Urbanise com : Annual Report 2022

ANNUAL REPORT 2022

URBANISE.COM LIMITED

Annual Report 2022

Urbanise.com Limited

Urbanise provides world-leadingsoftware for Strata and Facilities Management

Contents

1. Chairman's Overview

1. CEO's Report

1. Urbanise & Facilities Management
2. Facilities Market
3. Urbanise & Strata
4. Strata Market
5. Sales and Delivery/Growth
6. FY2022 Key Metrics

1. Directors' Report

1. Directors' Report - Audited Remuneration Report

1. Auditor's Independence Declaration
2. Corporate Governance Statement
3. Consolidated Statement of Comprehensive Income
4. Consolidated Statement of Financial Position
5. Consolidated Statement of Changes In Equity
6. Consolidated Statement of Cash Flows
7. Notes to the Financial Statements

1. Directors' Declaration
2. Independent Auditor's Report

1. Additional Shareholder Information

1. Corporate Directory

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Annual Report 2022

Urbanise.com Limited

Chairman's Overview

Dear Shareholder,

Urbanise delivered another solid result in FY2022 highlighting strong ongoing demand for our Strata and Facilities Management platforms. We made significant changes across the business with the appointment

of a new CEO and the restructuring of our sales and development teams to enhance our sales process and increase the variability of our development cost base. Managing our cash flow was a key strategic priority and we made good progress towards realising a sustainable cash position in FY2023.

This was achieved against a backdrop of continuing global uncertainty due to COVID-19-related lockdowns and border closures, increased geopolitical tensions, disrupted supply chains and inflationary cost pressures that affected all businesses, directly or indirectly during the 2022 financial year.

Despite the challenging macro environment, Urbanise continues to benefit from several tailwinds which highlight the strengths of our business model.

• We provide mission-critical software to strata and facilities managers who deliver essential services, often underpinned by legislation.
• Our platforms are enterprise solutions that sit at the heart of our customers' operations and address key technology challenges.
• We have extensive experience in Australia and the Middle East and a growing portfolio of key reference contracts which showcase the quality of our platforms and ability to implement complex projects.

Team and leadership

During the year, the Board continued to build out the executive team with senior managers put in place across the business. In December 2021, the Board decided

to make a change at the CEO level and in June, our Chief Financial Officer and Interim CEO Simon Lee was appointed to the role permanently. This followed an extensive search with the Board deciding that Simon, with his deep understanding of the business, strong customer relationships and effective leadership, was the right person to take the Company forward. I would like to take this opportunity to thank Simon for his significant contribution in improving the operational and financial performance of the business during this period. Urbanise concluded its search for a new CFO with David Goldbach due to commence in the role on 6th October 2022. We welcome David to our leadership team and believe he will make a valuable contribution as CFO given his broad financial experience and strong operational background.

Our talented team of software developers, and sales, implementation, and customer support specialists are another key point of difference for Urbanise. We work closely with our customers to develop products that are aligned to the requirements of both industries as reflected in our high retention rates. Our subject matter experts design well thought out solutions that evolve to meet our customers' changing needs.

It is important to ensure we attract, retain and inspire our team by continuing to improve our approach to employee engagement and well-being. This involves deeper engagement with our global workforce through frequent review of training requirements, well-being and remuneration benchmarking. The Board pays close attention to employee surveys and is working with management to deploy several initiatives over the next 18 months that will be critical to sustaining our most valued asset - our team.

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Sustainable cash flow

Urbanise continues to prioritise getting to a sustainable cash flow breakeven position. From December 2021, the Board and management implemented several measures to reduce cash burn whilst preserving our ability to drive new sales. These tactical initiatives, which are outlined below, have ensured the Company has sufficient cash runway to achieve new sales conversions.

• Cost reduction for sales and development. Following a change in our go-to-market strategy, we right- sized the sales team to reflect a more targeted sales approach. Within development, we increased access to variable resource allowing us to accelerate development from time to time, while retaining our core product teams.
• Working capital has been leveraged and the team have been successful to date in generating temporary benefits from cash in advance which has extended our cash runway.
• Urbanise's sales strategy underpins cash flow sustainability. The Board and management are confident that the product, its position in the market and our ability to deliver, are all at the point where Urbanise can leverage new sales to achieve profitability. The investment in the team and product over many years has resulted in a sizeable Annual Recurring Revenue (ARR) base and we are satisfied that Urbanise's pipeline and go-to-market strategy can deliver cash flow sustainability.

Strategic growth and risk management

The Board are supportive of the target market and go-to-market strategies being executed by the management team. Our primary objective is to maximise our market share in our core markets of Australia, New Zealand and the Middle East by leveraging our existing footprint and physical presence in these regions. The Board continues to closely monitor the sales pipeline which contains contract opportunities that are similar in size and nature to those implemented in the past and reflects the diversity of our customer base.

Board composition

As part of its ongoing succession planning, Urbanise concluded its search for a non-executive director who can bring a deeper technical SaaS skillset to the Board with the appointment of Daniel Bignold with effect from 1 October. Pierre Goosen, who has served on the Urbanise Board since 2018, will step down from

1 October. We welcome Daniel to the Board and believe that his in-depth understanding of emerging and innovative technologies, entrepreneurial mindset and Prop Tech expertise will prove invaluable as we continue to deepen our software offering and expand our global footprint. I would also like to take this opportunity

to thank Pierre for his long service and commitment to Urbanise and wish him all the best in his future endeavours.

Outlook

Looking ahead, the priorities for FY2023 are clear: drive revenue growth in our core markets to pave the way for cash flow breakeven.

On behalf of the Board, I would like to thank the Executive and our talented global team for their tireless efforts and dedication to building an exceptional company. Finally, I would like to thank our customers and shareholders for their ongoing support.

Almero Strauss

Non-Executive Chairman and Director

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