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SPECTUR LIMITED Investor Presentation 2021

Aug 11, 2021

65837_rns_2021-08-11_f7e10b58-c42c-455b-b2c2-09896b7ee136.pdf

Investor Presentation

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Spectur Limited (ASX:SP3)

Market briefing

This document was approved by the Board of Spectur Limited

Our value proposition

Totally wireless solar platforms for

  • Security and surveillance, acting as a smart (Ai powered) security guard
  • Safety and warning, acting as a smart, connected lifeguard / ranger / safety officer
  • Expanding Ai and IoT sensing applications, collecting data, analysing and making decisions, taking actions.

Unique

  • Integrated hardware and software, optimized for low power and data consumption
  • Fog computing platform bringing cloud and edge processing together to reduce cost by an order of magnitude or more
  • Expandable and modular to allow new software and hardware applications speed to market

Financial Highlights

Key numbers

FY21 Highlights

  • Revenue $5.2m (H2 $3.2m, Q4 $1.8m)
  • Cash at 30/6/21 $1.68m, undrawn loan facility of $1.5m
  • Rental and SaaS ARR $3.2m
  • Probability weighted sales pipeline (at 9/8/21) of >$5m

FY21 Q4 Highlights

  • Highest Quarterly Revenue
  • Highest Quarterly Equipment sales
  • 2nd Highest Quarterly Rental revenue

Capital structure, share price and volume

Key Metrics as at28 July 2021
Share Trading Information
ASX code SP3 D & G Amarakoon
Listed on ASX 01/08/2017 Fund>
Current share price $0.088
Market cap $9.35m Darren Cooper (NonChairman)
52 week closing high $0.10
52 week closing low $0.041
Capital Structure
Shares on issue
Unlisted Options @ 0.10 106.3m
Exp 30/06/2024 2.2m
Performance Rights onissue 8.5m <serotutorSuperfund A/c></serotutor
Share Register
Top 20 shareholders 35.2%
% of share register owned by Board& KMPs 4.28% A/c>
Top Shareholders (as at28 July 2021)
National Nominees Limited 4.0%
D & G Amarakoon<duroSuperFund></duro 3.4%
Charles Wilkins (Founder) 3.3%
Darren Cooper (Non-ExecutiveChairman) 2.4%
Dr MalakaAmeratunga 2.4%
Mr Peter Ferris 1.7%
Facoory Investments (QLD) Pty Ltd 1.7%
MsSnezanaBowden 1.5%
BNP Paribas Nominees Pty Ltd 1.5%
A Gunawardena & T Fernando<serotutorSuperfund A/c></serotutor 1.4%
Gerard Dyson (Managing Director) 1.4%
Mr Alistair Charles Jackson 1.2%
Fry Super Pty Ltd <inxs fund<br="" super="">A/c> 1.2%

Addressable market

    1. Conservative estimate that 5% of total market is outdoors.
    1. Estimate that outdoor safety and warning market is 15% of security market in Australia (based on Spectur sector experience)
    1. At 20% CAGR, Smart Cities market size expected to touch a Value USD 297.7 Billion by 2026, Says Facts & Factors (cited in GlobalNewsWire: April 29, 2021 09:07 ET)
    1. Population of Australia is 25.8m (2021) and New Zealand is 4.9m. (19% of Australia)) –prorating ostensibly similar markets
    1. Population of Texas and California in 2021 is 29.2m and 39.5m (68.7m or 266% of Australia) prorating comparable markets

Scenario Geographic presence Offering Sales channel Customer sectors
Spectur FY21 Revenue $5.2m(<4.5% of Australianaddressable market) 50% WA, 45% (Vic, Qld,NSW), <5% NZ Security andsurveillance, warningand safety systems Inbound, in house, limitedresellers Government, building / construction,security, safety and community services, utilities
Potential options for market growth
ANZ market dominance1 No change No change Sales footprint expanded intoNT and SA. Extended use of resellers to address regional areas No change
Expanded customer base2 No change No change other thanminor engineering forcyclone regions Additional sales team withcustomer sector experience Expand customer base to include largerindustrials and farming
Product expansion3 No change Broader IoT offeringBroader Ai offering No change No change
US expansion4 ANZ, Texas, California No change No change No change

Notes:

The above table is intended to provide a conservative indication of market size and opportunity. It is not a forecast of revenue for Spectur Ltd. See slide 5 for source data.

