2024 ASM Meeting Address

AoFrio Company Confidential ©2024

AoFrio Annual Shareholder Meeting
May 29, 2024 Meeting Address
Slide1

Kia Ora and welcome to the Annual Shareholders Meeting of AoFrio Limited.
My name is John Scott, and I am the chair of AoFrio. 
May I first introduce your directors and senior management.
Two of my fellow directors are in the room - John McMahon and Keith Oliver.
The other directors – Melissa Clark-Reynolds has given her apology, Roz Buick
and Greg Allen were also not able to be present but have joined the meeting
online. 
We also have here today our CEO – Greg Balla and Paul Seller from Deloitte
Today’s meeting is being held both in-person and online via the Computershare
Online Meetings platform.
This allows Shareholders, Proxies and Guests who were not able to travel and
attend the meeting in person the ability to attend the meeting virtually.  All online
attendees can watch a live webcast of the meeting and read the company
documents associated with the meeting. 

P: + 64 9 477 4500 E: info@aofrio.com
®
is a registered Trade Mark of AoFrio Ltd.
A: 78 Apollo Drive, Rosedale, Auckland 0632, New Zealand
PO Box: 302-533 North Harbour, Auckland 0751, New Zealand

AoFrio Company Confidential ©2024


Slide 2


For those of you attending the meeting online, if you would like to submit a question,
the Q&A is always open so please feel free to submit questions throughout the
meeting, these will be addressed at the relevant time.
Questions may be moderated or if we receive multiple questions on one topic,
amalgamated together. Any questions not answered in time will receive an email
response after the meeting.
Voting today will be conducted by way of a poll on all items of business. I will shortly
open the online voting for all resolutions.

AoFrio Company Confidential ©2024


Slide 3

If you are eligible to vote at this meeting, you will be able to cast your vote under the
Vote tab.
Once the voting has opened, the resolutions will allow votes to be submitted. You
can change your vote, up until the time I declare voting closed.
I now declare voting open on all items of business. I will give you a warning before I
move to close voting.
To vote, simply select your voting direction from the options shown on screen.
You can vote for all resolutions at once or by each resolution.
Your vote has been cast when the tick appears.
I am pleased to confirm that we have a quorum and therefore declare the 2024
Annual Shareholders’ Meeting of AoFrio open.
The items of business for this meeting and the resolutions to be considered by
shareholders are contained in the Notice of Meeting which was sent to shareholders
on May13
th
.

AoFrio Company Confidential ©2024


Slide 4

Welcome to our new facility at Apollo Drive in Albany, Auckland. We moved here in
April last year and have benefited from having more collaboration spaces and all
Auckland staff on one level. Our warehouse is now around the corner in Dallan
Place.
For our agenda today, I will provide commentary on the full year 2023 performance,
our Q1 2024 performance and the outlook for the balance of the 2024 year.  Greg,
our CEO, will talk about our strategic focus.   
We will then take your questions.  
After questions, we will proceed with the formal business of the meeting. 
Please note the Safe Harbour statement on the screen.

AoFrio Company Confidential ©2024


Slide 5

Revenue for FY23 was $66.6m, 10.5% below FY22. 
In FY23 AoFrio shipped 519,000 IoT devices and 834,000 motors. This resulted in
lower revenue of 4.0% for IoT and 16.7% for motors compared to FY22.  
IoT and motor sales volumes declined as customer inventory overstocking from
FY22 took longer to work down than initially estimated.
IoT and motor volumes were also negatively impacted by macroeconomic
conditions.
On the positive side we believe we increased our IoT share of market in the cold
drink equipment or branded bottle cooler segment winning FEMSA Brazil, Coke
Embenor and new Coke Arca regions.
We invoiced $4.4m for cloud data connection and software development charges in
FY23 compared to $5.1m in FY22. At 31 December 2023, $12.3m of revenue was
deferred for recognition in subsequent periods (2022: $10.2m).
Operating expenses for FY23 were $19.8m, 3.6% higher than the prior year. 
Staff costs (including contractors) of $18.0m represented 91% of total operating
expenses ($15.1m – 79% in FY22).
The increase in staff costs can be attributed to:
• new roles added in FY22 and FY23 and
• necessary salary increases in a challenging labour market. 

