TZ LIMITED — AGM Information 2019

Nov 28, 2019

TZL 2020

AGM

==> picture [304 x 34] intentionally omitted <==

TARGET 1 PROFITABILITY

TARGET 2

Build Annual Recurring Revenue Target for FY20 ARR is circa $3M

TZ is a technology leader in the smart electronic lock market.

To achieve profitability and growth, TZ is shifting its focus from technology development into sales and business development in current areas of participation and new application sectors.

TZ 2011 A NEW INVENTION BUT NO PRODUCTS AND NO CLIENTS

==> picture [168 x 109] intentionally omitted <==

Electro-Mechanical Locks

Electric motor or solenoid actuation

Dumb switch:

• › On/Off only, no intelligence

• › Form factor, size & weight limitations

• › High power needs to actuate

• › Creates electromagnetic fields

==> picture [267 x 134] intentionally omitted <==

TZ SMArt Locking Devices

State-of-the-art Shape Memory Alloy actuation

Intelligent node in a system:

• › Embedded logic controller

• › Flexible form factors, small size, lightweight

• › Low power needs

• › No electromagnetic fields

TZ 2012 NOW WE HAVE PRODUCTS

› Solutions that integrate physical security and environmental monitoring right down to the asset level — the cabinet or server level › A more holistic approach to remote data center security, protection and control.

==> picture [754 x 424] intentionally omitted <==

Supported by Major Data Centre Operators

Slide | 7

› 47 billion parcels were shipped globally in 2014;

› 83 billion parcels were shipped globally in 2018;

› Forecasted parcel growth of

• 19% in 2019.

