POINTERRA LIMITED — Interim / Quarterly Report 2019

Jan 30, 2019

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Pointerra Limited

31 January 2019

December 2018 Quarter Activities and Cash Flow Report

Pointerra Limited (ASX:3DP) (“Pointerra” or “the Company”) is pleased to provide an overview of the December 2018 quarter activities and the associated cash flow and cash position in the Appendix 4C (attached).

Highlights:

• 50% growth in cash receipts; ACV at $0.93 million

• Material growth in domestic enterprise utility sector revenue

• Multiple US customers secured across diverse range of sectors

• Over-subscribed placement to further accelerate sales growth

Cash Receipts, ACV Status, Enterprise Sales & Data Marketplace

Cash Receipts & ACV Status

During the quarter the Company received $125K in customer receipts, which represented 50% growth compared to the September 2018 quarter figure of $81K.

Pointerra is pleased to commence quarterly reporting of aggregate ACV (annual contract value), which is generally accepted as one of the better measures of sales performance for a SaaS business and will allow the Company to report on growth in customer sales in addition to cash generated through operations.

ACV amounted to $0.93 million as at 31 January 2019 and the Company expects this to continue to grow throughout 2019 and beyond based on pending contract awards and DaaS (Data as a Service) proposals submitted to prospective customers.

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Pointerra Limited | ABN 39 078 388 155 Registered Office: 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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Enterprise Sales

During the quarter Pointerra successfully migrated the Company’s longest running domestic enterprise customer in the utility sector from a $10,000 pcm DaaS subscription to a $20,000 pcm subscription.

This landmark outcome for the Company followed an extensive and successful paid Proof of Concept (POC) period, where Pointerra worked with the customer to understand the positive impact on asset management, workflow and operational efficiencies generated through use of Pointerra’s cloud platform for 3D data across the enterprise.

The POC process identified ROI (Return on Investment) outcomes across the enterprise through the use of Pointerra’s solution and post-implementation is already generating previously unforeseen incremental benefits for this customer across the more than 2,000 users.

These important learnings helped secure the Company’s 2[nd] domestic utility customer during the quarter and are now being used to accelerate the conversion of other trial customers to enterprise DaaS subscriptions as well as helping attract new prospects across multiple industry sectors.

Through leveraging these customer validated ROI outcomes during the quarter, Pointerra also secured a number of US enterprise customers across a range of sectors including the ADAS (Advanced Driver Assistance Systems), AEC (Architecture, Engineering & Construction) and Surveyor/Mapping/UAS verticals, all of which have helped contribute to the current ACV level of $0.93 million.

The Company enters 2019 with record levels of trial customers, submitted proposals and pending contract awards. A new US sales resource commenced with the company on January 21 and additional prospective hires have been identified in both Australia and the US. This growing global sales team will accelerate execution of the sales pipeline throughout the year.

3D Data Marketplace Update

During the quarter Pointerra continued to work with domestic data capture partners to progress the deployment of curated datasets for sale by subscription and spot-purchase on the Company’s 3D data marketplace platform.

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Pointerra Limited | ABN 39 078 388 155 Registered Office: 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

The Company has also advanced licensing negotiations with several US-based data capture businesses to deploy their 3D data onto Pointerra’s 3D data marketplace, again for sale by subscription and spot-purchase. In addition, the more sophisticated and pervasive use of 3D data in the US market has also presented a number of 3D data analytics opportunities leveraging the core 3D data sources to provide deeper insight and help answer a range of diverse digital asset management questions.

As previously advised, the Company expects that data from aerial and mobile capture partners will begin to be loaded onto Pointerra’s platform in coming quarters, with first sales generated thereafter.

Solution Development and R&D

Solution Development

UI Refresh . The front-end user interface has undergone further refresh. This has laid the foundation for adding a range of new capabilities into the viewing platform in the future, through the implementation of new plugin architecture.

Data upload improvements. Further improvements to the browser based data upload process were delivered, with the web upload process now tolerant to network dropouts and other interruptions. A large-scale data upload facility has also been created for enterprise customers so that external tools can be used to upload their data into a custom AWS storage location provided as part of their Pointerra account. This means that enterprise customers are not required to upload large datasets through a web interface and are able to use a more robust methodology to get their data into Pointerra’s cloud platform.

