SPECTUR LIMITED — Investor Presentation 2020

Jul 8, 2020

SOLVING OUTDOOR CHALLENGES WITH AUTONOMOUS SENSING, THINKING AND ACTION

NOT FOR RELEASE OR WIRE SERVICE OR DISTRIBUTION IN THE UNITED STATES OF AMERICA SPECTUR LIMITED (ASX: SP3) EQUITY CAPITAL RAISING PRESENTATION

JULY 2020

The leader in solutions and platforms using solar power, visual AI and IoT

Important Notice and Disclaimer

IMPORTANT NOTICE

This equity investor presentation (Presentation) is dated 9 July 2020 and has been prepared by Spectur Limited (ACN 140 151 579) (SP3) and includes information regarding a placement (Placement) of new fully paid ordinary shares in SP3 (New Shares), which is to be followed by a security purchase plan of New Shares offered to all shareholders (SPP or Share Purchase Plan, and together with the Placement, the Offer or Capital Raising).

SUMMARY INFORMATION

The information contained in this Presentation is of a general nature and no representation or warranty, express or implied, is provided in relation to the accuracy or completeness of the information. None of SP3 and ACNS Capital Markets (ABN 93 088 503 208) (Lead Manager) or their respective affiliates, related bodies corporate (as that term is defined in the Corporations Act 2001 (Cth) (Corporations Act)), or their respective directors, employees, officers, representatives, agents, partners, consultants and advisers (together the Offer Parties) have authorised, permitted or caused the issue, submission, dispatch or provision of this Presentation and, except to the extent referred to in this Presentation, none of them makes or purports to make any statement in this Presentation and there is no statement in this Presentation which is based on any statement by any of them. 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. The historical information in this Presentation is, or is based upon, information that has been released to the market. It should be read in conjunction with SP3's other periodic and continuous disclosure announcements to ASX available at www.asx.com.au.

NOT AN OFFER

This Presentation is not a prospectus, disclosure document, product disclosure statement or other offering document under Australian law or under any other law. It is for information purposes only and is not an invitation nor offer of securities for subscription, purchase or sale in any jurisdiction. This Presentation does not constitute financial product advice and does not and will not form any part of any contract for the acquisition of New Shares. This Presentation does not purport to contain all the information that a prospective investor may require in evaluating a possible investment in SP3 nor does it contain all the information which would be required in a prospectus prepared in accordance with the requirements of the Corporations Act.

U.S. RESTRICTIONS

This document may not be released or distributed in the United States. This document does not constitute an offer to sell, or a solicitation of an offer to buy, any securities in the United States or any other jurisdiction in which such an offer would be illegal. The New Shares have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (Securities Act) or the securities laws of any state or other jurisdiction of the United States. Accordingly, the New Shares may not be offered or sold, directly or indirectly, to persons in the United States except in a transaction exempt from, or not subject to, the registration requirements of the Securities Act and the applicable securities laws of any state or other jurisdiction of the United States.

LEAD MANAGER PARTIES

The Lead Manager Parties and its affiliates, related bodies corporate and their respective directors, employees, officers, representatives, agents, partners, consultants and advisers (together the Lead Manager Parties) may, from time to time, hold interests in the securities of, or earn brokerage, fees or other benefits from SP3.

Important Notice and Disclaimer

NOT INVESTMENT ADVICE

This Presentation has been prepared without taking account of any person's investment objectives, financial situation or particular needs and prospective investors should conduct their own independent investigation and assessment of the Capital Raising and the information contained in, or referred to in, this Presentation. An investment in SP3 is subject to investment risk including possible loss of income and principal invested. Please see the 'Key Risks' Section of this Presentation for further details.

