26 May 2021 Linius Technologies (LNU) Wayne Sanderson – Head of Research NBL and Wolves commence; Universities, Swanbay and IMG engaged [email protected] +61 400 434 548

Recommendation Speculative Buy Summary Linius Technologies Limited (LNU) listed in March 2017 with Risk Rating High an exciting patented video search and re-compilation 24-mth Target Price (AUD) $0.10 (was $0.25) technology, but no product or customers. Share Price (AUD) $0.022 Traditional search engines cannot automatically crawl videos, 12-mth Price Range $0.011 - $0.075 so have to rely on text data associated with the video. LNU Forecast 12-mth Capital Growth 377% has invented and patented the Video Virtualisation Engine Forecast 12-mth Dividend Yield 0.0% (VVE) which indexes, analyses, and tags each frame in a 12-mth Total Shareholder Return 377% conventional video and transforms it into a fully searchable “Virtualised Video”. This allows a hyper-personalised single video reel to be compiled on-the-fly from an infinite number of Market cap ($m) 33.1 source videos applying the users’ bespoke search criteria. Net debt (net cash) ($m)(Mar 21) (3.1) Each reel contains just the footage the user wants to see. Fully Enterprise Value ($m) 30.0 automated and repeatable, it can be a personalised video Gearing (Net Debt/ Equity) N/a – Net Cash channel. Costs to serve are remarkably low. Shares on Issue (m) 1,511.6 Sports Commercialisation Begins Options / Perf rights on Issue (m) 40.8 In March LNU gained its 2nd and 3rd commercial launches – Sector Software & Services with Hungry Jack’s National Basketball League (NBL) in Average Daily Value Traded ($) $234,000 Australia, and LNU’s first English Premier League (EPL) team ASX 300 Weight n/a - Wolverhampton Wanderers (via partner Swanbay). Swanbay also announced a new partnership with global sports and events management firm IMG. The importance of the Wolves launch is demonstrated by Swanbay now having > 20 active proposals under discussion with other EPL and sports teams, leagues and event owners. Swanbay is confident of converting several of these opportunities by Xmas. University Challenge LNU has targeted 20 of Australia’s 43 universities which it believes are innovative and prime candidates for LNU’s video indexing, search and compilation platform. Consultant Kerrie Campbell (ex CIO Flinders Uni and Adelaide Uni; 28 years’ experience in government, utilities and banking) is guiding LNU’s approach. Discussions and demonstrations are under way with most of this prime-target group. Kerrie thinks that short trials <4 weeks will be required. CEO Chris Richardson said on a webinar on Friday that LNU hopes to sign 8-10 of these in coming quarters. Valuation & Recommendation We believe LNU is now on the cusp of commercialisation. We have modelled 3 potential revenue scenarios: Scenario A: $7.7m revenue in FY24 based on 4 Australian LNU SHARE PRICE PERFORMANCE and 10 US universities $6.6m, plus minor Sports and Enterprise revenue $1.1m. Valuation: 1.5c to 2.5c. A capital raise would probably be required within 6 months. Scenario B: $39m revenue in FY24 based on 8 Australian, 30 US and 20 Rest of World universities $26m, plus $5m Sports and $8m Enterprise revenue. Valuation: 7.6c to 12.6c. Scenario C: $92m revenue in FY24 based on 22 Australian, 60 US and 40 R.O.W. universities $55m, plus $14m Sports plus $23m Enterprise. Valuation: 17.9c to 29.8c. We set our 24-mth price target at the mid-point of Scenario B which is $0.10. Our previous $0.25 PT was an optimistic scenario, and is still possible, but is not our central case. Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

Source: Linius Broker Briefing presentation 20/5/21

What has changed since our last report (3/12/20)? 1. NBL - LNU Sports Solution went live with NBL (Australian men’s basketball league) on 17/3/21. 2. EPL (English Premier League) - LNU’s UK sales partner Swanbay Limited announced a live deployment of the LNU Sports Solution with English Premier League soccer club, Wolverhampton Wanderers (“The Wolves”), and a new partnership with IMG (also announced 17/3/21). Exciting pipeline of EPL & other prospects named. 3. Linius appointed new UK-based (Manchester) sales executive David Nortier as Chief Revenue Officer – EMEA to focus on securing repeat commercial sales of the Linius Sports Solution. 4. Whizzard Learn – 1 trial underway with a leading Australian University via partner LiveTiles (ASX: LVT). (per LNU Q3 quarterly report 30/4/21). 5. Appoints Kerrie Campbell (ex CIO) of Flinders University as a specialist sales consultant to target the tertiary education market in Australia. (per Q3 report). 6. Appointed John Wallace as a US-based N.E.D on 14/12/20. John was previously President and CEO of Deluxe Entertainment Services (century old post production and video distribution services company), and prior to that, President, Operations & Technical Services at NBC Universal (studio, production, and video distribution operations). 30 years’ experience. 7. Appointed Rob Scott (US-based) to Linius Advisory Board. Currently CEO of Cygilant (cybersecurity), previously Worldwide General Manager for Hewlett Packard energy and sustainability unit. Former E&Y entrepreneur of the year, and start-up expert. 8. March Quarterly report (Q3). (Reviewed at p9). 9. 1H21 Results. (Reviewed at p10). 10. Changes in Sequoia forecasts. (refer p11). 11. New scenario-based valuation framework (refer pp 12-13).

Page 2 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

NBL basketball league solution goes live The Linius sports solution went live with the Hungry Jack’s National Basketball League (NBL) in March (refer ASX announcement 17/3/21). This was originally announced on 26 November 2019 so has been a long time coming. The NBL now offers a personalised TV channel (video highlights service) on the NBL website. NBL owner and Executive Chairman Larry Kestelman said: “This unique service provides an opportunity to extend the reach of our sport by allowing our fans to curate and share their own channels. We want our fans to be able to watch basketball in as many different ways they choose and enjoy the game with family and friends in what is another fantastic season.” The launch was delayed due to Covid and also because the NBL changed its video platform provider. We think it is an extremely important milestone for LNU because:  It is really only LNU’s second major commercial deployment after Racing.com (thoroughbred racing).  It is a significantly more complex deployment than Racing.com, and represents the first service of its kind in the world. So it instantly becomes LNU’s flagship reference site for other potential customers to look at the new video search and assembly product LNU has created (a personalised basketball highlights channel creating unique content instantaneously for each and every user). LNU says this has never been possible before.  We estimate revenue of $100-200k pa to LNU. Not huge, but LNU needed another good reference customer and NBL is incentivised under the agreement to introduce the LNU technology to other international basketball leagues. The majority owner of NBL is Melbourne-based entrepreneur Larry Kestelman (founder of Dodo internet) and a passionate basketball supporter. With an entrepreneur at the helm (rather than big committees), we think that LNU could not have found a better partner. International professional basketball deals could be $0.5m -$1.0m each of revenue to LNU. Investors need to be patient. We think the product looks good, the strategy is sound and the prospects are excellent.

Source: NBL website showing location of personalised video channel (powered by Linius)

Page 3 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

UK / European Sports – Wolverhampton Wolves; IMG 1. LNU’s UK sales partner Swanbay Limited has delivered its first live deployment of the LNU Sports Solution with Wolverhampton Wanderers (“The Wolves”), an English Premier League soccer club. So in the same month, this became LNU’s 3rd full-scale commercial deployment, and the first in the northern hemisphere. 2. We spoke directly to Swanbay. The initial launch targeted ~5,000 Wolves fans (e.g. gold members, VIPs, and very active social media fans). The deployment has achieved very encouraging early results (> 2,000 downloads by > 600 users, average 4 mins 43 seconds viewed, average of 3.85 game highlights viewed per user) demonstrating increased fan engagement. Swanbay has received positive feedback from the customer and from the online feedback form sent to the initial user group. Further levels of engagement with the Wolves are being planned including a 2020/21 season highlights package, for a gradual expansion to the wider fan base (1.7m Instagram followers – refer table opposite). 3. Some of these new offerings will be premium offerings behind a pay-wall. Some will be sponsored. So the LNU platform will be creating new revenue streams for clubs, as well as boosting fan engagement. 4. Revenue to LNU is based on minutes of video extracted (no base fee). 5. Swanbay also said that getting this live reference site up and running has made an enormous difference to awareness and credibility of the Swanbay / LNU Sports Solution, and its marketing efforts are already so much easier. It now has over 20 live proposals in its pipeline. Discussions are underway with Manchester United, Tottenham Hotspur, Women’s’ Soccer League (IMG client), Golf European Tour (IMG client), ATP Tennis (IMG client) as per LNU’s 17/3/21 market update, and others. 6. The UK EPL soccer season finished last weekend. Swanbay is working on a number of season’s highlights packages and “classic” archive packages with the Wolves and a select number of other EPL teams including big name teams. 7. Swanbay expects multiple deployments over the balance of 2021.

Swanbay & IMG 8. Swanbay has also formed new partnerships with IMG and Whisper TV, the two leading sports content and event management companies globally (refer Appendix 3 & 4 for our discussion on each). Swanbay is working on multiple opportunities with these two important global gatekeepers to deliver digital solutions directly to clubs, federations and rights owners / holders. No deals yet, but IMG gave this quote in March:

LNU market update, 17/3/21 p9

Our View Swanbay is clearly very enthusiastic about the prospects for the Linius video technology. It has invested over £ 1.5m in the last 18 months of its own funds integrating its platform with Linius and gearing up for the new deals it expects to secure. It says “the Linius software is the WOW factor on our platform” and it is confident of getting a return on this investment over the rest of this year. Swanbay has more than doubled its tech staff over the last 12 months to service the expected new customers. We think Swanbay is shaping up to be an excellent partner for LNU. Swanbay has provided various mobile phone-based and web apps for sporting leagues, clubs and mobile operators for over 7 years, including quizzes, lotteries, digital scratch cards,

Page 4 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) mobile coupons, video, chat, polling, and geo-fence campaigns mostly around sports. It appears to be well connected in the UK and international sporting world, as evidenced by the recent Wolves and IMG deals.

English Premier League - Instagram followers & season rank Instagram 2020/21 2020/21 38 matches (2 x 19) 12/9/20 to 23/5/21 Followers (m) Season Season 24/5/21 Rank Points 1 Manchester United 40.5 2 74 2 Liverpool 30.9 3 69 3 Chelsea 26.5 4 67 4 Manchester City 24.0 1 86 5 Arsenal 19.3 8 61 6 Tottenham Hotspur 10.3 7 62 7 Leicester City 5.1 5 66 8 Everton 2.3 10 59 9 Wolverhampton Wanderers (Swanbay / Linius customer) 1.7 13 45 10 West Ham United 1.5 6 65 11 Crystal Palace 1.2 14 44 12 Aston Villa 1.1 11 55 13 Southampton 1.0 15 43 14 Leeds United 0.717 9 59 15 Newcastle United 0.664 12 45 16 Fulham 0.583 18 28 17 Sheffield United 0.494 20 23 18 Brighton and Hove Albion 0.423 16 41 19 Burnley 0.388 17 39 20 West Bromwich Albion 0.381 19 26 Total Instagram followers (m) 169.1 Premier League Instagram followers 45.8 Average team (m) 8.5 Source: https://www.premierleague.com/tables www.instagram.com

We also show for interest the number of Instagram followers for the German Bundesliga. There are 7.3m Instagram followers for the league itself (v 45.8m for the EPL) and 5 teams with more than 1.0m Instagram followers each (v 13 EPL teams > 1.0m followers). German Premier League - Bundesliga - Instagram followers Instagram 2020/21 2020/21 2020/21 Season (18/9/20 - 15/5/21) Followers (m) Season Season 25/5/21 Rank Points 1 Bayern Munich 26.6 1 78 2 Borussia Dortmund 13.1 3 64 3 Bayer Leverkusen 1.300 6 52 4 RB Leipzig 1.000 2 65 5 Schalke 04 1.000 18 16 6 Borussia Monchengladbach 0.666 8 49 7 Eintracht Frankfurt 0.562 5 60 8 Wolfsburg 0.523 4 61 9 Koln 0.379 16 33 10 Werder Bremen 0.378 17 31 11 Hoffenheim 0.349 11 43 12 Stuttgart 0.309 9 45 13 Hertha BSC 0.204 14 35 14 Augsburg 0.171 13 36 15 Mainz 05 0.163 12 39 16 Freiburg 0.155 10 45 17 Union Berlin 0.134 7 50 18 Arminia Bielefeld 0.101 15 35 Total Instagram followers (m) 47.1 Bundesliga Instagram followers 7.3 Average team (m) 2.6 Source: https://www.bundesliga.com/en/bundesliga www.instagram.com

