INVESTOR PRESENTATION Tech Project Holdings Pty Ltd October 2018 - - PowerPoint PPT Presentation

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CONFIDENTIAL - FOR DISCUSSION PURPOSES ONLY

INVESTOR PRESENTATION

October 2018

Tech Project Holdings Pty Ltd

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Tech Project Group - Board and Management

Martin Paech, CEO

Executive positions at Cable and Wireless, Mercury Communications and Optus Communications American Communications Network – CEO APAC and COO Europe. Contract position Telstra dingo blue - CEO Non-executive Board member of the Australian Film Television and Radio School (AFTRS), E-magine International (CRM), Da Vinci Marketing

Steve Hogben, CTO:

Macquarie Technology Fund Consultant to Telstra, Optus, Roadshow, Nine Network, and SkyNZ. Managed carrier products at Optus Communications Managed OTT products at Quickflix, Video Ezy and Blockbuster. Consultant to Vice President at Gartner, Senior technology and management roles for various NSW Health entities, Lightbox (Spark Ventures NZ), and investment companies

Russell Scrimshaw, Chairman

Executive positions at Optus Communications, Alcatel Australia, IBM, Telecom New Zealand Australia Pty Ltd and Amdahl Corporation.. Commonwealth Bank of Australia - Group Executive for Technology, Operations and Procurement. Australian Philanthropic Fund; the Scrimshaw Foundation, Scrimshaw Nominees P/L Non-executive Board member of the Garvan Institute of Medical Research Chairman of the Garvan Research Foundation. Fortescue Metals Group - Executive Director and Deputy CEO Non-Executive Chairman- Sirius Minerals Plc, Executive Chairman - Torrus Capital P/L

Fon Hah, CFO:

Head of Strategy at a high-growth technology company in Australia (co-owned by Microsoft and PBL) Department of Defence, Australia, as a special consultant to CASG’s Aerospace and Maritime Systems Divisions. Senior management positions in corporate strategy at Microsoft, Wesfarmers and Suncorp and gained M&A experience with PWC and KPMG. He is a Chartered Accountant of Australia and New Zealand.

Michael Gale, Director: Sales and Marketing

Historically Voice over Internet Protocol (VoIP) phones have been connected through physical PABX systems. This infrastructure requires a technician to manually plug phones into the required lines and configure a litany of services and functions attributed to each handset. In Australia the PABX infrastructure is supported by the Integrated Services Digital Network (ISDN) built by T elstra in all major cities for business phones. The infrastructure supporting these VoIP phones has now evolved beyond the physical PABX hardware to a virtual P ABX system configured in the cloud. As part of the National Broadband Network (NBN) rollout, T elstra will begin turning off the ISDN forcing all businesses and homes onto the NBN with cloud based VoIP infrastructure. A notice for the 18 month migration period was given in January 2018.

The disconnection of ISDN will commence 30 June 2019

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Australian Telephony has reached a “Tipping Point”

Problems with the “Tipping Point”

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• 1. All PABX systems require professional services to implement.

Cloud implementations are the most complex due to the immense optionality available.

• 2. Cloud implementations require 10+ software licenses per phone to support scores of functions.

The industry also offers hundreds of Over The Top (OTT) services such as “Skype for Business” and “Google Hangouts”.

• 3. The “Tipping Point” the Australian telephony market faces will exacerbate these Cloud implementation

issues as demand increases. These issues will increase costs for all companies involved and in turn pass costs onto end users.

• 4. The implementation of VoIP handsets hosted by Cloud systems has proven to be cumbersome often taking

days to weeks plus thousands of dollars in additional costs for professional services.

These already high professional services costs are set to explode over the coming 18 months with the decommissioning of the ISDN and migration to NBN

Solution for the “Tipping Point”

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The T ech Project Group is the sole proprietor of the fully developed software platform called MSPCUBE (the Cube). The Cube can efficiently configure VoIP phones and PABX systems in minutes not days, at a fraction of the professional services cost typically incurred by SMBs (circa 10 handsets to 100 handsets). Additionally, the Cube also empowers distributors, resellers, MSPs and SIs to configure, provision, and bill complex offerings involving multiple vendors on a subscription basis. This means all the Vendors, Wholesalers, Distributors and Resellers leveraging the Cube achieve greater sales penetration at lower cost to business owners and while increasing their profit margins.

