SPACETALK LTD — Investor Presentation 2023

Aug 27, 2023

Capturing the mobile technology opportunity at every stage of life

Spacetalk Limited (ASX:SPA) Investor Presentation Capital Raise

August 2023

spacetalk.co

Spacetalk has achieved rapid transformation, and the pace of change continues to accelerate.

Rapid transformation and an exciting future for Spacetalk

Simon Crowther, CEO & MD

Our goal is to be the most trusted provider of family safety and security at every stage of life.

To achieve this, we are rapidly transforming Spacetalk into a software and MNVO subscription business, with a relentless focus on disciplined delivery of our strategy and the launch of new subscription products that engage whole families and increase our customer lifetime value.

We are focused on achieving sustainable profitability within H2FY24, which in turn will set us up for controlled overseas expansion. This capital raise will support the business to reach this objective.

I am excited about Spacetalk's growth potential and look forward to sharing our success in the future.

Simon is a serial entrepreneur and CEO with 20 years of commercial success rooted in the technology sector. Simon had his first profitable exit in 2000 which paved the way for increased leadership roles and exits in subsequent years.

Simon was CEO with AirMap, Managing Director with Yamaha Motor Ventures & Laboratory Silicon Valley and CEO of Nearmap (ASX:NEA) which he led as a public company and built into a leading geospatial and AI data business with a $1billion plus market cap.

Simon is an active angel investor and Advisor with MaRS, North America's largest urban innovation hub.

Transformation

CEO and leadership have transformed Spacetalk within six months

February 2023

Spacetalk was a consumer electronics hardware business

Spacetalk is a wearables enabled software subscription and Mobile Virtual Network

Targeting $20m-$25m

ARR business within 3 years

S ' family safety technology business on a page

One Theme:

1. Family Safety 1. Freedom

Two Emotional Experiences:

• 1. Peace of Mind

Three Product Sets:

• 1. Wearable Hardware & Companion Apps
• 1. Mobile Connection (MVNO Plans)
• 1. Schools Messaging Suite

Four Customer Segments:

• 1. Schools and Educators
• 1. Young Families
• 1. Seniors and Vulnerable Families
• 1. Employers and Workers

Five Established Revenue Streams:

• 1. Hardware Sales
• 1. MVNO Subscriptions
• 1. App Subscriptions
• 1. Software Subscriptions (SaaS)
• 1. SMS Subscriptions

We continue to focus on Product Ecosystem innovation

spacetalk.co

Capital raise

Seeking to raise $2.7 million investment to fund growth

September 2023 $2.7m

$0.022 per share

Working Capital

› Sufficient to achieve sustainable positive cash flow from H2FY24

Growth Strategy Delivery

• › Product: Launch Family MVNO Plans
• › Product: Launch Device Agnostic 'Family App'
• › Product: Launch New Schools<>Parents Messaging App
• › Product: Develop Family Database
• › Sales: Schools & Seniors Business Development

Significant ARR Growth

Spacetalk is focused on tripling ARR to $20-$25m within three years

Transformation

Turnaround continuing, with progress made and momentum accelerating Focus shifts from consumer electronics hardware to Software Subscription and Mobile Virtual Network Operator (MVNO) business initially in ANZ region with future international focus.

Operational reset

Business fundamentals reset, product ecosystem in development connects four customer segments at every stage of life

Annual Recurring revenue

Annual Recurring Revenue (ARR)at 30 June 2023 $8.3m with base growing to targeted $20m - $25m within three years (~3x increase on FY23)

Product opportunity

• › Focused on rapid digital and hardware product development
• › Established Spacetalk product ecosystem to meet life stage safety needs

Spacetalk Mobile MVNO opportunity

• › Targeting becoming a significant Mobile Virtual Network Operator (MVNO)
• › Spacetalk has attracted ~15,000 active subscribers in less than 12 months

Customer opportunity

• › Expanded customer focus to secure families as lifelong customers
• › Established network of schools and parents

The strategic turnaround plan is already yielding tangible results

• 30% growth in ARR from Q1 to Q4 of FY23
• Combined App & MVNO ARR growth of 50% over same period
• MVNO 31% of ARR in Q4 (Q1:NIL)
• The Group recorded strong 2H23 performance with normalised EBITDA of
• -$0.6m (1H23: -$2.4m), underpinned by the restructure that was completed in Q4/FY23.

