Urbanise com : Annual General Meeting Presentation and Addresses

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Urbanise

Urbanise.com Limited

Ground Floor, 201 Miller St,

North Sydney NSW 2059

ABN: 70 095 768 086

W: urbanise.com

ASX RELEASE

CHAIRMAN AND CHIEF EXECUTIVE OFFICER'S ADDRESSES AND PRESENTATION TO ANNUAL GENERAL MEETING

Wednesday, 24 November 2021: In accordance with ASX Listing Rules, Urbanise.com Limited (ASX:UBN) provides a copy of the Chairman and Chief Executive Officer addresses and accompanying presentation to the Annual General Meeting.

This announcement has been approved for release by the Board of Directors.

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For further information please contact:

Kim Clark

Company Secretary

T: [phone]

E: [e-mail]

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Chairman's Address

The 2021 financial year was another significant milestone for Urbanise as we completed the PICA roll-out, following the complete redevelopment of the Urbanise Strata platform. The roll- out cements our long-term relationship with PICA, the largest strata manager in Australia.

At the end of September 2021, our closing cash was $6.8m with no material debt. This follows the capital raise completed a year ago with net proceeds received of $6.5m. The strong financial position of the business allows us to continue to invest in the growth of both platforms.

The purpose of the capital raise followed a decision to further invest in the Facilities Management business, to take advantage of the sizeable market opportunity across APAC and the Middle East.

Our ability to drive growth in these markets has been strengthened by an increase in our sales and marketing resources over the past 12 months. We also welcomed Sam Cuccurullo as a Board member, who has been invaluable in helping us with the strategy of driving growth across Facilities Management.

We are pleased with the progress so far with 'greenshoots' of sales conversions, validating the market opportunity. This includes securing contracts with Colliers in Australia and Nakheel in the Middle East - both have significant FM requirements.

The Board is closely monitoring the build up of the FM sales pipeline and there are good indications for growth. We recognise that there is still work to be done in the next few quarters to show meaningful growth, in light of long sales lead times in this market.

In regard to Strata, the completion of the PICA roll-out frees resources to scale the strata markets in the Middle East and Australia. Our strata platform is well positioned delivering legislative compliance to the sector and a unique integration with the FM platform.

Finally, I will re-iterate the statement I made at the full year - the mandate for Urbanise is clear, to drive revenue growth so that the business achieves cash flow breakeven. The priority for the second half of FY2022 is to convert the sales pipeline and reduce the current cash burn levels.

We will continue to invest in product development to enhance existing solutions, expand the number of features and applications, and develop new solutions.

I would like to take this opportunity to thank our CEO Saurabh Jain and his team, for their efforts and dedication throughout the year. We have made real progress in streamlining our core software business and delivering a product that is highly valuable to our customers.

I would also like to thank the Board, our customers and you, our shareholders, for your support during the year.

For personal use only

Urbanise

Urbanise.com Limited

Ground Floor, 201 Miller St,

North Sydney NSW 2059

ABN: 70 095 768 086

W: urbanise.com

I look forward to working with the Board, Saurabh and his team as we continue to grow the business in 2022.

Chief Executive Officer's Address

Good morning ladies and gentlemen and I would like to extend my welcome to today's AGM. I'd also like to thank our shareholders, board members, staff and clients who made 2021 another exciting year for Urbanise.

As the COVID pandemic continues, our team has continued to operate remotely. However, in some regions, our staff have started to visit customers and work from our offices. Whilst we have missed seeing our overseas colleagues, there has been no material business impact from COVID and we hope to start travelling next year to see colleagues and customers face-to-face.

The financial highlights of our FY2021 results include strong ARR and revenue growth as our business continues to scale.

I am pleased to report that across year, the demand of our platforms was evident with our recurring revenue base increasing by 28% to $10.44 million at 30 June 2022:

• Total revenue was up 19%, driven by a 16% increase in recurring license revenue and a 35% increase in professional fees.
• Strata revenue increased by 19% driven by the PICA roll-out.
• FM revenue increased by 21% despite the loss of a legacy Middle East customer, which was more than offset by new customer growth.