FUTURE PERFORMANCE

This Presentation contains certain 'forward looking statements'. Forward looking statements can generally be identified by the use of forward looking words such as 'anticipate', 'believe', 'expect', 'project', 'forecast', 'estimate', 'likely', 'intend', 'should', 'will', 'could', 'may', 'target', 'plan' and other similar expressions within the meaning of securities laws of applicable jurisdictions, and include statements regarding outcome and effects of the equity raising. Indications of, and guidance or outlook on future earnings, distributions or financial position or performance are also forward looking statements. The forward looking statements contained in this Presentation involve known and unknown risks and uncertainties and other factors, many of which are beyond the control of SP3 and the Lead Manager, and may involve significant elements of subjective judgement and assumptions as to future events which may or may not be correct. Refer to the 'Key Risks' section of this Presentation for a summary of certain risk factors that may affect SP3. The Lead Manager has not authorised, approved or verified any forward-looking statements. There can be no assurance that actual outcomes will not differ materially from these forward-looking statements.

FINANCIAL AMOUNTS

All dollar values are in Australian dollars (A$). SP3's results are reported under Australian International Financial Reporting Standards, or AIFRS. The historical information included in this Presentation is based on information that has previously been released to the market.

DISCLAIMER

No party other than SP3 has authorised or caused the issue, lodgement, submission, dispatch or provision of this Presentation, or takes any responsibility for, or makes or purports to make any statements, representations or undertakings in this Presentation. No person is authorised to give any information or make any representation in connection with the Capital Raising which is not contained in this Presentation. Any information or representation not contained in this Presentation may not be relied upon as having been authorised by SP3 in connection with the Capital Raising. To the maximum extent permitted by law, SP3, the Lead Manager and SP3's advisors disclaim all liability for any expenses, losses, damages or costs incurred by you as a result of your participation in the Capital Raising and the information in this Presentation being inaccurate or due to information being omitted from this Presentation, whether by way of negligence or otherwise, make no representation or warranty, express or implied, as to the currency, accuracy, reliability or completeness of the information in this Presentation and, with regards the Lead Manager, take no responsibility for or liability (including, without limitation, any liability arising from fault or negligence on the part of any person) for any direct, indirect, consequential or contingent loss or damage whatsoever arising from the use of any part of this Presentation or otherwise arising in connection with it. The Lead Manager makes no recommendation as to whether you or your related parties should participate in the Capital Raising nor do they make any representations or warranties, express or implied, to you concerning this Capital Raising or any such information, and you represent, warrant and agree that you have not relied on any statements made by the Lead Manager in relation to the New Shares or the Capital Raising generally. The information in this Presentation remains subject to change without notice. SP3 reserves the right to withdraw or vary the timetable for the Capital Raising without notice.

Agenda

• 1. Executive Summary
• 2. Introduction to Spectur
• 3. Strategy progress
• 4. Operational update
• 5. Offer details
• 6. Key Risks

Executive Summary

FY2020 performance

• Full year revenue estimate to be circa $4.8m (unaudited)
• 30 June 2020 cash balance $1.62m (positive cash of $87k for Q4)

FY2020 strategy execution

• Built customer outreach with associated insights, guiding market needs assessment
• Designed and built STA6, Spectur's scalable next-generation technology platform
• Outbound sales capabilities expanded
• Digital marketing and website poised for enhancement
• CSIRO Data61 partnership for AI in place

FY2021 growth horizons – organic and targeted acquisitions

• Expanding product lines (STA6 cornerstone)
• Gaining entry into major projects
• Adding sales channels via technology partners, security and system integrators
• Increasing geographic presence
• Expanding and improving range of solutions and applications for existing customers
• Improving inbound sales from enhanced marketing

Spectur seeks $1.1m to accelerate growth opportunities

Growth Capital Item	Investment Required
Sensing growth	$180,000
Expand AI applications	$180,000
Upgrade UI/UX/Server	$180,000
Targeted M&A strategy	$180,000
Channel expansion	$150,000
Product roll out	$150,000
Marketing investment	$54,496
Capital raise costs	$60,000
Total	$1,134,496

