AssetOwl : Quarterly report and Appendix 4C

For personal use only

ASX Announcement

31 January 2022

ASSETOWL QUARTERLY UPDATE AND APPENDIX 4C

For the period ended 31 December 2021

Highlights

• AssetOwl achieves 40 real estate agencies licenced to use its inspection platform Pirsee
• WA agencies signed onto Pirsee collectively manage ~ 11% of WA professionally managed rental properties (1)
• AssetOwl progresses Pirsee's data migration capability
• AssetOwl completes a Share Placement, and launches a Non-Renounceable Rights Issue to raise up to $2.26m to support East Coast expansion, marketing initiatives and provide on-going working capital

Enterprise property management platform provider AssetOwl Limited (ASX: AO1, AssetOwl or the Company) is pleased to present its Appendix 4C - Quarterly Cash Flow Report for the period ended 31 December 2021, and an update on quarterly business progress.

During the quarter, AssetOwl continued to roll out its Pirsee platform, with strong sales progress in WA, and a growing number of agencies becoming fee paying. It also progressed its data migration capability, and continued to develop new platform features and upgrades.

SALES

With 38 WA agencies signed onto the platform, collectively representing ~17,440 properties under management, it is clear that the Company is starting to gain traction in the WA market. The Company estimates that 150,000 rental properties are professionally managed in WA.1 This translates into an estimated 11% penetration of the WA professionally managed rental market for Pirsee.

1 220,000 private rental households in WA - ABS 41300, Table 17, 'Housing Occupancy and Costs, Australia', 2017-18. 33% of private rental households self-managed by owners: (1) "Self-Managing vs. Professional Property Management" Real Property Manager, (2) "REA launches new landlord toolkit", Smart Property Investment(REA)

AssetOwl Ltd ACN: 122 727 342

Level 14, 225 St George's Terrace, Perth, Western Australia 6000

Telephone: (61) (8) 9424 9320 Facsimile: (61) (8) 9321 5932

www.assetowl.com

For personal use only

Licenced Customers

(Real Estate Agents)

40

		25
			33
	14	21
	12
2			7
		4
2	2
31-Mar-21	30-Jun-21	30-Sep-21	31-Dec-21
	Paying	On Trial

In January 2022, AssetOwl announced it had signed leading South Australian agency Harris Real Estate to trial its Pirsee platform.

Harris Real Estate is the largest independent real estate agency in South Australia, winning Real Estate Institute of Australia Large Residential Agency of the Year in 2020. In 2019, it was awarded Residential Agency of the Year, Property Management Agency of the Year (Large) and Gold Winner in Innovation by the Real Estate Institute of South Australia.

The agreement will see Harris Real Estate initially utilise Pirsee's unique COVID-related features - creation of virtual tours with the Insta360 panoramic camera, and Pirsee's market leading remote routine inspection function.

Harris Real Estate and AssetOwl will also work collaboratively to expedite the development of a fully compliant South Australian version of Pirsee, in parallel with the development of Queensland and NSW versions. AssetOwl aims to release its South Australian version as soon as practicable after the Company's entry into the Queensland and NSW markets, anticipated to be the first half of calendar year 2022.

Harris Real Estate has a network of five boutique local offices across South Australia which collectively have ~3,000 properties under management. Based on ABS data, this represents over 2% of professionally managed properties in SA. 2

2 155,000 private rental households in SA - ABS 41300, Table 16, 'Housing Occupancy and Costs, Australia', 2017-18. Assumes 33% of private rental households self-managed by owners: (1) "Self-Managing vs. Professional Property Management" Real Property Manager, (2) "REA launches new landlord toolkit", Smart Property Investment(REA)

AssetOwl Ltd ACN: 122 727 342

Level 14, 225 St George's Terrace, Perth, Western Australia 6000

Telephone: (61) (8) 9424 9320 Facsimile: (61) (8) 9321 5932

www.assetowl.com.au

For personal use only

DATA MIGRATION

AssetOwl continued to build its data migration capability. In November, the Company successfully uploaded Word and PDF inspection data of a trial customer onto its Pirsee platform. After the migration of ~ 400 inspection records, the agency converted from its trial, becoming AssetOwl's fifth paying customer. Subsequently to this achievement, two further agencies became paying customers.

MARKETING ACTIVITIES

AssetOwl delivered a presentation to the annual Ray White property managers' offsite conference at Joondalup in Western Australia. Ray White is one of the largest real estate franchises in Australia, with more than 40 offices in WA alone. Ray White hosts an annual property management offsite showcase event, drawing upon Perth-based and regional Ray White agencies. The offsite provided AssetOwl's team with the opportunity to gain exposure to this influential group of agencies, subsequently leading to a number of new license signings.

