TWL Annual Shareholders' Meeting Chair and CEO Addresses

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TradeWindow Annual General Shareholders’ Meeting – Chair and CEO addresses
22 August 2024

CHAIR’S ADDRESS – Alasdair MacLeod
Introduction
Tena koutou, tena koutou, tena koutou katoa.
Kia ora and good morning, and welcome to TradeWindow’s 2024 Annual General
Shareholders’ Meeting. My name is Alasdair MacLeod, I am the Chair of the company.
We will be presenting a series of slides that have been released to the NZX and are also now
available on TradeWindow’s investor website.
Before proceeding I would first direct your attention to this slide 3 and the important notice
regarding this presentation.
I am on slide 4.
I also have a couple of housekeeping points to draw to your attention.
Today’s meeting is being held online via the Computershare Online Meeting platform.
If you have a question to submit during the live meeting, 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, and I will shortly
open the voting for all resolutions.
I am on slide 5.
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.
Turning to slide 6.
Let me introduce you to my fellow directors joining me today:
• AJ Smith, Executive Director and Chief Executive Officer;
• Executive Director Kerry Friend; and
• Independent Director Phil Norman.

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Also joining us online are:
• Vikas Gupta and Matthew Pope from our auditors, UHY Haines Norton Sydney; and
• Ian Beaumont from Russell McVeagh, TradeWindow’s legal counsel.
Also present are members of our senior management team:
• Andrew Balgarnie our Chief Strategy Officer and Company Secretary; and
• Deidre Campbell – our CFO.
You can find details of all Directors and the Senior Management Team on our website.
The Company's constitution prescribes a quorum of ten shareholders. I can confirm this
requirement has been met. Accordingly, I declare the meeting formally open.
The items of business for this meeting are contained in the Notice of Meeting which was
sent to shareholders on the 7th of August.
In terms of the Order of the Meeting,
I will give an overview of the past financial year, the governance changes at the company
and then move to our outlook.
I will then hand you over to AJ on the company’s progress against strategy and an update on
the trading in the first quarter of the new financial year. He will then hand back to me for the
formal matters of the meeting.
It is at this time we will allow time for shareholder questions and discussion of our
presentation and the resolutions before the meeting.
FY24 Growth and resilience
I'm on slide 7.
Against a backdrop of challenging economic and capital market conditions, I am pleased to
report our results for the full year to 31 March 2024, showed strong growth in revenue and
prudent management of capital. This result builds on our long-standing record of growth,
and is the result of three key factors:
• Our unwavering focus on revenue growth;
• Our rigorous cost management; and
• The strong support from shareholders.
Trading revenue, up 26% on the previous year to $6.2 million can be attributed to increased
sales across all core product lines. Losses have narrowed reflecting the significant changes
we have made to drive the business toward financial sustainability.
Our EBITDA loss for the year was $6.6 million, down 47%, while the net loss after tax reduced
to $8.0 million from $9.8 million.
Monthly average cash consumption reduced from $1 million the 2023 financial year to $0.7
million in the first half of 2024 and $0.3 million in the second half of the 2024 financial year.
In line with guidance given during the successful capital raising we undertook in April we
expect this trend to continue in the new financial year as cost savings flow through into our