Note:

• This is the current intention and is subject to change depending on future events.
• Any amount raised lower than the target amount would result in reductions of investment across all items

Growth accelerators - Use of funds

Sensing growth ($180k)

• Speed the rate of deployment of the remote sensing LoRaWAN module. Currently delayed until Q2
• Acceleration of the "on-sensor" technology
• Expand sensor supplier relationships and build marketing support

Expand AI applications ($180k)

• Develop and deploy additional AI applications for the STA6
• Speed the development of the "App store" for AI applications
• Expand AI supplier relationships and build marketing support

Upgrade UI/UX/Cloud software ($180k)

• Improving the end-customer experience
• Ensuring that web and app functionality upgrades do not delay system deployments

Targeted M&A strategy ($180k)

• Costs for investigations into parties that can be acquired to accelerate growth
• Remote sensing, applied visual AI, integrators in target markets
• Seeking existing revenues and earnings within strategy

Channel expansion ($150k)

• Investigation and trialing of products and solutions with additional partners
• Australian and international re-sellers

Product roll out ($150k)

• Investment in additional inventory and componentry
• Allow faster delivery times and increased sales

Marketing acceleration ($54k)

• Accelerate e-commerce and customer portal on website
• New and refreshed marketing collateral
• Enhanced digital marketing (Paid, SEO, EDM, Social)

Capital raise costs ($60k)

• Broker, ASX, registry and legal costs

$1.1m in additional funds sought.

Spectur Limited

Focus on two major sectors

• Government, utilities & institutional
• Building & construction

Solutions for high value problems

• Deterrence of crime

• Surveillance to improve productivity

• Warnings to protect communities

• Safety through monitoring and AI

• Environmental sensing without people

• Range of solutions expanding

Leveraging technology for enhanced results

• Australian owned, design, coded and assembled
• Solar powered in-field platforms designed with cameras, IoT, computing, connectivity
• Expanding and customisable software, leveraging edge and cloud-based AI
• Future-proof programmable processing platform
• IoT sensors connected via LoRaWAN, extending the reach and versatility of the platforms
• Complementary field services to install, maintain, service and support
• Designed to integrate with 3rd party AI, sensors and video management systems

Solving outdoor challenges using autonomous sensing, thinking and action

Capital Structure

Key Metrics as at 30 June 2020
Share Trading Information
ASX code	SP3
Listed on ASX	01/08/2017
Current share price	$0.07
Market cap	$5.3m
52 week closing high	$0.13
52 week closing low	$0.041
Capital Structure
Shares on issue	75.6m
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	2.6m

Share Register
Top 20 shareholders	42.5%
% of register owned by Board & Key Management	3.65%
Top Shareholders (as at 30 June 2020) –
A Growing Institutional Investor Presence
Richard Wilkins (Founder)	7.9%
National Nominees Ltd	4.8%
DRP 2006 Super	2.7%
PabasaPty Ltd	2.6%
BasapaPty Ltd	2.1%
Cyan C3G Fund	2.0%
Darren Cooper (Non-Executive Chairman)	2.0%
D & G Amarakoon<duroSuper Fund></duro	1.9%
OldviewEnterprises	1.7%
Dr MalakaAmeratunga	1.7%
Rinaldi family	1.6%
Gerard Dyson (Managing Director)	1.4%
Equitable Investors Dragonfly Fund	1.3%

Pro – Forma Capital Structure

Pro Forma Shares
Capital Structure –Pro Forma Shares	No.	$*	$/Share
SP3 Fully Paid ordinary Shares Pre-Placement	75,633,065
Placement Shares	11,344,960	567,248	$0.05
Pro Forma Shares Post Placement	86,978,025
Offer of Shares Under Share Purchase Plan (SPP)	11,344,960	567,248	$0.05
Total Shares on issue following Placement and SPP	98,322,985	1,134,496
* Cash proceeds before costs

