TZ LIMITED — Capital/Financing Update 2022

Jun 26, 2022

Level 2, 40 Gloucester Street

The Rocks NSW 2000 Australia Telephone (+61) 2 9137 7300

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TZ Limited

www.tz.net

ABN 26 073 979 272

27 June 2022

ASX Announcement

TZ Limited Indicative 2[nd] Half FY2022 Performance

TZ Limited (ASX: TZL) (“TZ” or “the Company”) is now able to provide financial guidance on the 2[nd] Half 2022 Financial Year[1] . There have been serious challenges in “delivery and installation” resulting from the current volatility in the Global Supply Chain.

The Company is pleased to provide the following information:

• 2[nd] Half FY22 Revenue forecast circa $13.1m UP 61% on 1[st] Half FY22 ($8.1m) UP 56% on the corresponding 2[nd] Half of FY21 ($8.6m)

• FY22 Revenue expected to be circa $21m UP 31% on FY21 ($16.5m)

• 2[nd] Half FY22 EBITDA (Adj) circa $2m PROFIT $3.1m improvement on 1H FY22 adjusted EBITDA LOSS of $1.1m

• Forecast EBITDA (Adj.) FY22 $0.8m PROFIT FY21 $0.1m PROFIT

• Assuming no deterioration in business conditions, the company expects the strong momentum from the 2H FY22 to continue throughout FY23.

• A shift in focus from perpetual license sales to a subscription-based model (TZ Cloud) has grown MRR (Monthly Recurring Revenue) to a current $240,000 per month. It is expected that an additional $40,000 per month will be added in the near term MRR.

• The $2.5m Debenture has been rolled to October 31[st] , 2022.

1 The Company notes that the financial information within this announcement is presented on unaudited basis.

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Level 2, 40 Gloucester Street

The Rocks NSW 2000 Australia Telephone (+61) 2 9137 7300

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TZ Limited

www.tz.net

ABN 26 073 979 272

TZ is expected to retire this debt in the near future, however the Company believes it prudent to provide a “buffer” to normal working capital requirements whilst continued supply chain volatility persists. As an example, over the past six months, the Company has more than doubled inventory from $1m to $2.6m, a measure undertaken to mitigate against possible delays.

The Chair of TZ Limited Mr Peter Graham commented:

“The Board of Directors are confident the second half FY22 momentum will continue into FY2023”.

Authorised for release by the Board of Directors.

For further information, please contact:

Mario Vecchio

Chief Executive Officer

TZ Limited

mario@tz.net

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

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