TZ LIMITED — Investor Presentation 2021

May 9, 2021

ASX: TZL Investor Update May 2021

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DISCLAIMER

The information contained in this presentation has been prepared by TZ Limited ACN 073 979 272 (Company).

This summary presentation was prepared with due care and attention and is current at the date of the presentation and should be read in conjunction with the Company’s Rights Issue offer booklet lodged with ASX on or about 7 May 2021, a copy of which is available on the TZ Limited website.

The information in this presentation is an overview and does not contain all information necessary for investment decisions. In making investment decisions in connection with any acquisition of securities, investors should rely on their own examination and consult their own legal, business and/or financial advisers. This presentation is not an offer, invitation, solicitation or other recommendation with respect to the subscription for, purchase or sale of any securities in the Company. This presentation has been made available for information purposes only and does not constitute a prospectus, short form prospectus, profile statement or offer information statement. This presentation is not subject to the disclosure requirements affecting disclosure documents under Chapter 6D of the Corporations Act 2001 (Cth). The information in this presentation may not be complete and may be changed, modified or amended at any time by the Company, and is not intended to, and does not, constitute representations and warranties of the Company.

While the information contained in this presentation has been prepared in good faith, neither the Company or any of its directors, officers, agents, employees or advisors give any representation or warranty, express or implied, as to the fairness, accuracy, completeness or correctness of the information, opinions and conclusions contained in this presentation. Accordingly, to the maximum extent permitted by law, none of the Company, its directors, employees or agents, advisers, nor any other person accepts any liability whether direct or indirect, express or limited, contractual, tortuous, statutory or otherwise, in respect of, the accuracy or completeness of the information or for any of the opinions contained in this presentation or for any errors, omissions or misstatements or for any loss, howsoever arising, from the use of this presentation.

This presentation may contain statements that may be deemed “forward looking statements”. Forward risks, uncertainties and other factors, many of which are outside the control of the Company can cause actual results to differ materially from such statements. Such risks and uncertainties include, but are not limited to, Company specific and industry specific risks such as reliance on software, technology and systems, third parties for the supply of electrical power to its data centres, key personnel, customer relationships, partnership relationships, supplier and manufacturers, competition, construction, technological developments and intellectual property, as well risks associated with the Company’s ability to raise sufficient funds to meet the needs of the Company in the future, and other general risks.

The Company makes no undertaking to update or revise such statements, but has made every endeavour to ensure that they are fair and reasonable at the time of making the presentation.

Investors are cautioned that any forward-looking statements are not guarantees of future performance and that actual results or developments may differ materially from those projected in any forward-looking statements made.

This ASX Announcement has been approved by the board of directors of TZ Limited

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TZ is a leader in access control, smart lock and self-serve locker bank systems.

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The TZ SMArt Lock

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TZ SMArt Works Software Platform

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USERS
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TZ Solution

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USERS
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TZ SMArt Device Solutions

Cyber-Physical Solutions for domestic, commercial and industrial applications…

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• › TZ SMArt Devices are the enablers of Industrial Internet of Things (IIoT) based customer solutions

› TZ SMArt Software delivers customer value by leveraging data from TZ SMArt Devices

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TZ SMArt Devices

TZ SMArt Devices are built for the Industrial Internet of Things (IIoT) … They gather data.

They communicate it. They take action.

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TZ Clients

TZ is a leader in access control, smart lock and self-serve locker bank systems.

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eCommerce Growth - Parcel Delivery Growth

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47 billion 83 billion 103 billion 220 billion
in 2014 in 2018 in 2019 in 2026
Source: which-50.com, Oct 2020; based on
research by Pitney Bowes.
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Click & Collect Sales

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• The pandemic led to a huge increase in Click & Collect sales and user adoption in 2020 in the US

• While this dramatic jump is unlikely to repeat, there is substantial growth expected in coming years

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Cheaper + better user experience = disruptor

Source: eMarketer, Jan 2021

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Business-To-Consumer | Click & Collect Transforming the user experience with better, cheaper and easier solutions to service a massive addressable market.

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Old People go to a Operating hours fixed Goods and If return is needed, model physical store to and may not be Wait in queue services may not will need to revisit buy product consumer-friendly be available and requeue in store

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Business-To-Consumer | Click & Collect

Transforming the user experience with better, cheaper and easier solutions to service a massive addressable market.

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Old People go to a Operating hours fixed Goods and If return is needed, model physical store to and may not be Wait in queue services may not will need to revisit buy product consumer-friendly be available and requeue in store New TZ model Purchase online Receive Pick up direct Can swap the product notification when from a smart immediately – no need from the comfort parcel delivered lockers for postal returns of your home Convenient and Benefits Purchase from all Stock availability is Straightforward consumer in control over the world clear returns

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Click & Collect: WesTrac

Australian Caterpillar dealer WesTrac using TZ to provide flexible delivery

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Business-To-Consumer | Click & Collect Transforming the user experience with better, cheaper and easier solutions to service a massive addressable market.

