Infomedia : Chair and CEO AGM Addresses

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25 November 2021

ASX Market Announcements Office

2021 AGM ADDRESSES TO SHAREHOLDERS

The Company will address shareholders today at its Annual General Meeting (AGM), to be held virtually from 9:00am AEDT.

Further information about the meeting can be found at www.infomedia.com.au/agm

Pursuant to ASX Listing Rule 3.13.3, a copy of Chairman's and Managing Director's addresses to shareholders and accompanying presentation materials are attached with this release.

ENDS

This release was authorised by the Infomedia Ltd Board.

About Infomedia: Infomedia Ltd (ASX:IFM) is an Australian-based SaaS platform provider in parts, service, e-commerce and data insights solutions to the global automotive industry. Infomedia has led innovation in aftersales technology within global automotive distribution networks for more than 25 years and continues to expand its reach within the three regions in which it operates.

Please visit Infomedia's website https://www.infomedia.com.auand YouTube channel https://www.youtube.com/infomedialtdfor more information.

Further queries, please contact:
Daniel Wall	Tanya Thomas
Company Secretary	Head of Investor Relations & Communications
O: [phone]	O: [phone]
M: + 61 414 991 614	M: + 61 424 693 055

INFOMEDIA LTD

3 Minna Close, Belrose NSW 2085, Australia

[phone] | www.infomedia.com.au

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Infomedia Ltd

Annual General Meeting

25 November 2021

Chairman's address to shareholders

Dear fellow shareholders,

On behalf of the Board of Infomedia Ltd, thank you for your support during the year.

To our customers, thank you for your partnership during the year. Our purpose is to offer software, applications and data solutions that support your key objectives, increasing aftersales revenue, creating valued added customer experiences, and retaining customers to your remarkable brands.

I would also like to thank our team, many of whom are on the call this morning, for their persistence, hard work and commitment to our customers during a challenging year.

FY21 achievements

This morning, I would like to recap some of the FY21 achievements and a provide a quick review of our performance before touching on more recent events. I will also aim to address some of the key disruptive forces impacting the global automotive industry before handing over to our Interim CEO Jim Hassell, and CFO Gareth Turner.

Let me start by saying, your Board is feeling very confident about the business and the opportunities we see ahead. We have confirmed this morning we remain on track to deliver revenue in the range of $117 million to $123 million at the FY22 full year1.

Infomedia Ltd finished the year as anticipated delivering a solid financial performance overall. Revenue was up 3% to $97.4million; but was up 7% in constant currency. EBITDA increased 3% to $47.6 million in line with revenue, however cash EBITDA declined 4% to $20.4 million reflecting the significant development costs incurred in our Next Gen platform build.

Pleasingly, we saw a 13%2 increase in our exit ARR, or annual recurring revenue in constant currency as of 30 June to $98 million before we include the newly acquired SimplePart business. You will see more detail on this later in the presentation. This reflects some normalisation from Covid-19 impacts as our customers reopened and the contribution of some new business wins.

Your Board declared a final dividend of 2.30 cents per share bringing the total dividend to 4.45 cents per share, a 3% increase on the prior year.

Importantly, in the year since I last addressed you, we have secured several significant global customer wins including 3-to-5-year contracts with major OEMs3 including Ford, Mazda, Audi, Nissan and BMW.

1. FY22 revenue outlook assumes no adverse movements in foreign exchange rates and no further negative consequences from COVID 19
2. FY21 exit of 13.6% in constant currency (excluding SimplePart)
3. OE/OEM - original equipment manufacturer; automaker

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Jim and Gareth will provide some further insights into our sales momentum and provide some case studies that illustrate the breadth of our solutions.

The 12 months to 30 June 2021 were also characterised by three major achievements.

The first of these was the completion of the transition from our legacy software to Next Gen, a data- driven, integrated parts and service platform. The Microcat electronic parts catalogue (EPC) was upgraded from a technical reference tool to a powerful parts selling platform. The Superservice Menus platform was also substantially upgraded and streamlined adding more value and more insight for customers.

Investment in the Next Gen platform was necessary. We are a small company competing globally against much larger peers. We have been agile and entrepreneurial for years, but the foundations, the architecture of our business required updating and we took the opportunity to ensure we remain competitive for many years to come.

With the Next Gen platform, we are able to support our customers transition from selling manual and siloed parts and service to enabling an integration of the aftersales function with digital applications and data solutions that can be actioned. The value to our customers is shifting from a transactional relationship to the creation of consistent, individualised and extended customer experience with the automaker brand.

Next Gen was rolled out successfully to more than 220,000 users in 186 countries during the year with 92% of users reporting that the new Microcat EPC, a mission critical tool, makes them more efficient when identifying parts and preparing customer quotes. Next Gen was also central to Infomedia winning the Ford Europe contract announced early in the year.

The next significant outcome during 2021 financial year was an increase in sales of our Infodrive data and data insights products. Our exit ARR in that business grew by 41.2% in constant currency in the year to 30 June 2021. Technology advances in manufacturing and digital transformation are driving a significant increase in the availability of valuable automaker, dealership, and customer data. Infodrive collects, analyses, and identifies opportunities for automakers and dealerships to make faster, personalised and more profitable decisions in aftersales.

