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SaaS Cloud Based Solution HR | Payroll | Time & attendance Results 1H19 (ASX:ELO) 26 March 2019 Morgan Stanley Micro-Cap Conference

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Page 1: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

SaaS Cloud Based Solution

HR | Payroll | Time & attendance

Results 1H19 (ASX:ELO)26 March 2019

Morgan Stanley Micro-Cap Conference

Page 2: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Agenda

Results 1H19 (ASX:ELO)

Company overview and business highlights

1H19 financials

Strategy and outlook

Q & A

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au 01

Page 3: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Company overview A leading provider of cloud HR, payroll, rostering / time & attendance software in Australia & New Zealand (ANZ)

ELMO is one of Australia and New Zealand’s leading providers of integrated cloud human

resources “HR”, payroll and rostering / time & attendance software solutions

ONE vendor ONE dashboard ONE user-experience Regional focus = ANZ

Number of employees = 221

Snapshot1

Customer base of 1,129 organisations

Number of offices = 6

Scalable SaaS, cloud-based platform

Market opportunity $1.7bn (ANZ)2

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au 02

1. As at 31 December 20182. Frost & Sullivan independent market report

Page 4: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Products Leading integrated cloud HR, payroll, rostering / time & attendance solution

DevelopRetainHireEngagePay

Payroll

Self-Service

Core HR Recruitment PerformanceManagement

Rewards &Recognition

Remuneration

SuccessionManagement

LearningManagement

Course Builder

Course Library

OnboardingSurvey

Rostering /Time & Attendance

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au 03

Page 5: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Large and growing addressable market

1. Frost & Sullivan independent market report

The market for ELMO’s solutions across ANZ continues to grow with a target market size of over 12,000 organisations and a $1.7 billion revenue opportunity

ANZ target market size of ~12,029 organisations1

ELMO currently has ~9.4% market share in ANZ

ANZ market potential~12,029 organisations

penetration~9%

Total addressable market (TAM)for solutions in ANZ

~$1.7b1

Payroll~A$657m

ASX:ELO

HR Admin~A$480m

Talent management ~A$562m

ELMO Software [email protected] | elmosoftware.com.au

2015 2016 2017 2018 2019F 2020F

ANZ HR & Payroll TAM ($m)1

1,318 1,4521,576

1,699 1,8171,927

HR Administration Talent Management Payroll

04

Page 6: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Financial and operational highlights 1H19 Strong growth in SaaS revenue

Building the foundations for long term sustainable growth

$18.1 million1H19 pro forma total revenue1

62.9% growth in pro forma total revenue on 1H181p

$17.4 million1H19 pro forma SaaS revenue1

Up 65.4% on 1H18 SaaS revenue Contributes 96.2% of total revenue

$36.4 millionAnnualised recurring revenue2

Reflecting 96.3% of pro forma FY19 SaaS revenue guidance

1,129Customer base3

Up 31.4% since 31 December 2017

$470 millionLifetime value of customer base LTM 31 December 20185

Up $40m from LTM 30 June 2018

ASX:ELO

1. Excludes HROnboard and BoxSuite2. December 2018 SaaS revenue annualised3. As at 31 December 2018, excludes HROnboard and BoxSuite4. Customer retention is calculated by dividing the number of customers in the reference period who were customers at the end of the prior period by the number of customers at the end of the prior period5. LTV is calculated by multiplying the average revenue per customer over the past 12 months by gross profit margin (%) divided by revenue churn

ELMO Software [email protected] | elmosoftware.com.au

121.4%Customer revenue retention1

93.6% Customer retention rate4

05

p p

p pp

Page 7: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Key achievements Delivering on accelerated growth strategies: expanding the integrated product set and creating larger growth opportunities

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au

Rostering /Time & Attendance

(T&A)

94 product enhancements2

HROnboardBoxSuite

Deloitte Tech Fast 50 Aus Smart50 - Top Innovator

Stevie - Computer software company of the year

New product offerings1

Technology enhancements Awards 1H19Acquisitions1

Ensuring long term sustainable growth with new product offerings and wider market focus