Page 5 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

Tertiary Education Update (Australian Universities) 1. LNU has a trial underway with a leading Australian University via partner LiveTiles (ASX: LVT). (per LNU quarterly report 30/4/21). LiveTiles has previously told us that it had a lot of interest from its existing client base of corporates and universities in Linius Whizzard Meet (for business meetings) and Whizzard Learn (for tertiary education), so securing this customer would be a very important first reference customer for LiveTiles and its sales force of ~ 25 people. 2. LNU has appointed Kerrie Campbell (ex CIO) of Flinders University as a specialist sales consultant to target the tertiary education market in Australia. Kerrie is extremely well credentialed to assist LNU to navigate sales directly into this sector which we think is an ideal application for the Linius video indexing, search and retrieval capabilities. 3. Kerrie’s background: ● Telstra Business Woman of the Year (SA), 2020. ● Chief Information Officer – Flinders University Adelaide (3 yrs, 3 mo) ● Chief Information Officer & Deputy CIO – University of Adelaide (3 yrs 9 mo) ● Director – Application Delivery – Department of Human Services (7 yrs, 3 mo) ● Business Manager – Centrica / British Gas (3 yrs, 11 mo) ● Senior Computer Operator – EDS (5 yrs, 9 mo) ● Senior Computer Operator – Commonwealth Bank (7 yrs, 11 mo). 4. We spoke directly with Kerrie. She believes the Linius product will be transformative for learning for the students. It will also be of significant benefit to lecturers preparing course materials. We spoke in some detail about it including examples of how it would be used. Most universities have major “transformation post Covid” IT development programmes under way right now to blend face-to-face and online and remote learning, and LNU fits in well with that (personalised, targeted, collaborative video learning and revision). She was clearly very enthusiastic about the product and thinks most universities will want to buy it. 5. Linius and Kerrie have drawn up a list of 20 leading Australian and NZ universities and are actively arranging meetings and product demonstrations with them all. LNU is confident of securing a decent percentage of these. A second trial is about to commence, with others expected in coming weeks. 6. Pricing is likely to be around A$1.00-2.00 per student per month, and A$4.00 per teaching staff member per month. Plus we understand there will be a ~20% per annum maintenance and 24x7 support fee. We use A$1.30 per student in our model and ignore service fees, to be conservative (NB. A$1.30 ~ US$1.00). 7. Trials are expected to be < 4 weeks with purchase decisions expected soon thereafter. LNU plans to do the first couple of University installations itself, thereafter it will start using a selection of external systems integrator firms. Installation and commissioning is expected to be fairly straightforward. 8. The first few Universities to adopt the system are likely to set important precedents for other universities here, and globally to follow. 9. The initial targeted list of Universities have approximately 770,000 equivalent full time student load (EFTSL’s - a blend of full-time, part-time, online and micro-learning student numbers), and approximately 40,000 lecturers / teaching staff. 10. Australia has 43 Universities (see list Appendix 6 and table below) with approximately 1.4m students enrolled per the ABS. There are a further 0.3m overseas who could also benefit from the LNU service. There are a further 0.5m at TAFE Colleges.

Page 6 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

ABS: Students aged 15-64 By type of educational institution or organisation (000's) NSW Vic Qld SA WA Tas NT ACT Aust Higher education 452 395 262 78 134 25 13 30 1,391 TAFE 193 119 69 26 46 9 2 8 475 Secondary education 289 244 186 68 85 22 8 14 916 Other institution/organisation 93 88 86 24 35 6 4 5 344 Total Students 1,028 846 601 195 301 61 27 58 3,126 Type of enrolment Enrolled full-time 685 599 406 143 204 41 15 37 2,130 Enrolled part-time 343 247 198 53 96 21 11 24 996 Total 1,030 850 605 195 300 62 26 59 3,125 % enrolled full time 66% 70% 67% 73% 68% 66% 57% 63% 68% % enrolled part time 33% 29% 33% 27% 32% 34% 43% 40% 32% Source: ABS data 11/11/20 11. Based on the level of interest and engagement LNU is seeing, LNU has already commenced front-end integrations with the leading global Learning Management Systems (LMS’s) used by universities globally (e.g. Blackboard, Canvas, Echo 360, Moodle and Schoolbox). Students will then access Linius via the LMS for the subjects in which they are enrolled. 12. We have modelled potential revenue to LNU from the Australian university sector below. If LNU achieved 20% market penetration (8-9 of the 43 universities) that could be ~A$3.7m of high quality annual recurring semi-Government revenue to LNU. The cost to an average university with ~32,000 students of ~$430k pa does not seem unreasonable to us.

Australian University Sector Number Student Lecturers Linius LNU Annual Uni's No's. Teaching Price /mth Revenue Staff Students Lecturers est $m Total number 43 1,391,200 49,852 Average 32,353 1,159 $ 1.30 $ 4.00 0.434

20% market penetration 8.6 278,240 9,970 $ 1.30 $ 4.00 3.7 40% market penetration 17 556,480 19,941 $ 1.30 $ 4.00 7.5 50% market penetration 22 695,600 24,926 $ 1.30 $ 4.00 9.3 60% market penetration 26 834,720 29,911 $ 1.30 $ 4.00 11.2 80% market penetration 34 1,112,960 39,882 $ 1.30 $ 4.00 14.9 100% market penetration 43 1,391,200 49,852 $ 1.30 $ 4.00 18.7 Estimated cost per University Student Teaching Est Annual No's. (pro-rated) Cost $m Large university 100,000 3,583 1.342 80,000 2,867 1.074 60,000 2,150 0.805 40,000 1,433 0.537 Average-as above 32,353 1,159 0.434 30,000 1,075 0.403 20,000 717 0.268 Small university 10,000 358 0.134 Source: Sequoia estimates; We assume revenue for 9 months pa for students, 12 mths pa for teaching staff 13. Learning Management Systems (LMS’s) - a potential new sales channel - The ubiquitous presence of LMS’s globally could represent an excellent, ready-made sales channel for LNU to expand globally – quickly. Canvas is used by 40,000 learning institutions globally. Blackboard says its LMS is used by 80% of the world’s top universities. We think this could be an excellent medium term strategic option for LNU to pursue once it has established its beach-head in Australia.

Page 7 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) International Universities We believe the Linius video technology will also have potential in the international university market. According to the US Department of Education’s Annual Digest, there was an estimated 222.7 million tertiary education students enrolled worldwide in 2017, including 20.6m in North America and 2.1m in Oceania (includes Australia). So LNU has an addressable market of approximately 220 million university students outside of Australia.

Source: Digest of Education Statistics 2019, US Department of Education (Feb 2021), page 464 https://nces.ed.gov/pubs2021/2021009.pdf Global potential The potential revenue to LNU on modest global market penetration assumptions are eye watering. A 5.0% market penetration globally could see A$130m of revenue to LNU based on anticipated pricing of A$1.30 (US$1.00) per student per month.

Global Universities - Total Addressable Market (TAM) Number Student Pricing Potential Annual Revenue to LNU (A$m) of No's. A$ Assumed market penetration Uni's (m) 1.0% 2.5% 3.5% 5.0% 10.0% Assumed Linius price per student per month $ 1.30 Assumed no. of billing months pa 9

Asia 128.1 15.0 37.5 52.5 74.9 149.9 Europe 29.0 3.4 8.5 11.9 17.0 33.9 Central and South America 28.0 3.3 8.2 11.5 16.4 32.8 North America 4,360 20.6 2.4 6.0 8.4 12.1 24.1 Africa 14.8 1.7 4.3 6.1 8.7 17.3 Oceana 2.1 0.2 0.6 0.9 1.2 2.5 Total 19,800 222.6 26.0 65.1 91.2 130.2 260.4

Our forecasts for LNU for Universities (worldwide) by 2025 (A$m): 54.8 Source: US Dept of Education for student nos; All others are Sequoia estimates

Page 8 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) March Quarterly report (Q3) and 4C

LNU: Analysis of Quarterly 1QFY20 2QFY20 3QFY20 4QFY20 FY20 1QFY21 2QFY21 3QFY21 FY21 Rolling Cash Flow Reports Year YTD 4 Qtrs

1. Receipts from customers 0.000 0.019 0.021 0.018 0.058 0.020 0.042 0.034 0.096 0.114

2. Cash Payments R&D costs (1.083) (0.836) (0.917) (0.389) (3.225) (0.427) (0.385) (0.615) (1.427) (1.816) Operating costs (0.084) (0.302) (0.170) (0.154) (0.710) (0.074) (0.063) (0.291) (0.428) (0.582) Advertising & marketing (0.077) (0.107) (0.084) (0.019) (0.287) (0.021) (0.023) (0.056) (0.100) (0.119) Staff costs (0.754) (0.786) (0.512) (0.408) (2.460) (0.406) (0.518) (0.459) (1.383) (1.791) Admin & corporate costs (0.099) (0.172) (0.094) (0.045) (0.410) (0.048) (0.051) (0.052) (0.151) (0.196) Other - Legal & patent costs (0.051) (0.018) (0.066) (0.062) (0.197) (0.066) (0.022) (0.023) (0.111) (0.173) Government grants & interest 0.002 0.002 0.002 0.001 0.007 0.000 0.000 0.000 0.001 Cash expenses (2.146) (2.219) (1.841) (1.076) (7.282) (1.042) (1.062) (1.496) (3.600) (4.676) 3. Operating Cash flow (2.146) (2.200) (1.820) (1.058) (7.224) (1.022) (1.020) (1.462) (3.504) (4.562)

4. Investing Cash Flow (0.002) (0.022) (0.006) 0.000 (0.030) 0.000 (0.003) 0.000 (0.003) (0.003) 5. Cash from Financing (Share Issues & options conversion)4.723 0.531 0.000 1.299 6.553 4.756 0.236 0.000 4.992 6.291 6. Net increase (decrease) in cash 2.575 (1.691) (1.826) 0.241 (0.701) 3.734 (0.787) (1.462) 1.485 1.726

7. Cash at start of period 2.298 4.873 3.182 1.356 2.298 1.597 5.331 4.544 1.597 8. FX movements 9. Cash at end of period 4.873 3.182 1.356 1.597 1.597 5.331 4.544 3.082 3.082

Cash Receipts - Annualised 0.000 0.076 0.084 0.072 0.1 0.080 0.168 0.136 0.128 0.114 Cash Payments - Annualised (8.584) (8.876) (7.364) (4.304) (7.3) (4.168) (4.248) (5.984) (4.800) (4.676) Operating Cash Flow (annualised) (8.584) (8.800) (7.280) (4.232) (7.2) (4.088) (4.080) (5.848) (4.672) (4.562)

Source: Company quarterly reports  Q3 receipts from customers were again modest at $34k (we presume Racing.com plus a small amount from Grafa news - now in soft launch). 9 months YTD $96k – still not a sustainable business.  Q3 payments to suppliers and staff were $1.5m, up $434k or +41% on Q2. 9 months YTD $3.6m.  The cash burn was $1.5m in the quarter and $3.5m for the YTD. Cash remaining was $3.1m, so LNU has enough cash for 2.1 more quarters at the current burn rate.  Operationally, the highlights were NBL (basketball league) and Wolverhampton Wanderers (English Premier League team) going live.  UK partner Swanbay also announced a partnership with global sports and events management firm IMG, to deploy the LNU system. We believe that LNU is now on the cusp of commercialising its unique video search, recompilation and personalised video channel technology across a number of potentially large applications in Sport and Higher Education (universities). LNU currently has minimal revenues with only 3 live commercial customers – Racing.com, NBL and Wolves (via Swanbay). (We don’t count Grafa yet as it hasn’t officially launched). Major new Sport customers are likely to be on a pay per minutes of download basis (with no base fees or up-fronts, at this early stage). However in the university sector, multi-year contracts with annual software and maintenance payments up front are the norm. We think that LNU will need another capital raising in the next 6 months, unless it can secure several large university contracts with up-front payments. This would be extremely good news for LNU if it happens. Our forecasts should be considered HIGH RISK and INDICATIVE ONLY, as a wide range of outcomes are possible (Success in each targeted sector, customer adoption rates, churn, pricing, timing of deals, etc. etc.).

