STRAKER LIMITED — Investor Presentation 2021

Jan 20, 2021

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Disclosure Statement

This presentation is given on behalf of Straker Translations Limited ASX:STG (Company number NZ: 1008867 / AU: ARBN 628 707 399)

Information in this presentation:

• Is for general information purposes only, and is not an offer or invitation for purchase, or recommendation of securities in Straker Translations Limited (Straker)

All information in this presentation is current at 21 January 2021, unless otherwise stated.

• Should be read in conjunction with, and is subject to, Straker’s latest and prior interim and annual reports, including Straker’s Interim Report for the period H1FY21 ended 31 September 2020, and Straker’s market releases on the ASX

All currency amounts are in NZ dollars, unless otherwise stated.

• Includes forward-looking statements about Straker and the environment in which Straker operates, which are subject to uncertainties and contingencies outside of Straker’s control - Straker’s actual results or performance may differ materially from these statements

• Includes statements relating to past performance, which should not be regarded as a reliable indicator of future performance

• May contain information from third parties believed to be reliable; however, no representations or warranties are made as to the accuracy or completeness of such information, and

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Deal - what

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• Straker is purchasing US-based translation technology company Lingotek in a transformational acquisition. Lingotek had LTM revenues of NZ$11.2m (US$7.9m) for NZ$9.1m(US$6.47m) in a cash and stock deal.

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Deal - why

• Why we are acquiring Lingotek

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• Key connector technology saving significant time and resources in planned R&D, some connectors will be used by IBM as we ramp up

• Offer new enterprise translation relationships with major corporates

• Provide critical mass in the major US market

• Provide a SaaS revenue stream

• Materially grow Straker's revenue and is forecast to be breakeven in FY22

• • Combined we can get Lingotek technology utilised to its full potential

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Highlights

Acquisition Highlights

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‣[Unconditional agreement to acquire the assets of Lingotek for NZ$(US$6.47m) ] effective 1st Feb 2021 ‣[Brings 20 new Enterprise relationships into the Group including Nike, Acquia and ] Oracle

• ‣[LTM revenue of NZ $11.2m, Lingotek will contribute two months earnings to ] Straker in FY21

• ‣[The acquisition is to be funded via: ] NZ$1.7m (US$1.2m) placement to Lingotek vendors at AU$1.59 per share NZ$7.4m (US$5.27m) in debt

• ‣[SaaS contracted revenue is 40% of Lingotek revenue ]

• ‣[Expects the acquisition to be EBITDA break-even in FY22 ]

• ‣[Key management staying on to drive SaaS and Platform business]

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Strategy

Lingotek Acquisition continuing the Straker strategy of innovation and growth

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Lingotek adds SaaS
Lingotek adds
recurring revenue automation connectors and
a significant corpus of
Grow Repeating
translation data assets
Revenue
A.I. Driven
Technology
Innovation
Grow Customer
Base
Lingotek adds NZ$11m
of revenue and 20
Enterprise customers
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Market & Investment Opportunity

Lingotek and Straker combined drive us to more into the scale disrupter zone

Innovation Index Scale Zone Optimal Zone 40 Larger LSPs with global coverage but lacking $50m Revenue Dying Zone Tech Zone 20,000 LSPs Less/No tech innovation More tech innovation

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M&A

Acquisitions driving enterprise growth

Lingotek is our 8th acquisition since 2016

Major European Global technology automobile manufacturer hardware provider Global entertainment and amusement Global logistic company company Leading Leading Global technology, ERP company entertainment

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Leading technology, entertainment and computer company

Global chemical Leading Global technology, ERP company entertainment company and computer 20 New company Eurotext Elanex MSS EULE COM On Global NZTC Lingotek Enterprise USA customers Ireland USA Spain Germany Spain/USA Spain NZ 2016 2017 2018 2018 2019 2019 2020 2020 Major Asian automobile manufacturer Leading Global Leading food Global train manufacturer ERP company manufacturer Major US retail chain Global finance company

As we acquire companies we are gaining trusted supplier relationships with leading global companies and open doors to access more of the available customer wallet

Most acquisitions have 5-10 major customers in this category

It can take 12-24 months to work our way to a head office relationship where we change the nature of our supplier relationship from regional to global

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Deal Information

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Deal Metrics ($USD)
Price Revenue
$7.9m $3.2m
0.82x $6.47m
The upfront price is US$6.47 million for
0.82x of revenue Lingotek, 19% paid in LTM revenue of US$7.9m SaaS revenue
STG stock
Earn-out
EBITDA
$3.1m
Lingotek expected to be Earn-out based on hitting
EBITDA break-even in FY22 significant over-achievement of
revenue and consistent margins
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About Lingotek

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Lingotek Historical Timeline

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Esri joins the
client mix
First to introduce
Nike becomes
connectors to
major SaaS
Stevie Award Best New
Drupal
customer
Product or Service of the
Lingotek founded as a marketplace
Year - SaaS
pioneer for cloud-based
New partnership
TMS technology
First cloud based TMS with Oracle Content
& Experience
2020
2 006 2008 2010 2014 2016 2017 2019
Receives initial investment Fender, Nuance,
from In-Q-Tel, Inc. and Zoom, Coursera,
Canopy Group (now Signal Edrington
Peak Ventures) become new
customers
Keysight Top 100 Companies in
becomes new the Digital Content
customer Industry – EContent
2017-2018
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Lingotek Straker Synergies

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Automation of
Focus on Global
the Translation
Services
Process
Business
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Automation of the Translation Process

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AI Driven
Adaptive Post
Edit For Speed
and Efficiency
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Lingotek has had a focus on automation on ramps for content, Straker has had a core focus on translator efficiency through AI and a world leading global services infrastructure

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Platform Synergies

• The Lingotek Translation Platform and the Straker RAY platform have strong synergies that combined will be world leaders in A.I. driven translation technology

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Lingotek’s wide range of connectors and content on ramps will drive faster and greater volumes of content into RAY. Many of the connectors were on the RAY roadmap and will accelerate deployment of ‘sticky’ connectors into customers at scale.

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Lingotek Management Team Experienced management team to remain and drive the SaaS business unit

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Jeff Labrum
CEO
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Nick Ramond
Chief Technology Officer
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Brad Ross
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Director of Product
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Greg Larsen
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Director of Revenue
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• Lingotek founder; CFO and current CEO

• Previously, CFO and CEO of Chipper Snax, a manufacturing firm he led from inception to consolidation

• KPMG, Senior Accountant

• B.A., Accounting and MBA from the University of Utah

• 25 years of development experience in customer service, operations, and software development

• Previous key roles at Ghostery, Experticity, inContact (NICE inContact), and Wolters Kluwer

• B.A., Philosophy from Hamilton College

• More than 10 years of product management experience at startups and public companies

• Previously lead Product Management at Identifix

• B.A., Business Management from Utah Valley University

• Responsible for aligning all revenue arms

• Previously at Qualtrics (now SAP Qualtrics) – part of recordbreaking revenue growth of the company

• B.A. in Business Administration and Leadership from

• Southern Virginia University

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Economic Benefits

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• ‣[Forecast EBITDA break-even first full year post acquisition ]

• ‣[SaaS revenue acquired at a highly competitive multiple ]

• ‣[Access to major accounts with untapped customer wallet ]

• ‣[Ability to sell SaaS products through our global network ]

• ‣[Expedites deployment of popular content connectors increasing ] content on-ramps

• ‣[Consolidation efficiencies in US market and scale to be involved in ] more and larger significant tenders

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Thank You

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STG. ASX

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