221 employees2

Workforce

1. Up to 31 January 2019 2. As at31 December 2018, excludes HROnboard and BoxSuite

06

Page 8: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Strong growth in customer base

ASX:ELO

Examples of recent customer wins ELMO’s customer base growth (including acquisitions)

1. Last twelve months to 31 December 20182. Includes FY18 acquisitions PeoplePulse, Sky Payroll and Pivot Software (excludes FY19 acquisitions HROnboard and BoxSuite)

130 new customers added during 1H19

Average annual revenueper customer of ~$30.0k1,2

Average modules per customer of 2.2 with an average modules per

new customer 1H19 of 3.72

Customer retention of 93.6%

Term Employee Count Modules Industry

3 years 200

10 modules Payroll, HR Core,

Recruitment, Onboarding,Learning, Course Library,

Performance, Succession, Survey,

Rewards & Recognition

Finance

3 years 200

11 modules Payroll, HR Core,

Recruitment, Onboarding,Learning, Course Library,

Performance, Succession, Survey,

Rewards & Recognition,Remuneration

Finance

3 years 250

8 modules HR Core, Recruitment,Onboarding, Learning,

Course Library, Performance,

Succession, Survey

NSW Government

ELMO Software [email protected] | elmosoftware.com.au

31 Dec 2015

300

31 Dec 2016

472

31 Dec 2017

859

31 Dec 2018

1,129

07

p

CAGR55.5%

Page 9: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Broad and diversified customer base Industry agnostic

ASX:ELO

Government

Education

Constructionand mining

Professional services

Healthcare and pharmaceuticals

Other1

1,129 organisations primarily across Australia and New Zealand1,2

Largest customer contributes<1.6% of 1H19 pro forma revenue3

Top 10 customers contribute <9.7% of 1H19 pro forma revenue3

1. Includes finance, IT, telecommunications and media, industrials, hospitality, property, retail, transport and not for profit industries2. As at 31 December 2018, excludes HROnboard and BoxSuite3. Excludes HROnboard and BoxSuite

ELMO Software [email protected] | elmosoftware.com.au 08

Page 10: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Recent acquisitions Broadening ELMO’s suite of modules and increasing market share

ASX:ELO

HROnboard is one of Australia’s leading specialist providers of cloud-based employee onboarding software. HROnboard has successfully built a high quality and loyal customer base of 131 organisations, which is also growing. HROnboard and ELMO’s customer base have minimal cross over and therefore provides an attractive cross-sell opportunity for ELMO’s extended product suite.

• Rapid growth of recurring SaaS revenue, averaging over 40% annually over the last three years• High quality revenue stream with SaaS revenues accounting for ~97% of total revenues• Strong and loyal customer base of 131 organisations operating across a wide range of industries, who have demonstrated retention rates of ~93%

BoxSuite is a SaaS, cloud-based specialist in workplace rostering and time & attendance (including award interpretation for calculation of pay rates) for casual and shift-based employees.

Large new market opportunity with over 5.92 million casual and shift-based employees across Australia and New Zealand, which represents a ~$426 million market. It is estimated that approximately 60% of the casual and shift-based employee market is managed through the use of manual based processes1.

BoxSuite brings cost advantages compared to organic in-house development, as well as earlier realisation of the commercial benefits that an enlarged product suite offers. BoxSuite’s modules are a natural adjacency to ELMO’s existing HR & Payroll platform and provides a suitable solution for the Company’s existing customers who employ casual and shift-based employees.

This uniquely positions ELMO as the only Australian company who can provide a one-stop-shop for cloud HR, payroll and rostering / time & attendance software solutions

1. Frost & Sullivan independent market report 2. Last 12 months to 31 Dec 2018

ELMO Software [email protected] | elmosoftware.com.au

Targeted acquisitions to supplement strong organic growth

Onboarding Rostering / Time & Attendance

09

Completed 31 January 2019 Completed 31 January 2019

Page 11: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Agenda

Results 1H19 (ASX:ELO)

Company overview and business highlights

1H19 financials

Strategy and outlook

Q & A

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au 10

Page 12: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Financial summary Strong growth in SaaS revenue and high revenue visibility

