Yojee : Quarterly Activities Report & Appendix 4C - Jun 2022

For personal use only

29 July 2022

Yojee June Quarter Q4 FY2022 Activity Report

Record annual growth in revenue and cash receipts and building

recurring revenue pipeline

HIGHLIGHTS

• Annual growth in cash receipts of 63% ($1.64m) and revenue of 95% ($2.07m) round out a solid FY2022 in a complex Covid and conflict affected operating environment, with $569k in receipts (up 133% on Q4 FY2021) and $590k in revenue (up 64% on Q4 FY2021) added in the June quarter.1
• Advanced revenue pipeline of initial core Enterprise client expansion, new Enterprise clients in commercial stages of negotiation, and an increase in SME business sets good pace for start of FY2023.
• Existing contracts and core revenue growth outlook remain positive, and newly developed areas such as Connected Warehouse (IOT) are now revenue generating.
• The Company has cash at bank as at 30 June 2022 of $11.44 million.

Yojee Limited (Yojee or the Company) (ASX: YOJ), is a cloud-based software as a service (SaaS) logistics platform that facilitates the flow of freight movements into a single ecosystem, making the complex process of managing land transport simple and reducing carbon emissions for a greener planet. The Company is pleased to provide commentary for the quarter and year ended 30 June 2022.

MANAGING DIRECTOR'S UPDATE AND OUTLOOK

Yojee Managing Director Ed Clarke said, "During the June 2022 quarter, despite the continuing worldwide dislocation in supply chain and logistics:

Industry Outlook

• existing key clients have experienced strong profits and continue to assure us of their commitment to expansion and investment in technology moving forward, moving into new locations and over to new areas such as cross-border trucking and last mile in addition to expansions in existing areas such as container haulage, distribution and eCommerce.

Yojee Performance

• doubled our revenue and significantly grew our cash receipts; and
• added a number of key strategic channels of revenue, including Yojee's new warehouse product.

For personal use only

Despite the ongoing worldwide disruption due to Covid and conflict, Yojee is strongly positioned with a growing recurring revenue base, new revenue pipelines, zero debt and strong cash reserves - all of which are funding future growth."

Yojee's revenue is trending in line with the development of the Enterprise program, with new areas of recurring revenue constantly being added:

Hubs Rollout Summary - Yojee Platform

Yojee's Initial Enterprise program, a core current revenue driver, is steadily building in line with previous announcements:

Note: graph excludes recently announced expansion contracts which are at a planning stage.

Suite 9, 330 Churchill Avenue, Subiaco WA 6008 Ι PO Box 866, Subiaco WA 6904 P + 61 8 6489 1600 Ι F + 61 8 6489 1601 Ι ABN 52 143 416 53

For personal use only

FINANCIAL RESULTS1

Yojee's revenue model consists of a combination of monthly subscriptions, transactional revenues and platform implementation fees.

The retail and eCommerce segment from which Yojee derives a significant portion of its revenues exhibits strong seasonality, with the March quarter being the low quarter (16% of annual industry volume) and progressively increasing to its peak in the December quarter (40% of annual industry volume)2.

Cash receipts and revenue achieved record annual growth in FY2022 (a 133% increase on the prior year). This was mainly as a result of strong growth in the Enterprise program, with 15 live hubs generating revenue (an increase of 2 on the prior quarter).

Cash receipts were $569k, up 133% on the same quarter in the prior year (Q4 FY2021), and up 12% on the prior quarter (Q3 FY2022). Full year cash receipts for FY2022 of $1.64m were up 63% on FY2021.

Revenue (trade) was up 64% on the same quarter in the prior year (although 3% less than in the prior quarter due to the timing of revenue recognition in previous quarter). However, core recurring revenue grew with full year revenue (trade) for FY2022 of $2.07m (up 95% on FY2021). This growth would have been even stronger however one of our Enterprise clients in the contract logistics space lost a major contract which impacted revenue growth through lost volume from a single hub.

Net cash from operating activities outflows was AU$1.32m (Section 1.9, Appendix 4C), an improvement of 8% on the prior quarter, supporting our Enterprise client expansion across our core product (Yojee Platform) and new Connected Warehouse module. The operating activities continue to deliver scale efficiencies with the signing of new agreements and the implementation of its Platform with customers.

CURRENT PIPELINE, IMPLEMENTATION AND ROLL-OUT3

Growth Opportunity and Growth Levers: Yojee has a strong advanced pipeline of existing Enterprise Client expansion, new Enterprise Clients in advanced and commercial stages, and an increase of SME business to 17 new SME customers in the quarter, setting a good pace for FY2023.

Initial Enterprise Clients: Yojee's Platform continues to be delivered in line with implementation schedules set out by its base of existing tier one global Enterprise clients. These clients total 4 which are global top 10 logistics groups (freight forwarders and shippers). (See Appendix 1 and 2 at the end of this

Suite 9, 330 Churchill Avenue, Subiaco WA 6008 Ι PO Box 866, Subiaco WA 6904 P + 61 8 6489 1600 Ι F + 61 8 6489 1601 Ι ABN 52 143 416 53

For personal use only

announcement for further information and links to prior announcements of contracts signed with customers).

Logistics hubs rollout: At the end of the quarter, 15 logistics hubs are live, up 150% on the same quarter prior year. In the quarter, 4 additional hubs moved into an implementation phase with existing Enterprise Clients, of which two are for the new Connected Warehouse product (IOT).

