Spirit Technology : FY22 H1 Results Presentation

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personalSpirit Technology Solutions Ltd (ASX:ST1) FY22 H1 Results | Feb 2022

ForSol Lukatsky | Managing Director Paul Miller | CFO

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FY22 H1 Results | Feb 2022

Record Sales Revenue growth of 54% driven by product and geographic diversification

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Solid H1 performance: FY22 H1 sales revenue of $65.9M, up 54% YoY, and positive underlying EBITDA2 of $4.2M achieved during lockdowns and seasonally slower first quarter. (Underlying EBITDA excludes

$2.5M of profit from consumer asset sale).

Bank facility renewal & increase: Spirit has received formal credit approval from CBA to extend the existing facilities by a further three years to 1 July 2025. The facility has also been permanently increased to $32.0M (from $25.0M).

Strong balance sheet: As of 31 December 2021, Spirit had $17.4M of cash and debt through its bank facility.

Record revenue sales growth of 54%: Product and geographic

diversification: Cyber security services accounted for 24% of revenue in H1 FY22, up from 5% YoY. Voice services accounted for 23% of revenue in H1 FY22, up from 7% YoY.

H1 FY22 Results Overview

Sales	e enue
e enue	ther Income
EBITDA
nderlying EBITDA			(	)
et	ro t After Ta	(	AT)	(	)
ash

Resilient business model: Increasing proportion of recurring/contracted revenue to 52% of total revenue in H1 FY22, up from 48% of total revenue in H1 FY21

1. EBITDA is a financial measure which is not prescribed by Australian Accounting Standards ('AAS') and represents the profit under AAS adjusted for depreciation, amortisation, interest and tax. EBITDA 2. Underlying EBITDA adjusts EBITDA to exclude business acquisition, divestment & integration costs, net fair value gain/(loss) on remeasurement of contingent consideration on business combinations

includes $2.5M of profit from consumer asset sale.

and share-based payments. Underlying EBITDA excludes $2.5M of profit from consumer asset sale.

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Cross-selling added services on digital infrastructure

One-stop-shop for Digital Workplaces

Internet Connections	Communications	Cyber Security	Managed Services	Cloud Solutions
▶ Business Fibre	▶ Mobile	▶ SD-WAN	▶ Managed Print	▶ Hybrid Cloud
▶ NBN Enterprise	▶ LivePBX	▶ Custom SD-WAN	▶ DR & BCP	▶ Private Cloud
▶ Fixed Wireless	▶ LiveCall	▶ Firewall	▶ IT Support	▶ Public Cloud
▶ Private Network	▶ Webex/Cisco	▶ Endpoint Security	▶ Managed IT	▶ LiveOffice
▶ Managed Router	▶ MS Teams	▶ Advanced Security	▶ Managed Wi-Fi	▶ LiveOffice Desktop
		Services	▶ Professional Service	▶ LiveOffice Exchange

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Mid-Market & Corporate

Contract Wins H1 FY22

Record sales in November (TCV: $12.2M) and December (TCV: $13.6M) will underpin revenue growth in 2H FY22 and beyond.

Spirit's push into mid-market and corporate continues to show large deal size wins (selection shown)

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Banking &

Financial Services

Two new contracts secured to provide industry leading cloud-based cyber threat detection platforms

TCV $3.3M

Services

New contract for a

sophisticated

network

segmentation

solution

TCV $2.6M

Healthcare Mining

After becoming Varonis'
first certified delivery
partner in Australia,	Large regional
Spirit won the largest	network deal to
Varonis deal in the	provide high speed
southern hemisphere to	Internet to multiple
date	mining sites.
TCV $2.1M	TCV $1.5M

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Customer Focus

Accelerating demand. . .

Fragmented solutions

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The digital requirements of modern businesses have accelerated

• Distributed workforce
• High bandwidth/fast speed requirement
• Migrating to cloud-based digital tools
• Conduct all activities (e.g. sales/support) online
• Integrate and manage many device types

A significant gap exists for

Spirit to be a one-stop-shop for

digital workplace solutions

…but there is n easy-to- deploy end-to-end solution

• Major telcos are not equipped to

help S B's orporates transition

to this new work environment

• Traditional IS s own 'road' but not the valued added services
• Business owners have to go to multiple service providers to create a solution
• Each ser ice pro ider doesn't own any issues that arise in the solution

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