Aerometrex : Appendix 4D and Half Year Accounts

ASX Code: AMX

ACN: 153 103 925

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Appendix 4D & Financial Statements

for the half year ended 31 December 2021

Reporting Period

Reporting period (Current Period):	For the half year ended 31 December 2021
Previous corresponding period (PCP):	For the half year ended 31 December 2020
Release date:	14 February 2022

Results for announcement to the market

	Dec 2021	Dec 2020	Change	Change
Key Information	$'000	$'000	$'000	%
Revenues from ordinary activities	11,339	8,574	2,765	32.2%
(Loss) from ordinary activities after tax attributable to members	(2,833)	(2,910)	77	2.6%
(Loss) for the reporting period attributable to members	(2,833)	(2,910)	77	2.6%

Overview of operating results

Refer to the review of operations within the Directors' Report for a commentary on the results of Aerometrex.

Dividends and distributions

No dividends or distributions have been paid during the period and it is not proposed that any dividends be paid. No dividends or distributions were paid during the previous corresponding period.

NTA Backing

Year	Dec 2021	Dec 2020
Value	$'000	$'000
Net tangible asset backing per ordinary security	$0.25	$0.30
Total number of shares on issue at period end	94,400,000	94,400,000

Entities over which control has been gained or lost during the period

There are no entities over which control has been gained or lost during the reporting period.

Associates and joint venture entities

There are no associates or joint venture entities.

Aerometrex Limited - Interim financial report for the half year ended 31 December 2021	1

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Independent Auditor's Review

The financial statements were subject to an independent auditor's review by Grant Thornton Audit Pty Ltd. The independent auditor's review report is attached as part of the Interim Report.

This half year report should be read in conjunction with any public announcements made by Aerometrex Limited and its controlled entities during the half year ended 31 December 2021 in accordance with the continuous disclosure obligations arising under the Corporations Act 2001 [Cth] and ASX listing rules.

Aerometrex Limited - Interim financial report for the half year ended 31 December 2021	2

Directors' Report

The directors present their report, together with the consolidated interim financial statements of Aerometrex Limited (referred to hereafter as 'Aerometrex'), comprising of the company and its controlled entities ('the Group'), for the half year ended 31 December 2021.

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Directors

The Directors of Aerometrex Limited during the half year ended 31 December 2021 and up to the date of this report are set out below:

Name	Role	Status	Resigned
Mr Mark Llewellyn Lindh	Non-Executive Director and Chair	Independent
Dr Peter Graham Foster	Non-Executive Director	Independent
Mr Matthew Duval White	Non-Executive Director	Not Independent
Mr Mark John Deuter	Managing Director	Not Independent	10 December 2021
Mr David Michael Byrne	Executive Director	Not Independent

Company Secretary

Name

Ms Kaitlin Louise Smith

Review of operations

The first six months of FY22 was again marked with the disruption of COVID-19, and its variants, through the impact of lockdowns, the restriction of travel across borders and certain supply change logistical issues that added complexity into the management of an aerial capture business. Despite the challenges that COVID-19 presented, the company delivered strong revenue growth on the previous corresponding period.

Key highlights for the reporting period included:

• 32.2% growth in total operating revenue from $8.57m to $11.34m.
• 80.4% growth in MetroMap subscription revenue from $1.51m to $2.72m with subscription revenue now contributing 24.0% of the group revenue, up from 17.6% in the previous corresponding period.
• Year on year growth in MetroMap Annual Recurring Revenue (ARR) of 81.4% from $3.31m to $6.01m and 25.1% growth since June 2021.
• Key milestones achieved in the US Operations with the recognition of $0.62m in revenue compared to $0 in the previous corresponding period.
• 35.9% growth in LiDAR revenue from $3.65m to $4.95m.
• The company has continued to invest during the reporting period in datasets for MetroMap and the US, its people, processes and systems, to enable the business to scale to drive recurring revenue for future growth.
• EBITDA improved from a loss of $0.14m for the 6 months to 31 December 2020 to a profit of $0.52m at 31
  December 2021.
• Available cash at 31 December 2021 was $12.27m with debt facilities available.
• Appointment of Mr Steve Masters to the role of Managing Director and Chief Executive Officer.

The company remains focused and committed to executing the growth strategy to deliver value creation for all stakeholders.

Aerometrex Limited - Interim financial report for the half year ended 31 December 2021	3

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US Operations

The US operations delivered its first substantial contribution to revenue during the reporting period, contributing $0.62m to the 3D product line. This revenue was generated from the sale of data models to companies such as Google and metaverse companies including Transmira Inc for use in their Omniscape and Terrestrial Sotware Development for use in their Lunaverse. Revenue was also generated from 3D project work undertaken for WSP, a global tier 1 engineering firm, for inclusion in some of their infrastructure projects. In October, the company launched the 3D store for the US data models which includes models for Denver, Los Angeles, Miami and San Francisco. Additional data models will be added as completed and be available for sale as off-the-shelf datasets.