Existing clients

Addressable markets

• Retailers (i.e. IKEA, Bunnings)

• • Shopping centres (e.g. Westfield)

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Access Control - Day Lockers Well-positioned for growth with trusted partnerships with huge, well-regarded clients

Old Staff waste time model One locker Need a physical Limited trying to organise per employee key to access the who has access to oversight and locker audit trail which lockers

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Access Control - Day Lockers

Well-positioned for growth with trusted partnerships with huge, well-regarded clients

Old Staff waste time model One locker Need a physical Limited trying to organise per employee key to access the who has access to oversight and locker audit trail which lockers New TZ model Multiple people Secure sensitive Provide a hot Shared Easy integration can have access to information desking environment workspace and robust the same locker for employees storage software Locker sharing Secure access Enables oversight of Improved data driven Benefits saves space and control with audit management of locker decision-making money trail systems

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Access Control - Day Lockers

Well-positioned for growth with trusted partnerships with huge, well-regarded clients

Existing clients

Addressable markets

• Offices

• Co-working spaces

• • Hospitals

• Medical centres

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Westpac picture
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Access Control – Cabinet Security Premium, unconventional solutions with well-established partnerships with leading data centres.

Old Poor security Difficult to Can’t provide Limited model systems and manage multiple remote access oversight and no solutions facilities audit trail

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Access Control – Cabinet Security Premium, unconventional solutions with well-established partnerships with leading data centres.

Old Poor security Difficult to Can’t provide Limited model systems and manage multiple remote access oversight and no solutions facilities audit trail New TZ model Proactive Real-time remote Environmental Total remote data micro-protection monitoring and in-cabinet protection & visibility monitoring control Benefits Enhanced security, Multiple users and Versatility and Improved data driven protection and control uses enabled scalability decision-making

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Access Control – Cabinet Security Premium, unconventional solutions with well-established partnerships with leading data centres.

Existing clients

Addressable markets

• Offices

• Co-working spaces

• Hospitals

• Medical centres

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Education sector

Meeting the changing needs of a huge addressable market

Old Uni students have model to take time to go to the post office

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Students waits in Students and If return is needed, queue instead employees student needs to revisit of class wasting time and requeue in store

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Education sector

Meeting the changing needs of a huge addressable market

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Old Uni students have Students waits in Students and model If return is needed, to take time to go to queue instead employees student needs to revisit the post office of class wasting time and requeue in store New TZ Receive Less space Purchase online model notification when Student can pick up at dedicated to from the comfort parcel delivered their convenience mailroom/lockers of room Increased mailroom 24/7 access at No queuing Straightforward Benefits productivity and delivery preferred necessary returns performance destination

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Education sector

Meeting the changing needs of a huge addressable market

Existing clients

Addressable markets

• Universities (~9k post-secondary institutions registered with US government)

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Future opportunities

TZ SMArt Enclosure Concept

Large Cage Locker Concept

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How we generate revenue

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• SMArt locks

• Electronics

• Physical locker

• Software platform

• Ongoing hosting and maintenance

• Bespoke software solutions

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The next steps – where are we now

TZ already has:

• › Great underlying technology

• › Large and growing pool of A-list clients

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• › Servicing a fast-growing market

But the company hasn’t realised its true potential to date:

• › Historical overspend on operations and inefficient use of capital by previous Board and management

• › Cost of acquiring new business too high

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Turning the business around

The new board and executive team since 2020:

› Recruited more entrepreneurial management

› Restructured the balance sheet and implemented a plan to remove debt

› Reduced executive salaries

› Headcount reduction across the business

› Software enhancements to Centurion and SMArtworks

› Introduced new sales commission structure with greater transparency

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Turning the business around

As a direct result of these actions:

• › Reduced fixed operational costs by $2.5 million

• › 8% increase in first half revenues

• › The first positive half year profit result (EBITDA of $0.2 million in FY21)

› Recurring everyday revenue grown to $2.5 million

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The Board

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Peter Graham, Chair

Peter commenced his career with Ernst and Young before taking positions in treasury with Westpac and UBS. Manages a successful corporate advisory business with an extensive institutional client base.

Scott Beeton, CEO and Managing Director

Scott brings over two decades experience in the financial services industry to the role, including as managing director and CEO of Sequoia Financial Group and director of Viriathus Capital Australia.

John D’Angelo, non-executive director

John began his career as an engineer for BHP before moving into marketing and financial risk roles for the company, and subsequently taking up roles with JP Morgan, Chase Manhattan Bank and Hartree Partners.

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Senior Management

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Simon Van Es, Chief Operating Officer

Simon is the founder and former CEO of Finance News Network, and has also held senior roles in financial services, including Division Director for Sequoia Financial Group.

John Wilson, Chief Evangelist and Head of Australian & Asian Business John brings extensive global business experience garnered over a 20+ year career spanning multinational manufacturing, product innovation and commercialisation.