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financial results. Indeed, as AJ will set out shortly, trading in the first quarter of the new
financial year has remained strong and in line with our guidance.
We ended the year with cash and cash equivalents of $0.8 million. However, our coffers
were bolstered by the share issue, which raised a total of $2.2 million from existing
shareholders including cornerstone investors ASB Bank, new investors and management.
Governance and sustainability
No part of TradeWindow has escaped scrutiny in our efforts to drive towards financial
sustainability.
Accordingly, following the resignation of Diana Puketapu, in November we resolved to
reduce the size of the Board and not replace her.
I want to pay tribute to the TradeWindow Directors for their support and their determination
to deliver for our customers, our shareholders and our people over the last year. The tight
capital markets and the changes we have made to adapt to it - including the reorganisation
of the business and two capital raisings - have placed an outsized demand on all Board
members.
Similarly, I want to thank the broader TradeWindow team. In the face of uncertainty, it has
remained focussed on doing what is necessary to make the business succeed. They have
lived our values which emphasize accountability, integrity, competence, responsibility,
fairness and transparency.
TradeWindow has over the last year grown at a rate that compares very well with
Australasian growth companies and this is thanks to their efforts and commitment.
As AJ mentioned when we released our fourth quarter update for the 2024 financial year, the
team has been stress-tested and has forged reserves of resilience that will sustain us as we
move into a more supportive trading environment.
Our focus on achieving financial sustainability has not come at the expense of the non-
financial matters that are material to the business.
Good governance and fostering a diverse and inclusive culture that allows us to attract and
retain great people are among our chief concerns.
Nevertheless, as you can see from the annual report, we have instituted a range of other
initiatives to ensure we operate sustainably. As a fledgling technology company - our
environmental footprint is small, but where possible we still make choices to ensure it is no
bigger than necessary. These initiatives have included choosing carbon neutral cloud
computing service providers and making sure we minimize travel. We expect our
programme to evolve as we grow.
I would now like to turn to our outlook.
Outlook
We are now on slide 9.
We remain focused on driving TradeWindow towards financial stability.

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Macro-economic indicators point to consistent and growing trade volumes for the New
Zealand primary export sector, which represent the core of TradeWindow’s customers.
These trends, coupled our high-quality customer base, a customer retention rate of nearly
100% and the significant opportunities to upsell new services these customers give us
confidence in the company’s ability to drive continued growth in transactions and recurring
revenues from our existing customers.
We meanwhile expect continued growth in new customers supported by our ‘on demand’
business model and the partnerships we have established with trade organisations both in
New Zealand and Australia.
AJ will cover this – and the pleasing progress we have made in the first quarter of the
financial year – in more detail shortly.
However, I want to reaffirm that our guidance is unchanged.
We continue to expect revenue for the year to end of March 2025 to range between $7.3
million and $8.3 million and to achieve monthly EBITDA breakeven by the end of the financial
year.
Meanwhile the longer-term growth of the company continues to be underpinned by the
increasing digitisation of trade information, and we remain confident of TradeWindow’s
ability to prosper from this change.
I would now like to hand you over to AJ to review our strategy and provide an update on
recent trading.

CEO’S ADDRESS – AJ Smith
Thank You Alasdair, and welcome everyone, joining us today.
Global opportunity
Ahead of getting onto the detail of the progress we are making, I want to refresh you all on
our approach to markets.
Slide 11 sets out the sheer complexity of the global trade system and the network of
organisations and information flows which make up global supply chains.
Operators within all stakeholders from shippers, forwarders, ocean carriers, banks and
border agencies must filter through a vast amount of information to find the data points they
need to make a decision and take action.
BCG, a global consulting firm, estimates that global trade generates four billion pages of
documents annually, with over 200 billion data field interactions – equating to approximately
5,000 data fields per transaction.
TradeWindow is successfully digitalising these workflows which are otherwise siloed and
require significant human intervention.
This generational change in international trade facilitation represents a significant
opportunity in a fast-growing market.

