XPON TECHNOLOGIES GROUP LIMITED — Investor Presentation 2021

Dec 15, 2021

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XPON Technologies Group IPO Investor Presentation

DECEMBER 2021

Disclaimer

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This Presentation and has been prepared by XPON Technologies Group Limited ACN 635 810 258 (XPON or the Company). Shares in the Company are listed on ASX (ASX code: XPN)

The information in this Presentation does not constitute personal investment advice. The Presentation is not intended to be comprehensive or provide all information required by investors to make an informed decision on any investment in the Company. In preparing this Presentation, the Company did not take into account the investment objectives, financial situation and particular needs of any particular investor.

Further advice should be obtained from a professional investment adviser before taking any action on any information dealt with in the Presentation. Those acting upon any information without advice do so entirely at their own risk.

Whilst this Presentation is based on information from sources which are considered reliable, no representation or warranty, express or implied, is made or given by or on behalf of the Company, any of its directors, or any other person about the accuracy, completeness or fairness of the information or opinions contained in this Presentation. No responsibility or liability is accepted by any of them for that information or those opinions or for any errors, omissions, misstatements (negligent or otherwise) or for any communication written or otherwise, contained or referred to in this Presentation.

Certain statements in this Presentation, particularly those regarding possible or assumed future performance, potential business growth, industry growth or other trend projections, and any estimated earning or other performance measures, are, or may be, forward-looking statements. Such statements involve unknown risks and uncertainties, many of which are outside the control of the Company. Actual results may vary materially from any forward-looking statements and the assumptions those are based, and such variation are normal and to be expected. This Presentation is not a prospectus or other disclosure document under the Corporations Act 2001 (Cth) (Corporations Act) and will not be lodged with the Australia Securities and Investments Commission. This presentation is for information purposes only and is not an invitation or offer of securities for subscription, purchase or sale in any jurisdiction. The distribution of this Presentation (including electronically) outside Australia may be restricted by law. If you come into possession of this Presentation, you should observe such restrictions and seek your own advice. Any non-compliance with these restrictions may contravene applicable securities laws.

Neither the Company nor any of its directors, officers, employees, advisers, associated persons or subsidiaries are liable for any direct, indirect or consequential loss or damage suffered by any person as a result of relying upon any statement in this Presentation or any document supplied with this Presentation, or by any future communications in connection with those documents and all of those losses and damages are expressly disclaimed.

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© 2021 XPON Technologies Group Limited

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XPON is a Cloud and MarTech Company

Data privacy is of concern globally. Third-party cookies are being phased out. Companies are shifting to the cloud at rapid pace and COVID has accelerated a digital first approach.

XPON helps customers better leverage their First-Party data to unlock exponential growth.

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© 2021 XPON Technologies Group Limited

What XPON does

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CUSTOMER PROBLEM: How do I accelerate my digital modernisation to combat the shift in market dynamics and consumer expectations? XPON SOLUTION: Incrementally deploy the XPON Marketing & CX Technology stack.

XPON Lands

Digital maturity assessment, audit and roadmap of data, technology and strategic objectives.

XPON Expands

Lay the cloud infrastructure foundations.

Marketing and customer analytics and ensure all required data is being collected.

Ownership of advertising data and deployment of AdTech (Google Marketing Platform).

Cloud modernisation of customer applications and digital products.

UTILISING THE WONDARIS CDP

A centralised single view of customer.

Drives customer intelligence and automated digital ad activation across global digital channels.

ML and AI automation of sophisticated customer segmentation and personalisation.

Delivers ease of use by frontline marketing teams to activate First-Party Data in realtime and a mechanism to assist with compliance of privacy regulations globally.

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NEXT-GENERATION IMMERSIVE XR EXPERIENCES

Immersive XR digital experiences.

Capture and hold the attention of consumers at XPON MARKETING & CX STACK double the industry average at 9:35 mins.

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Privacy compliant and DIGITAL EXPERIENCES
deeply personalised
experiences that capture
behavioural and First-Party DIGITAL APPS & PRODUCTS
data.
Synchronizes with Wondaris ADTECH
to enrich data for analysis
and activation.
MARTECH / DATATECH
.
CLOUD INFRASTRUCTURE
DATA
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AI & ML
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© 2021 XPON Technologies Group Limited

Delivering two symbiotic offerings to customers

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Corporate Services

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Operating in Australia & New Zealand, United Kingdom, and Europe, with an engineering hub in Vietnam XPON Technologies helps its customers modernise their marketing and customer experience (CX) technologies through:

People & Culture Brand & Marketing

Finance Governance Legal

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XPON’s proprietary Customer Data Platform (CDP) that centralises customer and marketing data, leveraging AI for automated activation.