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au

• Strong revenue visibility with 96.2% recurring revenue1 and typical contract length of 3 years• Customers pay annual license fees in advance• Strong cash position of $39.0m at 31 December 2018 means ELMO is well capitalised to support growth strategy

Pro forma historical revenue ($m)

1H191,21H181H171H16

SaaS revenue

Other revenue

6.17.5

10.5

17.4

0.2

6.30.3

0.5

0.7

7.8

11.1

18.1

1. Excludes HROnboard and BoxSuite2. Includes PeoplePulse, LiveSalary, Sky Payroll and Pivot Software acquisitions

97.5% 96.4% 94.7% 96.2%

N/A 26.0% 35.9% 65.4%

Recurring revenue

SaaS revenue growth

11

Page 13: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Pro forma financial results 1H191

Income statement ($000s) Pro forma 1H192 Pro forma 1H18 Variance $ Variance

SaaS revenue 17,421 10,533 6,888 65.4%Other income 689 584 105 18.0%Total revenue 18,110 11,117 6,993 62.9%Gross profit 15,479 10,193 5,286 51.9%Sales and marketing expenses (7,974) (4,310) (3,664) 85.0%Research and development expenses (1,433) (250) (1,183) 473.2%General and administrative expenses (8,584) (4,175) (4,409) 105.6%Total operating expenses (17,991) (8,735) (9,256) 106.0%EBITDA (2,512) 1,458 (3,970) (272.3%)

Financial metrics Pro forma 1H192 Pro forma 1H18

Pro forma SaaS revenue growth 65.4% 35.9%Recurring revenue 96.2% 94.7%Pro forma gross margin 85.5% 91.7%R&D spend as a % of revenue3 27.2 % 16.1%

Operational metrics Pro forma 1H192 Pro forma 1H18

Number of customers 1,129 859Number of employees 221 130

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au

1. Pro forma financial information does not include any pre-acquisition revenues or expenses2. Includes PeoplePulse, LiveSalary, SkyPayroll and Pivot Software 3. R&D spend includes the income statement expense and capitalised costs in thereference period

• Pro forma SaaS revenue increased 65.4% pcp• Strong recurring revenue of 96.2%• Pro forma total revenue increased 62.9% pcp

• Customer revenue retention of 121.4%• Annualised recurring revenue (ARR) of $36.4m

12

Page 14: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au

• Underlying revenue growth of $2.9m (28%)• FY18 Acquisitions1,2 contributed incremental revenue of $4.1m through 1H19

13

1. Acquisitions exclude HROnboard and BoXSuite2. FY18 acquisitions includes PeoplePulse, Sky Payroll and Pivot Software

Pro forma revenue growth Underlying revenue growth of 28% from 1H18 to 1H19

14.0

16.0

18.0

20.0

12.0

10.0$m

8.0

6.0

4.0

2.0

-

1H18

11.1

2.9

4.1 18.1

ELMO FY18 acquisitions

Pro forma revenue bridge - 1H18 to 1H19

1H19

Page 15: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

High LTV ratio indicates strong payback on customer acquisition investment

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au 14

FY18 LTM December 2018

Average revenue per customer ($000s) 31.2 30.0Revenue churn % 6.9% 6.1%Gross profit margin % 91.5% 85.1%LTV per customer ($000s)2 417 416LTV for the customer cohort ($000s) 430,000 470,000

Total customer base CAC ($000s) 6,021 8,849Number of customers won4 144 214Average CAC ($000s)3 41.8 41.4

LTV / CAC Ratio 10.0 10.1

Lifetime Value (LTV)1 Total customer base lifetime value ($)

Customer acquisition cost (CAC)

FY18

430m

LTM Dec 18

470m

$40m added in 6 months

1. LTV is calculated by multiplying the average revenue per customer over the past 12 months by gross profit margin (%) divided by revenue churn 2. Calculations based on average customer numbers through the year3. Average CAC reflects total sales and marketing expenses associated with securing new customers divided by the total number of new customers added in the period4. Does not include any customer churn

