7227 2277 | ACN 147 799 951