TZ LIMITED — AGM Information 2012

Nov 27, 2012

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AGM UPDATE 2012 Kenneth Ting Executive Director TZ Limited

1. PDT Update

2. TZI Strategy & Update

3. PAD Update

4. IXP Update

5. Questions

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PDT Update

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PDT Sales 2013
PDT
$25M Sales on Plan
Cashflow Positive
$20M Improving Profitability
Solid Backlog > $4.8M
$15M
$10M
$5M
$0
JUL AUG SEP OCT NOV DEC JAN FEB MAR APR MAY JUN
Cumulative $USD
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OCT
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NOV DEC JAN
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APR MAY

FEB MAR

JUN

Improved Operations

• Better control of expenditure

• Changed management team

• Added Project Managers

• Developed better quoting procedures

• Building better US/Ukraine utillisation

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Ukraine Expansion

• Expanding Ukraine Team across:

• Mechanical Engineering

• Electrical Engineering

• Software

• Leveraging Ukraine resource will improve margins significantly

• Office now located among industry and higher learning institutions: access to the brightest minds in product development

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TZI Update

2009 What We Undertook

Learn from Experience – Stay Focused

Focus on a few application sectors and establish a leadership position

Take Charge: Control Our Own Destiny Rather than licensing our technology – create our own products to sell

Lay Foundations to Maximize Shareholder Value Validate the technology and get “runs on the board” – provide a commercial base to increase the value of our technology assets

Stay Focused

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Control Our Own Destiny

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TZ Courier TZ Concierge TZ Smart Lockers TZ Asset Manager TZ PAD Network
TZ Praetorian TZ SlideHandle TZ Centurion TZ Server TZ Bridge 8,32,70 TZ SwingHandle
NEW
LINEAR
SMA Device
2010 2011 2012 2013
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Foundations Laid
$X,000 IXP $X,000 PAD
Established Customers Established Customers
Solid Sales Pipeline Retained Supply Contracts
Market Leading Position Secured Sales Base
Channel Sales Expansion Increasing Market Awareness
$2,000 $2,000
$1,500 $1,500
$1,000 $1,000
$500 $500
$0 $0
YEJ2010 YEJ2011 YEJ2012 .… YEJ2010 YEJ2011 YEJ2012 …
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2013 Next Steps

1) Dominate target segments and build profile Continue to build market validation of products and rapidly increase sales volume

• 2) Seek OEM Partnerships Increase market penetration rate through OEM relationships 3) License Technology / Sell Business Application Seek licensing or commercial business ventures to monetize technology potential

PAD Update

TZ Courier - Corporate

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 Focus on penetrating strategic enterprise accounts

TZ Concierge

• Pursue through partnership relationships (Property Groups / Service Providers) with integrated Concierge offering

• Postal and Logistics

• Establish community based Parcel Locker Network in Australia

• Pursue strategic relationships with targeted logistics players in other markets

Other

• Pursue on-line grocery logistics offering to targeted customers

OVER 50 PAD LOCKER BANKS DEPLOYED SINCE FIRST COMMERCIAL SALE IN JANUARY 2011

• Explore reference project to launch ourPAD offering

Corporate

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 Established corporate accounts with structured 12 month supply arrangements  5 pilot programs underway with major Fortune 200 corporations  Top 10 corporate accounts have potential to generate $8M in sales over next 3 to 5 years

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Postal

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 Highly competitive segment requiring endto-end solution

Local market pilot provided TZ with the opportunity to understand needs and develop product, service and delivery capability



Local market – customer engagement through channel partner, Pitney Bowes Currently in direct discussions with 5 postal organisations on their parcel locker strategies

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Singapore Post

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Contract awarded to TZ to supply Singapore Post with their parcel locker requirements Potentially 100+ locker banks targeted for deployment over next 2 years

End-to-end custom developed solution covering locker hardware, locker software, and back-end systems integration and locker and courier management infrastructure.