Page 9 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

1H21 Results  LNU posted a loss of $2.7m (v loss of $4.7m pcp). Revenue was again immaterial at just $57k (v $24k pcp). Operating costs were $2.5m (v $4.5m pcp) down -45% which was helpful.  The cash burn was -$2.0m (V -$4.3m pcp).  Net cash was $4.5m at end-Dec, enough for 4 more quarters at the current burn rate.  Operationally, the highlight was the official launch on 25 November of the Whizzard Solutions products for business meetings (Whizzard Meet) and education (Whizzard Learn). Some trials are apparently underway but nothing warranting an ASX announcement as yet.  New US-based NED (John Wallace, ex Deluxe and NBC Universal, 30 years in tier 1 video and media) and new Advisory Board member appointed (Rob Scott, ex Hewlett Packard, and a technology start up specialist; 30 years’ experience).

Linius Technologies Limited (LNU) - Analysis of 1H21 Results 6 Months ended Dec ($m) 1H20 2H20 FY20 1H21e Change 1H21e Variance Our comments Year ended June ($m) on pcp Sequoia Op. Revenue - Group 0.024 0.036 0.060 0.057 136% 0.050 13% Revenue still tiny at $57k (Racing.com) Revenue growth nm 147.7% 312.8% 135.7% 108.3% Immaterial increase

Other Income 0.0 0.0 0.0 0.0 -100% 0.0 Cash Operating Expenses -4.4 -2.8 -7.2 -2.4 -46% -2.8 -14% Operating expenses down from peak Share based payments (non cash) -0.1 -0.1 -0.1 -0.1 -3% -0.2 -58% Operating costs -4.5 -2.8 -7.3 -2.5 -45% -2.9 -16% Operating expenses down from peak EBITDA -4.5 -2.8 -7.3 -2.4 -46% -2.9 -16% $2.4m Ebitda loss Ebitda Margin nm nm nm nm nm

Depreciation & Amort -0.3 -0.3 -0.6 -0.3 1% -0.3 -4% EBIT -4.7 -3.1 -7.8 -2.7 -43% -3.2 -15% Ebit Margin nm nm nm nm nm

Interest Income (Expense) 0.0 0.0 0.0 0.0 0.0 Share of Assoc NPAT 0.0 0.0 0.0 0.0 0.0 Pre-tax profit -4.7 -3.1 -7.8 -2.7 -43% -3.2 -15% Income Tax Credit (Expense) 0.0 0.0 0.0 0.0 0.0 Tax Rate 0.0% 0.0% 0.0% 0.0% 0.0% Minorities (share of loss) 0.0 0.0 0.0 0.0 0.0 Abnormals 0.0 0.0 0.0 0.0 0.0 NPAT (reported) -4.7 -3.1 -7.8 -2.7 -43% -3.2 -15% $2.7m loss was better than we expected Adjustments (Abnormals) 0.0 0.0 0.0 0.0 0.0 NPAT (normalised) -4.7 -3.1 -7.8 -2.7 -43% -3.2 -15%

EPS (reported)(cents) -0.4 -0.2 -0.7 -0.2 -56% -0.3 -30% EPS (normalised)(cents) -0.4 -0.2 -0.7 -0.2 -56% -0.3 -30%

Share count (Wavge) m 1,103.4 - 1,161.3 1,409.8 28% Share count up 28% due to $5.25m placement Shares on issue (period end) m 1,178.5 - 1,310.3 1,511.6 28% Share count up 28% due to $5.25m placement

Cash Flow Cash receipts 0.019 0.040 0.059 0.062 2.205 0.055 12% Cash receipts from customers still tiny at $62k Operating cash flow -4.3 -2.9 -7.2 -2.0 -53% -2.9 -29% Cash burn $2.0m was much better than we expected

Investing cash flow 0.0 0.0 0.0 0.0 -85% 0.0 Financing cash flow 5.2 0.0 6.5 5.0 -5% 4.7 6% Raised $5.25m gross ($5.0m net of costs) in Oct & Apr Change in cash 0.9 -1.6 -0.7 2.9 234% 1.8 61%

OCF per share (cents) -0.4 -0.2 -0.6 -0.1 -63% -0.2 -41%

Balance Sheet Net Cash (Debt) 3.2 1.6 4.5 43% 1.6 185% $4.5m cash remaining

Receivables 0.091 0.125 0.051 -45% 0.1 -60% Inventories 0.000 0.000 0.000 0.0 Payables -0.406 -0.255 -0.437 8% -0.3 72% Payables $437k significantly exceed receivables Working capital -0.315 -0.129 -0.387 23% -0.1 199%

Intangibles 3.2 2.9 2.7 -17% 2.9 -9% Total Shareholders' Equity 6.1 4.4 6.8 11% 5.9 14%

Source: Company results; Sequoia analysis

Page 10 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

Changes in forecasts We have lowered our revenue estimates for FY21, 22, 23 and 24 by -88%, -62%, -57% and -40% for the reasons below. Our changes are mainly due to timing of project launches, and our assumptions on the speed of the early ramp up. Despite our downgrades, commercialisation with some high quality potential customers appears to be getting closer (e.g. Australian universities and IMG in UK/ European sport).  We push back the expected start of Indonesian soccer league with SportsHero (SHO) by another year to FY22, due to ongoing Covid disruption.  We push back a possible Euro defence / security project by 1 year to FY23.  We adopt more conservative assumptions on UK soccer highlights (we now assume 6 minutes of highlights rather than 10, based on early feedback on Wolves basic highlights coming in at just under 5 minutes per user session. (LNU gets paid per minutes of downloads).  We reduce forecasts for Business meetings via the LiveTiles partnership, which doesn’t seem to be getting much traction yet. LNU believes it just needs a few reference customers to be signed, and the new business will start to flow (nobody wants to be first).  We increase forecasts for Tertiary Education (Universities) based on encouraging feedback from LNU to date, and our new research into the sector and new modelling. We are forecasting some large revenue numbers here. We caution investors and potential investors that LNU still has not signed any university deals to date.  Our valuation is based on 3.0 to 5.0x EV / Sales (enterprise value to sales multiple) is now $0.13 to $0.19 per share (previously $0.25 to $0.35). This still represents significant upside to the current 2.2c share price and $33m market cap.  We have also considered 3 different valuation scenarios (see next page).

Linius Technologies Ltd (LNU) FY20A FY21e FY22e FY23e FY24e Changes in Forecasts Years ending June $m Old New Change Old New Change Old New Change Old New Change Group revenue 0.060 1.0 0.1 -87.8% 21.0 8.0 -62.1% 60.2 26.0 -56.8% 79.6 47.7 -40.1% Revenue growth % 313% 1573% 104% 1993% 6391% 186% 227% 32% 83%

Other income (Govt. grants) 0.01 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Cash operating expenses -7.2 -5.7 -5.7 0.0% -6.2 -6.2 0.0% -6.7 -6.7 0.0% -7.2 -7.2 0.0% Ebitda before share based payments -7.1 -4.7 -5.6 18.7% 14.8 1.8 -88.0% 53.5 19.3 -63.9% 72.4 40.5 -44.1%

Share-based payments -0.1 -0.3 -0.3 0.0% -0.3 -0.3 0.0% -0.3 -0.3 0.0% -0.4 -0.4 0.0% EBITDA -7.3 -5.0 -5.9 17.6% 14.5 1.5 -90.0% 53.1 19.0 -64.3% 71.8 40.1 -44.2%

Depreciation & Amortisation -0.6 -0.6 -0.6 0.0% -0.6 -0.6 0.0% -0.6 -0.6 0.0% -0.7 -0.7 0.0% EBIT -7.8 -5.6 -6.5 15.7% 13.9 0.8 -94.0% 52.5 18.3 -65.1% 71.1 39.4 -44.6% Interest income (expense) 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 Pretax profit (loss) -7.8 -5.6 -6.5 15.7% 13.9 0.8 -94.0% 52.5 18.3 -65.1% 71.1 39.4 -44.6% Tax credit (expense) 0.0 0.0 0.0 0.0 0.0 -5.2 0.0 -100.0% -17.8 -3.9 -77.8%

Abnormals - restructure costs 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 NPAT (reported) -7.8 -5.6 -6.5 15.7% 13.9 0.8 -94.0% 47.2 18.3 -61.2% 53.4 35.5 -33.5%

Abnormals 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 0.0 NPAT (norm) -7.8 -5.6 -6.5 15.7% 13.9 0.8 -94.0% 47.2 18.3 -61.2% 53.4 35.5 -33.5% EPS (norm) -0.7 -1.9 -0.4 -77.3% 4.6 0.1 -98.8% 3.0 1.2 -61.2% 3.4 2.3 -33.5% DPS 0.0 0.0 0.0 n/a 0.0 0.0 n/a 0.0 0.0 n/a 0.0 0.0 n/a

Cash Flow: Cash from Operations -7.2 -5.0 -5.8 16% 14.3 1.4 -91% 53.9 19.7 -63% 72.1 40.4 -44%

Balance Sheet: Net cash (debt) 1.6 1.2 0.4 -65.1% 15.5 1.7 -89.1% 69.3 21.3 -69.2% 141.3 61.6 -56.4% Shares on issue (weighted avge)(m) 1,161.3 1,529.5 1,529.5 0.0% 1,554.8 1,554.8 0.0% 1,575.4 1,575.4 0.0% 1,575.4 1,575.4 0.0% Equity Valuation ($m): Low: 3.0x EV / Sales Market cap $m: 33.1 380.1 204.6 -46.2% High: 5.0x EV/ Sales 539.3 300.0 -44.4% Valuation per share ($) Low: 3.0x EV / Sales $ 0.248 $ 0.134 -46.2% High: 5.0x EV/ Sales $ 0.353 $ 0.190 -46.0%

Source: Sequoia estimates

Page 11 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

Valuation and Recommendation It is difficult to value LNU’s shares when the company is in “Early Launch” mode, and there isn’t a long-term track record or large number of customer deals to analyse. We have made numerous assumptions on timing, user numbers, revenues and costs. We will refine our forecasts as further deals are announced, and better information becomes available. Investors should regard our forecasts as INDICATIVE ONLY. A wide range of revenue and valuation outcomes is possible. We value LNU on an Enterprise to Sales multiple basis. We believe that a multiple of 3.0x to 5.0x year 3 sales (FY24) would be reasonable, which implies a share price valuation range of $0.13 to $0.19 per share. Please note, this includes an estimated $62m of cash (4.1 cents per share) on the balance sheet that we expect to be generated by June 2024. Some investors may prefer to deduct this, as that cash has not been created / earned as yet. Scenario Analysis We have prepared 3 different valuation scenarios to help provide investors with a better idea of our thinking on Linius, and its’ exciting potential.  Scenario A – is a low case whereby LNU progresses modestly in each targeted area, but no real knock-out deals. Under this scenario, revenue in FY24 could be around $7.7m which would see LNU just profitable. We expect an FY24 cost base of around $7.6m, so LNU would be profitable under this scenario. Applying a 3.0- 5.0x revenue multiple would value LNU at around $0.015 to $0.025 per share.  Scenario B – is a more optimistic medium case whereby LNU wins some multimillion revenue deals. Under this scenario, revenue in FY24 could be around $39m. Applying a 3.0-5.0x revenue multiple would value LNU at around $0.08 to $0.13 per share. A significant increase on the current share price.  Scenario C – is the “Goldilocks” scenario whereby LNU wins some multimillion revenue deals, including some potentially big-ticket government or defence security contracts. Under this scenario, revenue in FY24 could be around $90m. Applying a 3.0-5.0x revenue multiple would value LNU at around $0.18 to $0.30 per share. That is a massive increase on the current share price.  Our actual revenue forecast for FY24 is $48m, which is in the middle of Scenarios B and C. The university sector is a major part of our forecasts. We could be out by a wide margin with our assumptions. LNU is a break-through technology company with a growing list of potential applications.

24-mth Price Target and Recommendation We think investors should adopt a 2-3 year time frame when considering investing in this stock, to allow time for LNU’s various deals to develop and show traction. Accordingly, we set a 24-month price target rather than the traditional 12-month time frame. We set our 24-month price target at $0.10 per share, being the mid-point of our Scenario B valuation range. Our previous price target of $0.25 was effectively our “optimistic case” which has changed slightly. We rate LNU a High Risk, Speculative Buy. If the new customer wins in Education come to fruition in coming quarters, LNU will be transformed to a company with recurring revenues, probably paid 12-months in advance, under 3-year contracts with high quality semi-government organisations. Possible overseas Education customers would further expand the customer base and diversify risk. This could happen in the next 2-3 quarters. Sport and Business meetings offer further upside. We are excited by the potential of LNU on multiple fronts.