AoFrio Company Confidential ©2024


From 31 December 2022, staff numbers increased by six to a total of 116. The
increase is less than initially planned. We will continue to prudently manage resource
levels and balance implementing product and new market growth initiatives against
trading conditions. 
Capitalised development time increased from $1.4m in FY22 to $3.2m in FY23. In
the first six months of FY23, we focused on non-capitalisable component swap work
(selecting and validating alternative components to the current design due to
ongoing component shortages) to support the base business. 
In the second half of FY23, the engineering and product teams resumed their focus
on new product development to progress our strategies of protecting and growing
the Cold Drinks Equipment market and diversification into new markets. 
Earnings before interest, tax, depreciation, and amortisation (EBITDA) was $1.0m in
FY23 compared to $1.6m in FY22. The pre-tax result was a loss of $3.3m compared
to a pre-tax loss of $1.2m in FY22. The increased loss was the result of lower
EBITDA earnings, higher depreciation and amortisation charges, and increased
finance costs.

AoFrio Company Confidential ©2024
Slide 6


Regional Performance
• North American revenue was 15.1% lower than in FY22 as customers took
longer to work through stock in hand before placing new orders.
• South America was the stand-out regional performer, recording 49.4% year-
on-year revenue growth. This was driven by customer wins for AoFrio’s IoT
solutions, including volume won from a local competitor. AoFrio sold 166,000
IoT devices in South America in FY23 compared to 87,000 in FY22.
• EMEA motor volumes held up reasonably well despite the macroeconomic
issues in Europe and Turkey, mainly caused by geopolitical uncertainty and
natural disasters. AoFrio sold 190,000 motors in FY23 compared to 256,000 in
FY22. 
• In APAC, revenue was lower due to reduced motor volumes. IoT devices
supplied increased by 17.0% compared to FY22. 
During the year the Company joined the BIER Coolition – a global collaboration with
the Beverage Industry Environmental Roundtable (BIER). This group includes the
world's biggest beverage and commercial refrigeration brands and is focused on
reducing the environmental impact of the industry.

AoFrio Company Confidential ©2024
In early FY23, we completed a review of our ESG framework and updated our plan
as a result of the review. Implementation is ongoing and includes: 
• Updating Board and Committee charters to clarify roles and responsibilities.
• Current policies have been updated and new policies implemented including a
Sustainability Policy and a Modern Slavery Statement. 
• Starting measurement framework to establish baselines for reporting and
target setting. 
• Integrating product circularity into the product development process. 
AoFrio undertook recertification of its ESG systems and processes through an
independent global body, EcoVadis and was awarded a bronze medal. This places
AoFrio in the top 35% of companies evaluated by EcoVadis reflecting our
comprehensive approach to sustainability management.
Additionally, there has been a focus on evolving organisational culture and
enhancing global collaboration, inclusivity, and innovation. Team engagement focus
areas were highlighted in the employee engagement (72% average score) and
diversity, equity, and inclusion surveys (80% inclusion score). 
Ensuring we have the right environment to attract and retain talent is vital in a very
competitive labour market and a flexible working policy and career planning
programmes are examples of key initiatives to support this.
Governance changes 
• As part of our Board succession planning process, the Board announced my
appointment as Chair following the resignation of Gottfried Pausch in
September 2023 and we again thank Gottfried for his 10 years of Board
contribution to AoFrio.
• Pleasingly during the year, we appointed two new Board Members - Melissa
Clark-Reynolds and Roz Buick. Both as per the NZX Listing Rules will be
standing for election at this meeting.

AoFrio Company Confidential ©2024
Slide 7


On Tuesday 23rd April, the business provided an update on trading performance for
the three months ended 31 March 2024 (Q1-2024) The update is summarized on the
screen.
It's been an encouraging start to the 2024 year. Q2-2024 is expected to also show
robust growth over Q2-2023 including our first million dollar win in the US IoT market
enabled by our Network Pro ONE.
We are maintaining our 2024 guidance. Revenue is expected in the range of $70m
to $80m, a 13% increase over FY23 at the midpoint of the range.  We are continuing
to use the same forecasting process as previous years which indicates that our
guidance should remain unchanged. It is worth noting that we are currently seeing
an unseasonably low Q4 forecast. If Q4 normalises to historical averages, we will
likely approach the higher end of revenue guidance.
AoFrio's EBITDA guidance for FY24 targets around $2.5m. Macroeconomic
conditions may impact this guidance.
We're continuing to manage our investment in growth to align with trading conditions
and expect to be able to continue expanding through internally generated
cashflows. 

AoFrio Company Confidential ©2024
Slide 8

Before I hand over to Greg, I would like to thank the staff for all their contributions
over the last 12 months and also customers and shareholders for their ongoing
support. I feel we are building something at AoFrio that will accelerate customer
delight and drive AoFrio’s valuation.
Thanks John. I will now provide commentary on AoFrio's New Product and Market
Development. 

AoFrio Company Confidential ©2024
Slide 9


One of the key success factors for AoFrio in the IoT market is to bring new solutions
to market. Unfortunately during FY22 and the early part of FY23 we needed to focus
on support activities as we have explained, the positive news as shown by this chart
is that we are back focused on new solution development, and we are starting to see
the impact of this.
I will now discuss briefly some of the major new solution initiatives.