Page 16: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au 15

Larger market opportunity

1. Access to a wider addressable market• Increased traction in the lower mid-market (<200 employees)

2. Broader platform offering • Increased new business sales by linking HR and newer modules which now includes payroll and rostering/time & attendance• More multi module new business sales achieved which include the newly acquired modules• Increased opportunity to cross-sell to existing customers

Investment areas

Research & Development• Increasing interoperability of modules within the suite and integration capability with 3rd party applications• Increasing functionality and usability of the platform• Optimising platform for lower mid-market customers

Sales & Marketing• Deployed a new sales team focusing on the lower mid-market• Expanding account management to unlock cross-sell opportunities across an enlarged customer base

Client services (cost of sales)• Proactively ramping implementation, training and support capacity to manage anticipated growth• Investing in new domain expertise (payroll and rostering / time & attendance)

General & Administration • Investing in finance, admin & HR to manage the requirements of a larger company and cater for future growth

70

80

60

50

40

30

20

10

0

31 December 2017

31 December 2018

Research & development

Sales & Marketing

Client services (COS)

G&A(other)

Headcount

Expense base drivers Accelerating investment to capitalise on a larger market opportunity

Page 17: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Pro forma cash flow Record cash receipts

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au

• Total cash receipts for the half year of $20.3 million • 86.9% increase in customer cash receipts over 1H18 • Year end bank balance of $39.0 million

Half year customer receipts ($m)

1H17 1H18 1H19

$8.1

$10.8

$20.3

16

p

CAGR 57.9%

Pro forma cash bridge 1H19 ($000s)

Statutory

Jun-18Rece

ipts

Operating paym

entsTangible &

intangible ass

ets

Lease

ince

ntive re

ceipts

Deferred co

nsideratio

n

Other

Statutory

Dec-18

Pre-acquisi

tion re

venue1

Transacti

on related co

sts

Lease

ince

ntive re

ceipts

Pro fo

rma D

ec-18

70,000

60,000

50,000

40,000

30,000

20,000

10,000

0

46.0

20.3

(22.0)(4.4) (2.5)

1.31.3

(1.3)0.2 0.438.9 39.3

1. Relates to deferred referred recgonised from the acquisitions completed in FY18

Page 18: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Agenda

Results 1H19 (ASX:ELO)

Company overview and business highlights

1H19 financials

Strategy and outlook

Q & A

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au 17

Page 19: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Strong organic growth strategy Accelerated with selective acquisitions for complementary technology and/or customer lists

ASX:ELO

1. Customer retention is calculated by dividing the number of customers in the reference period who were customers at the end of the prior period by the number of customers at the end of the prior period2. Includes both expensed and capitalised research and development costs3. Based on pro forma revenue

Consistently high customer retention, 93.6% in 1H191

Strong revenue retention of 121.4% indicating cross-sell of additional modules to existing customer base

130 new customers added during 1H19

Total customer base of 1,129 as of 31 December 2018

Increased multi-module new business sales, average modules per new customer of 3.7

Aim to further increase adoption in lower and upper mid-market

Significant opportunity to further penetrate existing markets

Investment in sales and marketing to drive new customer wins across ANZ

Acquired and integrated rostering /time & attendance modules

Spent 27.2% of 1H19 pro forma revenue on R&D2,3

Continuous development and deployment of new features on existing modules with 94 enhancements released during 1H19

New modules slated for release in the next 2-3 years

Acquisition of HROnboard and BoxSuite

Actively seeking complementary technology to augment ELMO’s value proposition or customer lists

Disciplined approach, with significant resource and management expertise to complete integrations well and deliver synergy benefits

Greater usage from existing customers

New customers in existing markets Expand product line Growth through

acquisitions

ELMO Software [email protected] | elmosoftware.com.au 18

Page 20: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

FY19 guidance update Continued focus on growing SaaS revenue

Strong momentum into 2H19• Positive outlook for organic growth across

the business• High degree of recurring revenue• 1H19 ARR reflects 96.3% of forecast FY19 pro

forma SaaS revenue1,2

New growth drivers• More multi module sales due to a broader

product set • Unique offering which now includes HR,

payroll and rostering/time & attendance• Increased traction in the lower mid-market

segment (<200 employees)

