TZ Limited

ACN 073 979 272

Sydney (Registered Office) Level 11, 1 Chifley Square P: +61 2 9222 8890 Web: www.tz.net Sydney, NSW 2000 Australia F: +61 2 8208 9937 Email: info@tz.net

10 November 2016

Lodged by ASX Online

The Manager

Company Announcement Office

ASX Limited

Level 4, 20 Bridge Street

Sydney, NSW 2000

Dear Sir/Madam

Please find attached TZ Limited’s November 2016 Briefing Presentation which will be

the subject of analyst briefings in the coming weeks.

Kenneth Ting

Executive Director

About TZ Limited

TZ Limited is a technology company that is listed on the Australian Stock Exchange. TZ is the

leader in SMart Device™ technology combining state-of-the-art SMA actuated intelligent

fastening and locking devices with TZ remote control software. TZ’s systems deliver asset

level protection and compelling solutions for security, monitoring and control applications

across a number of market segments. The Company currently supplies market leading

solutions to major corporations worldwide to the Data Centre industry and in the Automated

Parcel Locker and E-Commerce market.

For additional information on TZ Limited, please visit www.tz.net

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TZ LIMITED

Company Overview

November 2016

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Scalable business model …

Rapidly developing opportunities

for broad based distribution and

product licensing

Over US$40 million invested to

establish SMA actuator technology

and end-to-end smart device

hardware and software platform

World leader in intelligent locking

and fastening technology with

over 180 patent applications

covering the field of invention

About TZ

Retained and recurring business

with large blue chip corporate client

base. Tight software integration

enables TZ to be strategically

coupled with client’s business

Annuity revenue business

developing from installed base.

Software and service

maintenance standard part of

business offering

Growth fuelled by participation in

high growth market sectors :

Cloud Computing, E-Commerce,

Security and Compliance

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Our Technology …

Shape Memory Alloy Actuated Locking Device

Supports Electronic Trends:

Embedded logic controller

Smaller – 1/10th volume of Solenoids

Lighter – 1/100th weight of Solenoids

More Efficient, Less Power Hungry

TZ Smart Devices

Highlights:

Proprietary technology with clear functional

advantages - Lighter, Smaller, Smarter

Digital Locking Device with embedded microchip

with integrated sensing and switching – IOT

functionality

Only SMA actuated locking device in the world …

NASA Tech Brief – Product of the Year 2005

TZ is the leader in SMArt Locking

Device™ technology combining state-

of-the-art SMA actuated intelligent

locking devices controlled over the

internet with TZ software

Nickel Titanium

Shape Memory Alloy (SMA)

About our Technology

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Data Center Security Corporate Mail Lockers Residential Lockers

Day Lockers Postal LockersEducational Lockers

Current Business Streams

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FY2012 FY2013 FY2014 FY2015

A$5M

A$10M

A$15M

A$20M

$A25M

A$8.5M

FY2016

A$2.8M

A$15.2M

Year-on-Year Revenue Growth

Revenue Growth

A$1.7M

A$20.8M

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Growth Continues in FY2017Q

ua

rte

rly R

eve

nu

e (

A$

M)

$0.0

$2.0

$4.0

$6.0

$8.0

$10.0

$12.0

$14.0

$16.0

$18.0

$20.0

$22.0

Q1 FY14 Q2 FY14 Q3 FY14 Q4 FY14 Q1 FY15 Q2 FY15 Q3 FY15 Q4 FY15 Q1 FY16 Q2 FY16 Q3 FY16 Q4 FY16 Q1 FY17

FY2014 FY2015 FY2016

Good Start to 2017

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Business Performance

NPAT

EBITDA

REVENUE

EPS (cents)

GROSS MARGIN

Business Performance

2013

(A$11.8M)

(A$16.5M)

A$2.8M

(9.7)

50%

2014

(A$8.5M)

(A$11.8M)

A$8.5M

(4.4)

49%

2015

(A$4.4M)

(A$6.4M)

A$15.2M

(1.6)

44%

2016

(A$5.3M)

(A$7.0M)