==> picture [317 x 207] intentionally omitted <==

==> picture [94 x 111] intentionally omitted <==

==> picture [252 x 92] intentionally omitted <==

==> picture [352 x 235] intentionally omitted <==

Supported by Major Postal and Logistics Players

Slide | 9

TZ 2020 NOW WE HAVE CLIENTS

Colocation/MSP Data Centers

==> picture [110 x 21] intentionally omitted <==

==> picture [66 x 30] intentionally omitted <==

==> picture [120 x 29] intentionally omitted <==

==> picture [65 x 36] intentionally omitted <==

==> picture [99 x 27] intentionally omitted <==

==> picture [77 x 53] intentionally omitted <==

==> picture [52 x 24] intentionally omitted <==

Government & Education

==> picture [55 x 50] intentionally omitted <==

==> picture [53 x 44] intentionally omitted <==

==> picture [40 x 45] intentionally omitted <==

==> picture [54 x 50] intentionally omitted <==

==> picture [54 x 48] intentionally omitted <==

==> picture [59 x 46] intentionally omitted <==

==> picture [107 x 67] intentionally omitted <==

==> picture [97 x 38] intentionally omitted <==

==> picture [95 x 23] intentionally omitted <==

Healthcare

==> picture [82 x 28] intentionally omitted <==

==> picture [94 x 37] intentionally omitted <==

==> picture [88 x 35] intentionally omitted <==

==> picture [84 x 31] intentionally omitted <==

Telecommunications

==> picture [104 x 40] intentionally omitted <==

==> picture [77 x 27] intentionally omitted <==

==> picture [159 x 49] intentionally omitted <==

==> picture [43 x 13] intentionally omitted <==

----- Start of picture text -----

Other
----- End of picture text -----

==> picture [55 x 45] intentionally omitted <==

==> picture [79 x 28] intentionally omitted <==

==> picture [86 x 32] intentionally omitted <==

==> picture [68 x 29] intentionally omitted <==

==> picture [208 x 28] intentionally omitted <==

Technology

==> picture [127 x 36] intentionally omitted <==

==> picture [94 x 22] intentionally omitted <==

==> picture [62 x 36] intentionally omitted <==

==> picture [76 x 25] intentionally omitted <==

==> picture [97 x 26] intentionally omitted <==

==> picture [83 x 27] intentionally omitted <==

==> picture [77 x 26] intentionally omitted <==

==> picture [87 x 42] intentionally omitted <==

==> picture [35 x 36] intentionally omitted <==

Entertainment/Hospitality

==> picture [76 x 55] intentionally omitted <==

==> picture [104 x 44] intentionally omitted <==

==> picture [123 x 59] intentionally omitted <==

==> picture [96 x 49] intentionally omitted <==

Postal and Logistics

==> picture [127 x 47] intentionally omitted <==

==> picture [65 x 77] intentionally omitted <==

==> picture [76 x 24] intentionally omitted <==

==> picture [128 x 23] intentionally omitted <==

Banking and Finance

==> picture [99 x 46] intentionally omitted <==

==> picture [67 x 45] intentionally omitted <==

==> picture [60 x 46] intentionally omitted <==

==> picture [157 x 83] intentionally omitted <==

Residential

Corporate

==> picture [105 x 97] intentionally omitted <==

==> picture [143 x 31] intentionally omitted <==

==> picture [127 x 30] intentionally omitted <==

==> picture [105 x 78] intentionally omitted <==

==> picture [95 x 39] intentionally omitted <==

==> picture [83 x 52] intentionally omitted <==

==> picture [108 x 36] intentionally omitted <==

==> picture [72 x 48] intentionally omitted <==

Educational

==> picture [82 x 34] intentionally omitted <==

==> picture [112 x 74] intentionally omitted <==

==> picture [193 x 30] intentionally omitted <==

==> picture [145 x 57] intentionally omitted <==

==> picture [71 x 71] intentionally omitted <==

==> picture [102 x 36] intentionally omitted <==

==> picture [77 x 26] intentionally omitted <==

==> picture [94 x 26] intentionally omitted <==

==> picture [130 x 45] intentionally omitted <==

==> picture [71 x 20] intentionally omitted <==

==> picture [108 x 50] intentionally omitted <==

==> picture [109 x 17] intentionally omitted <==

==> picture [72 x 38] intentionally omitted <==

==> picture [153 x 71] intentionally omitted <==

==> picture [104 x 41] intentionally omitted <==

==> picture [119 x 32] intentionally omitted <==

Retail Click and Collect Lockers

Campus Package Management

Universities and College Mail Centres

Corporate Day Lockers

• › There are 9,463 post-secondary schools registered with the US Government.

• › 100 new RFP tenders anticipated for smart lockers in 2020

• › The US market has an addressable opportunity of US$450M.

==> picture [351 x 206] intentionally omitted <==

----- Start of picture text -----

UNC Charlotte
----- End of picture text -----

==> picture [353 x 196] intentionally omitted <==

----- Start of picture text -----

Princeton
----- End of picture text -----

==> picture [296 x 366] intentionally omitted <==

• › Most clients are now subscribing for the full annuity service.

• › The split between “Software Maintenance Fee” and “Hardware Maintenance Fee’ is approximately 80/20. That is 80% of recurring revenue is from “software”.

• › Established on-going maintenance contracts with major customers – Sing Post, UPS, DSV, Apple, KPMG

• › Active programs are in place to push annuity services – HW maintenance, SW maintenance and hosting services

• › Use new software upgrade releases to secure ongoing maintenance subscription

TZ 2020 NEW APPLICATIONS

==> picture [129 x 121] intentionally omitted <==

New Multi-Purpose Lock

SMArtBus Controller

• › USB to SMArtBus

• convertor used with

Gateway and external

PSU

==> picture [156 x 113] intentionally omitted <==

SMArtBus Extender

• › Extends a SMArtBus segment up to 40m

==> picture [100 x 80] intentionally omitted <==

SMArtBus Hub

• › Supports 4 x TZ SMArt

• Devices

==> picture [127 x 84] intentionally omitted <==

SMArtLink GPIO

• › 4 GPIO for sensing

• and control from the SMArtBus

==> picture [93 x 72] intentionally omitted <==

SMArtLink USB

• › Connects USB scanning devices to the TZ Devices EcoSystem

==> picture [90 x 73] intentionally omitted <==

SMArtLink Wiegand

• › Wiegand convertor to SMArtBus

==> picture [95 x 73] intentionally omitted <==

SMArtLink ENET Bridge

• › Connects SMArtBus segment to Ethernet WAN

==> picture [90 x 75] intentionally omitted <==

TZ Enterprise Layer

• › Comprehensive enterprise level applications for specific segments

• › API Integration capability with third party systems

TZ Applications Layer

• › Industry specific mobile and cloud applications

TZ SMArt Gateway Devices

• › Secure gateway capability between the TZ Device EcoSystem and higher level applications

TZ SMArt Link Devices

• › Integrate 3rd party devices, GPIO and CyberID devices such as Barcode readers, RFID into the TZ Device Network

TZ SMArt Devices

• › Light-weight, energy efficient SMA actuated Locking and Fastening Smart Devices.