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au

1. Includes PeoplePulse, LiveSalary, Sky Payroll and Pivot Software2. December 2018 SaaS revenue annualised3. Acquisitions include a full year contribution from HROnboard and BoxSuite

Investing in sustainable growth

• Focus on SaaS revenue growth• Increased investment in product and capacity• Well capitalised to support growth strategy• Acquisition opportunities across the industry

for complementary technology and/or new customer base

Pro forma revenue including acquistions ($m)1

Updated FY19 pro forma guidance1

FY18 FY19E

29.8

2.1

31.9

42.4SaaS revenue

Other revenue1.7

40.7

19

ELMO Acquisitions3 (HROnboard and BoxSuite)

Total

SaaS revenue 37.8 2.9 40.7

Total revenue 39.5 2.9 42.4

EBITDA (0.8) (0.8) (1.6)

Page 21: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Investment summary

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au

1. Frost and Sullivan independent market report

LEADING INTEGRATED TALENT MANAGEMENT PLATFORM• Broad, integrated suite of modules• Cloud delivery • Single source code• Extensive course library/ proprietary

learning content

BROAD AND DIVERSE CUSTOMER BASE1

• CAGR of customer base ~47% since FY14, 524 active customers

• Largest customer is < 2.9% of revenue• Top 10 customers account for < 16% of

total revenue• Industry agnostic

HIGH RECURRING REVENUE WITH ATTRACTIVE CASH FLOW PROFILE• 93% recurring revenue• > 38% pro forma SaaS revenue CAGR

(FY14 – FY17)• Customer contracts typically ~3 years

and pay annually in advance

LARGE AND GROWING ADDRESSABLE MARKET• Global talent management TAM

~US$6.1 billion (ANZ ~US$258m)• Accelerating penetration of cloud-

based talent management solutions• Increasing adoption in

mid-market

MULTIPLE LEVERS TO DRIVE GROWTH• Increasing module usage from

existing customers• New customers in ANZ• Continued product innovation to

broaden solution offering• Strategic acquisition opportunities

EXPERIENCED MANAGEMENT TEAM• Danny Lessem founded ELMO in

2002, > 20 years software experience • Stable management team with strong

track record of growth and innovation

• Executive incentives aligned through equity ownership

INTEGRATED CLOUD HR, PAYROLL AND ROSTERING / TIME &ATTENDANCE PLATFORM

• Broad, integrated suite of modules• Cloud delivery• Single source code• Extensive course library/proprietary learning content

BROAD AND DIVERSECUSTOMER BASE

• Enlarged customer base of 1,129 • Largest customer is < 1.6% of 1H19 revenue • Top 10 customers account for < 9.7% of 1H19 revenue • Industry agnostic

HIGH RECURRING REVENUE WITHATTRACTIVE CASH FLOW PROFILE

• 96.2% recurring revenue• 62.9% revenue growth in 1H19 pcp• Customer contracts typically ~3 years and pay annually in advance

LARGE AND GROWINGADDRESSABLE MARKET

• Larger market opportunity with wider product set including HR, payroll and rostering/time & attendance• ANZ market size of ~$1.7b with over 12,000 organisations1

• Accelerating penetration of cloud-based talent management solutions• Increasing adoption in mid-market organisations1

MULTIPLE LEVERS TO DRIVE GROWTH

• Increasing module usage from existing customers• New customers in ANZ• Continued product innovation to broaden solution offering• Strategic acquisition opportunities

HIGHLY EXPERIENCED AND COMMITTED MANAGEMENT TEAM

• Danny Lessem founded ELMO in 2002, > 20 years software experience• Stable management team with strong track record of growth and innovation• Executive incentives aligned through equity ownership

20

Expanded product set, increased growth opportunities

Page 22: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Appendix

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au 21

Page 23: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Reconciliation from statutory to pro forma income statement