Adam Forsyth, Chief Technology Officer

Adam led development and delivery of technology enabled solutions across Mining, Construction, Industrial and Defence applications for over 25 years.

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Craig Sowden, Chief Financial Officer Craig is an experienced CFO with a record of delivering positive outcomes in complex and challenging environments, having previously been CFO of Newzulu Limited following a decade with Coates Hire.

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A growing opportunity

• 〉 Number of parcel deliveries forecast to reach 206 billion, with a value of USD $702 billion by 2026

〉 Internet-of-Things (IoT) businesses experiencing sizeable growth (tipped to hit USD $1.3 trillion in 2026)

• 〉 Retail, medical, delivery, and professional services demanding better access control

TZ is well-placed to capitalise on these trends

〉 New management successfully repositioning the company

〉 Restructured business with lower operational costs and overheads

〉 Pathway to recurring revenue

• 〉 Growing sales pipeline

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Looking to the future

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ANZ Sales Pipeline

As at Feb 2021

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Request for
Information FY20 FY21
$ value of deals where TZ is specified $0.7M $2.1M
Opportunities
Quoted # of deals greater than $500K 2 6
Secured Annuity Revenue ($A) $0.2M $0.5M
Pending
Purchase Decision
2.4x
FY 20
increase in
FY 21 opportunity pool
$1M $2M $3M $4M $5M FY20 ➔FY21
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US Closed Business FY21 YTD

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US Closed Business FY21 YTD
Last 30 days
Written Business
wins ($USD)
USD$
Customer Amount
($USD)
Client A $139,000
Client B $574,000
Client C $12,000
Client D $28,000
Client E $573,000
Client F $43,000
Client G $40,000
Client H $110,000
Client I $15,000
Client J $79,000
Client K $181,000
Client L $90,000
Client M $17,000
Client N $83,000
Closed business represents orders received from customers. Status:
Some orders received recently are not expected to be • Client O $80,000
Current: US$7,828,448
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Closed business represents orders received from customers. Some orders received recently are not expected to be delivered and recognised as revenue in FY21.

• Current: US$7,828,448

• • 99.94% of plan

• • On Target to hit plan of US$9,300,000

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The Platform &
Technology
GLOBALLY
SIGNIFICANT
PLAYER
The Last Mile
Solutions and
Access Control
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The team and
sales infrastructure
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TZ aims to be the brain behind every smart lock

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Focus for 2021 and beyond

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Increase recurring Develop open APIs Scale up sales and Expand Global foot Balance sheet everyday revenue for other smart lock distribution channels print stability providers to access of existing products the TZ platform

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TZ Com arison to other listed stocks p

	TZ Comparison to other listed stocks	TZ Comparison to other listed stocks	TZ Comparison to other listed stocks	TZ Comparison to other listed stocks	TZ Comparison to other listed stocks	TZ Comparison to other listed stocks	TZ Comparison to other listed stocks	TZ Comparison to other listed stocks	TZ Comparison to other listed stocks
	Stock code	Activity	Market Cap.	Enterprise Value (Mkt cap. + Debt)	Annual Revenue	Enterprise Value/Revenue	1st Half FY 2021 result	ARR
	ASX: RCW	Security & Compliance	$89m	$90m	$13m	7 times	$3m LOSS	✓
	ASX: ICE	Video Surveillance	$12m	$12m	<$1m	11 times	$3m LOSS	✓
	ASX: SNS	Smart City Platform	$83m	$84m	$4m	21 times	$0.5m LOSS	✓
	ASX: AR9	Security Platform	$64m	$64m	$1.5m	43 times	$1.5m LOSS
	ASX: LNU	Video Platform	$36m	$36m	$0.2m	180 times	$2.8m LOSS	✓
	ASX: ELS	Video/data transport	$62m	$62m	$1.8m	34 times	$3.8m LOSS
	ASX: DUB	Voice Recording Platform	$708m	$708m	$7.3m	97 times	$7.5m LOSS	✓
	ASX: ALC	Data platform Health	$394m	$394m	$22m	18 times	$2.5m LOSS
	ASX: LBT	Equipment Health Care	$23m	$27m	$2.5m	11 times	$6m LOSS
	ASX: BRN	AI Data Processing	$915m	$1.55bn	Nil		$14m LOSS
	AMS: INPST (InPost)	European Locker Banks	€7.9bn	€8.5bn+	€200m	50 times	€110m PROFIT	✓
	ASX: TZL							✓
		Smart Locking Platform	$14m	$25m	$18m	1.4 times	$0.2m EBITDA

Valuations taken from publicly available sources; Yahoo Finance and ASX website on 4 May 2021

TZL Capital Structure

ZL Capital Structure
Shares on issue	117.7m
Market Cap at $0.12	$14.1m	70.4%
		As at 19/3/21
Debt	$10.5m
Enterprise Value	~$25m

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