 Expanded locker capability covering inbound and out-bound delivery, payment services and mobile interaction.

On-line Grocery

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Supporting local pilot program with Coles On-line



Initial pilot trial undertaken across three states, QLD, VIC and NSW



 New software platform to support integration requirements

• Potential for broad based national deployment if successful

 Currently pursuing discussions with parties in US and Europe regarding a similar offering

ourPAD

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 Exploring several local options  Looking for initial reference and pilot project to justify business investment  Currently pursuing discussions with several interested parties

PAD Parcel Locker Network

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 Initial pilot due for launch in January 2013  Established partnership relationships to support launch and roll-out plans

 End-to-end solution providing community based, carrier agnostic open network  Seamless integration to on-line retailer check-out through Temando engine  Transactional charge per parcel to Network users – retailers, consumers

Subscription fees for couriers and logistics companies to have access to deliver to the lockers.

New Space Saver PAD System

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IXP Update

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• Expand on established sales base and leverage high profile reference customers

• Expand sales channels to increase market penetration and sales volume

• Build OEM channel offering to facilitate potential for volume sales pull-through

• Establish and leverage Integrator channel to broaden visibility on project sales opportunities

• Develop strategic accounts with key customers … IBM, Microsoft, Amazon

• Develop partnerships with complimentary system providers … S2, Redwood

• Integrate and bundle TZ offering with complimentary products … Smart PDUs, 3rd Party Scanners and Readers

Established Customer Base

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Established base of reference customers



• On-going supply as DC expands or new sites constructed

• Currently over 3,000 Cabinets protected with TZ SlideHandles

• Current customer base has a potential requirement for over 35,000 Cabinets

Broadening the Channels to Market

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OEM DISTRIBUTOR INTEGRATOR END-USER
Strategic
OEM
Partner
Source
Fulfilment
Project
through
Partner
Sale
Distributor
Integrator Project
Sale Sale
Project
Sale
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Building closer relationships with end-user customers

• On-line project registration system established

Building direct relationship with OEMs to support high volume sales pull-through New product offerings to compliment channel strategy, i.e. TZ SwingHandle

TZ SwingHandle

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Retrofittable TZ SMArt Actuator Module

READY

Locking handle for data center server cabinets



 Based on modular team from last years AGM presentation.

 Compatible with single or multi-point locking, including rod control

Fits industry standard panel cutout



 Can be configured for handle to rotate 90 degrees CW or CCW, or 360 degrees

UNIQUE FEATURE:

 Mechanical version can be field upgraded to electronic actuation with LED indication, without removing handle from door

IXP Opportunity

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0 500 1,000 1,500 2,000 2,500 3,000 3,500 4,000
							Frost & Sullivan Projections
		FY 2013 FY 2014 FY 2015 FY 2016 FY 2017 FY 2018 FY 2019 FY 2020

OTHER APAC EMEA CALA NA

2,000,000 cabinets per year

 Total rack market size based on Frost and Sullivan projections – 2009 to 2015 market report

 2015 to 2020 based on forecast growth rates – DataCenter Dynamics Market Growth Report 2011

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Questions

Disclaimer

The information contained in this presentation is given in good faith and has been prepared from information believed to be accurate and reliable. The information presented does not take into account your individual financial circumstances and it is not designed to be a substitute for specific financial or investment advice or recommendations and should be relied upon as such. You should consider talking to your financial adviser before making an investment decision. So far as the law allows, TZ Limited excludes all liability for any loss or damage whether direct, indirect or consequential.

This presentation includes forward-looking statements that are based on information and assumptions known to date and are subject to various risks and uncertainties. Actual results, performance or achievements could be significantly different from those expressed in, or implied by, these forward-looking statements. Such forward-looking statements are not guarantees of future performance. They involve known and unknown risks, uncertainties and other factors, many of which are beyond the control of TZ Limited, and which may cause actual results to differ materially from those expressed in this presentation.