Significant developments occurred in the quarter, with 3 new top tier Enterprise Clients agreeing to undertake initial deployments, commercial or post tender pilot programs of Yojee's Platform, putting Yojee on track to grow from its Enterprise Client base from 4 to 7. These new Enterprise clients are Australian, Indonesian and Japanese domestic logistics leaders with international reach. Activities with these 3 new Enterprise Clients are not included in the above hub update.

Live hubs have reached 11% of the embedded growth pathway objective of the Company which, as per previous announcements, is to reach 126 hubs with the initial four global Enterprise clients.2 That objective remains on track. The Company has put strategies in place to support faster navigation through these initial Enterprise clients and looks forward to stronger results with the existing Enterprise clients being complemented by strong new client growth in FY2023.

OPERATIONS AND GROWTH

Roadmap: Yojee's leadership has set a roadmap of unique functionality to drive the logistics industry towards cleaner fuels and electric vehicles, a roadmap which is fair and creates opportunities for growth. We believe this will offer increased profitability for operators and the ability to reduce carbon emissions for reporting for our current and new global and publicly listed customers. The Company and its major clients are excited about developing this part of the business and what it can do for the growth and value of our offering, the community we operate in, and the broader environment.

Yojee Platform: The Yojee Platform continues to achieve strong value add for its Enterprise and SME Clients with more advanced financial reporting and pro forma invoicing functionality added along with major user experience and interface enhancements.

Yojee Connected Warehouse (IOT): Following the launch of 'Yojee Labs' (Labs) in September 2021, one commercial beta subscriptions of the product went live during the quarter on a large warehousing site with more imminent (implemented completed) with two leading global enterprises, with which Yojee is already working (see ASX announcement14 June).

The Connected Warehouse product uses IoT to improve productivity in warehouse operations and is unique in design and is already gaining the interest of a number of leading global logistics groups including new customers not yet on the Yojee Platform.

ISO/IEC Certification: The Company is pleased to advise it has obtained ISO/IEC 27001 Certification. The Certification is an important international standard focused on information security by International Organisation for Standardisation (ISO), in partnership with the International Electrotechnical Commission (IEC). For Yojee's customers, this shows our commitment to ensure the confidentiality, integrity and availability of their information on the Yojee platform and is the culmination of design and implementation of significant business processes specifically developed to meet the standard.

Suite 9, 330 Churchill Avenue, Subiaco WA 6008 Ι PO Box 866, Subiaco WA 6904 P + 61 8 6489 1600 Ι F + 61 8 6489 1601 Ι ABN 52 143 416 53

For personal use only

CORPORATE

Market engagement: Managing Director Ed Clarke presented to the Strawman investor community on 29 June 2022 (view the recording here).

Cash position: The Company's cash position as at 30 June 2022 is AU$11.44m, with no debt.

Related party payments: As required by ASX Listing Rules, Yojee notes that the amount disclosed in the Appendix 4C under Section 6, Payments to related parties of the entity and their associates, relates solely to the payments during the quarter of salaries and wages to members of the Board of Directors amounting to AU$121k.

Operating expenditure: Expenditure in the December ended quarter relating to the ongoing roll-out of the Yojee Platform amounted to cash outflows of AU$1.97m (Section 1.2, Appendix 4C), resulting in a Net Cash from Operating Activities outflow of AU$1.32m (Section 1.9, Appendix 4C). Cash outflows related to ongoing operating expenditures to run business operations which include the key items of Product manufacturing and operating costs, Advertising and marketing, Staff costs and Administration and Corporate costs.

This announcement is authorised by the Board of Yojee Limited.

Appendix A: Yojee Platform Client Agreements

Yojee has to date signed Enterprise level agreements with 4 global Enterprise Clients under Master Services Agreements (MSAs or equivalent). These set the framework of standard terms and conditions for undertaking future rollout (expansion deployments) of Yojee's Platform into Logistics Hubs within clients' operations in a single country, across countries, or multiple Hubs within a country. Read more here:

• Enterprise Client 1 - seeASX announcementdated 15 May 2019
• • Scope extended - seeASX announcementdated 24 August 2020
• Enterprise Client 2 - seeASX announcementdated 18 May 2020
• • Scope extended (Philippines) - seeASX announcementdated 18 June 2021
  • Scope extended (18 additional countries) - seeASX announcementdated 28 June 2021
  • Scope extended (first entry into Europe) - seeASX announcementdated 27 October 2021
• Enterprise Client 3 - seeASX announcementdated 3 September 2020
• • Scope extended (3 additional countries) - see ASX announcement dated 25 May 2021
• Enterprise Client 4 - seeASX announcementdated 23 August 2021
• • Scope extended (additional country) - seeASX announcement14 June 2022

Appendix B: Yojee Connected Warehouse (previously announced)

Born out of Yojee Labs (launched in September 2021), Yojee has developed a Connected Warehouse solution which it is now marketing to global logistics groups. Read more here about the development journey:

• Yojee launches Labs to power future of supply chain & IoT - seeASX Announcementdated 1 September 2021

Suite 9, 330 Churchill Avenue, Subiaco WA 6008 Ι PO Box 866, Subiaco WA 6904 P + 61 8 6489 1600 Ι F + 61 8 6489 1601 Ι ABN 52 143 416 53