Prepared for CUTIS Investment Roadshow October 24, 2018 UKRAINE - PowerPoint PPT Presentation

COMPANY PRESENTATION Prepared for CUTIS Investment Roadshow October 24, 2018

UKRAINE & IT OUTSOURCING  Ukraine is the biggest country in CEE with 45 mln citizens, 130 000 IT professionals working in Software Industry, with growth potential to 200 000 IT Professionals by 2020.  Ukrainian export of IT services totaled $3,6bn in 2017.  Ukraine is one of the leading IT outsourcing destinations, located in Eastern Europe. According to Colliers International, the country is 4th globally by the number of IT specialists. PwC ranked Ukraine 5th among Top 25 IT services exporters .  Gartner included Ukraine in the top 10 emerging-market locations for offshore services.  Long-lasting engineering legacy: first fully operational electronic computer in Europe was created in Kyiv in 1951.  European mindset & geographical proximity. Cultural openness and flexibility

UKRAINE & IT OUTSOURCING N-iX has its two main development centers in Lviv and Kyiv - two biggest hubs for IT Outsourcing services in Ukraine with almost half of all Ukrainian software engineers work. KYIV LVIV  The capital of Ukraine, large metropolis with  Being recognized as global emerging outsourcing almost 4 million population and 2 international destination, Lviv also offers one of the best quality of airports life in Ukraine.  Kyiv is the political and financial center of the  About 20,000 professionals work in IT sector in Lviv country and also serves as a main Ukrainian IT hub  High-quality technical education in three reputable housing more than 45 000 IT specialists universities. Around 5 000 young professionals graduate  Strong educational system with 68 universities each year that prepare future IT professionals. Over 16 000  City government supports local IT industry young professionals-engineers graduate annually  Lviv IT companies actively cooperate in supporting  Extensive presence of multinational corporations technical education and promoting the city as help in recruiting for managerial and administrative international IT hub organizational layers

N-iX KEY FACTS 50 % 2002 850+ 90% Of senior Year Founded Professionals Engineers engineers 5-130 100+ >85% 3-10 Teams Long-term Retention Rate Years client size, ppl engagements engagements

N-IX CORE SERVICE: DEDICATED DEVELOPMENT TEAM N-iX company builds engineering teams and is fully capable to set up development centers to extend tech companies in-house R&D. Service Highlights • Engineers are full-time allocated to work exclusively on the client’s projects on a long- term basis • Seamless integration of N-iX engineers with customer’s onsite team, including integration of processes, workflows, adopting to customer’s culture and sharing their strategic goals • Possibility to smoothly upscale/downscale the team • Expected attrition rate of <10% for this type of engagement • N- iX’s Delivery Director’s managerial support of engagement on every stage in terms of people, operations, delivery and account management • Regular service reviews and continuous service delivery improvement

OTHER N-iX SERVICES Software Product Development - full-cycle bespoke software product development services in a variety of technology stacks and business domains. We have in-house senior business analysts and solution architects to create tailored products from scratch. Mobile Application Development - full-cycle custom mobile development services for enterprise, consumer and game applications across all popular platforms. Software QA & Testing – to reduce high downtime cost between releases and avoid lack of software testing effort during project peak loads. Technical Support - comprehensive 2nd and 3rd line product technical support for software companies across various segments. Game Development & VR - full-cycle game development using Unity and Unreal Engine. Game Art Production - every aspect of Art Production pipeline starting from idea concept to fully animated PBR-ready characters and environmental assets. OpenText Professional Services (StreamServe and OpenText ECM consulting) allow companies to increase business processes efficiency with OpenText-based solutions.

