POINTERRA LIMITED — Interim / Quarterly Report 2018

Oct 30, 2017

Pointerra Limited

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31 October 2017

September 2017 Quarter Activities and Cash Flow Report

Pointerra Limited (ASX:3DP) (“Pointerra” or “the Company”) is pleased to provide an overview of September 2017 quarter activities and the associated cash flow and cash position in the Appendix 4C (attached).

Highlights – Sales Execution Successes

• First direct sales to enterprise customers

• Milestone technology licensing agreement signed with AAM, the largest geospatial services provider in the southern hemisphere

• Significant growth in the direct sales pipeline to enterprise customers

• Paid trials with power utilities - potential for 5-figure recurring monthly DaaS fees upon conversion to full enterprise licenses

• Ongoing investment in R&D delivered enhancements including ScanView and PointerraCloud 2.0, boosting the value proposition of Pointerra’s solution

Direct Sales, Partnerships and Software Licensing

During the quarter Pointerra grew cash receipts from recurring monthly subscriptions by paying customers across all channels, highlighted by first direct sales to enterprise customers.

Following the recruitment of additional direct sales resources at the start of the quarter, the Company has materially grown the sales pipeline for its world-first Data as a Service (“DaaS”) solution for 3D data in both the “surveyor & data capture professional” and “enterprise” channels.

The direct sales pipeline for end-user customers across all channels now numbers in excess of 300 discrete deals, with the combined value of the most prospective of these (evaluation trial, paid trial and under-proposal) customers sufficient to move Pointerra into a cashflow positive position following their successful conversion into full licenses.

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Pointerra Limited | ABN 39 078 388 155 Registered Office: c/-Westar Capital Limited, Level 4, 216 St Georges Terrace, Perth WA 6000 T +61 8 6268 2622 | F +61 8 6268 2699 | E: info@pointerra.com

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Pointerra Limited

Significantly, Pointerra has also identified the global power transmission and distribution utility sector as highly prospective for its enterprise DaaS solution. Paid trial, evaluation trial and prospective customers in this segment of the enterprise channel alone present an addressable global market of more than $400 million in annual recurring revenues, with existing Pointerra customers in this segment identifying material savings in routine daily asset management workflow tasks that underpin Pointerra’s value proposition, supporting fivefigure recurring monthly enterprise DaaS subscription revenue levels. The Company expects to convert existing paid trial and evaluation trial customers in this segment to full enterprise licenses in coming quarters.

More broadly across the wider enterprise sales channel, the addition of regional/global AEC (Architecture-Engineering-Construction) companies as full licence, paid trial and evaluation trial licence customers during the quarter has added additional materially prospective DaaS deals to the overall enduser sales pipeline.

In the surveyor & data capture professional channel, growth in the sales pipeline resulted in further paying customers during the quarter and subsequent to quarter-end. Whilst this channel generates lower DaaS pricepoints, the sales cycle is shorter and ability to identify, sign-up and close customers across the world from low-cost inside-sales activities in Australia is compelling.

AAM Technology Licence Agreement . Pointerra successfully converted an MOU with AAM, the largest geospatial company in our region, into a technology licence agreement, which was executed in early October.

AAM sells access to its multi-year library valuable geospatial data through various channels, including its GEOCIRRUS cloud-based GIS solution via a DaaS model and the GEOCIRRUS Discovery Portal (the AAM shopfront for data/content).

As part of expanding and improving its GEOCIRRUS strategy, AAM has agreed to licence, under a commercial agreement, Pointerra’s unique 3D geospatial technology.

Pointerra is also licenced by AAM to sell access to AAM’s 3D data (and derivative products) through its own 3D data marketplace.

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Pointerra Limited | ABN 39 078 388 155 Registered Office: c/-Westar Capital Limited, Level 4, 216 St Georges Terrace, Perth WA 6000 T +61 8 6268 2622 | F +61 8 6268 2699 | E: info@pointerra.com

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Pointerra Limited

Under the terms of the technology licence agreement, AAM will pay Pointerra a one-off licence fee for the use of Pointerra’s technology in GEOCIRRUS. AAM will also pay Pointerra a royalty based on data usage and sales through the GEOCIRRUS Discovery Portal; and Pointerra will pay AAM a royalty based on data sales made through Pointerra’s 3D data marketplace.

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AAM’s GEOCIRRUS cloud-based data platform will be enhanced by Pointerra’s 3D data technology

During the quarter, Pointerra also continued to work with several regional and global tier-1 partners from the geospatial, engineering, aerospace and technology sectors towards the goals of securing strategic partnerships (revenue generating enterprise reseller agreements) and technology integration (software licensing and royalty income) outcomes for the Company.

