SIMBLE SOLUTIONS LIMITED — Interim / Quarterly Report 2019

Oct 30, 2019

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ASX ANNOUNCEMENT

31 October 2019

September 2019 Quarterly Report and Business Update

Simble Solutions Limited (ASX:SIS) ( Simble or the Company ) an Australian software company focused on energy Software-as-a-Service ( SaaS ) solutions, is pleased to present its consolidated quarterly cash flow report and business update for the quarter ended 30 September 2019 ( September Quarter or Q3 FY19 ).

Financial Highlights for the September Quarter

• Cash inflows from operating activities for the September Quarter of $0.36 million compared to revenues of $0.54 million (revenues up 38% on pcp, unaudited)

• Year-to-date cash inflows from operating activities of $1.57 million compared to yearto-date revenues of $2 million (revenues up 14% on pcp, unaudited)

• Net cash used in operating activities for the September Quarter of $0.59 million, compared to $0.53 million in pcp (September 2018 Quarter)

• The September Quarter saw delays in cash collections due to longer than expected sales cycles and timing of payments. Cash collections in Q4 will be higher than in the current quarter.

Operational Highlights for the September Quarter

• While immediate sales activity was weak during this quarter Simble has continued to focus on expanding the depth and size of the Company’s channel partner network and advanced commercial discussions with a number of key parties in the UK energy market, and new revenue opportunities in Australia

• Early in the quarter, Simble was awarded a five-year SaaS contract from Powercor to provide energy software to a leading UK Confectionery Manufacturer.

• In Australia, Wattwatchers, manufacturer of energy meters, executed a Reseller Agreement to market Simble’s software capabilities to new and existing customers. Under the terms of the agreement, Simble will be Wattwatchers’ preferred energy management supplier in Australia as well as for its expanding presence in the UK. Wattwatchers will own-brand Simble’s mobile applications and dashboards – in IoS and Android versions - supported by the SimbleSense cloud platform and virtual analytics capabilities - for consumer-led energy management in homes and small-tomedium sized enterprises (SMEs).

Simble Solutions Limited (ASX:SIS) ABN: 17 608 419 656 Level 2, 383 George Street

Sydney 2000

P +61 2 8208 3366 E hello@simble.io

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Board Commentary

The Board is highly active in assessing all operational aspects of the business and is in the process of implementing financial and capital management restructuring initiatives, including a combination of revenue generation activities, operational realignments and substantial cost cutting measures. These initiatives are designed to increase revenues, reduce operating cash burn and restore shareholder value.

ENDS

For more information please contact:

Investor enquiries

Boardroom Pty Ltd cosec@simble.io +61 3 8622 3355

Analyst and media enquiries IR & Communication ir@simble.io +61 2 8208 3366

About Simble

Simble Solutions (ASX:SIS) is an Australian software company focused on energy management and Internet of Things 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 and residential 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) and Da Nang (Vietnam). More information: www.simblegroup.com

Simble Solutions Limited (ASX:SIS) ABN: 17 608 419 656 Level 2, 383 George Street Sydney 2000

P +61 2 8208 3366 E hello@simble.io

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

Simble Solutions Limited

ABN 17 608 419 656

Quarter ended (“current quarter”)

30 September 2019

Consolidated statement of cash flows	Current quarter $A’000	Year to date (9 months) $A’000
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) marketplace and channel expansion (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 Research and development tax offset recovered 1.8 Other (provide details if material) Payments for prior year operating costs (i) marketplace and channel expansion (ii) staff costs (iii) administration and corporate costs 1.9 Net cash from / (used in) operating activities	293 - (260) (170) - (153) (366) - - - - 70 - - - -	1,468 - (865) (615) - (493) (942) - - - - 101 - - - -
	(586)	(1,347)

• 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	Current quarter $A’000	Year to date (9 months) $A’000
2. Cash flows from investing activities 2.1 Payments to acquire: (a) property, plant and equipment (b) businesses (see item 10) (c) investments (d) Payments for software development, net of research and development tax offsets (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	- - - - (640) - - - - - - - - - -	- - - - (1,527) - - - - - - - - - -
	(640)	(1,527)
3. Cash flows from financing activities 3.1 Proceeds from issues of shares 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	1,709 - - - - (119) (1) - -	1,709 1,162 - - - (119) (55) - -
	1,590	2,697

• 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	Current quarter $A’000	Year to date (9 months) $A’000
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 4.2 Net cash from / (used in) operating activities (item 1.9 above) 4.3 Net cash from / (used in) investing activities (item 2.6 above) 4.4 Net cash from / (used in) financing activities (item 3.10 above) 4.5 Effect of movement in exchange rates on cash held 4.6 Cash and cash equivalents at end of quarter	410 (586) (640) 1,590 -	951 (1,347) (1,527) 2,697 -
	774	774
5. Reconciliation of cash and cash equivalents at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts	Current quarter $A’000	Previous quarter $A’000
5.1 Bank balances 5.2 Call deposits 5.3 Bank overdrafts 5.4 Securities on deposit 5.5 Cash and cash equivalents at end of quarter (should equal item 4.6 above)	700 51 - 23	316 51 - 43
	774	410
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 22 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
		Current quarter $A'000
		22
		-

• 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

7.	Payments to related entities of the entity and their	Current quarter
	associates	$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

	8. Financing facilities available Add notes as necessary for an understanding of the position Total facility amount at quarter end $A’000 Amount drawn at quarter end $A’000 8.1 Loan facilities 260 260 8.2 Credit standby arrangements 8.3 Trade Finance 200 0 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.	Total facility amount at quarter end $A’000	Amount drawn at quarter end $A’000
		260	260
		200	0
Trade Finance facility to allow purchase of hardware for resale to meet increasing demand, and thereby managing payment cycle of creditors and then subsequent receipt of receivables. Lender: FIFO Capital. 2.65% per Month. Unsecured.

Trade Finance facility to allow purchase of hardware for resale to meet increasing demand, and thereby managing payment cycle of creditors and then subsequent receipt of receivables. Lender: FIFO Capital. 2.65% per Month. Unsecured.

9. Estimated cash outflows for next quarter	$A’000
9.1 Software development, net of research and development tax offsets 9.2 Product manufacturing and operating costs 9.3 Channel Enablement & Marketing 9.4 Interest on Convertible Notes 9.5 Staff costs 9.6 Administration and corporate costs 9.7 Other (Retirement of prior liabilities) 9.8 Total estimated cash outflows	497 164 157 0 133 284 513
	1,748

• 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

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

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.

31 October 2019 Sign here: ............................................................ Date: ............................................. (Company secretary)

Hasaka Martin Print name: .........................................................

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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