Yojee : Quarterly Activities Report & Appendix 4C - Dec 2021

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19 January 2022

Yojee December Quarter Q2 FY2022 Activity Report

Hub Expansion Strategy On Track

HIGHLIGHTS

• Enterprise customers and hubs expand, validating Company's strategy and exponential revenue growth capacity with revenue up 58% on prior quarter to AU$531k (up 160% same quarter prior year), Cash Receipts up 56% on prior quarter to $346k
• Success with Container and Pallet hub strategy which results in higher revenue per transaction and expansion into Europe; key drivers in quarter where recurring type revenue being the main contributor to results
• 11 live hubs (3 hubs going live late in reporting quarter not yet contributing meaningfully to revenue), further 3 under implementation plus advanced discussions for further hubs across all 4 enterprise clients
• Strong cash runway (AU$15.4m) to support hub development, along with the promising 'Smart
  Connected Warehouse' product in beta phase places the Company in an exceptional position for further growth across coming quarters and in the longer term

Yojee Limited (Yojee or the Company) (ASX: YOJ), is a cloud-based software as a service (SaaS) logistics platform that facilitates the flow of freight movements into a single ecosystem, making the complex process of managing land transport simple and reducing carbon emissions for a greener planet. The Company is pleased to provide commentary regarding its activities during the December ended quarter, Q2 FY2022.

OPERATIONS AND GROWTH

The global acceleration of digitisation and digital transformation provide strong tailwinds for Yojee, which although has seen variation in project speeds due to Covid, is now driven via strong business leader commitment and customer wide focus on the use of technology to drive ESG initiatives, shipper visibility and efficiency.

Following full year FY2021 Trade Revenue of AU$1.06m, the December Q2 FY2022 Revenue of AU$531k demonstrates an implied annual revenue run rate multiple of AU$2.12m (4 x AU$531k) in the 3 month period immediately following which demonstrates and validates the exponential acceleration of the

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business via its global leader and network strategy. The December Quarter revenue represents 160% year on year growth as the Company continues to support its customers' key digitisation strategies.

In terms of expenditure, Net Cash from Operating Activities outflows reduced 3.6 % to AU$1.3m, with a focus on investing in research and development, execution on expansion hubs and customer success. This has led to demonstrable efficiency gains in areas such as time to deployment and go live across hubs, entrance into the European market and the successful proof of concept with a major enterprise of the Yojee 'Smart Connected Warehouse' product. All of these initiatives open up significant short, mid and long term revenue opportunities to support exponential revenue growth across a 10 year horizon and beyond.

Yojee ended the quarter with a strong cash position of AU$15.4 million allowing for continued strategic execution of key initiatives and the company exceeding expectations in terms of number of top 10 enterprise customers and regions in the short term.

MANAGING DIRECTOR'S UPDATE AND OUTLOOK

Yojee Managing Director Ed Clarke said, "The Company was able to realise the incredible work it did in previous months to hasten rollouts and growth whilst building customer satisfaction through investment and execution on the product roadmap. Last quarter I stated we see the results coming from our activity and strategy, and already this quarter we can see that happening, validating the Company's strategy and exponential revenue growth capacity.

Notwithstanding ongoing covid effects, we continue to lead with innovation and customer centric decisions which has been reflected in our incredible revenue growth in the quarter. Yojee is significantly growing its revenue without significant reductions in its embedded growth potential. We are really encouraged that we are deploying faster and faster, with examples of under 4 weeks from signature, whilst having a healthy roadmap of new hubs and clients in place.

We are very focused on execution and growth and are excited for a strong calendar 2022 in both market share and revenue growth."

Current Enterprise Client Pipeline, Implementation and Roll-Out1

Yojee's Platform continues to be delivered in line with implementation schedules set out by its base of existing global Enterprise Clients. These clients total 4 which are global top 10 logistics groups. See the end of this announcement for further information and links to prior announcements of contracts signed.

Late in the quarter, 3 hubs were implemented and went live becoming revenue generating, however had little impact on the December quarter due to timing. Hubs undergoing implementation at the end of the quarter total 3, and are expected to be live in the current quarter (Q3 FY2022) representing meaningful expansionary and go-live activity from all 4 of Yojee's contracted global top 10 logistics groups.

The 10 live and revenue generating Logistics Hubs in APAC and a first hub in Europe for a total of 11 hubs validates the plan and builds the foundations for progressive growth of future hubs, transactional volume and revenues in the Enterprise Client space (see below table).