Existing relationships with WorleyParsons/Advisian, Esri, Blue Marble Geographics, NGIS and CR Kennedy continue to be developed and supported as they provide important leveraged access to globally distributed revenue generating opportunities.

The Company has a highly scalable, low cost business model to commercialise its technology and generate near-term revenue and earnings. A diversity of customer size, nature and geographic location, provides a growing sales and earnings pipeline to fund Pointerra’s ultimate vision of leading the global market for 3D data.

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Pointerra Limited | ABN 39 078 388 155 Registered Office: c/-Westar Capital Limited, Level 4, 216 St Georges Terrace, Perth WA 6000 T +61 8 6268 2622 | F +61 8 6268 2699 | E: info@pointerra.com

Pointerra Limited

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R&D and Software Development

During the quarter Pointerra’s technical team continued to enhance the deployment of the Company’s innovative 3D data solution in the Amazon Web Services (“AWS”) cloud environment and make our technology available for 3[rd] party integration evaluation through custom-API’s.

The Company is now hosting more than 300 billion points of 3D data comprising a mix of private data for trial and paying DaaS customers as well as free government data available for viewing and sale through our open data portal.

During the last week of September, the Company attended INTERGEO in Berlin and launched its revolutionary cloud-deployed solution for terrestrial laser scanned 3D datasets, called ScanView, to a global audience.

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Pointerra’s ScanView technology provides world-first visualisation and workflow functionality

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Pointerra Limited | ABN 39 078 388 155 Registered Office: c/-Westar Capital Limited, Level 4, 216 St Georges Terrace, Perth WA 6000 T +61 8 6268 2622 | F +61 8 6268 2699 | E: info@pointerra.com

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Pointerra Limited

ScanView generates a view of the 3D pointcloud dataset from the perspective of the laser scanner, resulting in the highest fidelity view possible of what the laser scanner saw and captured. Whilst there are existing webbased applications that use 360 degree photos to provide this single scan view, in a world-first, Pointerra’s ScanView technology renders the actual colourised 3D points acquired by the scanner, delivering users the full fidelity and accuracy of the 3D dataset as captured by the laser scanner and in a photorealistic view.

INTERGEO is the world’s largest annual conference and trade fair for geodesy, geoinformation and land management. With over half a million event website users and over 16,000 visitors from 92 countries at INTERGEO itself, it is one of the key platforms for geospatial industry dialogue around the world.

Pointerra previously attended INTERGEO in Hamburg in 2016 and the recent conference brought together many of the global Tier-1 partners we have been working with over the past 12 months towards the aim of securing technology licensing deals. At INTERGEO 2017, Pointerra was able to progress a number of these pre-existing opportunities as well as establishing new enduser, reseller and technology licensing relationships, with ScanView being a significant differentiator. In addition to the release of ScanView during September, Pointerra also deployed the 2nd generation data processing and storage technology into production. The PointerraCloud 2.0 engine introduces many new capabilities, including the ability for pointcloud datasets to contain multiple layers, the ability to merge new pointcloud data into existing datasets, and a greatly enhanced ability to track an individual point back to its source dataset file.

The new data format also future-proofs Pointerra’s core technology with an ability to scale to pointcloud sizes far in excess of those currently being created by our customers. Pointerra has also continued to enhance existing API’s (interfaces for 3rd party developers) to support a growing list of partners and customers that are seeking to integrate Pointerra’s 3D data technology into their existing products and workflows. Providing a rich set of API’s is a strategic focus for Pointerra, particularly in supporting the acquisition of Tier-1 enterprise customers and technology licensing agreements.

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Pointerra Limited | ABN 39 078 388 155 Registered Office: c/-Westar Capital Limited, Level 4, 216 St Georges Terrace, Perth WA 6000 T +61 8 6268 2622 | F +61 8 6268 2699 | E: info@pointerra.com

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Pointerra Limited

Corporate & Investor Relations

During September, Pointerra signed an investor marketing services mandate with Canary Capital. Canary Capital will be assisting the Company with investor relations and corporate advisory services. Canary Capital have published a review on Pointerra on their website: https://canarycapital.com.au/pointerra/.

During August, Pointerra presented at the Mac Equity Iconoclasts conference, a half-day investor conference held in Western Australia. As part of this presentation, Pointerra’s Managing Director Ian Olson was interviewed on the outlook for the Company. This interview can be viewed at Pointerra’s YouTube channel https://youtu.be/HuqDaDMk--k along with an earlier interview by Marc Kennis of TMT-Analytics https://youtu.be/x4lUJhXkHas who - has also produced research on the Company http://www.tmt analytics.com.au/pointerra.html.