Annual Recurring Revenue (ARR)

The strategic turnaround plan is already yielding tangible results

• 18% growth in total APP & MVNO subscribers from Oct 22 to June 23
• Dec 22 spike is seasonal due to Black Friday & Christmas sales
• Strong MVNO subscriber growth with compound monthly growth of 67%

Subscribers

The strategic turnaround plan is already yielding tangible results

• Shift from device revenue to recurring revenue
• Recurring revenue is 60% to total revenue in Q4 FY23 (Q4FY22: 55%).

Quarterly Revenue Mix

Strategy execution

Horizon 1

May – December 2023

	Capability	Sales	Products
Statedobjectives	›Hire key executives›Build specialist capabilityto deliver strategy›Do the basics well	›Increase Young Families sales, margins &lifetime value›Renewed focus on Schools & Educatorssegment›Activate Seniors & Vulnerable Familiessegment	›Adventurer 2 Watch›New 'Affordable' Watch›Family-focused mobile virtualnetwork operator (MVNO) service›Device agnostic mobile applicationproduct›Schools messaging platform
Progress &outcomes	›Hired specialists including, Head ofProduct; VP Engineering; Head ofBusiness Development –Schools;Growth Marketing Director and ProductMarketing Managers›Key business functions includingfinance, engineering, product andoperations completely reset	›Retailer sales margins reset with significantimprovement for Spacetalk›Major new retailer and 90 new retail sitesadded›Q4FY23 Revenue from continuingoperations increased 21% vs priorcorresponding period ("pcp") to $3.4m›Annual recurring revenue (ARR) increases33% vs pcp to $8.3m and 7% vs Q3›Dedicated business developmentresources hired to focus on Schools &Educators segment›New B2B channels under development forSeniors & Vulnerable Families Segment	›Adventurer 2 watch delivered›Loop 'Affordable' Watch planned forOctober 2023›New MVNO plans under negotiation -planned for November 2023›Further enabled Life watch plannedfor September 2023›Device agnostic 'Family App' plannedfor September 2023›New parent <> schoolcommunication app planned forSeptember 2023

Spacetalk product suite & market opportunity

Market opportunity

Addressing family safety needs

01. Schools and Educators

We want to easily communicate with parents, reduce admin burden but keep it cost effective and easy to use"

• › Duty of care to ensure students are present, and 'at risk' absence patterns are highlighted
• › Reduction in cost of admin effort of ~0.5 FTE per day
• › Increase in engagement between families and schools
• › Student wellbeing and access to education monitored and reported

02. Young Families

I want to keep my kids safe, but give them the freedom to grow and explore as well as safely use technology"

• › Fear of children not developing their independence or missing out
• › Freedom and time to do more as parents, and experience more as children
• › Peace of mind and ability to relax, knowing a child is safe without watching over them
• › Confidence that access to technology and connection with others is controlled

03. Seniors & Vulnerable Families

I want to remain independent, but ensure I am safe and keep in touch with my family to provide peace of mind to my loved ones"

• › Compliance for retirement living, where personal emergency systems are required
• › Reducing costs for 24/7 monitoring providers by triaging calls through personal emergency contacts before call centres
• › Aging in place for longer for seniors who are at risk, but are not yet ready to move
• › Peace of mind for seniors, families and carers that falls will be automatically alerted, SOS calls are one button press away, and location is shared instantly

04. Employers & Workers

I want to ensure the safety of my workers, particularly those most vulnerable or working alone"

• › Duty of care to ensure all employees have a safe work environment
• › Efficiency, utility and compliance through activity and location sharing by employees and/or contractors
• › Peace of mind for workers, employers and families that lone worker falls will be automatically alerted and SOS calls are one button press away

New products enable the execution of our strategy, increase customer retention and increase subscription revenue

Any smartphone can be paired with Spacetalk's new Family App and connected with new Spacetalk Mobile plans. Spacetalk's value proposition of freedom and peace of mind now lasts a lifetime.

