READCLOUD LIMITED — AGM Information 2023

Feb 12, 2023

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ReadCloud Limited Chairman’s Presentation to Annual General Meeting 13 February 2023

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Virtual AGM Access

https://us06web.zoom.us/webinar/register/WN_ZIx_e-f5TCujITacmkVmxg

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READCLOUD IS A MARKET LEADER IN DIGITAL CONTENT DELIVERY FOR EDUCATION IN AUSTRALIA

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FY22 OVERVIEW

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Revenue $8.21 million , up 17.5% on pcp

Record cash receipts of $7.88 million (versus $7.20 million pcp)

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Agreement to acquire Southern Solutions Training Services, a leading provider of training for certificates in Early Childhood Education & Care

Execution of first overseas eBook Solutions deal with leading London-based international online school King’s InterHigh

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School and user growth driven by organic growth (new school customers and additional sales to existing customers) and acquisition of Ripponlea Institute

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VET IN SCHOOLS INVESTMENT SETTING THE PATH FOR CONTINUED GROWTH

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Standardisation of operational systems and processes across the three Registered Training Organisations (“RTOs”)

Hiring of a dedicated ReadCloud VET Group sales team

A national marketing launch of the ReadCloud VET Group

Development of a new learning management platform deployed for AIET schools in 2022 and launched for all three Vet In Schools RTO’s in the 2023 school year

Upgrading (in terms of quality and breadth) of a large proportion of the VET course resources used by the three VET in schools businesses

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READCLOUD’S MARKET OPPORTUNITY

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----- Start of picture text ----- 1.7 million students in2,816 secondaryschools in Australia [2]----- End of picture text -----

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----- Start of picture text ----- 241,000 3.9 million studentsstudents in enrolled in VETVET-in-school courses with 3,519courses [1] training providers inAustralia----- End of picture text -----

Continued Investment

Increased Investment

New Investment

ReadCloud eBook solutions

• The full-curriculum eBooks (maths, English, science etc.)

• We estimate a market size in Australia of $170 million (conservative estimate of $100 per student p.a. for learning resources)

• Continue to pursue overseas expansion after signing King’s InterHigh

ReadCloud Vocational Education & Training-in-schools

• 241,000 school students took VET courses in 2020[1] , implying nearly 1 in 2 senior students in years 11 and 12 study VET courses

• With VET in secondary school courses costing approximately $250-300 per course per annum, ReadCloud estimates it is a $60-75 million industry

Broader VET market

• Acquiring Southern Solutions launches ReadCloud into a large market with skills shortages

• Government funding in this area averages in excess of $8,000 per student and the total funding in VET is $7.5 billion

• The ReadCloud SaaS Platform is designed to support the Broader VET market

1. National Centre for Vocational Education Research – VET in Schools 2020 report (up from 60,000 students in 1996) 2. Australian Curriculum, Assessment & Reporting Authority

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TRADING UPDATE & OUTLOOK

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Growth in organic revenue for FY23 expected to be achieved

December quarter cash receipts from customers shows an encouraging increase on the prior comparable period

VET in schools growth is expected to ramp in FY23 with 28% of the three ReadCloud RTO’s collective schools’ customers having signed up to use more than one of the RTOs in FY23, up from 21% in FY22. Management expects this positive trend to continue

The acquisition of Southern Solutions post FY22 year-end provides a significant growth opportunity for the Company, in a market that is adjacent to ReadCloud’s core business and in an industry with skills shortages and high national government funding and focus

International opportunities present upside to growth without significant increased investment

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READCLOUD LIMITED

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