Sovereign Cloud : FY22 Preliminary Results Investor Presentation

only Sovereign Cloud Holdings Limited

useFY22 Preliminary Results

28 July 2022 ersonal

Australia's Sovereign Cloud Provider

Disclaimer

onlyThe FY22 financial numbers presented in this presentation represent preliminary estimates and are still subject to audit and finalisation.

Audited financial statements, within the Appendix 4E usefor FY22 are scheduled to be released to the market

on 26 August 2022.

ersonal2

Australia's Sovereign Cloud Provider

Continued investment in AUCloud's expanding national footprint

Revenues increased $1.7m (67%) to $4.2m

FY22 Highlights1

		Revenue	• Increased revenues reflect ramp-up of business operations, albeit below expectations
		Growth
		• IaaS Consumption Revenues accounted for ~91% of overall Revenues
only	Total	TCV Outstanding increased $0.5m (9%) to $6.5m at 30 June 2022
• TCV Closed, decreased $2.3m (30%) to $5.4m, noting FY21 included the AEC contract win of $2.8m in June 20212
Contract
		• Sales momentum adversely impacted by on-goingCOVID-19 interruptions and the Federal Election
		Value
use	• Sales pipeline for FY23 is already benefiting from the enhanced legislative framework, expanded sales team and improved focus
Capitalised	Net cash of $27.3m at 30 June 2022
• NEXTDC placement (19.99%) and entitlement offer raised net proceeds of $34 million in December 2021
for Growth	• Well capitalised to pursue ongoing investment across three pillars of growth: Platforms, Products & People

• AUCloud continues to scale up its operations in response to growing customer demand for sovereign cloud services

ersonal	Network	• Rollout of AUCloud's new Sovereign Bridge in June 2022 as an innovative customer on-boarding solution developed in response
to supply chain challenges in the wider market
expansion
• Opening of new Sovereignty Zones in Brisbane and Melbourne impacted by supply chain delays, now expected to commence in
	Q2FY23 and Q3FY23 respectively
Industry	Heightened market awareness in areas of data sovereignty and security
• The Security of Critical Infrastructure Act (SOCI) was recently amended, resulting in an expansion of AUCloud's addressable
Tailwinds	market in the Critical Infrastructure Sectors - refer page 19

• Government tenders are increasingly focused on how data sovereignty requirements are to be addressed

Note: Refer page 24 for Glossary.

1. Percentage changes expressed relative to FY21. 2. AUCloud TCV calculations exclude GST 3

use only
Financial Performance
ersonal	Australia's Sovereign Cloud Provider
4

Australia's Sovereign Cloud Provider

Profit & Loss1

	FY22 Underlying EBITDA loss increased by $3.9m (53%) to $11.3m		Profit & Loss Summary ($m)	FY22	FY21	Change
	as revenue growth was outstripped by investment costs attributable		IaaS Consumption Revenue	3.9	2.4	62%
	to the expansion of the national footprint		IaaS Services Revenue	0.4	0.1	nm
	•	Total Revenues increased $1.7m (67%) to $4.2m		Total Revenue	4.2	2.5	67%
	•	Cost of Sales increased by $1.3m (64%) to $3.4m		Cost of Sales	(3.4)	(2.1)	64%
only	- Increase in direct costs in line with greater IaaS Revenues
	Gross Profit	0.9	0.5	80%
		- Excludes AASB 16 right-of-use assets amortisation and interest charges
			Employee Expenses	(9.3)	(6.4)	46%
		attributable to data centre leases - refer Appendix B
	• Total Operating Expenses increased by $3.7m (44%) to $11.9m		Other Operating Expenses	(2.6)	(1.9)	39%
use	- Driven by 46% increase in Employee Expenses, with an additional (net) 26
	Total Operating Expenses	(11.9)	(8.2)	44%
FTEs (62%) joining AUCloud in FY22
	•		EBITDA	(11.0)	(7.7)	42%
	Loss after tax of $15.5m (FY21: $11.6m loss), largely reflects depreciation and
		Underlying EBITDA2	(11.3)	(7.4)	53%
		amortisation charges, with no tax expense benefit recorded in the accounts
		(refer Appendix B)
ersonal		Profit / (Loss) after tax2	(15.5)	(11.6)	34%

Note: Refer page 24 for Glossary.

1. Percentage increase expressed relative to FY21. 2. Refer page 23 for reconciliations of EBITDA to Underlying EBITDA to Loss after tax 5