  1. Population of WA is 2.8m, population of Qld (5.2m), Vic (6.6m), NSW (8.2m), NZ (4.9m) and total Australia and NZ is 30.65m inaggregate. Assume that selling the product through third party distributors on top of growing organic sales could lead to 40% market penetration.

  2. Expand customer base to include larger industrials and farming sector.

  3. Product expansion via a broader IoT and Ai offering

  4. Population of Texas (29.2m) + California (39.5m) is 68.7m.

Key customers

Shift in focus to larger customers

Utilities

  • Strong ongoing growth in telecommunications
  • Growing forward order book with multiple customers

Government

• State and local government growth, with maturing (larger) relationships

Construction and building

• Push into larger construction alliances and larger contractors

Safety and community services

• Expansion of shark warning system to Surf Life Saving as well as other charities

…Spectur has more than 500 active customers…

The Future

Getting ready to scale

Technology

  • Mature production to match demand and protect margins
  • Expand AI, sensing, hardware and software applications to provide desired features
  • Advance modularization to allow more 3rd party cameras, peripherals and software, faster
  • Improve the user experience through enhanced GUI and dashboard

Sales consolidation

  • Continue reseller expansion to make it easier for customers to get sales and support
  • Build on outbound and account management led sales growth to target strategic customers

Strategic acquisitions

• Continue search and review of acquisitive growth options within strategy

Contact Details and Investor Enquiries

Spectur Limited (ASX:SP3)

Gerard Dyson

Managing Director

[email protected]

Important notice and disclaimer

This document has been prepared as a summary only, and does not contain all information about Spectur Limited's (the "Company's") assets and liabilities, financial position and performance, profits and losses, and the rights and liabilities attaching to the Company's securities. This document should be read in conjunction with any public announcements and reports (including financial reports , third party studies and disclosure documents) released by the Company.

The release, publication or distribution of this presentation in certain jurisdictions may be restricted by law and therefore persons in such jurisdictions into which this presentation is released, published or distributed should inform themselves about and observe such restrictions.

This presentation does not constitute, or form part of, an offer to sell or the solicitation of an offer to subscribe for or buy any securities, nor the solicitation of any vote or approval in any jurisdiction, nor shall there be any sale, issue or transfer of the securities referred to in this presentation in any jurisdiction in contravention of applicable law.

This document does not purport to be complete and is for informational purposes only: it does not represent financial advice. Persons needing advice should consult their stockbroker, bank manager, solicitor, accountant or other independent financial advisor.

Certain statements made in this presentation are forward-looking statements. These forward-looking statements are not historical facts but rather are based on Spectur Limited's current expectations, estimates and projections about the industry in which Spectur Limited operates, and its beliefs and assumptions. Words such as "anticipates", "expects", "intends", "plans", "believes", "seeks", "estimates" and similar expressions are intended to identify forward - looking statements.

Although the Company believes that its expectations reflected in the forward-looking statements are reasonable, such statements involve risk and uncertainties and no assurance can be given that actual results will be consistent with these forward-looking statements. These statements are subject to known and unknown risks, uncertainties and other factors, some of which are beyond the control of Spectur Limited, are difficult to predict and could cause actual results to differ materially from those expressed or forecast in the forward-looking statements. Spectur Limited cautions shareholders and prospective shareholders not to place undue reliance on these forward-looking statements, which reflect the view of Spectur Limited only as of the date of this presentation.

The forward-looking statements made in this presentation relate only to events as of the date on which the statements are made. Spectur Limited will not undertake any obligation to release publicly any revisions or updates to these forward-looking statements to reflect events, circumstances or unanticipated events occurring after the date of this presentation except as required by law or by any appropriate regulatory authority.