READYTECH HOLDINGS LIMITED — AGM Information 2020

Nov 17, 2020

ReadyTech Holdings Limited

18 November 2020

ABN 25 632 137 216

Annual General Meeting – Presentation

ReadyTech Holdings Limited (ASX: RDY) (ReadyTech or the Company) attaches the presentation to be made at ReadyTech's Annual General Meeting today which will be held online (virtually).

This announcement has been authorised for release to ASX by the Chair of ReadyTech,

For more information please contact:

Nimesh Shah Ronn Bechler Chief Financial Officer Market Eye P: + 61 437 980 296 P: +61 400 009 774

E: Nimesh.shah@readytech.com.io E: ronn.bechler@marketeye.com.au

2020 Annual General Meeting

18 NOVEMBER 2020

NEXT GENERATION SAAS PEOPLE CENTRIC SOFTWARE

NEW BUSINESS DRIVING TOP LINE GROWTH IN FY20

ReadyTech continues to expand its customer base with blue-chip clients	Example of New Customer Wins
FY20 Q4 new business up 55% compared to FY19 Q4	Student Management Systems
Breakthrough Education contract win of $7m (5 yearsubscription) with Kangan Institute and Bendigo TAFE
Strong Workforce Solutions (Employment) progress with new
customer wins including Glassons, Samsung and dnata	Workforce Solutions (Employment)
Growing momentum in Back to Work and Skills sectors, supportedby the upcoming Federal Government's $2bn JobTrainer program
Accelerated adoption of remote servicing and next generationcloud technology

KEY FY20 FINANCIAL AND OPERATIONAL HIGHLIGHTS

95% 89% RECURRING REVENUE

CLIENT REVENUE RETENTION

Organic revenue growth of 10%

* Underlying results exclude the impact of non-recurring costs of $0.6M

YoY Comparisons to FY19

Grow ARPC via upsell, cross-sell and customer success

Continue R&D investment in platform and modules

• Secured multiple high value, enterprise contracts including BKI TAFE
• Gross opportunity pipeline maintained at $14M which reflects annualised subscription revenue and implementation fees
• ARPC up 18% to $10.5K in FY20
• Module adoption for remote servicing driving organic growth
• Behavioural science cross-sell - multiple contracts signed during FY20

Execute oncomplementaryacquisitions andexplore strategicverticals	Retain and investin new talent	Leverage horizontalReadyTech bestpractice playbook
•Successfully completedtwo highly complementaryacquisitions for Workforce	•Investing in talentfor growth includingJames Diamond	•Consolidation ofinfrastructure (AWS) andInfo Sec (ISO 27001)
Solutions (Employment)•Launched and stronguptake HR3+, a unified	appointed ChiefExecutive, Education•Growing Sales &	•Investment in bestpractice product strategy,sales & customer success
payroll and workforce	Marketing investment

• Maintained R&D spend at over $11m in FY20
• New tech and modules to support:
• Student health, digital credentials (Education)
• Automated workflows, employee benefits (Workforce Solutions)

management platform

from 8.3% of revenue

in FY19 to 9.2% of

revenue in FY20

• Amplification of ReadyTech brand and marketing

DELIVERING ACROSS ALL STRATEGIC PRIORITIES

SUCCESSFULLY NAVIGATING THROUGH COVID-19

Safety of our team and continuity for customers

Increased Customer Loyalty

Investing in new talent for growth

Investing in technological innovation

Resilience and strong performance

• Smooth transition to a "work from home" environment allowing projects and sales pipelines to be managed remotely
• Launched successful "Remote Control" initiative to support customers in remote transition

• Not a single employee stood down due to COVID-19
• Increased investment in people resources to underpin next wave of growth, including new Chief Exec, Education & senior marketing roles

I just wanted to say thank you for your support during this new world we find ourselves in. The timing of your information sheet for JobKeeper payments could not have been better and has just made my life a whole lot less stressful. I hope you all know how much we appreciate your efforts "

as we can see how hard you are all working. Jo, Payroll Office, Giorando (Australia) Pty Ltd "

• Strong adoption of modules for remote servicing by existing customers including online learning and timesheets for remote staff
• Delivered features to support clients' JobKeeper requirements

• High recurring revenue profile and longterm customer tenure maintained
• Low exposure to international students, accounting for only 3% of students
• Growing momentum in the Back-to-Work sector with increasing JobSeeker caseloads

Education

Student Management & Work Pathways

One high performing ReadyTech culture Customer and future focused

Product Strategy

Market Fit & Agility

Software Development

Quality & Velocity

Infrastructure & Security

Scale & Efficiency

Next Generation SaaS - Mission-Critical & Highly Trusted

READYTECH'S PLAYBOOK DELIVERS HIGH VALUE TO SEGMENTS AND VERTICALS

Pure cloud provides agile development and regular releases via subscription

Attractive nature of SaaS subscription contracts and payments

Customer-centric cloud solutions, providing an entire suite of student management services