February 2023

Closed App Smartwatch Restricted

companion app can only be paired with a Spacetalk watch

~18 months Customer Lifecycle

device lifespan to capture customer value before children outgrow watches and customers churn

One Off Hardware Sales Revenue

limited customer lifetime revenue from watch sales and small app fees over 18 months

Customer Lifetime Value Limited

September 2023

Open App Works With Any Phone

Family App can be paired with any smartphone, no watch required

Family Lifetime Engagement

Family App can be used with a child's first handme-down smartphone, until they leave home

Recurring Subscription Revenue

compounding revenue growth from Spacetalk Mobile plans for the whole family

Customer Lifetime Value Unlimited

New Value Created

Multi-Year Customer Engagement

value creation is no longer restricted to 18 months of watch usage

Whole of Family Value Proposition

hardware, app and mobile plans for younger children, older siblings, parents & grandparents

Family Database

customer database for life long engagement and sales

Spacetalk at the Centre Of Every Family, Every Day

Wearable hardware & companion apps

Hardware sales covert to Spacetalk Mobile subscribers at a high rate, meaning our MVNO customer acquisition cost is virtually zero.

Spacetalk products

work together as a value multiplying ecosystem

Customers are acquired

at very low cost directly & through hardware sales

Customers are retained

within a suite of subscription MVNO and software products

Adventurer Watch

4G smartwatch and GPS device full of safety features, making it the perfect first phone for kids.

Adventurer 2 Watch

Our newest 4G smartwatch. It has video calling, talk and text, GPS location tracking, school mode, emergency SOS, and tough Gorilla glass.

Life Watch

Updated September 2023

4G mobile phone watches that automatically detect falls, calls SOS contacts, provides GPS location data and connection to 24/7 monitoring providers.

Loop Watch

October 2023 Distraction free affordable 4G and GPS watch.

Companion App

The Spacetalk App connects to kids and seniors Spacetalk devices, enabling you to locate family members, communicate with them at any time.

Family App

September 2023 Device agnostic app that provides all the features of the companion app, for any device (no need for a Spacetalk watch).

Accessories

A range of new straps, charging docks and screen protectors.

spacetalk.co

Mobile and Schools

Mobile Connection

Mobile Virtual Network Operator (MVNO) plans

Mobile Virtual Network that operates on the Telstra Network and delivers a range of wearable device and family orientated mobile phone pre-paid plans. Rebranded from JumpySIM in August 2023.

New MVNO plans for whole family in November 2023.

Schools Messaging Suite

School attendance and parent message product suite, including analysis and reporting of attendance patterns that may indicate an at risk child. Rebranded from MGM Wireless in July 2023.

New School <> Parent communication app in September 2023.

spacetalk.co

Market opportunity

on track to achieve ARR of $20m - $25m in three years

	FY22	FY231	FY23/24Var
Revenue from continuing operations ($m)	14.8	13.4	-9%
Gross Profit from continuing operations ($m)	8.7	6.7	-23%
GP margin (%)	59%	50%	-8ppts
Normalised Cost to Income Ratio from continuing operations (%)	75%	74%	-1ppt
Annual Recurring Revenue ($m)	6.3	8.3	33%
Recurring Revenue Mix (%)	39%	54%	15ppts
Subscribers2	59,652	69,978	17%

1 Unaudited 2 App FY22: 59,652 (FY23:55,258); MVNO FY22: NIL (FY23: 14,720) Outlook

SPA is targeting FY24 revenue of $18m - $19m and ARR of $11m - $12m

Peer comparison

Spacetalk's ASX market benchmark is Life360 Inc (ASX:360).

Valued at $1.56 billion.

