SPECTUR LIMITED — AGM Information 2020

Oct 26, 2020

Spectur Limited (ASX:SP3) | October 2020

Agenda

• 1. Welcome to the Annual General Meeting of Spectur and Introduction
• 2. Open Polling
• 3. Table proxy results received
• 4. Resolutions:
  • Resolution 1: Adoption of Remuneration Report
  • Resolution 2: Re-election of Director Mr Darren Cooper
  • Resolution 3: Grant of MD Performance Rights to Related Party Mr Gerard Dyson
  • Resolution 4: Approval to Grant Lead Manager Options to Alto Capital
  • Resolution 5: Approval to Issue Shares to a Director in lieu of fees Mr Darren Cooper
  • Resolution 6: Approval to Issue Shares to a Director in lieu of fees Mrs Bilyana Smith
• 5. Questions on the resolutions
  • Open floor and online meeting for questions
• 6. 2-minute time period for final votes – and poll closure
• 7. Close formal meeting and advise timing of final votes
• 8. Spectur AGM presentation
• 9. Questions on the AGM presentation and Spectur business
• 10. Close meeting

Registration and Voting

1. Log in or register at: https://investor.automic.com.au/#/home

2. Click view and register your attendance for the meeting

3. Record your vote. Once you confirm it is lodged and final

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SPECTUR Annual General Meeting Company Presentation

Spectur Limited (ASX:SP3) | October 2020

20

Executive Summary

• 1. Spectur is executing on its strategy to deliver sales growth into a large addressable market
• 2. Results have been impacted in the last 3 quarters by COVID, but recovering with lockdown removals

3. Positive progress:

• STA6 platform well received by market
• NZ reseller accelerating
• Strengthened sales team
• Larger project wins in Q1 FY2021

4. Expectations for the year ahead

• Outbound sales increase
• Expanded production
• Expanded reseller network
• Product feature expansion (STA6)
• More projects with larger order sizes
• M&A investigation
• 5. Our vision is to develop into a $20m revenue, profitable growth company by FY2023

Our Vision

To harness the power of natural resources to make autonomous sensing, thinking and action available anywhere, anytime.

Our Mission

By 2023 we will be market leaders (in Australia and New Zealand) in solutions and platforms using solar power, visual AI and IoT. We will build, maintain and extend our leading position through:

• Premier customer service and product offering;
• Ongoing research, development and improvement of our integrated hardware, systems and services focused on solving our customers' problems;
• Expansion of our product offering, customer and geographic coverage.

Our Values

Integrity

Honest, respectful and accountable with our customers, community and amongst ourselves

Customer focus

We put our customers needs first

Innovation

We continually seek ways to improve our products, solutions and business

Excellence

We are high performers and leaders as individuals and corporately.

Team

We help each other across boundaries and care about our wellbeing.

Spectur

Solving outdoor challenges using autonomous sensing, thinking and action.

Two major sectors

• Government, utilities and institutional
• Building and construction

Australia and New Zealand

• Presence in four states and growing
• Expanding reseller network in other geographies

Solutions for high value problems

• Deterrence of crime
• Surveillance to improve productivity
• Warnings to protect communities
• Timelapse for marketing and management
• More coming…

Spectur "Uniques"

• Care about solving customer problems and providing a solution
• Ability to provide desired features
• Looks professional, works great, easy to use
• We remove the commercial barriers to accessing the solution

Spectur DNA

• Industrial company, with a technology heart
• Design, build, deploy and support hardware and software

The Spectur "Fog"

Smarter systems using cloud and

Capital Structure

Key Metrics as at 21 October 2020
Share Trading Information
ASX code	SP3
Listed on ASX	01/08/2017
Current share price	$0.057
Market cap	$6.0m
52 week closing high	$0.115
52 week closing low	$0.041
Capital Structure
Shares on issue	105.9m
Options –Listed (exercisable at $0.20, 31 December 2020)	11.1m
Options –Unlisted (exercisable at $0.20, 31 December 2020)	9.2m
Options (exercisable at $0.37, on or before 31 December 2020)	150k
Options (exercisable at $0.50, on or before 31 December 2020)	2.0m
Performance Rights on issue	2.1m