Local and strong regulation expertise and technology partner offering

Student Coach – a unique valueadded predictive capability focused on increasing student outcomes

Strong student self-service and support for "student life". Marketplace manages employment pathways and internships

THE NEXT GENERATION STUDENT MANAGEMENT SYSTEM

OPPORTUNITY WHY WE WIN

LEGACY Sunset current legacy systems with digital transformation projects

CONSOLIDATION

Seeking improved productivity, efficiency and system consolidation

AGILITY

Seeking agility to evolve technology and maintain regulatory requirements, limited by rigid, slow-moving systems

EXPERIENCE

Focus on improving student outcomes and student experience

INVESTMENT MODEL

Sentiment has shifted from large, upfront technology investments

• Landmark new contract signed Jan 2020 following intensive evaluation process. $7m contract with initial 5-year software subscription

• Supporting 40,000+ students and 850+ staff

• supported by continued growth in clients prepaying annual subscription fees

• System is live and subscription commenced

• UQ becomes key client reference

• Growing reputation as a viable alternative SaaS platform

• Expanding pipeline of enterprise opportunities to deliver future growth

CONTRACT WINS

PROJECT UPDATE

ENTERPRISE PIPELINE UPDATE

EDUCATION

Example Clients:

READYTECH EDUCATION MARKET OPPORTUNITY EDUCATION

Strong progress made penetrating the large addressable market of tertiary education and training

jobactive is the Australian Government's $1.3bn program to get more Australians into work. It connects job seekers with employers and is delivered by a network of jobactive providers in over 1,700 locations across Australia

Market leading SaaS platform for Back-to-Work and disability employment providers

Highly respected behavioural science technology and data analytics to drive employment outcomes

• Identify employment barriers and training/skills gaps to support work readiness
• Job matching and work placement capability to drive job outcomes
• Job seeker self-service to support remote delivery of critical services

JR Live is one of only three systems security accredited by Department of Education, Skills and Employment

• Assessment of work readiness unique behavioural science informed IP
• Tech-enabled tools and timed interventions to build resilience in job seekers and triage to supporting services
• Strong return on investment and proven to improve job outcomes

Clients Include:

Pathways – "Back to Work" Market WORK PATHWAYS: BACK-TO-WORK MARKET EDUCATION

ReadyTech is well positioned to support increasing caseloads and government funding for Back-to-Work sector with market leading cloud based products and services

UNIFYING AND EXPANDING OUR WORKFORCE CLOUD OFFERING

WORKFORCE SOLUTIONS (EMPLOYMENT)

READYTECH OFFERINGS COVER THE EMPLOYMENT SECTOR

WORKFORCE SOLUTIONS (EMPLOYMENT)

Comprehensive and complementary Employment product suite targeting higher value customers with significant upside potential

STATED STRATEGY TO INCREASE FOCUS ON NEW VERTICALS

WIN NEW CUSTOMERS

RETAIN CUSTOMERS • Invest in customer success to grow loyalty, upsell (increase ARPC) and sustain customer retention

• Investment in enterprise/higher education sales capability • Increase market share in

• ReadyTech looks to expand into a third vertical with potential strategic acquisition of Open Office & McGirr (collectively Open Office)
• Potential opportunity is in line with strategy to identify new verticals and provide mission critical SaaS, underpinned by our best practices approach to deploying customer-centric software
• Strategy focused on identifying additional technologies to expand reach into different vertical markets, continuing a successful track record of expanding into new markets
• Strategically compelling for ReadyTech, enabling acceleration of growth through entry into the government and justice sectors
• Unlocks new target addressable markets and leverages Open Office's experienced management team and capabilities to create ReadyTech market share in these new markets
• Delivers incremental recurring revenue adding to ReadyTech's existing strong subscription revenue streams

Q1 TRADING UPDATE AND REAFFIRMATION OF FY21 GUIDANCE

Ready Tech reaffirms FY21 guidance as disclosed to the market on 26 August 2020 with Q1 trading in line with guidance assumptions (revenue retention for Q1 maintained at 95%)

Gross new business pipeline maintained at $14.0m

Continued growth in Sales and Marketing investment to drive top line revenue, ReadyTech has secured experienced Heads of Marketing for each of our Education and Workforce Solutions segments, established a "deal desk" and are rolling out best-of-breed customer relationship management (CRM)

ReadyTech is well positioned to support the back-to-work and skills sectors, and considers skills for the future to be a key plank of economic recovery. We are encouraged by the ability of our software to assist businesses to facilitate the provision of training and services as part of the Federal Government's $2 billion JobTrainer Skills package which aims to deliver 340,000 new training places.