2019 Annual Results Investor Presentation Daniel Rabie (CEO) And - PowerPoint PPT Presentation

2019 Annual Results Investor Presentation Daniel Rabie (CEO) And Paul Haworth (CFO) 3

Daniel Rabie Paul Haworth CEO From 2017 CFO From 2017 2015 to 2017: COO of Reckon (ASX:RKN) with 7 years in senior corporate and operational fjnance revenues growing to A$97.8m in 2016, leading roles with UK listed groups. Previously EMEA Finance Development, Marketing and HR. Director for Dialight plc. 2010 - 2015: Strategic Director at Reckon, guiding Founded Dialight’s light-as-a-service business. company direction across multiple geographies 9 years with Deloitte advising a range of public and and product categories. private clients in the technology and sofuware sector. 12 years experience in the sofuware industry. Proud father of 2. Proud father of 2. 2

OUR MISSION To make people productive and happy 3

Results Summary Total Revenue Recurring Revenue Total Recurring Revenue £’m £’m % 87% 12.7 11.4 90% 86% 10.9 9.5 9.3 8.0 7.8 6.5 83% FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 Annualised MRR At End Of Period Adjusted Loss Fully Expensed Development Spend £’m £’m £’m FY16 FY17 FY18 FY19 12.3 2.8 2.6 2.5 2.4 10.3 8.8 (0.6) (0.8) 7.1 (1.2) (1.7) FY16 FY17 FY18 FY19 FY16 FY17 FY18 FY19 4

Our products Document Management Productivity DONE 5

Summary by business Document Corporate Management Total + Shared SmartVault Virtual Cabinet Total GetBusy GBP £’m GBP £’m GBP £’m GBP £’m GBP £’m GBP £’m 4.2 +25% 7.2 +16% 11.4 +19% - - - Recurring revenue 4.3 +25% 8.3 +11% 12.7 +15% - - - Total revenue (1.0) -36% 3.4 +42% 2.4 +45% (1.4) -41% (1.6) -7% (0.6) +29% Adjusted profjt / (loss) Annualised monthly recurring revenue Paying users Net cash £12.3m 65,850 £1.7m +19% +7.0% 6

Document Management 7

The Problems We Solve Wasted time dealing with information issues can lead to a loss in an organisation’s total productivity.* 21.3% Information chaos Email complexity Misfiling & search Stop duplicate files, content Control security risks, track files, receive Prevent significant search time per disorganisation, and data overload. alerts, automatically file attachments. worker per day looking for lost files. Poor security Compliance costs Legal approvals Meet regulatory, audit and litigation Digital signatures and smart workflows View audit trails, reduce risk of requirements to prevent fines and damages. significantly reduce contract turnaround time. confidential leaks and hacks. Version control Document access Information silos One version of the document seen by Log into your document system Integrates with your existing software and everyone, no duplicates and confusion. from outside the office. systems so all your files live in one place. 8 *ICD 2012

Our document management products SmartVault Virtual Cabinet 20,599+ paying subscribers 45,251+ paying subscribers Cloud SAAS document management and portal. On-premise document management with cloud portal and mobility. US origins. Now expanding in UK. UK and ANZ focus with nascent US expansion. Largest vertical: SME accounting and bookkeeping fjrms. Largest vertical: large and medium sized accounting fjrms. Driven by transactional, inbound sales model. Driven by enterprise, outbound sales model. £4.8m of annualised recurring revenue. £7.5m of annualised recurring revenue. 31% ARR growth in 2019. 14% ARR growth in 2019. 9

Powerful Growth Drivers GDPR (General Data Consumer expectation of Protection Regulation) digitised services Worldwide Privacy And Digital transformation and Security Laws productivity initiatives 10

Our Customers: breakdown by industry 3% Financial Services 3% Manufacturing 3% Healthcare 17% Financial Services 1% Legal 6% Insurance 1% Insolvency 28% Other Virtual Cabinet SmartVault 1% Education 1% Legal 1% Manufacturing 17% Other 56% Accounting & Bookkeeping 62% Accounting & Bookkeeping 11

Our Markets - Typical Niche UK, USA, Australia, New Zealand Accounting & Bookkeeping 1.7m People 200,000 Firms £350m Estimated Annual Market* *Management estimates 12

Resilient end-markets and low customer concentration Largest 20 Customers: 8% Accountancy 21st to 40th: 5% User Segment 41st to 60th: 4% c60% of our paying users are 61st to 80th: 3% in accountancy. 81st - 100th: 3% Very Low Customer Robust, consistently growing sector. Concentration Resilient to macro-economic factors. Capitalise on political, economic Remaining Businesses 77% and fiscal change. 13