A$20.8M

(1.5)

30%

Q1 2017Revenue

A$7.6M

Gross Margin

40%

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FY2012 FY2013 FY2014 FY2015 FY2012 FY2013 FY2014 FY2015FY2016 FY2016

A$2.1M

A$17.7M

Business Unit Revenue

Growth by Business Unit

A$5M

A$10M

A$15M

A$20M

$A25MInfrastructure ProtectionData Centre Cabinet Security

Packaged Asset DeliverySmart Locker Business

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Sales by Region / Product

Sales by Region Sales by Product

Americas

APAC

Europe

Corporate

PADPostal

PAD

IXP

Design

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Business Snapshot

Steady Growth in IXP

On-going sales to established

customer base as they expand

their facilities.

Growth in Asia and Europe.

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Business Snapshot

Continued Growth in

US Corporate Sector

On-going expansion within established

customer base.

Ricoh partnership also building

awareness of TZ corporate offering to

their extensive base of managed mail

service customers.

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Business Snapshot

Strong Growth in

US Residential

Strategic supply relationships

established with major US

property developers on the West

and East Coast.

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Business Snapshot

Strong Growth in

US Higher Education

Increased awareness with the

University community through

participation at NACUMS events

(National Association of College and

University Mail Services).

Significant RFP (Request for Pricing)

activity.

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Business Snapshot

Established Day Locker

Business in Australia

On-going roll-out with existing

customers to other office locations

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Business Snapshot

On-going deployment

In Australia

On-going deployment

In Malaysia

On-going deployment

In USA

Strong Growth in

Postal and Logistics

Total Lockers Ordered in FY 2016 …

374 Locker Banks

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Key Business Initiatives

Business Initiatives Status Comments

Improve operating conditions through

manufacturing cost reduction, extended

credit terms and improved payment

conditions.

Manufacturing of TZ proprietary components now sourced

from Asian supply partner.

Credit terms greatly improved through supply partnership

relationships.

Payment terms re-negotiated with most customers. Aged

debtors still continue to be an area for consideration.

Increase the speed of penetration

through new channel distribution

partnerships

Ricoh partnership in place and in implementation phase.

New distribution agreements currently being pursued and in

negotiation.

Explore new applications for the

technology and expanding into new

sectors

New application areas identified and early adopter targets

being pursued.

Next generation TZ Smart Device development program

underway to support entry strategy.

Accelerate the rate of commercial

adoption by entering into licensing

relationships with major OEMs

Launch of TZ Labs.

TZ IP and Technology development and road-map defined

and in implementation mode.

Market research underway to identify prospective targets.

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Asian Supply and Manufacturing

Successfully transitioned primary

manufacturing of proprietary components to

China to materially improve manufacturing

cost base of TZ Radial Devices

Established sourcing partner in Asia to

improve purchasing economies for off-the-

shelf hardware components that support

system offerings

Improved contractual payment terms with

major customers to help cash flow

management

Improving operating conditions through

manufacturing cost reduction, strategic

supplier partnerships and improved

payment conditions.

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Leveraging Distribution

Established distribution relationship with

Ricoh to support accelerated deployment of

TZ Smart Lockers in US

Over 3,000 managed services corporate

accounts

300 sales people across the US

Leveraging Ricoh to build Smart Locker

business in Europe

Increasing the speed of penetration

through new channel distribution

partnerships

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MEDICINE

CABINETS

DOMESTIC

FURNITURE

OFFICE

STORAGE

Healthcare

Retail

Gaming

New TZ

Smart Devices

New Applications

Looking into new applications for

the technology and expanding

into new sectors

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Refocus on TZ IP portfolio and Technology

foundations

Establish new facility dedicated to

technology development, design and

engineering.

Restructure resources to bring in new

competencies in mechanical engineering,

mechatronics, electronics and firmware

development.

Establish IOT (Internet of Things) strategy,

technology road-map and platform for future

licensing and commercialisation activities.

Accelerate the rate of commercial

adoption by entering into licensing

relationships with major OEMs.

New Technology

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