PRODUCT DEVELOPMENT

Recent platform features and upgrades include:

• New routine inspection functionality. The existing routine feature has had a major upgrade, which is currently undergoing testing. Western Australian landlords typically perform four routine inspections per annum, with the majority of agencies conducting these inspections in-house. Our new workflow provides property managers with the flexibility to choose to streamline their routine inspection reports.
• Property Tree integration. Property Tree is a leading trust accounting platform, with more than 3,500 real estate/property manager customers. AssetOwl's product team completed a major review and upgrade of Pirsee's integration with this trust tool, which will further improve the interoperability of our two platforms.
• Infrastructure upgrade. AssetOwl is working on a major upgrade to Pirsee platform infrastructure. The upgrade will improve the efficiency of its data migration capability, as well as the overall speed of the platform.

MARCH QUARTER OUTLOOK

The Company's marketing focus will be the continued roll-out of Pirsee in WA. Once the current Omicron situation stabilises, the business will look to continue with its Victorian roll out, and progress planning for its Queensland/NSW entry.

AssetOwl Ltd ACN: 122 727 342

Level 14, 225 St George's Terrace, Perth, Western Australia 6000

Telephone: (61) (8) 9424 9320 Facsimile: (61) (8) 9321 5932

www.assetowl.com.au

For personal use only

AssetOwl's product team is drawing close to achieving several product milestones, including:

• Final release into production of the new routine inspection functionality
• Infrastructure upgrade
• Development of the next exit inspection version
• Commencement of a major upgrade to our Smart Condition Reports.

CORPORATE

Non-renounceable Rights Issue Launched and Share Placement Completed

In late January, the Company announced an equity capital raising of $2.26 million (before costs) through a placement of 108,577,196 ordinary shares (Placement Shares) to new and existing sophisticated and professional investors to raise $325,731 (Placement) and a seven

1. for ten (10) Non-renounceable Rights Issue on the expanded capital base. This rights issue offers eligible shareholders the opportunity to acquire New Shares at $0.003 (0.3 cents) per share to raise up to $1,938,629 (before costs and expenses) (Rights Issue). The Company has received firm commitments for the Placement Shares.

The proceeds from the Placement and Rights Issue will support AssetOwl's east coast expansion, support marketing initiatives, and provide the business with ongoing working capital.

The Rights Issue will be offered to those AssetOwl shareholders who have a registered address in Australia or New Zealand and who are on the Company's register on the record date, anticipated to be on or about Thursday, 10 February 2022. It is anticipated that the Rights Issue will be open for acceptance from Tuesday, 15 February 2022 when eligible shareholders will be posted the Offer Document and a personalised entitlement and acceptance form. Shareholders will be invited to apply for shares above their allocation entitlement.

Full details of the Rights Issue Entitlement Offer will be set out in the Offer Document and Appendix 3B, anticipated to be lodged with ASX on Monday, 7 February 2022.

Substantial shareholder Tribis Pty Ltd, a company related to AssetOwl's Chairman Mr Simon Trevisan, and entities related to the Company's Executive Director and AssetOwl

Technologies Pty Ltd co-founder Mr Giuseppe Di Franco have committed to take up their entitlements under the Entitlement Offer.

AssetOwl Ltd ACN: 122 727 342

Level 14, 225 St George's Terrace, Perth, Western Australia 6000

Telephone: (61) (8) 9424 9320 Facsimile: (61) (8) 9321 5932

www.assetowl.com.au

For personal use only

Upon closure of the Rights Issue (anticipated to be Thursday 24 March 2022) the Company will have three months to place any Shortfall to eligible investors without requiring shareholder approval.

Receipt of Research and Development Tax Incentive

In November, AssetOwl received an amount of $422,657 from the Australian Taxation Office. The amount is the Research and Development Tax Incentive which the Company was entitled to receive based on eligible expenditure incurred by the Company for the development of Pirsee in the financial year ended 30 June 2021.

Statements pursuant to ASX Listing Rule 4.7C

For the purposes of ASX Listing Rule 4.7C.1, the Company advises that business activities of the quarter included:

• Upgrades to its Pirsee inspection platform
• Provision of inspection software to real estate agents and support to AssetOwl's customer base
• Marketing activities
• Continued growth of the Company's real estate agency pipeline

Total expenditure in relation to this activity amounted to approximately $333,795, which included salaries and wages and fees paid to contractors and consultants.

For the purposes of ASX Listing Rule 4.7C.3, the Company provides the following disclosure with respect to payments to related parties, which are included in the Company's Appendix 4C:

• The Company paid directors fees totalling $33,000 to its three directors for their service during the quarter.
• The Company paid $30,000 to Tribis Pty Ltd under an agreement for the provision of administration and management support services. The Company's Chairman, Mr Simon Trevisan, is the Managing Director of Tribis Pty Ltd, AssetOwl's largest shareholder.
• The Company paid $7,500 in favour of AssetOwl Director Mr Geoff Baldwin for consultancy services in connection with growing AssetOwl's real estate agency pipeline.

For the purpose of ASX Listing Rule 15.5, this announcement has been authorised for release by Simon Trevisan, Chairman of AssetOwl Limited.

***ENDS***

AssetOwl Ltd ACN: 122 727 342

Level 14, 225 St George's Terrace, Perth, Western Australia 6000

Telephone: (61) (8) 9424 9320 Facsimile: (61) (8) 9321 5932

www.assetowl.com.au