Investor Update – 24 November 2022

Investor AGM Update 24 November 2022

Overview

2022 has been another challenging year where retaining staff and growing capability to support an
ambitious growth strategy over the coming years continues to be a priority. It has taken longer than
anticipated to bring the revenue up to match the increased salary costs. The Kilimanjaro management
team took a careful approach with each customer when applying price increases to ensure minimal
customer churn and are currently undertaking a new round of increases on the same basis.

The management of Kilimanjaro with the support of the Board, continues to negotiate with MYOB
on the proposed new Business Partner Agreement and their indicated reduction in the retrospective
MYOB Exo margins as announced on 1 August 2022.

The fact that we were unable to match the revenue increases simultaneously with the salary
increases will negatively impact the profitability in both the half year and end of year results,
especially if we fail to get a resolution with MYOB. The board has made appropriate plans to address
this situation through price increases and cost reductions where appropriate.

The revenue, including annual renewable revenues in all our investee companies has continued to
grow well, in particular Datagate which has grown 55%, most of which has occurred in the US market.

The rights issue has generated AU$780,370 and NZ$167,620, which given the number of ineligible
shareholders met the expectation of the board when the rights issue was proposed. The board is
grateful for the continued support of shareholders. The Board will be actively working to place the
remainder.

At 31 October 2022, Enprise had cash at hand of $1.01 million and $1.74 million in drawn bank
facilities. The board appreciated the continued support of our banker, BNZ who provided us with a
waiver of the banking covenants until 30 June 2023.

The Board remains focused on returning the Group to profitability. We believe that we are well
positioned to maintain our position as MYOB’s largest partner, and to grow our installed MYOB Exo
base of 961 and MYOB Advanced base of over 200. This, in addition to our growth in SaaS based
investee companies will enable us to return to profitability by year end.

Unaudited Management Information for the 4 months ended 31 October 2022

Group Results
Unaudited Management Information
4 months to 31 October
2022 2022 Change
Revenue 6,631,771 5,710,203 16% Increase


Kilimanjaro
Unaudited Management Information
4 months to 31 October
2022 2021 Change
Revenue
- Recurring and contracted revenue 2,529,200 2,153,469 17% Increase
- Non-recurring revenue 3,545,276 3,261,194 9% Increase
Total 6,074,476 5,414,663 12% Increase

Kilimanjaro Highlights
• The productivity improvements identified as part of the internal review from merging
the businesses under the Kilimanjaro Consulting brand continue to be implemented.
These will assist in expanding the current gap between revenue and salary costs,
increasing profitability. 12 of these identified projects were completed during the
year.
• The support teams are focused on our #ClientFirst initiative which has seen customer
satisfaction ratings improve significantly, to be best practice. This enables us to align
our pricing with our positioning in the market: A premium provider, with high
perceived value.
• There is a continuing trend to move to cloud-based software. Our experience
integrating Exo on-premise software with cloud solutions gives our Exo clients a
pathway to transition to the cloud, as and when they choose. Our Exo Hosted option
supports those who wish to remain on Exo, but move to the cloud.

Datagate
Unaudited Management Information
At 31 October 2022 2022 2021 Change
Annual Recurring Revenue $2,934,012 $1,889,100 55% Increase
Customer count
- New Zealand 31 29 6% Increase
- North America 239 170 40% Increase
- Australia 42 35 20% Increase
- Rest of the world 33 24 37% Increase
Total 345 258 34% Increase

Datagate Highlights of the last 12 months
• Completed the IT Quoter, Halo and Kaseya integrations.
• Raised $750,000 in the rights issue at $2.80 per share in October 2022.
• Exercised the convertible note at $2.20 per share.
• The reseller channel at 31 October contributed 40% (up from 34% last year) of the
customer volume and continues to grown strongly.

iSell
Unaudited Management Information
As at 31 October
2022 2021 Change
Cloud customer count
- Australia 216 181 19% Increase
- New Zealand 36 31 16% Increase
- Europe 47 55 15% Decrease
- North America 8 3 166% Increase
- Rest of the world 7 11 36% Decrease
Total 314 281 12% Increase
Revenue (4 months ended 31 October)
- Recurring revenue 362,793 331,725 9% Increase

iSell Highlights of the last 12 months
• iSell continues to develop the features required for a successful expansion into North
America. The Avalara tax certification was achieved during the year as was integrations to
Datagate and Hubspot.
• Our first case study for a USA customer was completed in May 2022.
• Further investment will be required in iSell with breakeven not anticipated while we
continue to invest in new features and markets.

Vadacom

Vadacom is continuing to performing to plan and the board is pleased with the year to date
progress. The new cloud software, Next Voice now has 1,589 live extensions as at 31 October
2022 (up from 466 last year).