For these reasons The Tech Project Groups’ MSPCUBE platform has cemented a partnership with the biggest provider of PABX systems in the world…..

Introduction to Alcatel-Lucent Enterprise (“ALE”)

• 100 year old telecommunications Original Equipment Manufacturer (OEM)

headquartered France

• Annual revenues of over 700 million euros.
• Best of breed products and services indicated by dominance of government, military and health

sectors globally where quality and functionality is paramount

• Sells through an established global channel of 3000 Distributors and 500,000 Resellers

globally, representing over 200 million devices.

• The largest provider of physical PABX systems in the world
• Only 2% of current revenue generated by cloud services

T ech Project has partnered with Alcatel to use MSPCube to simplify the configuration, provisioning and billing of their desktop handsets as the industry shifts to cloud based telephony infrastructure.

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ALE Current vs ALE using the Cube

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VENDOR VENDOR

How the Cube assists ALE and Channel Partners

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1. MSPCube simplifies the configuration, provisioning and billing of Alcatel Handsets 2. seamlessly move all ALE existing clients from any IP PBX technology to virtual, cloud-based PABX systems 3. Provides real time visibility of leads, sales and billing for all channel participants (Alcatel, Distributors, MSPs) 4. Removes large components on complex manual configuration typically performed by MSPs 5. Reduces human error and cost of professional services 6. Provides Alcatel with a cloud-based VoIP Handset as a Service (HaaS) solution on a subscription model making their products affordable for small business for the first time by: a) Removing the large up front Capex cost of the PABX hardware b) Reducing the cost of sales, implementation and support c) Providing a subscription based model that smooths the cost of Alcatel handsets which are best

• f breed and historically too expensive for small business

d) Simplifying complex monthly subscription billing Using the Cube ALE can now penetrate the SMB to Enterprise markets rapidly and effectively.

How we make money

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Addressable Market

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“The market for cloud telephony services is expected to reach US$4 billion (AU$5.4 billion) by 2026 as they become cheaper to operate than traditional telephony systems. The global market is expected to expand at a compound annual growth rate (CAGR) of 17.2% during the forecast period from 2018 to 2026, as enterprise mobility, mobile workforce, and

• ther benefits of cloud telephony services continue to be adopted.”

https://channellife.com.au

“The Australian UC market forecast to pass $1 billion by 2021. This is a huge growth area and it is becoming increasingly important for service providers to support their customers as they move to the cloud. A 2017 global survey found that more than half of all businesses are anticipated to adopt cloud based Unified Communications as a Service (UCaaS) by 2020 – with small business leading way (55% small business expect to take up UCaaS by 2020)”

https://www.nowtelecom.com.au

Gross Margin of the group improves dramatically over time

• Initial revenue is all Cloud Telephony in Australia

– 25% GM

• Mid term revenue grows from international Cloud Telephony provisioning across

ALE channel – 60% GM

• Long term revenue grows from provisioning software (MSPCube) sales

– 80% GM Cloud Telephony provides Tech Project with an opportunity to scale quickly and establish a global footprint.

5-year Gross Margin Mix

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5-year Revenue Mix

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• 10.0

20.0 30.0 40.0 50.0 60.0 70.0 80.0 90.0 100.0 FY19 FY20 FY21 FY22 FY23

Cloud Telephony Australia Cloud Telephony ROW MSPCube/ Marketplace

International Rollout

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• ALE and Tech Project will launch in Singapore, Indonesia and Japan in 2019 via

a strategic partnership with a target for over 800,000 handsets within the first 24 months.

• Soft launch in Singapore already commenced.
• The partnership with ALE is significant and is anticipated to yield over 4.6

million devices under management via MSPCube over 5 years

• Alongside the Handset offering, Tech Project will launch additional “As a

Service” product verticals with ALE and other other OEM’s

Investor Offering

The Note Extension The Convertible Note offering was extended by A$5.0m (from the initial A$4m) to fund the revised strategy of the recently strengthened Board which aims to see the Company cash flow positive by Q1 2019. Key Convertible Note Terms

• 16% coupon
• Each Note has a 1 for 2 free attaching option
• Company Pre-Money Valuation of $150,000
• ~$5m received to date

ASX Listing Ironside Capital act as corporate advisor and lead manager to Tech Project for the Convertible Note offering. Ironside Capital retain the exclusive right to list Tech Project

• n the ASX.