Cash Flow

Cash receipts from customers grew from $4K in Q4 FY17 to $20K in Q1 FY18. The Company also received $496K from the ATO’s R&D tax incentive during the quarter. Cash outflows for the quarter were in line with management expectations. Please refer to the attached Appendix 4C for further detail.

-- ENDS --

For more information, please contact:

Ian Olson Erik Bergseng Managing Director, Pointerra Canary Capital +61 417 998 328 +612 8052 9519 ian.olson@pointerra.com ebergseng@canarycapital.com.au

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Pointerra Limited | ABN 39 078 388 155 Registered Office: c/-Westar Capital Limited, Level 4, 216 St Georges Terrace, Perth WA 6000 T +61 8 6268 2622 | F +61 8 6268 2699 | E: info@pointerra.com

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Pointerra Limited

About Pointerra : Pointerra is an Australian company focussed on the commercialisation of its unique 3D geospatial data technology. Pointerra’s technology has solved an entrenched problem in the 3D geospatial sector and allows very large 3D datasets to be viewed by users without the need for high performance computing. The 3D datasets are processed and stored in the cloud for instant, on demand user access: anytime, anywhere, on any device. Pointerra’s vision is to create a global marketplace for 3D data, saving users time and money and creating a 3D data access revolution. www.pointerra.com

Forward Looking Statements

This announcement contains certain statements, which may constitute “forward –looking statements”. Such statements may not have been based solely on historical facts, but rather may be based on the Company’s current expectations about future events and results. Where the Company expresses or implies an expectation or belief as to future events or results, such expectation or belief is expressed in good faith and believed to have a reasonable basis. However, forward looking statements are only predictions and are subject to inherent risks and uncertainties, which could cause actual values, results or performance achievements to differ materially from those expressed, implied or projected in any forward-looking statements. Readers should not place undue reliance on forward looking statements. The Company does not undertake any obligation to release publicly any revisions to any forward looking statements to reflect events or circumstances after the date of this announcement, or to reflect the occurrence of unanticipated events, except as may be required under applicable securities law.

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Pointerra Limited | ABN 39 078 388 155 Registered Office: c/-Westar Capital Limited, Level 4, 216 St Georges Terrace, Perth WA 6000 T +61 8 6268 2622 | F +61 8 6268 2699 | E: info@pointerra.com

Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

+Rule 4.7B

Appendix 4C

Quarterly report for entities subject to Listing Rule 4.7B

Introduced 31/03/00 Amended 30/09/01, 24/10/05, 17/12/10, 01/09/16

Name of entity

Pointerra Limited

ABN 39 078 388 155

Quarter ended (“current quarter”) 30 September 2017

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
1. Cash flows from operating activities 1.1 Receipts from customers 1.2 Payments for (a) research and development (b) product manufacturing and operating costs (c) advertising and marketing (d) leased assets (e) staff costs (f) administration and corporate costs 1.3 Dividends received (see note 3) 1.4 Interest received 1.5 Interest and other costs of finance paid 1.6 Income taxes paid 1.7 Government grants and tax incentives 1.8 Other (GST return) 1.9 Net cash from / (used in) operating activities	20 (241) (5) (72) (286) 14 (1) 496 23	20 (241) (5) (72) (286) 14 (1) 496 23
	(52)	(52)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments	(10)	(10)

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
(d) intellectual property (e) other non-current assets 2.2 Proceeds from disposal of: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) intellectual property (e) other non-current assets 2.3 Cash flows from loans to other entities 2.4 Dividends received (see note 3) 2.5 Other (provide details if material) 2.6 Net cash from / (used in) investing activities	(9) (1)	(9) (1)
	(20)	(20)
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 3.2 Proceeds from issue of convertible notes 3.3 Proceeds from exercise of share options 3.4 Transaction costs related to issues of shares, convertible notes or options 3.5 Proceeds from borrowings 3.6 Repayment of borrowings 3.7 Transaction costs related to loans and borrowings 3.8 Dividends paid 3.9 Other (provide details if material) 3.10 Net cash from / (used in) financing activities
4. Net increase / (decrease) in cash and cash equivalents for the period 4.1 Cash and cash equivalents at beginning of quarter/year to date 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above)	2,818 (52) (20)	2,818 (52) (20)

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Consolidated statement of cash flows	Current quarter $A’000	Year to date (3 months) $A’000
4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter
	2,746	2,746
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Other (provide details) 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	946 1,800	518 2,300
	2,746	2,818
6. Payments to directors of the entity and their associates Current quarter $A'000 6.1 Aggregate amount of payments to these parties included in item 1.2 (119) 6.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 6.3 Include below any explanation necessary to understand the transactions included in items 6.1 and 6.2
		Current quarter $A'000
		(119)
The transactions in item 6.1 include directors’ fees and salaries paid during the quarter.
7. Payments to related entities of the entity and their associates Current quarter $A'000 7.1 Aggregate amount of payments to these parties included in item 1.2 7.2 Aggregate amount of cash flow from loans to these parties included in item 2.3 7.3 Include below any explanation necessary to understand the transactions included in items 7.1 and 7.2
		Current quarter $A'000