Share Register
Top 20 shareholders	35.4%
% of register owned by Board & KMPs	3.75%
Top Shareholders (as at 21 October 2020)
Richard Wilkins (Founder)	4.4%
National Nominees Ltd	3.8%
D & G Amarakoon<duroSuper Fund></duro	2.5%
Robbie Hunt Pty Ltd	2.3%
DRP 2006 Super	2.0%
Dr MalakaAmeratunga	1.9%
Darren Cooper (Non-Executive Chairman)	1.8%
Stow Court Pty Ltd <rm &="" a="" bolton="" c="" f="" jp="" s="">	1.5%
Gerard Dyson (Managing Director)	1.4%
OldviewEnterprises Pty Ltd	1.3%
Equitable Investors Dragonfly Fund	1.3%

Market

Security system installation and monitoring in Australia

Current market size $1.9bn, 32% hardware, 40% labour

Projected 2.4% annual growth to 2025

"…new security technology anticipated to drive some of this growth"

Prone to technology change impact to reduce staffing (wage) requirements (very likely to be disrupted).

Perception of criminal activity remains high and increased reporting within the media drives demand

Key external drivers 2015 to 2020

Demand from nonresidential building construction

Growth expected with government stimulus.

Level of criminal activity

Reversal of negative trend expected due to rising unemployment and economic contraction

Dwelling commencements Number of businesses

Population aged 50 and over

Growth expected with government stimulus

*Source: IBIS World, May 2020, Security System Installation and Monitoring in Australia

Market

Growth also in other core solution offerings

In recent research*

• Queensland alone:
  • 48,000 attempted break-ins every year
  • 20% of Australian homes are burgled
  • Barking dogs deter 2/3 of would-be criminals…
• 10 years ago you would be paying $10 or $15k for a basic camera
• We have a better solution at a price the market can afford.

Similarly, growth in warning systems continues+

• New technology to sense hazards, make good decisions (think) and warn (act)
• This is still nascent…

*Source: Channel 7News reporting, dated 19 October, 2020 +Source: GWN7 Local news reporting, dated 16 October, 2020 See www.spectur.com.au/newsroom/ for details

Spectur Potential

• Target market size for our current Australian focus in security is conservatively assessed to be > $100m and growing
• Adding in:
  • warning, general surveillance and time-lapse
  • New Zealand
  • Expansions into other sensing and visual AI applications…

…means local market dominance starts at >$50m in Australia and New Zealand alone.

Results

COVID-19

• Most COVID-impacted states have had greatest decline (Victoria, NSW)
• Rental and hardware Sales revenue has had greatest impact
• Resilient recurring and field services rental streams
• When states come out of lockdown, those markets should improve
• Despite FY20 challenges, Spectur developed future platform, had two positive cash quarters, substantial improved EBITDA, Revenue = FY19 and strong Net Promoter Score

Positive steps

FY2021 outcomes so far

• STA6 launched, superb performance
  • Image quality and up to 360-degree field of vision
  • Long range intruder detection in zero light
  • AI facilitated false alarm reduction
  • Integrates into 3rd party (ONVIF) software
  • More features coming
  • Looks great
  • (Demand outstrips supply)
• Outbound sales re-launch (Re-capture lost momentum, $590k of rental biased sales in October alone)
• Sales team growth concluded (ready and sized for $20m revenue)
• Planning to launch Spectur NZ joint venture with Deus Ex in NZ. (More revenue, low cost new country entry)
• Website and digital marketing reborn (improved / increased leads)
• Advanced stages of recruiting for an additional NED strengthening the Board

This year

FY2021 Goals and milestones

4

Revenue growth from:

• Market recovery (particularly Victoria / NSW)
• Expansion with resellers (including Spectur NZ)
• Availability of STA6
• Outbound sales performance
• New website and enhanced marketing
• More projects with larger order size

New features that drive increased demand 1 2 3

• Fog AI (better / faster / cheaper)

• Push to talk and full 4K video

• Expanded sensing

• HD5 replacement

• Others...

• Investigation of strategic acquisitions (accretive, synergistic)

• Update of foundational systems and processes to suit growing operations

• Growth in government and utilities sector 5

The future

Dominant premium brand in solar solutions for building and construction / government and utilities (>40% market share)

1

Additional solutions (security <50% of business)

2

Government and utilities sector is largest portion of the business

4

FY2023 Goals

3 Sensing (outside of vision) is >25% of business

Additional sector / geography is greater than 15% of business

5

>$20m revenue, generating net profit and cash

6

Spectur Limited (ASX:SP3) | October 2020 | Page 19

Contact Details

Investor enquiries Spectur Limited (ASX:SP3)

Gerard Dyson

Managing Director investors@spectur.com.au

Spectur Limited (ASX:SP3) | October 2020 | Page 20