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au

Pro forma ELMO June year end ($000s) 1H19 1H18Statutory Revenue 17,657 10,917Other Income 91 58Net impact of acquisitions 362 142Pro forma revenue 18,110 11,117

Statutory EBITDA (3,241) 785Net impact of acquisitions 362 142Transaction costs 367 531Pro forma EBITDA (2,512) 1,458

22

Page 24: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Balance Sheet

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au

December year end ($000s) 31 Dec 2018 31 Dec 2017Cash and cash equivalents 38,947 15,326Other current assets 9,859 5,494Total current assets 48,806 20,820Intangibles 37,370 20,299Other non-current assets 4,446 512Total non-current assets 41,816 20,811Total assets 90,622 41,631Trade and other payables 4,127 2,567Income in advance 15,028 10,096Other current liabilities 5,865 4,802Total current liabilities 25,020 17,465Total non-current liaibilities 4,804 881Total liabilities 29,824 18,346Net assets 60,798 23,285

Statutory Balance sheet

23

Page 25: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

History ANZ’s leading unified cloud HR, payroll, rostering / time & attendance solution

2002 2011 2012 2013 2014 2015 2016 2017 2018 2019

eLearning

content

of talent

in 2002 by

SUCCESSION

REMUNERATION

HR CORE

COURSE BUILDER

REWARDS AND RECOGNITION

AustralianHuman Resources

PERFORMANCE

ONBOARDING

164 Customers 254 Customers 358 Customers 472 Customers

As at 31 Dec 2016

859 Customers

As at 31 Dec 2017

PeoplePulse andLiveSalary

ListedJune 29 2017

SkyPayrollHROnboard

Pivot Software

1,129 Customers

As at 31 Dec 2018

Box Suite

ROSTERING /TIME & ATTENDANCE

RECRUITMENT

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au 24

Page 26: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Product grouping Pay

Leave management - Leave requisition and authorisation workflows

Organisation charts - Overview of organisation’s structure and reportingrelationships

Employee self-service - Enables employees to access and update personal information, request leave and access payroll slips from any device, anywhere and at any time

Manager self-service - Enables managers to access employee information, approve leave requests and view team analytics from any device, anywhere and at any time

Real time, real world data - Provide salary benchmarks at key decision points of the employee lifecycle

Fully integrated salary benchmarks - Allows users to research market trends in salary packages

Reporting and analysis - Review recruit-ment budgets alongside oursalary benchmark reports to stay talent competitive

Roster Staff - Save time with accurate labour forecasts. Proactively manage staff with shift trading, leave and unavailability requests for real-time roster management.

Time Tracking - Automatic and stress-free time tracking solution with real-time reporting. Gather data to help control staffing costs and ensure your people are paid correctly

Compliance Risk Management - Using ELMO’s powerful Business Rules Engine and Award Library, ensure compliance obligations relating to Modern Awards or Enterprise Bargaining Agreements are met

Self-ServicePayroll Rostering / Time & Attendance

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au 25

Page 27: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Product grouping Engage

Integrated or standalone solution - Collect feedback across all ELMO modules directly or from external sources

Benchmark survey Templates - Library of best practice templates including onboarding, engagement, pulse, NPS etc. Benchmark results against other organisations

Powerful insights - Get powerful andmeaningful insights from collected data by using ELMO Survey reporting

Leave management - Leave requisition and authorisation workflows

Organisation charts - Overview oforganisation’s structure and reportingrelationships

Employee self-service - Enables employees to access and update personal information, request leave and access payroll slips from any device, anywhereand at any time

Manager self-service - Enables managers to access employee information, approve leave requests and view team analytics from any device, anywhere and at any time

HR SurveyHR Core

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au 26

Page 28: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Product grouping Hire

Personalised onboarding webpage - Present company information and video, guidelines for onboarding process, onboarding task list, and team member introductions

Workflows and approvals - Configure process and select stakeholders, prerequisites, time delays, and conditions

Electronic forms - Configurable forms, document upload facility, and integration with ATO and other 3rd parties

Job requisition - Select the required job position, add specific requirements, alert recruitment manager, track and monitor progress, and customise approval workflows