Customer Enterprise Systems

==> picture [303 x 372] intentionally omitted <==

----- Start of picture text -----

TZ Enterprise TZ Application
APIs APIs Customer
Developed
TZ TZ
Applications
Enterprise Applications
Layer Layer
TZ Gateway
APIs
TZ SMArt Gateway Devices
TZ Device Protocols
TZ SMArt Link
Devices
SMArt
Devices
3 [rd] party devices
Cyber ID devices
----- End of picture text -----

==> picture [235 x 241] intentionally omitted <==

FULLY AUDITED AND CONTROLLED MEDICINE CABINETS

TZ to find global distribution partners for supply to Hospital, Medical and Health organisations

==> picture [234 x 237] intentionally omitted <==

SECURE RETAIL CABINETS

TZ to find global distribution partners to cover retail cabinets and display units

==> picture [306 x 215] intentionally omitted <==

SECURE GUN AND EQUIPMENT CABINETS

TZ to find global distribution partners for cover defence and police departments

==> picture [231 x 242] intentionally omitted <==

ACCESS CONTROL FOR CABINETS AND DRAWERS FOR THE HOME

TZ to find global distribution partners to support B2C offering for the home

==> picture [156 x 185] intentionally omitted <==

==> picture [171 x 213] intentionally omitted <==

==> picture [271 x 417] intentionally omitted <==

ACCESS CONTROLLED ELECTRICAL CABINETS

› Electricity Grid Security › Traffic Light Boxes

Distribution MOU in negotiation with Traffic Management Infrastructure Company

TZ 2020 FINANCIAL SUMMARY

2014 2015	2016	2017	2018	2019*
REVENUE A$8.4M A$15.1M	A$20.8M	A$21.5M	A$17.4M	A$17.4M
GROSS MARGIN 49% 44%	30%	45%	51%	49%
ADJUSTED EBITDA (A$8.55M) (A$4.47M)	(A$5.28M)	(A$2.95M)	(A$2.64M)	(A$3.5M)
LOSS AFTER TAX (A$11.80M) (A$6.44M)	(A$7.03M)	(A$6.48M)	(A$11.69M)	(A$4.4M)
The introduction of AASB 15 in FY2019 changed TZ’s			2018	2019
revenue policy. The table on right shows 2019 results
with adjusted comparative 2018 results.	REVENUE		A$15.0M	A$17.4M
Under TZ’s previous policy, revenue was recognised on a percentage of cost completion basis, whereas	GROSS MARGIN		50%	49%
the new policy in FY2019 recognises revenue when performance obligations have been satisfied.	ADJUSTED EBITDA		(A$3.9M)	(A$3.5M)
FY2019 margin affected by the large rectification cost	LOSS AFTER TAX		(A$13.0M)	(A$4.4M)

Under TZ’s previous policy, revenue was recognised on a percentage of cost completion basis, whereas the new policy in FY2019 recognises revenue when performance obligations have been satisfied. FY2019 margin affected by the large rectification cost for UPS in the USA ($440,000).

FY2020

REVENUE $20.2M EBITDA $0.6M

$0.6M

THE OFFER SPP @ 10.5 cents per share TZ Limited has raised over $65m in capital to develop and prove the product over the past 9 years SPP shareholders now get a chance to buy into the Company at a valuation of circa $8M ... a significant discount to the capital raised so far for TZ’s investment in technology

This Document presents information for selected professional investors to consider whether to subscribe for shares in the Company. The information in this Document is to be used for the purpose of each interested party (the “ Recipient ”) determining their interest in making an offer for the subscription for equity in TZ Limited (“ TZ ”) as described in this Document and is not to be used for any other purposes.

The Document does not purport to contain all the information an interested party may require to assess the business and operations of TZ, and is not a prospectus.

This Document has been prepared by the Directors of TZ. in good faith, derived from information believed to be reliable, having regard to all circumstances at the date of this Document. In particular, the estimations of market size and business opportunity have been prepared by TZ’s Directors, based on trends and growth assumptions, which may not necessarily occur. The Recipient should also be aware that there are significant risks inherent in any investment and actual results are likely to be different from those set out, and that the variation may be material.

Each Recipient of the Document should conduct their own investigation and analysis regarding any information, statements or representations, opinions, estimates and projections contained in this Document and should rely on their own inquiries and seek appropriate professional advice before proceeding to subscribe for equity in TZ.

Each recipient agrees that it will, upon request, return this Document and any other material received from TZ. or their agents, advisers and representatives without retaining copies thereof,

This Document is not to be reproduced, transmitted or made available to any other party without the prior written consent of TZ.