Note, the pro-forma capital structure is indicative only and may be subject to change

Operational Update

FOUR MATERIAL REVENUE STREAMS

Update

• Solid ongoing growth in Recurring (SaaS) and Rental revenues
• Greater than 50% of current revenues from ongoing sources
• 30 June 2020 cash balance $1.62m – (circa $90k net cash increase, with COVID-19 support)
• Forecast FY20 revenue (unaudited) $4.8m – (softer H2 in response to COVID-19 impacts on customers)

Note: FY20F based on incomplete, unaudited results

SPECTUR LIMITED (ASX: SP3) 11

Achievements FY20: Positioning Spectur for Growth

Technology Ready to Scale

Creates an entirely new product category, separate but inclusive of "solar security camera".

• Open platform that can integrate with other camera platforms, AI software and third-party sensors
• Underpins premium brand positioning

Enhanced Sales and Marketing

Transition from inbound to outbound focused sales, ready to proactively sell STA6

• Sales team expanded from three to six persons
• New website well advanced and refreshed digital marketing approach

Institutionally Strengthened Operations

Core systems, processes and infrastructure reviewed and matured, ready for growth:

• Inventory and manufacturing
• Strategy and sales focus
• Roles, responsibilities, KPIs, metrics

Improved Shareholder Register

Enhanced quality, depth and alignment of the share register:

• Removal of outstanding overhangs
• Addition of multiple small-cap funds throughout the year
• Strong and growing long-term support from core top-20 investors

Customer insights

A customer feedback function has been designed, implemented and delivered results. Key insights have included:

Functionality and performance required by the market, which has driven research and development

Effectiveness of sales and marketing approaches, leading to changes and optimisation in this function

Customer experience using Spectur systems, which has shaped how our field teams are supporting customers

STA6 Technology Platform Ready for July Delivery

FY21 Growth Strategy: Ready to Accelerate

Dramatically improved security application performance

• Increased sales based on improved performance
• New guard service offering (commenced in Q4 FY20)

STA6 is a future-proof, multi-function open platform

• Can be used for inhouse applications, as part of an integrated security solution, with 3rd party AI and 3rd-party sensors
• Range of uses is open ended and far greater than "security" only market making the product more valuable
• Programmable, expandable, flexible, future-proof compared to existing market (single use or bespoke combined applications)
• Allows extended sales through 3rd parties in Australia and overseas (integrators, security companies, AI and sensor providers)

Access to major projects

• STA6 platform can be integrated into 3rd party VMS systems, allowing it to be used as part of broader smart city / security / parking / other applications
• Spectur can now participate with integrators or as an integrator in larger projects

STA6 can do more for existing customers

• Extended AI applications in safety, warning & automated categorization (e.g. license plates) providing additional SaaS revenue
• Standalone sensors including movement, vibration, noise, air quality, smoke, environmental and others, bringing additional hardware and SaaS revenue

Extended range of ancillary products, sensors and AI applications

• Including solar lighting, trailers, LoRaWAN sensors, CSIRO AI applications, other 3rd party AI applications
• More items to sell and rent, driving upfront and ongoing SaaS revenue for Spectur

STA6

New Applications:

