TradeWindow Investor Update Q1 – FY24

TradeWindow Investor Update
Quarter 1 - FY24
CHARTING OUR PROGRESS
Charting Our Progress
Financial Performance
TradeTech Market
Developments
Product Development
22 AUGUST 2023
Newsletter
Highlights
Combined Total Addressable Market (TAM) for global supply chain management market and the global
food traceability market.
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nChain Strategic
Partnership
www.tradewindow.io
Here at TradeWindow we’re always looking at how we can improve the way we
operate and engage with our key stakeholders, including shareholders. It is in this
spirit that we release this, our first quarterly investor update. Going forward, you
should expect similar releases shortly after the end of each quarter. These
updates will come along with the announcements we provide for our half-year
and full-year results.
Importantly, in these updates, we intend to report against the key performance
measures we deliver in our results announcements, deliver more detail on how we
are progressing against our strategy, as well as insights on the TradeTech market.
Our aim is to deepen the understanding of our business and ultimately ensure fair
recognition of the value we are creating.
TradeWindow operates in a fast-paced dynamic market that sits at the crossroads
of leading-edge technology and ever-changing regulation. We are an early mover
in a TradeTech sector estimated to be worth $59 billion worldwide.
International trade provides growth opportunities that lead to higher levels of
productivity and prosperity for all participants. We play an important role in
enabling this outcome, by making trade more accessible to a wider range of
businesses, including small and medium-sized enterprises.
Our growth strategy aims to leverage our strong position in the New Zealand
market to evolve into a global business in line with our vision to enable end-to-end
trade connectivity across global supply chains.
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Since the start of the financial year on 1 April 2023 we’ve continued to win new customers. The majority of these are
freight forwarders switching from competing solutions in search of a more cost-effective way to manage their operations.
We have been focused on streamlining our onboarding processes to provide a more seamless transition for our
customers into the world of digital trade. These efforts have contributed to an improvement in gross margin in the quarter
which, at 48%, is up two percentage points on the FY23 results.
Growth in both the shipper and forwarder segments saw the team deliver a record month in a quarter which totalled $1.5
million in trading revenue (unaudited) for the period 01 April to 30 June 2023. On a forward-looking basis, we expect
current customer contracts to produce $5.9 million in recurring revenue over the next 12 months to the end of Q1, FY25.
The balance of our revenue outlook is expected to come from new customers.
Over the past year Average Revenue Per Customer (ARPC) per month grew 19% and 18% for shippers and freight
forwarders respectively. The majority of this ARPC growth is a consequence of cross-sales completed prior to the end of
the FY23 financial year.
We are focused on maintaining a customer retention rate over 90%. High levels of customer retention reflects the
business-critical nature of our solutions and customers growing reliance on our solutions to run their operations.
22 AUGUST 2023
OUR STRATEGY
FINANCIAL PERFORMANCE

Cube (Global Trade Platform)
We have added new functionality over the quarter to Cube, the foundation of our Global Trade Platform, with enhanced
visibility. In the coming weeks, our customers can choose to access Estimated Time of Arrival (ETA) and Actual Time of
Arrival (ATA) in Cube, providing a comprehensive overview of key milestones, deadlines, and container statuses across each
shipment (see below). This capability provides exporters with the ability to manage resources and have greater control over
their supply chain.
PRODUCT DEVELOPMENT
Note, all comparisons are against first quarter FY23 (1Q23) unless otherwise indicated.
Annual recurring revenue is calculated using subscription revenue for June 2023 and the monthly average of transaction revenue for 1Q, FY24 annualised.
22 AUGUST 2023
Key Performance Indicators - first quarter ended 30 June 2023 (Q1, FY24)
(Unaudited)

Freight
We’ve been working to strengthen the value proposition of our Freight solution with the beta release during Q1 of Freight ‘Web’,
an upgrade to the existing modular Freight platform designed for freight forwarders to execute logistics transactions and
manage backend operations. The release includes a fresh new look to the user interface providing a more user-friendly
experience (see below). Other key features include data validation which helps reduce operator errors by ensuring data is
entered in the correct format.
22 AUGUST 2023
Trade developments in key markets continue to support the adoption of
TradeWindow’s solutions. On 20 July 2023, the United Kingdom’s Electronic
Trade Documents Act 2023 became law.
The legislation gives electronic trade documents including bills of lading,
promissory notes, and bills of exchange the same legal status as their paper
equivalents. It removes friction from trade processes, where paper documents
have been required to entitle the bearer to claim delivery of goods or payment.
The passing of this legislation is a significant enabler in the world of digital
trade not least because a large proportion of global trade is conducted using
documents written in compliance with UK law. It sets an important precedent
across all 52 Commonwealth countries and represents one step in a wider
international effort to harmonise and digitise global commerce and legal trade
frameworks.
We are now looking for New Zealand and Australia to follow suit to make
digital the default way to conduct international trade. Such a move will further
assist our customers to take advantage of reduced costs and accelerated
transaction timelines that come with digitisation, making their businesses
more competitive on the world stage.
TRADETECH MARKET DEVELOPMENTS

Our planned strategic partnership with nChain, a leading global provider
of blockchain technology, IP licensing and consulting services, will be put
to a shareholder vote at our Annual Shareholders’ Meeting scheduled for
11am, 31 August 2023.
I encourage your attendance and recommend that you vote in favour of the share issue necessary to conclude what I see as a
very exciting partnership for the company.
nChain has specialist expertise and a wealth of resources that can help us complete the global trade platform and accelerate
our expansion into new markets. Digitising trade is an ambitious and complex process, and nChain provides us with access to
over 200 software engineers with deep domain expertise.
In total, the strategic partnership will see TradeWindow receive up to $11.1 million in value which includes $2.4 million in cash
and a further $8.7 million comprising enterprise architecture, software development services and software licenses.
In exchange, nChain will take a 19.99% stake in TradeWindow with shares issued at $0.3952 which represents an 18%
premium to the market price when the Heads of Agreement was announced on 31 March 2023.
The team and I have worked hard to negotiate a deal that is value accretive to existing shareholders. We believe it is in the best
interests of the company that you support it.
Further details of the meeting and nChain deal can be found in the Notice of Meeting which was released on 8 August 2023
and can be viewed by clicking on the link below.
TradeWindow - Notice of Annual General Meeting of Shareholders
I look forward to engaging with you at the Annual Shareholders Meeting and to providing further quarterly updates as we push
ahead with the execution of our strategy.
Kind regards,
AJ Smith,
Executive Director & CEO
22 AUGUST 2023
NCHAIN STRATEGIC PARTNERSHIP
TWL share price on the market close on 31 March 2023 was $0.335.
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investors@tradewindow.io | www.tradewindow.io
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