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

8. Financing facilities available Add notes as necessary for an understanding of the position

8.1 Loan facilities 8.2 Credit standby arrangements 8.3 Other (please specify)

Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000

• 8.4 Include below a description of each facility above, including the lender, interest rate and whether it is secured or unsecured. If any additional facilities have been entered into or are proposed to be entered into after quarter end, include details of those facilities as well.

9. Estimated cash outflows for next quarter	$A’000
9.1 Research and development 9.2 Product manufacturing and operating costs 9.3 Advertising and marketing 9.4 Leased assets 9.5 Staff costs 9.6 Administration and corporate costs 9.7 Other (provide details if material) 9.8 Total estimated cash outflows	250 20 100 130
	500

10. Acquisitions and disposals of business entities (items 2.1(b) and 2.2(b) above)	Acquisitions	Disposals
10.1 Name of entity
10.2 Place of incorporation or registration
10.3 Consideration for acquisition or disposal
10.4 Total net assets
10.5 Nature of business

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

11. Outstanding performance shares

The table below details the outstanding performance shares that were issued to vendors as part consideration for the acquisition of Pointerra Pty Ltd on 30 June 2016.

11. Outstanding performance shares The table below details the outstanding performance shares that were issued to vendors as part consideration for the acquisition of Pointerra Pty Ltd on 30 June 2016.	11. Outstanding performance shares The table below details the outstanding performance shares that were issued to vendors as part consideration for the acquisition of Pointerra Pty Ltd on 30 June 2016.	11. Outstanding performance shares The table below details the outstanding performance shares that were issued to vendors as part consideration for the acquisition of Pointerra Pty Ltd on 30 June 2016.	11. Outstanding performance shares The table below details the outstanding performance shares that were issued to vendors as part consideration for the acquisition of Pointerra Pty Ltd on 30 June 2016.	11. Outstanding performance shares The table below details the outstanding performance shares that were issued to vendors as part consideration for the acquisition of Pointerra Pty Ltd on 30 June 2016.
Performance shares on issue during the quarter
Class Expiry	Balance on issue at 01/07/17	Converted into fully paid ordinary shares	Forfeited	Balance on issue at 30/09/17
Class B 30 June 2018	60,000,000	-	-	60,000,000
Class C 30 June 2019	60,000,000	-	-	60,000,000
	120,000,000	-	-	120.000,000

Each performance share converts into one fully paid ordinary share for nil consideration, upon achievement of the performance based milestones listed below. If the relevant milestone is not achieved by the required date, each performance share in that class will be automatically redeemed by the Company for $0.00001 within 10 business days of non-satisfaction of the milestone.

Class B Milestone

Execution of a commercial technology evaluation agreement with an independent third party for potential use of Pointerra’s DaaS solution, and the volume weighted average price of shares traded on the ASX over 20 consecutive days is not less than $0.06.

Class C Milestone

Execution of a commercial license agreement with an independent third party for potential use of Pointerra’s DaaS solution, and the volume weighted average price of shares traded on the ASX over 20 consecutive days not less than $0.09.

• See chapter 19 for defined terms 1 September 2016

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Appendix 4C Quarterly report for entities subject to Listing Rule 4.7B

Compliance statement

• 1 This statement has been prepared in accordance with accounting standards and policies which comply with Listing Rule 19.11A.

• 2 This statement gives a true and fair view of the matters disclosed.

Sign here: ............Signed – NJ Bassett................ Date: ......31 October 2017............... (Director/Company secretary)

Print name: ............Neville John Bassett.............................................

Notes

1. The quarterly report provides a basis for informing the market how the entity’s activities have been financed for the past quarter and the effect on its cash position. An entity that wishes to disclose additional information is encouraged to do so, in a note or notes included in or attached to this report.

2. If this quarterly report has been prepared in accordance with Australian Accounting Standards, the definitions in, and provisions of, AASB 107: Statement of Cash Flows apply to this report. If this quarterly report has been prepared in accordance with other accounting standards agreed by ASX pursuant to Listing Rule 19.11A, the corresponding equivalent standard applies to this report.

3. Dividends received may be classified either as cash flows from operating activities or cash flows from investing activities, depending on the accounting policy of the entity.

4. See chapter 19 for defined terms 1 September 2016

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