TZ LIMITED — Investor Presentation 2021

Mar 25, 2021

ASX: TZL Investor Briefing March 2021

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DISCLAIMER

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.

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

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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
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https://which-50.com/global-parcel-volume-exceeds-100-billion-for-first-time-ever/

But last-mile delivery remains unchanged

Home delivery

• 〉 43% of customers report package theft[1]

• 〉 You must be home to take delivery of many items

• 〉 Damage – left in elements

• 〉 Safety and tampering concerns

• 〉 Disputes around confirmation of delivery Post Office

• 〉 Inflexible collection hours

• 〉 Long lines at post office

• 〉 Rural communities facing increased wait times

• 〉 No choice of delivery location

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1 https://www.crresearch.com/blog/2020-package-theft-statistics-report

THE NEXT WAVE IS LAST MILE DELIVERY

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Taking the last mile further

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TZ Last Mile Solution for Package Delivery

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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

• › Cost of acquiring new business too high

• › Losing years due to poor decisions made by previous management

• › Overheads that were greater than needed to be

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Turning the business around

The new board and executive team since 2020:

› Recruited younger entrepreneurial management

› Restructured the business’ 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 cash flow positive 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

https://which-50.com/global-parcel-volume-exceeds-100-billion-for-first-time-ever/

Immediate Growth Markets

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WesTrac click and Collect

Australian Caterpillar dealer WesTrac using TZ to provide flexible delivery

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Nedbanking on a winner TZ powers Nedbank card collection

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Education sector gets SMArt US universities represent growing market base

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TZ Smart Locker Business – Educational Sector

There are 9,463 post-secondary institutions 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.

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TZ Smart Locker Business

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• › 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 centre security, protection and control.

TZ SMArt Cabinet Security

Secondary Functions:

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TZ SMArt Devices Primary Function: Cabinet Level Security

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Turn DC Lights On

Sense Motion

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Sense Temperature Turn DC Cooling Up Increase

TZ SMArt Solution – DC Cabinet Security

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TZ SMArt
Cabinet Security
City of New York
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TZ SMArt Day Lockers

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ANZ WORKPLACE TRENDS

PRIOR TO COVID-19:

• 73% of Employees worked in the office full-time

• 21% of Employees worked from home occasionally (5% worked 3 days a week)

• 4% of Employees worked from home full-time

POST COVID-19:

• 56% of Employees prefer to work in the office full-time

• 25% of Employees will work from home predominantly 3 days a week

• 15% of Employees prefer to work from home full-time

THIS MEANS …

• Increasing requirement for workplace flexibility

• Need for systems that support dynamic workplaces

• ● Increase in demand for Smart Locker solutions for Personal Storage, Package Management and IT Asset Distribution

Workplace Services Survey FEB 2021

TECHNOLOGY TRENDS

MARKET INSIGHTS:

• End of Trip Lockers now standard utility for all office buildings – need to have dynamic system

• Customer preference for cloud based solutions

• Desire to upgrade existing Electronic Locker installed base to accommodate post COVID workplace needs

THIS MEANS …

• Every new building or refurbishment will have a requirement for End of Trip Smart Lockers

• Migration away from on-premise hosting to cloud based subscription solutions increased annuity opportunities

• Significant upgrade potential SW upgrade play

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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 SALES PIPELINE

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*Current Pipeline consists of 587 Deals

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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 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	TZ COMPARISON TO OTHER LISTED STOCKS
	Stock code	Activity	MKT. CAP	Enterprise Value MKT.CAP + Debt	Annual Revenue	Enterprise Value/Revenue	1st Half FY 2021 result	ARR
	ASX: RCW	Security & Compliance	$90m	$92m	$13m	7 times	$3m LOSS	
	ASX: ICE	Video Surveillance	$11m	$11m	<$1m	11 times	$3m LOSS	
	ASX: SNS	Smart City Platform	$111m	$111m	$4m	28 times	$0.5m LOSS	
	ASX: AR9	Security Platform	$68m	$68m	$1.5m	45 times	$1.5m LOSS
	ASX: LNU	Video Platform	$60m	$60m	$0.2m	300 times	$2.8m LOSS	
	ASX: ELS	Video/data transport	$66m	$66m	$1.8m	36 times	$3.8m LOSS
	ASX: DUB	Voice Recording Platform	$400m	$400m	$7.3m	55 times	$7.5m LOSS	
	ASX: ALC	Data platform Health	$300m	$300m	$22m	15 times	$2.5m LOSS
	ASX: LBT	Equipment Health Care	$28m		$2.5m	11 times	$6m LOSS
	ASX: BRN	AI Data Processing	$1.22bn	$1.22bn	Nil		$14m LOSS
	AMS: INPST (InPost)	European Locker Banks	€9.2bn	€10bn+	€200m	50 times	€110m PROFIT	
	ASX: TZL	Smart Locking Platform	$9m	$21m	$18m	1 times	$0.2m EBITDA	

Valuations taken from publicly available sources; Yahoo Finance and ASX.com.au on 23 March 2021

TZL Capital Structure

TZL Capital Structure
Shares on issue	96.2m
Market Cap at $0.10 Debt	$9.62m $11.75m	70.4% As at 19/3/21
Enterprise Value	~$21m

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