THORNEY TECHNOLOGIES LTD — AGM Information 2021

Nov 7, 2021

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ASX Announcement: 8 November 2021

ASX Code: TEK

TEK 2021 AGM CHAIRMAN’s ADDRESS

In accordance with Listing Rule 3.13.3 please find below a reproduction of the Chairman’s address to be delivered by Mr Alex Waislitz at the TEK 2021 Annual General Meeting commencing at 9:30am today.

“Ladies and gentlemen,

I’m pleased to report that your company, Thorney Technologies Ltd (TEK) delivered an outstanding performance for the 20/21 financial year.

TEK’s net tangible assets (NTA) after tax and fees increased by 44% over the previous year to be 48.5 cps at 30 June 2021.

This was one of the leading performances of any Australian Listed Investment Company (LIC) over the same period. The outperformance has continued into the current financial year with TEK’s most recent NTA for the month of September increasing further to 50.4 cents after tax and fees.

This growth in NTA is a credit to TEK’s investment management team and its ability to seek out, analyse and invest in highly promising technology-based growth companies in both the listed and unlisted sectors in Australia, the United States and Israel.

FY2021 saw TEK’s NTA more than doubled to $175.5 million. This was the result of both the strong rise in the overall value of TEK’s portfolio and the successful completion of a $37 million capital raise in December 2020.

The strong demand for that capital raise at 35 cps reflected the market’s confidence in the continuing ability of the investment management team to produce superior returns – a track record which has been consistently demonstrated since TEK’s inception.

The $37 million raised last December was deployed into the strong pipeline of both listed and unlisted opportunities which had already been identified by the TEK management team.

THORNEY TECHNOLOGIES LTD ABN 66 096 782 188 Level 39, 55 Collins St. Melbourne VIC 3000 Australia

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The extensive and ever-expanding range of attractive opportunities saw TEK go back to investors in July 2021 and successfully raised a further $25.3 million at 40 cps. The private Thorney Investment Group participated in both capital raises and retains a substantial investment of approximately 20.0%.

We are confident that the new investments made as a result of these capital raises will make a significant contribution to TEK’s NTA performance in the months and years ahead.

TEK’s four largest listed investments at year end were ZIP Co Limited (Z1P), Calix Ltd (CXL), Imugene Limited (IMU) and Cettire Ltd (CTT).

All of these companies saw impressive share price growth during the year – in particular CTT, an online retailer of luxury clothing and accessories which listed on the ASX in December 2020. CTT went public at 50 cents a share and has risen more than seven-fold since its share market debut. It remains one of TEK’s best performing stocks of 2021.

Like CTT, strong rises in the share prices of CXL, which is developing innovative industrial solutions to reduce global warming, and IMU which is pursuing exciting new cancer treatments, saw them become some of TEK’s largest holdings by value.

Since 30 June, TEK’s investment in CXL has grown to become the largest portfolio position having seen its share price rise by around 116% over this time. Z1P remains one of TEK’s largest holding and its largest exposure to the burgeoning Buy Now Pay Later (BPNL) sector.

TEK’s largest unlisted investment, Updater Inc. continues to grow its market share and revenue in the US real estate relocation industry helping many millions of Americans organise and complete their moving-related tasks via its Updater app.

Updater has confirmed it is exploring liquidity options, including a US share market listing, and TEK expects to be able to report on its progress during the current financial year.

Other companies in the TEK portfolio to contribute to the positive NTA performance included 5G fixed wireless operator, Pentanet Limited (5GG), which debuted spectacularly on the ASX in January, and Dubber Corporation Limited (DUB) whose share price continued to rise during the year as it reported additional international customer wins for its cloud-based voice call recording technology.

More recently Touch Ventures, the start-up investment offshoot of Afterpay Limited, debuted on the ASX with an initial burst of excitement. The share price has since settled to be around the IPO price, a level which provides a substantial gain based on TEK’s initial pre-IPO investment.

TEK continues to hold a number of unlisted positions which are at pre IPO stage and which we expect will come to market during the current financial year.

One such company is the “green” Bitcoin miner Iris Energy. This Australian founded company uses hydro electrically generated power, mainly in Canada, to mine Bitcoin

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and as such is seen as a more environmentally acceptable alternative to those Bitcoin mining companies which use fossil fuel power sources.

Iris has announced it is pursuing a Nasdaq listing in the USA, and having appointed its panel of advisers and underwriters, is poised to list prior to Christmas this year. It is anticipated that, subject to market conditions remaining steady, the IPO valuation will be considerably in excess of TEK’s investment entry cost and we will continue to keenly follow Iris’s progress into its IPO.

Two of TEK’s Israel-based pre-IPO investments, trading platform e-Toro and autonomous driving technology company Arbe Robotics have progressed their IPO ambitions via SPAC merger transactions. Arbe recently completed its listing on the Nasdaq and e-Toro is anticipating doing the same by the end of the calendar year.

Apart from Arbe and e-Toro, the TEK portfolio contains a number of pre-IPO investments which are pursuing liquidity events, many of which we anticipate seeing complete during this financial year.

Yet despite its highly prospective pre-IPO portfolio and its history of market-leading NTA growth, TEK’s share price continues to trade at a discount to its NTA.

Whilst I am pleased that the gap narrowed in FY2021 as TEK continued to outperform, the investment team and I remain focused on further reducing and preferably eliminating this unjustified discount gap.

I have foreshadowed a number of steps towards achieving this goal, including more frequent shareholder communications and greater detail on TEK’s key holdings and activities. We will be implementing these and other shareholder value-enhancing steps in coming months.

I would like now to reiterate some of my comments which were contained in my Chairman’s Letter, released at the end of August.

In all my years as a professional share market investor, I cannot recall a time when there has been more diversity of opinion about the prospects for the next 12 months and beyond.

The optimists are expecting the good times and record share prices to continue, buoyed by the weight of money which has been poured into the global economy to help limit the economic impact of COVID.

They point to ongoing historically low interest rates and a lack of investment alternatives to keep underwriting record share market levels.

The pessimists say we are living on borrowed time, with values unsustainably stretched, inflation looming large and the full global impact of the pandemic so far yet to filter through.

Then there is the very real prospect that more COVID variants could wreak even further havoc on human health and the global economy.

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On top of this, they point to increasing geo-political tension around the world making the prospect of a sharp market correction or worse seem increasingly possible.

At TEK we have always taken a cautiously optimistic approach.

We maintain our belief that the revolutionary power of disruptive technology to improve lives, create new global businesses, stimulate economies and generate wealth is only just beginning.

Indeed, I believe that regardless of all the considerable challenges the world is currently facing, there has never been a better time to be investing in the exciting technology space. TEK is now a well-established and internationally recognised technology player and we are extremely well placed to keep delivering superior returns

We are constantly adjusting our portfolio positions in line with our value models, selling down when we believe prices have become overheated and adding to holdings when we think selling has been overdone.

As always, our goal remains to keep delivering outstanding returns for TEK shareholders over the medium to long term by judiciously investing in the remarkable global technology revolution that we believe will continue to help change more and more human lives for the better as well as create wealth for our investors.

My sincere thanks go to my fellow TEK Directors, to the outstanding Thorney investment management team and to all TEK shareholders for your continued support.”

Alex Waislitz Chairman

Please direct enquiries to: Craig Smith, Company Secretary Email: craig.smith@thorney.com.au Telephone: + 61 3 9921 7116 Website: https://thorney.com.au/thorney-technologies/

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