Page 12 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

LNU: Valuation Scenario Analysis Scenario A Scenario B Scenario C Based on FY24 revenues Low Case Medium Case High Case Ref A$m A$m A$m Thoroughbred Horse Racing A Australia - Racing.com (Vic & SA only)(assume 30% pa growth) 0.1 0.1 0.2 Australia - Assume Sky Racing also signed for other States ??? Australia - Sports Betting deal (assume commences FY23 at $250k, 30% pa g) 0.0 0.3 0.3 UK / Europe (assume commences FY22 at A$500k; 30% pa growth) 0.0 0.0 0.8 USA (assume commences FY23 at A$500k; 30% pa growth) 0.0 0.7 1.0 Rest of World (assume commences FY23 at A$250k; 30% pa growth) 0.0 0.0 1.0 Subtotal 0.1 1.0 3.3

Basketball B Australia - NBL (commenced 17/3/21)(assume $100k pa & 30% pa growth) 0.1 0.2 0.2 USA (assume commences FY23 at A$500k; 30% pa growth) 0.0 0.7 2.0 Other countries 0.0 0.0 1.0 Subtotal 0.1 0.8 3.2

Soccer C Indonesia PSSI - (Agt with SportsHero ASX: SHO announced 1/7/19) 0.0 0.5 2.0 UK / Europe (Wolves commenced March 2021; + A.N.OTHER expected) 0.1 1.0 1.6 Other countries (assume $500k initial & 30% pa growth) 0.0 0.7 2.0 Subtotal 0.1 2.2 5.6

Other Sports (Cricket, rugby, grid-iron, motor racing, golf, tennis, baseball, ice-hockey etc) D Australia (assume 1 new sport at $100k pa, 30% pa growth 0.1 0.2 0.2 UK / Europe (assume commences FY22 at A$500k; 30% pa growth) 0.0 0.7 1.0 Other countries 0.0 0.5 1.0 Subtotal 0.1 1.3 2.2

Total Sports 0.4 5.3 14.3 E

F Australian universities @ avge of $400k pa each (4x / 8x /22x) 1.6 3.2 8.8 US universities @ avge of A$500 pa each (10x / 30x / 60x) 5.0 15.0 30.0 R.O.W universities @ $400k each (0x / 20x / 40x) 8.0 16.0 Subtotal 6.6 26.2 54.8

Business Meetings (Whizzard Meet) G LNU /LiveTiles (assume sign 20, 40, 60, 80 custs, 1,000 seats ea at A$3.00/ mth) 0.2 2.2 5.0 A.N.Other - Cisco Webex (assume same as LiveTiles deal) 0.2 2.2 5.0 A.N.Other - Zoom (assume same as LiveTiles deal) 0.2 2.2 5.0 Subtotal 0.6 6.5 15.0

Business News Service H Grafa (announced 6/5/20)(soft launch Dec 2020, Assume $50k pa, 30% growth) 0.0 0.1 0.2 A.N. Other international deal 0.1 0.5 2.0 A.N. Other international deal 0.0 0.0 1.0 Subtotal 0.1 0.6 3.2

Defence / Security I European agency (pilot ann 6/5/20); Assume FY23 start at $500k, then 30% pa growth0.0 0.7 3.0 A.N.Other 0.0 0.0 1.0 A.N.Other 0.0 0.0 1.0 Subtotal 0.0 0.7 5.0

Total Education, Business & Defence Revenue 7.3 33.9 78.0 J

Total Scenario Revenue - FY24 7.7 39.2 92.3 K Valuation - Low EV / Sales 3.0x 23.1 117.6 276.9 Shares on issue 1,549.9 1,549.9 1,549.9 L Implied share price $ 0.015 $ 0.076 $ 0.179

Valuation - High EV / Sales 5.0x 38.5 196.0 461.5 Shares on issue 1,549.9 1,549.9 1,549.9 M Implied share price $ 0.025 $ 0.126 $ 0.298 Source: Sequoia estimates. Our actual revenue forecast for FY24 is $48m, which is between Scenario B and Scenario C.

Page 13 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

Detailed Revenue Model

LNU - Revenue Forecast - Summary WARNING: Linius is an early stage company. Our estimates are highly speculative and uncertain at this stage Ref Years ended June ($m) FY20A FY21e FY22e FY23e FY24e FY25e

A Thoroughbred Horse Racing Australia - Racing.com (Vic & SA only)(assume 30% pa growth) 0.060 0.078 0.101 0.132 0.171 0.223 Australia - Assume Sky Racing also signed for other States ??? 0.000 0.000 0.000 0.000 0.000 0.000 Australia - Sports Betting deal (assume commences FY23 at $250k, 30% pa g) 0.250 0.325 0.423 UK / Europe (assume commences FY22 at A$500k; 30% pa growth) 0.500 0.650 0.845 1.099 USA (assume commences FY23 at A$500k; 30% pa growth) 0.500 0.650 0.845 Rest of World (assume commences FY23 at A$250k; 30% pa growth) 0.250 0.325 Subtotal 0.060 0.078 0.601 1.532 2.241 2.914

B Basketball Australia - NBL (commenced 17/3/21)(assume $100k pa & 30% pa growth) 0.010 0.100 0.130 0.169 0.220 USA (assume commences FY23 at A$500k; 30% pa growth) 0.500 0.650 0.845 Other countries 0.000 0.000 0.000 Subtotal 0.000 0.010 0.100 0.630 0.819 1.065

C Soccer Indonesia PSSI - (Agt with SportsHero ASX: SHO announced 1/7/19) 0.000 0.492 1.338 2.035 2.700 UK / Europe (Wolves commenced March 2021; + A.N.OTHER expected) 0.010 0.353 1.094 1.592 2.091 Other countries (assume $500k initial & 30% pa growth) 0.500 0.650 0.845 Subtotal 0.000 0.010 0.845 2.932 4.278 5.636

D Other Sports (Cricket, rugby, grid-iron, motor racing, golf, tennis, baseball, ice-hockey etc) Australia (assume 1 new sport at $100k pa, 30% pa growth 0.000 0.100 0.130 0.169 0.220 UK / Europe (assume commences FY22 at A$500k; 30% pa growth) 0.500 0.650 0.845 Other countries 0.500 0.650 Subtotal 0.000 0.000 0.100 0.630 1.319 1.715

E Total Sports 0.060 0.098 1.647 5.724 8.657 11.329

F Education (Whizzard Learn) Australian universities (assume 8, 16, and 22 signed at $400k pa each) 3.200 6.400 8.800 8.800 US universities (assume 1, 10, 30, 60 signed at A$500k pa each) 0.500 5.000 15.000 30.000 R.O.W. universities - Assume 1, 10, 20, 40 signed at A$430k pa each) 0.400 4.000 8.000 16.000 Subtotal 0.000 0.000 4.100 15.400 31.800 54.800

G Business Meetings (Whizzard Meet) LNU /LiveTiles (assume sign 20, 40, 60, 80 custs, 1,000 seats ea at A$3.00/ mth) 0.000 0.720 1.440 2.160 2.880 A.N.Other - Cisco Webex (assume same as LiveTiles deal) 0.000 0.720 1.440 2.160 2.880 A.N.Other - Zoom (assume same as LiveTiles deal) 0.000 0.720 1.440 2.160 2.880 Subtotal 0.000 0.000 2.160 4.320 6.480 8.640

H Business News Service Grafa (announced 6/5/20)(soft launch Dec 2020, Assume $50k pa, 30% growth) 0.025 0.050 0.065 0.085 0.110 A.N.Other 0.000 0.000 0.000 0.000 A.N.Other 0.000 0.000 0.000 0.000 Subtotal 0.000 0.025 0.050 0.065 0.085 0.110

I Defence / Security European agency (pilot ann 6/5/20); Assume FY23 start at $500k, then 30% pa growth 0.000 0.000 0.500 0.650 0.845 A.N.Other 0.000 0.000 0.000 0.000 A.N.Other 0.000 0.000 0.000 0.000 Subtotal 0.000 0.000 0.000 0.500 0.650 0.845

J Total Business, Education & Defence Revenue 0.000 0.025 6.310 20.285 39.015 64.395

K Total Revenue 0.060 0.123 7.957 26.009 47.672 75.724

Source: Sequoia estimates NB. Yellow highlighting indicates a deal has already been announced, so we have a basic framework for our estimates

Page 14 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

Reasons to Buy (updated from our 3/12/20 initiation report) 1. The Age of Video streaming - According to Sandvine’s 2019 Global Internet Phenomena Report, video streaming now accounts for over 60% of downstream traffic on the internet. Web-browsing was 13%, Gaming 8% and Social Media 6%. LNU is aimed at the largest, fast growing segment. 2. Unique technology unlocks value and creates new use cases for video content residing on platforms or stored and gathering dust in on-premise servers or in the cloud. For Sporting applications, it has potential to increase user / fan engagement, time spent on the website, increase advertising and sponsorship revenues, reduce churn, and create new revenue streams (e.g. A personalised video channel of your favourite teams and players and actions). Possible expansion to global Sports Betting providers could also be significant. 3. New “Whizzard” product for video-conferences, business meetings and higher education looks an ideal product for these post-Covid times. According to the LVT announcement, Microsoft Teams has 115 million daily active users, up 53% since April. Further, 22% of people are currently recording their video meetings. We think that University lectures would be close to 100% recorded. Zoom has 300 million users (participants) per day and Cisco WebEx 330 million users (March 2020 figure). Zoom and Webex combined represent 52% of the video-conferencing market, implying a total market of around 600 million users. We think that Business meetings and University lectures would be a reasonable portion of this. Zoom had over 370,000 enterprise customers with over 10 employees using its system at July 2020, up an astonishing +458% on the pcp.

Zoom Video Comms (ZM.O) FY19 Q1 Q2 Q3 Q4 FY20 Q1 Q2 Yrs ended Jan (US$m) Year 30/04/2019 31/07/2019 31/10/2019 31/01/2020 Year 30/04/2019 31/07/2019

Revenue 330.5 122.0 145.8 166.6 188.3 622.7 328.2 663.5 growth (YoY) % 103% 96% 85% 78% 88% 169% 355%

EBIT 6.2 1.6 2.3 -1.7 10.6 12.7 23.4 188.1 EBIT margin 1.9% 1.3% 1.6% -1.0% 5.6% 2.0% 7.1% 28.3%

Customers with > 10 employees 50,870 58,500 66,300 74,100 81,900 81,900 265,400 370,200 growth (yoy) % n/a 78% 67% 61% 61% 354% 458%

Customers > $100k pa 345 405 466 546 641 641 769 988 growth (yoy) % n/a 104% 97% 86% 86% 90% 112% Source: Company reports; Key figures highlighted in yellow.

4. Racing.com provides early evidence of traction and benefits. The Racing.com application has been running for nearly two years now, and is now being expanded by Racing.com following positive results (increased customer engagement). We take a lot of comfort from this. It confirms a particular use case. It demonstrates that LNU can build and deploy effective products and integrate them with customer and other third-party systems. And it confirms that LNU can handle high volumes (e.g. over Melbourne Cup week). 5. Partners including Swanbay are confident – We have had multiple discussions with most of LNU’s business partners, who describe the technology as “remarkable” and “amazing” and are very positive on the commercial prospects. The confidence is very evident at Swanbay, and its determination to market the technology aggressively to its UK and global customer base with clients such as IMG. Separately, partner LiveTiles (LVT) was also very positive and enthusiastic when it’s Chief Product Officer, Simon Tyrell presented at LNU’s “virtual conference” on 30 June 2020. Finally, we understand that the Linius architecture has recently received WAFR (Well Architected Framework Review) accreditation from Amazon (AWS) following a comprehensive audit / review. This will soon allow Linius to be available on the AWS marketplace with co-selling sales campaigns expected to commence July 1.

Page 15 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) 6. LNU targeting big addressable markets / Scalable business model – Major sports, Business video-conferences and University lectures represent enormous potential user bases for LNU and its partners to address (e.g. Zoom had 300 million users; 370,000 enterprises with over 10 employees, and nearly 1,000 customers spending over US$100k pa on Zoom). The potential user numbers and revenue numbers available to LNU are eye-watering.

