SIMBLE SOLUTIONS LIMITED — Capital/Financing Update 2020

Feb 11, 2020

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Simble Solutions Limited (ASX:SIS)

© Copyright 2020 Simble Solutions Ltd

Share Purchase Plan: Summary of Offer

The Share Purchase Plan

The Company

ASX Code	SIS
Ordinary Shares
• Quoted	150,249,871
• Restricted securities	19,094,546
Total Issued Share Capital	169,344,417
	3-year CAGR customer
Shareholders	growth of 200%+ SIS
Velasco S.A.	19.7%
Fadi Geha	8.5%
Top 20 Shareholders	50.3%
No. of Security Holders	720

• Opening Date: Thursday 13 February, 2020

• Closing Date: Friday 6 March, 2020

• Maximum offer of 50,803,325 shares (30% of issued share capital)

• Issue price $0.016 per share

• Maximum amount to be raised $812,853

• Shareholders are able to invest between $1,000 and $30,000

• Open to shareholders in Australia, New Zealand, Hong Kong, United Kingdom and USA

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• Directors and management who are eligible, intend to participate in the Plan

Simble Capital Raising: In Context

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Recent capital raising and planning

• Company has invested heavily since IPO in market business development and R&D

• This has necessitated several funding rounds while revenue opportunities have progressed

• Board identified capital requirements in Q3 2019 to retire historic debt and fund turnaround plan

• Placement of $1.1m announced in November 2019

• Placement of $0.28m and intended rights issue announced in December 2019

• Rights issue replaced by SPP due to cost and timing concerns

• Opportunity for all existing shareholders:

• to support the Company

• to acquire sizeable parcels at current market valuation

SPP use of funds – a key component of the turnaround

• Retire legacy liabilities by June 2020 to ensure single point of focus on reducing operating cash burn

• Support focused sales execution and initiatives to increase revenue

Simble: What We Do

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WHAT WE DO:

DOMESTIC

Energy software solutions available as entry-level applications or as premium hardware bundles supporting live data collection for energy consumers. Allows businesses to understand their usage and reduce energy consumption remotely using IoT technology.

KEY FEATURES:

Circuit Level Monitoring | Data Analytics | Monitor & Control Measure & Verify | Multi Site Comparison | Reporting

SME

LARGE | INDUSTRIAL | MULTISITE

ENTERPRISE

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SIMBLE HOME+ DCC APP

Residential Energy App, connects to smart meters as well as energy submeters

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SIMBLE CONNECT

Business Energy App, entry-level solution

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SIMBLE SENSE + IoT

Business Energy Platform, Feature-rich with hardware

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3-year CAGR customer CARBON VIEW growth of 200%+ Carbon Accounting & Management Platform for business

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Simble: Where We Operate

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SIMBLE ENERGY

Commercial & residential energy management software solutions

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AUS

Targeting energy suppliers, LED Lighting companies and energy service providers to offer the solution to their SME & enterprise customers

Strategic partnership with Wattwatchers to offer “bundled” hardware & software solution

ARENA Project to launch in March 2020

Over 500 active Wattwatchers meters installed with SimbleSense

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UK

Focused on LED Lighting companies and energy service providers

Over 100 active Wattwatchers meters installed with SimbleSense

Strategic partnerships with Powercor, UCR Consultants, G.A. Harpers & Utiligroup

Delayed Rollout of Smart Meters has meant a reduction of focus on DCC App model

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Turnaround Plan: Initiatives to meet the challenge

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Recent delays in expected revenues coupled with high fixed costs have been addressed by:

Refocused revenue generation

• Focus on growing the revenue streams in Australia

• Focus on maximising existing revenue sources in the UK

• Prudent financial management while the pipeline of opportunities are converted

Operational realignments

• Implement low cost business development measures

• Non-core asset sales being considered

Substantial cost cutting

• Ongoing cost management

• Minimise corporate overhead

• Operating burn at substantially lower levels than 12 months ago

Turnaround Plan Objective: Cashflow Break-even

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• Significantly reduce cash overhead cost base of company (incl R&D) to $0.5m per quarter from mid-2020

• This aligns cost base with existing revenues (FY19 revenue guidance of $2.2m to $2.4m unaudited)

• On-track for cashflow break-even with execution of current pipeline opportunities

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Growth Plan: Immediate Opportunities

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Improvement in Sales Pipeline and conversion of customers

• ARENA Project participation raises profile of Simble’s capability in the Residential market and validates Simble’s value proposition in partnership with Wattwatchers

• Expanding rollout with existing Australian partners such as Energy and Carbon Solutions whose customers now include :

• Harvey Norman, Downer, Souths Juniors, Pepe’s Ducks, ..