Our Competitors Within our specific niches Virtual Cabinet SmartVault Pureplay Competitors: Pureplay Competitors: iManage Citrix ShareFile Docusoft OneView eFileCabinet Invu Doc.It Practice Management Competitors: MyDocSafe DONE Iris Practice Management Competitors: Thomson Reuters CCH Axcess CCH Axcess Thomson Reuters 14

Deep integrations with a range of products 15

Our Strategy De-risked growth based on existing customers, products and capabilities. Deliver long term, Open greater sustainable growth addressable markets Virtual Cabinet SmartVault Sustained growth in profit and Sustained growth in high quality cash generation recurring subscription revenue Vertical market expansion Scale US Cautious US expansion Vertical market expansion DONE Upsell to existing customer base Capitalise on new UK channels Ongoing cost control Drive ARPU improvements 16

Productivity 17

Our New Product: GetBusy What it does: Assigned to me Productivity app for teams. 3 Catch-up Organises tasks and communication into intuitive threads. In progress Assigned to me 10 Helps teams become more New York project organised and accountable. Organize Simple, elegant design that is Phone new client efgortless for the user: CONNECTIONS ADD • Easy delegation Hire HR manager • Auto-prompting Book weekly meeting • Pause and resume tasks Emma Ryan 2 • Bulk contact import Kickoff workshop • Smart tagging and intuitive Mark Scott 3 organisation Results presentation 1 Katie Rush 18 Discuss proposal

GetBusy: The Opportunity My tasks No other established application in this space. Horizontal product: broadens our New addressable market. Launch website Nick → You Initial marketing leads and sales suggest strong demand for a product solving these problems. In progress Send info pack Katie → You In progress Hire intern You → Mark 19

GetBusy: Where we are now Assigned to me 3 Catch-up Participants: App now available on In progress multiple platforms. Assigned to me 10 Growing base of retained users and New York project paying users. Organize You Emma Phone new client Inside sales and customer success Sarah is assigned to do this Launch new website team in place Q1 2020. CONNECTIONS ADD Hire HR manager In talks with various potential Send info pack channel partners. What does Emma need to do? Book weekly meeting Clear targets in 2020 for Emma Ryan 2 Hire intern customer acquisition. Extra information Kickoff workshop Send contact Mark Scott 3 Attachments Results presentation Facebook advert 1 Katie Rush Discuss proposal Create Shop for milk 8 Oliver Green Research data tool 20

Results & Metrics 21

Where are we now Total revenue Group recurring Group adjusted loss £12.7m (+15%) £11.4m (+19%) £(0.6)m (+29%) Net cash Paying users Group ARPU £1.7m (-30%) 65,850 (+7%) £186 (+12%) 22

SmartVault Focus on growth in recurring subscription revenue 2019 2018 GBP £’m GBP £’m Revenue growth from combination of Recurring revenue 4.2 3.2 +25% new users and improved monetisation Revenue 0.1 0.1 of base. Total revenue 4.3 3.3 +25% Channel established in UK with TaxCalc partnership. COGS (0.8) (0.4) Gross margin reduction due to migration to AWS. Gross profjt 3.5 2.9 +21% Signifjcant investment in current and future growth, including building UK SG&A (3.6) (2.6) team and expanding US. Development costs (0.9) (1.0) Major product investment to be made in 2020. Adjusted profjt / (loss) (1.0) (0.7) (36)% 23

SmartVault Key Metrics 2019 2018 2017 20,599 19,118 17,925 +7.7% in 2019 Paying users 232 194 169 +22% in 2019 following price plan rationalisation ARPU £ 4.8 3.7 3.0 +31% in 2019 at constant currency Annualised MRR £’m 0.0% 0.5% 0.7% Net MRR Churn 4:1 6:1 3:1 LTV:CAC 24

Virtual Cabinet Focus on growth in profit and cash generation 2019 2018 GBP £’m GBP £’m Recurring revenue growth from user Recurring revenue 7.2 6.2 +16% growth and ARPU. Revenue 1.1 1.3 Non-recurring revenue decline due to Total revenue 8.3 7.5 +11% shifu in model to pure subscription. SG&A savings from lower commissions, COGS (0.2) (0.2) operational headcount and reduction in operational footprint in Australia. Gross profjt 8.1 7.3 +11% Development back to normal runrates following switch of resource to SG&A costs (4.0) (4.5) SmartVault in 2018. Development costs (0.8) (0.4) Adjusted profjt / (loss) 3.4 2.4 +42% 25

Virtual Cabinet Key Metrics 2019 2018 2017 45,251 42,425 39,518 +6.7% in 2019 Paying users 165 156 143 +6.7% in 2019 ARPU £ 7.5 6.6 5.7 +14% in 2019 at constant currency Annualised MRR £’m 0.1% 0.3% 0.7% Net MRR Churn 26