Damstra : H1 FY22 Results Presentation

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Damstra Technology

H1 FY22 Results Presentation

28 February 2022

Financial data is provided on a pro forma basis except where explicitly stated otherwise

Presenters:

Johannes Risseeuw (Executive Chairman)

Christian Damstra (Chief Executive Officer)

Andrew Ford (Chief Financial Officer)

Disclaimer

This presentation includes general information about the activities of Damstra Holdings Limited ACN 610 571 607 (Damstra) and its affiliates and related bodies corporate (as defined in the Corporations Act 2001 (Cth) (Corporations Act) (together, the Damstra Group). This presentation is current as at 28 February 2022 (unless otherwise stated herein). The information contained in this presentation is for general information purposes only.

The information contained in this presentation does not constitute investment or financial product advice (nor taxation or legal advice) and is not intended to be used as the basis for making an investment decision. It does not take into account the investment objectives, financial situation, taxation position or needs of any particular investor, which should be considered when deciding if an investment is appropriate. You must consider your own investment objectives, financial situation and needs. You should conduct and solely rely upon your own independent investigations and enquiries, including obtaining taxation, legal, financial or other professional advice in relation to the information contained in this presentation as appropriate to your jurisdiction.

This presentation should be read in conjunction with any reports, financial statements, appendices or other documents or information that accompanies this presentation or which is otherwise announced or released by Damstra on or about the same time as this presentation. This presentation should also be read in conjunction with Damstra's other periodic and continuous disclosure announcements.

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ersonal	the Damstra Group does and will operate; weather and climate conditions; and the inherent regulatory risks in the businesses of the Damstra Group.
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RESULTS OVERVIEW

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Key financial and operating metrics in H1 FY22

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$13.4m	$27.8m	104%	0.6%
Revenue1	ARR3,4	Net client retention5,6	Client revenue churn5,7
16% growth vs. H1 FY212	15% growth vs. H1 FY212,3	vs. 114% in H1 FY21	vs. <0.5% in H1 FY21

73%	(2%)	$14.7m	$18.7M
Gross Margin	EBITDA8	Cash receipts3	Cash balance3
vs. 75% in H1 FY21	vs. 21% in H1 FY21	vs. $14.5m in H1 FY213	vs. $7.6m in H1 FY213

1.	Includes $0.2m of revenue associated with equity accounted joint venture
2.	Presented on a proforma like-for-like basis, excluding Newmont revenue
3.	As at 31 December 2021 or 31 December 2020, as applicable
4.	Annual Recurring Revenue. Recurring portion of exit month revenue on an annualised basis
5.	Calculation excludes Newmont
6.	Calculated as the increase in revenue generated from the prior period cohort in H1 FY22
7.	Calculated as prior year recurring revenue that was lost during H1 FY22
8.	Before IPO costs, share based payments, acquisition costs, impairment and other non-recurring costs	4

H1 FY22 Key Highlights

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	Rebasing the business	Post-COVID client trends			Technology		Future catalysts
•	The impact of losing one of our major	•	The COVID recovery is increasing	•	Strategic product enhancements are	• Conversion of existing opportunities
	clients has worked against us from a		demand and creating opportunities		receiving positive client feedback:		in North America
	leverage perspective, as lost		across the business, as clients are		•	Deeper integration between	• Facilities management vertical is an
	revenue and gross margin have not		now making purchasing decisions
	been offset by a lower cost base	•	Construction vertical growth			modules		emerging opportunity
•				•	Simpler onboarding and self-	• Continued product evolution focus to
A cost optimisation project has been		continues to accelerate. User
			configuration		ride the wave of infrastructure
	implemented with $1m of cost		registrations are tracking to new
						projects in Australia
	savings identified to-date and scope		highs in Q3		•	Safety, learning and
	to increase, noting that not all these	•	Net client retention or customer			forms/workflow modules	•	Unlocking the synergistic
	savings are immediate. Key areas
	are:			stickiness (excluding Newmont) has			working together seamlessly		opportunity of safety, learning and
					and penetrating deeper into		forms modules working together in
			returned to greater than 104%
	•
	Infrastructure hosting				clients' operations		an integrated fashion
	• Client churn (excluding Newmont)
	•	Software optimisation		•	A focus on deeper functionality,	•	Continued partnership solutions,
		has returned to <1%
	•	Client self-configuration	•				while simplifying usability		particularly those which lead to
	•	Office rationalisation	Numerous re-signed contracts or		•	Data analytics - the new frontier		valuable technology integration
		positive contract variations with Top			opportunities
•	To rebase the business and		10 clients - each of these clients are	•	The complete removal of legacy	• Inherent leverage in the business,
	strengthen the balance sheet, we		growing on a PCP basis		systems will lead to a lower cost
				with increased revenue having an
	completed a $20m capital raising in	•			base and the removal of associated
	In the last 12 months we have won			immediate and significant flow-
	December 2021
		93 new clients (excluding from		maintenance overhead		through impact on EBITDA and cash
•	We are investing heavily		acquisitions). While none are					flow
	internationally with annual cash costs		individually material, and the				• Converting North America into a
	of ~$4m, which at present are not		revenue is not recognized
						positive EBITDA and cash flow
	generating a return. The ANZ		immediately, they are expected to
						business. This provides a pathway
	business on standalone basis was		generate $0.9m of annual revenue
						for the Group to become free cash
	EBITDA positive and operating cash		on a full run-rate basis.
						flow positive1.
	flow breakeven in H1 FY22.
1.	Free cash flow defined as Operating cash flow and Capitalised development costs					5