Actual Experience : Preliminary results for the year ended September 2020

25 February 2021

Actual Experience plc

(the "Group", the "Company" or "Actual Experience")

Preliminary Results

Actual Experience plc (AIM: ACT), the analytics-as-a-service company, is pleased to announce its preliminary results for the year ended 30 September 2020.

Financial highlights

• • Group revenue of £1.96m (2019: £1.93m), primarily generated from sales to Channel Partners

• • Gross profit increased 29% to £1.02m (2019: £0.79m)

• • Reduction in operating loss before exceptional item to £4.58m (2019: £6.26m)

• • Reduction in loss for the year to £4.68m (FY19: loss of £5.91m)

• • Cash at year end of £2.75m (FY19: £7.88m)

Operational highlights

• • Completed pivot from a managed services to a professional services offering

• • Switch to a professional services model resulted in a reduction of the cost base as well as improving operational efficiencies and reduced customer conversion times

• • All Channel Partners ready to use the Company's Human Experience Management ("HXM") Business Impact Assessment ("BIA") and Continuous Improvement ("CI") offerings

  • o Amendments made to agreements with two existing Channel Partners to accommodate new offerings

  • o No amendements required to Vodafone's agreement to sell the new offerings

Post period highlights

• • First large-scale Professional Services ("PS") engagement and subsequent deployment of a BIA project with a Channel Partner's large energy customer

• • Completion of £10m Placing in January 2021, to expand sales and support teams in response to the growing pipeline of sales prospects, and smoothly on-board new Channel Partners

• • Solid operational platform and sales funnel established by Channel Partners

• • Over four million addressable employees or seats identified by Channel Partners

• • Secured initial order from Oracle Corporation for the Company's BIA offering

• • Signed a three-year framework agreement with an American multinational computer technology company to resell the Company's BIA and CI offering

• • Completed first BIA project with legal firm Osborne Clarke

Dave Page, CEO of Actual Experience plc, said: "This has been a challenging year, but we have worked exceptionally hard to launch our new HXM offerings, BIA and CI for business leaders, enabling them to improve their digital business, look after employees, and improve operational efficiency. We believe that Actual Experience has the ability to become a significant global player in the market for Human Experience Management. We have a growing number of new business opportunities in the pipeline and, in addition our existing Channel Partners are expected to start delivering our PS-led, BIA and CI offerings to their customers, and our recent successful fundraise in January 2021 will allow us to capitalise on the current market opportunity.

"Whilst we will continue to monitor the wider market environment in regard to COVID-19, we are confident in delivering against our strategic objectives, and look forward to reporting on further progress with both new and existing Partners in due course."

Enquiries:Actual Experience plc

via Alma PR

Dave Page, Chief Executive Officer Steve Bennetts, Chief Financial Officer

N+1 Singer Advisory LLP

Tel: [phone]

Shaun Dobson

Tom Salvesen Iqra Amin

Alma PR Josh Royston Robyn Fisher Helena BogleTel: [phone]

About Actual Experience

Actual Experience's goal is to significantly improve the performance of the digital world.

The Company enables its partners to optimise their customers' digital ecosystem to increase productivity and enhance brand experiences through Human Experience Management.

Developed from 10 years of patented academic research and three patents, the Company's Human Experience Management Services analyse the human experience of any digital service. The Company's service provides organisations with actionable information whereby changes to the digital ecosystem can be made to optimise and improve digital experience for customers and employees. For any organisation, this means that their most valuable asset - their employees - are liberated from digital slow time, their online brand reputation can be protected and they can make informed ecosystem investment decisions.

Actual Experience is listed on the London Stock Exchange (AIM: ACT). Our corporate headquarters is in Bath, UK.

Actual Experience's unique and patented digital analytics-as-a-service is founded on cutting-edge research at Queen Mary University of London.

For further information please visitwww.actual-experience.com

Chair's Statement

I am pleased to report on the progress made during the financial year 2020 ("FY20"). In the first six months, we completed our pivot from a managed services to a professional services ("PS") offering. We have not only started

to see quicker customer engagements and deployment cycles shorten as a result, but we expect this new approach to provide us with a wider range of opportunities.

The second half of the year was dominated by the impact of COVID-19 which accelerated digital transformation and the increased adoption of hybrid home and office working. The urgent need for businesses to enable efficient and effective remote working underscores the relevance of our offering, resulting in increased engagement from our Channel Partners, both existing and new. Wellbeing and productivity play a vital role in the effectiveness of remote working. The effects of COVID-19 have caused businesses to focus more on digital collaboration tools to analyse human experience. A white paper published by Verizon and Boston Consulting

Group last June shows that Actual Experience's software has delivered tangible results in determining the cause

of lost productivity within businesses which in turn may identify wellbeing concerns.