The pricing structure for Whizzard ranges from US$4.00 to US$32.00 per user per month depending on the package chosen. So a theoretical 1.0 million users would be revenue of A$66m per annum to LNU (refer table below) at the lowest price rate. LNU: Whizzard - Potential revenue LNU Revenue LNU Revenue Per Month Per Annum Per Month Per Annum US$ US$ AUD AUD Revenue per mth per user (USD) $ 4.00 $ 48.00 AUD / USD FX rate 0.73 0.73 No. of Users US$m US$m AU$m AU$m 500,000 $ 2.0 $ 24 $ 2.7 $ 33 1,000,000 $ 4.0 $ 48 $ 5.5 $ 66 5,000,000 $ 20.0 $ 240 $ 27.4 $ 329 10,000,000 $ 40.0 $ 480 $ 54.8 $ 658 50,000,000 $ 200.0 $ 2,400 $ 274.0 $ 3,288 100,000,000 $ 400.0 $ 4,800 $ 547.9 $ 6,575

Zoom (ZM) 300,000,000 300m+ users; including 370k customers with over 10 employees, and 988 customers spending >US$100k pa WebEx (CSCO) 324,000,000 (March 2020 figure) Source: Sequoia estimates; Zoom (ZM) quarterly reports 7. Other potential applications – Defence / Security, Video anti-piracy, Transcoding (US$1.8bn market per Frost & Sullivan), Video Storage (US$6bn pa market per Frost & Sullivan), Video Post-Production (US $20bn per Statista) and Blockchain represent other potential opportunities for LNU.

8. Remarkably low costs to serve. The Linius technology does not create duplicated video files. It extracts and compiles the personalised “highlights” reel by accessing the files behind the owners’ firewall, on-the-fly. So there are no expensive data storage costs. Further, the system is fully automated and driven by user request parameters. No human hands required. And LNU’s business model is to partner with others to access their existing video content and in most cases, existing user bases (e.g. PSSI Indonesia’s 80 million soccer fan database). So customer acquisition costs are exceptionally low. Finally, LNU has noted the considerable assistance being provided by Amazon (AWS) and Microsoft.

Cash operating costs in FY20 were $7.2m (v $10.6m). This included $2.7m (v $4.3m) of software development costs fully expensed (LNU does not capitalise development costs). We have allowed for a fairly modest 8% per annum increase in cash operating costs, for LNU to add some new roles to support the expected growth and future expected deals. 9. Strong cash generation – On our forecasts, LNU may require one more small capital raising (~ $2.0m) before it becomes cash flow positive and self-sustaining in FY22. Once revenues ramp up to an inflection point, LNU should be strongly cash- flow positive. 10. Strong and frequent news-flow expected – Project commencements (e.g. Universities, EPL soccer teams, other professional sporting teams or leagues or sporting events such as golf and tennis with IMG or Whisper TV, Business meetings customer signings, Indonesian PSSI soccer restart), new deals, new applications we haven’t discussed, and ramp-up of customer numbers, user numbers and revenues.

Page 16 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) Risks / Negative Factors (updated from our 3/12/20 initiation report) 1. Cash Burn – was $7.2m in FY20 and $2.0m in 1H21. We expect it will be another burn of around $5.7m in FY21 before becoming positive $1.4m in FY22. LNU has been dependent on new and regular equity financing historically, and may require one small further raise (~$2.0m) in CY21 before becoming cash-flow positive and self-sustaining in FY22, on our forecasts. 2. Minimal existing revenues; LNU effectively in Launch mode – Operating revenue in FY20 was just A$60k and Receipts from customers $59k (probably all from Racing.com). We expect this to change significantly in coming quarters as partnership deals launch, and end-customers are found. Also further UK or European football deals are still possible for FY21 (e.g. end of season highlights). 3. Some previous pilots did not continue – LNU’s test / pilot with Village Roadshow and Warner to address video piracy did not lead to any commercial outcome (at least at this stage), and an announced trial with Italy’s largest pay-tv broadcaster Sky Italia did not proceed (refer ASX announcement 9/6/20). Fortunately, LNU has multiple potential applications, with multiple credible partners in different industry verticals (so multiple shots on goal). We think LNU was right to persevere with other applications looking easier / more promising - particularly Business meetings / video conferencing which is experiencing a massive boom in demand thanks to Covid. We would not be surprised to see LNU re-visit the Warner opportunity once it has some more runs on the board. 4. Single Technology risk – From our discussions with LNU management, the original technology inventor, LNU’s business partners, LNU’s advisory board members and some other industry contacts, we believe the Linius Video Virtualisation Engine (VVE) technology is unique, and has a clear competitive advantage over rival systems which do not seem to be fully automated and personalised (bespoke). The strong conviction being demonstrated by LiveTiles (LVT, market cap $156m) and support evidently being provided by Amazon Web Services (AWS) and Microsoft also provides some degree of validation, as does the confidence displayed and expressed to us by other LNU business partners (SportsHero SHO, Swanbay, Racing.com, and Grafa) and new NED John Wallace. If we see some major sporting leagues sign up in the near future, that will provide further important validation of the competitive advantage. But competition is a good thing, and new technologies could emerge which reduce LNU’s competitive advantage. 5. Pricing Models still to be proven – LNU has revealed two main pricing models so far. For Whizzard (Business meetings & Higher Education/ Universities) the pricing is US$4.00 / US$9, US$8 and US$32.00 per user per month depending on the package and number of minutes of virtualised video utilised. For Sports, LNU’s standard pricing is US$0.0022 per minute, reducing to US$0.0012 for high volumes. The Racing.com deal also includes a base fee of around A$60k per annum (We expect future base fees will be higher than this “honeymoon rate”). It remains to be seen whether these rate card prices hold, but they do not seem unreasonable to us. 6. Small Team, Big eyes for Big customers – LNU currently has around 20 staff and $3.1m cash in the bank. The CEO Chris Richardson is based in Europe (Prague) and the Chairman Gerard Bongiorno and operations staff are in Melbourne. IT staff are mainly in London. As a key, and differentiated technology provider, LNU does not need to be a large company to be successful. Its partnering strategy overcomes LNU’s small size and geographic limitations. But LNU does not have huge human resources or financial resources behind it should something major go wrong. Also LNU does not have any major institutional shareholders at this stage.

7. Partner Risk – We note that several of LNU’s partners are small companies, which may not be adequately funded or resourced. Grafa is an unlisted start-up. Swanbay is a small UK private company. SportsHero (SHO) is listed but has a market cap of just $13m and minimal revenue to date.

Page 17 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

Potential Share Price Catalysts 1. First deals and first revenues in key focus areas: √√√ Education / Corporate meetings /, via partnership with LiveTiles (LVT). √√√ Education / Corporate meetings /, directly, or via Amazon Web Services (AWS) and other resellers √√√ UK / Euro major sports club deals via partnership with Swanbay. √√ Indonesian soccer re-start via partnership with SportsHero (SHO). √ Racing.com expansion (underway) 2. New system integrations increasing LNU’s total addressable market √√√ Zoom – announced November 2020 and available now. Self-service functionality added April 2021. To be added to the Zoom Marketplace by end of June. √√√ Cisco Webex – announced November 2020 and available now. Self- service functionality added April 2021. To be added to the Cisco Webex Marketplace in July. 3. Medium term opportunities √√√ Integrations with major sports betting companies (presumably Australia first, then overseas). √√√ First US deployment – Could be in any of the above categories. √√ Defence / security – initial deployments. 4. New product launches – in any of the above segments. 5. New use cases – in any of the above segments, or new segments. 6. Achieving revenue milestones E.g. First $1.0m; $3m, $10m etc. 7. Becoming cash-flow positive (We expect in FY22). 8. Quarterly reports – next one due end July. 9. Increased analyst coverage and market understanding. 10. Increased institutional ownership.

Page 18 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) Appendix 1 – Linius – Detailed Company Description Linius Technologies Limited (LNU) is an Australian company that has designed and patented the world’s first “video virtualisation engine” (VVE). The technology transforms large inflexible video files into small highly flexible data structures. According to Linius, the existing workflow process for video is inefficient, being a legacy of pre-digital video days. Managing video assets is a complex, labour-intensive and expensive process for media infrastructure providers, content owners and broadcasters. The internet was not designed to handle these large, inflexible files. The Linius process applies two techniques to video – Data indexing and Virtualisation. The technology is designed to dramatically simplify the manipulation and delivery of internet video. It enables video to be retrieved, indexed, spliced, edited and served to users programmatically in advance, to provide a personalised video stream unique to each user, all in milliseconds. Costs to serve are extremely low. Linius believes that no other competitor can do this in an automated fashion, and on-the-fly. No manual retrieval or editing is required. All requests are freshly searched for that individual customer. Personalised advertising can also be inserted into the stream. LNU stores no content at all. Video content remains stored securely behind the content owners’ firewall.

Source: Linius How Video indexing works The owners of commercial video content such as sports and news routinely apply a layer of “metadata” to their content, usually by deploying artificial intelligence to tag and time stamp various parts of the video. This enables for example, game highlights to be extracted for TV news or other specialist post-match TV programs. Specialist metadata companies exist to record a myriad statistics on every game of major sports. Champion Data is the official statistics provider for the AFL in Australia. Stats Perform is the biggest provider globally covering 83,000 events annually from over 300 leagues and competitions. Refer: https://www.statsperform.com/ Metadata describes the data, but is not the data itself. It is critically important for website and database management. E.g. a web page, a document or a file.

Page 19 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)  Descriptive or ownership metadata properties include title, subject, genre, author, and creation date.  Rights metadata might include copyright status, rights holder, or license terms.  Technical metadata properties include file types, size, creation date and time, and type of compression. Technical metadata is often used for digital object management and interoperability.  Preservation metadata is used in navigation. Example preservation metadata properties include an item's place in a hierarchy or sequence.  Markup languages include metadata used for navigation and interoperability. Properties might include heading, name, date, list, and paragraph.  Metadata for video is particularly helpful because video, unlike a document, does not include keywords as text. It is the keywords that computers and search engines use to search for content in videos.  Video metadata is the text inside the video file that references the video – what is included in the video and what type of content is available in the video. Search Engines cannot automatically crawl videos, so have to rely on text data associated with the video. E.g. Title, description, tags; Video Codec, resolution, encoding, links to de-cription keys, camera angles etc.  Time-based metadata – is the extremely granular indexing added to virtually every minute of a typical major sport vide. E.g. in soccer, every pass, kick, shot on goal, goal, post-goal celebration, post-match celebration, and player and coach post-match interviews are typically indexed.

The Linius Technology We have seen a number of demonstrations of the system over the last year, and think it is truly remarkable. For example, a bespoke video of all Manchester United goals, corner kicks, red cards, post-match celebrations, the singing of the team song, and the post-match interview with the team manager - going back say 10 years, can all be assembled on demand, in an instant. At virtually no cost. No expensive video editing staff required. No manual intervention required, other than specifying the search parameters. In a horse racing setting, video extracts of the last 250 metres or 500 metres of a particular racehorse’s last few races, on a heavy track, or soft track, could be assembled on-the-fly to help a punter decide whether and how much to bet. In a corporate or educational setting, a video extract of all discussions around a selected topic such as “Global Warming” or “Japanese deflation” can be assembled on-the-fly from years of video libraries of meetings or lectures. Quote from LiveTiles We received the following quote from Linius partner LiveTiles Limited (LVT) which we think sums it up beautifully: “Video is a great asset within organisations but it is often “dumb” where it is trapped in its complete form. Linius unlocks that and treats it like any other data source. That’s why we are excited to be working with them….Seriously, who has time these days to watch hours of video in the workplace? A personal highlights reel focused on the important stuff makes so much sense." – Our discussion with Simon Tyrell, Chief Product Officer, LiveTiles, 16/9/20.