• Visual AI
• Sensing

SPECTUR LIMITED (ASX: SP3) 14

Offer Details

OFFER STRUCTURE & SIZE	•Placement raised approximately $0.57m from the issue of 11.3 million new Spectur Shares to be issued underSpectur'sexisting placement capacity under ASX listing Rule 7.1 (Placement).
OFFER PRICING	•Offer price of 5c per New Share represents a:-29% discount to the last closing price of 7c on 30 June 2020.-19% discount to the 15-day VWAP up to including 30 June 2020.
RANKING	Parity with fully paid ordinary shares on issue.
USE OF PROCEEDS	Proceeds from the Equity Raise will be applied to:•Channel expansion•Sensing growth•Product roll out•Expand AI applications•Marketing acceleration•Upgrade UI / UX / Server•Capital raise costs•Targeted M&A strategy
SHARE PURCHASE PLAN (SPP)	In addition to the placement, Spectur are offering eligible Australian and New Zealand shareholders theopportunity to apply for up to $30,000 in New Shares via a SPP.•The issue price for New Shares issued under the SPP is the same as the Placement Price of 5c.•Spectur seeks to raise approximately $0.57m through the SPP.•The record date of the SPP is 8 July 2020, and an Offer Document including further details of the SPP offer willbe sent to eligible shareholders in due course
LEAD MANAGER	ACNS Capital Markets Pty Ltd trading as Alto Capital (ABN 93 088 503 208)

Equity Raising Timetable

EVENT	DATE
Trading halt	Friday 3July 2020
Recorddate for the SPP	Wednesday 8 July 2020
Transactionannounced and SP3 resumes trading on the ASX	Thursday 9 July 2020
Settlement of Placement Shares	Monday 13 July 2020
Allotmentand normal trading of Placement Shares	Wednesday15 July 2020
SPP offer opens and dispatch of SPP Offer Document	Monday 20 July 2020
SPP offer closes	Friday 7 August 2020
Announcement of results of SPP	Tuesday 11August 2020
SPP allotment date	Thursday 13 August 2020
Normal trading of SPP Shares and dispatch of holding statements	Friday 14 August 2020

Notes: All above dates and times are indicative and subject to change without notice and have not been confirmed by the ASX. All times are WST time unless otherwise specified.

Key Risks - General

COVID-19	Events related to the Coronavirus pandemic (COVID-19) have resulted in significant market volatility. There is continued uncertainty as to ongoing and futureresponse of governments and authorities globally as well as a likelihood of an Australian economic recession of unknown durationor severity. As such, the fullimpact of COVID-19 to consumer behaviour, suppliers, employees and the Company are not fully known. Given this, the impact of COVID-19 could potentially bematerially adverse to Spectur'sfinancial and operational performance.
Competition	The solar power, visual AI and IOT industry is subject to competition based on factors including price, service, quality, performance standards, informationsecurity, innovation and the ability to provide customers with an appropriate range of reliable and tailored services in a timely manner.
Competition from newentrants to the industry	Spectur operates in an increasingly competitive industry where a number of participants are, or may, target entry into the industry with new and innovativeproducts aimed at the industry. New entrants to the industry may offer more competitive prices for products due to a range offactors, including if they havegreater financial resources than Spectur, which may enable them to offer products at more competitive prices while they establish their business. New entrantsmay also compete against Spectur with cheaper products that have less functionality than Spectur'soffering.
Failure to retain existingcustomers and attractnew customers	Spectur'sbusiness is dependent on its ability to retain its existing customers and attract new customers. Part of Spectur'sbusiness operates under subscriptionmodels which are exposed to the risk of termination, expiry and non-renewal.
Spectur is not yetprofit making	Spectur has historically focused on developing its platform and product, growing its customer base through relationships withchannel partners, and therecruitment of sales and marketing staff. While revenue has grown from FY14 to FY19, the focus on revenue growth has seen an increase in the cost base, resultingin the business historically generating NPAT losses and an expectation that NPAT losses will continue in the future. If Spectur fails to generate positive NPAT in thefuture it may be required to raise further capital and Spectur'sfuture operations may be adversely affected and its reputation may be damaged.
Reliance onproduct line	Spectur'sbusiness model is substantially reliant upon a limited range of products, being the HD and new STA systems. Spectur'ssuccess depends on its ability tokeep customers satisfied with its products. There is a risk that Spectur fails to properly maintain its products and IOT services or that updates or new releases mayintroduce errors or performance issues which could cause customer dissatisfaction and damage to reputation. Spectur'sreputation may also suffer as a result ofreal or perceived reductions in functionality, product quality, reliability, security, value and customer support or a failure to reflect developments in technology orin the commercial, compliance and regulatory environment. Any of these factors may result in reduced sales and usage, loss ofcustomers and an inability toattract new customers and possibly legal claims by customers.
Reliance on third party ITsuppliers and disruption oftechnology systems	Spectur and its customers are dependent on the performance, reliability and availability of Spectur'sIOT technology platforms and communications systems(including third party provider of servers, the internet, telecommunication providers, data centre hosting services and the cloud environment in which Specturprovides its services). There is a risk that these systems may be adversely affected by disruption, failure, service outages or data corruption that could occur as aresult of computer viruses, malware, cyber attacks or other disruptions including natural disasters, power outages or other similar events.