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Capital Table – Post $5m extension of Convertible Notes

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FACILITATORS FOUNDERS CONVERTIBLE NOTES 0.59% 2.56% 52.83% 44.02% 1.244% 5.433% MANAGEMENT EQUITY IN NOTES ONLY $0 CAPITAL INVESTED VIA NOTES EQUITY FULLY DILUTED SHARES CAPITAL INVESTED VIA OPTIONS OPTIONS ENTITIES 74.658% 45,000,000 22,500,000 $0 3,275,000 $0 750,000 $9,000,000 $0 $4,500,000 11,250,000 45,000,000 $9,000,000 100.00% 60,275,000 67,500,000 $13,500,000 100% 18.664% $9,000,000 $0

Management Performance Notes:

• 1. Steve Hogben December 2020 milestone - upon 2 consecutive quarters of forecasted EBITDA targets achieved to be vested 0.5% of

TPH in options on a fully diluted basis at the time of issue. Exercise price to be at a 25% premium to the most recent capital raising.

• 2. Russel Scrimshaw December 2018 and 2019 milestones - upon the achievement of an annualized EBITDA of 2018 and 2019 to be

vested 2.5% of TPH in ordinary shares each year on a fully diluted basis at the closure of the Convertible Note offering

Capital Table Assumptions:

• 1. Assumes all notes convert at A$0.20
• 2. Assumes all note holder and facilitator options exercised

$5m extension of Convertible Notes: Use of Funds

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THANK YOU

For further information, please contact Robert Gundelach at Ironside Capital E: rg@ironsidecapital.com.au M: 0424930789

Appendix – Handset as a Service

Tech Project has partnered with ALE to launch Handset as a Service (“HaaS”) to the small and medium business sector via both ALE’s existing distribution channel and through traditional PC distributors and their reseller and MSP channels. HaaS provides full cloud telephony service with advanced PABX functionality using MSPCube to orchestrate the provisioning, delivery and ongoing billing of the ALE equipment, services, broadband connectivity, voice traffic, call metering and associated services. ALE and Tech Project tested the HaaS offering in Australia via a soft launch in late 2017 and then moved to a full launch with one partner, Bluechip Infotech in May 2018. See https://bvoice.com.au In June 2018 ALE and Tech Project onboarded two additional distribution partners in Australia. In July 2018 ALE and Tech Project launched HaaS in Singapore in partnership with ACA Pacific, Tata Communications and Samsung.

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Appendix – BVoice Ordering Interface

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KEEP IT SIMPLE!

• 1. Select your hardware and software

Appendix - MSPCube: UI/UX

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FROM 3 WEEKS TO UNDER 3 MINUTES!

• 2. The Provisioning Process

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Appendix - MSPCube: UI/UX

Tech Project Holdings Pty Ltd Suite 2.2, 8 Clunies Ross Court Eight Mile Plains Queensland 4113

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The information contained in this Presentation or subsequently provided to the Recipient of this Presentation, whether orally or in writing by or on behalf of The Tech Project Group( “TPG” ) or its respective employees, agents or consultants (“Information”) is provided to the Recipient on the terms and conditions set out in this notice. The Recipient should not treat the contents of this Presentation as advice relating to legal, taxation or investment matters and should consult their

• wn advisers. This Presentation does not purport to contain all the information that a prospective investor may require. The Information may not be

appropriate for all persons and it is not possible for TPG to have regard to the investment objectives, financial situation and particular needs of each Recipient who reads or uses this Presentation. Accordingly, no recommendation or expression of opinion is contained within this Presentation. Before acting in reliance on any Information, the Recipient should conduct their own investigation and analysis in relation to the investment opportunity presented by this Presentation and should check the accuracy, reliability and completeness of the Information and obtain independent and specific advice from appropriate professional advisers. The Information may be subject to clarification and change and TPG may in its absolute discretion, but without being under any obligation to do so, update, amend or supplement the Information. This Presentation is not, and should not be construed to be, a Prospectus.