1

FY23/CY22 1

Annual Recurring Revenue (ARR)	$8.3M	$368.5M
Revenue from continuing operations	$13.4M	$351.2M
NormalisedContinuing OperationsEBITDA	($3.0M)	($60M)
	311,242,939 shares	200,494,311 shares
Enterprise Value	Price: $0.023	Price: $8.18
at 21stAugust 2023	$12.2M Ent Value	$1.65B Ent Value
	1.47x ARR	4.48x ARR
Young Families		Hardware Sales (Wearables)
Revenue Lines	App Subscriptions
Seniors and Vulnerable Families		Hardware Sales (Wearables)
Revenue Lines	App Subscriptions
Mobile Virtual Network	Launched November 202213,400 subscribers in 8 months
Schools and EducatorsSchools Messaging Suite

Revenue Growth

Reset strategy driving tangible operational results

Retail Sales

8% improvement in retailer & distributor terms in H2FY23

17% YoY increase in Q4 FY23 sales volumes

90 new distribution points added in FY24

300 new distribution points

in final negotiation across Australia and New Zealand for FY24

eComm Sales

142% of target for eComm sales in Q4FY23

Highest ROAS ever for Q4 of 8.6

Lowest CAC ever for Q4FY23 of $22

>25x Increase in Social Media marketing effectiveness in Q4FY23

. .

Spacetalk Mobile MVNO Subscribers

~15,000 active subscribers in 8 months

~12,500 active subscribers in Australia

~1,100 monthly customer acquisition (June 23 run rate)

Diversified revenue opportunity

Five established revenue streams, four customer segments, multiple channels

Revenue Streams &Products	CustomerSegment	RevenueType	Go To Market &Channels	FY231 $MActualRevenue[Gross Margin]
Hardware Sales:Childrens WearablesMobile Phone + GPS Watches	›Young Families›Seniors & VulnerableFamilies	One Off	B2B2CRetailers & TelcosB2CeComm	6.1[1.1][18%]
Hardware Sales:Seniors WearablesmPERSA Mobile Phone +GPS Watches	›Seniors & VulnerableFamiliesFuture: Employers & Workers	One Off	B2B2CRetailers, Telcos, NDIS Providers,24/7 MonitoringB2BEmployers, Retirement VillagesB2CeComm
Spacetalk MobileSubscription (MVNO):Mobile Virtual NetworkBUnaudited continuing operations	›Young Families›Seniors & VulnerableFamiliesFuture: Employers & Workers	RecurringSubscription RevenueMonthly, 6 Monthly,Annually	›SIM in box with watch orinstalled in watch›Activated online›Cross and upsellvia eComm	1.4[0.7][50%]

AmPERS – Mobile Emergency Response System – A 4G enabled mobile telephone and GPS watch with automatic fall detection and SOS calling that can be connected to 24/7 personal safety monitoring providers (call centers). BMVNO – Mobile Virtual Network Operator – A selection of wearable device and family orientated mobile phone pre-paid plans. MVNO exists on the Telstra Network. MVNO subscriptions are higher value, but lower margin than app fees.

Diversified revenue opportunity

Five established revenue streams, four customer segments, multiple channels

Revenue Streams &Products	CustomerSegment	RevenueType	Go To Market &Channels	FY231 $MActualRevenue[Gross Margin]
App Subscriptions:Mobile ApplicationC	›Young Families›Seniors & VulnerableFamilies	RecurringSubscription RevenueMonthly, Annually	›Google Play Store›Apple App Store›eComm	3.8[2.9][76%]
Software Subscriptions(SaaS):Schools Attendance andMessaging Product SuiteD	›Schools & Educators	Recurring SaaSSubscription RevenueAnnually	B2BDirect Sales	1.0[1.0][100%]
SMS Subscriptions:Schools Attendance andMessaging Product Suite	›Schools & Educators	Recurring PurchasesVolume Usage Dependent	B2BDirect Sales	1.1[1.0][91%]

1 Unaudited continuing operations

C Mobile Application Fees – If a customer uses our SIM card in a Childrens Wearable device or mobile phone we do not charge an app fee. For Seniors Wearables an app fee is always charged regardless of use of a Spacetalk SIM. As the number of MVNO subscriptions grows we will see app revenue decline. MVNO subscriptions are higher revenue and margin value, but lower % margin than app fees.