Page 20 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) Appendix 2 – Swanbay partnership (UK / Euro Sports)

Source: https://www.swanbay.tv/personalize-video.php On 8/10/19 LNU announced Swan Bay Limited (Swanbay) as a distribution partner for UK and Europe, home of some of the world’s largest sporting clubs and leagues. Swanbay is a UK and European-based digital content and customer engagement company. It provides web and mobile services to many of the biggest brands in global sport. This comprises Leagues, Federations, Clubs, Rights Holders, Team Owners, Mobile Telcos and the major Production Houses managing broadcast content. Swanbay has developed a Global Content Distribution Platform (GCDP), a turnkey solution which includes billing, user engagement, content distribution, rights management, and advertising - to be used by content partners, telcos etc. to increase reach and revenue, reduce churn, and deliver more engaging digital services. Swanbay provides online and app services with editorial content, quizzes, lotteries, video, chat, digital scratch-cards, keyword and QR code campaigns; mobile coupons and loyalty programs, geofence campaigns (proximity marketing around key points of purchase), voting, polling and survey tools, etc. New products Swanbay has integrated the Linius technology into its GCDP platform, and seems genuinely excited about the potential it brings. We understand that Swanbay is currently engaged in discussions and demonstrations with major industry players discussed above developing products and POC’s (Proof of Concepts) across Football (multiple codes), UFC, Golf and Tennis. As a strategic partner of Linius, Swanbay is actively introducing the Linius technology as a key part of its offering in the interactive video and broadcast sector. The offering is based on fan engagement and specifically uses Linius in its suite of products – Highlight+, Player+, Archive+ and Edit+ (see illustrations on next page). “Highlight+” and “Player+” give the fans the ability to watch what they want when they want – selecting matches & action (from over 300 options, goals, penalties, fouls, saves, assists etc) and instantly seeing just that in a video prepared just for them. “Archive+” covers previous seasons and drives real engagement and value from the hours of action from large video archives. Not only every goal from every match in the 28 years of English Premier League at your fingertips but all the action you could ever want to see again in seconds.

Page 21 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

Creating a personalised highlights reel from recent matches, or years’ of archived matches.

Page 22 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

This looks to be probably the most exciting and ambitious application of the Linius technology we have seen to date. As a key partner Linius would be exposed to exciting new projects and products being developed by Swanbay and its “A-list” of partners (and potential partners). We profile two major industry players at Appendix 1 and Appendix 2. We also show at Appendix 3, details of attendances at major sporting leagues around the world, as a possible indicator of fan viewership trends. Covid-19 has caused delays, but we understand that negotiations have continued, and commercial deals are now close. Sporting bodies and video rights holders will be looking ahead to a post-Covid environment, and new ways to generate revenue.

Swanbay background “Our suite of marketing & engagement services is globally unrivalled from digital scratch cards all the way through to hyper personalised video channel delivery”. Refer: https://www.linkedin.com/company/swanbay/ Swanbay was founded in 2009. It has a small team of 11 staff in the UK operating from offices in London and Europe, plus an IT development team of 10-12 in India.  CEO: Steve O’Meara has 27 years’ experience in IT and digital marketing.  Chief Commercial Officer: Danny Crossen has 23 years’ experience in Media and Marketing and is a specialist in creating and delivering digital strategies focussed on Sport, Telecoms, e-Sports, Entertainment and on-line retail marketing. He has worked at both Manchester City and Manchester United Football Clubs.  Advisor and major investor: Duncan McIntyre, current Chairman of 5 unlisted technology companies in the UK), former CEO and Deputy Chairman of Morse plc (14 years, UK listed until taken over for £70m in 2010); Chairman or director of a number of other Tech / Fintech companies.  Commercial Growth Advisor: Jonathan Rigby, was International Head of

Page 23 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) Marketing at Manchester United (5 years) managing partnerships and marketing in Europe, USA, Middle East and Asia. Currently Commercial and Marketing Manager for the UCI World Cycling Championship to be held in Scotland in 2023. Jonathan has extensive experience in marketing, major events, sports, charity, gaming and entertainment. He has worked extensively with UK Sport, Sport England, BBC, Scottish Government and International Sports Governing Bodies. Linius Revenue Opportunity With Swanbay’s 11-year history, and the prior background of several of its key executives, we think it is an excellent partner and well placed to commercialise the Linius technology with some of its partners / customers.

Page 24 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) Appendix 3 - IMG Entertainment (Swanbay’s partner) IMG is the global leader in sports, events, media and fashion, operating in more than 30 countries. Founded in 1960 with a single deal (with golf legend, Arnold Palmer) that would prove the advent of modern-day sports marketing, the company now represents and manages some of the world’s greatest sports figures and fashion icons; stages more than 700 live events and branded entertainment experiences annually; and is one of the largest independent producers and distributors of sports media. IMG also specializes in sports training; league development; and marketing, media and licensing for brands, sports organizations and collegiate institutions. In 2014, IMG was acquired by WME, a leading global entertainment agency, to form Endeavor. Refer: http://img.com/story/ Also: https://www.linkedin.com/company/img Headquarters: New York; 3,895 employees on LinkedIn.

IMG - Properties

Action sports (eg. Surfing) Cricket Football Golf Ice skating Miss Universe Motorsports Rugby Sail GP Tennis UFC World Table Tennis Others (Arts, Athleticon, Culinary, Fashion, Sneaker Con etc) Source: IMGevents.com/properties

Page 25 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) Appendix 4 – Whisper (competitor to IMG; Swanbay’s partner) Whisper is a breakthrough sports and live entertainment broadcast production company co-founded in 2010 by retired British Formula 1 driver David Coulthard and two experienced ex-BBC sports broadcasters.

Current portfolio of major sports rights Working with a raft of broadcasters, including Channel 4, BBC, Channel 5, BT Sport and Amazon Prime, it currently produces the following:  Formula One (coverage delivered for Channel 4 since 2016)(F1 established in 1950, now owned by American mass media company Liberty Media).  NFL (professional American football league consisting of 32 teams).  International Cricket (Eight teams: Australia, England, India, New Zealand, Pakistan, Sri Lanka, South Africa and West Indies compete).  W Series (open-wheel motor racing series for women drivers only).  SailGP (an annual international sailing competition founded by Larry Ellison (founder of Oracle) in 2019, using a single design high-performance F50 foiling catamarans. Seven international teams compete across a series of multiple grand prix at 5 around the world).  Rugby World Cup (Rugby Union; Japan 2019, next one due in NZ 2021)  Women’s Super League (WSL) (UK women’s soccer league established by the FA in 2010; currently 12 professional teams).  Women’s Six Nations (Rugby Union) (founded 1996; England, France, Ireland, Italy, Scotland and Wales compete annually).  The Paralympics (normally every four years).  Others. Description Whisper is a host broadcaster, remote production specialist, live event producer and quick-turnaround highlights creator. Its award-winning team now consists of over 80 staff members who work across three offices in London, Cardiff and Maidenhead. “At Whisper, we know that Entertainment is Everything. We want to break new ground, let’s write the future of entertainment together and change the landscape.”

Page 26 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) History & Ownership Founded in 2010 by David Coulthard (former British Formula 1 racing driver, turned presenter commentator and journalist), Sunil Patel (award-winning former producer at the BBC for Formula 1, The Olympic Games, FIFA World Cup and UEFA European Championship soccer) and Jake Humphrey (former TV and radio sports presenter, currently fronting Premier League Football on BT Sport – 6.5m TV viewers and 4.8m digital viewers). The UK’s Channel 4 “Indie Growth Fund” took a minority stake in 2015. In February 2020, Whisper became part of Sony Pictures Television.

Headquarters: Kew, London, England. 93 employees on LinkedIn. Refer: https://www.linkedin.com/company/whispertv/about Refer: https://www.whisper.tv

Source: https://www.whisper.tv/about

Page 27 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) Appendix 5 – List of Basketball teams & no. of Instagram followers

National Basketball League (NBL), Australia Instagram City Founded Followers Arena Ground (000's) Capacity NBN Instagram followers 170.0 1 Perth Wildcats Perth 1982 73.8 RAC Arena 15,500 2 Melbourne United Melbourne 1984 52.1 Melbourne Arena, Melbourne Park 10,500 3 The Hawks Wollongong 1979 50.6 WIN Entertainment Centre 6,000 4 Adelaide 36ers Adelaide 1982 38.2 Adelaide Entertainment Centre 11,300 5 Sydney Kings Sydney 1988 38.1 Qudos Bank Arena, Olympic Park 18,200 6 New Zealand Breakers Auckland 2003 30.0 Spark Arena, Parnell 9,300 Eventfinda Stadium, North Shore 4,179 7 South East Melbourne Phoenix Melbourne 2019 23.7 Melbourne Arena 10,500 State Basketball Centre, Wantirna 3,200 8 Brisbane Bullets Brisbane 1979 22.5 Nissan Arena, Nathan 5,000 9 Cairns Taipans Cairns 1999 13.0 Cairns Convention Centre 5,300 New team planned for 2021/22 season: 10 Tasmanian JackJumpers Hobart 2020 5.0 Derwent Entertainment Centre 5,400 Media Broadcasting Online Australia: SBS (67 games live Sat & Sun afternoons) and ESPN (59 games) Twitch New Zealand: Sky Sports USA Facebook Watch (52 games) Source: Wikipedia; Press articles, Instagram

The US NBA has 56m Instagram followers (v 170k for the NBL) and every one of its 30 teams has over 1.0m Instagram followers each, with an average of 3.9m per team. National Basketball Association (NBA) USA & Canada Instagram Followers (m) 24/5/21 NBA Instagram followers 56.2 1 Golden State Warriors 17.1 2 Los Angeles Lakers 16.5 3 Cleveland Cavaliers 9.1 4 Chicago Bulls 6.1 5 Boston Celtics 5.5 6 Houston Rockets 5.1 7 Miami Heat 4.8 8 Oklahoma City Thunder 4.7 9 LA Clippers 3.5 10 Toronto Raptors 3.3 11 Milwaukee Bucks 3.3 12 San Antonio Spurs 3.3 13 Brooklyn Nets 3.1 14 New York Knicks 2.8 15 Philadelphia 76ers 2.7 16 New Orleans Pelicans 2.3 17 Dallas Mavericks 2.2 18 Minnesota Timberwolves 2.1 19 Portland Trail Blazers 2.1 20 Indiana Pacers 2.0 21 Phoenix Suns 1.8 22 Charlotte Hornets 1.6 23 Atlanta Hawks 1.6 24 Washington Wizards 1.5 25 Denver Nuggets 1.5 26 Sacramento Kings 1.5 27 Orlando Magic 1.3 28 Detroit Pistons 1.2 29 Utah Jazz 1.0 30 Memphis Grizzlies 1.0 Total Instagram followers (m) 115.6 Average team (m) 3.9 Source: www.nba.com www.instagram.com

Page 28 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

Appendix 6 – List of Australian Universities in order of size We show below a list of the 43 Universities in Australia. In addition, there are 59 TAFE organisations in operation.