• Expanding rollout with existing UK partners:

• Powercor whose customers include :

  • Ferrero Rocher, Thornton’s, London Transport – RATP Dev

• G A Harper whose customers include :

  • BlueWater Shopping Centre

• Developing partnership in UK with Sylvania Lighting which could become a significant “Take to Market” Partner for the SimbleSense Platform in UK

• Other developing partnerships yet to be announced in Australia

Growth Plan: The Medium Term

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Continue to grow AU market

Further focus on revenue generating opportunities on the profitable Simble Energy suites in commercial and domestic markets including the CarbonView solution

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Support key partners in UK

Leverage existing partnerships In the UK to achieve scalable revenue growth in markets ready for our solutions. LED Lighting Partners are successfully targeting their C&I clients and continue to deliver profitable revenue

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Continue to operate a lean structure

Focus on the most profitable partnerships to unlock value and fuel customer demand. Maintain rigour on lean operating model while growing the top line in key segments

Achieve positive cashflow status

Through a combination of top line growth and the lean operating model, Simble will become a sustainable cashflow positive SAAS business with a brighter future

The Macro Environment: Highly Favourable

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SPP: Why Participate?

Macro environment is in our favour

• Energy efficiency and energy management are key topics for 2020 and beyond

• Growing need for understanding and interpreting Energy and IoT data.

• Businesses are launching their Carbon Zero journeys

• Climate change focus and regulatory response – doing nothing is no longer acceptable

• Energy Intelligence is the currency of the future

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Our competitive advantage

• World class software, built to scale on Amazon Web Services

• 28M+ data points processed per day and counting

• Validation by local and global partnerships in the energy and LED lighting sectors

• ARENA, Wattwatchers and UCR Consultants

• Signify, Sylvania Lighting, Powercor and G A Harper

• Strong customer base ensures growing recurring revenues

• Very lean cost structure moving forward

• Global market opportunities still in sight

• Least demanding valuation vs other ASX peers

Disclaimer

This presentation has been prepared by Simble Solutions Limited A.C.N. 608 419 656 ( Simble ). This presentation is of a general nature and does not purport to be complete, nor does it contain all of the information which would be required in a prospectus prepared in accordance with the requirements of the Corporations Act 2001 (Cth) ( Corporations Act ). It contains summary information about Simble and its activities and should be read in conjunction with Simble's other periodic disclosure announcements to the ASX, which are available at www.asx.com.au.

No representation or warranty, express or implied, is provided by any person (including Simble, its related bodies corporate and affiliates, and the officers, employees, advisers and agents of the foregoing) in relation to the accuracy, reliability or completeness of any statements, estimates or opinions, conclusions or other information provided in this presentation. Statements in this presentation are made only as of the date of this presentation unless otherwise stated and the information in this presentation remains subject to change without notice. Subject to its obligations under applicable law, Simble is not responsible for updating, nor undertakes to update, this presentation.

The information contained in this presentation is prepared solely for informational purposes only. This presentation does not constitute an offer to sell, or the solicitation of an offer to buy, any securities in Simble.

This presentation contains summary information about Simble and its activities, which is current as at the date of this presentation. The information included in this presentation is of a general nature and does not purport to be complete nor does it contain all the information which you should consider when making an investment decision. Each recipient of this presentation should make its own enquiries and investigations regarding all information in this presentation including but not limited to the assumptions, uncertainties and contingencies which may affect future operations of Simble and the impact that different future outcomes may have on Simble. This presentation has been prepared without taking account of any person’s investment objectives, financial situation or particular needs. Before making an investment decision, you should consider the appropriateness of the information having regard to their own objectives, financial situation and needs, make their own assessment of the information and seek legal, financial, accounting and taxation advice appropriate to their jurisdiction in relation to the information and any action taken on the basis of the information.

Forward looking statements

This presentation includes forward-looking statements that reflect Simble's intentions, beliefs or current expectations concerning, among other things, Simble's results of operations, financial condition, performance, prospects, growth, strategies and the industry in which Simble operates. These forward-looking statements are subject to risks, uncertainties and assumptions and other factors, many of which are beyond the control of Simble. Simble cautions you that forward-looking statements are not guarantees of future performance and that its actual results of operations, financial condition, performance, prospects, growth or opportunities and the development of the industry in which Simble operates may differ materially from those made in or suggested by the forward-looking statements contained in this presentation. In addition, Simble does not guarantee any particular rate of return or the performance of Simble nor does it guarantee the repayment or maintenance of capital or any particular tax treatment. Investors should note that past performance may not be indicative of results or developments in future periods and cannot be relied upon as an indicator of (and provides no guidance as to) Simble's future performance. Simble, its related bodies corporate and each of their respective directors, officers and employees and advisers expressly disclaim any obligation or undertaking to review, update or release any update of or revisions to any forward-looking statements in this presentation or any change in Simble's expectations or any change in events, conditions or circumstances on which these forward-looking statements are based, except as required by applicable law or regulation. This presentation and any materials distributed in connection with this presentation are not directed to, or intended for distribution to or use by, any person or entity that is a citizen or resident or located in any locality, state, country or other jurisdiction where such distribution, publication, availability or use would be contrary to law or regulation or which would require any registration or licensing within such jurisdiction.

The distribution of this presentation in certain jurisdictions may be restricted by law and persons into whose possession this presentation comes should inform themselves about, and observe any such restrictions.

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CONTACT: Ronen Ghosh Chief Executive Officer M: +61 408 505 483 E: ronen@simble.Io www.simble.io