AoFrio Company Confidential ©2024
Slide 10

US & Europe Cellular Connectivity Solution enabled by Network Pro One
As part of the US and Europe Cold Drink Equipment IoT market entry strategy, we
launched Network™ Pro ONE in October 2023. This is a new variant of the
Network™ Pro and is a cost-effective, single-cooler new build cooler cellular
connected gateway.
This solution allows customers to make decision about the performance of their
coolers without visiting the cooler, they can tell if the cooler is being effectively
utilized, the temperature is right, that the cooler is working correctly and if not what
the problem is with the cooler, allowing targeted maintenance. It is also a key part of
the solution for optimizing energy usage. See AoFrio Inside below for commentary.
Bringing all these elements together in one solution is a unique offering, leveraging
both our hardware and software solution. It provides us opportunity to grow our
hardware revenue and our annual recurring revenue.
This solution allows us to target new customers in the US cold drink equipment
market. Target customer are Coca-Cola (Note Coca-Cola are requiring all 58 US
bottlers to implement a connectivity solution for new build coolers) and Pepsi, that
don’t currently have a connectivity solution. It also allows us to compete in Europe
and Middle East for Coca-Cola business and target customers without a connectivity
solution Pepsi, Heineken and other beer brands. We estimate that the SAM
(Serviceable Available Market) for this type of solution is $75m annually.

AoFrio Company Confidential ©2024
Refrigeration Energy efficiency solution: AoFrio Inside 
We are launching our AoFrio INSIDE energy efficiency solution in Q2 of this year.
AoFrio INSIDE is a response to the chilled beverage industry’s focus on rapidly
reducing the energy consumption of commercial refrigeration. We have tested this
solution with OEM partners and have seen cooler energy consumption reduced by
up to 54%. The solution allows our customers to understand energy consumption for
a fleet and or an individual cooler and make changes remotely to manage
performance and reduce energy.

AoFrio Company Confidential ©2024
Slide 11



Remote asset management 
Cooler fleet managers are able to check if a cooler is on or off, change the
temperature profile or even initiate a maintenance cleaning cycle for one or all their
fleet from their desk. This is a significant cooler fleet management benefit that has
not previously existed.
The first feature we have released is to adjust temperature profiles to align to
seasons or predicted demand changes, saving effort and energy. It eliminates the
need for a technician to visit a cooler, which costs between US$80 and US$350 per
visit.
We plan to extend this capability in 2024 to further manage, adjust, and report on
energy initiatives and carbon reduction.

ECR 2 26W 
The new higher-power ECR 2 26W motor is near-launch, we received our first order,
with production ramp-up expected by the end of Q2 2024. This product has been
developed in response to a clear opportunity to serve the supermarket and large
cooler markets with a more powerful motor. We have several customer trials
underway, and we are finalising compliance and certification requirements.

AoFrio Company Confidential ©2024
Slide 12

Cold Drink Equipment market development
We have been collaborating with customers who manage mixed fleets of both AoFrio
and third-party controllers. Our team has developed a method to extract data from
non-AoFrio hardware, integrating it into our insights platform. This capability was
launched in Q2 and represents a significant enhancement to the value our insights
platform provides to our customers.
Other notable market developments include the successful conversion of a number
of initial proof-of-concept bottlers into customers, including: 
• FEMSA Brazil, the largest bottler of Coca-Cola products globally.
• The expansion of an existing customer, Arca, into new territories.
• Winning Coca-Cola Embenor in Chile.

AoFrio Company Confidential ©2024
Slide 13

Within the Food Service market there are two main proof-of-concept initiatives well
underway. These initiatives help to refine the solution we are developing for this
market.
• In New Zealand, a major quick-service restaurant brand is undertaking a
proof-of-concept trial for cold and hot space monitoring. Early trial results
identified opportunities for efficiency, resulting in a fast return on investment
for the brand. The proof-of-concept expanded to a second site in February
2024, and the proof-of-concept trial runs until end of June 2024. We have
learnt a lot and are adjusting our solution and business model accordingly.
• In Argentina, we are working with a major global supermarket chain to
automate their refrigeration monitoring. Within these large supermarket
formats, we often see more than 100 cold spaces requiring food safety
compliance monitoring. The proof-of-concept has been completed, during
which we developed interactive dashboards delivering actionable insights and
alarms for each cold space’s temperature performance.
Subject to successfully progressing the proof-of-concept trials, AoFrio plans to
launch its first Food Service solutions in Q4 FY24.

AoFrio Company Confidential ©2024
Slide 14

John and I will now take questions.