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Multiple growth levers
I am now on Slide 12.
TradeWindow's growth strategy is built around four key levers. However, given the
challenges we have faced in capital markets and our decision to drive towards financial
sustainability our focus is on the first three.
• Innovation
• Expanding usage by existing customers
• Landing new customers onto the platform to broaden the user base.
Revenue growth
I am now on slide 13.
We are really pleased with the progress we have made on driving greater usage of our
solutions by our existing customers, what we call the ‘grow’ element of our strategy.
The revenue growth of the last year has come largely from providing more to our existing
customers. In the shipper segment this has meant steady to increasing shipment volumes
and increased usage of the solutions we offer. In the freight forwarder segment this has
meant and increase in the number of modules they use and the number of people within the
organisation using our services.
As you will see shortly these trends are visible in the strong growth, we are seeing on
average revenue for each of these segments.
Customer growth has been more limited reflecting a couple of key factors.
Firstly, we have reached a level of penetration in the New Zealand market that makes new
customer recruitment difficult. Greater than 50% of all of New Zealand’s primary sector
exporters are already using out solutions. Secondly, and as we have mentioned previously,
we have seen consolidation in the freight forwarder sector, and this has seen some of our
smaller customers dropping out of the industry and other customers increasing demand for
our services.
Finally, up until very recently our focus in Australia has been on larger enterprises where
sales cycles are longer.
However, with the launch of our Certificate of Origin service at the end of last year, we have
made a tactical shift in the way we recruit new customers.
Firstly, we have adopted and new ‘on demand’ model to sell our services. This leverages our
unique capability in issuing Certificates of Origin and our expertise in upselling to customers
once we have established a relationship with them. Our Tariff service, launched at the start
of August is also assisting with this strategy.
The net result of this approach will be to build the category of customers we call ‘pay-as-you-
go’. Many of these customers may be small and use our solutions occasionally, but already
we have recruited large enterprises through the Origin Service, and we believe as they come
to know our service better and the productivity benefits we offer, we will begin to count them
as subscribers.

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The second leg of the tactical change is to build partnerships with trade organisations and
incentivise them to sell our services to their members.
I now want to talk to you in a little more detail on both changes.
Business model
I am now on slide 14.
The new on-demand business model is structured to drive engagement.
Our Certificate of Origin service – which was launched at the end of last year – is quickly
emerging as the entry point for new customers.
It is a fast turnaround, low cost and easy to on board service that is resonating with
exporters and freight forwarders dealing with perishable or time sensitive freight. For
example, those freight forwarders serving the seafood and horticultural sectors.
It is a transactional service, with customers paying a fee of A$25 for each certificate issued.
Once we have established a relationship with this service, we gain an opportunity to
demonstrate more of our services. This approach enables customers to expand usage on an
as-needed basis, allows them to explore new functionality as they become more familiar
with the capability of our products.
We are also seeing a trend for those customers that use Cube – our solution that allows
them to connect securely to all stakeholders in the supply chain – using it as the default
search for new functionality.
Partnerships
I’m now on slide 15.
The second leg of our customer recruitment strategy is through partnerships.
Marketing and channel partnerships provide a cost-effective and targeted way to reach
shippers and freight forwarders.
Several of our partners are not for profit industry bodies. We provide their members with
special rates to key services including Origin and Tariff. Both services provide a potential
pathway to other TradeWindow solutions over time.
We will continue to build out our partnership programme by recruiting further channel
partners, in addition to referring our existing customers to value add services which can help
grow their business.
Gaining momentum in Australia
I’m now on slide 16.
As you can see from these customer endorsements, we are gaining momentum in Australia
winning new customers using our Certificate of Origin service.
There is significant depth to the Australian market with approximately 5 million shipping
containers and 1 million tonnes of air freight shipments exported each year.

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Customers
I am now on slide 17.
I now want to spend a little time talking about the quality of our revenue and why we have
confidence we can achieve our growth targets.
You can see here out customers include some of the world's most significant agriculture
exporters and freight forwarders across of range of sectors.
Perhaps more importantly the solutions we provide are business critical. They ensure
transparent, secure, fast efficient, links between and shippers and all the other participants
in the supply chain and play a critical role in ensuring regulatory compliance.
The extent to which we have won the support of these customers in such a vital area of their
business is one of the best endorsements of our solutions and our strategy.
We have carved out a leadership position in New Zealand serving majority of the meat
sector, a segment of the market which has been shipping record breaking volumes in May
and June.
High quality revenues
I am now on slide 18.
It is thanks to both the quality of our customers and the integral role our solutions play in
their operation that we have high confidence about our outlook, our growth prospects and
the sustainability of our revenue.
As you can see here on the right, well over 90% of total revenue comes from predictable and
ongoing sources.
Transaction revenue (generated whenever customers create or share trade documents)
represents 48% of total revenue. Subscription revenue (customers paying monthly, quarterly,
or annual subscription fees to access solutions) represent 46% of the total. The remainder
or just 6%, is less predictable, coming from one-off installation and services fees.
We also enjoy very strong loyalty from our customers. We have an industry-leading customer
retention rate of 99%. This is a testament to the success of our on-demand business model
as well as a strong endorsement by customers on the quality of our solutions.
Finally – the diversity of our customer base means we are well protected from a single
customer loss. The top 10 customers represent 20% of our revenue and our single largest
customer represents just over 5% of total revenue.
I would now like to turn to our forecasts and our outlook for the remainder of the year.
Revenue growth
I am now on slide 19.
We are immensely proud of our growth record since we began commercialising our
technologies in early 2020.
And as should now be clear we continue to see enormous potential for the business and
have confidence in our continued success.