• Big Data Analytics (BDA), Machine Learning (ML) and Artificial Intelligence (AI);

• Supporting cloud infrastructure and technologies;

• ● Deployment and management of marketing technologies (MarTech) and advertising technologies (adtech); and

• ● Consumer facing applications (apps) and digital products;

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XPON’s proprietary Extended Reality (XR) platform for quickly and easily publishing of XR and 360 degree content in any supported channel.

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© 2021 XPON Technologies Group Limited

Customer snapshot

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Over 190 customers globally including prominent brands such as:

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XPO ~~N provides its customers with the following benefts:~~

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LESS REDUCED COMPLEXITY COSTS

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MORE ENGAGED
GREATER DATA & PROFITABLE
AUTOMATION OWNERSHIP CUSTOMERS
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Additional customers and case studies can be found at xpon.ai

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© 2021 XPON Technologies Group Limited

Big data, machine learning, analytics, cloud and app modernisation.

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A unique relationship and managed partnership is in place with Google Cloud and Google Marketing Platform to realise the value of leveraging first-party data for better marketing and customer experience outcomes for XPON’s customers.

Cloud

MarTech

Adtech

App Modernisation

Enterprise scale serverless data platforms, AI and machine learning tailored for marketing & CX.

Ad activation enablement on Tools and platforms that unlock enterprise ad platforms, to intelligence and enable integrated power strategies and customer and seamless marketing and programs supercharged with customer experiences. data and AI.

Accelerates digital transformation with rapid cloud native application modernisation that can increase ROI. Business critical customer facing applications and digital products.

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© 2021 XPON Technologies Group Limited

Wondaris Customer Data Platform (CDP)

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Privacy concerns globally are resulting in the removal of third-party cookies, which are relied upon heavily for targeted digital marketing[1] .

XPON’s proprietary data management solution imports its customers own customer data from multiple sources, integrates, cleans and organises the data to create a unified profile of each consumer.

XPON’s ML & AI enriches the data to enable advanced customer-centric functionality that is personalised and designed for higher ad conversion.

Integrates with key digital marketing platform such as Facebook and Google Ads for privacy compliant, simple click activation across multiple channels and campaigns.

• Unlocks value of siloed data for everyday use by marketers without the need for data engineering or data science skills .

• Enable personalised customer experience that drives increased ROI across content and media.

• Offers unique CDP functionality whereby the product can sit on its customers own cloud infrastructure in a platform-as-a-service (PaaS) implementation.

Key technology that powers the experiences and analytics delivered via XPON Technologies.

• Enterprise security, governance and a privacy first approach built in, providing IT & Data Analytics teams with peace of mind.

• Simplifies data use within the enterprise, drastically reducing activation times from weeks to minutes.

• Open platform with native integrations with Google Cloud and Marketing Platforms, Facebook, Salesforce and other leading vendors.

1 Source

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© 2021 XPON Technologies Group Limited

Go-to-market

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XPON’s strategy is to accelerate time-to-value for its customers by delivering a modern cloud and analytics foundation where the customer has ownership of their first-party data. This foundation is then leveraged to power personalised and intelligent digital marketing and customer experiences.

	HOW XPON LANDS ● Marketing & CX maturity assessment, audit and roadmap. ● Data collection, marketing analytics and foundational cloud infrastructure. ● First-party ownership of adtech software and data. ● Cloud data solutions and applications that deliver time-to-value.		HOW XPON EXPANDS ● Consolidation of marketing and customer data with Wondaris CDP; operationalise ML and AI. ● ML and AI automation of sophisticated customer segmentation, advertising and personalisation. ● Cloud modernisation of customer applications and digital products. ● Scaling cloud solutions, real-time data and applications and immersive XR customer experiences.		HOW XPON MAKES MONEY Recurring ● Software Licenses ● Usage Fees ● Managed Service Subscriptions Non Recurring ● Professional Services ● Onboarding & Implementation		HOW XPON GROWS ● Strengthen existing solutions (which may include strategic acquisitions) ● Expand uptake of solutions from existing customers ● Expand sales & marketing capacity ● Expand channel relationships ● Extend Wondaris platform ecosystem

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© 2021 XPON Technologies Group Limited

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Key Metrics

XPON is growing fast . Unit economics highlight the value delivered to its customers over the long-term and underpins a bright future.

