Beonic Ltd

for our FY26 results presentation and FY27 preview. Joining me on the call representing Bionic is we have our chairman Mike McConnell. Mike is joining us from California. As you can see in Mike's bio, he's a very experienced chairperson and director. We also have Mark Thompson. Mark Thompson is currently joining us from Tokyo. He is in Tokyo right now presenting to one of our very large airport customers, Narita Airport. Narita Airport is a long-standing Bionic customer. They happen to be a top five airport globally for service quality, and therefore I think it makes perfect sense that they are one of our customers. And Mark is over there presenting our new Vision product. I'm just going to hand over to Mike, who wants to provide some opening remarks.

Thanks, Billy. Welcome, everyone, and thank you for joining us today. I'll open with a couple comments to talk about what has roughly been a three-year transformation at Bionic. Transformations are difficult, especially when facing both capital and operating scale limitations. The four key elements of our specific transformation have been leadership, strategy, cost structure, and our balance sheet. Let me comment briefly on each of these. Leadership. Billy was hired a little under three years ago, and since then, Approximately 50% of the employer employee group is new and importantly nearly every c-suite position including Mark Thompson who's with us today This represents enormous change in a very short period of time for any business One indicator that this has gone well is our internal net promoter score over this time period has risen from negative 7 to 52 next strategy Focus is a force multiplier. We've oriented to airport and retail and re-architected the tech stack, eliminating a lot of tech debt and harmonizing on one scalable platform. Additionally, Bionic Vision represents a significant strategic product response in our market to seamlessly deliver incremental value to our customers. Importantly, this product and approach gives us the right to win in a very, very large global market. 3. We have to right-size the cost structure and embed, through the use of metrics and data, a cost discipline in all that we do. Because of our scale, this was and is a foundational and necessary reset. We will continue to instrument the business to be operating cash flow break-even or better by being focused, smarter, and efficient. 4. And finally, as most of you know, our balance sheet and capitalization was thin, to say the least. Fixing this naturally occurred in phases. The historical debt obligations were strangling the company and unsustainable. Transformations cost money, particularly those with long-serving employees. Tech debt doesn't disappear on its own. I would like to thank our shareholders, old and new, and in particular our major shareholder, Thorny, for their support over the last 18 months. Taken together and based on my experiences, this team has done a remarkable job navigating all of which I just mentioned, while at the same time assessing and upgrading the employee set, setting a go-forward tone and culture, assessing and re-architecting the tech stack to a modern, scalable platform, and notably securing and implementing the biggest contract in the company's history. Further, I'd be remiss if I did not thank my board colleagues, Bob Alexander and Kirstie Rankin. Thank you for your wisdom and support to all of us throughout this process. In a moment, Billy will speak to our go-forward focus on sales acceleration. The building blocks are in place and as evidenced by our FY25 guidance, which you will see today, we forecast double-digit growth in ARR this coming fiscal year. Again, thank you for your time. And with that, I'll turn it over back to Billy.

Thank you, Mike. No question that Bionic was not in great shape in FY23. There have been too many historical acquisitions that had not been fully integrated, causing an enormous amount of technical debt and also cultural debt and process debt. and financial debt. There was insufficient operating leverage to fully enjoy SaaS margins as you would expect of a business of this type. And in spite of having an installed base that's quite impressive, over 10,000 venues at that time, it still wasn't able to reach any sort of operating leverage. So the first critical data point that I want to draw attention to as was announced in today's results is an $8.9 million EBITDA swing from FY24 to FY26. to a $4 million EBITDA result in FY26. It's a data point that I'm very proud of and I think it is by far the clearest signal of the work that's been done right across the business. We've enjoyed a 17.2% EBITDA margin and 78.4% gross margins across the company. We're also operating cash flow positive. We're expecting further improvement in margins in FY27 and those are from ongoing improvements in our operating leverage. The secured facility of 4.3 million AUD was retired on time in January 2026. Since FY23 there's been a clear trajectory in the numbers and the results that we're seeing today. In spite of having pretty flat revenues and if anything gone backwards slightly since 23, resulting from the churn of unprofitable or low margin revenues, including some acquisitions that were previously made with Cosley and Blix, both of which were executed in FY24. We're projecting top line growth in FY27 of around 9% year on year and margin improvement to just shy of 80% gross margin. Also producing $20 million of ARR by the end of FY27. It's worth noting that Bionic's gross margin is already within the top tier of SaaS businesses with a 75% to 80% range, where Salesforce is currently at 77%. So we feel, again, very proud of that. It's an incredible achievement. I want to spend a little bit of time just talking about the Bionic business and the addressable market. In the opening slide, I referred to Bionic's target customer as the retail venue, store, mall, or airport. And in many ways we see those values as being actually quite similar. It is a huge fragmented and compounding base of customers at 18.9% a year. That's retail broadly. There is no scaled incumbent and our rivals serve one sensor or one type of venue only. Fragmentation is an opportunity for a business like ours. We are 80 people, very agile and quick to move. So let me just talk a little bit about how the IONIQ platform actually works. We collect data from sensors, and I'm going to hand over to Mark who can go into a little bit more detail. We collect data from sensors such as people counting sensors, which are quite ubiquitous in retail store environments, LIDARs, fast spinning laser devices that create a three dimensional view of the physical space, Wi-Fi and more recently CCTV. We unify all of that sensor data along with third party data and our own AI and we add that to the operator's parameters, their roles, their thresholds, their service levels. And we present that data back to the customer in a way that I'm going to show you at the very end of the presentation, along with a series of instructions to them regarding things like staffing, specific performance thresholds, breaches of those thresholds, both historical, real-time and projected. I want to bring some life to that in a couple of ways. So, for instance, in a very large retail chain that we support, we provide store-by-store performance benchmarks that they can then use to give feedback to the store management of any particular high-performing or low-performing store. We normalize their performance data, including till receipts, for things like footfall and other factors. In airports, we balance staffing against certain targets, such as queue times, to avoid over-servicing queues. In an airport, a 12 to 15 minute queue is a very bad thing for the passenger. But a one minute queue or less is a terrible thing for the airport because the cost to serve goes through the roof and we want to help them avoid that. They want to meet their service level ambitions and we help them balance those conditions. That's particularly the case for instance in our US airport customers where they have to pay the TSA 190 US dollars an hour for the time they spend supporting that airport and we can allow them to send direct messages to the TSA to flex that staffing level up and down based on known conditions provided by Bionic. In a mall environment we provide evidence to help rent adjustments for tenants. So we provide supporting information and we also provide predictions and we measure the throughput of places like bathrooms and almost any public space that allow our customers to set cleaning schedules to actual traffic conditions as well as closed loop NPS. Again, that avoids expensive over servicing of those facilities. All up, when dwell time is up in a retail context and the cost to serve the passenger, shopper, visitor is down, those venues make more money. And that's what they come to Bionic for. Let me just hand over to Mark, who's going to provide a bit more context.