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INVESTOR UPDATE

December 2021

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2022 Momentum

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Scout positioned for scale-up in CY2022

Cash flow break-even in sight from orders already received

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Expanded executive team with new CEO to drive scale

Board-led $200k placement at significant premium to market

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Convertible notes Maturity extended & $450k raised in new note

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Scaling in Progress

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US telco Windstream demonstrating value proposition of Scout platform

  • Attach Rate has remained at ~15% on newly acquired customers
  • Orders being placed at volumes higher than current sales
  • Targeted 10%+ of its 1.4 million customers over 18-24 months

By September '21 quarter end, Scout had already received enough shipments and binding purchase orders that, once sold and activated, produce sufficient Recurring Monthly Revenue (RMR) to balance monthly cash burn (~$180k AUD RMR), achieving cashflow break-even.

New partnership agreement signed Dec. '21 with Hyperion Partners LLC, a master agent for T-Mobile and other major carriers in the USA.

Prosegur continues to develop Peru sales and poised for 2nd international launch. Product and platform ready, awaiting Prosegur comfort with market timing amidst COVID.

Scaling Partner Spotlight

US Telco Windstream ramping since launch:

Initial orders exceeded US$1m in hardware revenue

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Hardware sales convert to subscriptions

Since Sept-21 launch, Scout has added >AUD$80k of annualised

recurring revenue through this channel

Average recurring monthly revenue per customer to Scout

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remains ~AUD$8 (USD$6+)

Initial sales launch has targeted only new Windstream customers

Opening sales effort to broader 1.4m customers

Order volumes exceed current sales levels

Orders are per a program and confirmed monthly

Windstream spoke about the Scout partnership at a recent

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industry event:

register.gotowebinar.com/recording/566179638787176198

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Telco Experience v. Guidance

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Dec 2020

Q4 2021

AGM Assumptions

Experience

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15% attach rate on new

Scout-powered Penetration

10% of total customer base

customers

(now expanding sales effort to

existing customers)

Hardware gross margin

10%

14%

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Recurring Monthly Revenue

A$4.70

A$8.00

(RMR) per customer

5

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Scout Security Ltd. published this content on 22 December 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 22 December 2021 23:26:01 UTC.