Revenue Growth

Total operating revenue grew $2.77m in the half from $8.57m to $11.34m at 31 December 2021 representing growth of 32.2% on the previous corresponding period. This represented a record first half revenue for the company.

Operating Revenue

25,000		1H		2H

	20,000				20,091		20,941
						12,367
'000)($				9,994
15,000		9,112
Revenue			16,109
10,000				10,097				11,339
	5,000		6,997			8,574
	0
		FY19	FY20		FY21	FY22
					Financial Year Ended 30 June
Revenue			Dec 2021	Dec 2021	Dec 2020	Dec 2020	Change		Change
		$'000	% of Revenue		$'000	% of Revenue	$'000	%
MetroMap subscriptions	2,717	24.0%	1,506	17.6%	1,211	80.4%
Total subscription revenue	2,717		24.0%	1,506	17.6%	1,211	80.4%
3D			1,239	10.9%	711	8.3%	528	74.3%
LiDAR			4,953	43.7%	3,645	42.5%	1,308	35.9%
Photomapping			2,251	19.9%	2,394	27.9%	(143)	(6.0%)
MetroMap on demand	179	1.5%	318	3.7%	(139)	(43.7%)
Total project revenue			8,622		76.0%	7,068	82.4%	1,554	22.0%
Total revenue from customers	11,339		100.0%	8,574	100.0%	2,765	32.2%

Aerometrex Limited - Interim financial report for the half year ended 31 December 2021	4

• MetroMap, the company's Data as a Service (DaaS) subscription model continued to experience growth, increasing total subscription revenue from $1.51m in 1H21 to $2.72m in 1H22. This was a growth in revenue of 80.4%. The subscription revenue contribution to total operating revenue grew from 17.6% in 1H21 to 24.0% of total operating revenue in 1H22. MetroMap Annual Recurring Revenue (ARR) grew 81.4% Year on Year from $3.31m to $6.01m at 31 December 2021 and 25.1% growth since 30 June 2021.

For personal useRvenueonly($'000)

	MetroMap Subscription Revenue						Annual Recurring Revenue (ARR)
			1H		2H						Calculation: Monthly Revenue x12
4,000						7,000
			3,640
						6,000
3,500				2,134
										6,012
3,000								5,000
2,500						2,717	($'000)					4,806	4,938
					4,000
								4,262
2,000
						ARR	3,000
1,500									2,770	3,314
			1,506
1,000						2,000
	705								1,663
	344					1,000
500	523
							856
	242	182					0	357	548
0	102
				Sep 2019 Dec 2019 Mar 2020 Jun 2020 Sep 2020 Dec 2020 Mar 2021 Jun 2021 Sep 2021 Dec 2021
2019	2020	2021	2022

Financial year ended 30 June

• 3D revenue grew 74.3% from $0.71m in 1H21 to $1.24m in 1H22. The significance of this revenue is that half of this revenue or $0.62m was generated from the US operations and represents revenue traction. The company remains committed to and excited by the opportunity of our world leading 3D modelling service as it gains traction in the US.
• LiDAR revenue posted strong revenue growth of 35.9% from $3.65m to $4.95m. This was a strong result given continued border restrictions and lockdowns impacted the ability to capture data.
• Photomapping revenue declined 6.0% or $0.14m from $2.39m to $2.25m however this is consistent with the transition away from project photomapping work to the MetroMap subscription model as announced to the market in June 2021. Most of the project photomapping work has now been completed with the balance to be completed in 2H22.
• MetroMap on Demand declined from $0.32m to $0.18m which again is consistent with the intention of focusing on the MetroMap subscription model business to drive multiples of revenue rather than more bespoke projects.

Operating Costs

Total operating costs (excluding interest, depreciation and amortisation) increased by 21.0% or $1.87m from $8.90m to $10.76m. The increase in expenditure has been driven by:

• Investment into senior appointments of staff being Chief Revenue Officer (commenced June 2021) and Chief Information Officer (commenced August 2021) compared to the same period contributed to the increase in employment costs. These senior appointments were made to assist the company in scaling for future growth.
• Aircraft and project processing costs accounted for the bulk of the increase at $1.36m which is driven by a combination of increased project revenue driving cost growth and ongoing impacts of COVID-19 restrictions. The impact of the COVID-19 restrictions has driven costs through an increase in charter costs to complete capture as well as travel and accommodation costs with crews remaining in the field longer to manage border restrictions. Paramount to this remains our commitment to the safety and welfare of our teams as we navigate the ongoing impact of COVID-19 on the business and our personal lives.
• Increase in consulting and professional services was predominantly driven by the appointment of external recruitment consultants to undertake a global search for a new Chief Executive Officer. Mr Steve Masters has been appointed to the position of Managing Director and Chief Executive Officer following the retirement of Mr
  Mark Deuter in December 2021.
• The Queensland office relocated from Buderim to Maroochydore in May 2021. This resulted in a change to the

treatment of the lease under the accounting standards as disclosed in the annual report.

Aerometrex Limited - Interim financial report for the half year ended 31 December 2021	5