List of Australian Universities by size (student numbers) University Students International Total (updated 26/1/17) ('000) ('000) ('000) 1 Monash University 69.4 25.7 95.1 2 RMIT 59.4 26.3 85.7 3 University of Melbourne 57.8 17.8 75.6 4 University of Sydney 57.6 15.3 72.9 5 University of New South Wales 52.3 13.2 65.5 6 Deakin University 51.3 8.3 59.6 7 University of Queensland 49.5 11.8 61.3 8 Curtin University 48.4 15.2 63.6 9 Queensland University of Technology 47.3 7.6 54.9 10 Griffith University 44.2 8.1 52.3 11 Western Sydney University 43.8 4.5 48.3 12 Macquarie University 39.4 8.2 47.6 13 University of Technology Sydney 39.4 10.2 49.6 14 Charles Sturt University 38.7 7.5 46.2 15 Swinburne University of Technology 36.8 8.5 45.3 16 La Trobe University 35.4 7.9 43.3 17 University of Newcastle 32.1 4.9 37.0 18 University of Tasmania 31.5 5.3 36.8 19 Australian Catholic University 30.8 2.8 33.6 20 University of South Australia 30.4 5.6 36.0 21 University of Wollongong 30.3 12.4 42.7 22 University of Adelaide 26.4 6.8 33.2 23 Victoria University 26.4 9.2 35.6 24 Edith Cowan University 25.1 4.3 29.4 25 University of Western Australia 25.1 4.8 29.9 26 University of Southern Queensland 24.9 4.2 29.1 27 Flinders University 23.6 4.4 28.0 28 Murdoch University 22.6 9.7 32.3 29 Australian National University 22.3 6.2 28.5 30 University of New England 20.9 0.9 21.8 31 James Cook University 20.8 5.7 26.5 32 CQ University 18.2 4.7 22.9 33 University of Canberra 16.4 3.9 20.3 34 Federation University 14.8 7.1 21.9 35 Southern Cross University 13.4 2.2 15.6 36 University of the Sunshine Coast 11.2 1.2 12.4 37 University of Notre Dame Australia 10.9 0.1 11.0 38 Charles Darwin University 10.5 2.4 12.9 39 Bond University 5.0 1.8 6.8 40 University of Divinity 1.6 0.1 1.7 41 Avondale College of Higher Education n/a n/a n/a 42 Torrens University Australia n/a n/a n/a 43 Batchelor Institute of Indigenous Tertiary Education n/a n/a n/a Total 1,265.9 306.8 1,572.7 Average 31.6 7.7 39.3

Source: https://australianuniversities.click/list/by-size-student-numbers/

Page 29 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) Appendix 7 - List of largest US universities by size (enrolments)

List of US Universities by size (total enrollments - undergraduate + graduate) University State Students (2017/18 year) ('000) 1 Liberty University VA 79.2 2 University of Central Florida FL 68.6 3 Texas A&M University TX 68.4 4 The Ohio State University OH 61.2 5 University of Maryland MD 60.6 6 Florida International FL 58.1 7 University of Florida FL 52.2 8 New York University NY 51.8 9 University of Texas at Austin TX 51.8 10 Arizona State University AZ 51.6 11 University of Minnesota - Twin Cities MN 50.9 12 Michigan State University MI 50.4 13 Rutgers, the State University of New Jersey NJ 50.3 14 University of Illinois at Urbana IL 49.7 15 University of Washington WA 47.4 16 University of Southern California CA 47.3 17 Pennsylvannia State University PA 46.8 18 University of Michigan MI 46.7 19 University of Houston TX 46.3 20 American Public University System W V 46.1 21 University of California CA 45.9 22 University of Arizona AZ 44.8 23 University of Wisconsin WI 44.4 24 University of South Florida FL 43.8 25 Indiana University Bloomington IN 43.5 26 Purdue University IN 43.4 27 University of California, Berkeley CA 42.2 28 University of Maryland MD 41.2 29 Florida State University FL 41.0 30 California State University, Fullerton CA 40.3 31 Utah Valley University UT 39.9 32 Temple University PA 39.8 33 California State University, Northridge CA 38.7 34 University of Georgia GA 38.7 35 Texas State University TX 38.6 36 The University of Alabama AL 38.4 37 Texas Tech University TX 38.2 38 University of North Texas TX 38.1 39 University of Cincinnati OH 38.1 40 University of California, Davis CA 38.0 41 George Mason University VA 37.3 42 California State University, Long Beach CA 36.8 43 University of Colorado, Boulder CO 36.5 44 University of California, Irvine CA 36.0 45 University of California, San Diego CA 35.8 46 North Carolina State University NC 35.5 47 Kennesaw State University GA 35.4 48 Iowa State University IA 35.0 49 San Diego State University CA 34.9 50 Virginia Polytechnic Institute and State University VA 34.9 Total - 2,261 Average 45.2

Source: https://www.collegexpress.com/lists/list/the-50-largest-us-colleges-and-universities/361/

Page 30 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU) Appendix 8 – List of largest UK universities by size (enrolments)

List of UK universities by size (total enrollments) University Students Distance ('000) Learning 1 University of London 161.3 50.0 2 Open University, Wales 126.2 3 Open University in England 101.5 4 University of Manchester 39.7 5 University College London 37.1 6 University of Birmingham 33.8 7 Manchester Metropolitan University 32.5 8 University of Nottingham 32.1 9 University of Leeds 31.8 10 Sheffield Hallan University 31.5 11 Cardiff University 30.7 12 University of Edinburgh 30.4 13 Coventry University 29.4 14 Kings College London 28.9 15 University of Sheffield 27.9 Total 774.8 Average 51.7

Source: The Largest Universities in the United Kingdom by Enrolment - WorldAtlas

Not shown: Oxford University (24,000 students in 2017), Cambridge University (22,000 in 2016) and Durham (20,000 in 2021) per Wikipedia.

Page 31 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

Linius Technologies Limited (LNU) $ 0.022 Profit & Loss Per share & Ratio data Year end June ($m) FY19 FY20 FY21e FY22e FY23e Year end June FY19 FY20 FY21e FY22e FY23e SaaS fees (recurring) 0.015 0.060 0.123 8.0 26.0 Reported EPS (cents) (1.2) (0.7) (0.4) 0.1 1.2 Implementation & other fees (0.0) 0.0 0.0 0.0 0.0 Growth n/a -44.4% -37.3% -112.6% 2071.7% Operating Revenue 0.0 0.1 0.1 8.0 26.0 P/E ratio (x) -1.8x -3.3x -5.2x 41.2x 1.9x Revenue growth n/a 312.8% 104.3% 6390.6% 226.9% Cost of Goods Sold 0.0 0.0 0.0 0.0 0.0 EPS (normalised)(cents) (1.2) (0.7) (0.4) 0.1 1.2 Gross Profit 0.0 0.1 0.1 8.0 26.0 Growth n/a -44.4% -37.3% -112.6% 2071.7% Gross Profit Margin 100.0% 100.0% 100.0% 100.0% 100.0% P/E ratio (x) -1.8x -3.3x -5.2x 41.2x 1.9x DPS (cents) 0.0 0.0 0.0 0.0 0.0 Other Income 0.1 0.0 0.0 0.0 0.0 Franking 0% 0% 0% 0% 0% Cash Operating Expenses (10.6) (7.2) (5.7) (6.2) (6.7) Yield 0.0% 0.0% 0.0% 0.0% 0.0% Share based payments (non cash) (0.6) (0.1) (0.3) (0.3) (0.3) OCF per share (cents) (1.1) (0.6) (0.4) 0.1 1.2 EBITDA (11.0) (7.3) (5.9) 1.5 19.0 Price/OCF (x) -1.9x -3.5x -5.9x 25.4x 1.8x Ebitda Margin nm nm -4814.0% 18.2% 73.0% Shares on Issue - Wavge (f/d)953.5 1161.3 1537.0 1562.3 1582.9 Shares on Issue - at year-end1013.0 1310.3 1537.0 1562.3 1582.9 Depreciation & Amort (0.5) (0.6) (0.6) (0.6) (0.6) EBIT (11.6) (7.8) (6.5) 0.8 18.3 Enterprise Value $m 20.0 31.5 32.7 31.4 11.8 EV/ Sales 1375.3x 524.9x 266.4x 3.9x 0.5x Ebit Margin nm nm -5293.8% 10.5% 70.5% EV/EBITDA -1.8x -4.3x -5.5x 21.6x 0.6x Net Interest Income (Expense) 0.0 0.0 0.0 0.0 0.0 EV/EBIT -1.7x -4.0x -5.0x 37.7x 0.6x Share of Assoc NPAT 0.0 0.0 0.0 0.0 0.0 Pre-tax profit (11.6) (7.8) (6.5) 0.8 18.3 Liquidity & Leverage Income Tax Credit (Expense) 0.0 0.0 0.0 0.0 0.0 Net Cash (Debt) $m 2.3 1.6 0.4 1.7 21.3 Tax Rate 0.0% 0.0% 0.0% 0.0% 0.0% Net Debt / Equity % -42% -36% -15% -42% -94% Minorities (share of loss) 0.0 0.0 0.0 0.0 0.0 Net Debt / EBITDA 0.2x 0.2x 0.1x n/a n/a Abnormals 0.0 0.0 0.0 0.0 0.0 ROA (EBIT / T.Assets) % -190.0% -166.6% -195.2% 20.2% 74.6% NPAT (reported) (11.6) (7.8) (6.5) 0.8 18.3 ROE (NPAT / T.Equity) % -210.1% -178.4% -224.2% 20.6% 80.6% Adjustments (Abnormals) 0.0 0.0 0.0 0.0 0.0 Interest Cover (EBIT) n/a n/a n/a n/a n/a NPAT (normalised) (11.6) (7.8) (6.5) 0.8 18.3 Dividend Payout % (of adj EPS)n/a n/a n/a n/a n/a

Balance Sheet Cash Flow Cash 2.3 1.6 0.4 1.7 21.3 EBITDA (11.0) (7.3) (5.9) 1.5 19.0 Receivables 0.3 0.1 0.5 0.7 2.2 Chge in Working Capital 0.0 (0.1) (0.2) (0.4) 0.4 Inventories 0.0 0.0 0.0 0.0 0.0 Interest Received (Paid) 0.1 0.0 0.0 0.0 0.0 Other 0.0 0.0 0.0 0.0 0.0 Income taxes paid 0.0 0.0 0.0 0.0 0.0 Total current assets 2.6 1.7 0.9 2.4 23.5 Other (add: share based paymts)0.0 0.1 0.3 0.3 0.3 Property, plant & equipment 0.0 0.0 0.0 0.0 0.0 Operating Cash Flow (10.8) (7.2) (5.8) 1.4 19.7 Investments 0.0 0.0 0.0 0.0 0.0 Intangibles 3.5 2.9 2.3 1.7 1.1 MCapex + Capitalised R&D (0.0) (0.0) (0.1) (0.1) (0.1) Deferred tax assets 0.0 0.0 0.0 0.0 0.0 Government grants recd 0.0 0.0 0.0 0.0 0.0 Other 0.0 0.0 0.0 0.0 0.0 Free Cash Flow (10.8) (7.2) (5.9) 1.3 19.6 Total non-current assets 3.5 3.0 2.4 1.8 1.1 Acqns & Investments 0.0 0.0 0.0 0.0 0.0 Total Assets 6.1 4.7 3.3 4.1 24.6 Disposals & Other 0.0 0.0 0.0 0.0 0.0 Net investing cash flows (0.0) (0.0) (0.1) (0.1) (0.1) Payables (0.5) (0.3) (0.5) (0.5) (0.6) Equity raised (bought back) 2.4 6.6 4.7 0.0 0.0 Interest bearing liabilities - Current 0.0 0.0 0.0 0.0 0.0 Dividends paid 0.0 0.0 0.0 0.0 0.0 Provisions (0.1) (0.1) (0.1) (0.1) (0.1) Change in Debt 0.0 (0.0) 0.0 0.0 0.0 Deferred Revenue 0.0 0.0 0.0 0.1 0.1 Other 0.0 0.0 0.0 0.0 0.0 Total Current Liabilities (0.6) (0.3) (0.5) (0.5) (0.6) Financing cash flow 2.4 6.5 4.7 0.0 0.0 Interest-bearing liabilities - Non-curr 0.0 0.0 0.0 0.0 0.0 Change in Cash (8.5) (0.7) (1.2) 1.3 19.6 Provisions 0.0 0.0 0.0 0.0 0.0 Other 0.0 0.0 0.1 0.5 (1.3) Geographical Revenue Total Non-current Liabilities 0.0 0.0 0.1 0.5 (1.3) Australia/ NZ 0.015 0.060 0.113 4.3 8.5 Total Liabilities (0.6) (0.3) (0.4) (0.1) (1.9) Asia 0.000 0.000 0.000 0.5 1.3 UK / Europe 0.000 0.000 0.010 1.3 6.7 Total Shareholders' Equity 5.5 4.4 2.9 4.1 22.7 USA / ROW 0.000 0.000 0.000 1.9 9.4 Worldwide 0.015 0.060 0.123 8.0 26.0 Interims Year end June 1H20A 2H20A 1H21 2H20e FY21e Directors Shareholdings Shares (m) % of coy Opts (m) Sales 0.024 0.036 0.057 0.066 0.123 Gerard Bongiorno (Exec. Chairman) 76.0 5.1% 0.000 Sales Growth (g) n/a 147.7% 135.7% 83.4% 104.3% Chris Richardson (CEO)(Europe-based) 0.0 0.0% 0.000 EBITDA (4.5) (2.8) (2.4) (3.5) (5.9) Steve McGovern (NED) 45.7 3.0% 0.000 EBITDA Margin nm -7781.5% -4232.8% -5311.9% -4814.0% John Wallace (NED)(US-based) 2.0 0.1% 0.000 EBIT (4.7) (3.1) (2.7) (3.8) (6.5) Total 121.7 8.1% 0.000 Equity Share of Assocs NPAT 0.0 0.0 0.0 0.0 0.0 Major Shareholders Shares (m) % of coy NPAT (Reported) (4.7) (3.1) (2.7) (3.8) (6.5) Earthrise Holdings Pty Ltd 110.8 7.4% NPAT (Adjusted) (4.7) (3.1) (2.7) (3.8) (6.5) Gerard Bongiorno (Chairman) 76.0 5.1% EPS (adjusted)(cents) (0.4) (0.2) (0.2) (0.2) (0.4) Technical Investing Pty Ltd 74.7 5.0% EPS Growth -37.3% -53.7% -55.8% -4.8% -37.3% Anbaume Pty Ltd 67.5 4.5% DPS (cents) 0.0 0.0 0.0 0.0 0.0 Stephen McGovern (NED) 45.7 3.0% Source: Sequoia estimates Source: Refinitiv, Annual report