INDUSTRIES WE SERVE Travel & FinTech & Banking Telecom Energy Hospitality Manufacturing & Media & Insurtech Hi-Tech Logistics Entertainment Education Automotive Agriculture E-Commerce

INDUSTRIES AND CLIENTS Financial Services Software & Hi-Tech Media & Entertainment Healthcare Telecom Insurance Education Travel & Hospitality Remittance Other industries Energy Finance & Banking Manufacturing

ENGINEERING EXPERTISE Embedded UX & UI Data Science Blockchain Design Software Game Machine Learning Virtual Reality Big Data Development & & AI & AR Art Studio High Load Enterprise Business Cloud Solutions Systems Mobility Intelligence

N-iX DELIVERY CAPABILITIES Roles Distribution Non-delivery personnel 10,2% 850+ 25 Software Engineering 56,0% Professionals Recruiters Software QA 17,5% Architecture 4,0% Project Management 3,0% Data Analysis 2,3% Creative (UI/UX Design) 4-6 75+ 2,0% weeks to Eng/mo Delivery Management 2,0% Hiring recruit Application Support capacity core team 1,5% Business Analysis 1,5%

N-iX OFFICES

N-iX Delivery Office Facilities: HQ in Lviv N-iX in Lviv occupies two separate office locations with the total area of 6’500 sq. m, able to house up to 800 ppl. N-iX plans to become a resident of Lviv IT Park: A-class office and academic district is planned to be commissioned in 2021. N-iX looks at taking 12’000 sq. m for 1500 employees.

N-iX Delivery Office Facilities: KYIV A-class office in a prestigious near-center location with total area of 2’000 sq. m, able to house up to 250 ppl

N-iX INDUSTRY POSITIONING Listed in Inc. 5000 Europe (ranking of the fastest-growing European Included in the list of top 20 Ukrainian and top 5 Lviv companies) and in IAOP Global Outsourcing 100 rating IT companies measured by size Big attention is paid to cybersecurity, company is ISO 27001 certified Proud to be long-lasting partner of Open Text – Canada's largest software company Constantly investing in local IT educational initiatives Co-founder and active member of Lviv IT Cluster – community of IT companies that cooperate to develop Lviv as global IT center

N-iX: KEY FINANCIALS 35 000 18,0% 16,0% 30 000 14,0% 25 000 12,0% 20 000 10,0% N-iX has shown 43% CAGR 8,0% 15 000 over recent years 6,0% 10 000 4,0% 5 000 2,0% 0 0,0% 2014 2015 2016 2017 2018E Revenue, $('000) EBITDA margin, % 2014 2015 2016 2017 2018E USD ('000) Revenue 5 833 8 116 14 492 24 137 32 591 Recurring EBITDA 711 1 022 2 305 3 445 5 442 EBITDA margin 12,2% 12,6% 15,9% 14,3% 16,7%

N-iX AS BUSINESS ASSET  Ukrainian IT market is growing at max 20% y-o-y. In contrast N-iX demonstrates 43% CAGR over recent years, constantly being among Ukraine’s most dynamic firms.  Majority of our clients work with N-iX on DDT model basis. This cooperation model enables strong client loyalty and long-term partnership. Such setup provides a continuous revenue-flow that ensures financial stability and allows long-term financial planning.  N-iX has talent pool, managerial experience and office facilities that are capable of absorbing larger operations. N-iX is therefore well positioned for the economy of scale .  N-iX developed comprehensive metric system that gives visibility of the entire organization in both financial and non-financial dimensions. In such environment, company can easily control its revenue and costs, as well as manage investments.  The company is debt free . N-iX has managed to self-fund its expansion.

N-iX: REVENUE STRUCTURE N-iX client portfolio is well diversified in terms of individual clients, geographies and industries. Such diversification reduces business risk and is a proof that N-iX can effectively sell and deliver across various markets. Revenue structure by geographies Revenue structure by clients

N-iX Shareholders Andrew Pavliv is N-iX co-founder and majority shareholder with controlling stake of 56%, and holds a position of company CEO. Andrew is also Supervisory Board Chairman at Lviv IT Cluster. Dmytro Kosaryev was among initial company founders but left operational roles in 2013. He now remains passive shareholder developing his own projects. Pavlo Deshchynskyy joined N-iX in 2007. He holds position of VP Delivery and has minority share at N-iX.

N-iX Mid-Term Strategy Objectives N-iX current objective is to continue rapid growth targeting $100M in annual sales. This goal is planned to be achieved in 5-years period. Expansion of sales presence on the UK, Canada and USA markets Opening new Delivery centers across Eastern Europe Gross Profit growth by increasing the value that N-iX delivers to its customers Subsequent EBITDA margin increase by controlling cost base

THANK YOU! www.n-ix.com nzhovtanetskyy@n-ix.com vbyy@n-ix.com