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Growth Opportunity and Growth Levers

The Company has significant growth potential in its pipeline embedded in its existing global Enterprise clients' APAC footprint which it is focused on growing over the next three years accounting for 126 hubs1, plus a strong pipeline of logistics operators around the region and in new regions as demonstrated in the quarter.

Yojee is focused on further developing its embedded growth within and beyond its current hubs in APAC with existing Enterprise Clients and is in advanced discussions.

Additionally, the Company is having success in the Small and Medium Enterprise space, with a growing number of independent, 'Yojee Logistics Network Partner' (partner to a global top 10) and country leading companies joining as clients or in advanced stages of discussion. These clients represent a significant mid to long term opportunity for the Company as the strategic focus evolves.

Hubs Rollout Summary - Yojee Platform

	Hubs undergoing		Hubs implemented		Hubs		Hubs embedded		Proven value of a
	implementation		(revenue generating)		total		growth rollout		hub
							(over 3 years)		(12 month period)

	Total
			3		11 (9%)2		14 (11%)2		1261		$300k
	(this announcement)
	Total
			6		8 (6%)2		14 (11%)2		1261		$300k
	(prior quarter)
Note: table excludes recently announced expansion contracts which are at a planning stage.

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Yojee 'Smart Connected Warehousing'

Following the launch of 'Yojee Labs' (Labs) in September 2021, a commercial beta model of this first solution to come out of Labs, 'Smart Connected Warehousing' using IoT, was launched during the quarter. This follows testbed development and moving proof of concept (POC) programs into commercial discussions. See ASX announcements: 1 September 2021and 15 December 2021. A partnership was signed with HERE Technologies to enhance the solution in late December 2021 - see ASX announcement 29 December 2021.

YoRate pricing module

Yojee released the 'YoRate' pricing module into closed Beta status during the quarter, its most significant product upgrade in 2021. Live testing in commercial environments is underway. This solution delivers granular profitability and procurement data to enable real-time and analysis of profitability across a matrix of factors such as per movement, per customer and per service type. See ASX announcement 30 November 2021for further detail.

Logistics Network Partners

The Company has grown its network of downstream logistics partners and has reached 100+ downstream network partners working under its current Enterprise Clients (subcontractors).

The addition of logistics network partners is a substantial achievement for Yojee and its customers in building ecosystems to support transactional revenue growth. The Company sees strong potential in this area for future growth. See the March 2021 quarterly report for commentary on network benefits (ASX announcement 19 April 2021).

Small and Mid-SizedRoll-out

The Company signed several agreements with small and mid-sized companies throughout the quarter in the SME sales program.

Yojee Platform

The Yojee Platform continues to achieve strong value add for its Enterprise Clients as demonstrated by improvement of delivery efficiency and strong customer feedback through both formal reviews and statistical surveys to the user base.

Transactional volume

The Yojee Platform processed 366,139 'planned delivery'3 transactions during the December quarter across its live Logistics Hubs in APAC and Europe regions. The variation is attributed to changes in movement types and patterns (between containers, pallets and parcels) assigned by our clients and their customers for execution. Containers and pallets equate to less actual volume but higher per movement revenue.

Transactional volumes are expected to grow as existing and new Hubs are deployed across APAC and entry into Europe during the quarter, in line with the Company's 126 Hubs embedded growth roll-out pathway.

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FINANCIAL RESULTS4

Record Revenue and Cash Receipts were achieved in the quarter. Revenue from Ordinary Activities (Trade) were AU$531k in Q2 FY2022, up 58% on the prior quarter (Q1 FY2022) and up 160% on the same quarter in the previous year (Q2 FY2021). Yojee's revenue model consists of a combination of monthly subscriptions, transactional revenues and platform implementation fees.

Cash Receipts were AU$346k in Q2 FY2022 for the December, up 58% on the prior quarter, and up 47% on the same quarter in the previous year.

EMPLOYEE ADDITIONS

New hires were made into key areas of the business during the quarter to support deployments with existing Enterprise Clients, in customer success and in product. This is in line with the embedded growth objectives and the Company's long term global ambitions.

CORPORATE

Annual General Meeting (AGM): The Company held its AGM on Tuesday 30 November 2021 passing all resolutions. The Results of Meeting can be viewed here. The Chairman's Address and AGM Presentation can be viewed here.

Cash position: Yojee maintains a strong funding position and cash runway of AU$15.4m cash at bank (31 December 2021).

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