Research and Development

As outlined previously, R&D efforts continue to focus on three strategic areas:

1. Development of a platform to underpin the delivery of point cloud analytics to Pointerra customers;

2. Developing an initial catalogue of analytics (either internally developed, or through partners); and

3. Broadening the platform to support storage and visualisation of complementary 3D data types, including imagery, CAD and vector layers.

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Pointerra Limited | ABN 39 078 388 155 Registered Office: 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

Cash Flow & Corporate

Cash receipts from customers during the quarter amounted to $125K, up from $81K in Q1 FY19.

Encouraged by material growth of the international and regional sales pipeline in the infrastructure utilities; surveying and mapping; and AEC sectors, the Board resolved to pursue an accelerated sales execution strategy during the quarter.

This strategy required additional human resources and in December Pointerra successfully raised $1.15 million through an over-subscribed placement of 27.38 million shares at a price of $0.042 to fund the recruitment of sales resources in the US and Australia as well as for general working capital purposes.

Cash outflows for the quarter were in line with management expectations and the cash balance at 31 December 2018 amounted to $1.865 million. Please refer to the attached Appendix 4C for further detail.

-- ENDS --

For more information, please contact:

Ian Olson Managing Director, Pointerra +61 417 998 328 ian.olson@pointerra.com	Paul Hart Director, Canary Capital +61 421 051 474 phart@canarycapital.com.au

About Pointerra : Pointerra is an Australian company focussed on the global commercialisation of its unique 3D geospatial data technology. Pointerra’s technology has solved entrenched problems in the 3D geospatial and asset management sectors and allows very large 3D datasets to be stored, used, analysed and shared without the need for high performance computing. 3D data is processed and stored in Pointerra’s cloud deployed platform 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. Pointerra. 3D Data Solved.

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Pointerra Limited | ABN 39 078 388 155 Registered Office: 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

Name of entity	Name of entity
Pointerra Limited
ABN 39 078 388 155	Quarter ended (“current quarter”)
	31 December 2018
Consolidated statement of cash flows 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	Current quarter $A’000 Year to date (6 months) $A’000 125 206 (210) (456) - - (10) (14) - - (191) (397) (245) (487) - - 5 11 (1) (1) - - - 487 - 9 (527) (642)
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments	(2) (9) - - - -

• See chapter 19 for defined terms

1 September 2016

Page 1

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

Consolidated statement of cash flows	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(6 months)
			$A’000
	(d) intellectual property	-		(5)
	(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	(2)		(14)
3.	Cash flows from financing activities
3.1	Proceeds from issues of shares	1,150	1,150
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	1,150	1,150
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	1,251	1,386
4.2	Net cash from / (used in) operating activities (item 1.9 above)	(527)	(642)
4.3	Net cash from / (used in) investing activities (item 2.6 above)	(2)		(14)
4.4	Net cash from / (used in) financing activities (item 3.10 above)	1,150	1,150

• 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	Consolidated statement of cash flows	Current quarter	Year to date
		$A’000	(6 months)
			$A’000
4.5	Effect of movement in exchange rates on cash held	(7)		(15)
4.6	Cash and cash equivalents at end of quarter	1,865	1,865

5.	Reconciliation of cash and cash	Current quarter	Previous quarter
	equivalents	$A’000	$A’000
	at the end of the quarter (as shown in the
	consolidated statement of cash flows) to the
	related items in the accounts
5.1	Bank balances	1,315	401
5.2	Call deposits	550	850
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)	1,865	1,251

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	(57)
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

The transactions in item 6.1 include directors’ fees and salaries paid during the quarter.

	Current quarter $A'000
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	Total facility amount	Total facility amount	Amount drawn at
	Add notes as necessary for an	at quarter end		quarter end
	understanding of the position	$A’000		$A’000
8.1	Loan facilities
8.2	Credit standby arrangements
8.3	Other (please specify)
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			250
9.2	Product manufacturing and operating costs
9.3	Advertising and marketing			20
9.4	Leased assets
9.5	Staff costs			170
9.6	Administration and corporate costs			180
9.7	Other (provide details if material)
9.8	Total estimated cash outflows			620

10.	Acquisitions and disposals of	Acquisitions	Disposals
	business entities
	(items 2.1(b) and 2.2(b) above)
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

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: ............................................................ Date: .....31 January 2019............... (Director/Company secretary)

Print name: ............Ian Olson..............................

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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