Our year-end backlog of $1 million included around $760,000 for the Nakheel project secured in February, which is allocated across both platforms. I'm pleased to report that we were able to complete the roll-out of Nakheel during Q1 FY2022.

As Almero mentioned earlier, in November 2020 we undertook a $6.5m capital raise, which was well supported by new and existing shareholders. The purpose of the capital raise was to invest in sales and marketing to accelerate Facilities Management revenue growth.

At the end of June, our closing cash position of $7.8 million and reflects our disciplined approach to expense and working capital management.

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Q1 Result

Our progress during Q1 FY2022 shows total revenue growth period on period of 15% with a 29% increase in licence revenue on the previous corresponding period (pcp).

We recognised a full quarter impact of PICA licence fees and successfully converted backlog revenue for the Nakheel contract.

We also announced a FM contract with the Australian arm of a global leading commercial real estate company. Work has commenced on that contract and will require development over 12 months before transitioning to a licence fee arrangement.

The average monthly cash used during Q1 was $334,000, reflecting the expansion of our sales and marketing team, particularly in FM, to accelerate growth and reinforce our product leadership.

The closing cash balance at the end of September was $6.8 million, giving us sufficient cash runway to execute on our growth strategy across both platforms.

Urbanise Solutions

The Urbanise platforms deliver comprehensive solutions to the strata management and facilities management sectors.

We have a deep pedigree in strata and facilities management operations. This supports the way we design our platform, and our general approach to development.

We are uniquely positioned to offer both strata and facilities in an integrated approach.

Our implementations have speed up with our configurable approach and we provide world class support and training which helps us achieve near minimal churn.

Facilities Management Market Opportunity

The opportunity for Facilities Management is sizeable - our addressable markets are determined by estimated spend by facilities managers in our regions.

Facilities managers and their customers are demanding technology, and we are positioned to help with our cloud offering.

We will continue to leverage our experience in sectors that we have already secured, such as mining, utilities, aged care and education.

Strata Market Opportunity

The opportunity for Strata is supported by a number of encouraging trends in the strata markets including consolidation driven by the large strata managers. This potentially reduces our customer acquisition cost, as our product is rolled-out across business acquisitions made by our customers.

Urbanise is able to offer a unique integrated strata and facilities platforms and this has allowed us to dominate the Middle East market. This trend is permeating the Australian market which we are uniquely position to capatalise on.

For personal use only

Urbanise

Urbanise.com Limited

Ground Floor, 201 Miller St,

North Sydney NSW 2059

ABN: 70 095 768 086

W: urbanise.com

Three years of continuous ARR growth

These market opportunities have supported the past three years of continuous ARR growth across both platforms.

The ARR has consequently increased by 133% or $6 million since 2018.

Growth plan

Looking forward to the year ahead, we are focused on driving the trend of top-line growth.

We will continue to push the combined strata and facilities offering in the Middle East, where there is an immediate demand.

In Australia, we will focus our strata offering on the medium to large strata managers, who are leading the industry trend.

New Facilities Management sales will be focused on our core market of Tier 2 FM outsourcers, as well as asset owners in sectors where we have deep experience: mining, utilities, education and aged care. This sales drive will be supported by the investment in sales and marketing.

We expect the FM Network Effect will continue as our FM outsourcer customer continue to seek new work and mandate their subcontractors use our platforms

New strata sales will leverage on our leading cloud software, that we have heavily invested to rebuild over the past 5 years.

Now that the PICA roll-out is complete, we can focus on sweeping up as much of the strata market as possible.

I would like to take this opportunity to thank the Urbanise team, for their efforts and dedication throughout the year. Without our team, we would not be able to deliver any of the fantastic solutions to our customers.

I would also like to thank the Board, our customers, our shareholders, and all other Urbanise stakeholders for your support during the year.

I look forward to working with our team and our customers as we continue to grow the business in 2022.

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