Finally, in June 2021 we completed the acquisition of US-based automotive e-commerce platform, SimplePart. This is an exciting business and an important and strategic extension of Infomedia's global platform offering. Traditionally, automakers have had limited direct contact with their customers. But consumers are demanding opportunities to connect with brands in a digital environment. Automakers and dealers are looking for opportunities to support their customers online beyond the purchase of a vehicle. We are excited about the cross-sell opportunities already identified between our Infomedia sales teams and the SimplePart team in all our regions.

This year's achievements coincide with a time when the automotive industry is evolving. Technology is disrupting all aspects of manufacturing. The pandemic and a focus on climate change globally, will also have a lasting impact.

Let me now turn to the opportunities we see as we transition to a new chapter in the company's journey.

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Transition to new growth

Earlier this year, Non-Executive Director Paul Brandling resigned from the Board for family reasons making way for the appointment of Jim Hassell as Non-Executive Director. Jim joined the Board in May 2021.

In October, Jonathan Rubinsztein resigned as CEO to pursue another opportunity in the technology sector. Jonathan made a significant contribution to the company setting in place several strategic initiatives that will contribute to Infomedia's future growth. Jim stepped into the Interim CEO role following Jonathan's resignation. Jim had an outstanding career as a technology executive and the Board is very confident the business will maintain momentum under his direction. Once a new CEO and Managing Director is appointed, our aim is to have Jim return to the Board as Non-Executive Director. The recruitment process for our new CEO is well underway and will consider both internal and external candidates.

There has been an understandable external focus in recent months about the departure of Jonathan and our former CFO, Richard Leon. And while their departures were earlier than we would have liked, they do present an opportunity for the other leaders in our business to step forward and for new skills, ideas, and relationships to join our business.

Gareth Turner, our new CFO, joined Infomedia in August. In a very short period, Gareth has put in place several processes to enable better internal reporting, laying the groundwork to provide an improved level of transparency and analysis of our business and key metrics. Gareth will share the early results of the finance teams efforts under his direction later in this meeting.

Jim and Gareth are supported by an experienced executive team. The average tenure of the senior leadership at Infomedia is nearly 9 years. This includes several founding team members who bring decades of industry experience, experienced executives who joined through M&A and team members who joined over the last 5 years adding to the depth and capability.

The Board has a high level of confidence in the executive and broader leadership team to continue to drive growth and innovation - a hallmark of the business.

The War for Talent

The technology industry, along with other sectors, is facing an unprecedented war for talent. The lack of global mobility of talented professionals, combined with new ways of working and a rapid transition to global digital disruption, have created a real challenge in recruiting and retaining staff.

We continue to invest in our people and through the year have introduced several initiatives to ensure we are competing for the best talent in all our markets. These initiatives focus on attracting, recognising, and rewarding outstanding contribution and retaining our team members with programs that support their whole lives, not just their careers.

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Capital Management

Our shareholders also frequently ask about our capital position and progress on strategic M&A initiatives. Infomedia has a strong balance sheet and is a highly cash generative business with more than $65 million in cash and equivalents at 30 June 2021. The company has no debt.

In April 2020, at the height of Covid uncertainty, we raised capital. At the time management was in advanced stage discussions with several potential acquisitions including SimplePart. Debt markets had effectively closed early in 2020 and our judgement was to bolster the balance sheet to provision both for uncertainty and opportunity.

With the acquisition of SimplePart earlier this year, we allocated approximately AUD $40 million, comprising upfront consideration of USD $24.5 million, plus an estimated earn-out of USD $8 million over three years.

The Board supports a strategy of acquiring logical product or footprint expansions which are close to our core, and which are accretive to earnings. We continue to refine our approach to acquisition targets and are confident that the opportunity to add to our portfolio remains strong.

Finally, through our dividend policy, we will continue to deliver a return to shareholders. We expect the dividends to continue to reflect the steady growth in the business.

I note, in response to a question we have received from a shareholder, that the dividend reinvestment plan will remain suspended until further notice.

Investing in the future

I spoke earlier about the successful transition from our legacy software to the Next Gen platform for our Microcat and Superservice applications. This investment was an important and necessary step for the business. We were determined to complete the biggest development in the company's history; simultaneously our revenues were impacted by the impacts of a global pandemic.

The combination resulted in a high ratio of R&D to revenue in the 2021 financial year, which we recognise. But it has also placed us in a position where we are competitive, supporting our customers and able to underpin our growth in our core products and our data services revenue. Gareth will talk later about the measures underway to provide greater insight into our R&D spend going forward, which we believe, will see a revised focus and improved ratios, post Next Gen.

This year's achievements coincide with a time when the automotive industry is evolving. I cannot recall a time when the automotive industry attracted so many positive news headlines. Technology, a focus on climate change and new ways of working and living are disrupting all aspects of the automotive industry.

Strategic focus

As a trusted partner to automakers, dealers, and suppliers to the industry globally, Infomedia is well placed to support customers as they increasingly turn to technology to solve complex issues and identify new areas for aftersales growth.