TZ LIMITED — Capital/Financing Update 2022

Dec 8, 2022

9 December 2022

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ASX Announcement

Business Update and Increase and Extension of Debenture Facility

TZ Limited (the ‘ Company ’ or ‘ TZ ’) (ASX: TZL ) has increased the size of the debenture facility with First Samuel Limited from $2.5m to $3.5m and has simultaneously extended the maturity date from 30 April 2023 to 31 January 2024. The coupon rate remains at 4.5% over the 90 Day BBSW (refer ASX announcement July 5[th] 2021).

The company undertook this decision to fund the following initiatives:

• Transition and Growth of MRR

There has been a deferment of topline revenue due to the transition from upfront payment for a perpetual license (top line revenue) to a monthly subscription charge (recurring revenue). The reduced current top line revenue will be compensated by an increase of Monthly Recurring Revenue ( MRR ). TZ’s MRR has grown over 50% in the past 12 months to $315,000 per month with 209 subscriptions. Approximately 65% of those subscriptions are on a 12-month term; 15% are on longer term of over 3 years and 10% committed to 5 years term.

A substantial amount of clients on a “perpetual licenses” have already been notified of an approaching “end-of-life”. The Company is working on switching these clients to the monthly Saas/hosting subscription offer from TZ. The company will add 2 extra sales people in the US with an initial focus on this transformation to the new monthly subscription service. This is part of the acceleration of TZ’s MRR strategy with a 12 month target of reaching $500,000 per month.

• OPeL and OPeL 2 Product Launch

OPeL (expected Q3 FY23) and OPeL 2 (expected Q4 FY23) are the tools offered by TZ that operated as an open platform for managing third party’s hardware. TZ traditionally sold TZ locks with its own software to operate. Opening-up the platform creates an additional revenue opportunity, and most importantly, a recurring revenue (at attractive margins due to a reduction in support, implementation and deployments costs).

The above projects have contributed to a negative cashflow from operations in the short term.

TZ expects theses short term additional expansion costs to subside by the end of Q3 FY23. The Company expects to be cash flow positive in Q3 and Q4.

The new product launch and the strategy of MRR (or monthly recurring revenue) growth are the Company’s primary focus and integral to rewarding shareholders.

Authorised for release by the Board of Directors.

Level 2, 40 Gloucester Street TZ. Intelligent Control. The Rocks NSW 2000 Australia www. tz.net

TZ Limited +61 2 9137 7300 ABN 26 073 979 272 info@tz.net

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For further information, please contact:

Mario Vecchio CEO

TZ Limited

mario@tz.net

About TZ Limited

At TZ, we engineer solutions to improve physical access control using smart devices and even smarter technology. We invent solutions to solve real-world problems, solutions designed to work in harmony with existing technology for total connectivity. That’s why we are the trusted partner of global corporations like Apple, Microsoft, SunCorp, Adidas and WesTrac.

With offices in Australia, Singapore, India, America and the United Kingdom, TZ solutions support agile workplaces, contactless e- commerce deliveries, campus package management; first responder’s chain of custody; data cabinet security, and so much more. Our products implement rules to control who can access what, when and where. – then report on these actions for intelligent business insights.

As the world evolves, so does our technology. We call this “Edge Logistics IT”. TZ has always provided connected devices and the software that controls them. TZ solutions will deliver intelligent access for every device to enable a new level of customer control.

For additional information on TZ Limited, please visit www.tz.net.

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