D Schools Attendance and Messaging Suite consists of: Digital kiosk for checking students in/out; Outreach+ web portal for writing, saving and sending messages to parents; School Star App for staff to send news and messages and Parents to access news feeds, and read and respond to messages. SMS bundles are purchased by schools and administered via the platform.

Funds deployment

Grow customer base, increase subscription revenue and customer lifetime value on strong foundation

Active Wearables Devices

~60,000 active devices globally

~42,000 active devices in Australia and NZ

Spacetalk App Subscribers

~55,500 paying app subscribers

4.6 star rating

2,400 ratings

150,000+ downloads

Spacetalk Mobile MVNO Subscribers

~15,000 active subscribers in 8 months

Launched November 2022

~12,500 active subscribers in Australia

Spacetalk Schools SaaS Subscribers

~930 Schools using SaaS product

~10% of all Australian Schools

~620,000 parents engaged monthly

~24,500,000 messages sent each year

spacetalk.co

Corporate overview & opportunity

A strong leadership team

Simon Crowther, CEO & MD Joined February 2023

Simon is a serial entrepreneur and CEO with 20 years of commercial success rooted in the technology sector. Simon had his first profitable exit in 2000 which paved the way for increased leadership roles and exits in subsequent years.

Simon was CEO with AirMap, Managing Director with Yamaha Motor Ventures & Laboratory Silicon Valley and CEO of Nearmap (ASX:NEA) which he led as a public company and built into a leading geospatial and AI data business with a $1billion plus market cap.

Simon is an active angel investor and Advisor with MaRS, North America's largest urban innovation hub.

Craig Boshier, COO Joined February 2023

Craig has over 15 years' experience working with digital first early-stage businesses across multiple sectors, in various roles within businesses, and externally as a consultant and venture investor.

Craig was previously COO with AirMap, Partner and General Manager with Yamaha Motor Ventures in Australia and New Zealand, and prior to that Partner and Managing Director with Boston Consulting Group Digital Ventures (BCG DV), where he led the design, build and launch of new digital ventures in Australia, India and South East Asia.

Craig is also an angel investor and actively volunteers as an advisor for a number of early stage businesses.

Tonderai Maenzanise, CFO Joined March 2023

Tonderai is an accomplished finance professional with over 24 years global experience in financial management and leadership roles. Tonderai is a Deloitte trained Chartered Accountant and gained global experience in Zimbabwe, USA, UK and Australia throughout the 9 years he spent with Deloitte.

Tonderai was previously CFO at Grays.com Ltd and RT Health Fund and has significant ASX experience, obtained during 7 years as FlexiGroup Ltd.'s Group Financial Controller and 3 years in senior leadership positions with Transfield Services Ltd.

Tonderai has expertise in strategic planning, IPO, transformation, financial reporting and operations in global companies, capital, liquidity and financial management, mergers and acquisitions, corporate governance, taxation, executive leadership, mentoring and coaching.

Experienced management team

Chris Neary, Chief Marketing & Digital Officer Joined March 2023

Chris has worked in advertising and digital agencies in strategy and creative roles, working on Fortune 100 brands. He has run marketing departments for large corporations, most notably Canada's incumbent telecommunications company Telus.

Over the last 10 years, Chris has been helping early-stage companies get to market and achieve unnatural growth through brand, marketing, and digital strategy. He has also been an owner-operator in multiple startups and is a respected member of an entrepreneurial community.

Chris is the Chairman of TEDx Vancouver and a board member of the Developmental Disabilities Association of BC.

Steve Fenton, Vice President Sales Joined April 2023

Steven Fenton is a dynamic and results-driven sales professional with a strong track record of exceeding targets and driving revenue growth.

With over 15 years of experience within the FMCG and consumer electronics industry working for global category leaders such as Diageo and Dyson Steven has developed a deep understanding of retailer needs and a talent for building long-lasting relationships.

Steven's exceptional communication and negotiation skills enable him to navigate complex sales situations whilst gaining mutually profitable outcomes. His strategic mindset and innovative approach to sales have consistently positioned him as a top performer in the industry.