Financials and cash

Revenue for the 12 months increased marginally to £1.96m (FY19: £1.93m), whilst gross profit increased 29% to £1.02m (FY19: £0.79m). In line with expectations, cash as at 30 September 2020 was £2.8m (FY19: £7.9m).

Shareholders and Placing

We are thankful for the strong support shown by new and existing investors in our recent fundraise announced in January 2021. The placing will allow us to expand our sales and support teams in response to the growing pipeline of sales prospects and smoothly onboard new Partners. Additionally, it will enable us to expand the

Company's technology development team to facilitate the development of enhanced cloud efficiency,

scalability, and increased automation of report regulation for the PS engagements.

People

In what has been an unprecedented time for businesses, our colleagues have adjusted seamlessly to remote working and I want to thank them all for their hard work throughout the year. As previously announced, the Group has restructured the business to align itself with the evolved sales model which has resulted in a reduction of the cost base as well as improving operational efficiencies. We welcomed Jamie Dunkley to the senior leadership team in March 2020 as Chief Operating Officer following the resignation of his predecessor, Robin Young in February 2020. Jamie has been instrumental in ensuring smooth business continuity during the pandemic.

Outlook

The market opportunity for Actual Experience is significant, and the Board believes that the Group is well positioned for considerable revenue growth, supported by an excellent, expanding portfolio of Channel Partners and customers. The initial success of our recently launched Human Experience Management offering has demonstrated the need for businesses to analyse operational efficiencies and employee wellbeing. We expect further market engagement over the course of the current financial year as our Partners and their customers continue to adapt to the permanent change in work practices and realise the benefits of our technology service.

Stephen Davidson

Chair

Chief Executive's Statement

As noted in the Chair's Statement, in the first half of the year we completed a pivot from a managed services- led offering to a professional services ("PS") led offering. The COVID-19 pandemic initially delayed the introduction of the PS offering as it diverted attention of the Company's Channel Partners towards implementing business continuity processes, not just for their customers but for their own organisations.

According to the McKinsey Global Survey of Executives1, "COVID-19 has pushed companies over the technology tipping point - and transformed business forever". The increased adoption of hybrid home and office working has accelerated digital transformation, significantly increasing the relevance and addressable market of our offering.

Commercial Milestones - year in focus

As our Channel Partners and their customers adapted to new ways of conducting business in light of the pandemic, Verizon, together with Boston Consulting Group, published a White Paper that discussed the workplace of the future and more specifically what businesses need to do to enable hybrid working (a mix of office and remote working). It is a testament to our strong relationship with Verizon and the relevance of these new ways of working that we were the only third-party vendor cited in the report. During the initial lockdown, we created the new Human Experience Management ("HXM") Business Impact Assessment ("BIA") offering. BIA helps businesses quantify the impact of digital business performance on their employees whether they are at home, in the office or elsewhere, and on their overall business. BIA assesses top level business metrics and objectives such as operational efficiency, operational inequality, carbon footprint and employee wellbeing. Depending on the extent of the business impact identified by the BIA, the customer may then choose to proceed to the HXM Continuous Improvement ("CI") service, which runs for a minimum of 12 months. BIA and CI use a seat-based pricing model with a 'seat' being an employee.

As previously announced, Verizon signed an extension to its Master Service Agreement to sell and use HXM. An amendment was made to our agreement with Accenture to facilitate the sale of the new HXM offerings. Vodafone did not require an amendment to its agreement to sell the new offerings.

Post-period end, we were delighted to secure an initial order from Oracle Corporation and sign a three-year framework agreement with an American multinational computer technology company, both for our HXM offering.

Sales and Marketing

Our new offerings have been well received. We completed our first BIA project with legal firm Osborne Clarke, who reported that the analysis was extremely useful in helping them to understand employees' work practices and parts of the business that required support to improve their digital experience. In November 2020, we agreed the first large scale BIA engagement with one of our Channel Partners and one of their customers, a large complex global energy supplier. Initial introductions and testing began in August through to full scale deployment and an order for 10,000 employees in November 2020.

These initial deployments indicate emerging evidence of a shorter sales cycle of just four months compared to the processing of our previous managed service offerings, which could take up to 24 months. Since August 2020, the Company's Channel Partners have rapidly established a list of target customers amounting to over four million addressable employees or seats. This number continues to grow.

Product Development