SIMBLE SOLUTIONS LIMITED — Interim / Quarterly Report 2018

Jul 31, 2018

==> picture [47 x 66] intentionally omitted <==

ASX ANNOUNCEMENT

1 August 2018

June 2018 Quarterly Report and Business Update

Simble Solutions Limited (ASX:SIS) ( Simble or the Company ), an Australian software company focused on energy management and mobility SaaS solutions, is pleased to present its consolidated quarterly cash flow report and business update for the quarter ended 30 June 2018.

Highlights

• Simble continued to accelerate growth in site installations for the Simble Energy Platform during the quarter with channel partner agreements signed with Optus, Powercor UK and Synnex

• Initial material orders from UK and Australian partners totalling $660,000

• Cash inflows expected from the Simble Energy Platform, Mobility business, and R&D rebates in the September Quarter, have the Company on track to be cashflow neutral

• Sales pipeline continues to grow through new opportunities and further penetration within existing partnerships

• Discussions advanced with potential partner UK utilities to drive mass adoption in that market where mandated deployment of 53 million smart meters expected by 2020

Business Update

Simble – the ASX’s fastest growing energy SaaS company – is accelerating growth in site installations for the Simble Energy Platform. During the quarter, the Company attracted its first large scale partners – Optus, Powercor UK, and Synnex – thus delivering a key prospectus objective and laying a strong foundation for H2 CY18.

In the UK, a technology bundling arrangement was secured alongside one of the world’s largest lighting manufacturers as part of a channel partnership with Powercor Ltd. This arrangement represents Simble’s first success in the UK market, which is witnessing legislative driven demand for energy management solutions due to the UK Government’s smart meter rollout.

The Powercor partnership is a validation of Simble’s value proposition and management’s ability to deliver key business objects. The Company’s UK expansion is to be accelerated via a technology collaboration with Accel-KKR backed Utiligroup. which is supporting a major product launch planned for Q3.

• 1 -

==> picture [47 x 66] intentionally omitted <==

Subsequent to quarter’s end, the Company received its first material orders for the Simble Energy Platform from recently announced large-scale partners in Australia and the UK. Initial orders represent a cumulative value of $660,000 (cash to be received in Q3).

The sales pipeline continues to grow as existing partnerships mature and new partners are introduced. In that regard, partnership discussions are advanced with UK utilities industry participants targeting the broader UK SME sector. Whilst there is no guarantee these discussions will evolve into definitive agreements, Simble will keep the market updated if and when this does occur.

In the nascent stages of these partnerships, demand for the Simble Energy Platform has been overwhelming. Installations completed for a selection of new blue-chip users including:

• Ferrero Rocher

• Roehampton University

• Richmond Borough Council

• Caltex

Year to date, installations of the Simble Energy Platform have increased more than 70% even before commencement of major marketing campaigns. Growth is expected to accelerate as new large-scale partnerships ‘ramp up’.

==> picture [381 x 209] intentionally omitted <==

Technology and Products

Simble has entered into a technology collaboration with Utiligroup, a UK based supplier of enterprise Software as a Service ( SaaS ) to utilities. Owned by Accel-KKR, Utiligroup has over 30 energy suppliers using its industry focused customer, operational and financial management solutions. For over 15 years, Accel-KKR has been investing in mid-market software and technology enabled services firms with $4B in committed capital across its buyout and growth capital funds.

• 2 -

==> picture [47 x 66] intentionally omitted <==

Utiligroup’s collaboration with Simble is designed to support the next generation of energy management solutions made possible by the UK Government’s smart meter rollout. It is accelerating an upgrade of the Simble Energy Platform that will introduce the ‘Virtual Analytics’ module outlined in the Company’s technology roadmap[1] .

Virtual Analytics represents a disruptive enhancement to the Simble Energy Platform, delivering energy analytics to users without the requirement for additional onsite hardware installation. It is a potential gateway to mass market penetration of the Simble Energy Platform and is expected to generate recurring license and SaaS revenue.

A formal launch of the Simble Energy Platform’s Virtual Analytics module is anticipated Q3 2018. Initial marketing is targeting utilities in the UK, and discussions with potential foundation customers are advanced.

Consolidated Cash Flows

The June quarter represented a period of accelerated investment for Simble, with the Company principally focused on building its channel partnership network to support commercialisation of the Simble Energy Platform. Resulting partnerships announced over recent months – including Optus, Powercor UK, and Synnex – are expected to deliver first material cash receipts associated with the Simble Energy Platform during the September quarter, and are hence not reflected in this report.

During the June quarter, customer receipts totalled $0.48 million, which was principally driven by Simble’s existing mobility software business. Simble anticipates an improvement in customer receipts during the September quarter, driven by both its mobility software business and the Simble Energy Platform. The Simble Energy Platform represents a new cash flow stream for the Company, anticipated to make its first material contribution in the September quarter.

Gross outflows during the June quarter totalled $2.50 million, a 38% reduction compared with the March quarter which was impacted by significant “non-recurring” balance sheet and transaction costs associated with the Company’s IPO.

Gross outflows during the June quarter included further “non-recurring” IPO expenses, convertible note interest, and other working capital items relating to prior year operations totalling $0.70 million. These are now resolved and the Company is on track to deliver a material improvement in cash flow from Q3.

On a normalised basis, net outflows were $1.32 million during the June quarter. This includes a $0.62 million investment in further Research and Development to drive product innovation. End of quarter cash reserves were $1.4million.

During the September quarter, cash inflows expected from the Simble Energy Platform, the Mobility business, and R&D rebates, have the Company on track to be cashflow neutral. Gross outgoings are forecast to decline more than 25% as legacy balance sheet and transaction costs are now largely resolved. The forecast outflow of $1.77 million represents approximately $1.55 million in fixed corporate overhead, and $0.22 million in variable product manufacturing related costs.

1 Refer to July 23rd ASX filing “Investor Presentation”

• 3 -

==> picture [47 x 66] intentionally omitted <==

==> picture [452 x 254] intentionally omitted <==

----- Start of picture text -----

“Non recurring”
outflows $0.7m “Normalised”
net outflows $1.32m
----- End of picture text -----

ENDS

For more information please contact:

Tharun Kuppanda Company Secretary +61 2 8016 2875 cosec@simble.io

About Simble

Simble Solutions (ASX:SIS) is an Australian software company focused on energy management and mobility solutions. The Simble Energy Platform or ‘SimbleSense’ is an integrated hardware and real-time software solution that enables businesses to visualise, control and monetise their energy systems. The Company’s Software as a Service (SaaS) platform has Internet of Things (IoT) capabilities and empowers enterprises and consumers to remotely automate energy savings opportunities to reduce their energy bill. Simble operates in the SME SaaS market and targets the distribution of its platform through channel partners. Simble has an international presence with offices in Sydney and Melbourne (Australia), London (UK), Auckland (New Zealand) and Da Nang (Vietnam).

• 4 -