Talent pool - Search existing employees, search the candidate database, match job criteria, and rank candidates

Job posting - Integrate with job boards and social media, preset posting rules, and track costs

Branded careers webpage - Embed customer organisation’s website, customise branding, incorporate company media, and  post jobs automatically

Leave management - Leave requisition and authorisation workflows

Organisation charts - Overview oforganisation’s structure and reportingrelationships

Employee self-service - Enables employees to access and update personal information, request leave and access payroll slips from any device, anywhereand at any time

Manager self-service - Enables managers to access employee information, approve leave requests and view team analytics from any device, anywhere and at any time

OnboardingRecruitment Salary Benchmarking

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au 27

Page 29: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Product grouping Retain

Peer to peer recognition - Recognise individuals, teams and/or departments with configurable recognition categories

Manager to employee recognition - Recognise high performers with comments and points allocation. Integrates with ELMO Performance

Configurable badges and certificates -Acknowledge milestones with badges, certificates, loyalty awards; send and receive nominations

Ensure business continuity - Determine role criticality, identify high performers and mitigate flight risk

Employee career progression - View succession pathways, identify skills gaps and create development plans

Foster strategic succession - Match high potential employees to critical roles and compare candidate suitability by skills, performance, potential and aspirations

Performance appraisals - Configure to customer’s requirements, features goal setting, competency models, development plans and 360 reviews Manager team view - Access direct and indirect reports, view current status of appraisals, search facility, export and print

Succession planning - Identify high performers, mitigate flight risk, recruit from within, foster strategic succession

Configurable reports - Generate at the click of a button, choose fields for comparison, coloured graphs for visual display, export to Excel and/or PDF, and email reports

Streamline remuneration process - Easily manage the end-to-end remuneration allocation and approvals process

Managers empowered - Make more informed decisions about the allocation of salary, bonus & equity awards

Link salary planning with ELMO suite -Combine performance data with remuneration strategies to align employee performance and remuneration

Rewards & Recognition Succession ManagementPerformance Management Remuneration

ASX:ELO ELMO Software [email protected] | elmosoftware.com.au 28

Page 30: SaaS Cloud Based Solution - Open Briefing Top 10 customers contribute

Product grouping Develop

Create courses - Insert images/movies, edit text, record voice-over, and use interactive features (buttons, rollovers, hotspots, etc.)

Create assessments - Select question type (multi-choice, T/F, drag and drop), insert images/voice-over, randomise questions, and set pass mark

Create surveys - Select question type (multiple choice or free text), compulsory and anonymous optionality

Preview and publish - Customer branding, update customer in real-time, publish ELMO or SCORM compliant LMS

Learner’s view - Personalised learning plan, eLearning courses, instructor-led training (ILT), policy acknowledgements, assessments and surveys

Course catalogue - Course self-selection, search facility, configurable enrolment rules, access to over 400 pre-built eLearning courses

Manager team view - Access direct and indirect reports, view current status of learning, search facility, export and print

Configurable reports - Generate at the click of a button, choose files for comparison, use coloured graphs for visual display, export to Excel and/or PDF, automate report emails

Best practice eLearning content - Compliance sources updates, quality assurance, expert instructional design

Course editor - Accessible via the Internet, no programming skills required, access to ELMO royalty free image library, upload your own multimedia

Course features - Customer branding, multimedia enabled, touch screenoptimised, modify content with the ELMO course editor

Assessment features - Automatic marking, multimedia enabled, touch screen optimised, modify Q&As with ELMO course editor

Course BuilderLearning Management Course Library

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Important notice and disclaimer investors.elmosoftware.com.au

Forward-looking statementsThis presentation may include forward-looking statements. Such statements can generally be identified by the use of words such as ‘may’, ‘will’, ‘expect’, ‘intend’, ‘plan’, ‘estimate’, ‘anticipate’, ‘believe’, ‘continue’, ‘objectives’, ‘outlook’, ‘guidance‘, ‘forecast’ and similar expressions. Indications of plans, strategies, management objectives, sales and financial performance are also forward-looking statements.

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document and the accompanying financial statements are due to rounding.

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