AoFrio Company Confidential ©2024
Slide 15





A reminder for those of you attending the meeting virtually. You can submit a
question by selecting the Q&A tab on the right half of your screen anytime. Type your
question into the field and press send.

AoFrio Company Confidential ©2024
Slide 16

We will now move to the formal business of the meeting. Voting will be by way of poll
and through proxy submission. Once all the votes have been cast, they will be
counted by the Company’s share registrar, Computershare. 
The results of today’s meeting will be released on the NZX on the completion of
verification of voting. 

AoFrio Company Confidential ©2024
Slide 17


As a reminder, if you are attending online, you have been able to vote since the
meeting opened. To vote, simply select your voting direction from the options shown
on screen. You can vote for all resolutions at once or by each resolution. Your vote
has been cast when the tick appears. To change your vote, simply select ‘Change
Your Vote’. You can change your vote, up until the time I declare voting closed.
I would also ask you to start asking your questions on these resolutions now, and I
will address those questions as we discuss each resolution.
All the resolutions are ordinary resolutions and are required to be passed by a simple
majority of votes.
Once all the votes have been cast, they will be counted by the Company’s share
registrar, Computershare.
The results of today’s meeting will be released on the NZX on the completion of
verification of voting.

AoFrio Company Confidential ©2024
Slide 18

NZX Listing Rule 2.7.1 requires that Directors of the Company appointed by the
Board must not hold office without shareholder election past the next Annual Meeting
of shareholders following their appointment as director.
Melissa Clark-Reynolds was appointed by the Board on 21 August 2023 and, being
eligible, offers herself for election as a Director of the Company
Melissa has unfortunately given her apology today. Her biography is included in the
Notice of Meeting and the Directors support her election today.
Are there any questions?
I move, as an ordinary resolution, “To elect Melissa Clark-Reynolds as a director of
the Company.”
If you haven’t registered your vote online or completed the voting form here today,
please do so now.

AoFrio Company Confidential ©2024
Slide 19

NZX Listing Rule 2.7.1 requires that Directors of the Company appointed by the
Board must not hold office without shareholder election past the next Annual Meeting
of shareholders following their appointment as director.
Roz was appointed by the Board on 31 January 2024 and, being eligible, offers
herself for election as a Director of the Company
Roz to be asked to speak to the resolution.
Are there any questions?
I move, as an ordinary resolution, “To re-elect Roz Buick as a director of the
Company.” 
If you haven’t registered your vote online or completed the voting form here today,
please do so now.

AoFrio Company Confidential ©2024
Slide 20


NZX Listing Rule 2.7.1 requires that the Company’s Directors must not hold office
without re-election past the third Annual Meeting of shareholders following their
appointment or three years, whichever is longer. Having been last elected in 2021,
John McMahon will retire from office at this year’s Annual Meeting. Being eligible, he
offers himself for re-election as a Director of the Company.
John to be asked to speak to the resolution.
Are there any questions?
I move, as an ordinary resolution, “To re-elect John McMahon as a director of the
Company.” 
If you haven’t registered your vote online or completed the voting form here today,
please do so now.

AoFrio Company Confidential ©2024
Slide 21

NZX Listing Rule 2.7.1 requires that the Company’s Directors must not hold office
without re-election past the third Annual Meeting of shareholders following their
appointment or three years, whichever is longer. Having been last elected in 2021,
Greg Allen will retire from office at this year’s Annual Meeting. Being eligible, he
offers himself for re-election as a Director of the Company.  
Greg to be asked to speak to the resolution.
Are there any questions?
I move, as an ordinary resolution, “To re-elect Greg Allen as a director of the
Company.”
If you haven’t registered your vote online or completed the voting form here today,
please do so now.

AoFrio Company Confidential ©2024
Slide 22

Deloitte is the existing auditor of the Company and is automatically re-appointed by
virtue of section 207T of the New Zealand Companies Act 1993.
The proposed ordinary resolution is required to authorise the Directors of the
Company to fix the auditor’s remuneration for the purposes of section 207S of the
New Zealand Companies Act 1993.
I now move, as an ordinary resolution “To authorise the directors of the Company to
fix the remuneration of the auditor for the ensuing year”.
If you haven’t registered your vote online or completed the voting form here today,
please do so now.

AoFrio Company Confidential ©2024
Slide 23

If there are any other questions on the matters discussed today this is your final
opportunity to ask questions in the meeting. The results of today’s meetings will be
published on the NZX once Computershare have collated the voting. Please hand
your voting form to the Computershare representative as you leave the room.
Thank you for your questions, your votes and for attending our meeting today.
We are looking forward to seeing you next year.
I now declare the meeting closed. 
[END OF MEETING]