Page 32 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

SEQUOIA FINANCIAL GROUP (ASX: SEQ) - About Us

Sequoia Financial Group is a boutique investment house known for the quality of its advice, the strength of its relationships and depth of expertise across financial markets. The Group has also expanded into corporate advisory, equity capital markets, institutional dealing and financial planning. Sequoia Financial Group is listed on the Australian Securities Exchange and trades under the stock code SEQ. We provide: • Investment and superannuation products • Wealth management and advisory services • Corporate advisory and capital markets expertise • Retail, wholesale and institutional trading platforms • Market data and financial news services. With offices in Melbourne, Sydney and Gold Coast, Sequoia Financial Group provides products and services to self-directed retail and wholesale clients and those of third-party professional service firms. Our group includes: • Sequoia Wealth Management - is a holder of an Australian Financial Services License (AFSL). Our aim is to prove exceptional unbiased advice to high net wealth individuals, families and institutional investors. Our team of diverse experts provide provides strategic and tailored investment advice to our clients. We specialise in advising our clients on portfolio management, SMSFs, direct shares, superannuation, structured products, option trading, personal insurance, margin lending, cash solutions and much more. Our services are designed for individuals and family offices all seeking unbiased financial and strategic structuring advice. • Sequoia Direct - offers self-directed investors a variety of investment opportunities. Most of our clients sign up to our award winning online ASX share and option trading service, where others, use our service to gain access to various investment opportunities such as IPOs & capital raising opportunities. • Sequoia Corporate Finance - is a leading Australian small and mid-market corporate adviser. We apply our knowledge, extensive contacts, expertise and professionalism to deliver best-practice, objective advice in the following disciplines: Public market M&A; Private treaty M&A; Equity capital markets; Capital management and restructuring; Corporate and strategic advice. • InterPrac Financial Planning - The easy choice for client-focussed and accountant-aligned financial planners to deliver superior integrated and practical solutions. • Sequoia Asset Management Pty Ltd - is an investment services firm and holder of an Australian Financial Services License. Our team of experts provide general advice on portfolio management, SMSFs, direct shares, superannuation, structured products, option trading, personal insurance, margin lending and cash solutions. • Sequoia Superannuation Pty Ltd (SS) - provides a complete solution to the SMSF market, designed specifically for anyone that has or wants a SMSF. SS also provides SMSF solutions to financial planners, stock brokers, mortgage brokers and accountants Australia wide. • Sequoia Specialist Investments Pty Ltd (SSI) - Since 2010 SSI has been building innovative investment solutions for Australian investors. SSI works with investors, financial advisers and stockbrokers to develop and deliver investment solutions that meet the needs and objectives of their clients. Over the years we have developed numerous investments opportunities that give investors access to both local and foreign shares and indices that offer income and capital growth potential. SSI can also offer a variety of solutions for professional advisers where we can provide white-label solutions for groups that want to retain their own branding. • Bourse Data – is one of Australia’s most trusted and leading suppliers of stock market analysis software and financial market data for private and professional investors and traders. • Finance News Network (FNN) is an independent news organisation, specialising in the production and distribution of online finance news, digital communications and productions services for ASX-listed companies and managed funds. Annually FNN produces over 3,000 video news items and it’s one of the largest suppliers of wholesale online finance video in Australia. • Morrison Securities - provides seamless and cost effective third party stock broking execution solutions to AFSL holders such as financial planners, financial advisors, banks, building societies and trading educators. Morrison Securities has been providing white labelled trading solutions to Broker Dealers (Shadow Broker) since 2007. We assist broker dealer groups in providing a superior product to their clients by offering a wholesale broking solution and a comprehensive range of white-label products.

Page 33 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

CONTACT INFORMATION

CEO Garry Crole +61 3 9209 9777 [email protected] Compliance & Risk Michael Butler +61 3 9209 9782 [email protected] Te Okeroa +61 2 8114 2297 [email protected] Shane Miller +61 3 9209 9783 [email protected] Rebecca McPherson +61 3 9209 9743 [email protected] Peter Ho +61 2 8114 2204 [email protected] Steve Kallona +61 3 9209 9790 [email protected] Research Wayne Sanderson +61 3 8548 0214 [email protected] Corporate Finance Alex Fabbri +61 3 8548 3320 [email protected] Richard Rouse +61 417-485-663 [email protected] Chris Eldridge +61 3 8548 3321 [email protected]

Institutional Sales Enzo Salvatore +61 3 8548 3376 [email protected] Chris Walker +61 3 8548 3373 [email protected] Wealth Management Hamish McCathie +61 2 8114 2291 [email protected] Kate Hanrahan +61 3 8548 3378 [email protected] Alan Crute +61 3 8548 3309 [email protected] Mark Wiseman +61 3 8548 3379 [email protected] Chris Walker +61 3 8548 3373 [email protected] Nick Katiforis +61 3 8548 3380 [email protected] Chris Forte +61 3 8548 3371 [email protected] Patricia Harrison +61 2 8114 2263 [email protected] Daniel McFarlane +61 3 8548 3374 [email protected] Patrick Trindade +61 3 8548 3381 [email protected] David Dwyer +61 2 8114 2261 [email protected] Peter Day +61 3 8548 3312 [email protected] David Thang +61 3 8548 3375 [email protected] Prasanna Wickramatunge +61 3 8548 3382 [email protected] Dinesh Magesan +61 7 3517 0841 [email protected] Rob Hughes +61 3 8548 3383 [email protected] Eason Tan +61 3 8543 3313 [email protected] Rowland Jiang +61 2 8114 2264 [email protected]

Enzo Salvatore +61 3 8548 3376 [email protected] Shane Langham +61 7 3517 0842 [email protected] Howard Elton +61 3 8548 3377 [email protected] Sue McDonald +61 3 8548 3384 [email protected] Jim Yong +61 7 3517 0843 [email protected] Xiaoming Huang +61 3 8548 3385 [email protected]

InterPrac Financial Planning Garry Crole +61 3 9209 9777 [email protected] Mark Ryan +61 3 9209 9763 [email protected] Jason Hayes +61 422 465 110 [email protected] Samantha Amos +61 3 9209 9684 [email protected]

Glenn Loadsman +61 2 8114 2222 [email protected] Sharon Walker +61 421 214 299 [email protected] Insurance John Plim +61 1800 086 666 [email protected] Matthew Plim +61 1800 086 666 [email protected] Marissa Lemmings +61 1800 086 666 [email protected] Skye Hutchinson +61 1800 086 666 [email protected]

Self-Managed Superannuation

Administration Mark Phillips +61 3 9209 9777 [email protected] Linda Phillips +61 3 9209 9777 [email protected] Morrison Securities William Slack +61 2 8114 2299 [email protected] Jodie Nair +61 2 8114 2218 [email protected] Alex Szabo +61 2 8114 2253 [email protected] Legal Documents Haley Craig +61 3 9202 9744 [email protected] Shahina Dangol +61 3 9209 9775 [email protected] Runy Devine +61 3 9209 9729 [email protected] Eimear Hester +61 3 9209 9727 [email protected] Financial News Network (FNN) Clive Tomkins +61 2 8294 4302 [email protected] Matt Wilson +61 3 9209 9775 [email protected]

Page 34 Sequoia Financial Group | Equity Research Linius Technologies Limited (LNU)

Recommendation Criteria

Investment View The Sequoia Wealth Management (SWM) Investment View is based on an absolute 1-year total return equal to capital appreciation plus yield.

Buy Accumulate Hold Reduce Sell >20% 10% – 20% 0% – 10% 0% to -10% >-10% A Speculative recommendation is when a company has limited experience from which to derive a fundamental investment view.

Risk Rating SWM has a four tier Risk Rating System consisting of: Very High, High, Medium and Low. The Risk Rating is a subjective rating based on: Management Track Record, Forecasting Risk, Industry Risk and Financial Risk including cash flow analysis. ANALYST DISCLOSURE AND CERTIFICATION Analyst remuneration is not linked to the research or rating outcome. Where financial products are mentioned, the Analyst(s) may hold the financial product(s) referred to in this document, but SWM considers such holdings not to be sufficiently material to compromise the recommendation or advice. Analyst holdings may change during the life of this document. The Analyst(s) certify that the views expressed in this document accurately reflect their personal, professional opinion about the matters and financial product(s) to which this document refers. GENERAL ADVICE WARNING, DISCLAIMER AND DISCLOSURE IMPORTANT INFORMATION: This document has been prepared and published by Sequoia Wealth Management (ACN 002 314 310, AFSL No 472387) (SWM). SWM is part of the Sequoia Financial group Ltd (SFG) (ACN 091 744 884) an ASX Market Participant (SEQ). Other members of SFG include Morrison Securities Ltd, Sequoia Asset Management, InterPrac Financial planning and Sequoia Super. Copyright 2020. The Contents contained in this report are owned by SWM and are protected by the Copyright Act 1968 and the copyright laws of other countries. The material contained in this report may not be copied, reproduced, republished, posted, transmitted or distributed in any way without prior written permission from SWM. Modification of the materials for any other purpose is a violation of the copyrights and other proprietary rights of SWM. Please read the following before making any investment decision about any financial product mentioned in this document. GENERAL ADVICE WARNING: Past Performance is not a reliable indicator of future performance. Any express or implied rating or advice presented in this document is limited to “General Advice” (as defined in the Corporations Act 2001(Cth)) and based solely on consideration of the investment merits of the financial product(s) alone, without taking into account the investment objectives, financial situation and particular needs (‘financial circumstances’) of any particular person. It does not constitute a recommendation to purchase, redeem or sell the relevant financial product(s). Before making an investment decision based on the recommendation(s) or advice, the reader must consider whether it is personally appropriate in light of his or her financial circumstances, or should seek financial advice on its appropriateness. If our advice relates to the acquisition or possible acquisition of particular financial product(s), the reader should obtain and consider the Product Disclosure Statement for each financial product before making any decision about whether to acquire a financial product. SWM’s Research policy is to update research reports as and when the Research Analyst and Research Management deem appropriate, based on developments with the issuer, the sector, or the market that may have a material impact on the research views or opinions stated therein. The information contained in this report is drawn from sources believed to be reliable, but the accuracy and completeness of the information is not guaranteed, nor in providing it does Sequoia Financial Group Ltd or its member companies assume any liability. This information is given as of the date appearing on the report and SWM assumes no obligation to update the information or advise on further developments relating to these securities. This publication must not be distributed to retail investors outside of Australia. DISCLOSURE AT THE DATE OF PUBLICATION: SWM does not hold the financial product(s) referred to in this document. SFG’s representatives and/or their associates may hold the financial product(s) referred to in this document but details of those holdings are not known to the analyst. From time to time SFG’s representatives and/or their associates may trade those financial product(s) in a manner which is contrary to the recommendations mentioned in this document. SWM has not in the previous 24 months been involved in a publicly-announced transaction involving the payment of a fee to SWM by the company described in this report. SWM may and may seek to do business with companies covered in its research. DISCLAIMERS: This document is for the exclusive use of the person to whom it is provided by SWM and must not be used or relied upon by any other person. No representation, warranty or undertaking is given or made in relation to the accuracy of information contained in this document. SWM assumes no obligation to update this document or correct any inaccuracy which may become apparent after it is given. If any advice in this document relates to the acquisition or possible acquisition of a particular financial product, you should obtain a copy of and consider the product disclosure statement, prospectus or other document for that financial product before making any decision. Save for any statutory liability that cannot be excluded, the SWM or its related entities accept no liability whatsoever for any loss or damage of any kind caused by any error in, inaccuracy, or omission from, this document or arising out of the use of all or part of these materials. This document is published for information purposes and is not to be construed as a solicitation or an offer to buy or sell securities or related financial products.

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