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© 2021 XPON Technologies Group Limited

Fast ARR growth

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19%
TOTAL
253% GROWTH QoQ
TOTAL $1.8m
GROWTH YoY organic Q1 FY22
192%
ORGANIC $1.6m
GROWTH YoY acquisition FY21
$11.0m
organic FY21$5.0m $9.2m ARR
ARR September
2021
June 2021
$2.6m
ARR
June 2020
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Refer to glossary for definitions Based on audited FY21 financial accounts and unaudited management accounts as at 30 September 2021

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© 2021 XPON Technologies Group Limited

Unit economics demonstrate growth flywheel

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Exceptional customer retention rate and CAC payback period demonstrates opportunity to scale rapidly

99.6[%] AVERAGE MONTHLY CUSTOMER RETENTION RATE

119[%] REVENUE RETENTION RATE

$ 706k LIFETIME VALUE PER CUSTOMER 25x LTV/CAC RATIO

$ 28k CUSTOMER ACQUISITION COST (CAC) 6[mth] CAC PAYBACK

$137.1m TOTAL CUSTOMER LIFETIME VALUE

Refer to glossary for definitions Based on audited FY21 financial accounts and unaudited management accounts as at 30 September 2021 12 | xpon.ai

© 2021 XPON Technologies Group Limited

FY22 1st quarter highlights; expanding margins

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Recurring revenue model focus, with higher margins exhibited as the customer relationship expands

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$
1ST QTR POST
3.03m 62 [%]
INTERNETRIX
REVENUE Q1 FY22 GROSS PROFIT MARGIN ACQUISITION
Q1 FY22
MARGIN EXPANSION
PRO FORMA WITH
INTERNETRIX 10 PPTS GROSS
ACQUISITION MARGIN EXPANSION
62%
12 [%]
gross profit margin
NON RECURRING REVENUE 52% Q1 FY22
gross profit margin
88 [%] FY21
RECURRING
REVENUE
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Refer to glossary for definitions Based on audited FY21 financial accounts and unaudited management accounts as at 30 September 2021

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© 2021 XPON Technologies Group Limited

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Leadership

Founder-led , complemented by a board with S&P/ASX 200 and global tech leadership experience. Supported by entrepreneurial divisional heads with people and culture at the fore.

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© 2021 XPON Technologies Group Limited

Leadership team

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Phillip Aris, Experienced Chair and public company Jennifer Killian, Non Executive CEO/MD, specialising in professional services Group CMO Chairman and emerging tech. Currently on the board of Credit Corp (ASX:CCP). Formerly Countplus (ASX:CUP) CEO/MD and Head of Credit Cards BOARD EXEC at Commonwealth Bank (ASX:CBA) Matt Forman, Tech entrepreneur and respected industry Founder, Managing veteran with over 22 years experience owning Director & Group and leading high growth digital Chris Rozic, CEO businesses. Extensive leadership experience CEO - AUNZ working and partnering with global tech vendors. BOARD + EXEC EXEC Tim Ebbeck Experienced technology leader and ASX Non Executive director. Board experience at ReadyTech Ben Fogarty,CEO - UKEU Director (RDY.ASX), Tymlez (TYM.ASX), IXUP Limited (IXU.ASX). Formerly CEO at SAP (ANZ), CEO BOARD Oracle (ANZ), CCO of SAP (APJ), CCO of NBN Co, EXEC as well as CFO of Unisys South Pacific and TMP Worldwide. Leanne Wolski, Over 20 years experience senior finance roles Simon Pereira, Group CFO for ASX and NYSE listed companies. Formerly CEO - Platforms CFO for Amaysim (ASX:AYS) and Australian EXEC Finance Director and Company Secretary for EXEC Western Union Australia. Member of the Institute of Chartered Accountants and is a graduate member of the Australian Institute of Company Directors.

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Marketing executive and experienced board advisor with more than 20 years’ experience with B2B SaaS companies ranging from Silicon Valley startup to FORTUNE 500. Former GM of Marketing and Channels for WiseTech (ASX:WTC). Member of the UNSW Business School Alumni Advisory Board and the Australian Institute of Company Directors.