Christine Storey, Head of People & Culture

Joined July 2023

Christine is a highly accomplished HR professional with extensive expertise in talent acquisition and management.

With a career spanning 15+ years, she has successfully guided organizations in attracting top-tier talent and fostering a culture of employee engagement and development. Christine's strategic mindset and exceptional communication skills enable her to build partnerships with stakeholders. Her deep understanding of HR best practices and compliance ensures organizations maintain a competitive edge while adhering to legal requirements.

Christine's passion for creating inclusive and high-performing teams has driven her to spearhead diversity and inclusion initiatives, promoting a workplace where every individual thrives.

Experienced management team

James Biddle, Head of Business Development, Schools

Joined July 2023

James has extensive sales and marketing experience in EdTech, consumer electronics and professional audio, having held the Sales Director role at both the Australian and US offices of RØDE Microphones, Global Sales & Marketing Director at ClickView, and running his own business in the US as the exclusive distributor of several Australian and British professional audio product lines.

Specific to the schools market, James achieved 95% market share in Australian high schools and 50% in Australian primary schools, won a 7-year contract with EduVic, negotiated long term contracts with the majority of Australia's catholic education offices, signed a multi-year deal with Education Scotland, launched ClickView in the US in partnership with Microsoft, and grew the domestic Australian business by 3 times over 7 years.

Peter Scott, Head of Product Joined June 2023

Peter has over 18 years' experience as a leader in product and strategy development.

Most recently Peter was the Chief Product and Technology Officer at Compono, a software development company that provides intelligent solutions to companies to hire, develop and engage their people.

Jamie Simonsen,

Vice President Engineering Joined July 2023

Jamie brings strong leadership, technical expertise, and innovation to drive excellence in engineering teams. He excels in leading teams to deliver advanced solutions within deadlines, with a focus on security excellence and adherence to industry standards.

Jamie's expertise lies in architecting messaging platforms and designing cutting-edge Real-Time Location Systems (RTLS) and IoT solutions. He has pioneered an Android-based 2-way paging system and have successfully delivered various tracking systems for high-risk environments.

Safety at every stage of life

Spacetalk Limited (ASX:SPA) Investor Presentation Capital Raise July 2023

Spacetalk (ASX:SPA) Simon Crowther CEO and Managing Director P: 1300 087 423

The Capital Network Julia Maguire P: +61 2 8999 3699 E: julia@thecapitalnetwork.com.au

Important legal information

This presentation has been prepared by Spacetalk Ltd. ("Spacetalk," or "Company," or "SPA").

This presentation:

• has been prepared in good faither and with reasonable care. Neither SPA nor any other person makes any representation or warranty, express or implied as to the accuracy, reliability, reasonableness or completeness of the contents of this presentation (including any projections, forecasts, estimates, prospects and returns), and any omissions from this presentation. To the maximum extension permitted by law, SPA and its respective officers, employees and advisers disclaim and exclude all liability for any loss or damage (whether or not foreseeable) suffered or incurred by any person acting on any information (including projections, forecasts, estimates, prospects and returns) provided in or , or omitted from, this presentation or any other written or oral information provided by or on behalf of SPA.
• is intended to be general background information only, and is not intended that it be relied and the information this presentation does not take into account your financial objectives, situations or needs. Investor should consult wither their own legal, tax, business and/or financial advisers in connect with any investment decision.
• should be read in conjunction with Spacetalk's financial reports and market releases on ASX.
• may include forward-looking statements about Spacetalk and the environment in which Spacetalk operates, which are subject to significant uncertainties and contingencies, many of which are outside the control of Spacetalk – as such undue reliance should not be placed on any forward-looking statements as actual results or performance may differ materially from these statements
• includes statements relating to past performance, which should not be regarded as a reliable guide to future performance.
• includes certain financial information which Spacetalk considers useful to assist in evaluating Spacetalk's performance, however, such information has not been subject to audit or review in accordance with Australian Auditing Standards.

All dollar values are in Australian dollars (A$) unless otherwise stated.