Key Risks - General

Spectur'sAbility to attract andretain key staff	success depends to a significant extent on its key personnel, in particular the senior management team. Spectur'ssenior management haveextensive experience in the core and unique operations of the business. The loss of key members of senior management may adversely affect Spectur'sability to develop its products or implement its business strategies and may adversely affect its future financial performance.An investment in Spectur is also subject to general risks including those related to general economic conditions, availability of funding, refinancing
General Risk	requirements, foreign exchange risk, share price volatility, interest rates, debt financial distress of customers, attractingand retaining employees, health,safety and environment issues, litigation and disputes, financial forecasts, regulatory issues, changes in law, changes in accounting policy and standards,taxation implications, insurance issues, force majeure, counterparty risk, intellectual property risk and reputational risk.
••••••Investment Risk••••••	There are general risks associated with investments in equity capital such as Spectur shares. The trading price of Spectur shares may fluctuate withmovements in equity capital markets in Australia and internationally. This may result in the market price for the New Shares being less or more than theOffer Price. Generally applicable factors which may affect the market price of Spectur shares include:the impact of COVID-19 (or other pandemics or epidemics), including prolonged reduction in activity in the business' key marketsand on Spectur'sworkforce, industry, customers and supply chains, including as a result of governmental action, work stoppages, lockdowns, quarantines, travelrestrictions and the impact on the economics and share markets of the key markets in which Spectur operates;general movements in Australian and international stock markets;investor sentiment;Australian and international economic conditions and outlook;changes in interest rates and the rate of inflation;changes in government legislation and policies, including taxation laws;loss of key personnel and delays in replacement;announcement of new technologies;epidemics or pandemics such as COVID-19;geo political instability, including international hostilities and acts of terrorism, the response to COVID-19 and travel restrictions;demand for and supply of Spectur shares;announcements and results of competitors; and analyst reports.No assurances can be given that the New Shares will trade at or above the Offer price. None of Spectur, its directors or any other person guarantees themarket performance of the New Shares. The financial position, performance and prospects of Spectur and Spectur'sshare price may be adversely affectedby the worsening of general economic conditions in Australia (including, the adverse impacts of, and the responses to, COVID-19), as well as internationalmarket conditions and related factors. It is also possible new risks might emerge as a result of Australian or global marketsexperiencing extreme stress, orexisting risks may manifest themselves in ways that are not currently foreseeable.

Investment Highlights

Financial performance

• $1.62m cash at bank as at 30 June 2020
• Positive cash generation in Q4
• Revenue recovering from March 2020 lows
• Strong operational controls

Game changing technology

• Best in class performance
• Unique programmable platform
• Unlimited future applications

Enhanced sales and marketing

• Australian and international channel partners
• Outbound sales team
• Improving digital platform

Synergistic M&A Options

• Channel partners
• Sensing
• Visual AI
• Solar ecosystem

Capital for growth

• Operations almost cash neutral
• Capital will be deployed in growth areas
• Multiple avenues for results, reducing risk

Contact Details

Spectur Limited (ASX: SP3) www.spectur.com.au

Enquiries Gerard Dyson Managing Director investors@spectur.com.au Sense Think Act