Over 12 years senior marketing experience as previous National Marketing Manager of Betta Home Living and marketing for Knight Frank. Previously co-founder of Ark CX, a machine learning and sentiment analytics company established in 2017.

A senior digital strategist and product innovator, proven in creating and growing digital engagement products in the UK and internationally. Founder of several disruptive SaaS startups, Ben is recognised as a digital leader in the UK tech space.

An experienced leader within the SaaS-based marketing technology sector, Simon has 23 years’ experience in sales and marketing, business operations and management. Career has focused on marketing technology, analytics and attribution across a wide variety of sectors.

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© 2021 XPON Technologies Group Limited

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IPO Structure & Use of Funds

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© 2021 XPON Technologies Group Limited

IPO structure & use of funds

Significantly oversubscribed IPO, raising the maximum of $12.5m with an enterprise value of $48m and with over 50% of the share capital owned by board and management post listing

Shareholder structure	Shares (m)	Holding (%)
Board and management (excl. ESOP)1	158.1	52.1%
Other Investors	60.5	19.9%
Pre-IPO	22.6	7.4%
IPO	62.5	20.6%
Total	303.6	100.0%
Unlisted options2	37.9
Capital structure
Offer price		$0.20
Market capitalisation ($m)		60.7
Cash ($m)3		13.1
Debt4		0.1
Enterprise value		47.7

Use of Funds		$m		%
Sales & marketing growth		7.1		57%
Product development,
expansion and delivery		1.5		12%
Working capital		1.6		13%
IPO costs		1.8		14%
CAPEX		0.5		4%
Total		12.5		100%

Escrow and free	foat
Escrow		54.4%
Free foat		45.6%

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• 1 Excludes any shares acquired under the IPO

• 2 Unlisted options relating to granted ESOP at IPO and lead manager options

3 Approximate cash at bank at IPO date, plus gross IPO proceeds, minus IPO listing cash costs

• 4 A$0.92m debt outstanding related to COVID UK loans using 30 June 2021 month end rate AUD/GBP of $0.54 from rba.gov.au

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© 2021 XPON Technologies Group Limited

Appendix 1: Glossary

Annualised Recurring Revenue (ARR): represents monthly contracted recurring revenue multiplied by 12. An annualised measure of the revenue that XPON expects to earn from its customers on a repeatable basis. This metric shows the impact of new customer contracts less any churn from customers leaving or downgrading their contracts.

Year-on-Year (YoY) ARR Growth Rate (%): shows the change in XPON’s ARR over a rolling 12-month time frame. This metric demonstrates the impact of the acquisition of new customers, the retention of customers and the expansion of existing customer contracts less any churn from customer’s leaving or downgrading their contracts over a 12-month time frame.

Average Revenue Per Customer (ARPC): calculated as annual revenue for the last 12 months divided by the number of customers at that time (and divided by 12 to get a monthly view).

Monthly Retention Rate: the percentage of customers that are retained on a monthly basis and are not lost due to customer churn over the last 12 months (and divided by 12 to get a monthly view).

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Customer Acquisition Costs (CAC): calculated by total customer acquisition costs spent on acquiring customers over the last 12 month period divided by the number of customers acquired during the period. It includes 80% of the salary costs of all sales & marketing team members and 100% of sales commissions, advertising costs, costs for customer marketing activities and resources.

CAC Payback: the average number of months that it takes for XPON to receive back its customer acquisition costs.

LTV/CAC Ratio: LTV divided by CAC, expressed as a ratio to indicate the net return on the cost of acquiring a customer on average, after cost of sales and before operating expenses.

Customer Revenue Retention Rate (CRRR): the percentage of recurring revenue retained from existing customers over the last 12 months. This accounts for increased revenue from existing customers utilising more of XPON’s solutions and lost revenue due to churned customers.

GTM: Go-to-market, meaning the strategy by which XPON wins business.

Lifetime Value (LTV): LTV per customer is the gross profit expected on average from a recurring customer over their lifetime. This is calculated by taking the average customer lifetime (1 minus the monthly retention rate to get monthly churn, then 1 divided by churn) multiplied by ARPC, multiplied by the gross margin percentage for the last quarter. Total LTV represents the total gross profit XPON expects to receive from its current recurring customer base by taking the average LTV per customer and multiplying it by the number of recurring customers.

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© 2021 XPON Technologies Group Limited

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Contact

For Investors: investors@xpon.ai

For Media: marketing@xpon.ai

© 2021 XPON Technologies Group Limited

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