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We are now forecasting continued revenue growth in the range of 20% to 34% year-on-year
for the 2025 financial year. This amounts to trading revenue guidance of $7.3 million to $8.3
million.
Driving towards positive earnings and cashflow
I am now on slide 20.
Underpinned by revenue growth and a significant rationalisation in our cost base we are now
driving towards positive earnings and cashflow.
We have reduced the size of our workforce, moved to a smaller head office and introduced
hybrid working practices.
We are also now pursuing a new self-sustaining model of iterative product development,
which is directed at meeting our customers’ most acute needs.
We have meanwhile offshored much development work to our Philippine team to manage
costs.
Thanks to the rationalisation in our cost base, we are now targeting monthly EBITDA
breakeven in March 2025.
Following this milestone, we anticipate achieving positive monthly cash flow within six
months.
Q1 FY25 Results
I am now on slide 21 which provides an update on our progress towards these goals for the
first three months of the new financial year.
Our team has pulled together to deliver a record first quarter. Trading revenue increased 17%
when compared to the same period last year to $1.8 million, extending our unbroken record
of strong quarterly growth since we joined the NZX in late 2021.
Annual recurring revenue now stands at $6.8 million and is consistent with our guidance.
Our strong first quarter performance highlights the resilience that comes from having a high-
quality customer base as we have discussed.
The majority of the 20% growth in the shipper segment came from an increase in
transactional revenue. In contrast, most of the 14% year-on-year growth in the freight
forwarding segment comes from cross-sales of additional TradeWindow solutions that I
outlined earlier.
Reflecting our cost out initiatives our gross margin has improved significantly, up 7
percentage points from the prior year to 61%. Our Origin service has also contributed to this
improvement, thanks to its short sales cycle and simple onboarding process.
Research & Development (R&D), and commercialization expenses now only represent 36% of
total expenditure, down 11 percentage points on the prior year. We don't anticipate further
cost reductions during FY25, and we believe we have the resources needed to continue
incremental innovation at a steady pace.
I am now on slide 22.

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So, to summarise.
Our forecast revenue growth coupled with the changes to our business sets us on a path to
monthly EBITDA break-even in March 2025.
Our confidence that we can achieve this goal is based on:
• Predictable recurring revenues from over 541 customers including some of the
world’s most prolific agriculture exporters and freight forwarders;
• Our strong position in New Zealand with more than 50% of New Zealand’s primary
industry exporters using TradeWindow software;
• Our growing presence in Australia. More than 50% of our customers are based in this
market, which is seven times the size of New Zealand’s; and finally
• Our success in the first three months of the year.
With that I would like to hand you back to Alasdair.
ENDS

About TradeWindow:
Founded in December 2018, TradeWindow is an NZX-listed software company that provides digital solutions for exporters, importers,
freight forwarders, and customs brokers to drive productivity, increase connectivity, and enhance visibility. TradeWindow’s software
solutions integrate to form a cohesive digital trade platform that enables customers to more efficiently run their back-end operations,
share information and securely collaborate with a global supply chain made up of customers, ports, terminals, shipping lines, banks,
insurance companies, and government authorities.
www.tradewindow.io
Further information:
Investors
Andrew Balgarnie
TradeWindow
+64 27 559 4133
Media
Richard Inder
The Project
+64 21 645 643